Only property—as defined by its assessor’s parcel number (APN)—that is dedicated to the grant project can be used as match, and only that equity amount can be used for match. Any property used as match must be the actual site of the project for which the funding application is being submitted. Property that is separate from the project site may not be used as match. Match property must be owned by the applicant or partnership group.

To determine the equity match amount, apply the equity amount rule for the specific grant project site. For match purposes, the equity amount is defined as the appraised value minus the existing outstanding loan amount:

certified appraised value – outstanding loan balance = equity amount

Equity ownership in real estate may be considered as match for funding, subject to the following conditions:

  1. The property’s APN is dedicated to the project under the post-award service use deed restriction of 20 or 30 years, as stipulated by the grant funding requirements.
  2. Equity ownership in real estate (land and buildings) is acceptable as match, based on a professional certified appraisal and loan documents that show balance outstanding. Donated land or buildings that are not yet owned by the applying entity but that are adequately documented can be proposed as match.
  3. The value of equity in land or buildings will only be considered for match if the property that is the source of the equity value is devoted to the prospective expansion project. For example:
  • A nonprofit agency receives a donation of land, free and clear of any debt or liens, on which it proposes to build a new residential treatment program facility. The appraised value of the land can be applied to the project’s total development costs as match.
  • A for-profit agency owns a property appraised for $1 million and has an outstanding loan balance of $700,000. The agency therefore has $300,000 of equity in the property it can use for match.
  • A private agency owns a mixed-use commercial/residential building valued at $2 million, with an outstanding loan amount of $700,000. The equity value is $1.3 million. The agency proposes to use half the floor space for a new behavioral health crisis residence and related clinical offices. If the agency is awarded grant funding, the entire property will be encumbered with a 30-year deed restriction service use requirement. The agency can use the equity value of $1.3 million as the match amount if it provides adequate bank documentation showing the outstanding loan amount and a recent appraisal (within 6 months of application).All match sources will be reviewed and approved by the state prior to the awarding of BHCIP or CCE funds.