Prop 123 Homeownership Funding for FY2025

DOLA’s Division of Housing (DOH) is committed to transparency and keeping you apprised of our progress as we implement Proposition 123. We’re pleased to announce the publication of the Proposition 123 Homeownership guidelines for New Construction/Acquisition Rehabilitation, Mobile Home Programs, Down Payment Assistance Programs (DPA), and Single Family Owner Occupied Rehab Programs (SFOO).

Key highlights include:

  • Increase to $70,000 per unit cap for developing homes;
  • Possibility of bonus funding for State’s priorities;
    • Up to 10% for projects addressing transit-oriented development, density, energy efficiency, mixed-use, early childhood education, or inclusion of income restricted ADUs as wealth-building device
    • Up to 10% for projects utilizing modular construction
    • Max subsidy bonus: 20%
  • Pre-development grants may be made up to $25,000 for local governments, small nonprofits and housing authorities.
  • Up to 20% of the purchase price of down payment assistance may be provided.
  • For fiscal year FY 24-25, $60 million will be available for homeownership projects and programs. DOH will initially prioritize $45 million for homeownership development and $15 million for programs (DPA, SFOO) throughout the fiscal year. This is more than five times the amount DOH invested in homeownership from last fiscal year, excluding one-time stimulus funds. It is also important to note that additional funds will be available, but the funds will be included in competitive rounds and the funding source is eligible for both homeownership and rental.

Division of Housing Application Due Dates and Funding Available

The calendar for the rest of FY 24-25 will be released no later than November 1, 2024; this will include funding for both rental and homeownership development projects.

Due Date: July 15, 2024

  • Letters of Intents (LOIs) due for August 1 application cycle

Due Date: August 1, 2024

  • Application Type: Homeownership Programs (DPA & SFOO)
  • Funds Available: $10 million
  • Source of Funds: State Prop 123 Homeownership funds

Due Date: August 15, 2024

  • Letters of Intents (LOIs) due for September 1 application cycle

Due Date: September 1, 2024

  • Application Type: Homeownership Development
  • Funds Available: $10 million
  • Source of Funds: State Prop 123 Homeownership funds

Funding amounts are subject to change, as Vendor Fee proceeds are impacted by sales tax proceeds. DOH will announce how much funding will be made available with each application upon publication of LOIs.

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