2018 – 2019 Regulations

View the 2018 – 2019 Prop HHH SH Loan Program Regulations as approved by the City Council and Mayor, on June 29, 2018


The Prop HHH SH Loan Program Term Sheet was approved by City Council and provides a general framework for the creation of the new HHH Loan Program. It is in bullet point format and provides information such as interest rate, loan amount limits, tenant selection, etc. The full Rules & Regulations were crafted based on the Term Sheet.

Prop HHH invites proposals for innovative approaches. Program rules and regulations are updated annually.


  • Demonstrated Site Control
  • Project must commit a minimum of 50% of the units within the project for SH for homeless individuals and families
  • Alternatively, at minimum, twenty units in the project, excluding managers’ units, must be reserved for SH. Only the eligible SH units will be funded with HHH proceeds
  • 50% of the SH units must be designated for chronically homeless


  • A lead developer that has been procured and pre-selected through the LAHD Land Development Program or that is the managing general partner of at least two special needs projects which include units restricted to serving homeless households, in service for more than one year
  • Commitment to providing services necessary for the successful treatment and long term stability of tenants
  • Lead developer and managing general partner must clear LAHD’s background check


  • Project team must include a service provider with at least 24 months’ experience providing services to the proposed target populations(s) in supportive housing
  • Service Provider must be in good standing with LA County Department of Health Services
  • Any project with a commitment from a Los Angeles County Health Agency to provide supportive services funded by Measure H must, at the time of application, provide a letter from the L.A. County Health Agency identifying its intent to provide services for special needs units
  • If supportive services are provided by the L.A. County Health Agency for a Special Needs population, a Supportive Service Plan is not required for that population


  • New Construction or Rehabilitation projects
  • Available to non-profit, and for profit sponsors
  • SH Loan Program may be used with or without Low Income Housing Tax Credits (LIHTC)
  • 4% LIHTC projects shall use LAHD as the bond issuer
  • 9% LIHTC projects shall apply to the LAHD Affordable Housing Pipeline for an allocation of tax credits from the City


  • Maximum Loan Amount $12,000,000 (Minimum Loan Amount $250,000)
  • Up to $140,000 per SH unit for 4% tax credit transactions
  • Up to $100,000 per SH unit for 9% tax credit projects
  • Up to $100,000 per SH unit for non-tax credit projects
  • If a project has reached the $12 million cap and not all of the supportive housing units are funded then supplemental funds in the amount of $80,000 per SH unit is available up to a maximum HHH loan amount of $16 million. To be eligible for the supplemental funding the project must 1) have more than 80% of the units in the project be designated as SH units, or 2) the project must be located in a highest, high or moderate resource area/census tract per Opportunity Map results


  • Loan Fee:  TBD (Bond conduit issuer fees are separate)


  • 3% interest rate, residual receipts, 55 year term/covenant
  • 2 year conditional commitment
  • Projects may be subject to a Project Labor Agreement


  • Loans and grants are encouraged from local government and third parties to leverage funds and achieve project feasibility
  • If amortizing debt on project, minimum 1.15 debt service coverage ratio (additional reserves may be required)


  • Supportive housing units for individuals and families who are homeless or chronically homeless, and either
    (1) “extremely low income” up to 30% of the Area Median Income
    (2) “very low income “up to 50% of the Area Median Income as established and revised from time to time by HUD
  • Affordable Housing units for individuals and families who are
    (1) “extremely low income” up to 30% of the Area Median Income, or
    (2) “very low income,” and/or;
    (3) “low income” which includes income up to 80% Area Median Income; however, no more than 20% of funds shall be used for such purposes


  • Use of the LA County Coordinated Entry System (CES) or similar system to preference vulnerable populations
  • Comply with all applicable tenant guidelines and regulations


  • Projects with more than 50% Supportive Housing units; 1/2 of which designated for Chronically Homeless
  • Projects containing 50+ total units preferred
  • Projects located near Transit Oriented Development (TOD) areas
  • Prioritize projects requesting less than 75% of maximum funding allowed; followed by 85% and 95% respectively (thus maximizing leveraging of funds)
  • Access to services
  • Geographic distribution throughout the City of Los Angeles. Full 15% developer fee allowed in Difficult to Develop Areas as an incentive


  • Affordable Housing Development:  A structure or set of structures with rental housing units restricted by department regulations and operated under landlord-tenant law, with common financing, ownership and management
  • Assisted Unit:  A housing unit that is subject to specific rent, occupancy and other restrictions per the funding program regulations
  • Chronically Homeless: A homeless individual living/residing in a place not meant for human habitation, a safe haven, or an emergency shelter; has been homeless and living or residing in a place not meant for human habitation, a safe haven, or emergency shelter at least 1 year, or on 4 separate occasions in the last 3 years.  Also defined as:
    (a) Experiencing chronic homelessness as defined in 24 CFR 578.3;
    (b) Residing in a transitional housing project that will be eliminated and meets the definition of chronically homeless in effect at the time in which the individual or family entered the transitional housing project;
    (c) Residing in a place not meant for human habitation, emergency shelter, or safe haven; but the individuals or families experiencing chronic homelessness as defined in 24 CFR 578.3 had been admitted and enrolled in a permanent housing project within the last year and were unable to maintain a housing placement;
    (d) Residing in transitional housing funded by a Joint Transitional Housing and Permanent Housing Rapid Re-Housing component project and who were experiencing chronic homelessness as defined in 24 CFR 578.3 prior to entering the project;
    (e) Residing and has resided in a place not meant for human habitation, a safe haven, or emergency shelter for at least 12 months in the last three years, but has not done so on four separate occasions; or
    (f) Receiving assistance through the Department of Veterans Affairs (VA)-funded homeless assistance programs and met one of the above criteria at intake to the VA’s homeless assistance system
  • Family:  A family is either a single person or a group of persons, with or without children
  • HHH Non-SH Units:  Affordable units (not Supportive Housing) funded specifically by Measure HHH financing without a special needs component, such as Family, Senior, Individual and Veteran excluding a Manager’s Unit
  • Supportive Housing Projects (SHP):  A development that provides housing and supportive services to extremely low income, and very low income, homeless special needs individuals and veterans, homeless families, homeless transition-aged youth (TAY), homeless seniors, homeless disabled, and homeless frequent users of Los Angeles County services
  • Homeless:  An individual who lacks a fixed, regular, and adequate nighttime residence
  • Homeless at risk:  An individual or family who has income below 60% of the AMI and has insufficient resources immediately available to maintain housing
  • MHSA eligible tenants:  A homeless or at risk of homeless individual who has a mental illness
  • Veterans:  Any person who actively served in any US military branch and who has been released regardless of discharge status


Prop HHH Approval Process

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