Sobrato Affordable Housing Fund
The Sobrato Affordable Housing Fund (the “Sobrato Fund”) is a $10 million loan fund set up to encourage the development of affordable multi-family rental properties, homeless and transitional housing, and below market rate single-family/homeownership developments in the Greater Silicon Valley area (Santa Clara County, southern San Mateo and Alameda counties) through the provision of interest-free loans to fund land acquisition, predevelopment, and construction gap expenses incurred during the feasibility, entitlement, and construction process.
The Sobrato Fund offers three primary debt products with a maximum term of 36 months to pre-approved borrowers:
- Real estate-secured loans for land/property acquisition;
- Real estate-secured loans for construction gap financing; and
- Unsecured loans to fund predevelopment expenses.
Sobrato Fund Program Priorities:
Funding is only provided to approved borrowers developing projects meeting a minimum of two of the following criteria. In the event funding is in short supply, projects that meet several of the criteria listed below will receive priority:
- Projects with 50 or more units (25 or more for single-family/homeownership developments).
- Multi-family rental and homeless/transitional projects providing housing for extremely low-income families (35% of area median income or below) or single-family developments with some units affordable to homebuyers at or below 80% of area median income.
- Projects making use of a non-governmental, non-regulated financing source. Examples include Opportunity Fund's other loan pools, Housing Trust of Santa Clara County, Northern California Community Loan Fund, Low Income Investment Fund, LISC, etc. In addition to debt financing, grants more than $100,000 may be considered to meet this criteria. Deferred developer fees and tax credit equity do not qualify.
- Projects that create new affordable units or preserve existing affordable units.
Please refer to the Sobrato Fund Program Guidelines for more detail.
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