1. FY 2017
Multifamily Preservation and Revitalization (MPR)
Notice of Solicitation of Applications (NOSA)

2. MPR Background
A demonstration program authorized by the Consolidated Appropriations Act
Goal - to ensure existing RD rental properties will continue to deliver decent, safe and sanitary housing for 20 years or the remaining term of any currently outstanding RD loan
The MPR is a Demonstration program that officially started in 2006 and is authorized by the Consolidated & Further Continuing Appropriations Act.
The goal for projects participating in this program is to extend their affordable use without displacing tenants because of increased rents.

3. Things You Should Know…
NOSA published September 5, 2017, Federal Register Vol. 82, No. 170
2017 MPR NOSA and MPR Pre-application posted on public website and SharePoint website

4. Things You Should Know…
Federal Register NOSA link -
Public Website NOSA link -
MPR Pre-application form link -

5. Things You Should Know…
Two application deadlines for FY 2017:
Debt deferral plus other MPR funding tools open from 9/5/2017 to 12/1/2017 (5:00 pm Eastern Time)
Debt deferral only open from 9/5/2017 to 9/28/2018 (5:00 pm Eastern Time)
The deadline for receipt of MPR pre-applications is December 1, 2017 unless the request is for deferral only. The deadline for deferral only requests is September 28, These dates are firm. Any pre-applications along with any supporting documentation as outlined in the NOSA not received electronically by these dates will not be accepted. Problems with transmitting is not an acceptable reason for not meeting the deadline.

6. 2017 NOSA Changes
What’s Changing???

7. 2017 NOSA Changes
Removed limitation for number of properties in a Portfolio transaction
For Stay-in-owner proposals - Projects with a “C” classification for 24 months or longer with Open Findings that were within the owner’s ability/control to cure at the time the MPR pre-application is filed will not be eligible to participate in the MPR demonstration program
In the last NOSA, Portfolio transactions were limited to 15 properties. There is no limit under this NOSA.
For a Stay-in-Owner proposal, if the property has had a “C” classification for 2 years or more with open findings that were within the owner’s ability to cure at the time the MPR pre-application was filed, will not be eligible to participate.

8. 2017 NOSA Changes
MPR Grant funds (to non-profit applicants only) may include accessibility and fair housing mandates identified by a CNA accepted by the Agency and no longer limited to correcting health and safety violations.
Minor revisions to the scoring outlined in Section V of the NOSA
Grants are no longer limited to the cost of correcting health and safety violations of a project. Accessibility and fair housing mandates identified by a CNA accepted by the Agency may also be included.

9. 2017 NOSA Changes
MPR funds may be used to add new units, and/or reconfigure the present units, within the existing footprint of a project’s current or previously resident-occupied structure(s).
So long as the need is documented in a market study or another information source acceptable to the Agency (e.g., converting the non-residential portion of mixed-used space into residential units).

10. 2017 NOSA Changes
Allow transfer transaction applicants to include, at their own risk, MPR Zero Percent and/or MPR Soft Second loans in their transfer proposals.
Must be submitted as a second feasibility scenario in addition to their primary proposal with MPR Deferral.
May not exceed $15,000/per unit for the MPR Zero Percent loan and $15,000/per unit for MPR Soft Second loan for a combined maximum of $30,000/per unit for Zero Percent and Soft Second loans combined.

11. 2017 NOSA Changes Second feasibility scenario (continued)
If MPR funds are not available or the transfer is not feasible without those funds, the applicant may choose to wait for MPR funds to become available.
If the applicant must move forward without MPR funds, it’s the applicant’s responsibility, not the Agency’s, to secure additional funding comparable to the rates and terms of the MPR loan funds from other non-Agency sources to replace the MPR tools.
Must formally acknowledge that they understand inclusion of those funds in the underwriting constitutes neither an approval nor a commitment of any MPR funds by the Agency
The PAT has been upgraded from 6.0 to 6.1 to allow for the Second Scenario proposal.

12. 2017 NOSA Changes
MPR Tools

13. Funding Opportunities
RD may offer one or more of the following MPR tools (excluding Exiting Project deferral only transactions):
Debt Deferral (Restructuring P&I)
Up to 20 years for all 515 or 514 loan(s) – pre and post credit reform existing loans
MPR Grant
Available only to 515 nonprofit applicants only
Limited to curing health and safety violations and accessibility and fair housing mandates identified by a CNA
Generally, no more than $5,000/unit

14. Funding Opportunities
Zero Percent loan – not deferred: payments required
515 Projects max 30 yr. term/50 yr. amortization
514/516 Projects - max term/amortization 33 yrs.
MPR Soft Second (aka “Bullet” loan)
Loan with a one percent interest rate
Accrued interest & principal deferred to a balloon payment
Balloon payment due at same time latest maturity of Section 515 or 514 loan already in place is due or the modified maturity date of any current loan being reamortized.

15. Other Funding Resources
RD Section 515 Rehabilitation loan funds
RD Sections 514/516 Off-Farm rehabilitation loan/grant funds
RD Section 538 Guaranteed RRH
RD MFH Preservation Revolving Loan Funds
Third-party loans, grants, tax credits and tax-exempt financing
Owner-provided capital contributions
Excess funds

16. Uses of MPR Funds
Repair/replace existing physical components of a property
MPR Funds may NOT be used to fund:
New building for community rooms, additional parking areas, playgrounds or laundry rooms
New units may be needed to meet the 5% fully accessible requirement defined by Uniform Federal Accessibility Standards (UFAS) & Fair Housing requirements on case by case basis

17. Restructuring Transaction Categories
Four (4) Categories of Transactions – Exiting Project Deferral, Simple, Complex and Portfolio
Exiting Project Deferral - where all Agency mortgages on the property are maturing on or before December 31, 2023
no change in ownership
CNA not required
will be reamortized or restructured to the maximum term allowed prior to debt deferral
do not require review by the MPR Loan Review Committee

18. Restructuring Transaction Categories
Simple
stay in owner, typically 1 project but may include the consolidation of project phases owned by the same entity into one project – submit 1 pre-application
Complex
Transfer of 1 or more projects or a Transaction requiring agency subordination as a result of 3rd party funding requirement.
If more than 1 property - must be in the same market area and must be consolidated
Submit 1 pre-application form listing all projects
- At closing only one project remains

19. Restructuring Transaction Categories
Portfolio
2 or more projects with a stay in owner; or
2 or more projects with multiple project sales to a common purchaser all located in one state
Each project included in the portfolio will be submitted on a separate pre-application unless some projects being consolidated and must have the same portfolio name
Projects being consolidated must be listed on one pre-application form
One or more projects may be removed & the portfolio still eligible if at least 2 projects remain
At closing at least 2 projects remain

20. MPR Process – General Steps
Pre-application submission
Eligible Projects
Scoring and Ranking
Formal Applications
Financial Feasibility
MPR Agreements
There are 6 general steps of the MPR application process.

21. Pre-application Submission
Applicants submit MPR pre-application form and any required documentation
Exiting Project Deferral Only (pre-application only required)
Electronic Submissions Only Accepted
Applicant receives instant notification pre-application received electronically
Recording time of receipt:
Electronic pre-applications receive actual date & time received in MPR mail box

22. Questions
Any Questions?