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CDLAC Timeline

Item Date

CalHFA Application Due

6/6

CDLAC App Due to CalHFA

7/8

CDLAC App Due to CDLAC

7/22

CalHFA Board Meeting

9/14

CDLAC Allocation Meeting

9/21
Item Date

CalHFA Application Due

7/08

CDLAC App Due to CalHFA

8/5

CDLAC App Due to CDLAC

8/19

CalHFA Board Meeting

9/14

CDLAC Allocation Meeting

10/19
Item Date

CalHFA Application Due

8/03

CDLAC App Due to CalHFA

9/2

CDLAC App Due to CDLAC

9/16

CalHFA Board Meeting

11/9

CDLAC Allocation Meeting

11/16

See all CDLAC dates >>

CalHFA Portfolio Loan Prepayment Program

Public Purpose Considerations for Prepayment (“Public Purpose Evaluation”)

In order for CalHFA to approve any prepayment, CalHFA will consider (in its sole and absolute discretion) the following public purpose criteria:

  1. Continued Affordability
  2. Location of Project
  3. Green Rehabilitation
  4. Special Needs
  5. Any additional significant public benefit that will result from a prepayment of the existing CalHFA financing

Qualification/Conditions/Requirements

In addition to the above-mentioned Public Purpose Evaluation, the following conditions must be met prior to CalHFA agreeing to a prepayment of a CalHFA multifamily portfolio loan. Further requirements may be necessary depending on the age of the loan. Please see the term sheets for more details.

  • The CalHFA loan must have matured for 15 years or more* and the Federal Low Income Housing Tax Credit compliance period must be satisfied, as may be applicable;
  • A written request by the Owner to use the CalHFA prepayment program must be made to the CalHFA asset manager assigned to the project before CalHFA staff can begin processing the prepayment request;
  • The Owner must be in current compliance with the conditions set forth in all existing CalHFA loan documents;
  • All loans for the project directly or indirectly financed by CalHFA must be prepaid at the same time;
  • CalHFA must be used as either the lender under a "CalHFA Lending Program" or conduit bond issuer under the Conduit Issuer Program for any new financing (the CalHFA Portfolio Loan Prepayment Policy and termsheets for the CalHFA Lending Programs and the Conduit Issuer Program are hyperlinked below)**;
  • Owner agrees to pay all fees and costs including a yield maintenance fee, as determined by CalHFA, at the time the loan is prepaid (A discount of the yield maintenance fee may be available for loans made under a CalHFA Lending Program);
  • California Debt Limit Allocation Committee (“CDLAC”)  required sponsor and issuer compliance monitoring shall run with the land and bind future owners of the project for the term of the most current CDLAC resolution compliance period;
  • A new CalHFA Regulatory Agreement shall be recorded on the property for the later of (i) the term of the new CalHFA first-lien loan, (ii) the Qualified Project Period (“QPP”) term, (iii) 20 years; or (iv) the term of the new CDLAC resolution requirements;
  • Subject to Public Purpose Evaluation.

CalHFA retains sole and absolute discretion to approve or reject prepayment requests based on a number of public policy, project, tax and financing considerations. Please view the term sheet for more details.

* All references regarding the age of the CalHFA loan are based on the closing/conversion date of the CalHFA permanent loan.
**Developments being prepaid and refinanced using 9% LIHTCs are excepted from this requirement. The existing CalHFA affordability restrictions and related requirements shall continue to restrict Developments using 9% LIHTCs until the later of: (i) the original term of the CalHFA financing; (ii) the QPP; or (iii) the remaining term of the preexisting CDLAC Resolution requirements.

Policy

CALHFA PORTFOLIO LOAN PREPAYMENT POLICY - 06/30/2016
ACQUISITION/REHABILITATION LOAN PROGRAM TERM SHEET
CALHFA PERMANENT LOAN REFINANCE PROGRAM TERM SHEET
SMALL LOAN PROGRAM TERM SHEET
CONDUIT ISSUER PROGRAM TERM SHEET