Portfolio Reinvestment Program (PRP)
CA Dept of Housing and Community Development
The Portfolio Reinvestment Program (PRP) aims to preserve existing HCD-funded affordable housing projects by extending and restructuring affordability agreements; extending loan maturity dates; providing new low-interest long-term loans for rehabilitation; and providing forgivable loans to capitalize short-term operating subsidies.
PRP provides funding to rehabilitate, fund a short-term capitalized operating subsidy reserve, and extend the long-term affordability of HCD-funded rental multifamily housing projects that are at-risk of conversion to market-rate housing. The NOFA outlines the project eligibility criteria, application requirements, and timelines for applicants applying for funding.
To be eligible for PRP, projects must be:
Rental housing consisting of five or more units
And meet at least one of the following criteria:
All HCD affordability restrictions(s) have expired or will expire on or before December 31, 2033;
Project was foreclosed on by the Department or another public lender, and has at least one HCD document containing affordability restrictions that have not terminated or otherwise removed by HCD;
Received a loan extension through Housing Loan Conversion Program or Loan Portfolio Restructuring programs but was not awarded funding for substantial rehabilitation work; OR
Originally funded by a Legacy Program as defined in the NOFA/Guidelines and has not received funding for substantial rehabilitation work in the past 15 years.
An eligible applicant must be the sponsor of an eligible project. A sponsor is any individual, joint venture, partnership, limited partnership, trust, corporation, limited liability company, local public entity, or tribal entity, or any combination thereof that meets the requirements of the PRP NOFA/Guidelines.
$10 million for small projects, defined as 20 units or less.
$25 million for residential hotels, as defined in the MHP Guidelines Section 7301 (PDF).
A $25 million set-aside for Projects that have been foreclosed on by the Department or by another public lender.
Application Release: January 11, 2024
Application Window Opens: March 28, 2024.
General Deadline: May 28, 2024
Applications for eligible Projects for any set-aside (which include Small Project, Residential Hotel and Foreclosure) will be accepted on an over-the-counter basis through 4:00 p.m. on April 29, 2024.
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