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 13VAC10-140-80 - 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.
Prior to or concurrently with final closing, the applicant,
				  the owner, the general contractor, the management agent and other members of
				  the development team shall perform all acts and submit all contracts and
				  documents required by the initial closing documents (including the contract to
				  acquire the development) in order to attain final completion, obtain any
				  federal insurance, subsidy or assistance and otherwise consummate the
				  acquisition and the final closing. The owner shall deliver to the authority a
				  fully executed deed conveying to the authority fee simple title to the
				  development in accordance with the contract and shall execute and deliver such
				  other final closing documents as the authority may prescribe. The authority
				  shall pay to the owner the purchase price specified in the contract to acquire
				  the development. The management agreement shall be executed by the authority
				  and the management agent at the final closing. If the authority had provided
				  the construction loan, such loan shall be repaid in full at final
				  closing.
Prior to or concurrently with final closing, the executive
				  director shall, if authorized by the resolution, assign its interest in the
				  contract to acquire the development to a successor entity formed by the
				  authority, on its own behalf or in conjunction with other parties, pursuant to
				  the Act. Any reference to the authority in this chapter with respect to the
				  conveyance to or the acquisition, ownership or operation by the authority of a
				  development shall be deemed to refer also to any such successor entity of the
				  authority. Such successor entity shall purchase the development at final
				  closing and otherwise perform the obligations of the authority as purchaser
				  under the contract. The applicant shall convey title to the development to such
				  successor entity and shall perform all of its other obligations as seller under
				  such contract. Furthermore, if authorized by the resolution, the authority
				  shall at final closing provide to such successor entity a permanent mortgage
				  loan secured by a first lien on the development to finance the acquisition and
				  ownership thereof. The making of such permanent mortgage loan shall take place
				  at final closing upon the execution, delivery and recordation of such documents
				  as the executive director shall require. Such permanent loan shall bear such
				  interest rate and shall be subject to such terms and conditions as the
				  executive director shall prescribe pursuant to and in accordance with the
				  commitment. For the purpose of determining any maximum annual dividend
				  distributions by any such successor entity and the maximum principal amount of
				  the permanent mortgage loan to such successor entity permissible under the Act,
				  the total development costs shall be the cost of the acquisition as determined
				  by the authority and such other costs relating to such acquisition, the
				  financing of the permanent mortgage loan and the ownership and operation of the
				  development as the authority shall determine to be reasonable and necessary.
				  The equity investment of any such successor entity shall be the difference
				  between such total development costs and the principal amount of the permanent
				  mortgage loan.
At the final closing, the authority shall determine in
				  accordance with the initial closing documents any funds due the authority, the
				  applicant, the owner, general contractor, the architect or other parties that
				  the authority requires to be disbursed or paid as part of the final
				  closing.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.