DATE: SEPTEMBER 30, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: VINCENT MONTGOMERY, PLANNING MANAGER
MONICA FLORES-PONCE, COMMUNITY DEVELOPMENT ANALYST
TITLE: 2025-2026 MULTI-FAMILY NOTICE OF FUNDING AVAILABILITY UPDATE RECOMMENDED MOTION:
No action required. Receive an Administrative Report on the 2025-2026 Multi-Family Notice of Funding Availability (NOFA).
DISCUSSION:
On June 24, 2025, the City of Salinas (City) released a 2025-2026 Notice of Funding Availability (NOFA) and a Multifamily Housing Application to solicit proposals for affordable housing developments. Approximately $8 million in funding was made available through a combination of Local Housing Trust Fund (LHTF), HOME Investment Partnerships (HOME), and HOME Community Housing Development Organization (CHDO) Set-Aside funds. These funds are intended to support eligible affordable housing projects consistent with the City’s housing and community development goals.
The City hosted a virtual informational workshop on July 9, 2025, to assist potential applicants. The application window closed on July 30, 2025. The City received five proposals for affordable housing developments throughout Salinas. The proposals included four proposed new developments and one rehabilitation project, the projects ranged in unit size from 40 to 88 total units, serving tenants whose income range from 30% to 80% of the Area Median Income. Some proposed amenities listed include centralized laundry room, community room, community kitchen, community garden planting beds, and computer lab. Below is a summary of the proposed projects.
Description
Use of Funds
# of Units
Affordability Level
Senior Housing
Construction
36 60% AMI
Multifamily Housing
Rehabilitation
40 60% AMI
Farmworker Housing
Construction
78 60% AMI
Multifamily Housing
Construction
88 60% AMI
Multifamily / Permanent Supportive Housing
Land Acquisition
67 80% AMI
Applications were evaluated through a ranking and rating process involving multiple City departments, including Community Development, Current Planning, and Public Works. Evaluations were based on the NOFA criteria, including project readiness, leveraging of other funding sources, affordability levels, amenities, alignment with current Neighborhood Revitalization plans, developer experience, and financial capacity. In addition to the interdepartmental and Housing Division review, one-on-one meetings with each applicant are actively being held to further understand the proposed projects and proposed development timelines.
City staff is also exploring identifying additional funding sources, such as Permanent Local Housing Allocation funds to provide additional gap financing to the proposed projects. Staff anticipates bringing funding recommendations to the Housing and Land Use Committee and City Council for consideration in November 2025, based on Council direction, the City would enter into funding agreements by December 2025.
ATTACHMENTS:
PowerPoint Presentation
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CITY OF SALINASHOUSING AND LAND USE COMMITTEE STAFF REPORTCITY OF SALINASHOUSING AND LAND USE COMMITTEE STAFF REPORT
CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE STAFF REPORT
CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE STAFF REPORT