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
  • Review & scoring
  • Receive a decision & work towards closing
  • Construction
  • Ongoing compliance

Step by Step

1. Review program requirements

Not all housing developments are eligible for funding. Those that are eligible must meet the requirements included in the Notice of Funding Availability (NOFA). Some of these 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. Extra points for 25% or more at or below 40% AMI. Must comply with Detroit’s Inclusionary Housing Ordinance.
  • Environmental Review Requirements – 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 as described in the NOFA.
  • Section 3 Requirements – Required for Federal-funded projects.
  • Construction & Rehabilitation Requirements – Must comply with all applicable building codes, zoning, and housing safety standards.
  • Energy Standards Requirements – Must meet Energy Standards outlined in the NOFA.
  • Tenant Retention & Relocation Restrictions – Must comply with the Uniform Relocation Act (URA) for occupied properties.
  • Construction Costs Requirements – Requires a Trade Payment Breakdown (TPB) at application.
  • Build America, Buy America (BABA) Act – Must meet BABA requirements.

2. Attend all HRD sponsored information meetings

The Housing & Revitalization Department (HRD) hosts three meetings before the application deadline:

  • Pre-Submission Meeting (public) – Overview of program and application process.
  • Pre-Application Project Review Meeting (individual) – Discuss details of your project.
  • Program Compliance Information Meeting (public) – Deep dive into compliance.

3. Apply for funding

You’ll use Neighborly to apply.

If you’ve never used Neighborly before, #click here for instructions on how to create an account.

#Apply online

Applications open twice a year — January and July. If the application isn’t visible, check back during those months.

4. HRD review & scoring

  • Threshold Review – HRD checks eligibility.
  • Commitment Level Documents – If you pass, you must submit further documents via Neighborly.
  • Scoring – HRD scores the project based on a matrix.

5. Receive a decision & work towards closing

You’ll receive an email with the final decision (usually 2–3 months after commitment documents). If you receive a Conditional Award, HRD will work with you toward closing.

6. Construction

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

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

7. Ongoing compliance

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

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