Oklahoma Administrative Code › Title 330 - Oklahoma Housing Finance Agency › Chapter 30 - Multifamily Housing Bond Program › Subchapter 2 - General Provisions › Section 330:30-2-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
Masculine words, whenever used in this Chapter, shall
				  include the feminine and neuter, and the singular includes the plural, unless
				  otherwise specified. The following words or terms, when used in this Chapter
				  shall have the following meaning, unless the context clearly indicates
				  otherwise. Additional capitalized terms used in these Chapter 30 Rules are
				  defined in the Code and these Chapter 30 Rules. When a conflict exists between
				  the following definitions and the Code, the more restrictive meaning shall be
				  applied.
"Affiliate"
means any Person that directly or
				  indirectly through one (1) or more intermediaries, Controls, is Controlled By,
				  or is Under Common Control With any other Person.
"Applicant"
means any Person and each Affiliate
				  of such Person, which has submitted an Application to OHFA seeking financing
				  under this Chapter. Applicant includes the Owner and Owner's predecessor in
				  interest, if any, and includes any successor in interest, Transferee of all or
				  any portion of the Development, and the heirs, executors, administrators,
				  devisees, successors and assigns of any purchaser, grantee, Transferee Owner or
				  lessee (other than a Resident) of all or any portion of the Development, and
				  any other Person or entity having any right, title, or interest in the
				  Development.
"Application"
means an Application, in the form
				  prescribed by OHFA, from time to time, including all exhibits and other
				  materials filed by an Applicant with OHFA in support, or in connection with
				  financing under this Chapter.
"Application Packet"
(referred to in these Rules
				  as the "AP") means the Application in the form prescribed by OHFA annually,
				  together with instructions and such other materials provided by OHFA to any
				  Person requesting the same for the purpose of seeking to obtain from OHFA MF
				  bonds. OHFA will solicit formal public input on the AP from interested parties,
				  and provide explanation of any significant changes. Staff will present the
				  following year's proposed AP to the Trustees for formal approval at a Trustees
				  meeting. The AP may include definitive statements of what shall constitute
				  Threshold Criteria, priorities, preferences, and compliance and monitoring
				  requirements as may be authorized by or provided for in the Code and these
				  Rules, and may include the necessary forms, instructions and requirements for
				  Applications, market studies, Commitments, Agreements, elections, OHFA staff
				  evaluation criteria for Threshold Criteria, compliance monitoring, and other
				  matters deemed by Trustees, in their complete discretion, to be relevant to the
				  process of evaluation of Applications and the Applicants in connection with the
				  award or denial of MF Bonds.
"Area Median Gross Income"
means the median
				  Gross Income adjusted for household size, for the county or counties where each
				  Building in a Development is located as determined and published annually by
				  HUD.
"Bond Documents"
means and may include, but is
				  not limited to the bond purchase agreement, Preliminary Official Statement, the
				  Official Statement and any other official documents of the Bond
				  Indenture.
"Bond Indenture" or "Bond Trust Indenture"
means
				  the indenture of trust or other contract pursuant to which OHFA issues MF Bonds
				  or other forms of indebtedness to secure proceeds with which to finance the
				  Development pursuant to this Chapter.
"Borrower"
means the Person holding title to the
				  Development and who is financially responsible to MF Bond holders through the
				  Trustee Bank for repayment of the related MF Bonds secured by the
				  Development.
"Building"
means a property containing
				  residential Housing Units located on the Land and included in the Development.
				  In the event more than one Building is located on the Land, each Building must
				  be treated as part of the Development.
"Capital Needs Assessment"
(CNA) means a
				  qualified professional's opinion of a property's current physical condition
				  determined after a physical inspection of the interior and exterior of the
				  units and structures.
"Closing"
means the execution and delivery of
				  the OHFA MF Bonds and the Bond Documents pursuant to, and in accordance with,
				  the Final Resolution of the OHFA Trustees.
"Code"
means the Internal Revenue Code of 1986,
				  as amended and supplemented, together with applicable rules and regulations,
				  revenue rulings, guidelines, releases, pronouncements, notices or procedures
				  promulgated thereunder or referred to therein or in the applicable rules and
				  regulations.
"Compliance Period"
means the period commencing
				  on the later of the first day on which at least ten percent (10%) of the
				  residential rental units in the Development are occupied or the issue date of
				  the Qualified 142(d) Bonds issued to acquire such facility and ending on the
				  latest of the following:
(A) the date that is fifteen years after the date on which at
				  least fifty percent (50%) of the residential rental units in the Development
				  are first occupied;
(B) the first day on which no MF Bonds are
				  outstanding.
"Control"
(including the terms
"Controls
"
, "Controlling", "Controlled
				  By",
and
"Under Common Control With"
) means the possession,
				  directly or indirectly, or the power to direct or cause the direction of the
				  management and policies of any other Person, whether through an ownership
				  interest in the other Person, by contract, agreement, understanding,
				  designation, office or position held in or with the other Person or in or with
				  any other Person, or by coercion, or otherwise.
"Developer"
means the Person or entity with the
				  responsibility of ensuring the effective construction or rehabilitation of the
				  Development, which may also be the Applicant and/or Owner of the Development.
				  Developer also includes any other Person or organization affiliated with,
				  Controlled by, in Control of or a related party to, the Developer, as
				  determined by OHFA.
"Development"
means the Land and one (1) or more
				  Buildings, structures, or other improvements now or hereafter constructed or
				  located upon the Land. If more than one (1) Building is to be part of the
				  Development, each Building must be financed under a common plan.
"Development Team"
means the Applicant,
				  Borrower, Developer, Owner, and the Affiliates and principals of each, the
				  architect, general contractor, appraiser, market analyst, tax
				  professional/accountant, attorney, consultant and property management
				  company.
"Due Date"
if a Due Date for submission of
				  documents or fees falls on a weekend or a designated federal holiday, then the
				  Due Date becomes the next business day.
"Final Resolution" or "Financing Resolution"
means a Resolution duly approved and adopted by the Trustees approving a
				  Development and its financing by OHFA. This Resolution may be combined with or
				  represented by any other Resolution pertaining to the Development and its
				  financing by OHFA, except the Inducement Resolution.
"HUD"
means the United States Department of
				  Housing and Urban Development.
"Inducement Resolution"
means a Resolution
				  adopted by OHFA Trustees pertaining to a specific Development which must be
				  approved and adopted by OHFA Trustees at a separate meeting not less than
				  thirty (30) days prior to the adoption of the Final Resolution.
"Land"
means the site(s) for each Building in
				  the Development and having the legal description set forth described in the
				  regulatory agreement.
"OHFA"
means Oklahoma Housing Finance Agency, a
				  State beneficiary public trust.
"Nonprofit"
means a private Nonprofit
				  organization that is organized under State or local laws; has no part of its
				  net earnings inuring to the benefit of any member, founder, contributor, or
				  individual; is neither Controlled By, nor under the direction of, individuals
				  or entities seeking to derive profit or gain from the organization; has a tax
				  exemption from the Internal Revenue Service under section 501(c) (3) or (4) of
				  the Internal Revenue Code of 1986; does not include a public body; has among
				  its purposes the provision of decent housing that is affordable to low-income
				  persons, as evidenced in its charter, articles of incorporation, resolutions or
				  by-laws; and, has at least a one year history of providing affordable housing,
				  and is duly qualified to do business within the State.
"Owner"
means the legal Owner of record of the
				  Development, as set forth in the regulatory agreement and any and all
				  successors(s) in interest. Owner also means any other Person or entity having
				  or acquiring any right, title, or interest in the Development.
"Person"
means, without limitation, any natural
				  person, corporation, partnership, limited partnership, joint venture, limited
				  liability company, limited liability partnership, trust, estate, association,
				  cooperative, government, political subdivision, agency or instrumentality,
				  Community Housing Development Organization (CHDO), interlocal cooperative, or
				  other organization of any nature whatsoever, and shall include any two or more
				  Persons acting in concert toward a common goal, or any other legally recognized
				  entity, or any combination of the foregoing acting in concert.
"Program Rules"
means the various written
				  criteria, requirement, rules, and policies adopted from time to time by the
				  Trustees to administer the MF Bond Program and to provide for issuance of OHFA
				  MF bonds. The Program Rules must be followed by any participant in the Program.
				  The Program Rules may include requirements that are more stringent than those
				  under Code or other State requirements.
"Qualifying Households"
means households whose
				  annual Incomes do not exceed the elected area median family income set-aside
				  required in the Code.
"Rehabilitation Expenditures"
means amounts that
				  are capitalized and incurred for the addition to or improvement of an existing
				  Building of a character subject to the allowance for depreciation under Section
				  167 of the Code. However, it does not include the costs of acquiring a Building
				  or an interest in it, for example, any Developer fee properly allocated in
				  acquiring a Building or any other soft costs or any amount not permitted by the
				  Code.
"Resident"
means an individual or group of
				  individuals (other than an Owner) residing in a housing unit.
"Resolution"
means an official action by OHFA
				  Trustees and may include all Resolutions adopted by the Trustees with respect
				  to a Development.
"Site Control"
means the exercise of dominion or
				  Control over the property through the execution of a purchase, sale, or
				  long-term lease agreement (with a lease term that exceeds the Compliance
				  Period), receipt of a deed or conveyance of the Land where the Development will
				  be located, or an option to purchase the property (where the option is not
				  revocable on the part of the seller). OHFA alone will decide if an Applicant or
				  Owner has obtained Site Control.
"State"
means the State of Oklahoma.
"Transfer"
means any sale, Transfer, merger,
				  consolidation, liquidation, contribution, assignment, exchange or other change
				  in all or part of the Ownership of the Land and/or Development or any Building
				  which is a part thereof, whether voluntary or involuntary, and also includes: a
				  Transfer, sale, contribution or assignment by the Applicant, Owner or Developer
				  of all or any part of its rights, title or interest in the Application, Credit,
				  Land, Building and/or Development to another party; or a withdrawal, change or
				  addition of any partner to a general partnership, general partner of a limited
				  partnership, any party to a joint venture or the manager of a limited liability
				  company.
"Transferee"
means any and all successor(s) in
				  interest of Owner and any other Person or entity having or acquiring any right,
				  title, or interest in the Development.
"Trustee Bank"
means the bank selected by OHFA
				  to act as trustee under the Bond Indenture executed by OHFA in connection with
				  OHFA's financing of a Development pursuant to this Chapter.
"Trustees"
means the Board of Trustees of
				  OHFA.
Added at 10 Ok Reg 739, eff 1-4-93 (emergency); Added at 10
					 Ok Reg 2009, eff 5-27-93; Amended at 20 Ok Reg 2411, eff 7-11-03; Amended at 30
					 Ok Reg 1974, eff 7-31-13