Modesto has $10.6M for affordable housing. Will that encourage additional development?
Modesto wants developers to know it has $10.6 million for affordable housing projects, from new construction to acquisition or rehabilitation of existing housing.
The city’s funding would match the other funding developers assemble for their projects. The city’s announcement — through what is called a notice of funding availability, or NOFA — comes before California’s Department of Housing and Community Development releases its affordable housing NOFAs.
By announcing that it has funding, Modesto hopes to encourage developers to pursue the state funding, said Jessica Hill, the city’s community development manager. Hill said the city knows there is a dire need for affordable housing and is doing what it can to encourage its development.
Hill said she believes this is the largest NOFA the city ever has issued for affordable housing. The $10.6 million is made up of state and federal funding the city receives for affordable housing. It includes $3.3 million in federal pandemic relief funding as well as $2.1 million from a relatively new state funding source.
Housing and Community Development expects to issue four affordable housing NOFAs with $480 million in funding in April 2023, according to the department’s NOFA calendar.
HCD also expects to issue a $750 million NOFA for project homekey in April, according to the calendar. California started project homekey in the pandemic to provide permanent housing with services for people who are homeless or at risk of being homeless.
Modesto received two project homekey grants this year for about $5.6 million. The city partnered with the Center for Human Services on one project to convert a downtown office building into a 14-unit apartment complex for young people. CHS clients are expected to start moving in about three months.
Modesto partnered with Stanislaus Equity Partners, a nonprofit community development corporation, on the second project, a seven-unit apartment building on James Street behind the Department of Motor Vehicles near downtown. The building is new construction and provides housing for county Behavioral Health and Recovery Services clients and their families. BHRS clients moved in this year.
Hill said the city continues to talk with affordable housing developers on identifying potential projects and funding sources.
Those interested in learning more about Modesto’s NOFA can go to www.modestogov.com/civicalerts.aspx?AID=1368.
This story was originally published December 22, 2022 at 12:13 PM.
