Affordable Housing and Sustainable Communities Program (AHSC)
Administered by the Strategic Growth Council and implemented by the Department of Housing and Community Development (HCD), the AHSC Program funds land-use, housing, transportation, and land preservation projects to support infill and compact development that reduce greenhouse gas ("GHG") emissions.
Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund (GGRF), an account established to receive Cap-and-Trade auction proceeds.
Statutory Funding Set-Asides
Fifty (50) percent of the available funds are set aside for Affordable Housing Developments, and 50 percent of the available funds are set aside for projects benefitting Disadvantaged Communities.
Note: A single project can address both set-asides above, and are not mutually exclusive.
The AHSC Program will assist project areas by providing grants and/or loans, or any combination thereof, that will achieve GHG emissions reductions and benefit Disadvantaged Communities through increasing accessibility of affordable housing, employment centers, and key destinations via low-carbon transportation resulting in fewer vehicle miles traveled (VMT) through shortened or reduced trip length or mode shift from Single Occupancy Vehicle (SOV) use to transit, bicycling, or walking. Three Project Area types have been identified to implement this strategy:
- Transit Oriented Development (TOD) Project Areas,
- Integrated Connectivity Project (ICP) Project Areas, or
- Rural Innovation Project Areas (RIPA).
The assistance terms and limits include, but are not limited to, the following requirements:
- The maximum AHSC Program loan or grant award or combination thereof is $20 million with a minimum award of at least $1 million in TOD Project Areas and $500,000 in ICP and RIPA Project Areas.
- A single developer may receive no more than $40 million per NOFA funding cycle.*
*These limitations may be waived if necessary to meet statutorily required Affordable Housing and Disadvantaged Community set-asides.
- Affordable Housing Developments**
- Housing-Related Infrastructure
- Sustainable Transportation Infrastructure
- Transportation-Related Amenities
- Program Costs (including active transportation, transit ridership, or criteria air pollutant reduction programs)
**includes new construction, acquisition, and substantial rehabilitation, including preservation of affordable housing at risk, or conversion of one or more nonresidential structures to residential dwelling units.
Eligible applicant entities include any of the following:
- A locality, public housing authority, redevelopment successor agency, transit agency or transit operator, Regional Transportation Planning Agency (RTPA), local Transportation Commissions, Congestion Management Agencies, Joint Powers Authority (JPA), school district, facilities district, university or community college district.
- A developer or program operator.
If a public agency has a financial or real property interest in the proposed project, the application must either include the public agency as a co-applicant or otherwise include a commitment to enter into a contractual agreement to develop the project, if it is awarded.
Applications are invited through the issuance of a Notice of Funding Availability (NOFA). Applicants must submit a concept proposal for review and evaluation. HCD will notify and invite selected applicants to submit a full application based on the ranking of concept proposals and available funds.
Check previous NOFAs for additional helpful information.
Loan Closing Documents
AHSC Specific Documents
- Deed of Trust (DOC)
- Promissory Note (DOC)
- Regulatory Agreement (DOC)
- Request for Notice of Default (DOC)
- Senior Subordination Agreement (DOC)
- Junior Subordination Agreement (DOC)
Documents Applicable to all NOFAs
- Architect's Completion Certificate (New Construction) (DOC)
- Architect's Completion Certificate (Rehabilitation) (DOC)
- Article XXXIV Guidelines (PDF)
- Bond Financing Term Sheet (DOC)
- Certificate of Completion (DOC)
- Closing Checklist (XLS)
- Cost Cert and Financial Reporting Requirements (DOC)
- Cost Cert Sample Form (XLS)
- Designated Payee Authorization Letter (DOC)
- Insurance Guidelines Checklist (DOC)
- Interest Rate Resets or Bond Remarketing Requirements (Management Memo 07-01) (DOC)
- Lease Rider Estoppel (DOC)
- Loan Closing Requirements (Management Memo 05-2) (DOC)
- Physical Needs Assessment - Fannie Mae Form 4327 (DOC)
- Physical Needs Assessment - Fannie Mae Guidelines (PDF)
- Physical Needs Assessment and Replacement Reserve Study Guidelines (PDF)
- Prevailing Wage Compliance (Management Memo 02-1) (DOC)
- Prevailing Wage Compliance Cerificate (DOC)
- Project Construction Sign Requirements (DOC)
- Project Funding Sources (Construction) (XLS)
- Project Funding Sources (Permanent) (XLS)
- Relocation Plan Implementation Certificate (DOC)
- Request For Funds Form (DOC)
- Utility Allowance Determination (DOC)
- Sponsor Operating Guarantee (DOC) or (PDF)
- Strategic Growth Council AHSC Program website
- AB 32 (Chapter 488, Statutes 2006)
- SB 375 (Chapter 728, Statutes, 2008)
- California Metropolitan Organizations (MPOs) and Regional Transportation Planning Agencies (RTPAs) (PDF)
Plans & Reports
- 2015-2025 Statewide Housing Plan
- California Inter-Regional Partnership (IRP) Program Final Report (2005)
- The Future of Infill Housing: Opportunities, Potential, Feasibility and Demand (2005)
- Recommendations of the Interagency Task Force on Homelessness (2003)
- Raising the Roof - California Housing Development Projections and Constraints (2001)
- Housing: California's Foundation for Economic Growth (PDF)
- Draft Substantial Amendment to 2015-16 Annual Action Plan and Public Notice (PDF)
- 2010-2015 California Consolidated Plan
- Annual Plan, CAPER (updated annually)