Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 130 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS FOR MENTALLY DISABLED PERSONS › Section 13VAC10-130-50 - Application and acceptance for processing

Current through Register Vol. 40, No. 24, July 15, 2024
Application for an M/D 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, a determination by DMHMRSAS on such form or forms as the executive director
				  may from time to time prescribe to the effect that (i) the mortgagor has the
				  intent and ability to provide the services deemed necessary by DMHMRSAS for the
				  success of a housing development intended for occupancy by persons of low and
				  moderate income who are mentally disabled, (ii) that the proposed location and
				  type of housing are suitable for the contemplated residents and that there
				  exists a need in the area of the proposed location for housing for the mentally
				  disabled, and (iii) that the development is economically feasible to the extent
				  that it is projected to have or receive funds in an amount sufficient to pay
				  the debt service on the proposed M/D loan and to pay for all of the requisite
				  services deemed necessary by DMHMRSAS for the success of such a development
				  (for those M/D developments which are to receive funding other than that
				  directly from the mortgagor, a breakdown of the source and amount of such
				  funding upon which DMHMRSAS relied in making its determination must be
				  included).
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 M/D 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, recreational opportunities, shopping facilities and other
				factors affecting the site;
2. An
				evaluation of the ability, experience and financial capacity of the
				applicant;
3. A preliminary
				evaluation of the estimated construction costs and the proposed design and
				structure of the proposed M/D development;
4. A preliminary review of the estimated
				operating expenses and income (including any estimated subsidy or assistance)
				and a preliminary evaluation of the adequacy of the estimated income to sustain
				the proposed M/D 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 upon 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 M/D
				  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 M/D 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 § 6 of these rules
				and regulations, 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
				13VAC10-130-60 of this chapter,
				the estimated income from the proposed M/D development, including any estimated
				subsidy or assistance, is sufficient to sustain the operation of the proposed
				M/D development.
4. The applicant
				has the experience, ability and financial capacity necessary to carry out its
				responsibilities for the acquisition, construction, ownership, operation,
				maintenance and management of the proposed M/D development.
5. The proposed M/D development will
				contribute to the implementation of the policies and programs of the authority
				in providing decent, safe and sanitary housing for low and moderate income
				persons and families who cannot otherwise afford such housing in the market
				area of the proposed M/D development.
6. The proposed M/D development will assist
				in meeting the need for such housing in the market area of the proposed M/D
				development.
7. It appears that the
				proposed M/D development and applicant will be able to meet the requirements
				for feasibility and commitment set forth in
				13VAC10-130-60 and that the
				proposed M/D 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 these rules and
				regulations and without unreasonable delay, interruptions or expense.
The executive director's determinations with respect to the
				  above criteria shall be based only on the documents and information obtained by
				  him at the time 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 further
				  processing of the application and he shall present his 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 the
				  M/D loan and issuance of the commitment therefor be authorized subject to the
				  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 shall
				  by resolution approve the application and authorize issuance of a commitment
				  therefor, subject to the further review in
				  13VAC10-130-60 and such terms and
				  conditions as the board shall require in such resolution.
A resolution authorizing an M/D loan to a for-profit housing
				  sponsor shall prescribe the maximum annual rate, if any, at which distributions
				  may be made by such for-profit housing sponsor with respect to the M/D
				  development, expressed as a percentage of such for-profit housing sponsor's
				  equity in such M/D development (such equity being established in accordance
				  with 13VAC10-130-90 of this chapter),
				  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 shall not
				  prescribe differing or discriminatory rates with respect to substantially
				  similar M/D developments. The resolution shall specify whether any such maximum
				  annual rate of distributions shall be cumulative or noncumulative.
An M/D loan shall not be authorized by the board unless the
				  board by resolution shall make the applicable findings required by subsection A
				  of § 36-55.39 of the Code of Virginia. The board, however, may in its
				  discretion authorize the M/D loan without the executive director having
				  previously made the finding, if applicable, required by subsection B of §
				  36-55.39 of the Code of Virginia, subject to the condition that such finding be
				  made by the executive director prior to the financing of the M/D loan. For the
				  purposes of satisfying subsection B of the aforementioned code section, the
				  term "substantial rehabilitation" means the repair or improvement of an
				  existing housing unit, the value of which repairs or improvements equals at
				  least 25% of the total value of the rehabilitated housing unit.
The executive director may impose such terms and conditions
				  with respect to acceptance for processing as he shall deem necessary and
				  appropriate. If any proposed MD development is so accepted for processing, the
				  executive director shall notify the sponsor of such acceptance and of any terms
				  and conditions imposed with regard thereto. If the executive director
				  determines not to recommend approval of the application, he shall so notify the
				  applicant.
The executive director is authorized to make allocations of
				  funds for M/D Loans to various types of housing sponsors and developments as he
				  deems necessary or desirable to promote and accomplish the purposes set forth
				  herein and in the Act. Any such allocation of funds may be made based upon such
				  conditions as the executive director may require, including without limitation,
				  one or both of the following:
(i)
				DMHMRSAS agrees, subject to terms and limitations acceptable to the authority,
				to provide funds for the developments in an amount sufficient to pay the
				operating costs thereof, including debt service with respect to the M/D Loan or
				loans applicable thereto; and
(ii)
				the authority shall be able to finance the developments by the issuance of
				bonds in such amount and under such terms and conditions as the authority deems
				satisfactory.