Essential Function Bonds

Essential Function Bonds are available to authorized issuers of tax-exempt bonds like the DHFC. They have been used to purchase and convert market-rate housing into affordable properties in areas of higher average rents. The goal in purchasing existing properties is to provide and preserve affordability in areas of the city where it is relatively more expensive to live, or where rent growth is threatening to price current residents of of their homes in the coming years.

Rehabilitation

Rehabilitation of existing multi-family developments is supported through traditional and tax-credit financing. It is vital to preserving the affordability and rehabilitating the existing affordable housing stock in the city to prevent it from falling into disrepair.

Workforce Housing

Workforce housing is defined as housing that is oriented towards those that earn between 60-80% of the area median income. Often this category includes our teachers, police, nurses, service workers, hospitality and restaurant workers, and other vital workers who are overburdened by housing costs. Studies have show that these middle-income households are overburdened by housing cost, often spending more than 30% of their incomes just to stay housed. Projects in this category alleviate those rent burdens and allow those households to save that extra expense for a home purchase, childcare, long term financial security, or other goals that every resident is working for.

Single-Family Housing (NOFA)

Single-family housing is supported through gap financing and soft loans that the DHFC offers to developers who provide for-sale housing to those whose are income-qualified. Conditions of this financing are that the homes be sold at below market rates to families of low and moderate incomes. The greatest tool to build generational wealth for lower income households is to purchase a home and retain that asset that will grow in value. Providing greater access to homeownership allows those families that have had to endure economic hardship an opportunity to pass on some economic mobility to their children and break the cycle of poverty.

Low-Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) program finances projects for new construction of housing for low and moderate income households. This is a federally-funded program that provides tax credit equity to developers of multifamily housing in exchange for requiring affordable rents at those properties. It is vital to the production of new housing in areas of the city where market-rate housing is not financially feasible. The DHFC works with local officials, community members, developers, and city council members to get approval for each of these projects in open public meetings. The DHFC Board is sensitive to the issues stemming from concentrating too many of these restricted rate developments in one area, and all proposals are vetting through the city Fair Housing office.