Portfolio Reinvestment Program (PRP)

Eligible Projects

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.

Eligible Applicants

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.

Key Threshold Requirements

• Demonstrate readiness to commence construction within 12 months of award, or 18 months if using Low-Income Housing Tax Credits.
• Letter of Interest from a lender for construction financing.
• Demonstrate Fiscal Integrity as defined in MHP Guidelines section 7301(j) by the 10th year after the date of recordation of the PRP rehabilitation loan.
• A certification that Sponsor has sufficient financial capacity to fund all required predevelopment expenses prior to construction close.
• Each Sponsor is limited to submitting no more than two applications, not including any application for the small project set-aside.

Minimum scope of work: address all critical and immediate repairs, and replacements, listed as required 5 years of the date on the third party Property Condition Assessment (PCA) submitted as part of the application.

Timeline

Application materials for the PRP NOFA must be submitted electronically via the application portal on the Department’s website by the date specified in the table below.

Resources

• Statutes 
• Uniform Multifamily Regulations (PDF)
• Disencumbrance Coming Soon
• Disencumbrance Policy Coming Soon

General Program Documents

Applicant List Round 2 (PDF)

Public Agency TIN Form (PDF)

Regulatory Agreement Expiration Report 2023 (PDF)

The Department shall verify eligibility for PRP funding at the time of application. Sponsors with concerns or questions about the information on this list or your Project’s eligibility status should contact the Department at portfolioreinvestment@hcd.ca.gov.

Resolution Templates

PRP-Loan Authorization LP/GP (DOC)

PRP-Resolution Corporation (DOC)

PRP-Resolution Multi-Member LLCs (DOC)

PRP-Resolution Public Entity (DOC)

Program Reference

• MHP Final Guidelines, effective June 19, 0219 (PDF)
• Uniform Multifamily Regulations, effective November 15, 2017 (PDF)
• PRP Deed of Trust (PDF)
• PRP Senior Regulatory Agreement (PDF)
• PRP Regulatory Agreement (PDF)
• PRP Promissory Note (PDF)

Previous NOFAs

Fiscal Year 2022-2023

• Round1 NOFA
  • PRP Application Webinar (PDF)
  • PRP Application Webinar Recording
  • PRP Q&A (PDF)
• Round1 NOFA (March 28, 2022) Amendment 1
  • PRP Amendment #1 NOFA Webinar (PDF)
  • PRP Amendment #1 NOFA Webinar Recording
  • PRP Amended Application (XLSM)
• Round #1 Applications Received (PDF)
• Round 1 Awards (PDF)
• Miscellaneous

Category

2022 PRP NOFA (PDF)

Regulatory Agreement Expiration Report (PDF)

PRP - GP/LP Loan Authorization Form (DOC)

PRP - Multi-Member LLC Resolution (DOC)

PRP - Corporation Resolution (DOC)

PRP - Public Entity Resolution (DOC)