February 14, 2006
SACRAMENTO, CA – The California Housing Finance Agency's (CalHFA), Housing Enabled by Local Partnerships (HELP) program has awarded the City of Morgan Hill Redevelopment Agency (RDA) $800,000 to help develop approximately 160 affordable rental and ownership housing units. This represents one of nine California localities awarded a total of $9.1 million in low interest HELP loans to acquire, develop, rehabilitate, or preserve affordable rental or ownership housing.
As part of the RDA's program, rental housing assisted with HELP funds will be made available to households with annual incomes ranging from $22,300 to $63,300; all funded ownership units will be designated for households with annual incomes ranging from $59,400 to $105,500. These funds will augment a HELP loan commitment received in 2003. By leveraging the HELP program financing and pooling it with other sources of affordable housing funds, the RDA will re-loan the funds to eligible developers at a 3% interest rate.
"The partnership between CalHFA and the City of Morgan Hill RDA is a positive approach to improving the affordability of housing in the community," said Theresa Parker, CalHFA Executive Director. "Supporting these affordable housing goals is a 'win-win' for CalHFA and the community."
Since 1998, the HELP program has partnered with more than 94 local government entities to fund $140 million in affordable housing. CalHFA funding provides additional resources to address the localities unmet affordable housing needs by using a competitive process to award loans with repayment terms up to ten years at a 3% percent interest rate. Through the HELP program, CalHFA offers two funding cycles of approximately $10 million in the fall and spring of each year. Recipients of the semi-annual award are evaluated on six criteria: affordability, cost efficiency, maximization of benefits, implementation readiness, resource impact and comprehensiveness of program design.
The California Housing Finance Agency was established in 1975 to meet the housing needs of low and moderate income Californians. To date, HELP funding has participated in the financing of nearly 18,000 units of affordable housing for Californians that are most in need. More information on the HELP program and the full complement of CalHFA programs is available at 800.789.2432 or www.calhfa.ca.gov.
Contact: Melissa Flores
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