Murrieta officials are taking a proactive step toward addressing the city’s housing needs with the launch of a new revolving loan program designed to accelerate low-income housing construction. The $4.1 million fund will provide early-stage and gap financing to encourage developers, nonprofits, and community partners to invest in long-term affordable housing projects.
The initiative comes as part of statewide efforts requiring California cities and counties to plan for their share of housing units, including those set aside for low-income households.
The city’s new “Revolving Loan Fund” will be formally introduced during a virtual meeting on Wednesday, September 24, at 10 a.m. The meeting, hosted on Zoom, will outline eligibility criteria, loan uses, and project types supported under the program.
According to the city, funds can be applied to a range of activities, including:
Eligible applicants include nonprofit organizations, private and for-profit affordable housing developers, public agencies, social service providers, faith-based groups, and community organizations.
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The loan program is funded through the Southern California Association of Governments (SCAG) and the state’s Regional Early Action Planning Grants 2.0 Lasting Affordability Program, which stems from the 2021 California Comeback Plan under Assembly Bill 140.
Across California, housing allocations are determined through the Regional Housing Needs Assessment (RHNA) process, which establishes each city’s “fair share” of housing across income categories.
For Murrieta’s 2021–2029 RHNA cycle, the city must plan for 3,043 dwelling units, broken down as follows:
City officials hope the new program will make a meaningful impact, particularly in addressing the very low- and low-income housing targets.
“The revolving loan fund represents an important tool to help overcome early financing barriers that often delay or prevent affordable housing projects from moving forward,” city officials explained. By offering flexible financing, Murrieta aims to attract more developers and community groups to invest in housing solutions that meet local demand.
The first loans are expected to be awarded in early 2026, providing developers with critical resources to move projects from concept to construction.
For more details or to register for the September 24 meeting, interested participants can contact Carl Stiehl at cstiehl@murrietaca.gov or visit the city’s Revolving Loan Fund webpage.
Originally reported by Toni McAllister, Patch Staff in Patch.
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