Florida Administrative Code › 67 - FLORIDA HOUSING FINANCE CORPORATION › 67 - Departmental › Chapter 67-21 - NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC) › Part I - ADMINISTRATION › Section 67-21.0025 - Miscellaneous Criteria

Current through Reg. 50, No. 138; July 16, 2024
(1) A minimum
				  rehabilitation investment is required to assure meaningful, rather than simply
				  cosmetic, rehabilitation of properties. In addition to the alteration,
				  improvement or modification of an existing structure, Rehabilitation or
				  Preservation costs during any 24-month period with respect to the Housing
				  Credit Program must equal or exceed an average of $40, 000 in hard
				  rehabilitation costs per unit and are in addition to the 20% of the property's
				  adjusted basis requirements and minimum qualified basis per low income unit set
				  forth in Section 42(e)(3)(A)(ii)
				  of the IRC. For purposes of this subsection, "hard rehabilitation costs"
				  include site improvements, off-site improvements, rehabilitation costs for
				  physical improvements to the property, and construction contingency and do not
				  include general contractor fees or overhead, general requirements, architect
				  and engineering fees, permit fees, financing or soft costs, or developer
				  fees.
(2) For purposes of this rule
				  chapter, in accordance with Section
				  42 of the IRC, a for-profit entity
				  wholly owned by one or more qualified non-profit organizations will constitute
				  a Non-Profit entity. The purpose of the Non-Profit must be, in part, to foster
				  low-income housing and such purpose must be reflected in the Articles of
				  Incorporation of the Non-Profit entity. A Non-Profit entity shall own an
				  interest in the Development, either directly or indirectly; shall not be
				  affiliated with or controlled by a for-profit Corporation; and shall materially
				  participate in the development and operation of the Development throughout the
				  total affordability period as stated in the MMRB Land Use Restriction Agreement
				  and the Extended Use Agreement, as applicable. If an Applicant applies to the
				  Corporation as a Non-Profit entity but does not qualify as such, the
				  Application will fail threshold.
(3) Total Development Cost includes the
				  following:
(a) The cost of acquiring real
				  property and any buildings thereon, including payment for options, deposits, or
				  contracts to purchase properties, of which the total cost cannot exceed the
				  appraised value of the real property as determined in the Credit Underwriting
				  process.
(b) The cost of site
				  preparation, demolition, and development.
(c) Any expenses relating to the issuance of
				  Tax-exempt Bonds or Taxable Bonds related to the particular
				  Development.
(d) Fees in connection
				  with the planning, execution, and financing of the Development, such as those
				  of architects, engineers, attorneys, accountants, Developer Fee, and the
				  Corporation. However, fees of the Applicant's or Developer's attorney(s)
				  awarded in conjunction with litigation against the Corporation with respect to
				  a Development shall not be included in Total Development Cost.
(e) The cost of studies, surveys, plans,
				  permits, insurance, interest, financing, tax and assessment costs, and other
				  operating and carrying costs during construction, rehabilitation, or
				  reconstruction of the Development.
(f) The cost of the construction,
				  rehabilitation, and equipping of the Development.
(g) The cost of land improvements, such as
				  landscaping and offsite improvements related to the Development, whether such
				  costs are paid in cash, property, or services.
(h) Expenses in connection with initial
				  occupancy of the Development.
(i)
				  Allowances for contingency reserves and any anticipated operating reserves as
				  recommended by the Credit Underwriter and approved by the
				  Corporation.
(j) The cost of such
				  other items, including relocation costs, indemnity and surety bonds, premiums
				  on insurance, and fees and expenses of trustees, depositories, and paying
				  agents for the Corporation's bonds, for the construction or Rehabilitation of
				  the Development.