Revolving Loan Fund Application
Release Date:
Table of Contents
APPLICATION OVERVIEW 1
APPLICATION SUBMITTAL INSTRUCTIONS 1
APPLICATION TIMELINE 2
TECHNICAL ASSISTANCE 3
ELIGIBLE APPLICANTS 3
PREFERENCES 3
TERMS 4
FEES 4
REVOLVING LOAN FUND APPLICATION 6
Applicant Information 7
Applicant Type 7
Development Team 7
Project Information 8
Loan Request 8
Additional Documents 9
Attachment A 12
Attachment B 13
APPLICATION OVERVIEW
The Murrieta Housing Authority Revolving Loan Fund (“RLF”) is a new revolving loan program funded by a Lasting Affordability Grant from Southern California Association of Governments (“SCAG”). These grant funds serve as seed funding, intended to be recycled over time as loans are repaid and reinvested into future projects. The long-term goal is to sustain a self-replenishing source of financing that supports the development and preservation of affordable housing in Murrieta for years to come.
The RLF program will be operated by the City of Murrieta (“City”) and will provide low-interest financing to developers, helping to make affordable housing projects in Murrieta more feasible and better positioned to secure funding for construction. By offering small, low-interest loans, the RFL will support early-stage project financing, bridging gaps that often delay or derail affordable housing development.
The City is issuing this Revolving Loan Fund Program Application (“Application”) with the objective of supporting the construction, acquisition, and/or rehabilitation of affordable housing units within City limits. The units will serve households earning up to 80 percent of the Area Median Income (“AMI”) for multi-family rentals and up to 120 percent AMI for homeownership programs.
Applicants who submit a complete application that meets the threshold criteria as outlined in this Application and the Program Guidelines (attached hereto) will be evaluated and awarded funding on a first-come, first-served basis until available funding is exhausted. However, the City reserves the right to prioritize select applications depending on one or multiple of the City’s funding priorities or preferences. In subsequent years, the City may adopt a ranking criterion.
The City reserves the right to allocate funding at its sole discretion.
APPLICATION SUBMITTAL INSTRUCTIONS
All materials and information related to this Application can be found within the Application. Submit completed and signed Application responses via email.
Deliverable to:
City of Murrieta
Housing Authority
1 Town Square
Murrieta, CA 92562
Electronic applications shall be submitted via a secured electronic document management and storage system (SharePoint, OneDrive, Dropbox, etc.) with email notification to [email protected].
An application fee $500 and underwriting fee of $500 is required. Failure to pay required application and underwriting fee will result in the application to be deemed non-responsive.
Submitted Applications must be complete and executed to be considered for review. When a section of the application does not apply or is to be determined, the Applicant should note “N/A” or “TBD” within the Application. Any submission that is not complete will be deemed non-responsive. Any attachments to the Application must be clearly named and labeled.
The City, at its discretion, reserves the right to change the requirements and policies described in the Application. The City is responsible only for what is expressly stated in the Application documents. Any additional Application information shall be made available to each person or organization via an Application distribution list and the City’s website. It is the applicant’s responsibility to confirm, prior to submission, that the application reflects the most recent requirements and policies. By submitting an Application, the applicant acknowledges receipt of all supplemental information, if applicable, that was emailed or posted on the City’s website. The City is not responsible for and shall not be bound by any representations otherwise made by any individual acting or purporting to act on its behalf if those representations conflict with the Application requirements.
The City retains the right to disqualify any application that is incomplete, disorganized, lacks required attachments, or includes inaccurate, inconsistent, misrepresented information, or other deficiencies. Forms provided in the Application must be used, and information provided otherwise may be disregarded at the discretion of the City. The City reserves the right to waive disparities in the Application response if the sum and substance of the Application is present. The City also reserves the right to terminate this Application at any time without prior notice. threshold criteria
In addition to submitting a complete application, Applicants must ensure their proposed projects meet the minimum threshold criteria as outlined in this Application and within the Program Guidelines (attached hereto).
Applicant Experience
Eligible Applicants include nonprofit, public, and private affordable housing developers’, non-profit organizations, public entities, social service agencies, faith-based groups, and other community groups with or partnering with an experienced affordable housing developer. Developers must have prior experience owning and/or operating a Project located within areas served by the Southern California Association of Governments or San Diego Association of Governments.
Applicants must demonstrate the ability to:
Construct, acquire and/or rehabilitate affordable housing developments.
Operate and maintain affordable housing development throughout the Project’s life cycle.
Adhere to all programs’ regulatory, statutory, and funding requirements and guidelines.
Leverage other funding sources or present plan to leverage other funding sources.
Project Eligibility and housing types may include but are not limited to the following:
New construction of affordable multi-family rental housing Conversion of non-residential buildings to affordable rental housing Acquisition and rehabilitation of affordable rental housing New construction of affordable ownership housing, including condominiums, for first-time homebuyers An affordable housing component of a mixed-use development Eligible Uses
RLF funds may be used for the following eligible purposes:
Site acquisition and preparation
Predevelopment expenses, including but not limited to:
Carrying charges and financing fees
Preliminary title reports
Architect design and engineering/soils work
Environmental analysis and reports
Legal and financial consultants
Planning and permitting fees
Appraisal and market study costs
Applicant and consultant fees to secure additional project financing Short-term construction loans or down payment assistance for first time homebuyers for ownership housing when RLF loan repayment can be reasonably expected within 5 years, following home sales and issuance of income restricted Funds may not be used for agency operating expenses, support or social services, or development reserves.
Geographic Requirements
Projects must be located within infill areas of Murrieta. Infill development is defined as an area that consists of unused or underutilized lands, is within existing development patterns, and is accessible to destinations and services by transit, walking, or bicycling. Projects funded by repayments of loans that originated from the REAP 2.0 grant also have this requirement. Payments of principal on REAP 2.0 loans will go towards infill development in perpetuity. For any loans to affordable components of mixed-use developments, the development must allocate at least 65% of its floor area to residential use.
APPLICATION TIMELINE
Below is the timeline for the Application. The City reserves the right to modify any of the dates in the schedule as necessary.
Date
Event
March/April 2026
Release of Application
+60-90 days from submission
Threshold Review and Underwriting
90-120 days from submission
Negotiation and conditional award
TECHNICAL ASSISTANCE
All communications regarding this Application and any requests for clarification must be submitted to the City via email at [email protected].
PREFERENCES
Preferential consideration will be provided for affordable housing developments that meet the following conditions:
Proposed development is located on City-owned land
Proposed development is located on a housing sites identified in City Housing Element The development creates or constructs new affordable units: New units may include new construction developments, rehabilitation of existing unrestricted housing that will be converted to affordable, or conversion of existing facilities to affordable housing units.
Proposed development has site control and has begun the entitlement process (with a Pre-Application and/or Development Plan Permit) or has received entitlements (such as approval of a Development Plan Permit).
TERMS
Interest: 5 percents simple
Terms: 60 months with two six (6) month extension
Selected applications will be underwritten per guidelines outlined in the Revolving Loan Fund Guidelines (Attachment B).
FEES
The Owner of any development funded through this Application will be required to pay any and all relevant fees that may be imposed by the City, and such fees may be enacted or amended from time to time, per the City’s fee schedule and Program Guidelines. These costs should be factored into the proposal’s operating pro forma.
Application fee: $500
Underwriting fee: $500
Loan Origination fee: One percent (1%) of total RLF loan award
REVOLVING LOAN FUND APPLICATION
Applicant Information
Name of Applicant:
Street Address:
City, State, Zip Code:
Phone/Email:
Applicant Primary Contact:
Phone/Email:
Applicant Type
Select one of the following.
Nonprofit developer
For-profit developer
Other nonprofit organization
Public entity
Social service agency
Faith-based group
Other community group
Other (please describe)_________________
A Limited or General Partnership
Development Team
Provide the name and contact information of your proposed development team. If a role has not been selected at the time of application, note “TBD.” Role
Contact Name/Title
Phone/Email
Address
Developer
Architect
General Contractor
Development Consultant
Project Information
Project Type (select all that apply):
Multi-family rental For-sale homeownership New construction Acquisition/ rehab of existing rental housing Conversion of market rate to affordable rental
Conversion of non-residential building to rental housing Other (please describe): ________________________________________________ Project Name:
Street Address:
City, State, Zip Code:
Parcel Number(s):
Project Zoning:
Evidence of Site Control?
Yes No
If no, what is the plan and timing to obtain site control? Loan Request
Total Requested Loan Amount:
Purpose of Loan (Check all that apply):
Site Acquisition and preparation
Predevelopment Expenses
Loan Repayment
Engineering and Design
For-sale ownership housing
Other (please describe): ____________________
Additional Documents
As part of the complete Application, the following supplemental documents must be submitted. If a listed document is not available at the time of submission, the Applicant must provide a written timeline indicating when the document will be available.
Applicant Experience: Provide a one-page resume summarizing the Applicant’s development experience, organizational background, and relevant past experience, including experience developing, owning, and operating affordable projects located in areas served by the Southern California Association of Governments or the San Diego Association of Governments. Include an organizational chart showing the ownership and management structure (excluded from one page limit). Optional resumes for key development staff assigned to the project may be included and will not count toward the Applicant resume limit.
Applicant/Sponsor Feasibility: Submit the two most recent years of audited financial statements for the Applicant. If audited financials are not available, provide year to date (“YTD”) financial statements accompanied by a signed certification attesting to their accuracy and completeness.
Appraisal: Provide an appraisal establishing the value of the property. If an appraisal is not yet available, indicate the expected completion date of the appraisal.
Development Forms:
Multifamily Rental Projects: Submit a detailed development budget, sources and uses statement, first year operating budget, and a 55- year pro forma.
Homeownership Projects: Submit a detailed development budget, sources and uses statement, affordability and sales assumptions, and a project pro forma reflecting anticipated home prices and buyer income ranges.
Development Narrative: Provide a narrative (no more than 2 pages) that provides the following:
Project description: location, access to community amenities and services, site characteristics, and existing uses Development details: proposed design, number and mix of units, income targeting, population to be served, proposed amenities or sustainability features, any known site, environmental, entitlement, or market challenges and strategy to address them.
Financing plan: proposed financial sources, use of City’s RLF dollars, strategy for repayment of City’s RLF dollars.
Alignment with City’s housing goals
Design and Implementation: Provide preliminary site plan(s) and floor plans Enforceable Commitments: Provide status of enforceable commitments and evidence of any enforceable commitments secured.
Evidence of Site Control: Provide evidence of site control (e.g. purchase and sale agreement, option agreement, or deed). If site control has not been established, provide a plan to establish site control and anticipated date of site control.
Environmental Review and Related Reports: Provide a Phase I environmental assessment and any related environmental or engineering studies (e.g. soils report, lead and asbestos survey, termite report, residual pesticides, water damage, noise and traffic study, etc.) If any reports are not yet available, specify the estimated completion date and identify any known or suspected environmental issues.
Market Study: Submit a market study demonstrating demand for the proposed housing type within the project’s market area. If unavailable, provide an estimated completion date and a written justification demonstrating the market need for the project.
Preliminary Title Report: Provide a current Preliminary Title Report identifying all liens, easements, or other encumbrances affecting the property.
Project schedule: Complete Attachment A- Project Schedule, detailing key milestones.
Rehabilitation Estimate: For rehabilitation projects, provide a Physical Needs Assessment or equivalent report conducted by an independent third-party assessor.
Relocation Plan (if applicable). If temporary or permanent relocation is anticipated, submit a Relocation Plan consistent with applicable relocation laws. If not yet available, provide the projected completion date.
Supportive Services: For projects that include supportive services, provide a support services plan and letter of intent (“LOI”) from service providers. If unavailable, provide a narrative of services to be provided and proposed service providers.
Attachment A
Project Schedule
Applicant Name: ________________________ Development Name: ____________________ Milestone
Date
Site Control
Site Acquired
Permitting and Entitlements
Site Plan Review
Grading Permit
Building Permit
Project Financing
Construction Financing: Enforceable Commitment
Permanent Financing: Enforceable Commitment
Other Loans and Grants
Type/Source ____________________________________________ Application Submission
Type/Source ____________________________________________ Application Submission
Type/Source ____________________________________________ Application Submission
Type/Source ____________________________________________ Application Submission
Type/Source ____________________________________________ Application Submission
Project Closing
Construction Start
Placed in Service
Attachment B
Guidelines February 2026
[Month/Year]
City of Murrieta
February 2026
City of Murrieta
0 February 2026
City of Murrieta