RFP- 2026/27 Notice of funding availability for Below Market Rate Housing Funds

The City of Menlo Park, California is soliciting proposals for affordable housing projects through a Notice of Funding Availability (NOFA) with applications due November 20, 2026, and questions due November 6, 2026. Approximately $4 million in below market rate housing funds are available.

Eligible projects include acquisition, new construction, and preservation of permanent affordable rental or ownership housing; mixed-income projects with affordable components; first-time homebuyer programs; and accessory dwelling unit loan programs. Emergency shelters and transitional housing are ineligible. Projects must fill the financing gap between total development costs and other available funding sources.

Qualified developers must demonstrate successful completion of at least two affordable housing projects containing 10 or more units within the nine-county Bay Area, with at least two years of ownership of deed-restricted housing projects serving households at or below 80 percent of area median income. Joint venture partnerships are permitted if at least one member meets minimum experience requirements.

The City prioritizes projects with deed restrictions ensuring affordability for at least 55 years; reasonable costs and sound underwriting; readiness for expedited implementation; maximum density consistent with zoning; green building features; community spaces and on-site services; proximity to transit and services; local hire programs; service to extremely low-income or special needs populations; location in central or west Menlo Park; larger units targeting families; and healthy living environments.

Applications must be submitted online through the city's PlanetBids vendor portal. Funding will be awarded competitively. Housing Commission presentations, recommendations, and City Council funding decisions are scheduled for Winter 2027 through Spring 2027. The City reserves the right to determine funding amounts per awardee, reject any or all proposals, and cancel or amend NOFA provisions. Projects are subject to California Environmental Quality Act compliance and potentially the National Environmental Policy Act if federal funding is involved. Questions should be directed electronically to Management Analyst Arianna Milton at anmilton@menlopark.gov.