Eligible Applicants
- Community Partner (Nonprofit organization)
- Local Governments
- Any county, municipality, city, tribal government, special district organized under Title 32, school district, district, or a housing authority created under Part 2 of Article 4 of Title 29.
Eligible Households
First time homebuyers, prioritizing first generation homebuyers.
Eligible Housing Types
- Single Family Homes
- Duplexes
- Townhomes
- Condominiums
- Manufactured and modular homes on permanent foundations or properly tied down, on land owned by the homeowner client, or within a resident owned community mobile home park.
- Any of the above, on Community Land Trust Property.
Eligible Communities
A list of jurisdictions is available for this commitment.
Filing Commitments
For a project to be eligible for Proposition 123 funding, the county, municipality or tribal government must first file a commitment to increase affordable housing within each jurisdiction by 3% per year, for three years, for a total of a 9% increase.
The commitment filing period for 2023 expired on November 1, 2023. The 2024 second year commitment filings are now open and will close November 1, 2024.
Eligible Projects
- Down Payment Assistance (DPA)
- DPA and Repair
Affordability Period
5 Years
AMI Limitations
Up to 120% AMI
Allowable Loan Terms DPA
- Max loan of up to 20% of actual home cost
- Loan-to-value up to 100%
- Loans are non-forgivable
- Amortized Loans
- Interest only payments by borrowers (deferred principal)
- Front end debt to income ratio at or below 35%
Allowable Loan Terms DPA and Repair
- Front end debt to income ratio at or below 35%
- Can allow for a DPA loan up to 110% loan-to-value when immediate repairs are needed (energy efficiency upgrades included) at time of purchase
Administering Agency Operational Funds
Not to exceed 10% of the total agreement amount
Additional Due Diligence Requirements
The application requirements can be found in the Development Application Instructions and the project-specific application material checklists are found on the DOH website. Please note the checklists may not be exhaustive depending on the specific nuances of a project.
Reporting Requirements
Awardees will be required to report quarterly to DOH. Reports will include, but are not limited to:
- A description of each awardee’s use of the grant funds.
- Program performance progress (loans closed, program accomplishments/difficulties, etc.)
- Beneficiary information including but not limited to demographic (e.g., race and ethnicity), geographic, income, and program participants.
- Program Income reporting semi-annually, or more frequently if required.
- Other State reporting requirements as required.
- Please be sure to refer to the published and periodically updated Term Sheet and FAQs immediately prior to application as additional requirements and/or waivers may be published
Application and Award Process
Applications should be submitted through Neighborly and follow typical DOH Funding Application guidelines. Contact your Asset Manager for additional information.
- Applications will be accepted on August 1st or December 1st.
- Award and Determination: After DOH staff underwrites applications, staff recommendations will be presented to the State Housing Board (SHB). SHB recommendations will then be presented to the DOLA Executive Director for final approval. A contract between the Division of Housing and the applicant can start being drafted at this time.