Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 20 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-20-60 - Initial closing

Current through Register Vol. 40, No. 24, July 15, 2024
Upon issuance of the commitment, the applicant shall direct
				  its attorney to prepare and submit the legal documentation (the "initial
				  closing documents") required by the commitment within the time period
				  specified. When the initial closing documents have been submitted and approved
				  by the authority staff and all other requirements in the commitment have been
				  satisfied, the initial closing of the mortgage loan shall be held. At this
				  closing, the initial closing documents shall be, where required, executed and
				  recorded, and the mortgagor will pay to the authority the balance owed on the
				  processing and financing fees, will make any initial equity investment required
				  by the initial closing documents and will fund such other deposits, escrows and
				  reserves as required by the commitment. The initial disbursement of mortgage
				  loan proceeds will be made by the authority, if appropriate under the
				  commitment and the initial closing documents.
Prior to the financing of the mortgage loan, the executive
				  director shall make the findings, if applicable, required by subsection A of
				  § 36-55.39 of the Code of Virginia.
Prior to the financing of the mortgage loan, the applicant
				  shall, pursuant to subsection B of § 36-55.39 of the Code of Virginia,
				  provide the authority with (i) a copy of the written staff determination
				  received by the applicant from the locality that the development is consistent
				  with current zoning and other land use regulations, (ii) a written
				  certification from the applicant that the locality failed to respond to the
				  applicant's request for a determination described in clause (i) within 30 days
				  as provided in subsection B of § 36-55.39 of the Code of Virginia, or
				  (iii) a copy of any building permit issued by the locality for the construction
				  or rehabilitation of the development.
The actual interest rate on the mortgage loan shall be
				  established by the executive director prior to or at the time of the execution
				  of the deed of trust note at initial closing and may thereafter be altered by
				  the executive director in accordance with the authority's rules and regulations
				  and the terms of such note.
The executive director may require such accounts, reserves,
				  deposits, escrows, bonds, letters of credit and other assurances as he shall
				  deem appropriate to assure the satisfactory construction, completion, occupancy
				  and operation of the development, including without limitation one or more of
				  the following: working capital deposits, construction contingency funds,
				  operating reserve accounts, payment and performance bonds or letters of credit,
				  latent construction defect escrows, replacement reserves, and tax and insurance
				  escrows. The foregoing shall be in such amounts and subject to such terms and
				  conditions as the executive director shall require and as shall be set forth in
				  the initial closing documents.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.