NOAH

About the Program

The LHC offers the Nonprofit Open Cycle Affordable Housing Program (NOAH). Under this program, the LHC distributes HOME Investment Partnership Program Funds (HOME Funds) to experienced nonprofit housing development organizations on an open noncompetitive basis.

Program Overview

Homeownership development funds may be used to pay eligible costs associated with the development of single family homeownership units. The units may be either new construction or acquisition and rehabilitation of existing vacant units. Project must be small in scope (up to six units) and modest by local standards.

The value of the homes produced (appraised value after rehabilitation or new construction) cannot exceed HOME/Housing Trust Fund Sale Price Limit for the year in which the project is originally funded. The homes produced must be sold to an eligible buyer through a fee simple sale within nine months of completion of the construction.

Rental development funds may be used to pay eligible costs associated with the development of permanent multifamily housing. The units may be either new construction or involve acquisition with rehabilitation or reconstruction. The project can have up to four units. Units developed with LHC assistance must meet the following affordability requirements:

1. Rent for assisted units must not exceed 30% of the adjusted income of a family whose annual income equals or is less than 65% of the area median income as determined by HUD, adjusted by bedroom size. HUD provides annual HOME rent limits that include average occupancy per bedroom and adjusted income assumptions. For purposes of the NOAH Program, HOME rent limits and requirements will be used for all HOME Funds-assisted units.
2. Project based vouchers (PBV) may be awarded to projects that have one-bedroom units available to serve households in need of permanent supportive housing (PSH). In addition to the unit size, the project must be close to public transportation and health care. No more than 25% of the units in a project can be set aside for PSH PBVs. Projects that request PBVs will be reviewed by the PSH Executive Management Counsel with the PSH/PBV waiting list to ensure the project is in a location where services are accessible and people in need of PSH want to live.