Opportunity Title:
Portfolio Reinvestment Program
Description:
Potential conversion of affordable housing to market rate housing is an ongoing and critical statewide problem. Some housing Projects secured with Department loans are reaching the end of their affordability periods and are at-risk of converting to market rate housing. Lack of access to financial resources to rehabilitate these Projects and extend the affordability periods increases the risk of conversion to market rate housing. The purpose of the PRP is to decrease the risk of conversion to market rate housing, and extend the remaining useful life and the long-term affordability of these Department funded housing Projects by making available Project loans for rehabilitation and capitalized operating reserves. Funding available under this Notice of Funding Availability and Guidelines (NOFA) is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF), established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2). The funds have been allocated to this program through the 2021-22 California state budget. Activities funded through CSFRF must comport with federal requirements.
Eligibility:
The Applicant must be an Eligible Sponsor as described below:
1. Eligible Sponsor as described in the Portfolio Reinvestment Program Notice of Funding Availability and Guidelines.
2. Sponsor(s) and borrower may not be in breach or default of the Original HCD Loan nor under any other Department program, except for the maturity of an unpaid loan.
3. If Applicant is not the current owner of the Project, current owner must request Department approval of a change of ownership no less than 30 days prior to submittal of application, and the Department must issue a formal approval of the change of ownership prior to submittal of the application. The current owner must provide evidence that the transaction complies with Preservation Notice Law as stated in Government Code Section 65863.11 and/or .13. Applicant must have site control in compliance with UMR section 8303.
Total Funding Amount:
$285,000,000
Maximum Award:
$50,000,000 for small projects, defined as 20 unites or less.
$100,000,000 for residential hotels
$20,000,000 for permanent loans for rehabilitation
Application Deadline:
July 29, 2022
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