Transfer of Physical Assets (TPA)

A Transfer of Physical Assets (TPA) requires CalHFA approval as indicated in the Regulatory Agreement for the project. Prior to transfer, the Agency must approve the Purchaser and Management Agent. The purchaser is not authorized to transfer any interest in, take possession of, or assume the burdens and benefits of ownership of the subject development without the prior written approval of CalHFA.

A transfer will be permitted where Agency interests in the development are adequately protected. Approval will be conditional on the correction of any physical or financial condition which threatens the viability of the development as security for the loan or which undermines the achievement of the Agency's public purpose in providing the loan. Any deficiencies in operations, physical condition or financial status of the development will be identified during the review process and binding written conditions addressing deficiencies will be developed. These conditions will be incorporated in the Agency's approval letter together with the general requirements. Approval will always be conditional upon the transferee's assumption of the obligations of the Regulatory Agreement and other loan documentation.

Effective October 1, 2020, CalHFA has updated its TPA policy to align its fees with current market conditions. The following non-refundable fees will be due at the time of the initial TPA, or other transaction request (each of the transaction fees describer below is subject to increase on a case by case basis due to complexity and/or delay in the transaction). Fees are due before CalHFA starts performing any work on the transaction and are non-refundable. Please contact your Asset Manager to begin the TPA process.