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New Construction/Acquisition Rehabilitation

New Construction / Acquisition Rehabilitation Programs support local governments and nonprofit partners in creating and preserving affordable homeownership opportunities. Funding can be used to build new homes, acquire and rehabilitate existing properties, or prepare sites for future development.

In addition to direct project funding, pre-development grants are available to help cover early planning and design activities that set projects up for success.

Programs include:

  • Unit Acquisition & Rehabilitation – acquiring and improving existing homes for affordable ownership.
  • Land Acquisition & Rehabilitation – purchasing and preparing land for affordable housing development.
  • Pre-Development Grants – supporting feasibility, design, and due diligence costs before construction begins.

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 Projects 

  • New Construction of homeownership units
  • Acquisition/Rehabilitation of homeownership units
  • Acquisition of land on which to build homeownership units
  • Project must be located in an eligible community.

Eligible Communities

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 and implement a 90-day expedited review process for affordable housing projects by December 31, 2026.

New commitments will be accepted November 1, 2025.

A list of jurisdictions that have filed commitments is available.

Eligible Award Type

Grants for homeownership projects 

Long Term Affordability

Minimum of 30 years

AMI Limitations

Up to 100% AMI

Subsidy Per Unit

Urban & Rural/Resort $70,000/unit

County classifications are available for reference.

“Bonus” Subsidies

  • Up to 10% for projects addressing transit-oriented development, density, energy efficiency, mixed-use, early childhood education, or inclusion of income restricted ADUs as wealth-building device
  • Up to 10% for projects utilizing modular construction
  • Max subsidy bonus: 20%

Additional Due Diligence Requirements

Funding application information, materials, forms, checklists, instructions and requirements can be 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.
  • Project or program progress (construction, spending, budget, etc.)
  • Beneficiary information including but not limited to demographic (e.g., race and ethnicity), geographic, income, program participants and project Beneficiaries.
  • 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 Housing Development Specialist for additional information.

  • Pre-applications due 15 days prior to the first of each month.
  • 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 DOH and the applicant can start being drafted at this time.

Pre-Development Program

Pre-development grants of up to $50,000 for governmental entities, tribal governments, small nonprofits and small housing authorities. Application requirements include:

  • Project narrative
  • Applicant & predevelopment team bios
  • IRS Determination Letter (non-profits only)
  • Secretary of State Certificate of Good Standing
  • Property predevelopment sources & uses worksheet
  • Resolution to apply and Signatory Authority with back up documentation
  • Most recent 2 years audited financial statements, single audits or CPA prepared financial statements and YTD balance sheet and P&L statement
  • Evidence of site control
  • W-9 dated within 90 days of application
  • Completed EFT form and voided check or bank letter
  • Signature block
  • Certificate of Trade Name if d/b/a

Eligible costs may include, but are not limited to:

  • Acquisition and development due diligence items
  • Architect & engineering fees
  • Geotech/soils/material testing
  • Property condition assessments or capital needs assessments
  • Feasibility studies
  • Environmental studies
  • Market studies
  • Legal work
  • Other necessary up-front pre-development costs

Contact

Contact your Housing Development Specialist for additional information.

This form should be used to report problems or issues with this website. Questions pertaining to a program or service provided by DOLA should be addressed to contact information located on the specific program pages.

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