Affordable Housing Development - Homekey+

Shasta County's Department of Support Services is requesting proposals for affordable housing development under the Homekey+ program, with proposals due October 12, 2026 at 2:00 p.m. via electronic submission at https://procurement.opengov.com/portal/shastaca. This is a funding opportunity, not a traditional procurement contract — the County intends to enter into one or more agreements with selected respondents, including a promissory note, Deed of Trust, Development Agreement, Completion Guarantee, and Regulatory Agreement, with terms subject to negotiation.

Projects must serve households with individuals experiencing or at-risk-of homelessness who are also living with a behavioral health challenge, with priority given to veterans. Site control is mandatory. All projects must be located within Shasta County outside the City of Redding limits.

Capital projects can receive up to $35 million in total Housing and Community Development funding; scattered-site projects are limited to $10 million per project. Homekey+ assistance is a fully deferred, low-interest loan with a 55-year affordability period, capped at no more than 10% of total project funding. Developers must secure a minimum of 40% of estimated construction costs through other sources. The baseline HCD contribution is $200,000 per door for each Assisted Unit and Manager's Unit for Permanent Supportive Housing projects not seeking gap funding. Grantees are prohibited from applying for or receiving tax credit allocations on the funded project for 15 years from receipt of a Temporary Certificate of Occupancy.

Threshold requirements include EIN verification, ownership structure documentation, Phase 1 Environmental Report minimum, and insurance (Commercial General Liability $2 million per claim/$4 million aggregate; Professional Errors and Omissions $2 million per occurrence/$2 million aggregate). Evaluation criteria are project readiness and site control (30%), technical approach and collaboration (25%), funding and operating leverage (25%), and respondent background and experience (20%). Questions are due September 9, 2026 at 2:00 p.m. The County reserves the right to award to one or more respondents or reject all proposals.