April 23, 2025

San Jose RFP – Sticks & Bricks: News for Developers

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In this edition of Sticks & Bricks, we’re spotlighting San José’s launch of a revamped Gap Financing Program with a new rolling RFP and updated underwriting guidelines. We also highlight key funding opportunities like the $775M AHSC Program, the latest CDLAC allocations (congrats to Affirmed Housing, Eden Housing, and RCD!), and upcoming industry events including SV@Home’s Affordable Housing Month Housewarming Luncheon and San José’s virtual community meeting on new multifamily regulations.

San Jose RFP & Underwriting Guidelines Update

The City of San José has launched a rolling Request for Proposals (RFP) for affordable housing funding through its newly branded Gap Financing Program. This update marks a significant shift in the City’s approach to awarding local funding, aiming to better align with state and regional financing practices.

The release is accompanied by the 2025 Gap Financing Program Regulations, a revised set of underwriting guidelines designed to streamline the City’s process and offer clearer expectations to developers seeking public funding.

Key Details:

  • The RFP is open now and will remain open for 12 months.
  • Projects will be scored under the new guidelines and scores will be posted publicly.
  • A formal Notice of Funding Availability (NOFA) will be issued within the next 45 days. Projects submitted before that time will still be eligible and considered.
  • The RFP process will reset the current waitlist: all submitted projects will be re-scored.
  • Top-scoring projects will be prioritized for funding, with the remaining projects added to a new waitlist.

Click Here to access the RFP and 2025 Program Guidelines. Developers can also access the RFP through the City’s Biddingo portal or by visiting the SJ Developers Resource Page.

Funding Opportunities

Explore these new funding sources for affordable housing development:

  • New: San Jose RFP – 2025 Update
    • The City of San José has launched a rolling RFP for its Gap Financing Program, accompanied by updated underwriting guidelines. Projects submitted will be publicly scored, with top proposals prioritized for funding and the remainder added to a new waitlist.
  • Affordable Housing and Sustainable Communities Program NOFA
    • HCD, in partnership with the Strategic Growth Council (SGC), has announced the release of approximately $775 million in funding under the Affordable Housing and Sustainable Communities (AHSC) Program, aimed at reducing greenhouse gas emissions and supporting sustainable, infill development. Applications will be accepted via the AHSC portal from April 2 to May 28, 2025.
  • Homekey+
    • The Homekey+ NOFA provides $2.145 billion for Permanent Supportive Housing for veterans and individuals with behavioral health challenges who are homeless or at risk.
  • Tribal Homekey+
    • The Tribal Homekey+ NOFA provides $121 million for Tribes and Tribal Entities to expand Permanent Supportive Housing for households experiencing or at risk of homelessness with behavioral health challenges. 
  • New: CDLAC Award Recommendations
    • The California Debt Limit Allocation Committee has released its final staff recommendations for Round 1 of the 2025 Qualified Residential Rental Project bond allocations. We at SV@Home would like to congratulate Affirmed Housing, Eden Housing, and Resources for Community Development on their awarded allocations — we look forward to seeing their projects move forward!

Resources

Access important resources and guidance for affordable housing development:

  • ICE Response Resources
    • At SV@Home, we are committed to providing developers with the resources necessary to effectively train staff on how to respond to potential ICE raids. Here we have compiled a list of available resources to help navigate these challenges.
  • New: Alfred Twu’s 2025 California Housing Legislation Highlights Bill Tracker
    • Alfred Twu’s 2025 California Housing Bill Tracker offers a detailed summary of key housing bills introduced this year, continuing their annual tradition of accessible, high-level overviews.
  • New: California Housing Partnership Legislative Budget + Legislative Advocacy
    • The California Housing Partnership advocates for state policies that expand housing resources. Their 2025 priorities include supporting key legislation which address topics such as; tax credits, housing rehabilitation, reinvestment, financial assistance, and transit-oriented developments.
  • New: Reducing the Complexity in California’s Affordable Housing Finance System
    • A new Terner Center analysis reveals that California’s fragmented affordable housing finance system significantly increases project timelines and costs—each additional public funding source adds four months and over $20,000 per unit. The report supports Governor Newsom’s proposal to consolidate housing functions under a single agency, while recommending further integration of tax credit programs to reduce inefficiencies and accelerate development.

Upcoming Events

Mark your calendars for these key industry events: