Affordable Housing and Sustainable Communities (AHSC) Program

The Affordable Housing and Sustainable Communities (AHSC) Program, administered jointly by the California Strategic Growth Council (SGC) and the California Department of Housing and Community Development (HCD), is offering approximately $750 million in funding under Round 10 of its competitive funding cycle. The program is designed to reduce greenhouse gas (GHG) emissions through strategic investments that promote compact, infill development, low-carbon transportation modes, and preservation of agricultural lands. AHSC is a key initiative of California Climate Investments, which channels Cap-and-Invest auction proceeds to support climate action and community resilience across the state. The funding is made available from the Greenhouse Gas Reduction Fund (GGRF). The AHSC Program is part of California’s broader effort to implement legislative mandates such as AB 32, SB 375, and SB 32, by supporting integrated land use, housing, transportation, and land preservation projects that collectively work to reduce vehicle miles traveled (VMT). The program specifically targets Disadvantaged Communities (DACs), Low-Income Communities, and Low-Income Households by enhancing access to affordable housing and essential services via sustainable transportation options like walking, bicycling, and transit. Grants and loans are available to eligible applicants including public agencies, nonprofits, for-profits, and tribal entities. Projects must consist of at least one Affordable Housing Development (AHD) component and may include Housing-Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), and Programmatic Support (PGM). AHD and HRI components must make up at least 50% of the total funds requested, and a project’s total award may range between $10 million and $50 million. For Tribal Entity applicants, the minimum request may be as low as $1 million. There are also caps on developer funding, per-unit awards, and component limits, all defined in the program guidelines. The application process is fully electronic, with submissions due no later than 4:00 p.m. Pacific Time on May 4, 2026. Applications must be submitted via the AHSC Application Portal using the official forms and naming conventions outlined in the application workbook and checklist. Submissions must include the AHSC Application Workbook, the AHSC Benefits Calculator Tool, and all required supporting documentation. Applications undergo a three-phase review process: Threshold Review (pass/fail), Quantitative and GHG Scoring, and Narrative/Feasibility Review. Only projects scoring 41 points or more in the combined scoring stages will be considered for award. The final award announcements are anticipated in December 2026. The program does not require a pre-application such as a letter of intent; however, interested parties are encouraged to engage in optional pre-application consultations and webinars offered by the Department. Applicants are also encouraged to ensure all compliance documentation is current to avoid receiving negative points under the Department’s performance policy. Following awards, recipients must execute a Standard Agreement within 30 days of issuance. These agreements outline detailed project obligations and include cross-default provisions that link all components of a project. Questions regarding the application or program requirements can be directed to [email protected] or [email protected]. The official NOFA, program guidelines, and application materials are available through the HCD and SGC websites. The program guidelines were formally adopted on February 25, 2026, and any project-specific changes post-award may result in funding reductions or disqualification. Compliance with state laws, including fair housing and relocation requirements, is mandatory throughout the project term.

Ensure full documentation is uploaded per naming guidelines; applicants should pre-check compliance status to avoid scoring penalties.