Frequently Asked Questions
The FAQ page will be updated to address emerging questions from applicants. Last updated on April 1, 2026.
Quick Access
General
About the Program
-
The LA County Commercial Acquisition Fund (CAF) is a program that helps eligible organizations acquire vacant, abandoned, under-leased, or underutilized commercial properties — with the goal of revitalizing them for local small businesses and the community-serving uses.
-
CAF funding is structured as a forgivable loan, not a traditional grant or bank loan. It does not need to be repaid as long as awardees comply with the program's covenants and conditions. However, if an awardee fails to meet those obligations, the full loan amount becomes immediately due and repayable.
ELIGIBILITY
Your Organization
-
Applicants that meet the below criteria will be considered qualified to apply for the CAF:
Small Businesses: A for-profit entity that is independently owned and operated and is not dominant in its field of operation. It must have $16 million or less in average gross annual revenue receipts in the most recent three years with 100 employees or fewer (or a manufacturer with 25 or fewer employees) as defined by the State of California.¹
Non-profit Organizations: All types of active nonprofit organizations with legal standing, including community development corporations, and community land trusts). Non-profits must be active and in good legal standing, with Nonprofits Articles of Incorporation; Organization Bylaws; Organizational Chart of Entity and Affiliates; and 501(c)(3) articles of incorporation.
Small-scale Developers: A real estate development entity with a background in commercial or mixed-use projects, serving local and regional County of LA residents. To be eligible, it must be independently owned and operated (not a subsidiary or affiliate of a larger national or institutional development firm); has a cumulative development volume of $50 million or less over the past five years; has completed or currently owns no more than five income-producing properties or projects.²
Entities that are disbarred by a federal, State, or local governmental entity or with unresolved violations noted in LA County’s contracting database are disqualified.
Applicants must provide proof of being registered to do business or as a nonprofit in the State of California, must have a Los Angeles County business address, must have a minimum of three years experience in active business operations, and must be in good standing to be eligible.
Additional criteria may apply.
FOOTNOTES
Exclusions include: Subsidiaries of large corporations; Shell companies and entities created solely for loan award purposes.
Medium-to Large Scale Developers may be considered if submitting in partnership with an eligible entity listed above.
ELIGIBILITY
The Property
-
The property must be located within Los Angeles County. Preference will be given for properties located in the following Priority Commercial Corridors:
Supervisorial District 1
East LA: Whittier Boulevard from S Burger Avenue to Goodrich Boulevard
Supervisorial District 2
Florence-Firestone: Central Avenue from Florence Avenue to Manchester Avenue / Firestone Boulevard
West Athens / Westmont: Vermont Avenue from West 83rd Street and to West Century Boulevard
Supervisorial District 3
Pacoima: Van Nuys Boulevard between Hoyt Street and San Fernando Road
Supervisorial District 4
Huntington Park: Pacific Blvd between Florence Avenue and Randolph Street
Supervisorial District 5
Altadena: S Lake Avenue between E Altadena Drive and Beverly Way
Altadena: Lincoln Avenue between Figueroa Drive and Wyoming Street
Altadena: Fair Oaks Avenue between Maple Street and East Washington Boulevard
-
Properties must be vacant, abandoned, under-leased, or underutilized, and must currently be zoned for the use proposed by the applicant.
Vacant or Abandoned: A property that has been unoccupied for two years or more. Eligible properties include both vacant land and properties with vacant or abandoned structures on the land.
Under-leased: A property that has had an average vacancy rate of 30% - 50% (depending on size of the property) the prior twelve-month period. Properties may have an active owner, with some active commercial uses. Under-leased can also refer to a property where a tenant's lease interest has not been properly recorded for the prior twelve-month period.
Under-utilized: A property or portion thereof that has not been built to the maximum development potential allowed within the governing zoning code.
-
No. CAF is restricted to acquisition costs only – the expenses directly tied to purchasing the property. Funds cannot be used for a property already owned by the applicant at the time of application.
-
The CAF program does not provide a list of properties. Interested applicants must identify their own properties and verify that the property meets the program's requirements. Applicants who are invited to Phase II will be provided with technical assistance to assist in identifying eligible properties that suit their project needs.
Funding
Funding & Eligible Costs
-
CAF funds can only be used for acquisition costs — the expenses directly tied to purchasing the property. These typically include:
Purchase price — the agreed-upon sale price
Closing costs — escrow fees, title insurance, and settlement charges
Due diligence costs — inspections, environmental assessments, appraisals, and surveys
Transaction fees — broker commissions and legal fees directly related to the purchase
Costs related to repairs, improvements, and other project-related costs are not covered and must be separately funded. It's a good idea to have additional funds available in case the Couty’s forgivable loan doesn't cover the full purchase price.
Property
Property Use & Community Benefits
-
All tenants must provide community-serving commercial or mixed-uses for the neighborhood, and at least 51% of commercial space in acquired properties must be leased to small businesses. Properties can be purchased for owner-occupancy, provided your operations meet the commercial use requirements.
-
A 30-year covenant will be recorded on the property. It requires the owner — and any future owner — to uphold community benefits including:
Renovate and rehabilitate the acquired property
Provide below market rent to prospective commercial tenants
Lease all commercial space to tenants that provide community-serving commercial or mixed-uses for the neighborhood, and lease at least 51% of commercial space to small businesses
Provide temporary relocation and first right of return to existing qualified tenants during renovations
Additional requirements for provision of affordable housing in the case of redevelopment mixed-use projects.
-
Yes, but the covenant runs with the land –meaning any future buyer must comply with the covenants and program obligations for the remainder of the 30-year term.
Still have questions?
Submit a question to our team. Responses will be incorporated into the FAQ document on a rolling basis.