Housing Enabled by Local Partnerships (HELP) Program

News: Temporary Suspension of HELP Program

The HELP Program offers a 3.5% interest rate loan to local government entities for their locally determined affordable housing activities and priorities. HELP Program funds can be used to assist with the acquisition, development, rehabilitation or preservation of multifamily rental units and special needs housing.  In addition, this program also provides financing to facilitate the construction or rehabilitation of ownership housing, as well as making funds available for the implementation of subordinate loan programs for eligible home buyers.

Open application periods are announced each Spring and Fall (typically February and August). Applicants (local government agencies) compete for approximately $7.5 million of HELP Program funding in each round.

Program Objective

To provide affordable housing opportunities through program partnerships with local government entities, consistent with their affordable housing priorities.


Program Parameters

Affordable Housing. HELP Program funds must be used to directly provide affordable housing units. Housing units must be affordable for at least 10 years, with "affordable" being defined in the context of the unmet housing needs and priorities of the locality. HELP Program funds may not be used for technical assistance or administrative costs.

Local Government Involvement. Local government entities (e.g., city and county housing-related divisions and agencies, and redevelopment agencies) must have a direct involvement with their programs. Local government entity involvement can include financial contributions of Federal, State, and locality program funds, and contributions such as land write-downs, fee waivers, density bonuses, and local agency program staffing and administration, and other similar benefits.

Unmet Affordable Housing Needs. HELP funds are intended to help local government entities address unmet affordable housing needs as determined by each participating locality. Local government entities must demonstrate how the local priority was established and approved. Commonly, priorities are stated in Housing Elements, Consolidated Plans, or other documented housing plans.Eligible housing activities under the program are as follows:

  • Multifamily Rental Housing. Rehabilitation and code enforcement programs; and revolving loan programs to assist with site acquisition, predevelopment and construction of projects; or financing to support the development of a specific project. (This housing category accommodates shelters, special needs that include group homes, etc.)
  • Single-Family Ownership Housing. Rehabilitation and code enforcement programs, revolving loan programs to assist with construction financing, and subordinate loan programs for homebuyers. Please Note: The Agency’s new Residential Development Loan Program (RDLP) provides financing for site acquisition and predevelopment activities for infill housing; you can obtain further information on this program at CalHFA’s web site (www.calhfa.ca.gov). Additionally, HELP and RDLP cannot be accessed for the same project, unless HELP is used exclusively to provide construction financing or subordinate loans for the homebuyers of that project.

Loan Conditions and Repayment. HELP funds are available to a local government entity as an unsecured loan from CalHFA for up to 10 years at 3.5% simple interest per annum, and carry minimal restrictions and conditions. Repayment is backed by the general obligation of the local government entity and is required, in full, no later than 10 years from the date a loan agreement is executed. The local government entity shall assure and demonstrate that it possesses full authority to enter into the loan agreement and to repay the loan under the terms and conditions of the loan agreement.

Loan-to-Lender Format. Under this format, the local government entity contracts to repay CalHFA and re-lends or otherwise utilizes the funds for its stated purposes. The local government entity does not provide property or other resources as collateral.


General Considerations for Program Design

Evaluation Criteria. Proposals will be ranked on a competitive basis, using the following criteria:
  • extent to which assisted units are affordable (term, depth, amount, proportion of assisted units within project, relative affordability given the market)
  • efficiency of program costs (interest rate, administrative and staffing costs, source and assurance of HELP loan repayment, timing of HELP repayment, etc.). NOTE: If the HELP Program funds are intended to be reloaned by the local government entity to their program participant(s), then the interest rate on the reloaned funds should be as low as practical to provide the maximum benefit to the assisted households.
  • maximization of benefit (number of units, HELP funds per unit, number of persons to benefit, etc.)
  • implementation readiness (local agency experience with the type of housing activity, staffing and administrative capacity, local agency financial capacity, site control, requisite zoning and entitlements, local programs in place, drafted implementation plan, market and risk analyses, other financing sources in place, authority to proceed has been provided by local government, etc.)
  • relative resource impact in directly achieving program objectives (the locality's relative ability to contribute funds, staffing, administration and in-kind services; and the depth of leveraging provided)
  • comprehensiveness of physical design (physical design aspects that enable the residents and incorporation of the housing into the community; physical design aspects of consistency of residential development in relation to surrounding land use) and resident support structure (that potentially includes, as appropriate, homeownership education and training, community building, participatory management or governance, personal enrichment, direct support services, and linkages to local support services, etc.)

Documented Housing Plans. Proposals must include documented housing plans that demonstrate that the proposed housing activity described in the application has been identified as a local housing priority. Eligible documented housing plans include the Housing Elements, Consolidated Plans, redevelopment plans or other general housing plans that the locality’s governing board has ratified. Applications must also include evidence that a plan has been approved.

Federal, State, and Local Requirements. Federal, State or local government requirements may apply in this process depending on the nature and structure of the local program. These requirements may include Davis-Bacon and/or State Prevailing Wages and compliance with Article 34 of the California State Constitution.

If the applicant to the HELP Program is a city or county rather than a separate legal entity such as a redevelopment agency or housing authority, the applicant must address the requirements of Article 16, Section 18 (public finance indebtedness limitation), of the California Constitution. If a city or county is awarded funding, the agency will require an opinion letter from its legal counsel to confirm that entering into a loan agreement under the Program is not in violation of this requirement.

Equitable Distribution of Funds. One of CalHFA's goals is to ensure an equitable distribution of HELP funds throughout California. CalHFA will utilize equitable distribution as a factor in the application ranking process to the extent necessary to achieve this goal.

Proposal Limitations (These limitations were applicable in previous funding rounds and are subject to change in future program announcements):

  • Applicants are limited to local government entities (i.e., city, county, housing authority, redevelopment agency, etc.).
  • Proposals are limited to a maximum request of $1,500,000.
  • Applicants are limited to one proposal in a funding round.
  • Applicants are limited to one approved proposal in a fiscal year (which begins July 1 and ends June 30).
  • Only one proposal for a specific project or program may be submitted. (e.g., multiple proposals for the same project or program from the redevelopment agency and housing authority located in the same city will not be accepted.)
  • Proposals for a particular project or program, regardless of the applicant, will be limited to a maximum of one approved funding per fiscal year and two approved fundings, overall.

To obtain additional program information, or to be placed on the mailing list to receive program announcements for future funding rounds (occurring typically in February and August of each year), please contact HELP Program staff at (916) 323-8232. You may also check this web site for future program funding announcements and news.