Skip to main content
×Please take a few moments to complete the California COVID-19 vaccine survey.
HCD Logo

California Department of
Housing and Community Development

Preserve Units At-Risk of Conversion to Market Rates


(916) 263-2911

Topics Covered

Please note, the information provided below does not reflect statutory changes enacted as of January 1, 2018 as part of the 2017 Legislative Housing Package. For additional information on the specific bills, provisions and timing for implementation, please visit our Legislative Housing Package webpage.

Photo of playground in front of apartment

Preserve for lower income households the assisted housing developments identified pursuant to paragraph (8) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (8) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance (Government Code Section 65583(c)(6)).

Required Components of Programs

Effective programs reflect the results of the local housing need analyses, identification of available resources (including land and financing), and the mitigation of identified governmental and nongovernmental constraints. Programs consist of specific action steps the locality will take to implement its policies and achieve goals and objectives. Programs must include a specific timeframe for implementation, identify the agencies or officials responsible for implementation, and describe the jurisdiction’s specific role in implementation.

Program Requirements

The nature of conversion risk varies significantly among projects depending on the type of subsidy and related affordability controls. Individual program responses should be tailored to the results of the analyses and specific local situations.

Policy and Program Options

Actions to Monitor

Actions to Finance and Technical and Regulatory Assistance

Actions to Assist Tenants

Sample Programs

Sample Program 1

The city will continue or undertake the following programs and activities during the five-year period of the housing element. The housing commission will implement these efforts, except where another division or agency of the city is identified. Funding sources to support the implementation of these efforts is specified where appropriate. The efforts listed below represent a varied strategy to mitigate potential loss of “at-risk” units due to conversion to market-rate units. These local efforts utilize existing city and local resources. They include efforts to secure additional resources from the public and private sector should they become available.
Preservation of “At-Risk” Units

Sample Program 2

In order to meet the housing needs of persons of all economic groups, the city must guard against the loss of housing units available to lower-income households. A total of 650 units in six HUD-insured projects are at-risk of conversion to market-rate prior to July, 2024. The city’s objective is to either retain or replace as low-income housing all at risk units in the city. The community development department will implement the following programs on an ongoing basis to conserve its affordable housing stock.

Objectives: Preserve all 650 units in the six at-risk properties. The city will monitor, every three months, the status of any HUD receipt/approval of “notices of intent” and “plans of action” filed by property owners to convert to market-rate units. The city will annually identify and pursue funding with nonprofit organizations as potential purchasers/managers of at-risk housing units. As part of coordination with nonprofit partners, the city will annually explore funding sources available to purchase affordability covenants on at-risk projects, transfer ownership of at-risk projects to public or nonprofit agencies, purchase existing buildings to replace at-risk units, or construct replacement units. The city will provide tenant education within 30 days of a notice and assist tenants to obtain special Housing Choice vouchers reserved for tenants of converted properties.

Sample Program Implementation