Acquisition Funding to Create Moderate Income Housing


Acquisition Funding to Create Moderate Income Housing

Jon Penkower
Managing Director, California Statewide Communities Development Authority

A new program run by the California Statewide Communities Development Authority is designed to help cities meet their goals for housing middle-income residents, those earning between 80 percent and 120 percent of the area median income. The authority issues tax-exempt bonds to help cities pay for development projects that have some public benefit. Since it was created in 1988, the authority has helped finance more than 100,000 affordable-housing units, as part of deals involving federal low-income housing tax credits and other subsidies. But this year, the CSCDA has started a new Workforce Housing Program, in which it plans to sell bonds to purchase rental properties, restrict rents to levels that are affordable to moderate-income tenants, and then use the rental income to pay back the debt over a period of 30 years. The program is meant to help cities provide housing for the so-called “missing middle,” people who earn too much to qualify for most subsidized housing but not enough to afford most of the market-rate housing that’s being built. The funding fills a gap in the financing equation, where workforce housing is not eligible for tax credits, private activity bonds or most other federal, state or local government subsidies.


  • Acquisition Funding to Create Moderate Income Housing Pres Housing Innovation Collaborative

Innovation Themes

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0:00​ Hook

1:03​ Introduction

1:23​ CSCDA Background

2:48​ Middle housing financing challenge

4:20​ How CSCDA acquires property

5:35​ Property managers

6:22​ Who are investors?

7:13​ Property tax exemption benefit

7:30​ Cost / benefit analysis

8:38​ Where program works best

9:08​ Property size range

9:37​ Pipeline

9:51​ Long Beach case study

11:26​ Summary / Recap

12:22​ Policy change – amending RHNA numbers