The Department of Community & Economic Development (DCED) Notice of Funding Availability (NOFA) program provides residential developers with loans for up to 40% of total project costs. The goal of the program is to support projects that provide a full spectrum of healthy housing options and to improve housing quality, affordability, and availability. Funding for the NOFA is appropriated through the City’s capital budget as well as through the City’s Annual Action Plan implementing the City’s Consolidated Plan for use of Federal Entitlement Funds (CDBG & HOME).
On April 19, 2021, DCED advertised funding with an anticipated budget of $3.2 million to award to projects. DCED received applications for 16 projects, requesting approximately $13 million. At this time the City has conditionally awarded funding to 5 projects, described below, allocating $3.2 million in NOFA funds and $900,000 of OTR-East Tax Increment Financing (TIF) District Funds. These awards will leverage an anticipated $63.3 million in private investment. Given the limited NOFA resources and number of applications, one of the projects awarded has been recommended for funding out of the OTR-East TIF District’s 25% percent set-a-side balance for affordable housing, as established by City Council under Ordinance 301-2020. This project will be contingent on the completion of community engagement, as established by the City Manager, and appropriation by City Council. Collectively these projects will create and/or preserve 280 total units, all of which are affordable to households at and below 60% AMI.