Financing Structures

At CARING Housing Ministries, our staff understands the field of traditional finance, but we are also adept at a variety of financing structures.

Available programs include resident rental assistance subsidies, tax credits, economic development bonds, and mortgage grants and loans. All of these programs are in return for a 40-year to 55-year commitment to low-income housing. We are equally proficient at multiple-source financing for a single project, a growing trend that could prove tricky for a company less familiar with working through the numerous operational issues and regulatory requirements.

A wide variety of funds and grants are available through the U.S. Department of Housing and Urban Development (HUD) to assist with affordable housing. Federal monies are made available on the local and state level, but are not available to individuals and must be coordinated in partnership with an experienced organization like CARING Housing Ministries.

HUD Housing Assistance Payment (HAP) contracts and grants are used for project-based rental assistance, including Section 8 funds. The contract/grant provides subsidies, for affordable, privately owned, multifamily projects to low-income households.

The Tax Credit Allocation Committee (TCAC) administers federal and state low-income tax credit programs that were created to encourage investment in affordable rental housing for qualified applicants. Investors are for-profit corporations that receive tax incentives for their investments.

Limited Liability Corporations (LLC) and Limited Partnerships (LP) are formed by entities wishing to invest funds in affordable housing. Funds can come from tax credit investors, housing trust funds, financial gifts and government entities.

The California Housing Finance Agency (CalHFA) offers low, fixed-rate mortgage products, as well as down payment and closing cost assistance to provide affordable housing opportunities for developers and low- to moderate-income first-time home buyers.

Housing and Community Investment Department (HCIDLA) develops housing policy and supports safe and livable neighborhoods through the promotion, development and preservation of decent and affordable housing.

The California Department of Housing and Community Development (HCD) provides leadership, policies, and programs to preserve and expand safe and affordable housing opportunities and promote strong communities for all Californians.

The Community Development Block Grant program (CDBG) was created in 1974 and funded by HUD. This federal program provides funding directly to urban and rural areas for housing and community development for low to moderate income persons.

HOME funds offer the largest federal block grant for state and local governments. They help create affordable housing for low-income families through community development, outreach and program planning and are often used to supplement development and construction costs with multiple partners.