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
A list of jurisdictions that have made this commitment is provided.
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 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. Additional application materials specific to Prop 123 include:
- Applicants must submit documentation of the method by which they expect to maintain long-term affordability, i.e. deed restrictions, ground leases, etc.
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.
- Applications due September 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 DOH and the applicant can start being drafted at this time.
Pre-Development Pilot Program
The Division of Housing will be releasing a NOFA with application due date(s) and additional information for this program in the coming weeks.
Pre-development grants of up to $25,000 for local governments, small nonprofits and housing authorities. Application requirements include:
- Project narrative
- 501(c)(3) designation
- Signatory authority & board resolution authorizing the application
- Most recent 3 years audits & YTD financials
- Evidence of site control
Eligible costs may include, but are not limited to:
- Acquisition and development due diligence items
- Feasibility studies
- Environmental studies
- Market studies
- Legal work
- Other necessary up-front pre-development costs