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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

  • 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.

Loan Terms

  • 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 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

DHCD 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 2018 NOFA Housing Development Programs

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