In order to remain eligible for the next three (3) year Proposition 123 funding cycle, jurisdictions who filed a commitment with the Division of Housing (DOH) must meet the following criteria by December 31, 2026:
- Meet the appropriate commitment (9%, 6%, or 3%) increase of affordable housing units from the submitted baseline
- Demonstrate/codify an expedited (90-day) review process on affordable housing development projects, as applicable to statute
Meeting Proposition 123 Commitments: Unit Count & Expedited Review Guidance
Compliance Information on Counting of Units
Portal for Unit Count Submissions
Compliance Information on Expedited Review
Portal for Expedited Review Submissions
Proposition 123 Definition of Affordable Housing
Proposition 123 establishes Affordability Thresholds as follows:
- Rental housing at or below 60% AMI, or
- For-sale housing at or below 100% AMI, and
- Which costs the household less than 30% of its monthly income.
Note: Proposition 123 allows housing units at higher AMIs to be counted as affordable housing in the following instances:
- Rural Resort jurisdictions that have successfully petitioned the Division of Housing to use alternate AMI levels, and
- Housing projects funded by OEDIT’s Affordable Housing Financing Fund (Equity and Concessionary Debt), where AMI averaging is allowed and complies with the terms of the program.
Affordability Mechanism
An Affordability Mechanism is a legally binding agreement ensuring that a housing unit remains affordable for a designated period. Examples can include:
- Deed restrictions
- Promissory Note
- Land Use Restriction Agreements (LURAs)
- Covenants running with the land
- Regulatory agreements enforceable by a jurisdiction or housing authority
New Construction and Preservation/Conversion units must have an Affordability Mechanism. By definition, Naturally Occurring Affordable Housing (NOAH) do not have an Affordability Mechanism, but must meet affordability criteria at the time of counting.
