Louisiana Administrative Code › Title 16 - COMMUNITY AFFAIRS › Part II - Housing Programs › Chapter 3 - CHDO Homeownership Housing Program (Revolving Loan Pool) › Section II-303 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
Abandoned
-a housing unit which has been
							certified by the developer/owner and the local jurisdiction within which the
							housing unit is located that the unit has been vacant for at least 18
							months.
Accessible
-a site, building, facility, or
							portion thereof that complies with the Uniform Federal Accessibility Standards
							and that can be approached, entered, and used by physically disabled
							people.
Adaptable
-the ability of certain building
							spaces and elements, such as kitchen counters, sinks, and grab bars, to be
							added or altered so as to accommodate the needs of either disabled or
							nondisabled persons, or to accommodate the needs of persons with different
							types or degrees of disability.
Application
-the CHDO Homeownership Housing
							Program (Revolving Loan Pool) HOME project summary.
Appraised Value
-an appraisal by an
							individual or form which is acceptable to FHA, VA, RECD, FNMA or the PMI
							insurer, as applicable, subject to the right of the issuer to further limit the
							pool of acceptable individuals or firms.
Builder
-the general contractor or any other
							entity executing a contract with the developer to construct and/or rehabilitate
							a housing unit.
Builder Profit Fee Base
-Line 49 of the
							estimate and certificate of actual cost certified in accordance with generally
							accepted accounting principles by an independent certified public accountant as
							having been incurred and reduced by any general overhead (Line 44).
CHDO
-a Community Housing Development
							Organization as defined at 24 CFR 92.2 of the federal
							regulations.
Debarred Developer
-any developer who is
							sanctioned or prohibited from participating in any housing program sponsored by
							any federal agency or by any state or local government or by any
							instrumentality of a federal, state or local government.
Developer
-any person or entity (including
							persons or entities which are related to or have an identity of interest with
							such person or entity) which owns or develops a project, including any general
							partner of a partnership, any builder related to or having an identity of
							interest with the person or entity which owns or develops the project and any
							consultant receiving any fee or compensation to help develop a project.
Developer Fee
-any profit or income realized
							by the developer in connection with the development of the project.
Developer Fee Base
-the development costs of
							a project reduced by any acquisition costs and all developer fees (including
							builder profit and overhead when there is an identity of interest between the
							builder and the developer).
Development Costs
-the capitalized costs of a
							building certified in accordance with generally accepted accounting principles
							by an independent certified public accountant as having been incurred as of the
							placed-in service date of the building.
Elderly Household
-a household composed of
							one or more persons at least one of whom is 62 years of age or more at the time
							of initial occupancy.
Eligible Borrower
-any person having an
							ownership interest in the residential housing unit:
1. who is expected to principally and permanently live in the
							residence being financed within a reasonable period of time (not to exceed 60
							days) following the closing of the mortgage loan;
2. who is primarily or secondarily liable on the mortgage and
							has, in the case of a conventional mortgage loan, received home buyer training
							from a FNMA certified home buyer training program;
3. whose annualized monthly income does not exceed the
							maximum permissible household income as set forth in Exhibit III of this CHDO
							homeownership financing program HOME project summary application, as may be
							amended from time to time;
4. who is a first-time home buyer; provided, however, that
							for purposes of this definition, the term
eligible borrower
shall not include a mere cosigner of the mortgage loan who does not have an
							ownership interest in the residential housing unit being financed pursuant to
							such mortgage loan.
Existing Housing
-housing units which have
							previously been occupied.
FNMA
-the Federal National Mortgage
							Association.
First-Time Home Buyer
-a mortgagor, other
							than a mortgagor with respect to a qualified rehabilitation loan, who has not
							had a present ownership interest in a residence at any time during the
							three-year period ending on the date the mortgage is executed, or a mortgagor
							who is the first resident of a residence following the completion of a
							qualified rehabilitation of the residence.
Governmental Assistance
-includes any loan,
							grant, guarantee, insurance, payment, rebate, subsidy, credit tax benefit, or
							any other form of direct or indirect assistance from the federal, state or
							local government for use in, or in connection with, a specific housing
							project.
Handicapped Equipped Units
-units which are
							accessible and in which certain building spaces and elements, such as kitchen
							counters, sinks, and grab bars have been added or attached so as to accommodate
							the needs of a handicapped household.
Handicapped Household
-a household composed
							of one or more persons at least one of whom is considered to have a physical,
							mental or emotional impairment which:
1. is expected to be of long-continued and indefinite
							duration;
2. substantially impedes the ability to live independently;
							and
3. is of such a nature that such ability could be improved by
							more suitable housing conditions. A person shall be considered handicapped
							if:
a. such person has a developmental disability as defined in
							Section 102(7) of the Developmental Disabilities Assistance and Bill of Rights
							Act [  42 U.S.C. 60001(7)  ]; or
b. such person is infected with the Human Acquired
							Immunodeficiency Virus (HIV) who is disabled as a result of infection with the
							HIV; or
c. such person has a severe and persistent mental or
							emotional impairment that seriously limits his or her ability to live
							independently, and whose impairment could be improved by more suitable housing
							conditions.
Hard Costs
-Line 49 of the estimate and
							certificate of actual costs.
HOME/MRB Program
-the agency's program for
							financing mortgage loans with a combination of HOME funds and proceeds of
							mortgage revenue bonds.
Home Buyer Training Program
-a program (other
							than a self-instruction program) recognized by FNMA or the agency for
							first-time home buyers and which is provided by independent third-party
							contractors or by a CHDO authorized to provide first-time home buyer
							training.
HQS Standards
-the Housing Quality Standards
							promulgated in HUD regulations at  24 CFR 882.109, including the basic
							"performance requirements" with respect to the following:
1. sanitary facilities;
2. food preparation and storage space;
3. space and security;
4. thermal environment;
5. illumination and electricity;
6. structure and materials;
7. interior air quality;
8. water supply;
9. lead-based paint;
10. access;
11. site and neighborhood; and
12. sanitary condition.
HUD
-the U.S. Department of Housing and Urban
							Development.
Independent Qualified Housing Consultant
-a
							professional housing consultant who has no identity of interest with any
							builder or developer in any state and who, by virtue of academic training,
							licensing and/or experience, is a recognized expert skilled in the requirements
							of conducting a market survey and demand study.
Lender
-a financial institution that is
							participating as a lender under the agency's HOME/MRB Program.
Local Nonprofit Sponsor
-a Section 501(c)(3) organization in which not more than 15 percent of the members of the governing
							board are domiciled outside the service area of the nonprofit and at least 75
							percent of the governing board are domiciled within the market area of the
							project or is a state-certified Community Housing Development Organization
							(CHDO) with a service area encompassing the market area of the project.
Market Area
-in rural areas or municipalities
							with a total population of less than 75,000, an area encompassing at least the
							parish within which the project is located; and in municipalities of 75,000 or
							more, an area encompassing only the municipality if the housing consultant
							certifies that such a limitation is appropriate in view of demographic and
							mobility factors permitting the limitation of the market areas only to the
							municipality.
Maximum Permissible Acquisition Cost
							Limits
-the applicable amount set forth in Exhibit II of the HOME
							project summary application as updated from time to time by the issuer.
Maximum Permissible Household Income
							Limits
-with respect to an eligible borrower acquiring a residential
							housing unit in a parish, the applicable limits for such parish set forth in
							Exhibit III of the HOME project summary application as updated from time to
							time by the issuer.
Maximum Sales Price
-the FHA 203(b) mortgage
							insurance limits for the area within which the project is located.
Minimum HQS
-
1. the Section 8 Minimum Housing Quality Standards at  24 CFR
							882.109  and all applicable state and local codes (including the
Southern Building Code
), rehabilitation standards, ordinances
							and zoning ordinances;
2. with respect to new construction, the current edition of
							the
Model Energy Code;
and
3. with respect to substantially rehabilitated housing, the
							cost-effective energy conservation and effectiveness standards in 24 CFR part
							39.
Minimum Property Standards
-the minimum
							property standards in 24 CFR
							200.925 or
							200.926 or MPS.
New Construction
-housing units which have
							not previously been occupied.
Phase
-the construction of not more than the
							lesser of five units or 20 percent of all the units proposed in the
							application.
Pre-Qualified Applicant
-a prospective
							eligible borrower who has completed a home buyer training program.
Qualified Rehabilitation
-any rehabilitation
							of a building occupied by an owner prior to the beginning of rehabilitation and
							certified by a CHDO on Exhibit IV of the HOME project summary application as
							satisfying the following conditions:
1. there is a period of at least 20 years between the date on
							which the building was first used (for residential or commercial purposes) and
							the date on which the physical work on such rehabilitation begins;
2. in the rehabilitation process:
a. 50 percent or more of the existing external walls of such
							building are retained in place as external walls;
b. 75 percent or more of the existing external walls of such
							building are retained in place as internal or external walls; and
c. 75 percent or more of the existing internal structural
							framework of such building is retained in place; and
3. the expenditures for such rehabilitation are in an amount
							at least equal to 25 percent of the eligible borrower's adjusted basis (for
							federal income tax purposes) in the residence.
For purposes of Paragraph 3, the eligible borrower's adjusted
							basis shall be determined as of the completion of the rehabilitation or, if
							later, the date on which the eligible borrower acquires the residence.
RD
-the Rural Development Division of the
							U.S. Department of Agriculture.
RD Target Area
-an area designated in writing
							by Rural Development of the U.S. Department of Agriculture as a priority area
							for financing housing under the 515 Housing Program.
Replacement Cost
-with respect to a project
							involving substantial rehabilitation, the cost of new construction of a project
							with identical unit and square footage configuration at the site.
Scattered Site
-a project consisting of
							multiple buildings containing housing units provided that each building is
							located on a single lot and provided further that each building may not contain
							more than one housing unit.
Substandard
-any housing unit which does not
							satisfy the HQS standards and which requires substantial rehabilitation.
Substantial Rehabilitation
-any
							rehabilitation in which the hard costs equal or exceed $15,000 per unit or in
							which the rehabilitation satisfies the requirements of a qualified
							rehabilitation.
Total Development Cost
-development costs
							plus the cost of land.
Townhouse Units
-a single-family housing unit
							which shares a common wall with another single-family housing unit but which is
							located on land to which title is transferred to the homeowner.
Vacant
-a housing unit which is certified by
							the CHDO/owner and the local jurisdiction to have not been occupied for a
							period of at least 90 days, and which is reasonably expected to remain vacant
							for an indefinite duration because the unit is substandard.
AUTHORITY NOTE:
							Promulgated in accordance with
							R.S.
							40:600.6.