The City of Walnut Creek is committed to supporting production of affordable housing that is sustainable, inclusive, and accessible for individuals and families in need.

If you are a housing developer, you may be eligible for a subsidy if your project is 100% affordable.

Proposals

We seek to fund projects that increase housing affordability. This includes: 

• Projects that aim to provide housing options for extremely low-, very low- and low-income individuals and families
• Projects that allow the City to have a range of housing types, such as affordable rental units, workforce housing, and homeownership opportunities

In general, your proposal needs to include: 

• Applicant contact information
• Your experience with affordable housing development
• Project location
• Proof that you control the site, such as an executed letter of intent (LOI), option to purchase, a purchase and sale agreement, etc.
• Project description, including number of units, affordability levels, and number of bedrooms
• Budget, including sources and uses
• Funding request from the City, not to exceed 25% of total development budget
• Project timeline

FY25 Request For Proposals

The FY25 Affordable Housing Subsidy Request for Proposals (RFP) opens on November 15, 2024 and closes on January 31, 2025. 

We are seeking proposals through this RFP from qualified developers for the creation of affordable housing projects within Walnut Creek city limits. Through this RFP, the City will offer financial support from City dedicated affordable housing funds to construct additional affordable housing units in the city, particularly for low, very low, and extremely low-income households. The City’s goal is to address the growing demand for affordable housing through innovative, sustainable, and community-focused projects.

For full details on the RFP including requirements, evaluation criteria, and submission instructions, click below:

• FY25 Affordable Housing Subsidy Request for Proposals
• Exhibit A - 2024 WC HUD&HCD Income Rent Limits
• Exhibit B - Standard City Contract Terms

Priority will be given to development of affordable housing projects that:

• Serve residents at the lowest income levels (extremely low and very low income)
• Include a mix of unit types that meet local housing demand
• Incorporate rapid rehousing principles and processes
• Serve residents with special needs
• Integrate sustainable, energy-efficient, and accessible design elements
• Are ready for immediate development (shovel-ready projects)

ELIGIBLE USES

• Site acquisition, and related costs such as appraisals, financing costs, and transaction costs
• Predevelopment, including architectural and engineering design, permits and fees
• Rehabilitation and new construction costs
• Site development
• Off-site development only when necessary to assure utility service to the project site
• Mixed-income projects, with City dollars assisting only extremely low, very low and low-income units

Evaluation criteria

Proposals will be evaluated based on the following criteria: 

• Mix of Affordability Levels (25 Points Available)
  The project should serve the local housing need consistent with the local plans (e.g., General Plan, Housing Element, or area plans). Housing units should serve the local area and use demographic context (e.g., by census tract or neighborhood.) Applicants should identify the mix of housing type, number of bedrooms and the levels of affordability of units proposed, and how the development will achieve it.

• Financial Feasibility (25 Points Available)
  All projected funding sources must be identified before funding is distributed. City funds may not replace other permanent funding on the project, except when a permanent funding source is no longer available. The application will be evaluated on the level of certainty, completeness and viability of the project financing strategy, adequacy of property management plans, duration of affordability, ongoing sustainability, adequacy of support services, and firmness of financial commitments or likelihood of receiving those commitments. 

Financial Feasibility will also assess:

• Project Readiness
  Projects will be evaluated for their readiness to proceed and timing for requested funding. Respondents should demonstrate full site control and have initiated the intake process with the City’s Planning Department. Projects that propose significant fundraising should demonstrate steps taken to prepare for and implement a capital campaign plan. Projects that will rely on public funding to cover the costs of ongoing operations or services should identify and describe the availability of such funding, and report on the project’s competitiveness for such funds based on discussions with likely funders.

• Cost Effectiveness
  Projects will be evaluated for cost effectiveness on a per unit and per square foot basis. Higher up-front development costs may be justified to create long-term operational efficiencies (e.g., through use of high efficiency building systems), provided that those increased costs have a relatively short payback period. The City may use third party reviewers to evaluate estimated construction costs.

• Operating Budgets 
  Development and operating budget forms should provide detailed explanation to support estimated expenses including submission of a proforma. If support services will be provided on-site, a detailed services budget must also be submitted. Proposed financing will be evaluated for feasibility based on expressed interest from lenders and investors, respondent experience in obtaining financing, and other competitive criteria.  

• Project Implementation and Management (20 Points Available)
  Projects will be required to submit a project implementation schedule including all major milestones (property acquisition, development entitlements, construction start, occupancy, etc.). This submittal will be evaluated as a part of the selection process. The timeline for project completion must make reasonable assumptions. Respondents must provide a narrative regarding whether or not discretionary approvals are required for planning or building permits and the project’s status and schedule relating to this. Project narrative should also include identification and mitigation of potential risks of the project. Projects that do not require discretionary planning approvals must provide a letter documenting why it is believed that the project does not need discretionary planning approvals from the City.

Project Management will also assess: 

• Property Management Plan
  A successful management plan will include the following information:
  
  (i) Occupancy: Information in the occupancy management plan must include lease information (length, tenant eligibility and selection standards, standards for termination of lease, eviction, lease renewal) and marketing strategies including local outreach
  
  (ii) Facility: The facility management plan should include provisions for both routine and long-term building maintenance
  
  (iii) Supportive Services: If applicable, the respondent must describe how any supportive services identified as an integral part of the project will be provided, either directly or through linkages with an existing network of service agencies.
  
  If a project is in its initial stages, a preliminary management plan may be submitted with the application. A final management plan will be required prior to funding.

• Displacement and Relocation
  Any activity which would result in the displacement of existing residents, especially low and/or moderate-income residents is discouraged. If displacement may occur, the respondent must submit, as part of the application for funding, a plan for providing relocation assistance to the displaced residents. If relocation may occur, you are strongly encouraged to contact the Housing Division prior to submitting your proposal to discuss project details and determine the relocation plan and process appropriate steps for your project and funding needs. Relocation costs should be included in the project budget. Projects funded with federal dollars (e.g., CDBG funds) must meet all applicable federal relocation requirements. 

• Project Experience and Track Record (20 Points Available)
  The proposed property and asset management entities will be evaluated on their experience and performance in developing and managing comparable developments. Successful asset managers will demonstrate a detailed understanding of the physical and financial condition of their properties, regularly updated capital needs assessments, and thoughtful policies for balancing the objective of maintaining affordable rents and planning for healthy reserves and operating income to cover current and future expenses.
  
  The application should include information sheets of past projects. The respondent should also identify lessons learned from previous projects and describe how performance/actions have been modified as a result.

• Sustainable/Energy Efficient (5 Points Available)
  • Developments that promote walkability and reduce reliance on private automobiles
  • Projects that incorporate renewable energy sources and emphasize environmentally friendly practices to reduce long-term operating costs
  • Developments that prioritize energy-efficient construction methods and sustainable building materials

• Community Engagement (5 Points Available)
  • Projects that actively involve the local community in the planning and development process and provide a community engagement plan
  • Collaborative efforts that bring together various stakeholders, such as government agencies, nonprofits, and residents, to address housing needs holistically
  • Initiatives that incorporate supportive services and universal design principles to ensure accessibility for people with disabilities and diverse needs

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Approval Process

After an internal committee meets to rank the applications, Walnut Creek’s City Council has final approval of the allocation of funds to a project. If your proposal is awarded, staff will work with you to formalize an agreement through which the City retains security in its investment through a deed of trust on the property and can take title to the property and re-sell the property if the project does not receive entitlements or financing to move forward.

Typically, the City allows a two-year window for the developer to obtain project financing and commence construction. This timeframe may be extended at the City’s discretion.

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Projects

See our list of affordable housing projects under review, under construction, and completed projects. 

View affordable housing projects