The HOME-American Rescue Plan or HOME-ARP funds appropriated are targeted to provide homelessness assistance and supportive services. The city of Cincinnati and its Department of Community and Economic Development (DCED), through the Preventing Homelessness Funding Opportunity (PHFO), is providing a portion of its HOME-ARP funding to residential developers, as financing loans, for the development of rental housing. PHFO is a public gap financing tool that leverages private financing to develop quality housing geared toward eliminating and preventing Homelessness throughout the City. Through PHFO, DCED provides last-in, subordinated, fixed-interest, long-term loans of $750,000 or more. Program participants must secure the remainder of project financing before the submission of a PHFO loan application.
PHFO loans shall be awarded on a need basis through a rigorous review and underwriting process. DCED staff will evaluate the project’s financial need & capacity, neighborhood impact, and Developer’s capability to complete the initial construction or rehabilitation and manage the project long term.
Once all the criteria have been determined satisfactorily, projects will be presented to the Director of DCED and the City Manager who will have final authority over PHFO loan awards and the determination of awards meeting the City’s objectives.
*The original PHFO application was based on a draft program budget which has since been revised. As currently contemplated, the City seeks to dedicate up to $9.9M to Affordable Rental Housing development.
Applications were due no later than April 28th, 2023 at 3pm. Award decisions are anticipated to be released in July.