01 NOFA_2026-03_Capital_IHTF_HOME_FINAL.pdf

Notice of Funding Availability for Affordable Housing Acquisition, Construction, Preservation, and Rehabilitation

Open Date: October 1, 2026 Close Date: November 19, 2026

SDHCD.ORG

COUNTY OF SAN DIEGO HEALTH AND HUMAN SERVICES AGENCY

HOUSING AND COMMUNITY DEVELOPMENT SERVICES

3989 Ruffin Road • San Diego, CA • 92123-1815 • (858) 694-4885 • TDD: (866) 945-2207

Elizabeth A. Hernandez, Ph.D Interim Deputy Chief Administrative Officer, Health and Human Services Agency

David Estrella, JD Director, Housing and Community Development Services https://www.sandiegocounty.gov/sdhcd/

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SAN DIEGO COUNTY BOARD OF SUPERVISORS

Terra Lawson-Remer District 3 / Chair

Monica Montgomery Steppe

District 4 / Vice Chair

Paloma Aguirre District 1 / Chair Pro Tem

Joel Anderson

District 2

Jim Desmond District 5

Ebony Shelton

Chief Administrative Officer

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TABLE OF CONTENTS

NOFA OVERVIEW

NOFA SUBMITTAL INSTRUCTIONS

NOFA TIMELINE

TECHNICAL ASSISTANCE

ANTICIPATED AVAILABLE FUNDING

AFFORDABILITY PERIOD

ELIGIBLE COMMUNITIES:

APPLICANT QUALIFICATION REQUIREMENTS

PREFERENCES

EVALUATION CRITERIA

RESERVATION OF FUNDS

MATERIAL CHANGE(S)

APPLICANT FINANCIAL CAPACITY

CONDITIONS

COST RECOVERY AND FEES

DEVELOPMENT WAITLIST

NOFA APPLICATION

TAB 1: GENERAL INFORMATION AND FINANCIAL FEASIBILITY

TAB 2: DEVELOPMENT OVERVIEW

TAB 3: APPLICANT EXPERIENCE

TAB 4: TENANT POPULATION AND SUPPORT SERVICES

TAB 5: MANAGEMENT PLAN

TAB 6: REPORTS

TAB 7: REHABILITATION PROJECTS (as applicable) TAB 8: RELOCATION (as applicable)

NOFA APPLICATION ACKNOWLEDGMENT

NOFA ATTACHMENTS

ATTACHMENT A – Program Basics ATTACHMENT B – Required Federal Provisions ATTACHMENT C – Sample Insurance Requirements ATTACHMENT D – Sample Board Resolution ATTACHMENT E – San Diego County Income Limits ATTACHMENT F – Management Plan Requirements ATTACHMENT G – Estimated Development Timeline

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NOTICE OF FUNDING AVAILABILITY

OVERVIEW

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NOFA OVERVIEW

The County of San Diego Health and Human Services Agency (HHSA), through its Housing and Community Development Services (HCDS) division, is issuing this Notice of Funding Availability (NOFA) with the objective of supporting the acquisition, construction, preservation, and rehabilitation of affordable multi-family housing units.

These units will serve households with extremely low (30% Area Median Income, or AMI), very low (50% AMI), and low-income (80% AMI) levels. Financing will be provided through HCDS-administered funding sources, subject to availability. Funding through this NOFA will primarily come from a combination of these sources:

• Innovative Housing Trust Fund (IHTF)

• HOME Investment Partnerships Program (HOME)

• HOME Investment Partnerships American Rescue Plan Program (HOME-ARP)

• Community Development Block Grant (CDBG)

• Permanent Local Housing Allocation (PLHA)

Eligible developments include any acquisition, construction, preservation, and/or rehabilitation supporting the goal of creating or preserving affordable housing throughout the San Diego region.

Proposed developments will be evaluated for their eligibility under all available applicable funding sources. All requirements associated with these funding sources will apply to developments funded through this NOFA. HCDS may allocate different funds than those originally requested by the applicant to meet the funding objectives of

HCDS.

HCDS reserves the right to allocate funding sources at its sole discretion.

NOFA SUBMITTAL INSTRUCTIONS

All materials and information related to the NOFA can be found within the NOFA Overview, NOFA Application, NOFA Application Workbook, and NOFA Attachments. The NOFA Overview provides a summary of the NOFA Application and Application Workbook, incorporates the NOFA Attachments by reference and is further supplemented by them.

Submit completed and signed NOFA responses in electronic format as indicated in the NOFA Application Workbook. The NOFA application must be delivered in one USB drive and one electronic copy per the instructions noted below:

Mail or Deliver USB to County of San Diego Housing and Community Development Services 3989 Ruffin Road San Diego, CA 92123 Attn: Community Development

Electronic application shall be submitted via secured electronic document management and storage system (SharePoint, OneDrive, Dropbox) with email notification to community.development@sdcounty.ca.gov.

Applicants who do not submit both versions of their completed application on or before the application deadline will be deemed non-responsive. Applications shall be saved/stored in accordance with the NOFA Checklist included in the NOFA Application Workbook. Documents should be in labeled folders and named in accordance with said checklist.

Applications submitted for consideration must be complete and fully executed. If any information requested in the NOFA is not applicable to the proposed development, note “N/A” on the Application Checklist. Faxed copies, electronic copies submitted via CD, or data provided via links or websites will not be accepted. The electronic application and the information contained on the USB drive shall be consistent and the same. The County will not consider any items previously submitted through other NOFA applications.

mailto:community.development@sdcounty.ca.gov

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HCDS reserves the right to change the requirements and policies described in this NOFA at HCDS’ sole discretion.

HCDS is responsible only for that which is expressly stated in the NOFA documents. Any supplemental NOFA information shall be made available to each person or organization via email. It is the responsibility of applicants to ensure, prior to submission, that the application reflects the most recent information, program requirements, and policies. By submitting an application, the applicant acknowledges receipt of all supplemental NOFA information, if applicable, that was emailed. HCDS is not responsible for and shall not be bound by any representations otherwise made by any individual acting or purporting to act on its behalf if those representations conflict with NOFA requirements.

Furthermore, HCDS reserves the right, in its sole discretion, to disqualify any application that is incomplete, out of order, lacks required attachments, or contains errors, inconsistencies, misrepresented information or other deficiencies. Forms provided in the NOFA application must be used and information provided otherwise may be disregarded at the discretion of HCDS. HCDS reserves the right to waive disparities in a NOFA response if the sum and substance of the NOFA response is present. Moreover, HCDS reserves the right to terminate this NOFA at any time without prior notice.

NOFA TIMELINE

Below is the timeline for the NOFA. The County reserves the right to modify any of the dates in the schedule as deemed necessary.

DATE EVENT

10/01/2026 NOFA Release 10/15/2026 Virtual Industry Day at 3:00 pm – 3:30 pm 11/19/2026 NOFA Application Due by 2:00 p.m.

March 2027 Award

TECHNICAL ASSISTANCE

All communications regarding this NOFA and any requests for clarification must be submitted to HCDS via email at community.development@sdcounty.ca.gov.

ANTICIPATED AVAILABLE FUNDING

Funding made available through this NOFA will include IHTF, HOME, HOME-ARP, CDBG, and PLHA funding, supporting the acquisition, construction, preservation, and/or rehabilitation of multi-family affordable housing throughout the San Diego region. Each funding source comes with unique regulatory requirements. It is the applicant’s responsibility to familiarize themselves with regulations for local, state, and federal resources offered through this NOFA.

AMOUNT PROGRAM

$9.0M IHTF

$2.5M HOME

$1.5M HOME-ARP

$1.8M CDBG

$1.2M PLHA

mailto:community.development@sdcounty.ca.gov

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Program (Funding Type)

Target Population

Maximum

AMI

Required Affordability

Special Requirements

Eligible Communities

CDBG Low-income Households

≤ 80% Minimum 5-years

For acquisition or rehabilitation only

Urban County Cities & Unincorporated Areas

HOME Low-income Households

≤ 60% Minimum 20-years

20% of all HOME designated units must meet low-HOME requirements

All HOME funds awarded under this NOFA are subject to Build America Buy America (BABA) BABA Overview

24 CFR Part 92

HOME Consortium

HOME-ARP Persons Experiencing Homelessness or at Risk of Homelessness

≤ 30% Minimum 15-years

Support units that meet HOME requirements AND are designated for persons experiencing or at-risk of homelessness.

HOME Consortium

IHTF Low-income Households

≤ 80% Minimum 55-years

IHTF Ordinance All communities in San Diego County

PLHA Low-income Households

≤ 60% Minimum 55-years

Urban County Cities & Unincorporated Areas

AFFORDABILITY PERIOD

HCDS will enforce an affordability period of at least 55 years or more as required for all developments awarded funds under this NOFA. Successful applicants will acknowledge the affordability period applicable to the project.

ELIGIBLE COMMUNITIES:

Urban County: Unincorporated Areas of the County and the cities of Coronado, Del Mar, Imperial Beach, Lemon Grove, Poway, and Solana Beach.

HOME Consortium: Unincorporated Areas of the County, Urban County cities, and the cities of Carlsbad, Encinitas, La Mesa, San Marcos, Santee, and Vista.

Jurisdiction Urban County

(PLHA & CDBG)

HOME Consortium

(HOME /

HOME-ARP)

Regional

(IHTF)

Unincorporated area x x x Carlsbad x x

Chula Vista x Coronado x x x

Del Mar x x x El Cajon x Encinitas x x https://www.hudexchange.info/programs/baba/ https://www.ecfr.gov/current/title-24/subtitle-A/part-92 https://codelibrary.amlegal.com/codes/san_diego/latest/sandiego_admin/0-0-0-113414

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Jurisdiction Urban County

(PLHA & CDBG)

HOME Consortium

(HOME /

HOME-ARP)

Regional

(IHTF)

Escondido x Imperial Beach x x x

La Mesa x x Lemon Grove x x x National City x

Oceanside x Poway x x x

San Diego x San Marcos x x

Santee x x Solana Beach x x x

Vista x x

APPLICANT QUALIFICATION REQUIREMENTS

The County of San Diego will accept and consider eligible development proposals from all qualified applicants.

Applicants should represent a development team that includes a developer, architect, professional consultants (such as an attorney), a general contractor, property manager, lenders and investors, and any other team members necessary to finance, construct, and operate the development.

Qualified housing developers must demonstrate ability and capacity to:

1. Construct affordable housing developments.

2. Operate and maintain affordable housing developments throughout the project’s life cycle.

3. Adhere to all programs’ regulatory, statutory, and funding requirements and guidelines.

4. Leverage other funding sources, such as private equity loans from lending institutions, and funds from federal, state and/or local programs.

PREFERENCES

Preferential consideration will be provided for affordable housing developments that meet the following conditions:

1. Development Location: Development is in the Unincorporated Areas of the County or is located on County-owned land.

2. Timeliness to Construction Start: Developments applying for the California Debt Limit Allocation Committee (CDLAC)/California Tax Credit Allocation Committee (TCAC) second application round (9% or 4%) in calendar year 2027 will receive priority points through this NOFA. If applicant receives priority points under this preference category and an application is not submitted to CDLAC/TCAC, the award of funds must be returned to HCDS.

3. Green Design and Building:

a. Preference will be given to developments that incorporate green building and resource-efficient technologies that, at a minimum, align with TCAC sustainability requirements, Title 24 and achieve a minimum Leadership in Energy and Environmental Design (LEED) Silver certification consistent with the U.S. Green Building Council requirements (or equivalent designation) and/or is located in a high opportunity area in alignment with TCAC;

b. Landscaping: If landscaping is to be provided or replaced, a variety of plant and tree species that require low water use (such as Southern California native plants and tree species) should be

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provided in sufficient quantities based on landscaping practices in the general market area and low-maintenance needs.

c. Appliances: Proposal should include energy-efficient appliances throughout the project.

d. Renewable energy: Proposal should include onsite renewable generation estimated to produce 50% or more of annual electricity use.

4. Homeless Housing:

Applications designating a portion of the units for persons experiencing homelessness or at-risk of homeless will receive a preference for HOME-ARP funding. Developments integrating homeless housing units must provide a supportive service plan and documentation of funding secured for ongoing supportive services at the development.

5. Location/Amenities: Developments located in transit-oriented areas aim to reduce automobile dependence and enhance residents' mobility options by providing convenient access to public transportation for commuting to workplaces, schools, healthcare facilities, neighborhood amenities, full-service grocery stores, public libraries, senior services, recreational facilities, and primary care providers. Developments shall be located in low-VMT areas as defined by SB 743 (San Diego Region SB743 VMT Maps – arcgis.com)

EVALUATION CRITERIA

SECTION CATEGORY MAXIMUM

POINTS

1.A Geographic Location 30 1.B Building Features 5 2.A Timeliness to Construction Start 5 2.B Planning and Building Approvals 10 3.A Financing Plan – Sources (leverage) 10 3.B Financing Gap 20 3.C Repayment of County Loan 10 4.A Experience 20 4.B Financial Capability 10 5.A Target Population 15 5.B Tenant Support Services 15 5.C Overall Assessment 15

TOTAL 165

RESERVATION OF FUNDS

Time is of the essence to commit and expend funds. Upon approval of a conditional loan commitment, funds may be reserved for the project for a maximum of 24 months but may be revoked earlier if satisfactory progress is not demonstrated. HCDS reserves the right to cancel fund reservations at its discretion if projects are not proceeding satisfactorily (in the sole opinion of HCDS) towards commencement of the proposed activity.

HCDS reserves the right to cancel its funding reservation if the HCDS loan has not closed escrow by the end of the 24th month. Funding reservation time extensions may be granted at the sole discretion of HCDS. Funding through this NOFA is contingent upon the applicant obtaining commitments from other funding sources. Once awarded, HCDS will not break up or combine project awards to accommodate a conversion to or from a hybrid TCAC project.

MATERIAL CHANGE(S)

From the date the application is submitted and at all times up to the conversion of the development’s senior loan to permanent financing, Applicants must request and receive the HCDS’ written approval for any proposed https://opr.ca.gov/ceqa/sb-743/ https://sandag.maps.arcgis.com/apps/webappviewer/index.html?id=bb8f938b625c40cea14c825835519a2b https://sandag.maps.arcgis.com/apps/webappviewer/index.html?id=bb8f938b625c40cea14c825835519a2b

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material changes. Material changes include but are not limited to changes or alterations regarding: tenant population; unit mix (including number of bedrooms and unit size) and AMI distribution; architectural design;

energy efficiency and sustainability features; development team; lead developer or joint developer structure;

ownership; proposed financing structure, including all funding sources (deferred developer fee included) and funding amounts; supportive services; cash flow, including the timing and amount of repayment of the County loan;

operating subsidies; changes in development budget line items that show an increase that exceeds 10 percent of the existing line item total; environmental and title conditions of the project site; land use approvals and permits; and community support for the project. If the applicant undertakes material changes without approval, HCDS reserves the right, in its sole discretion, to withdraw, rescind, or modify any funding commitment.

Recipients of funding through this NOFA will be required to execute a promissory note, deed of trust, regulatory agreement, and other related loan documents. Loan funds will not be disbursed until the loan is closed through escrow.

Verifiable documentation of expenses must be submitted with all draw requests.

APPLICANT FINANCIAL CAPACITY

Applicant shall demonstrate financial capacity to perform administrative, managerial, and operational functions, and to oversee the work necessary for successful completion of the proposed development. To be eligible for financing, an applicant shall:

1. Exhibit prior work resulting in successful development of affordable rental housing. Successful development may include acquisition, construction, operation, acquisition with rehabilitation or any combination of accomplishments that created or preserved affordable housing.

2. Possess control of the proposed development site through fee title, option to purchase, disposition and development agreement with a public agency, land sales contract, leasehold with development provisions or any other enforceable instrument approved by HCDS.

3. Provide full disclosure of all associations between partners, contractors, and subcontractors. Conflict-of-interest laws and regulations will be strictly applied.

NOTE: It is the responsibility of each applicant to ensure that all of its employees, contractors, affiliates, agents, volunteers, and other personnel comply with all applicable laws and rules regarding conflicts of interest, including California Government Code section 1090 et seq., the Political Reform Act, and the County Administrative Code, including but not limited to Section 67.

CONDITIONS

Applications for funding will be considered based on the threshold requirements and preferences/priorities criteria set forth in this NOFA. HCDS reserves the right to negotiate and award an allocation of funds to multiple applicants and may request additional information from applicants. In the event applications for funding exceed the amount of funding available, applications that meet all NOFA requirements and would otherwise be eligible for an award, may be placed on a waitlist for funding. HCDS may use the waitlist to award funds that become available up to one year after the NOFA close date. HCDS reserves the right to request and evaluate additional information from waitlisted applications prior to awarding funds. HCDS is not required to issue funds to waitlisted applications and reserves the right to issue a new NOFA in lieu of awarding funds to waitlisted applications. Placement on the waitlist is NOT a commitment of funding from HCDS and is NOT an indication of future award. Placement on the waitlist will NOT impact an application’s score if the project applies under future NOFAs.

By the act of submitting a response to this NOFA, applicants acknowledge and agree to the terms and conditions of this NOFA and to the accuracy of the information submitted. All applications become the property of the County of San Diego and will not be returned. All submitted information will become public information and is subject to public inspection under the State of California Public Records Act. No confidential or proprietary information, including Personnel Information (PI) or Personal Identifiable Information (PII), is to be included in the non-confidential responses. If confidential or proprietary information is contained within the NOFA response, the documents must be submitted in a separate clearly labeled exhibit with all pages marked as “CONFIDENTIAL /

PROPRIETARY.”

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=4.&title=1.&part=&chapter=1.&article=4.

https://codelibrary.amlegal.com/codes/san_diego/latest/sandiego_admin/0-0-0-28393

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It is understood and agreed upon by the applicant in submitting a NOFA response that the County has the right to withhold all information regarding this NOFA until after conditional awards are distributed, including but not limited to competitive development description information, competitive proposed financial capability, and HCDS’ evaluation of NOFA responses. Information releasable after award is subject to the disclosure requirements of the Public Records Act, State of California Government Code Section 6250.

NOTE: Applicants acknowledge that by applying under this NOFA, they are seeking a benefit from a government entity. Applicants must acknowledge that all statements in their application are and will remain true; failure to comply with this commitment may violate the federal or state False Claims Act.

COST RECOVERY AND FEES

The Owner of any development funded through this NOFA will be required to pay any and all relevant fees that may be imposed by the Board of Supervisors, and such fees may be enacted or amended from time to time. The Applicant is responsible for the payment of County staff time related to Environmental Review. Payment to the County shall be included with the development finance closing pro forma.

DEVELOPMENT WAITLIST

For all developments that will utilize a waitlist to select tenants, Applicant must notify the County at least 30 days prior to opening the waitlist for applications. Notification must include the exact process(es) to be used (e.g., online application portal [including the exact website], in-person application location, etc.) to populate the waitlist. For developments that will fill all tenant units using the Coordinated Entry System (CES), Applicant must notify the County of this at least 30 days prior to requesting initial referrals from the Regional Task Force on Homelessness

(RTFH).

https://california.public.law/codes/ca_gov't_code_section_6250

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APPLICATION

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NOFA APPLICATION

All NOFA Application documents must be submitted as outlined in this section. Application documents will be supplemented with a completed NOFA Application Workbook (Excel file). This section includes information about required documents to be submitted as a part of the completed NOFA Application. Each section of the NOFA response shall be labeled in the order shown on the table below. Any proposal may be construed as non-conforming and ineligible for consideration if it does not conform to the requirements of the NOFA. If a proposal is found to be non-conforming, the Applicant will be notified, and the proposal may no longer be considered for award.

TAB 1: GENERAL INFORMATION AND FINANCIAL FEASIBILITY

HCDS NOFA APPLICATION

Provide the following:

1. NOFA Application Workbook (Excel Workbook) A. Application Checklist B. Development Summary C. Additional Development Information D. Permanent Sources of Funding E. Permanent Uses of Funding F. Neighborhood Amenities Summary G. Acknowledgement H. Certification

2. Board Resolution

Submit copy of applicant’s Board of Directors Resolution as noted in Attachment “D” entitled “Sample Board Resolution.” If the Board Resolution is not available at the time of application submission, Board Resolutions may be submitted within two weeks of the NOFA application due date.

3. Partnership Agreements

As applicable, applicant must provide partnership agreements for the development.

4. Pro Forma, to include at a minimum A. Rental Income Form, Operating Expense, Development Cost, Sources and Uses, Cash Flow and

Development Pro forma for a minimum period of 20 years. The proposed financing structure and operating pro forma will be evaluated to determine feasibility during the affordability period.

B. Loan terms/underwriting are subject to change at HCDS’ sole discretion. HCDS reserves the right to require additional and/or revised conditions in the final documentation of the transaction and as reasonably necessary to protect the interests of HCDS and fulfill the intent of this NOFA.

C. Loan terms include:

a. 3% simple interest

b. 55-year term

c. 50% residual receipts required, may be split proportionally with other public lenders

d. General partner loan may not be paid above County loans.

e. Developer’s fees may not exceed TCAC fee limits.

D. Replacement Reserves:

a. For all rehabilitation developments, it is required that applicants budget a minimum of $720 per unit, per year in the replacement reserve. HCDS reserves the right to require higher replacement reserves based on a capital needs assessment that includes an analysis of all major systems, remaining useful life and projected replacement needs.

b. For new construction developments, it is required that applicants budget a minimum of $375 per non-Permanent Supportive Housing (PSH) unit per year.

c. For PSH developments, applicants shall budget a minimum of $500 per PSH unit per year.

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5. Enforceable Commitments and Financial Feasibility

A. Due to program requirements, all local funds, other than HCDS funding sources, shall be secured prior to applying for funds available through this NOFA. Applicants that have not provided legitimate evidence of funding commitments from all funding sources will be deemed “non-responsive.”

B. Funding Commitments from other lenders must be submitted on the company’s letterhead, signed, and should include the following information:

a. Lender’s Name,

b. Title of the signatory,

c. Contact details of the responsible person, including e-mail address and telephone number.

C. Note that senior lenders must subordinate to HCDS regulatory requirements. HCDS must be informed if the applicant intends to request subordination of HCDS’ financial interests.

D. Provide list of enforceable commitments or reservations of rental or operating subsidies as well as any fundraising plans.

E. Describe a plan for repayment of the requested amount of HCDS NOFA funds. Developments with cash flows that demonstrate an ability to repay a higher percentage of the County loan through year 20 of the Development's operation, utilizing reasonable cash-flow assumptions, may receive additional points.

F. If the funding for the proposed development is in part dependent upon the award of LIHTC or bonds, provide a financial contingency plan that will be implemented in the event financing is denied.

Provide a description of specific amounts, sources, likelihood of award, and timing of alternative funding, as well as how the development will be scaled down, if necessary.

G. Describe the plan to maintain operations and financial feasibility for the full affordability period.

H. Describe any in-kind contributions to the development. Include the name(s) of the contributors, the items or services being provided, and the value of the contributions.

TAB 2: DEVELOPMENT OVERVIEW

1. Development Narrative Provide a brief narrative overview that includes the following information:

A. Development location.

B. Proposed development/design.

C. Number of units and unit type.

D. Development amenities.

E. Development goals/objectives.

F. Community Impacts:

a. Housing Impact: Explain how the development will avoid an overconcentration of low-income housing in the area. Identify any existing housing developments or facilities that serve similar needs within the community.

b. Community Planning/Sponsor groups: Describe any involvement with community planning or sponsor groups.

c. Community Outreach and Engagement: Outline the efforts made to engage and involve the community in the development process.

d. Access to Medical Care and Social Services: Provide information about the availability and accessibility to medical care (e.g., emergency care, outpatient services, long-term care, and extended care) and social services that are typically required by future residents in the development.

2. Attachment “G” Estimated Development Timeline Submit a copy of the completed Attachment “G” Estimated Development Timeline.

3. Consistency with Land Use and Zoning Provide documentation that the development site conforms with zoning and that all necessary land use

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approvals are complete.

A. At the time of application, applicant shall demonstrate the development site’s zoning will permit the development, as proposed, B. Confirm the Development is consistent with the site zoning requirements, General Plan designation, and the local community plan, C. Submit proof that all necessary land use, zoning, permitting, or building plans have been approved.

If land use approvals are pending, provide a reasonable plan and timeline detailing how the applicant will obtain any land use approvals for the development.

4. Evidence of Site Control

Applicants must possess control of the proposed development site with adequate provisions or any other enforceable instrument. Provide documentation of site control with one of the following: Fee title, Option to purchase, Disposition and development agreement with a public agency, Land sales contract, or Leasehold.

5. Development Design and Implementation Provide a description for the following:

A. Preliminary site plan(s) and floor plans.

B. Development renderings and photos of the existing site.

C. Environmentally sustainable development features and technologies.

a. Environmentally sustainable features may integrate practices that exceed green building standards (LEED or equivalent) for the design, development, construction, and operations of affordable housing that promote sustainability measures that increase energy-efficiency by utilizing environmentally preferable products for the building envelope, renewable resources, and decrease production of waste/hazardous materials. Reference the following links for more detailed requirements: California Energy Code Title 24, 2021 IECC Standards, and California Tax Credit Allocation Committee (CTCAC).

b. Below is a summary of possible environmental design elements. These are not required but if they will be included, please include how these measures will be implemented at the proposed development.

i. Energy Efficiency & Renewable Energy: onsite renewable generation estimated to produce 50 percent or more of annual electricity consumption.

ii. Water Efficiency: design or reevaluate existing landscape conditions for the provision of efficient irrigation systems that aim at minimizing water usage without compromising the aesthetics and functionality of outdoor spaces. Landscape design shall incorporate a variety of native plants and trees species that require low water usage.

iii. Environmentally Preferable Building Materials & Specifications: design incorporating environmentally preferable products (EPPs) for the construction of the affordable housing development.

iv. Toxic/Toxins Reduction: design deterring from utilizing construction products and materials with toxic chemicals found in flooring, paint, sealant, flame retardants, and insulation.

v. Indoor Air Quality: design with energy efficient systems in place to circulate and filter the air in the structure.

vi. ENERGY STAR: inclusion ENERGY STAR appliances throughout the project to reduce operating costs and decrease greenhouse gas emissions.

D. Various levels of safety design features, technologies, and policies for tenants.

E. How the development will incorporate the use of universal design principles and/or design features.

6. Consistency with the County of San Diego Consortium Consolidated Plan

Applicants are required to demonstrate the proposed development is consistent with the current HUD-approved Consolidated Plan for the County of San Diego, and if applicable, for the jurisdiction where the development is located.

https://www.usgbc.org/leed https://www.energy.ca.gov/programs-and-topics/programs/building-energy-efficiency-standards https://codes.iccsafe.org/content/IECC2021P1 https://www.treasurer.ca.gov/ctcac/ https://www.energystar.gov/partner_resources/residential_new/related_programs/housing_agencies/affordable_housing https://www.sandiegocounty.gov/content/dam/sdc/sdhcd/new-docs/CD/2025-2029_Consolidated_Plan_and_2025-2026_Annual_Plan.pdf

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TAB 3: APPLICANT EXPERIENCE

1. Applicant Experience Describe Owner’s, Developer’s, and Property Manager’s experience, as indicated below. Provide supporting documents for each entity:

A. Mission Statement.

B. Past activities/experience with similar developments.

C. Administrative structure/organizational chart.

2. Technical Capacity

Describe the development team’s technical capacity and experience, including construction, management, operation and ability to deliver high-quality services to the targeted resident population.

A. Attach resumes of staff specifically assigned to this development (including project management staff). Include credentials of the development team members.

B. Provide a summary of affordable housing real estate owned including date of operation, location, total number of units, and tenant population for each development. Real estate owned summary should be in a format that includes clear sections of completed, in process, and pipeline developments with totals for each section and overall. Applicants who do not include all required information regarding their affordable housing portfolio may not receive maximum points in the Applicant experience section(s). Discrepancies between the Application Workbook, narrative(s), and supporting documentation regarding the number of affordable housing units owned and operated will be resolved at HCDS’ discretion.

C. Provide a summary of real estate managed by the property manager including date of operation, location, total number of units, and tenant population of each development.

TAB 4: TENANT POPULATION AND SUPPORT SERVICES

The Development must include a tailored, highly effective strategy that integrates affordable housing with coordinated services. This approach should specifically address the needs of the residents, with the goal of helping them maintain stable housing and receive appropriate support.

Applicants must specify the type and level of supportive services intended to be provided to special needs populations, if applicable. Additionally, applicants must submit evidence demonstrating their commitment to these services, along with information about the service provider’s qualifications and capacity to deliver them.

Please note that housing developments funded by programs such as CDBG, HOME, HOME-ARP, and PLHA may support rental housing for special needs populations. However, residents cannot be required to use supportive services; instead, these services must be offered on a voluntary basis.

1. Target Population and Support Services

Provide a brief narrative overview that includes the following information:

A. Proposed tenant population(s) for the development.

B. Number of units and unit types allocated for each tenant population.

2. Supportive Services Narrative

Provide a brief narrative overview regarding the proposed service provider(s) experience and services to be offered at the development, to include:

A. Provider experience with proposed tenant population.

B. Support services descriptions, including service model, services offered, staffing plan with full-time equivalents (FTEs) and location of services (on site or off site). Applicant must differentiate between resident services, generally offered to all residents, and specialty services, which go above and beyond resident services and may be based on additional eligibility criteria.

C. Role of Peers/Peer Support Specialists in service delivery.

D. Services budget and funding sources, as well as the number of units to be served by the service

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provider.

E. How the development will empower families and individuals to achieve self-sufficiency.

3. Evidence of Supportive Services

Provide a Memorandum of Understanding (MOU) or similar agreement between the owner and each service provider, if the service provider is from a 3rd-party organization. In addition, submit a narrative summary of partnership history for each service provider. In order to receive full points, MOUs must: be binding; be fully executed; include clear details about the services to be provided (to include the specific type of service(s) to be offered, annual budget, and number of units served); and include the term of the agreement. Developments with proposed HUD-Veterans Affairs Supportive Housing (HUD-VASH) units will not be required to submit an executed MOU with the U.S. Department of Veterans Affairs

(VA).

TAB 5: MANAGEMENT PLAN

1. Affirmative Fair Housing Marketing Plan An Affirmative Fair Housing Marketing Plan (AFHMP) shall outline methods of informing potential tenants about fair housing laws and contractor policies. An AFHMP shall contain a plan outlining how the applicant will affirmatively market the assisted units. In addition, the AFHMP must contain a plan outlining the special outreach actions to inform persons who would not be likely to apply for the assisted housing without special outreach efforts. An AFHMP must include all items outlined in this NOFA and must be submitted as part of the complete application packet. If awarded funding, the AFHMP may be approved by the U.S. Department of Housing and Urban Development (HUD) and must submitted to HCDS prior to leasing units.

2. Management Plan The applicant will be required to submit a Management Plan for review and approval, pursuant to 24 CFR

92.253. Additionally, HCDS requires a Site Safety & Security element incorporated into the management plan. A copy of the sample lease agreement and any addenda are also required in the submittal of this proposal. Reference Attachment “F” entitled “Management Plan Requirements.” The Management Plan must address all items outlined in Attachment “F.”

3. Smoke Free Housing

Develop and implement smoke-free policies to protect residents and guests from secondhand smoke in accordance with HUD’s Rule to Restrict Smoking. Proposals shall include policies that prohibit use of cigars, cigarettes, electronic cigarettes, and marijuana (including use for medicinal purposes).

Provide copies of smoke-free environment policies that specify how the development will implement programs onsite that include evidence of intent to commit to smoke-free housing. The smoke free policy shall be included in the applicable housing plans and tenant leases.

NOTE: In the development of the comprehensive Management Plan and smoke-free policies, the Property Management team shall ensure these policies shall not lead to housing discrimination.

TAB 6: REPORTS

Any narrative responses submitted under this section will not be considered. Applicants shall only include reports and documents as noted below.

1. Appraisal Submit an appraisal that meets the definition of an appraisal found at 49 CFR 24.2(a)(3) and the URA provisions at 49 CFR 24.103. An appraisal is required for all acquisition, rehabilitation, and new-construction developments. A review appraisal, in accordance with 49 CFR 24.104 of the URA, will be required for an “Involuntary Acquisition.”

https://www.hud.gov/sites/dfiles/OCHCO/documents/935-2A.pdf https://www.hud.gov/sites/dfiles/OCHCO/documents/935-2A.pdf https://www.ecfr.gov/current/title-24/subtitle-A/part-92/subpart-F/section-92.253 https://www.ecfr.gov/current/title-24/subtitle-A/part-92/subpart-F/section-92.253 https://www.publichealthlawcenter.org/sites/default/files/resources/HUD-Final-Rule-Smoke-Free-Public-Housing-2016.pdf#:%7E:text=A%3A%20By%20July%2030%2C%202018%2C%20all%20PHAs%20must,plan%20amendments%20require%20resident%20engagement%20and%20public%20meetings.

https://www.ecfr.gov/current/title-49/subtitle-A/part-24/appendix-Appendix%20A%20to%20Part%2024 https://www.ecfr.gov/current/title-49/subtitle-A/part-24/subpart-B/section-24.103 https://www.ecfr.gov/current/title-49/subtitle-A/part-24/subpart-B/section-24.104

NOFA 2026-03 18

2. Audited Financial Statement and Single Audit Submit current audited financial statements that include surplus or deficits in operating accounts, a detailed itemized listing of income and expenses and the amounts of any fiscal reserves.

NOTE: Audited Financial Statements:

1. Past 12 months

2. Audit shall be certified by State of CA licensed independent CPA

Any non-federal entity, including state, local government, and non-profit organizations, that expend $1,000,000 or more in a year in federal awards shall have a Single Audit, as specified in 2 CFR 200, conducted for that year. As applicable, a copy of the Single Audit with written notification of the results shall be submitted with the application. In addition, in compliance with all federal requirements, provide HCDS with the corrective action plan for any deficiencies identified in the Single Audit and the latest status of the corrective action plan.

3. Environmental Review and Related Reports

Applicant shall provide a Phase I environmental assessment in addition to any related studies that may include but are not limited to, soils report, lead and asbestos survey, noise and traffic study completed for the proposed development site.

The proposed development will be subject to review under the California Environmental Quality Act (CEQA) and the CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000-15387). CEQA review must occur as a part of the land development process required by the local jurisdiction. County of San Diego staff will prepare and/or review the CEQA documentation, as appropriate.

NOTE: The applicant is responsible for the payment of County staff’s time related to

Environmental Review. Payment to the County shall be included with the development’s construction finance closing.

Phase I Environmental Site Assessment (Phase I ESA) The proposed development shall provide an approved Phase I ESA Report in accordance with ASTM E- 1527-21 Standards. Provide a Phase II ESA Report if a Recognized Environmental Condition (REC) is found during the Phase I ESA process. The Phase II ESA may be required with the proposal submittal only if Phase I ESA determined significant amounts of contaminants that require remediation, monitoring, or potentially create land use limitations. Contingent upon the results of Phase II ESA Report, a Phase III ESA may be necessary to submit with the proposal and shall include a remediation plan, devising a strategy to catch and correct any discovered environmental issue initiated by the Phase II ESA report.

NOTE: Phase I ESA Report shall be submitted with the NOFA application.

A proposed development may be required to complete asbestos, radon, and lead surveys to determine the presence or absence of asbestos-containing materials (ACMs), radon gas, or lead-based paint (LBP) prior to issuance of a building permit that includes demolition of onsite structures and prior to commencement of demolition or renovation activities and prior to occupancy by residents.

The County may require testing for asbestos, residual pesticides, mold, water damage, and the completion of a HAZMAT Report for asbestos and lead paint.

Demolition or renovation of structures on sites constructed prior to 1980 may have LBP, ACMs or other hazardous materials and shall conform with hazardous waste disposal requirements as stipulated in California Code of Regulations (CCR), Title 22, Div. 4.5, worker and health safety requirements Title 8, Sec. 1532.1-Lead, State Lead Accreditation, Certification, and Work Practice Requirements of CCR Title 17, Div. 1, Chapter 8, the Health and Safety Code Division 20, Chapter 6.95, Article 2, Section 25531-https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=I86C9BC205B4D11EC976B000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=I86C9BC205B4D11EC976B000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://www.astm.org/e1527-21.html https://www.astm.org/e1527-21.html https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=I81CB6A705B6111EC9451000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://govt.westlaw.com/calregs/Document/IAB3BE390F7EE11EEB3AFA2C3D4231AC7?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default) https://govt.westlaw.com/calregs/Document/IAB3BE390F7EE11EEB3AFA2C3D4231AC7?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default) https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=IC7370D905A2011EC8227000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=IC7370D905A2011EC8227000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=HSC&division=20.&title=&part=&chapter=6.95.&article=2.

NOFA 2026-03 19

25543.3 and other local, state and federal regulations. LBP regulations, effective September 2000, appear in 24 CFR Part 35. Further information on LBP hazard reduction can be obtained from the HUD Office of Lead Hazard Control and Healthy Homes.

Demolition or renovation operations must conform to San Diego Air Pollution Control District (SDAPCD) Rule 1206.

Time requirements for these reviews vary depending upon the potential environmental impact. This process is also consistent with HUD regulations (24 CFR Part 58), which state, “It is HUD policy that all properties that are being proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property” 24 CFR 58.5(i)(2)(i).

Radon Requirements in Environmental Reviews Applicant shall abide by the regulations and requirements of HUD-issued Notice CPD-23-103 addressing radon in the environmental review process pertaining to HUD-assisted projects. The Notice states that radon must be “considered” when conducting contamination analysis required by HUD’s environmental review regulations 24 CFR parts 50 or 58. The Notice does not impose radon testing requirements, though it does include guidance on strategies for considering radon in site contamination analysis. For additional information about radon, including HUD’s policies and guidelines on radon mitigation, please visit the official HUD Exchange website at HUD’s Radon Program Page.

4. Market Study Applicant shall submit a market needs study that examines neighborhood market conditions to ensure adequate need for the proposed development for which funds are to be used. The market study should include the following: market trends, market area, housing supply and a competitive analysis. Data must be recent, within the last six months, and include at least three rental housing developments similar in size and amenities to the proposed development. In addition to demonstrating that rents will be at least ten percent below market rents.

5. Preliminary Title Report Applicant shall provide a preliminary title report.

TAB 7: REHABILITATION PROJECTS (as applicable)

1. Rehabilitation Estimate

All HCDS-funded developments involving rehabilitation must include a physical needs assessment for the repair or replacement of major building systems to extend the service life of the property improvements for a minimum of 15 years. Testing of major building systems may be required.

An adequate 15-year replacement reserve analysis must be provided to identify the current condition of all building elements in the development, (roof, plumbing, electrical, exterior, interior), and indicate any repairs that may require immediate attention. The analysis should indicate the year built, the expected useful life of the system, the remaining life expectancy and the year replacement will be required. The analysis should indicate the estimated annual expenditures required to maintain the property and provide a funding plan summarizing the annual replacement reserve contribution necessary to meet future expenditure requirements.

2. Physical Needs Assessment Proposals involving rehabilitation must contain specific information on the physical condition of the structure(s), estimated cost of the rehabilitation work, and may require testing of major building systems.

A Physical Needs Assessment (PNA) conducted by an independent third party shall be submitted for proposals involving rehabilitation activities. The PNA shall include repair or replacement of major building systems to extend the service life of the property improvements for a minimum of 15 years. Applicants are https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=HSC&division=20.&title=&part=&chapter=6.95.&article=2.

https://www.ecfr.gov/current/title-24/subtitle-A/part-35 https://www.hud.gov/contactus/healthy-homes https://www.hud.gov/contactus/healthy-homes https://www.sdapcd.org/content/dam/sdapcd/documents/rules/current-rules/Rule-1206.pdf https://www.ecfr.gov/current/title-24/subtitle-A/part-58 https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.hud.gov/sites/dfiles/CPD/documents/CPD_Notice_on_Addressing_Radon_in_the_Environmental_Review_Process.pdf https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-58 https://www.hudexchange.info/programs/radon/

NOFA 2026-03 20

encouraged to obtain a PNA prior to making a final offer for property purchase. To prevent delays, applicants shall provide a termite report for any proposal involving acquisition of existing housing and/or structures that will be renovated. Additionally, testing for asbestos, lead base paint, residual pesticides, mold, and water damage may be required.

3. Rehabilitation Standards Rehabilitation activities under CDBG shall conform to Rehabilitation Standards pursuant to 24 CFR 5.703.

TAB 8: RELOCATION (as…