Florida Administrative Code › 67 - FLORIDA HOUSING FINANCE CORPORATION › 67 - Departmental › Chapter 67-21 - NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC) › Part II - MULTIFAMILY MORTGAGE REVENUE BOND PROGRAM › Section 67-21.017 - Transfer of Ownership of a MMRB Development

Current through Reg. 50, No. 138; July 16, 2024
(1) Any transfer of ownership of any
				  Development in which the MMRB Loan is outstanding and/or within the Qualified
				  Project Period shall be subject to compliance with the provisions of this
				  section, provided that transfers of the limited partnership interest or limited
				  liability company interest in the owner to a Housing Credit Syndicator, or the
				  transfer of ownership to a creditor by means of foreclosure or deed in lieu of
				  foreclosure, need not comply with this provision. The determination of whether
				  a transfer of ownership of a Development shall be deemed to take place for
				  purposes of this rule shall be made in accordance with the provisions of the
				  MMRB Land Use Restriction Agreement and other Program Documents for such
				  Development. Owners shall advise the Corporation in writing of any change of
				  ownership of the owner aggregating 50 percent or more of ownership interests in
				  the owner within any six-month period.
(2) A request for transfer of ownership shall
				  be submitted to the Corporation in writing and include evidence that the
				  current owner has agreed to the proposed sale. A detailed opinion letter from
				  the legal counsel for the current owner or prospective purchaser describing the
				  scope of the proposed transaction must also be provided. The Corporation shall
				  review the letter and, if acceptable, assign a Credit Underwriter. The Credit
				  Underwriter will notify the current owner and prospective purchaser of any
				  additional information necessary to complete its Credit Underwriting
				  Report.
(3) Upon demonstration of
				  compliance with the provisions of this section, and favorable consideration by
				  the Board of Directors of the Credit Underwriting Report, the Corporation shall
				  assign a Bond Counsel, Special Counsel, and other professionals as needed to
				  effect the transfer.
(4) Prior to
				  the transfer of ownership:
(a) The Credit
				  Underwriter shall conduct a Credit Underwriting of the prospective purchaser
				  upon any transfer of ownership. Additionally, the prospective purchaser shall
				  be notified that any refunding of Bonds associated with such Development shall
				  require a full Credit Underwriting of the Development. The prospective
				  purchaser and the conditions of the assumption of the Program Documents must be
				  approved by the Credit Underwriter as meeting the terms of its Credit
				  Underwriting Report, Bond Counsel and Special Counsel as complying with all
				  applicable legal requirements, and the Corporation as meeting the stated
				  purposes of the Corporation;
(b)
				  All outstanding fees owing to the Corporation or any of its assigned
				  professionals shall be paid;
(c) In
				  addition to any related professional fees, the Corporation shall charge a
				  non-refundable transfer fee of $2, 500. The applicable fee will be determined
				  by the rule in effect at the time of the transfer request.
(d) All requests which only require
				  subordination of the regulatory agreements must be submitted in writing to the
				  Multifamily Bonds/Loans Director and contain the specific details of the
				  subordination. In addition to any related professional fees, the Corporation
				  shall charge a non-refundable subordination fee of $1, 000 for each regulatory
				  agreement to be subordinated. The applicable fee will be determined by the rule
				  in effect at the time of the subordination request.
(e) The Development shall be in compliance
				  with all existing regulatory requirements imposed by the Corporation or its
				  predecessor; and,
(f) If the
				  set-aside requirements in the MMRB Land Use Restriction Agreement are expired
				  or have less than 12 months remaining, such agreement shall be extended for a
				  minimum of two years from the date of closing. All transfer of ownership
				  transactions shall be subject to all conditions of the Credit Underwriting
				  Report including the requirements for a guarantee of recourse obligations and
				  an environmental indemnity from the assuming owner.