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.
Notice of Funding Availability
| Round | Document Name | |
|---|---|---|
| Round 2 | NOFA | Download |
| Round 2 | Applications Received | Download |
| Round 2 | NOFA Workshop Recorded | Download |
| Round 2 | NOFA Workshop Presentation | Download |
| Round 2 | Guidelines | Download |
| Round 2 | Payee Data Record | Download |
| Round 2 | Taypayer ID Form | Download |
Program Overview
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. Sponsor(s) and borrower(s) may not be in breach or default of the original HCD loan nor under any other HCD programs, except for the maturity of an unpaid loan.
Permanent loans for rehabilitation
- Maximum award amount: $25 million.
- Loans will have a 30 - 55-year term;
- 3 percent simple interest on unpaid principal balance, deferred.
- Payments in the amount of 0.42 percent are due annually.
- The unpaid balance of is due and payable at the end of the loan term.
Forgivable loans for capitalized operating subsidy reserves (COSR)
- Maximum award amount: 25% of PRP Rehabilitation Loan amount.
- Short-term COSR assistance period: construction close through December 31, 2028.
- Forgiveness predicated on compliance with PRP COSR and PRP Rehabilitation requirements.
- Forgivable COSR loans must be paired with PRP Rehabilitation loans. COSR awards are not available on a standalone basis.
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 restriction(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.
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. Funding set-asides: $10 million for small projects, defined as 20 units or less; $25 million residential hotels, as defined in the MHP Guidelines Section 7301 (PDF); $25 million set aside for projects that have been foreclosed on by HCD or by another public lender.