Department of Housing and Community Development

The law directs resources toward rehabilitating aging affordable homes and preventing their conversion to market-rate housing.

What the law does ​

• Lets the Department of Housing and Community Development fund qualifying “challenged developments” for rehabilitation, reserve funding, and long-term affordability.
• Gives first priority to department-funded projects with expired or near-expiring affordability restrictions or other conversion risks.
• Reserves at least 10% of each funding round for qualifying challenged developments not previously funded by the department, subject to limited reallocation if applications are insufficient.
• Requires the department to assess preservation and rehabilitation needs before allocating funds and allows separate selection and underwriting standards.
• Defines challenged developments as qualifying affordable properties at least 15 years old that lack sufficient resources for major rehabilitation and face affordability loss or conversion risk.

Who it affects ​

• Owners and operators of older affordable-housing developments.
• Low-, very low-, and extremely low-income households living in qualifying developments.
• Department-funded affordable-housing projects with affordability restrictions that have expired or will expire within 10 years.

Context ​

A property may be at risk of conversion because of financial distress, major physical or safety deficiencies, sustained vacancies and negative cash flow, or a demonstrated need for support to preserve affordability.