Unlocking More Housing in DeKalb

Introducing the DeKalb Housing Catalyst Program: Gap Financing for Multifamily Development

If you’re a developer who has been working on a multifamily housing project in DeKalb County and the numbers just aren’t adding up, this program was designed with you in mind.

DeKalb County and Decide DeKalb Development Authority are launching the DeKalb Housing Catalyst Program, a multifamily gap financing revolving  loan fund aimed at accelerating the production and preservation of affordable and workforce housing across the county. The program is being funded through DeKalb County’s Housing Investment Bond initiative, with bond closing targeted for August 2026.

Why Gap Financing, and Why Now

Anyone working in multifamily development today understands the challenges. Rising construction and land costs, tightening debt markets, equity shortfalls, and an unpredictable federal funding landscape have left a lot of projects sitting on the shelf; not because they aren’t viable, but because the math on the capital stack isn’t quite working.

That’s exactly where gap financing comes in. A targeted, competitive capital injection, even a relatively modest one, can unlock significantly larger amounts of private equity and debt and turn a stalled project into a delivered one. DeKalb County has seen this play out before, and the Housing Catalyst Program is a deliberate effort to put that tool to work countywide.

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What Projects Are Eligible?

The Catalyst Program is open to new construction, substantial rehabilitation, and acquisition-rehabilitation projects located anywhere in DeKalb County, including properties within incorporated municipal boundaries such as the City of Brookhaven and the City of Atlanta.

Minimum project size is 20 units, with a minimum of 10 affordable units per project. Projects do not need to be Low Income Housing Tax Credit deals to qualify; workforce housing and other affordable housing structures are also eligible.

Mixed-income developments are strongly encouraged, and all projects must comply with applicable local, regional, and federal affordability requirements, including LIHTC requirements through DCA, and any HUD program guidelines where relevant.

How Much Can a Project Receive?

Funding is calculated on a per-unit basis, issued as a subordinate mortgage. Units at or below 60% AMI are eligible for up to $100,000 per unit. Units from 60% to 80% AMI are eligible for up to $75,000 per unit. The maximum loan amount per project is $2.5 million.

Interest rates will be competitive and based on the financial feasibility of each individual application, but will not exceed 4.5%. Loan terms and amortization periods are flexible and may extend up to 45 years, with options for interest-only periods during construction and balloon payments at the end of the loan term.

The program is also designed to be flexible and work within the structure of other capital sources. Underwriting criteria include a minimum debt service coverage ratio of 1.1 and a maximum of 1.3, with an LTV of 95% and an LTC of 90%. These parameters were crafted with existing HUD loan programs and the current LIHTC Qualified Allocation Plan in mind.

All transactions will include a right of first refusal for DeKalb County, the Housing Authority, or Decide DeKalb if the property is sold before the end of the affordability compliance period. A land use restriction agreement will be recorded on the property to ensure units remain affordable during the compliance period. Affordability terms will be the greater of 15 years or the term of the loan.

Eligible Uses of Funds

The Catalyst Program functions as gap financing, meaning other capital sources in the stack need to be in place or clearly identified. Eligible uses include hard costs, soft costs, design, pre-development, and acquisition costs where applicable. For projects with a pending LIHTC application, contingent awards are possible, with the loan fund commitment contingent on receipt of a tax credit investment.

For projects already in construction that are now facing funding gaps due to cost increases or other changes, applications are still welcome. However, those situations may involve different terms, potentially including an equity or ownership position for Decide DeKalb rather than a traditional subordinated debt structure, depending on where the project stands in the capital stack.

Who Can Apply?

Decide DeKalb is looking to work with qualified developers and investors who have demonstrated experience in housing development. New organizations without a prior track record will find it difficult to qualify on their own. If you are a newer developer, you should partner with an established organization and present a joint application.

Key factors in borrower eligibility include site control, developer experience, and status within the entitlement process. If a project is subject to rezoning, applicants should be prepared to speak to where that process stands and what the realistic path to approval looks like.

A more detailed list of borrower eligibility criteria will be published alongside the formal notice of funding availability.

How to Apply and What to Expect

Once the housing bonds close in August, Decide DeKalb will issue a Notice of Funding Availability, expected in August or September. Applications will be reviewed on a first-come, first-served basis, with complete applications dated and timestamped upon receipt.

Once a complete application is submitted, underwriting takes about 3 to 5 business days. A draft term sheet will then be issued for negotiation. Depending on the pace of negotiations, board approval and an executed term sheet can be in hand within 30 to 60 days of application submission. The Decide DeKalb board will serve as the sole approving authority for Catalyst Program awards. No additional approvals from the Housing Authority or DeKalb County government are required.

For applicants working under a purchase and sale agreement with a contingency deadline, we strongly recommend that you note that timeline clearly in your project summary so the team can prioritize accordingly.

A Tool Built for Partnership

The Housing Catalyst Program is designed to function as a public-private partnership tool. Decide DeKalb is also committed to coordinating with municipal jurisdictions whose boundaries overlap with project locations, aligning with local housing and land use plans, and integrating with other county housing initiatives, including the Community Development Department’s HOME and CDBG programs.

The intent is not to replace private capital but to complement it and create conditions where more development can happen, sooner, at deeper and longer-lasting levels of affordability.

Next Steps

To stay informed as the program moves toward launch, sign up for newsletters from both DeKalb County Government and Decide DeKalb, and follow both organizations on LinkedIn, Instagram, Facebook, and YouTube.

If you have a project in DeKalb County that needs gap financing to move forward, we want to hear from you.

Questions and inquiries can be directed to [email protected]. A formal FAQ will also be posted to the Decide DeKalb website as program details are finalized.