Multifamily Residential Rental Development NOFA 2026-2027

The City of Foster City is soliciting applications for the 2026-2027 Multifamily Residential Rental Development NOFA to provide construction and permanent financing loans for affordable multifamily rental housing. Eligible projects include new developments of 10 or more units, expansions of existing developments resulting in 10 or more units, or ADU projects of 10 or more units. To qualify, projects must be either 100% affordable or market-rate with at least 20% below market rate units, with specific allocations for moderate, low, and very low income levels. All awarded projects must ensure affordability for at least 55 years from the date of the Certificate of Occupancy and comply with Foster City Municipal Code Chapter 17.90 and Uniform Multifamily Regulations. The selection process is conducted on a rolling basis with a response deadline of December 31, 2027, provided funding remains available. Applicants must first submit a preliminary online application at least 10 business days before submitting a final written application via email to housing@fostercity.org. Awards are based on a scoring system requiring a minimum total score of 86 points, consisting of at least 70 base points and 16 unit points. Evaluation factors include entity type, with a preference for nonprofits, the number of units, and affordability levels. Qualified applicants who meet the minimum scoring thresholds will be invited to an interview before final recommendations are made to the City Council. Key administrative requirements include the submission of insurance certificates and adherence to prevailing wage laws for construction work. Financial guidelines specify a minimum annual replacement reserve deposit of 500 dollars per unit if the initial deposit is less than 50% of the 15-year Property Needs Assessment cost, and an annual asset management fee capped at 1,000 dollars per unit or 25,000 dollars per year. The primary point of contact for this solicitation is Nori Jabba, Housing and Sustainability Manager within the Community Development Department.