Affordable Housing NOFA

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Read this first.

The City uses a competitive process to award gap funding for multi-family housing developments. As you plan to apply for funding, staff from across City government will work together to make sure your development project meets the necessary requirements. If you have not done so already, reach out to the Public Private Partnership (P3) Team for initial guidance and support on your project.

Is your project ready to apply for City funding? In addition to working with P3, detailed information for the following must also be completed prior to submission:

  1. Mandatory completion of a Preliminary Plan Review (PPR) with BSEED
  2. Identification of Development Team including all partners, general contractor, architect, property manager, and environmental and other consultant(s)
  3. Initial defined project scope of work and costs
  4. Financial commitments for all Non-City sources of funding
  5. Environmental Phase I
  6. A financial proforma that includes anticipated unit rent amounts that comply with City affordable housing requirements

 

What’s the process like?

  • Review program requirements
  • Attend all HRD sponsored information meetings
  • Apply for funding
  • HRD review, scoring & ranking
  • Receive a decision & proceed to underwriting
  • Construction
  • Ongoing compliance

Step by Step

 

Review program requirements

 

Not all housing developments are eligible for funding. Those that are eligible for funding must meet the "requirements to receive funding" included in the most recently published Notice of Funding Availability (NOFA). Some of the requirements include:

  • Household Income and Rent Restrictions – Rental units assisted with City funds must be rented to households at or below 60% AMI, with at least 20% at or below 50% AMI. Must comply with Detroit’s Inclusionary Housing Ordinance.
  • Environmental Review – All funded projects must meet HUD Environmental Review Requirements and avoid any “choice limiting action.”
  • Davis Bacon & Related Acts – Applies to projects with certain types and quantities of federally assisted units.
  • Section 3 Requirements – Required for Federal-funded projects.
  • Construction & Rehabilitation – Must comply with all applicable building codes, zoning, housing safety standards, and all requirement so of Federal Funds.
  • Energy Standards – Projects that receive an award of City funding must comply with the Energy Standards as outlined in the NOFA.
  • Tenant Retention & Relocation Restrictions – Must comply with the Uniform Relocation Act (URA) for occupied properties.
  • Construction Costs – Requires a Trade Payment Breakdown (TPB) at application.
  • Build America, Buy America (BABA) Act – Must meet BABA requirements.

Attend all HRD sponsored information meetings

 

The Housing & Revitalization Department (HRD) hosts three mandatory meetings before the application deadline for each NOFA round:

  • Pre-Submission Meeting (public) – Overview of program and application process.
  • Pre-Application Project Review Meeting (individual) – For projects that are actively working with the P3 Team, the applicant must reference the NOFA to request a meeting to discuss details of the project for each application.
  • Program Compliance Information Meeting (public) – Various City teams present detailed information on application and compliance requirements.

Apply for funding

 

You’ll use Neighborly to apply.

If you’ve never used Neighborly before, here are the instructions on how to create an account.

 

Applications are typically open twice a year - January and July. If the application is not available on Neighborly, please check back during those months.

 

HRD review, scoring & ranking

 

  • Threshold Review – HRD verifies completeness of application and alignment with NOFA.
  • Commitment Level Documents – If the project passes Threshold, further documents will be required for submission via Neighborly.
  • Scoring & Ranking - HRD scores the project utilizing a standardized scoring process and ranks the projects by category.

Receive a decision & proceed to underwriting

 

You will receive an email with the final decision (usually 2-3 months after commitment documents are submitted). If you receive a Conditional Award, HRD will work with you to underwrite the project with a goal of seeking City Council approval and completing a financial closing.

Construction

 

A pre-construction meeting will cover project requirements such as:

  • Monthly construction review meetings
  • Submission of documentation
  • Reimbursement request process
  • Construction closeout process

Ongoing compliance

 

Provide the City with compliance reporting for the length of the loan:

  • Payment Processing
  • Tenant Income Verification
  • Physical Inspections
  • Environmental Continuing Obligations (if applicable)

 

Current NOFA Round

  • NOFA and Application Package
  • NOFA Application via Neighborly
  • Pre-Application Project Review Meeting Sign-Up 
  • HRD Pre-Submission Public Meeting Teams Link 
  • HRD Pre-Submission Public Meeting Presentation
  • HRD Pre-Submission Public Meeting Recording (coming soon)
  • HRD Program Compliance Meeting Registration 
  • HRD Program Compliance Meeting Presentation
  • HRD Program Compliance Meeting Recording (coming soon)
  • HRD Pro Forma