Today, the California Housing Finance Agency (CalHFA) said it is accepting applications from local governments interested in low-interest loans to build single-family houses on vacant urban parcels. The state allocated $20 million for cities, counties, housing authorities and others.

The money comes from two housing bonds - Proposition 46 and 1C - that voters approved in 2002 and 2006. Applicants can receive a loan of up to $5 million at an interest rate of 3%. With government agencies pinched for funds, this could be a way for Valley governments to finance badly needed affordable housing.