Capital Improvement and Preservation Fund (CIPF)

Capital Improvement and Preservation Fund (CIPF) is a state funded program that provides funds for the preservation of expiring use properties or for properties with expiring project-based rental assistance contracts.

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.

Eligible Applicants

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.

Funding Limits

• The Executive Office of Housing and Livable Communities (EOHLC)  will award $40,000 per unit for projects with more than 25 units with a per project maximum of $2,000,000.
• EOHLC will award $50,000 per unit for projects with 25 units or less with a per project maximum of $1,250,000.

Loan Terms

• CIPF monies are structured as a 40-year deferred payment loan at 0% interest.
• The Executive Office of Housing and Livable Communities (EOHLC) reserves the right to structure the loan with an interest rate acceptable to DHCD set at the time of closing.
• All CIPF loans are non-recourse and secured by a mortgage on the property.

Selection Criteria

• 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

The Executive Office of Housing and Livable Communities (EOHLC) makes CIPF funding available through a Notice of Funding Availability (NOFA). Applicants must submit an application for funding using the Department’s Mass One Stop+ web-based application.

Mass OneStop+

Winter 2019 NOFA

draft 2019 mini competition NOFA

Resources

CIPF Guidelines

CIPF Terms and Conditions

Mass Historic Project Notification Form

Rent Policies for EOHLC-Assisted Rental Projects

MA Fair Housing Marketing and Resident Selection Plan Guidelines

Occupancy Training

Contact

For additional information please call the CIPF staff at [phone].