Affordable Housing Fund
The Affordable Housing Fund is Palo Alto's local housing trust fund established by City Council to provide financial assistance for the development of affordable housing supporting very low, low and moderate-income households who live or work in Palo Alto.
Purpose and Impact
Providing housing for all income levels is a focus for all Bay Area cities, including Palo Alto. The City has long been a leader in the production of affordable housing and currently has the second highest inventory of affordable housing for incorporated jurisdictions within Santa Clara County (as a percentage of total housing stock). Since 2017, Palo Alto has contributed or pledged over $57 million toward affordable housing, including advancing affordable housing projects such as Mitchell Park Place, Wilton Court, Buena Vista Mobile Home Park, Homekey Palo Alto, and 3001 El Camino Real.
To further the City's work on housing, Palo Alto City Council adopted Housing for Social and Economic Balance as a 2023 and 2024 Council priority, and endorsed the State certified Housing Element to help guide future housing production and housing-related programs and policies. The City continues to make progress on this important priority through a variety of initiatives.
Types of Housing Supported
The City provides financial assistance to support the development of affordable housing, subject to approval by the City Council and long-term regulatory agreements. While both rental and owner-occupied units may be assisted, in practice, nearly all assisted units have been rental units affordable to extremely low-, very low-, or low-income households. To date, the housing projects supported by the City have been developed, owned, and managed by local non-profit housing organizations. Various housing types have been developed serving different community needs, including senior apartments, single-room-occupancy units, family apartments, units for persons with disabilities, studio units, and large-family units.
Funding Process
Developers are encouraged to apply for funding through the City's established processes, including the funding cycle for the Community Development Block Grant (CDBG) program or occasional Notices of Funding Availability (NOFAs). In some cases, applications may be considered outside of regular cycles if necessary.
Want to Learn More?
More information about the Affordable Housing Fund, including its sub-funds and eligibility criteria, can be found in the Affordable Housing Fund Guidelines.(PDF, 248KB)
Additional information about the Local Housing Trust Fund (LHTF) can be found on the LHTF webpage.