# Foster City Municode #25

Foster City low-interest loans for affordable multifamily rental housing

**Posted:** October 07, 2026
**Respond By:** January 01, 2028
**Identifier:** 25
**NAICS:** 236116

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.

[View original listing](https://ca-fostercity.civicplus.com/bids.aspx?bidID=25)