The California Department of Housing and Community Development
(HCD) has released
Administrative Notice 24-05 (Notice), which amends the
program guidelines for 10 of HCD’s state-funded multifamily
rental housing programs. These amendments permit greater use of
project operating funds to provide supportive services to
residents throughout the life of the projects. The 10 programs
are:
Affordable Housing and Sustainable Communities (AHSC)
Homekey (including Homekey+)
Housing for a Healthy California (HHC)
Joe Serna Jr. Farmworker Housing Grant (Serna)
Loan Portfolio Restructuring (LPR)
Multifamily Housing Program (MHP)
No Place Like Home (NPLH)
Portfolio Reinvestment Program (PRP)
Transit-Oriented Development (TOD)
Veterans Housing and Homelessness Prevention (VHHP) program
The new supportive services cost caps will be applicable to
previously awarded projects subject to the 2017 Uniform
Multifamily Regulations (UMRs) as well as projects awarded under
forthcoming Notices of Funding Availability for the above
referenced programs. The new limits for supportive services
cost allowances will be published on HCD’s website. Sponsors of
projects with a previously approved budget for the current fiscal
year that wish to utilize the higher amounts will need to submit
an updated Supported Services Cost Form and Operating Budget to
the Asset Management and Compliance (AMC) Fiscal team. Based on
this information and review of the previously approved budget and
audit, AMC Fiscal will review and notify the sponsor of the
amount of supportive services costs that can be paid as Operating
Expenses under the new caps. For additional information or
technical assistance, sponsors can reach out to their assigned
AMC-Fiscal representative or AMCBranch@hcd.ca.gov.
In a future guideline release, HCD will also be expanding
eligible uses of Multifamily Housing Program funds to include
20-year capitalized operating subsidy reserves and supportive
services reserves. It will also include incentives in MHP to
developments that partner with service providers offering
services funded through three different Medi-Cal programs.
CSAC will continue to keep counties updated as additional
guidelines are released.
