Missouri Code of State Regulations › Title 4 - Department of Economic Development › Division 170 - Missouri Housing Development Commission › Chapter 7 - Missouri Housing Trust Fund › Section 4 CSR 170-7.600 - Procedures for Contesting Decisions by the Commission Regarding the Funding and Recapture of Missouri Housing Trust Fund Funds

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule provides the proper procedures to
				  be used by a grantee in order to dispute any decision made by the commission
				  staff to recapture Missouri Housing Trust Fund funds previously awarded to a
				  grantee.
(1) All disputes
				regarding the recapture of Missouri Housing Trust Fund (MHTF) funds shall be
				handled as informally as practicable, consistent with the fundamental
				principles of fairness, using the following procedures:
(A) In the event the commission staff orders
				a recapture of MHTF funds pursuant to
				4
				CSR 170-7.500(9), the grantee shall
				have thirty (30) days from the date on which notice is delivered to it to
				exercise its rights under this subsection by sending notice to the trust fund
				manager indicating its intent to dispute the recapture of funds and requesting
				a hearing with the commission's director of operations;
(B) If the grantee fails to contest the
				commission staff's decision within thirty (30) days from the date upon which it
				receives notice of the commission staff's intent to recapture, the opportunity
				of the grantee to exercise the rights provided for in this section shall be
				deemed waived and the decision of the commission staff to recapture MHTF funds
				from the grantee shall be deemed final;
(C) If the grantee provides a timely response
				to the notice and exercises its right to a hearing with the director of
				operations, the director of operations shall hold a hearing with the grantee
				within thirty (30) days of the date on which the request for a hearing is
				received by the trust fund manager. The deadline for conducting a hearing may
				be extended for one (1) additional thirty (30) day period upon written request
				of either the director of operations or the grantee requesting the hearing,
				provided that notice of the request for extension must be provided to all
				parties;
(D) The following
				guidelines shall apply to the hearing held by the director of operations:
1. The hearing shall not be considered a
				contested case;
2. The hearing
				shall be informal and no formal rules of evidence or procedure shall
				apply;
3. The commission may have
				its counsel present at the hearing;
4. The grantee may be represented by counsel
				at the hearing and shall have the right to present evidence or arguments
				relevant to the grounds upon which the recapture action is based. If the
				grantee elects to be represented by counsel at the hearing, it shall notify the
				director of operations of this intent at least five (5) days prior to the
				scheduled hearing; and
5. The
				director of operations, in reaching his/her decision may consider information
				from any source which is relevant to the recapture of grant funds and shall
				consider all facts and circumstances upon which the proposed recapture of funds
				is based;
(E) Within
				thirty (30) days of the date on which the hearing is held, the director of
				operations shall issue a decision in writing to the grantee, which decision
				shall be mailed to the grantee by certified mail, return receipt requested.
1. If the director of operations determines
				that recapture of MHTF funds is not warranted, the decision shall notify the
				grantee that its MHTF funds will not be recaptured on the grounds for which the
				hearing was held.
2. If the
				director of operations determines that recapture of MHTF funds is warranted, it
				shall notify the grantee of the grounds upon which such decision was reached.
				It shall further notify the grantee of its right to appeal the decision to the
				committee of directors pursuant to subsection 4 CSR 170.7-600(1)(G), as well as
				the time within which such request for a hearing with the committee of
				directors must be provided to the director of operations. The time for the
				filing of such request shall be thirty (30) days from the date on which the
				decision of the director of operations is received by the grantee;
(F) If the grantee fails to
				contest the director of operations' decision within thirty (30) days from the
				date upon which it receives notice of such decision, the grantee's right to
				appeal the decision shall be deemed waived and the decision of the director of
				operations shall be deemed final;
(G) If the grantee provides a timely response
				to the notice and exercises its right to appeal the decision of the director of
				operations, the committee of directors shall hold a hearing with the grantee
				within thirty (30) days of the date on which the request for a hearing is
				received by the director of operations. The deadline for conducting a hearing
				may be extended for one (1) additional thirty (30) day period upon written
				request of either the committee of directors or the grantee requesting the
				hearing, provided that notice of the request for extension must be provided to
				all parties;
(H) The following
				guidelines shall apply to the hearing held by the committee of directors:
1. The hearing shall not be considered a
				contested case;
2. The hearing
				shall be informal and no formal rules of evidence or procedure shall
				apply;
3. The commission may have
				its counsel present at the hearing;
4. The grantee may be represented by counsel
				at the hearing and shall have the right to present evidence or arguments
				relevant to the grounds upon which the recapture action is based. If the
				grantee elects to be represented by counsel at the hearing, it shall notify the
				committee of directors of this intent at least five (5) days prior to the
				scheduled hearing; and
5. The
				committee of directors, in reaching its decision may only consider items in the
				record of the hearing held by the director of operations. However, the
				committee of directors may also consider evidence that was not available at the
				initial hearing, but only if the party offering the additional evidence can
				show good cause for why it was not presented at the initial hearing. The
				committee of directors shall uphold the director of operations' decision unless
				it determines that the director of operations' decision was not based on
				competent and substantial evidence. If the committee of directors determines
				that the decision of the director of operations was not based on competent and
				substantial evidence, it may either-
A.
				Overrule the decision of the director of operations and reinstate such amounts
				of the grantee's funding under its grant agreement as the committee of
				directors may deem appropriate; or
B. Remand the matter back to the director of
				operations if it determines that further investigation and fact gathering is
				necessary before a final conclusion may be reached. If the matter is remanded
				back to the director of operations, after the necessary additional
				investigation and/or fact gathering is completed, the director of operations
				will issue its determination, which shall be subject to appeal using the same
				procedures as set forth in subsections
				4
				CSR 170-7.600(1)(E)-(H);
				and
(I)
				Within thirty (30) days of the date upon which the appeal hearing is held, the
				committee of directors shall issue a decision in writing to the grantee, which
				shall be mailed by certified mail, return receipt requested. This decision
				shall be considered the final decision of the commission on the matter.
				However, this decision of the committee of directors shall not be considered
				final if it finds appropriate grounds to remand the matter back to the director
				of operations pursuant to subparagraph
				4
				CSR 170-7.600(1)(H) 5.B. If the
				matter is remanded back to the director of operations, the same procedures
				spelled out in subsections
				4
				CSR 170-7.600(1)(C)-(I) shall apply
				for all further proceedings with the director of operations and/or the
				committee of directors until a final decision is reached.