Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 20 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-20-80 - Completion of construction and final closing

Current through Register Vol. 40, No. 24, July 15, 2024
The initial closing documents shall specify those
				  requirements and conditions that must be satisfied in order for the development
				  to be deemed to have attained final completion. Upon such final completion of
				  the development, the mortgagor, general contractor, and any other parties
				  required to do so by the initial closing documents shall each diligently
				  commence, complete and submit to the authority for review and approval their
				  cost certification in accordance with the authority's cost certification guide
				  or in accordance with such other requirements as shall have been agreed to by
				  the authority.
Prior to or concurrently with final closing, the mortgagor,
				  general contractor and other members of the development team shall perform all
				  acts and submit all contracts and documents required by the initial closing
				  documents in order to attain final completion, make the final disbursement of
				  mortgage loan proceeds, obtain any federal insurance, subsidy or assistance and
				  otherwise consummate the final closing.
At the final closing, the authority shall determine the
				  following in accordance with the initial closing documents:
1. The total development costs, the final
				mortgage loan amount, the balance of mortgage loan proceeds to be disbursed to
				the mortgagor, the equity investment of the mortgagor and, if applicable, the
				maximum amount of annual limited dividend distributions;
2. The date for commencement and termination
				of the monthly amortization payments of principal and interest, the amount of
				such monthly amortization payments, and the amounts to be paid monthly into the
				escrow accounts for taxes, insurance, replacement reserves, or other similar
				escrow items; and
3. Any other
				funds due the authority, the mortgagor, general contractor, architect or other
				parties that the authority requires to be disbursed or paid as part of the
				final closing.
Unless otherwise agreed to by the authority, the mortgagor
				  and contractor shall, within such period of time as is specified in the
				  authority's cost certification guide, submit supplemental cost certifications,
				  and the authority shall have the right to make such adjustments to the
				  foregoing determinations as it shall deem appropriate as a result of its review
				  of such supplemental cost certification.
The equity investment of the mortgagor shall be the
				  difference between the total housing development costs of the development as
				  finally determined by the authority and the final principal amount of the
				  mortgage loan as to such development. If the mortgage loan commitment and
				  initial closing documents so provide and subject to such terms and conditions
				  as shall be set forth therein, the equity shall be adjusted subsequent to final
				  closing to an amount equal to the difference, as of the date of adjustment,
				  between the fair market value of the development and the outstanding principal
				  balance of the mortgage loan.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.