Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 140 - RULES AND REGULATIONS FOR THE ACQUISITION OF MULTI-FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-140-30 - Terms of acquisition and construction loan

Current through Register Vol. 40, No. 24, July 15, 2024
The purchase price for a development to be acquired by the
				  authority pursuant hereto shall be determined by the authority in such manner
				  and shall be based upon such factors (including the fair market value of the
				  development based on an appraisal thereof as well as on the estimated costs of
				  the construction of the development, if applicable) as it deems relevant to the
				  security of its ownership interest in the development and the fulfillment of
				  its public purpose. The terms and conditions of such acquisition shall be
				  contained in the commitment described in
				  13VAC10-140-50 and in the
				  contract, if any, to acquire the development described in
				  13VAC10-140-60.
With respect to any development which the authority
				  contracts to acquire, the authority may assign all of its right, title and
				  interest under such contract to acquire such developments to an entity (a
				  "successor entity") formed by the authority, on its own behalf or in
				  conjunction with other parties, to serve as the housing sponsor for such
				  development pursuant to § 36-55.33:2 of the Code of Virginia and may
				  provide a mortgage loan to such entity to finance the acquisition and ownership
				  of the development.
The authority may charge a processing fee to the applicant
				  and a processing fee and financing fee to the successor entity (if any) in such
				  amount as the executive director determines to be reasonable. Such fees shall
				  be payable at initial closing or at such other times as required by the
				  executive director.
In addition to the acquisition of developments, the
				  authority may make or finance construction mortgage loans secured by a lien on
				  real property or, subject to certain limitations in the Act, a leasehold estate
				  in order to finance the construction of such developments. The term of such a
				  construction loan shall be equal to the period determined by the executive
				  director to be necessary to complete construction of the development and to
				  consummate the acquisition thereof by the authority. Such construction loans
				  shall be made on such other terms and conditions as the authority shall
				  prescribe in (i) the commitment described in 13VAC10-140-50 and(ii) any other
				  applicable initial closing documents, described in
				  13VAC10-140-60. Such construction
				  loans may be made to:
(i) for-profit
				housing sponsors in original principal amounts not to exceed the lesser of the
				maximum principal amount specified in the commitment or such percentage of the
				estimated housing development costs of the development as is established in
				such commitment, but in no event to exceed 95%, and
(ii) nonprofit housing sponsors in original
				principal amounts not to exceed the lesser of the maximum principal amount
				specified in the commitment or such percentage of the estimated housing
				development costs of the development as is established in such commitment, but
				in no event to exceed 100%. The maximum principal amount and percentage of
				estimated housing development costs specified or established in the commitment
				shall be determined by the authority in such manner and based upon such factors
				as it deems relevant to the security of the mortgage loan and the fulfillment
				of its public purpose. Such factors may include the fair market value of the
				proposed development as completed. In determining the estimated housing
				development costs, the categories of costs which shall be includable therein
				shall be those set forth in the authority's rules and regulations for
				multi-family housing developments to the extent deemed by the executive
				director to be applicable to the proposed development.
The interest rate on the construction loan shall be
				  established at the initial closing and may be thereafter adjusted in accordance
				  with the authority's rules and regulations and the terms of the deed of trust
				  note. The authority shall charge a processing fee and a financing fee in such
				  amounts as the executive director determines to be reasonable. Such fees shall
				  be payable at initial closing or at such other times as required by the
				  executive director.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.