The Affordable Housing and Sustainable Communities (AHSC) Program is a grant and loan initiative administered by the Strategic Growth Council and implemented through the California Department of Housing and Community Development. Now in its ninth round of funding, AHSC seeks to build healthier, more equitable communities and reduce greenhouse gas emissions by financing integrated affordable housing and transportation infrastructure projects across California. The program is supported by the Greenhouse Gas Reduction Fund, which receives proceeds from California’s Cap-and-Trade program.
The AHSC Program funds new construction and renovation of affordable housing developments as well as sustainable transportation infrastructure. These projects must promote walking, biking, and public transit access near homes, jobs, and community resources. Examples of eligible transportation-related improvements include sidewalks, bike lanes, transit vehicles, and pedestrian-friendly amenities like bus shelters, benches, and shade trees. The overarching goal is to help reduce dependence on personal vehicles and thereby contribute to environmental protection.
Eligible applicants for AHSC funding include a wide range of public and nonprofit entities. Local governments, public housing authorities, transportation agencies, educational institutions, nonprofits, for-profit developers, and Tribal governments may all apply. Projects must fit into one of three target project area types: Transit-Oriented Development (TOD), Integrated Connectivity Projects (ICP), or Rural Innovation Project Areas (RIPA), with respective funding targets of 35%, 35%, and 10% of total funds. Additionally, the program intends to fund at least one project in each of eight geographic regions within the state.
Applicants can request between $10 million and $50 million per project, though Tribal Entities may apply for as little as $1 million. The total available funding for this cycle is approximately $775 million. Awards may be granted in the form of loans (for affordable housing) or grants (for infrastructure, transportation, and community programming). Housing loan funds are typically disbursed at the time of contract signing, while grants are provided on a reimbursement basis.
Applications for AHSC Round 9 are due by 4:00 PM on May 28, 2025. Award announcements are expected in December 2025, and the funded projects are expected to have a five-year period of performance. Interested applicants are strongly encouraged to review the complete Round 9 Notice of Funding Availability and associated guidelines, available on the Strategic Growth Council website. Questions can be directed to ahsc@sgc.ca.gov.
