RFP- 2026/27 Notice of funding availability for Below Market Rate Housing Funds

The City of Menlo Park, through its Community Development Department, has issued a Notice of Funding Availability (NOFA) providing approximately $4 million in Below Market Rate (BMR) housing funds. These funds are intended to bridge the financing gap for the production and preservation of permanent affordable housing, including new construction, acquisition, and direct housing production such as first-time homebuyer or accessory dwelling unit loan programs. Eligible projects must target extremely low, very low, and low-income households and must maintain affordability through deed restrictions for at least 55 years. Emergency shelters and transitional housing are explicitly ineligible. Proposals will be evaluated by the City Council based on the City's General Plan and Housing Element goals. Priority is given to applications submitted by the deadline and projects projecting completion within three years. Additional desirability is granted to projects focusing on extremely low-income units, special needs populations, or the preservation of existing housing. Applicants must be nonprofit or for-profit developers with a proven track record, including at least two years of ownership of two affordable, deed-restricted projects in the nine-county Bay Area with at least 10 units each. Submission requirements include an online application via the vendor portal by 5 p.m. on November 20, 2026. Required documentation consists of a cover letter, resumes for key staff and property managers, site control documentation, a detailed project schedule, a community outreach plan, and a 30-year cash flow analysis. Applicants must also provide certifications regarding their financial and regulatory history, including a lack of mortgage defaults or unresolved audit findings over the past 10 years. Projects must comply with various environmental and water acts, including CEQA and the Safe Drinking Water Act, and are encouraged to incorporate green building practices and a local hire program for Menlo Park residents.