Loan Portfolio Restructuring Program (LPR)
Assembly Bill 1699 (AB 1699) was enacted in 2012. It authorizes the Department of Housing and Community Development (HCD) to restructure existing loans in specified HCD loan programs listed below. HCD adopted guidelines for implementing the requirements and named the program the Loan Portfolio Restructuring (LPR) Program.
The restructuring of HCD’s loans is intended to preserve affordable housing units that would have been lost to termination of the regulatory provisions restricting rents and occupancy, to address physical deterioration of the property, and/or to improve project fiscal integrity. (Sections 50560, 50561 and 50562, Chapter 3.9 of Part 2 of Division 31 of the Health and Safety Code)
Restructuring means one or more of the following:
- Extension of the original HCD loan term (or terms, if there are multiple HCD loans),
- subordination of the HCD loan or loans to a new senior loan, and/or
- tax credit investment in the project.
The LPR Program applies exclusively to restructuring of loans originally funded under the following HCD programs:
- Rental Housing Construction Program Original (RHCP-O) established by Chapter 9 (commencing with Section 50735),
- the Special User Housing Rehabilitation Program (SUHRP) established by Section 50670,
- the Deferred Payment Rehabilitation Loan Program (DPRLP) established by Chapter 6.5 (commencing with Section 50660),
- the rental component of the California Natural Disaster Assistance Program (CALDAP) established by Section 50671,
- the State Earthquake Rehabilitation Assistance Program (SERA) established by Section 50671,
- the rental component of the California Housing Rehabilitation Program (CHRP-R) established by Section 50668.5,
- the component of the Rental Housing Construction Program funded with bond proceeds (RHCP-B) pursuant to Section 50771.1,
- the Family Housing Demonstration Program (FHDP) established with Section 50880, and
- the Families Moving to Work Program (FMTW) established by Section 50880.
- 2019 Final Amended Guidelines (PDF)
- 2019 Final Statement of Reasons (PDF)
- 2019 Summary of Public Comments Received (PDF)
- 2014 Portfolio Restructuring Guidelines (PDF)
Complete the LPR Application along with the appropriate Schedule of Rental Income (SRI) and submit electronically to the HCD's Transactions Unit email: HCDTransactionUnit@hcd.ca.gov.
For questions or to discuss your proposed transaction prior to submitting an application, you may contact a Transactions Unit staff at (916) 263-2771 or email: HCDTransactionUnit@hcd.ca.gov.
California Department of Housing and Community Development
Loan Portfolio Restructuring Program
2020 West El Camino Avenue, Suite 500
Sacramento, CA 95833
There are currently no general forms for the LPR program on the website at this time.
LPR Specific Documents
- Interest Rate Reduction Application Certification (PDF)
- Interest Rate Reduction Sponsor Process (PDF)
- LPR Deed of Trust (PDF)
- LPR Regulatory Agreement (PDF)
- LPR Senior Regulatory Agreement (PDF)
- LPR Promissory Note (Simple) (PDF)
- LPR Promissory Note (AFR) (PDF)
- Senior Subordination Agreement (DOC)
- Junior Subordination Agreement (DOC)
- Senior Lending Financing Term Sheet (DOC)
AB 1699 HCD Loan Restructuring Program
- LPR Application (XLS)