Loan Portfolio Restructuring Program
The Loan Portfolio Restructuring Program helps preserve and improve affordable multifamily housing in California by restructuring existing state housing loans for better long-term viability.
Funder: California Department of Housing & Community Development
Due Dates: Ongoing (applications accepted year-round)
Funding Amounts: No fixed award; funding and restructuring terms are project-specific and based on loan size, transaction type, and program guidelines.
Summary: Supports the restructuring of existing state multifamily housing loans to preserve and improve affordable housing in California.
Key Information: Program is open continuously; eligibility and terms are governed by recently amended guidelines (as of June 9, 2026).
Description
The Loan Portfolio Restructuring Program (LPR) is designed to preserve and enhance affordable multifamily housing in California by restructuring existing state-funded or state-monitored loans. The program addresses properties at risk due to expiring regulatory agreements, physical deterioration, or financial instability. It enables a variety of restructuring transactions—such as loan term extensions, subordination to new senior debt, early payoffs, and the extraction of equity for reinvestment in affordable housing. The LPR also supports the rehabilitation or replacement of affordable units, including conversions of single-room occupancy (SRO) units, and implements recent legislative amendments to expand eligibility and update compliance requirements.
