Foster City Municode #25

Foster City low-interest loans for affordable multifamily rental housing

The City of Foster City is offering low-interest financing to support new below-market-rate multifamily rental housing in Foster City. - Buyer: City of Foster City, Community Development Department. - Funding: Approximately $5.85 million is available overall. Requests are capped at $300,000 per below-market-rate (BMR) unit. - Eligible development: New multifamily rental projects with at least 10 total units, including qualifying inclusionary projects, 100% affordable housing, eligible expansions, and multifamily or institutional/religious-site accessory dwelling units (ADUs). - Eligible uses and loan terms: Funding supports BMR-unit-related development costs, including predevelopment and construction. Interest rates are 1.5% for nonprofit applicants and 3% for other developers. - Key requirements: Inclusionary projects must meet the City’s 20% affordability allocation; 100% affordable projects must meet applicable income-targeting requirements. Affordability restrictions must last at least 55 years from the Certificate of Occupancy. - Selection considerations: Proposals may receive preference for nonprofit participation, supportive or special-needs housing, accessible or adaptable units, small or family-sized units, and eligible ADUs. Project readiness, affordability, and underwriting are also assessed. - Vendors and OEMs: No commercial vendors or product manufacturers are identified; the opportunity is for housing developers. - Funding is subject to availability and City Council approval.

Description

The City of Foster City is making approximately $5,850,000 available, subject to funding availability, as low-interest loans for new below-market-rate multifamily rental housing. Eligible proposals include market-rate developments with inclusionary BMR units and 100% affordable developments, but awarded funds must be used exclusively for BMR units. The funding may support predevelopment activities and construction, and projects must be within Foster City; projects with fewer than 10 total units are ineligible. Applications are accepted through December 31, 2027, subject to funding availability, and awards require City Council approval.

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