This week’s Sticks & Bricks newsletter highlights the City of San José’s recent Affordable Housing Developer Roundtable, where developers and public agencies discussed funding challenges, project prioritization, and strategies for navigating the evolving affordable housing landscape. We also feature key funding opportunities, resources for developers, and upcoming industry events, including San José’s upcoming NOFA, the Terner Center’s webinar on leveraging CalAIM for Permanent Supportive Housing, and the Fostering Promise Youth Housing Summit.

Navigating Uncertainty: Takeaways from the Affordable Housing Developer Roundtable

On March 17th, affordable housing developers, public agency leaders, and key stakeholders came together for the Affordable Housing Developer Roundtable, hosted by the Santa Clara County Office of Supportive Housing, the City of San José Housing Department, the Santa Clara County Housing Authority, and Destination: Home. The discussion focused on the evolving funding landscape, upcoming opportunities, and the challenges developers face in bringing affordable housing projects to fruition.

With shifting budget priorities, both Santa Clara County Housing Authority (SCC HA) and Santa Clara County Office of Supportive Housing (SCC OSH) emphasized their continued commitment to deeply affordable and supportive housing. However, looming funding constraints mean some tough decisions are ahead. SCC OSH, in particular, is preparing to close out the 2016 Measure A housing bond NOFA in Spring 2025, and while many projects remain in the pipeline, not all are securing the necessary tax credits and funding. This has led to discussions about how to reallocate resources to the most competitive projects—a process that could impact developments across the region.

The City of San José also provided updates on its NOFA process, with a new scoring matrix set to be released next week and two funding rounds planned for this year. Developers were encouraged to strategically refine and resubmit applications where needed, as the next major allocation of funds is expected in fiscal year 2027-2028.

Developers actively engaged throughout the event, posing insightful questions about funding stability, project selection, and regional collaboration. Many sought clarity on how projects will be evaluated moving forward and whether awarded projects could be restructured to improve competitiveness for both the city and county’s NOFA. The discussions also highlighted how cities like Mountain View are leveraging partnerships with the County to help fund affordable housing, offering a potential model for broader collaboration.

While uncertainty remains a constant in today’s real estate market—especially for affordable housing—roundtables like this offer a critical space to share information, align priorities, and problem-solve together. A huge thank you to the City of San José for hosting, to all the panelists for their expertise, and to the developers who showed up ready to engage. We look forward to continuing these important conversations in the months ahead.

Funding Opportunities

Explore these new funding sources for affordable housing development:

• New: San Jose NOFA – 2025 Update
  • The City of San José has announced its intent to issue a Notice of Funding Availability (NOFA) for new construction affordable housing. Projects that previously secured funding or were waitlisted will need to resubmit to be rescored, as the waitlist is being “refreshed”. More details on these funding opportunities will be available soon, and we encourage developers to stay informed as updates are released.
• New: Affordable Housing and Sustainable Communities Program NOFA
  • The California Department of Housing and Community Development (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. Projects must follow Housing First principles and complete construction within 12 to 24 months, depending on project type.
• 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. Applications open in January 2025 and require pre-application meetings.
• Multifamily Super NOFA
  • The 2025 Multifamily Finance Super NOFA offers approximately $382 million in funding across multiple programs, including MHP, VHHP, and IIG, with a new capitalized operating subsidy reserve for MHP projects. Applications are due by April 15, 2025, and 20% of funds ($96 million) will be reserved for wildfire-impacted areas, with a separate NOFA for Tribal housing projects.

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. We also emphasize the importance of informing tenants about their rights in these situations to ensure their protection and empower communities. Here we have compiled a list of available resources to help navigate these challenges.
• Novogradac Nonprofit Housing Developers Handbook
  • Novogradac provides resources, analysis, and training for affordable housing developers, with a focus on LIHTC, HUD funding, and tax credit compliance. Their latest offerings include the 2025 Nonprofit Housing Developers Handbook, insights on tax credit financing, and industry events covering affordable housing policy and investment strategies.
• Novogradac March 18, 2025: Renewable Energy Tax Credit Finance Series: Tax Reporting Tips
  • Michael Novogradac, CPA, and Novogradac partner Tony Grappone, CPA, cover the importance of investor review, state-return specific issues and ensuring compliance with new tax credit requirements under the Inflation Reduction Act.
• Terner Center 2025 California Legislative Preview: Rebuilding, Accelerating Production and Funding Affordable Housing
  • This article from the Terner Center provides an overview of key housing bills introduced in California’s 2025 legislative session, covering zoning reforms, tenant protections, affordable housing funding, and disaster recovery efforts. It also highlights Governor Newsom’s proposed creation of a statewide housing and homelessness agency to improve policy coordination.
• Terner Center: Implications of Further HUD Staffing Cuts on the Housing Sector
  • This article provides a critical analysis of the potential impacts of drastic HUD staffing cuts on affordable housing programs, highlighting the risks to rental assistance, homeownership support, and affordable housing construction. It also presents a case for a more strategic approach to workforce reductions, drawing from past HUD restructuring efforts that improved efficiency while maintaining key services.

Upcoming Events

Mark your calendars for these key industry events:

• April 22: Webinar: Leveraging CalAIM in Permanent Supportive Housing
  • The Leveraging CalAIM in Permanent Supportive Housing webinar will take place on April 22, 2025, at 10:00 AM PT. Hosted by the Terner Center, this session will explore how California’s CalAIM initiative enables housing providers to utilize Medi-Cal funding for housing and supportive services.

• April 29: ULI Housing the Bay Summit
  • The ULI San Francisco’s Housing the Bay Summit 2025 on April 29 will explore opportunities to boost housing production across the Bay Area, featuring keynote speaker Jim Heid and discussions on homelessness solutions, innovative production techniques, and transit-oriented developments
• May 8-9: Novogradac 2025 Affordable Housing Conference
  • The Novogradac 2025 Affordable Housing Conference will take place on May 8-9, 2025, at the Grand Hyatt San Francisco. This two-day event will bring together industry leaders, policymakers, and affordable housing professionals to discuss key trends, innovative solutions, and best practices in affordable housing development, finance, and preservation.
• May 29: Youth Housing Summit
  • The Fostering Promise Youth Housing Summit, coming May 29th, highlights innovative solutions and partnerships to support youth housing—discover new opportunities to make a lasting impact in your developments.