Affordable Accessory Dwelling Unit Program

The Orange County Housing Finance Trust (Trust) is issuing a Request for Information (RFI) for the Affordable Accessory Dwelling Unit (ADU) Program, seeking experienced firms to support the development and implementation of a comprehensive ADU loan program across Orange County and San Francisco. The RFI solicits proposals for services including program administration, technical assistance, loan origination, underwriting, fulfillment, closing, and servicing of affordable housing loans. Key program objectives include financing the construction of 34-68 accessory dwelling units for individuals and families earning at or below 50% of the Area Median Income, with loans up to $100,000 per unit and a goal of reducing ADU development costs to an average of $250,000 or less. Respondents must demonstrate expertise in California home mortgage loan processes, compliance with state lending laws, and successful loan program outcomes, with a preference for firms experienced in ADU financing. The RFI response deadline is January 3, 2025, at 2:00 pm Pacific Time, to be submitted electronically through the County's Online Bidding System, with the Trust potentially entering into discussions or contracts with one or multiple respondents based on their qualifications.

The procurement includes opportunities for Local Small Businesses (OCLSB) and Disabled Veteran Business Enterprises (DVBE), providing specific pathways for local and veteran-owned businesses to participate. The program is funded by two grants totaling $8 million: a $4 million grant from CalOptima and another $4 million from the Southern California Association of Governments (SCAG). Funding will support a 20-year loan program with varied interest rates (0% to Federal Funds Rate plus 5-6%) and potential loan forgiveness mechanisms. Additional financial incentives include a $5,000 grant for mobility-accessible ADUs and $4,500 for professional tenant screening and leasing services. The program requires homeowners to maintain a ten-year affordability covenant, limiting ADU tenancy to residents at or below 50% of the area median income. While the exact contract value is marked as to be determined (TBD), the Trust indicates the potential for multiple contract awards across different service components, with a focus on creating affordable housing options in high-opportunity areas.