The Capital Improvement and Preservation Fund is a state bond funded program that seeks to preserve and improve existing privately owned, state or federally assisted affordable rental developments. Eligible properties include housing at risk of losing affordability restrictions due to the potential for the prepayment of its mortgage or housing in which a project-based rental assistance contract has expired.
For-profit and non-profit developers and local housing authorities are eligible to apply for CIPF funds.
Eligible Activities and Affordability Requirements
CIPF funds can be used for the acquisition, refinance and/or rehabilitation of existing rental property.
At least half of the total units in the project must be occupied and affordable to households at or below 80% of area median income, using U.S. Dept. of HUD data. In addition, no less than 5% of the total units must be available and affordable to households at or below 50% of area median income as determined by HUD. These rental and occupancy restrictions will be in place for a minimum term of 40 years from the date of the closing on the CIP funds.
DHCD will award $40,000 per unit for projects with more than 25 units with a per project maximum of $2,000,000. DHCD will award $50,000 per unit for projects with 25 units or less with a per project maximum of $1,250,000.
CIPF monies are structured as a 40-year deferred payment loan at 0% interest. DHCD reserves the right to structure the loan with an interest rate above 0% for any CIPF loan. All CIPF loans are non-recourse and secured by a mortgage on the property.
- demonstrated risk of prepayment resulting in significant loss of affordable units
- appropriate scope of rehabilitation or construction
- appropriate total development cost for properties included in proposal
- financial viability of the project
- degree of local support, including local funding commitments
- evidence of readiness to proceed
- incorporation of sustainable development principles
How to Apply
CIPF uses the One-Stop Application format. Applicants seeking CIPF as the sole source of DHCD funding may submit an application at any time. If an applicant seeks additional funding from one of DHCD's competitive resources, the application must be submitted during one of DHCD's Rental Funding Rounds.
Additional Program Information
For additional information please call the CIPF staff at (617) 573-1300.