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 13VAC10-140-40 - Application and acceptance for processing

Current through Register Vol. 40, No. 24, July 15, 2024
Application for consideration of each proposal for the
				  authority to acquire a development and, if applicable, to finance the
				  construction thereof 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 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, if applicable, 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;
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 purchase price 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,
				  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
				13VAC10-140-50 of this chapter,
				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
				13VAC10-140-50 of this chapter,
				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 has the experience, ability
				and financial capacity necessary to carry out its responsibilities for the
				construction and, prior to acquisition thereof by the authority, the ownership,
				operation, marketing, maintenance and management of the proposed
				development.
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
				13VAC10-140-50 and that the
				proposed development will otherwise continue to be processed through initial
				closing and will be completed and conveyed to the authority 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.
Applications 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 to finance the acquisition of and, if applicable, the construction loan
				  for the proposed developments.
The executive director's determinations with respect to the
				  above criteria shall be based only on the documents and information received or
				  obtained by him at that 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 shall present his
				  recommendation to the board. 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 further processing of the application,
				  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 shall by resolution approve the application and authorize
				  the issuance of a commitment to acquire the development and, if applicable, to
				  finance the construction thereof, subject to the further review in
				  13VAC10-140-50 of this chapter and
				  such terms and conditions as the board shall require in such resolution.
If the development is to be acquired by a successor entity
				  formed by the authority as described in
				  13VAC10-140-80, the resolution
				  shall authorize (i) the assignment to such successor entity of the authority's
				  interest in the contract to acquire the development and (ii), if applicable,
				  the making of a permanent loan to such successor entity in an amount set forth
				  therein to finance the acquisition cost of the development and such other costs
				  relating to the acquisition and ownership of the development and to the
				  financing thereof as the authority shall deem necessary or appropriate.
If the development is to be acquired by a successor entity
				  which is a for-profit housing sponsor, the board may in its resolution
				  prescribe, in accordance with the authority's rules and regulations for
				  multi-family housing developments, the maximum annual rate at which
				  distributions may be made.
Neither an acquisition by the authority of a development nor
				  a construction or permanent loan for such development pursuant to these rules
				  and regulations shall be authorized unless the board by resolution shall make
				  the applicable findings required by § 36-55.33:2 and subsection A of
				  § 36-55.39, as applicable, of the Code of Virginia; provided, however,
				  that the board may in its discretion authorize the acquisition or the permanent
				  loan in advance of the issuance of the commitment therefor in accordance
				  herewith without making the finding, required by subsection A of §
				  36-55.33:2 of the Code of Virginia, subject to the condition that such finding
				  be made by the board prior to the authority's acquisition and permanent
				  financing of the development; provided further, however, the board may in its
				  discretion authorize a construction loan for the development without the
				  executive director making the finding 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 construction
				  loan.
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.