Multifamily Housing Program (MHP)

The 2025 Multifamily Housing Program (MHP) administered by the California Department of Housing and Community Development (HCD) provides funding for the development, construction, and rehabilitation of affordable rental housing projects. The program is specifically aimed at addressing the housing needs of low-income and vulnerable populations, including homeless individuals, special needs populations, and farmworkers. The program follows the guidelines established by the California Health and Safety Code and AB 434 (2020), ensuring alignment with various state housing initiatives. The MHP’s primary objective is to provide financing for projects that include at least five units, with a particular emphasis on the creation of affordable housing units for large families, seniors, farmworkers, and special needs populations. Additionally, it supports projects that focus on maintaining affordability for at-risk properties, enhancing the state's overall affordable housing stock. The program allows funds to be used for capital asset-related expenses, such as land acquisition, construction, rehabilitation, and related consulting services. Applicants for MHP funding must demonstrate that they meet specific eligibility requirements. Projects must be financially feasible and comply with the required thresholds, which include meeting local land-use approval conditions, securing environmental assessments, and providing documentation of adequate funding sources. The applicants must also ensure that the projects meet accessibility and fair housing standards. A significant part of the evaluation also involves assessing the sponsors' experience in managing similar projects and their capacity to oversee the development effectively. The application process involves submitting a comprehensive proposal that includes detailed project plans, financial documents, and commitments from service providers if applicable. Sponsors must submit an application by the specified deadline, and funding decisions are made based on a competitive process that evaluates scoring criteria such as financial feasibility, project readiness, and the project's ability to meet community housing needs. Eligibility for the MHP is limited to specific entities, including nonprofit organizations, for-profit developers, local governments, and tribal entities, as long as they meet the criteria for experience and project size. Furthermore, sponsors must demonstrate the ability to manage the project effectively throughout its development and the full term of the affordability period, typically 55 years. Applications must be submitted by the deadline specified in the Notice of Funding Availability (NOFA), which also includes details on the funding amounts, project scoring, and additional eligibility criteria. For projects requiring specialized services, such as those for special needs populations, a detailed supportive services plan must be submitted. The program also sets limits on the maximum loan amounts, ensuring that funds are distributed based on project needs and the availability of other funding sources.