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 13VAC10-140-60 - 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 authority shall execute and deliver to the applicant a contract
				  to acquire the development; provided, however, that in the case of the
				  acquisition of any existing development, the applicant shall convey the
				  development to the authority at the initial closing, and the authority shall
				  pay the purchase price therefor to the applicant, all in accordance with the
				  terms of the commitment. Also at the initial closing, the initial closing
				  documents (including, in the case of an existing development, a housing
				  management agreement between the authority and the management agent proposed by
				  the authority or, in the case of a development to be constructed, an agreement
				  between the authority and such agent to enter into a housing management
				  agreement at final closing) shall be, where required, executed and recorded,
				  and the applicant will pay to the authority the balance owed on the processing
				  and financing fees, if any, will make any initial equity investment required by
				  the commitment and the initial closing documents and will fund such other
				  deposits, escrows and reserves as required by the commitment. If the authority
				  is to provide construction financing for the development, the closing of the
				  construction loan shall also be held at this time and the initial disbursement
				  of construction loan proceeds will be made by the authority, if appropriate
				  under the commitment and the initial closing documents. Prior to the closing of
				  such construction loan, the executive director shall make the finding, if
				  applicable, required by subsection B of § 36-55.39 of the Code of
				  Virginia. The actual interest rate on the construction loan shall be
				  established by the executive director 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 the deed of trust note.
If a successor entity as described in
				  13VAC10-140-80 is to acquire an
				  existing development, the sale and conveyance of such development and the
				  making of any permanent mortgage loan to such entity by the authority, all as
				  set forth in
				  13VAC10-140-80, shall be
				  consummated at the initial closing. The successor entity shall pay to the
				  authority at initial closing the balance owed of any processing and financing
				  fees relating to such permanent loan.
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 and, prior to
				  acquisition by the authority, 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 and latent construction
				  defect 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.