Advisory Board: Affordable Housing Program Manager
Meeting Date: April 29, 2026
Subject: FY 2026/27 CDBG-Housing, HOME, In-Lieu, and Measure X Housing Funding Allocations
Presenter: Kristin Sherk, Affordable Housing Program Manager
Contact: (925) 655-2889
Recommendations:
1. CONSIDER applications for FY 2026/27 Community Development Block Grant (CDBG)-Housing projects as recommended by staff and RECOMMEND allocations for CDBG-Housing funds.
2. CONSIDER applications for FY 2026/27 HOME Investment Partnership Program (HOME) projects as recommended by staff and RECOMMEND allocations for HOME funds.
3. CONSIDER applications for FY 2026/27 Inclusionary In-Lieu Fee Funds (In-Lieu) projects as recommended by staff and RECOMMEND allocations for In-Lieu funds.
4. CONSIDER applications for FY 2026/27 Measure X Housing Fund (Measure X) projects as recommended by staff and RECOMMEND allocations for Measure X funds.
5. DIRECT the Department of Conservation and Development to prepare a staff report for the Board of Supervisors on the Committee’s recommendations. The HOME and CDBG-Housing staff report will be submitted together with funding recommendations for all other CDBG categories and considered by the Board of Supervisors on May 19, 2026. The In-Lieu and Measure X funds may be considered by the Board of Supervisors at a separate meeting in either May or June 2026, at the discretion of staff.
Background:
The purpose of this memorandum is to transmit staff recommendations for CDBG-Housing, HOME, In-Lieu, and Measure X funds. The affordable housing Notice of Funding Availability (NOFA) was published on September 12, 2025 and the application became available on October 14, 2025. County staff hosted a “Technical Assistance Meeting” to provide information to prospective applicants on the overall application process on October 22, 2025. Twenty-two applications were submitted by the December 11, 2025 application due date, one of which has since been withdrawn.
Available funding
Annual Allocation - CDBG and HOME Programs: The U.S. Department of Housing and Urban Development (HUD) provides the County with CDBG Program and HOME Program funds on an annual formula basis. The annual grant amounts are dependent on an approved federal spending budget, or appropriations, for each federal fiscal year. On February 3, 2026, a full-year Continuing Resolution (CR) was approved so that federal funds will continue through the rest of the federal fiscal year. The County’s FY 2026/27 CDBG and HOME grant allocations were announced by HUD on April 3, 2026. The County’s CDBG grant allocation is $4,724,092, which is $3,065 less than the County received in FY 2025/26. The County’s HOME Program allocation is $2,927,850.33, which is $19,114.86 less than the County received in FY 2025/26.
CDBG Program - Housing Category: The primary purpose of the CDBG Program is to develop viable urban communities by providing decent housing, a suitable living environment and expanded economic opportunities principally for persons of low income. Consistent with Board funding guidelines, 45 percent of the County’s annual CDBG allocation may be used for affordable housing projects. CDBG funds can be used only for projects that benefit Urban County residents. The Urban County is defined as all of unincorporated areas and the incorporated cities of Contra Costa County except for the incorporated cities of Antioch, Concord, Pittsburg, and Walnut Creek. CDBG-Housing funds may be used for acquisition, rehabilitation, and down-payment assistance loans. CDBG-Housing funds cannot be used for new construction of housing.
Based on the calculations described above, there is $2,125,841 available for CDBG-Housing projects from the annual allocation. In addition, there is $2,586,210 estimated available in the CDBG Housing Development Assistance Fund (HDAF), which is a combination of unallocated CDBG funds from prior years, and CDBG program income received. Therefore, a total of $4,712,051 of CDBG funds is estimated to be available for CDBG-Housing eligible projects.
A total of five CDBG-housing applications were received requesting a total of $5,377,185. Staff determined that the Orbisonia Village funding request of $2.1 million is ineligible for CDBG funds. Project specific information for each CDBG-Housing application may be found in Attachment A: FY 2026/27 Housing Application Staff Reports. Staff funding recommendations may be found towards the end of this report.
HOME Program: The purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very-low- and low-income-income households. Funds are allocated to eligible participating jurisdictions and HOME consortia on a formula basis by HUD. Contra Costa County as the Urban County representative, and the Cities of Antioch, Concord, Pittsburg, and Walnut Creek, are a Consortium and considered by HUD as the Contra Costa County HOME Consortium for purposes of participation in the HOME Program. HOME funds may be used for projects to acquire, rehabilitate, and construct housing for lower-income households in the Consortium area. HOME funds cannot be used for half-way housing or student housing.
The allocation of HOME funds in FY 2026/27 is $2,927,850.33 with 10 percent set aside for Program Administration, leaving $2,635,065.30 available for projects. In addition, there is an estimated $940,000 available in HOME HDAF, which is a combination of unallocated HOME funds from prior years, and HOME program income received. Therefore, there is a total of $3,575,065.30 available for HOME eligible projects.
A total of four HOME applications were received requesting a total of $9,865,185. Project specific information for each HOME application may be found in Attachment A: FY 2026/27 Housing Application Staff Reports. Staff funding recommendations may be found towards the end of this report.
In-Lieu Funds: Every residential project in unincorporated Contra Costa County consisting of five units or more is subject to the County’s Inclusionary Housing Ordinance (IHO) Chapter 822-4 of the County Ordinance Code. The IHO promotes affordable housing by requiring 15 percent of units in the development to be affordable units. Alternative methods of compliance include the payment of a fee in-lieu of building affordable units on-site, building off-site, or any other feasible alternative. The in-lieu fees are approved and conditioned as part of the project’s land use entitlements, paid at the time of building permit issuance, and deposited in a fund with DCD. These funds may only be spent on new affordable housing construction in unincorporated Contra Costa County.
The FY 2026/27 NOFA included the Inclusionary In-Lieu Fee Fund available to support new construction of affordable units in unincorporated Contra Costa County. There is $960,000 in recaptured In-Lieu funds available to allocate to eligible projects. As of 2026, the Inclusionary In-Lieu Fee available balance is $1,216,295.
A total of three In-Lieu applications were received requesting a total of $2,871,440. Project specific information for each In-Lieu application may be found in Attachment A: FY 2026/27 Housing Application Staff Reports. Staff funding recommendations may be found towards the end of this report.
Measure X Funds: Measure X is a countywide 20-year, ½ cent sales tax approved by Contra Costa County voters on November 3, 2020. Collection of the tax began on April 1, 2021. The ballot measure language stated that the intent of Measure X is “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.”
On November 16, 2021, the County Board of Supervisors approved the allocation of Measure X funding to establish a new funding source for housing-related activities, now termed the Measure X Housing Fund (MX Housing Fund). Eligible projects under the Measure X Housing funds to be distributed through the Affordable Housing Program include:
• Affordable housing for populations earning up to 80 percent Area Median Income (AMI), with a focus on ≤50 percent AMI.
• Acquisition, pre-development, construction, rehabilitation, and operating and reserve funds.
• Innovation pilot programs and capacity building technical assistance for affordable housing activities (acquisition, pre-development, construction, rehabilitation, and operating and reserve funds).
• Grant writing for affordable housing activities (acquisition, pre-development, construction, rehabilitation, and operating and reserve funds).
The allocation of Measure X funds for affordable housing development projects FY 2026/27 is $7,880,689. In addition, there is $2,496,750 in Measure X funds that staff recommends to recapture and be available to reallocate. Therefore, there is a total of up to $10,377,439 available for Measure X eligible capital development projects.
A total of 16 Measure X applications were received requesting $56,673,566. The 3436-3440 San Pablo Dam Road project has since withdrawn their Measure X application request, leaving 15 Measure X applications totaling $51,337,506 in Measure X requests. Project specific information for each Measure X application may be found in Attachment A: FY 2026/27 Housing Application Staff Reports. Staff funding recommendations may be found towards the end of this report.
Other Funds: The Summer Lakes Project was approved by the County prior to the annexation by the City of Oakley. As part of the annexation, the County and the City of Oakley agreed that the $3,333 affordable housing fee charged for each new home would be collected by the City of Oakley and transferred to the County. The agreement requires that the funds be used in East Contra Costa County and that the County consider reserving 20 percent of the fees for affordable housing development in the City of Oakley. As of 2026, the Summer Lake Affordable Housing (SLAH) available balance is $913,438 for affordable housing projects located in East Contra Costa County.
Applications Received and Evaluated: County staff evaluated 21 applications for possible funding recommendations. The following attachments summarize the housing applications received:
• Attachment A: Project Staff Reports for Housing Development Applications
• Attachment C: Housing Application Supplemental Information
Application Process and Evaluation Criteria
Each applicant was required to submit an application describing the proposed project, need and target population, steps necessary to carry out the project, and proposed budget. Applications are reviewed by staff for completeness and eligibility and against criteria listed below. Applicants are also interviewed by staff to respond to or clarify any issues related to the application. The Affordable Housing Guidelines set forth criteria by which projects will be scored and ranked including the following (as applicable):
Consistency with Priorities Established in the Consolidated Plan and the Affordable Housing Program Guidelines - The project meets goals and strategies of the Consolidated Plan as well as the County Affordable Housing Program Guidelines.
Eligibility in Respect to Federal Regulations - The proposed use of CDBG and/or HOME funds is consistent with federal regulations and is determined to be an eligible activity and meets a CDBG National Objective (if applicable).
Target Population Threshold Standards - Each proposed project meets one of the following requirements: a) Long-term affordable rental housing which is either permanent or transitional housing in nature; or b) Homeownership activities that provide long-term affordable ownership housing that qualifies as housing under federal regulations; or c) Special needs housing, including permanent supportive housing, group homes or emergency shelters. In addition, per the Affordable Housing Program Guidelines - HUD:
• 100 percent of County assisted units at 80 percent AMI,
• 20 percent of County assisted units at 50 percent AMI.
• County policy further establishes a goal of 100 percent of assisted units reserved for households at or below 50 percent AMI and 10 percent of units affordable at 30 percent AMI.
Financial/Cost Analysis - Total project costs are reasonable and adequate to carry out the development in a reasonable timeframe. The budget is well thought out with reasonable assumptions based off recently completed housing development projects in the County.
HOME Cost Allocation and Subsidy Layering Review - Cost allocation is required in all HOME rental or homebuyer projects where fewer than 100 percent of units are HOME-assisted; and/or which less than 10 percent of the space is residential (a mixed-use project). The maximum amount of County funds is also limited to the total amount of funds necessary (when combined with other financing and assistance) to enable the project to be developed and to operate in compliance with all federal and/or state/local requirements. Before committing funds to a project, the County must evaluate the application to determine that there will be a reasonable level of profit or return on the developer’s investment in a project and that no more County funds are invested, alone or in combination with other governmental assistance, than is necessary to provide quality affordable housing that is financially viable for the entire affordability period.
Project Readiness and Timeliness - All parts of the project are in place or can be in place within a specified period of time. Project can be carried out and completed in a timely manner. Particular attention is given to these criteria due to specific HUD timeliness requirements.
Developer Experience/Capacity - The developer and development team must have demonstrated experience and capacity for completing projects similar to what is proposed in terms of scope, size, budget, financing structure, ability to obtain financing, and schedule. The developer, or the housing management entity that the developer contracts with, must also have a demonstrated capacity for managing completed projects similar to what is proposed in terms of scope, size, operating budget, and services.
Project Location - Unincorporated address, geographic location/equity, proximity to public transit, and proximity to grocery, farmers’ market, or healthcare.
Property Management Experience/Capacity - The proposed asset/property management agent must have demonstrated experience and capacity to manage a project of a similar size, scope, and funding source restrictions as being proposed for funding. Copies of annual monitoring compliance audits and monitoring letters issued by local, state, or federal agencies are required to be submitted as part of the application and a part of the review process.
Past Performance - Rate of progress toward completing contractual milestones, ability to overcome and avoid past problems. Inaccurate or incomplete performance reports, unresolved audit findings, delays in or failure to submit required reports, persistent difficulties with payment request process, failure to correct significant problems.
Each application received is ranked based on the scoring criteria. Details of the scoring may be found Attachment B -FY 2026/27 Project Scoring by Funding Source.
Application Evaluation Analysis: The reviewed projects show a wide range of development types and cost profiles across surface-parking, podium-parking, and major rehabilitation categories. Surface-parking new construction projects show total development costs ranging from approximately $40 million to $83 million, with average costs of $60.1 million, translating to an average $756,864 per affordable unit and $524.57 in hard costs per residential square foot. A moderate reliance on County funds required in the project is noted in surface-parking new construction projects with an average of 10 percent compared to six percent in podium-parking new construction projects. Proposed podium-parking new construction projects are generally larger in size and more expensive, from roughly $30 million to $139 million, and average $76.8 million overall, with affordable-unit costs averaging $824,362 and hard costs of $533.92 per square foot. Major rehabilitation and resyndication efforts, including Lakeside Apartments and Trinity Plaza, average significantly lower costs at $42.6 million, or about $482,119 per affordable unit, with hard construction costs of $141.82 per square foot.
Loan and Contract Terms and Requirements: The County has developed standard terms for its funding awards that will apply to the projects moving forward, complying with the federal and/or local program requirements, and based on the body of experience in administering federally-funded awards over the past decades in the County. The loans will carry the following terms:
CDBG/HOME
Interest: Three percent simple interest
Term: 20-year HOME term followed by a 35-year County term.
Payments: Annually due from surplus cash or residual receipts. Due in full upon sale or transfer of property or end of term.
In-Lieu, Measure X, and SLAH- Construction
Interest: Three percent simple interest
Term: 55 years.
Payments: Annually due from surplus cash or residual receipts. Due in full upon sale or transfer of property or end of term.
Measure X and SLAH - Predevelopment
Interest: Three percent simple interest
Term: 5 years.
Payments: Outstanding principal and interest due at end of 5-year term or may be replaced with a new promissory note meeting the Measure X/SLAH - Construction terms above.
The County will be in a co-equal lien position with a City loan (if applicable). Due to the high construction costs and limited revenue from the restricted rents, the total amount of the financing provided to the project will likely exceed the value of the completed project. Even though the equity investment is substantial compared to the amount of long-term debt, the partnership agreement will have numerous safeguards of the investor’s equity. These safeguards essentially subordinate the County’s debt to the investor’s equity. Therefore, the County funds may not be fully secured through the value of the property.
Legal documents for each project will include, but are not limited to, a loan agreement, a promissory note, a deed of trust and security agreement, a regulatory agreement, an intercreditor agreement, and a subordination agreement. Other documents that may be required include an assignment and assumption agreement and one or more estoppel agreements.
Developer Fee Requirements: For projects that will be financed, in part, with 9% competitive Low Income Housing Tax Credits, the total Developer Fee payments shall not exceed the amount that may be included in project costs allowed by the TCAC program. The maximum cash fee to the developer payable from development sources shall be in an amount approved by the County and may not exceed $2.5 million for general affordable projects and $2.8 million for special needs projects. Developer Fees in excess of the cash fee approved by the County must be deferred or contributed to the development as sponsor equity.
For projects that will be financed, in part, with 4% Low Income Housing Tax Credits, the total Developer Fee payments shall not exceed the amount that may be included in project costs allowed by the TCAC program The maximum cash fee to the developer payable from development sources may not exceed $2.5 million for general affordable housing projects or $2.8 million for special needs projects. Developer fees in excess of the cash fee approved by the County must be deferred or contributed to the development as sponsor equity.
For both 9% and 4% tax credit projects, if there are insufficient development sources to pay the cash fee in the amount approved by the County, the County may agree that such unpaid portion of the cash fee may be paid as an operating expense prior to repayment of the County Loan from Residual Receipts. Any deferred developer fee may only be paid from the portion of residual receipts the County designates as "Borrower's Share of Residual Receipts".
Cross-Cutting Federal Requirements: CDBG and HOME funds are governed by a complex set of federal regulations. All projects funded with these funds must comply with these federal crosscutting requirements:
Environmental Review: Prior to final project approval and execution of loan documents and initial disbursement of funds, the required environmental review under the National Environmental Policy Act (NEPA) must be completed.
Relocation (Uniform Relocation Act): Federal relocation laws will apply to projects funded by CDBG and/or HOME. These laws are applicable to projects that will temporarily or permanently displace current business or residential occupants. Required relocation assistance and benefits can add substantially to the project cost. Relocation plans are required and must be submitted to DCD for all acquisition/rehabilitation projects and for new construction projects where there is potential for temporary or permanent relocation. All developers must contract with a relocation consultant unless the developer can demonstrate existing staff have relocation expertise.
Davis Bacon Federal Prevailing Wages: Davis Bacon requirements are triggered when there are more than 11 HOME-assisted units. CDBG triggers Davis Bacon in housing projects of eight or more total units. The construction bid package must include the current federal wage determination. If Davis Bacon is triggered, the applicant will be required to conduct employee interviews during construction. All necessary documentation to ensure compliance with federal prevailing wage will be required.
Nondiscrimination and Equal Access: No person shall, on the grounds of race, color, national origin, religion, or sex be excluded, denied benefits, or subjected to discrimination under any project funded with County funds. This includes employment and contracting, as well as marketing and selection of residents.
Procurement and Section 3 hiring: Project Sponsor, general construction contractor, and subcontractors must comply with federal procurement and local hiring requirements. All procurement activities must be coordinated with County staff.
Build America Buy America: The Build America Buy America Act, enacted as part of the Infrastructure Investment and Jobs Act on November 15, 2021, established a domestic content procurement preference for all Federal financial assistance obligated for infrastructure projects after May 14, 2022. Covered infrastructure are defined as buildings and real property (including housing projects). All iron, steel, manufactured products, and construction materials used in covered infrastructure projects must be produced in the United States.
Fair Housing Management and Marketing Plan: Prior to CDBG or HOME loan execution, Project Sponsor will be required to submit for County approval a detailed marketing plan, sample lease, and tenant selection criteria. A Language Assistance Plan describing how non-English speaking tenants and prospective tenants will be served must be included in the Marketing Plan.
Lead-Based Paint: Testing and abatement of lead-based paint in rehabilitation projects built prior to 1978. If the building is built prior to 1978, the building(s) is required to be tested prior to project commencement as a requirement of the NEPA environmental review process and must follow the federal guidelines, which require notifications to prospective residents of potential lead-based paint hazards among other requirements.
State/Local Cross Cutting Requirements:
CEQA Environmental Review: An award of In-Lieu and/or Measure X funds is not considered an action under CEQA. The Responsible agency would be the local jurisdiction where the project funded with Measure X is located.
Competitive Bidding: County policy requires competitive bidding of all construction and professional service contracts arising from the use of funds under a competitive NOFA. Bid documents must be coordinated with County staff.
Relocation/Anti-Displacement: DCD makes all efforts to minimize displacement of current occupants of proposed housing development projects and asks that applicants for funds minimize displacement. Federal, State or Local relocation laws will apply to projects recommended for funding, as applicable.
State Prevailing Wage: Measure X funds are not necessarily exempt from the payment of State Prevailing Wages. It is the developers’ responsibility to determine if state prevailing wage requirements apply to the proposed project and to budget accordingly.
Staff Funding Recommendations
Staff recommends funding three new construction rental projects, two rehabilitation rental projects, and one farmer worker manufactured home project. In addition, staff recommends funding one ongoing owner-occupied housing rehabilitation program and one first-time homebuyer down-payment assistance program presented below. These projects have met all threshold requirements and are ranked in sequential order from the highest to the lowest score.
$417,2177 of CDBG funds is available from the Housing category to fund projects in other CDBG eligible categories. Staff recommends making the $417,211 available to the other CDBG categories, including Infrastructure and Public Facilities, to ensure that all available CDBG funds are allocated to eligible projects carried out during FY 2026/27.
See Attachment B: FY 2026/27 Project Scoring - By Funding Source for specific details.
1. Rumrill Commons, San Pablo
a. % of Points: 79%
b. Previous Allocation: $1,650,000 PLHA
c. Staff Funding Recommendation: $2,500,000 Measure X
d. Project Delivery Costs: $0
2. 949 Moraga Road, Lafayette
a. % of Points: 76%
b. Previous Allocation: Not applicable
c. Staff Funding Recommendation: Up to $6,111,718 Measure X
d. Project Delivery Costs: $0
3. Orbisonia Village, Bay Point
a. % of Points: 76%
b. Previous Allocation: $5,318,337 In-Lieu, Measure X, and PLHA
c. Staff Funding Recommendation: $1,000,000 In-Lieu
d. Project Delivery Costs: $0
4. Lakeside Apartments, Concord
a. % of Points: 75%
b. Previous Allocation: $7,000,000 HOME
c. Staff Funding Recommendation: $2,000,000 HOME
d. Project Delivery Costs: $0
5. Harbor Pointe, Discovery Bay
a. % of Points: 65%
b. Previous Allocation: Not applicable
c. Staff Funding Recommendation: $216,295 In-Lieu, $1,852,465 Measure X, $413,438 SLAH
d. Project Delivery Costs: $0
6. Trinity Plaza Apartments, Richmond
a. % of Points: 61%
b. Previous Allocation: Not applicable
c. Staff Funding Recommendation: $2,500,000 CDBG and $1,500,000 HOME
d. Project Delivery Costs: $40,000
7. Casita Phase II, Bryon
a. Previous Allocation: Not applicable
b. Staff Funding Recommendation: $500,000 SLAH
c. Project Delivery Costs: $0
8. Healthy Homes, Urban County
a. Previous Allocation: Ongoing Program
b. Staff Funding Recommendation: $604,840 CDBG
c. Project Delivery Costs: $0
9. RNHS Rehab #6, Richmond
a. Previous Allocation: $1,336,198 over four previous fiscal years
b. Staff Funding Recommendation: $350,000
c. Project Delivery Costs: $0
10. FTHB, Urban County
a. Previous Allocation: $800,000 FY 2025/26
b. Staff Funding Recommendation: $800,000 CDBG
c. Project Delivery Costs: $0
Awarding funds to the above projects will facilitate each recommended project moving forward to a construction start in a timely manner. By securing local gap financing, each project may now apply for other funding from the State of California in 2026 or 2027 and score more competitively for programs including but not limited to Affordable Housing Sustainable Communities, Infill Infrastructure Grant, and Low-Income Tax Credits (either four percent or nine percent).
Contingencies for Approval: Each of the housing applications recommended for federal or local funds have contingencies related to timely expenditure of funds. Details of each contingency for a specific project can be found in Attachment A: Housing Application Staff Reports. If a project’s expenditures are not completed in a timely manner, the funds may be recaptured and awarded to another project able to meet the federal timeliness requirements, including but not limited to the HOME Program requirements. A HOME commitment is considered executed HOME legal documents and are only eligible to be completed if there is a reasonable expectation that construction will begin in 12 months from commitment and not until all necessary financing has been secured, a budget and schedule established, and underwriting and subsidy layering are complete.
Applications Not Recommended for Funding:
Projects not recommended for a funding award are generally consistent with the County’s priorities to produce new affordable housing units, preserve existing affordable housing stock, or increase the supply of permanent supportive housing for special needs populations. Each project’s proposed timeline is not as timely as the applications staff is recommending funding awards. However, in the County’s experience, projects seeking multiple other competitive funds rarely meet their initial timeframes. Due to the competitiveness of each funding source, the limited County funds are being recommended for other more timely projects.
Attachments
• Attachment A: FY 2026/27 Housing Application Staff Reports
o 949 Moraga Road
o Bayline Apartments
o Bob Dabney Plaza
o Casita Project, Phase II
o Downtown San Pablo
o EC Plaza - Parcel C East
o Harbor Pointe
o Healthy Homes
o La Loma Senior
o Lakeside Apartments
o Las Deltas Duplexes
o Orbisonia Village
o Park Street Apartments
o RNHS Rehab No. 6
o Rumrill Commons
o San Pablo Avenue Apartments
o TBV Villas at Renaissance
o The Riveter Phase 1 and 2
o Trinity Plaza Apartments
o Veterans Affordable Housing
• Attachment B: FY 2026/27 Project Scoring Table(s) by Funding Source
• Attachment C: Housing Applications Supplemental Responses
o 949 Moraga Road
o Bayline Apartments
o Bob Dabney Plaza
o Casita Project, Phase II
o Downtown San Pablo
o EC Plaza - Parcel C East
o Harbor Pointe
o La Loma Senior
o Lakeside Apartments
o Las Deltas Duplexes
o Orbisonia Village
o Park Street Apartments
o RNHS Rehab No. 6
o Rumrill Commons
o San Pablo Avenue Apartments
o TBV Villas at Renaissance
o The Riveter Phase 1 and 2
o Trinity Plaza Apartments
o Veterans Affordable Housing