Affordable Multifamily Housing Financial Resources
The Sacramento Housing and Redevelopment Agency (SHRA) provides assistance to developers for the construction and preservation of affordable housing. SHRA offers gap financing and the issuance of tax-exempt bonds for the development or acquisition/rehabilitation of multifamily rental housing projects of 12 or more units in the City of Sacramento and unincorporated areas of the County of Sacramento. Under certain cooperation agreements, SHRA may also finance affordable housing developments in other cities within the County. All housing financed by SHRA carries affordability restrictions on some or all of the units.
The goals of the Multifamily Housing Loan Program and Mortgage Revenue Bond Program are to:
Increase and preserve the supply of affordable rental housing for all income groups, including those requiring supportive services.
Facilitate community and neighborhood revitalization through strategic investments in deteriorated properties and new construction.
Encourage economic integration within neighborhoods and within affordable developments, to the greatest extent possible.
Maintain quality and sustainable living environments for residents of assisted affordable developments and surrounding properties.
Increase the efficiency of funding by obtaining the fullest leverage of non-SHRA funds.
Detailed information regarding SHRA underwriting is provided in the Multifamily Lending and Mortgage Revenue Bond Policies.
SHRA’s Proposed Multifamily Lending and Mortgage Revenue Bond Policies (Policies) will be taken to our governing bodies to adopt on September 24, 2019.
Pre-applications for SHRA loans are accepted per the schedule shown below. After review of the pre-application and based on funding availability, staff will request full applications from applicants who best meet project priorities and other program requirements.
- 2019 Application Schedule
- Multifamily Funding Availability as of August 1, 2019
- Funding Priorities Summary
- Pre-Application Requirements
- Full Application Requirement
For more information on Multifamily Housing Finance, contact us at 916-440-1393.
Sign up to receive financing and program updates
SHRA maintains an email contact list (ListServ) which allows all owners and managers to receive updates and announcements about programs and requirements. All interested parties should register on the email list and update contact information as needed using this link – Multifamily Development Finance Email List.
Affordable Housing Needs Letter for TCAC
Below is a link to SHRA’s annual letter to the California Tax Credit Allocation Committee (TCAC) regarding the need for affordable housing in Sacramento County. This letter may be printed and used by TCAC applicants who are requesting an affordable housing needs letter from the Housing Authority to TCAC.
Affordable Housing Needs Letter.
Sewer Fee Credits
Projects located in the unincorporated area are eligible for impact fee waivers/deferrals, with the exception that Sacramento Regional Sanitation District and Sacramento Area Sewer District (formerly CSD-1) fee waivers are available to cities in the county and unincorporated areas, where applicable. The total number of fee waivers is capped by the County annually at 200 dwelling units or 5 percent of the number of dwelling units for which residential building permits for new construction in the unincorporated County were issued in the previous year, whichever is greater.
Fee Deferrals. In order to qualify for fee deferrals, a project must have 1) a minimum of 10 percent of units restricted for rent to households having incomes less than or equal to 50 percent of AMI; or 2) a minimum of 49 percent of units restricted for rent to households having incomes less than or equal to 80 percent of AMI. Payment of deferred fees is due 24 months from start of construction or upon the close of permanent loan financing, whichever is earlier.
Fee Waivers. In order to qualify for fee waivers, a project have a minimum of 10 percent of its units restricted for rent to households having incomes less than or equal to 50 percent of AMI. Fees will be waived in an amount proportional to the percentage of very low income units restricted.
Contact Development Finance staff at 916-440-1393 for more information.