Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 30 - RULES AND REGULATIONS FOR SINGLE FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-30-50 - Application and 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, including, but not
				  limited to:
1. Financial statement of
				the applicant, the general contractor and the principals therein and
				information regarding other projects in which the applicant, general contractor
				and principals therein are or have been involved.
2. If the applicant is incorporated, a
				corporate resolution setting forth the applicant's borrowing capacity and a
				certificate of incumbency identifying officers of the corporation.
3. Information regarding the business status
				and experience of the applicant, general contractor, and any other members of
				the proposed development team.
4.
				Plans and specifications for roads and streets which are to serve the proposed
				development.
5. Site plans and
				specifications showing location of homes and streets, topography, ground cover,
				easements, drainage, lots, driveways and utilities.
6. Plans and specifications for each unit
				type.
7. The subdivision plat which
				has been or will be recorded.
8.
				Any documents required by the authority to evidence compliance with all
				conditions and requirements necessary to own, construct, and sell the units in
				the proposed development, including local governmental approvals, proper zoning
				status, licenses and other necessary legal authorizations, and any easements
				necessary for the construction and occupancy of the development.
9. Any option or sales contract to acquire
				the site of the proposed development.
10. Area and location maps indicating
				location of the proposed development and public and private facilities in the
				immediate vicinity of the proposed development.
11. Evidence of the availability and capacity
				of public water and sewer systems and/or approval of individual well and/or
				septic systems by lot by the appropriate authority and/or all necessary permits
				for the construction of private utility systems with supporting
				documents.
12. The applicant's (i)
				best estimates of the housing development costs and the components thereof,
				(ii) proposed mortgage loan amount, and (iii) proposed sales prices.
13. The applicant's marketing plan, including
				(i) the proposed sales prices of the single family dwelling units; (ii) the
				utilization of any mortgage insurance, subsidy or other assistance from the
				federal government or any other source; (iii) the proposed income levels of
				purchasers therefor, which income levels shall not exceed the income
				limitations of the authority applicable to the single family dwelling units;
				and (iv) the marketing strategies, techniques and procedures to be followed
				with respect to the sale of the single family dwelling units (including any
				affirmative marketing efforts and media advertising plans) and the identity and
				qualifications of the proposed marketing agent of the applicant.
The executive director may for good cause permit the
				  applicant to file one or more of the foregoing forms, documents and information
				  at a later time, and any review, analysis, determination or other action by the
				  authority or the executive director prior to such filing shall be subject to
				  the receipt, review and approval of such forms, documents and
				  information.
The executive director may require that the nonrefundable
				  processing fee of $500 accompany the application. If after a site inspection by
				  the authority the application is disapproved, then the authority will deduct
				  its expenses to date and will refund the balance.
An appraisal of the land and any improvements to be retained
				  and used as a part of the development will be obtained at this time or as soon
				  as practical thereafter from an independent real estate appraiser selected by
				  the authority. The executive director may require the applicant to reimburse
				  the authority for the cost of such appraisal. The executive director may also
				  obtain such other reports, analyses, information and data as he deems necessary
				  or appropriate to evaluate the proposed development.
If at any time the executive director determines that the
				  applicant is not processing the application with due diligence and best efforts
				  or that the application cannot be successfully processed to commitment and
				  initial closing within a reasonable time, he may, in his discretion, terminate
				  the application and retain any fees previously paid to the authority.
The authority's staff shall review the application and any
				  additional information submitted by the applicant or obtained from other
				  sources by the authority in its review of the proposed development. Such review
				  shall be performed in accordance with § 36-55.33:1D 2 of the authority's
				  Act 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 and financial capacity of the applicant
				and general contractor and the qualifications of any other members of the
				proposed development team;
3. An
				evaluation of the estimated construction costs, the proposed sales prices, and
				the design and structure of the proposed development;
4. A market analysis as to the present and
				projected demand for the proposed development in the market area, including: an
				evaluation of existing and future market conditions; an analysis of trends and
				projections of housing production, employment and population for the market
				area; a site evaluation (such as access and topography of the site,
				neighborhood environment of the site, public and private facilities serving the
				site and present and proposed uses of nearby land); and an analysis of
				competitive projects;
5. A review
				of the marketing plan, including its effect on the economic feasibility of the
				proposed development and its efficacy in carrying out the programs and policies
				of the authority;
6. An analysis of
				the plans and specifications, including the functional use and living
				environment of the units, the marketability of the units as designed, the
				amenities, equipment and facilities to be provided, and the maintenance and
				energy conservation characteristics of the units in the proposed development.
Based on the authority's review of the applications,
				  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 prepare a recommendation to the
				  board that a mortgage loan commitment be issued to the applicant with respect
				  to the proposed development if he determines that all of the foregoing criteria
				  have been satisfied.
1. The vicinity
				of the proposed development is and will continue to be a residential area
				suitable for the proposed development and is not now, nor is it likely in the
				future to become, subject to uses or deterioration which could cause undue
				depreciation in the value of the units in the proposed development or which
				could adversely affect its marketability or economic feasibility.
2. There are or will be available on or
				before the estimated completion date (i) direct access to adequate public roads
				and any necessary public utilities and (ii) such public and private facilities
				(such as schools, churches, transportation, retail and service establishments,
				parks, recreational facilities and major public and private employers) in the
				area of the proposed development as the executive director determines to be
				necessary or desirable for use and enjoyment by the contemplated
				residents.
3. The characteristics
				of the site (such as its size, topography, terrain, soil and subsoil
				conditions, vegetation, and drainage conditions) are suitable for the
				construction of the proposed development, and the site is free from any defects
				which would have a materially adverse effect on such construction.
4. The location of the proposed development
				will promote and enhance the marketability of the units to the person and
				families intended for ownership and occupancy thereof.
5. The applicant either owns the site of the
				proposed development of has the legal right to acquire 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 (any such ownership acquired
				or to be acquired shall be free of any covenants, restrictions, easements,
				conditions, or other encumbrances which would adversely affect the authority's
				security or the construction or sale of the proposed development).
6. The design of the proposed development and
				the units therein is attractive and esthetically appealing, will contribute to
				the marketability of the proposed development, makes use of materials to reduce
				energy and maintenance costs, provides for units with adequate, well-designed
				space, includes equipment and facilities customarily used or enjoyed in similar
				developments in the area by the contemplated residents, and will otherwise
				provide safe, habitable and pleasant living accommodations and environment for
				such residents.
7. Any
				administrative, community, health, educational, recreational, commercial or
				other nonhousing facilities to be included in the proposed development are
				incidental to the proposed development and are necessary, convenient or
				desirable with respect to the occupancy and ownership of the units in the
				proposed development.
8. The
				applicant's estimates of housing development costs (i) include all costs
				necessary for the development, construction and sale of the proposed
				development, (ii) are reasonable in amount, (iii) are based upon valid data and
				information, and (iv) are comparable to costs for similar single family
				developments.
9. The proposed sales
				prices are in amounts which (i) do not exceed any applicable maximum sales
				prices established by the authority, (ii) will permit the applicant to recover
				his costs of development, construction and sale of the proposed development and
				to receive a reasonable profit as determined by the executive director, (iii)
				will be affordable by the persons and families intended to be assisted by the
				authority and (iv) will permit the successful marketing of the units to such
				persons and families within the term of the mortgage loan.
10. The applicant and general contractor have
				the experience, ability and financial capacity necessary to carry out their
				respective responsibilities for the acquisition, construction, marketing, and
				sale of the proposed development.
11. Any other members of the proposed
				development team have the qualifications necessary to perform their respective
				functions and responsibilities.
12.
				The marketing plan submitted by the applicant shall comply with these rules and
				regulations and shall provide for actions to be taken such that (i) the
				dwelling units in the proposed development will be sold and occupied within the
				term of the mortgage loan by those eligible persons and families who are
				expected to be served by the proposed development and (ii) the residents will
				be selected without regard to race, color, religion, creed, sex or national
				origin.
13. In the case of any
				development to be insured or otherwise assisted or aided by the federal
				government, the proposed development will comply in all respects with any
				applicable federal laws, rules and regulations, and adequate federal insurance,
				subsidy, or assistance is available for the proposed development and will be
				expected to remain available during the term of the mortgage loan.
14. The proposed development will comply with
				(i) all applicable federal laws and regulations governing the federal tax
				exemption of any notes or bonds issued or to be issued by the authority to
				finance the proposed development and (ii) all requirements set forth in the
				resolutions pursuant to which any such notes or bonds are issued or to be
				issued.
15. The prerequisites
				necessary for the owner, general contractor and other members of the
				applicant's development team to acquire, own, construct and sell the units in
				the proposed development have been satisfied or can be satisfied prior to
				initial closing. These prerequisites include, but are not limited to obtaining:
(i) site plan approval,
(ii) proper zoning status,
(iii) assurances of the adequacy and
				availability of the requisite public or private utilities and services,
(iv) commitments by public
				officials to construct such public improvements and accept the dedication of
				streets and easements that are necessary or desirable for the construction and
				occupancy of the proposed development,
(v) licenses and other legal authorizations
				necessary to permit the owner, general contractor, and any other member of the
				applicant's development team to perform his or its duties and responsibilities
				in the State of Virginia, and
(vi)
				building permits.
16.
				The proposed development will not have a materially adverse effect on any other
				housing development located or to be located in the same market area for
				ownership and occupancy by the same type of resident and financed or to be
				financed by the authority.
17. The
				application and proposed development conform to any requirements, limitations
				and conditions imposed by the executive director pursuant to
				13VAC10-30-40 hereof.
18. 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.
19. It appears that
				the proposed development will otherwise continue to be processed through
				initial closing and will be completed and sold, all in compliance with the Act
				and these rules and regulations, the documents and contracts executed at
				initial closing, any applicable federal laws, rules and regulations, and the
				provisions hereof and without unreasonable delay, interruptions or
				expense.
20. The proposed
				development will comply with all applicable state and local laws, ordinances,
				regulations, and requirements.
21.
				The proposed development will provide valid and sound security for the
				authority's mortgage loan and will contribute to the fulfillment of the public
				purposes of the authority as set forth in its Act.
22. Subject to a final determination by the
				board, the financing of the proposed development will meet the applicable
				requirements set forth in § 36-55.39A of the Code of Virginia.
Proposed developments shall be selected only to the extent
				  that the authority has or expects to have funds available from the sale of its
				  notes or bonds or from other sources to finance mortgage loans. If funds are
				  insufficient to finance all of the mortgage loans for the proposed developments
				  then being considered, the executive director shall select those proposed
				  developments which best satisfy the foregoing criteria.
In the selection of an application, the executive director
				  may take into account the desirability of allocating funds to different housing
				  sponsors throughout the Commonwealth.
Nothing contained herein shall require the authority to
				  select any application which, in the judgment of the executive director, does
				  not adequately satisfy the foregoing criteria.
If the executive director determines that the foregoing
				  criteria are satisfied and that he will recommend approval of the application
				  and issuance of the commitment, he shall present his analysis and
				  recommendations to the board. If the executive director determines that one or
				  more of the foregoing criteria have not been adequately satisfied, he may
				  nevertheless in his discretion recommend to the board that the application be
				  approved and that a mortgage loan commitment be issued subject to the
				  satisfaction of such criteria in such manner and within such time period as he
				  shall deem appropriate. Prior to the presentation of his recommendations to the
				  board, the executive director may require the payment by the applicant of a
				  nonrefundable processing fee in an amount equal to one-half of 1.0% of the then
				  estimated mortgage loan amount less any processing fee previously paid by the
				  applicant. Such fee shall be applied at initial closing toward the payment of
				  the authority's financing fee.
The board shall review and consider the analysis and
				  recommendation of the executive director, and if it concurs with such
				  recommendation, it shall by resolution approve the application and authorize
				  the mortgage loan and the issuance of a commitment therefor, subject to such
				  terms and conditions as the board shall require in such resolution. Such
				  resolution or commitment shall set forth the estimated total housing
				  development costs and the principal amount and term of the mortgage loan and
				  shall include such terms and conditions as the authority considers appropriate
				  with respect to the construction of the proposed development, the marketing and
				  sale of the single family dwelling units in such development (including any
				  income limits or maximum sales prices lower than those established in the
				  authority's rules and regulations), the disbursement and repayment of the
				  mortgage loan, assurances of successful completion of the proposed development
				  and all other matters related to the construction and sale of the proposed
				  development. Such resolution or commitment may include a financial analysis of
				  the proposed development setting forth the sales price limits for the single
				  family dwelling units within the proposed development and a schedule of the
				  estimated housing development costs.
If the executive director determines not to recommend
				  approval of the application and issuance of a commitment, he shall so notify
				  the applicant. If any application is not so recommended for approval, the
				  executive director may select for processing one or more applications in its
				  place.