The California Housing Finance Agency (CalHFA) recently announced the expansion of its Preservation Loan Program, a financing program to maintain affordability of multifamily housing across the state. Specifically, the Preservation Loan Program provides acquisition, rehabilitation, and permanent loans to preserve and extend affordability on multifamily rental properties. Since its inception in 2012, the program, which is managed through CalHFA’s Multifamily division, was only available to eligible CalHFA portfolio projects but through this recent expansion, financing is now available for the preservation of any multifamily rental properties throughout California. All preservation loans are credit-enhanced through CalHFA’s HUD/FHA Risk Sharing program and are available to for-profit, nonprofit, and public agency sponsors. Participants are eligible to qualify for a loan equal to the lesser of 90% of restricted value or 80% of development costs while maintaining a minimum 115% debt service coverage.
Click here to read the press release about the program expansion.
Click here to view a more detailed Preservation Loan Program description.
