Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 20 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-20-40 - Application and acceptance for processing

Current through Register Vol. 40, No. 24, July 15, 2024
Application for a mortgage loan shall be commenced by filing
				  with the authority an application, on such form or forms as the executive
				  director may from time to time prescribe, together with such documents and
				  additional information as may be requested by the authority. The applicant
				  shall complete a previous participation certificate, in such form as the
				  executive director shall require, which shall provide information about rental
				  housing projects in which the principal participants (or their affiliates) in
				  the proposed development have previously had any interest or participation, all
				  as more fully specified by the executive director.
The authority's staff shall review each application and any
				  additional information submitted by the applicant or obtained from other
				  sources by the authority in its review of each proposed development. Such
				  review shall be performed in accordance with subdivision 2 of subsection D of
				  § 36-55.33:1 of the Code of Virginia and shall include, but not be limited
				  to, the following:
1. An analysis of
				the site characteristics, surrounding land uses, available utilities,
				transportation, employment opportunities, recreational opportunities, shopping
				facilities and other factors affecting the site;
2. An evaluation of the ability, experience,
				financial capacity and predisposition to regulatory compliance of the
				applicant;
3. A preliminary
				evaluation of the estimated construction costs and the proposed design and
				structure of the proposed development;
4. A preliminary review of the estimated
				operating expenses and proposed rents and a preliminary evaluation of the
				adequacy of the proposed rents to sustain the proposed development based upon
				the assumed occupancy rate and estimated construction and financing costs;
				and
5. A preliminary evaluation of
				the need for such housing at rentals or prices which persons and families of
				low and moderate income can afford within the general housing market area to be
				served by the proposed development.
Based on the authority's review of the applications, previous
				  participation certificates, documents, and any additional information submitted
				  by the applicants or obtained from other sources by the authority in its review
				  of the proposed developments, the executive director shall accept for
				  processing those applications which he determines satisfy the following
				  criteria:
1. The applicant either owns
				or leases the site of the proposed development or has the legal right to
				acquire or lease the site in such manner, at such time and subject to such
				terms as will permit the applicant to process the application and consummate
				the initial closing.
2. Subject to
				further review and evaluation by the authority's staff under
				13VAC10-20-50, the estimated
				construction costs and operating expenses appear to be complete, reasonable and
				comparable to those of similar developments.
3. Subject to further review and evaluation
				by the authority's staff under
				13VAC10-20-50, the proposed rents
				appear to be at levels which will:
(i) be
				affordable by the persons and families intended to be assisted by the
				authority;
(ii) permit the
				successful marketing of the units to such persons and families; and
(iii) sustain the operation of the proposed
				development.
4. The
				applicant and other principal participants in the proposed development have the
				experience, ability, financial capacity and predisposition to regulatory
				compliance necessary to carry out their respective responsibilities for the
				acquisition, construction, ownership, operation, marketing, maintenance and
				management of the proposed development and will fully and properly perform all
				of their respective duties and obligations relating to the proposed development
				under law, regulation and the applicable mortgage loan documents of the
				authority.
5. The proposed
				development will contribute to the implementation of the policies and programs
				of the authority in providing decent, safe and sanitary rental housing for low
				and moderate income persons and families who cannot otherwise afford such
				housing and will assist in meeting the need for such housing in the market area
				of the proposed development.
6. It
				appears that the proposed development and applicant will be able to meet the
				requirements for feasibility and commitment set forth in
				13VAC10-20-50 and that the
				proposed development will otherwise continue to be processed through initial
				closing and will be completed and operated, all in compliance with the Act, the
				documents and contracts executed at initial closing, applicable federal laws,
				rules and regulations, and the provisions of this chapter and without
				unreasonable delay, interruptions or expense.
The executive director's determinations with respect to the
				  above criteria shall be based on the documents and information received or
				  obtained by him at that time from any source and are subject to modification or
				  reversal upon his receipt of additional documents or information at a later
				  time. If the executive director determines that the above criteria are
				  satisfied, he will recommend to the board that the application be approved for
				  further processing. If the executive director determines that one or more of
				  the above criteria are not satisfied, he may nevertheless, in his discretion,
				  recommend to the board that the application be approved for further processing
				  and that the mortgage loan and issuance of the commitment therefor be approved
				  and authorized subject to satisfaction of such criteria in such manner and
				  within such time period as he shall deem appropriate. The board shall review
				  and consider the recommendation of the executive director, and if it concurs
				  with such recommendation, it may by resolution approve the application and
				  authorize the mortgage loan and the issuance of a commitment therefor, subject
				  to the further review in
				  13VAC10-20-50 and such terms and
				  conditions as the board shall require in such resolution. However, the board
				  may by resolution authorize the executive director to approve and to authorize
				  the issuance of commitments for mortgage loans without further approval or
				  authorization by resolution of the board, subject to compliance with any
				  procedures and requirements that may be provided in such resolution; and
				  pursuant to and in accordance with such resolution, the executive director may
				  approve and authorize the mortgage loan and the issuance of a commitment
				  therefor without further approval or authorization by the board, subject to the
				  further review in
				  13VAC10-20-50 and such terms and
				  conditions as the executive director may require.
A resolution authorizing, or a commitment for, a mortgage
				  loan to a for-profit housing sponsor may prescribe the maximum annual rate, if
				  any, at which distributions may be made by such for-profit housing sponsor with
				  respect to the development, expressed as a percentage of such for-profit
				  housing sponsor's equity in such development (such equity being established in
				  accordance with
				  13VAC10-20-80 ), which rate, if
				  any, shall not be inconsistent with the provisions of the Act. In connection
				  with the establishment of any such rates, the board or the executive director
				  shall not prescribe differing or discriminatory rates with respect to
				  substantially similar developments. The resolution or commitment shall specify
				  whether any such maximum annual rate of distributions shall be cumulative or
				  noncumulative and shall establish the manner, if any, for adjusting the equity
				  in accordance with
				  13VAC10-20-80.
The executive director may impose such terms and conditions
				  with respect to acceptance for processing as he shall deem necessary or
				  appropriate. If any proposed development is so accepted for processing, the
				  executive director shall notify the sponsor of such acceptance and of any terms
				  and conditions imposed with respect thereto. If the executive director
				  determines not to recommend approval of the application, he shall so notify the
				  applicant.