Proposition 123 - Persons Experience Homelessness (PEH)
The Division of Housing administers a portion of Proposition 123 funds to support the development and preservation of supportive housing for persons experiencing homelessness.
Fund Type: State
Eligibility
Eligible Project Types and AMI Levels
- Rental
- Supportive Housing
Eligible Activities
- New construction
- Property acquisition
- Rehabilitation of existing units
Award Terms
Funds are awarded as a grant or a loan.
Eligible Grantees
- Nonprofit developers
- Housing authorities
- Local governments
Eligible Borrowers
- For-profit developers
- Nonprofit developers
- Housing authorities
- Local governments
Loan Terms
- Interest rates: generally 2% for for-profits and 1% for non-profits
- Fees: none
- Term: typically commensurate with senior debt
- Repayment: typically a percentage of cash flow or up to a 40 year amortization. DOH may consider other loan structures such as deferred or performance loans.
Legislation
Resources
Creation of Supportive Housing RFA