On July 1, 2016, Governor Brown signed SB 1206, the No Place Like Home (NPLH) Act of 2018, which dedicated up to $2 billion in bond proceeds to invest in the development of permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness.
Under the NPLH Program, funds may be used to acquire, design, construct, rehabilitate, or preserve permanent supportive housing for persons who are experiencing homelessness, chronic homelessness or who are at risk of chronic homelessness, and who are in need of mental health services. The bonds are repaid by funding from the Mental Health Services Act (MHSA).
The Los Angeles County Development Authority (LACDA) will function as the lead in requesting funding from HCD, releasing the Notice of Funding Availability (NOFA), loan underwriting, and asset management. The Department of Mental Health will provide supportive services to the tenants in the NPLH-funded units, monitor the provision of services, and approve eligible tenants.
The NPLH Program requires use of low-barrier tenant selection practices that prioritize vulnerable populations and offer flexible, voluntary, and individualized supportive services. Funded projects are expected to help meet the housing needs of their communities, provide local economic development opportunities during construction, and assist in the alleviation of any local blighting conditions.
The initial NPLH NOFA made available up to $207 million in capital funding for eligible permanent multifamily rental supportive housing units. Additionally, the LACDA is designated the NPLH NOFA as a public notice of a competitive request for the award of a combined total of 380 Project-Based Vouchers (PBVs) and Project-Based Veterans Affairs Supportive Housing (PBVASH) Vouchers. Eligible projects could apply for both NPLH Program capital financing and rental assistance from the LACDA(within LACDA’s jurisdiction). Applications for PBVs and PBVASH vouchers had to accompany a request for capital funding.
The LACDA and the Los Angeles County Department of Mental Health (DMH) are recommending a total of 60 projects for funding under the No Place Like Home (NPLH) Program NOFA 2019-1. A total of $207 million in NPLH funds was advertised, but approximately $432 million in project funding was requested.
Because the funding recommendations exceeded the amount of funding offered through this first NPLH NOFA, a pipeline of projects is being established. Project funding will be prioritized based on readiness, therefore, the anticipated tax credit application dates provided in the funding applications will be used to plan project financing.
Please note that the LACDA does not anticipate receiving NPLH funds until February 2020. Therefore, loans cannot be executed or funded prior to receipt of NPLH funds. All project sponsors must coordinate expected tax credit applications with the LACDA before making applications to the California Tax Credit Allocation Committee and/or California Debt Limit Allocation Committee to coordinate project timing needs and expected funded availability. Please contact Cindy Kha, LACDA Project Manager, at Cindy.Kha@lacda.org for information on project timing.
Please note that projects must start construction within one year of the recommendation of award of funds. An NPLH funding commitment may be used as leveraging when applying for additional funding, but project sponsors must apply for other leveraged financing within six months of the award recommendation.
The list of funded projects may be accessed at: NPLH NOFA 2019-1 - Funding & Rental Assistance Recommendations