(from Capitol Reporter, a publication of Housing CA.)
Two weeks ago (after a seven-month freeze), the Department of Housing and Community Development (HCD) received permission to make Proposition 46 and 1C awards and issue conditional award notification letters. However, the letters contain caveats stating funds will only be available if the state sells additional taxable bonds or the Pooled Money Investment Board (PMIB) makes additional loans to HCD.
The awards cover the following programs: Multifamily Housing, Transit Oriented Development (TOD) Housing, Infill Infrastructure Grant, and Emergency Housing and Assistance -- Capital Development.
Last December, the state Department of Finance (DOF) issued a budget letter prohibiting any additional bond-financed awards due to the state's cash flow and budget problems. In response, HCD cancelled its January Loan and Grant Committee meeting. Although the committee has held subsequent meetings, HCD Director Lynn Jacobs had been unable to sign formal award letters until DOF conditionally lifted its prohibition.
DOF's action was prompted by the August 17, 2009, deadline for Low Income Housing Tax Credit applicants to demonstrate they have financing in place.
State Treasurer Bill Lockyer plans to sell taxable bonds this fall if the legislature and governor agree on a balanced budget. HCD estimates it will run out of funds in January 2010 if the bonds are not sold.
Take Action on on redevelopment and help protect housing funds now!
In continuing efforts to increase access to supportive housing for high utilizers of public health resources, and maximize the efficient use of scarce public resources, City and County Departments issued the first collaborative Notice of Funding Availability (NOFA) last month.
