Sec. 8211 - Application Requirements/Form

ยง 8211. Application Requirements/Form

(a) Application shall be made on a form made available by the Department that requests the information required by these regulations.

(b) An application shall be deemed complete when the Department is able to determine from the information provided whether the application is eligible for rating pursuant to the requirements of Section 8212(a).

(c) All applications shall be required to contain the following:

(1) identification of the applicant;

(2) information on the proposed activity(ies);

(3) information adequate to determine whether the applicant is eligible, in accordance with Sections 8204 and 8204.1;

(4) information adequate to determine whether the activity is eligible, in accordance with Sections 8205 and 8210(c);

(5) information indicating whether the applicant or any member of its program team or project team has any unresolved audit findings or has been suspended or debarred from participation in any federal or State housing or community development program;

(6) information on any pending litigation affecting the applicant's ability to carry out the activity;

(7) identification of any administrative subcontractor;

(8) a certification that the applicant will comply with State and federal requirements;

(9) a resolution by the governing board of the applicant authorizing the application and the execution of all required documents;

(10) information adequate to determine the experience of the applicant with other federal, State or local housing or community development programs;

(11) identification of all members of the program team or project team;

(12) information on sources and amounts of matching contributions, in accordance with Section 8206, and sources and amounts of leverage, as defined in Section 8201.

(d) In addition to the information required by subsection (c), applications proposing programs shall be required to contain the following:

(1) information on which member of the program team is responsible for accomplishing key administrative tasks;

(2) information on the projected administrative budget and sources of funds to pay for the costs of administering the program;

(3) information adequate to determine the experience of the applicant in administering a program to assist the same type of activity proposed in the application;

(4) a description of how the applicant proposes to use HOME funds;

(5) a copy of the guidelines to be used by the applicant for administering the program in compliance with State and federal requirements;

(6) information adequate to determine the feasibility of the program;

(e) In addition to the information required by subsection (c), applications proposing projects shall be required to contain the following:

(1) a description of the roles, financial structure and all legal relationships of the applicant, developer, owner(s), managing general partner, administrative subcontractor and all other partners in the construction project;

(2) information adequate to determine the experience of the applicant, developer, owner and managing general partner in developing the same type of subsidized project as proposed by the application;

(3) information adequate to determine the readiness of the project to proceed;

(4) information adequate to determine the feasibility of the proposed project.

(A)For applications proposing rental projects, adequate information shall include the following:

(i) information adequate to determine the financial feasibility of the project in accordance with Section 8212(d)(3) and the Uniform Multifamily Regulations (commencing with Section 8300) and state and federal HOME requirements;

(ii) for applications proposing rental new construction projects, a market study, property appraisal, and a Phase I/Phase II environmental site assessment shall be submitted as requested by the Department.

(I) The market study must demonstrate whether sufficient demand exists in the market area to support the proposed project at the projected rents.

(II) The property appraisal must determine the value of the land upon which the proposed project will be developed. If the land is leased, the appraisal must include the fair market value of the lease payments.

(III) The Phase I/Phase II environmental site assessment must demonstrate whether the property is free from severe adverse environmental conditions.

(IV) For projects located on Native American Lands as defined in Section 8201(y)(1), appraisals and a Phase I environmental site assessment will be provided based on the data available.

(iii) For applications proposing rental rehabilitation and/or acquisition projects, a market study, property appraisal, and asbestos and mold assessments shall be submitted as requested by the Department. In addition, if an application proposes rehabilitation and/or acquisition of a building constructed prior to January 1, 1978, a lead-based paint assessment shall be submitted.

(I) The market study must demonstrate whether sufficient demand exists in the market area to support the proposed project at the projected rents.

(II) The property appraisal must determine the value of the existing project. If the land is leased, the appraisal must include the fair market value of the lease payments.

(III) The asbestos, mold, and lead-based paint assessments must demonstrate whether the project is free from severe adverse environmental conditions.

(IV) For projects located on Native American Lands as defined in Section 8201(y)(1), appraisals will be provided based on the data available.

(B) For applications proposing first-time homebuyer projects, adequate information shall include the following:

(i) information adequate to determine the ability of the project to meet federal and State HOME requirements, including a copy of the guidelines to be used by the applicant for administering the project in compliance with State and federal requirements;

(ii) for applications proposing first-time homebuyer new construction projects, an analysis of comparable properties in the market area, a property appraisal, and a Phase I/Phase II environmental site assessment shall be submitted as requested by the Department.

(I) The analysis of comparable properties must demonstrate whether the project's proposed home sales prices are supported by the market.

(II) The property appraisal must determine the value of the land upon which the proposed project will be developed. If the land is leased, the appraisal must include the fair market value of the lease payments.

(III) The Phase I/Phase II environmental site assessment must demonstrate whether the property is free from severe adverse environmental conditions.

(IV) For projects located on Native American Lands as defined in Section 8201(y)(1), appraisals and a Phase I environmental site assessments will be provided based on the data available.

(iii) For applications proposing first-time homebuyer rehabilitation projects, an analysis of comparable properties in the market area, a property appraisal, and asbestos and mold assessments shall be submitted as requested by the Department. In addition, if an application proposes to acquire or rehabilitate a building constructed prior to January 1, 1978, a lead-based paint assessment shall be submitted.

(I) The analysis of comparable properties must demonstrate whether the project's proposed home sales prices are supported by the market.

(II) The property appraisal must determine the value of the existing project. If the land is leased, the appraisal must include the fair market value of the lease payments.

(III) The asbestos, mold, and lead-based paint assessments must demonstrate whether the project is free from severe adverse environmental conditions.

(IV) For projects located on Native American Lands as defined in Section 8201(y)(1), appraisals will be provided based on the data available.

(C) Any document prepared pursuant to subsections (A)(ii) and (iii) or (B)(ii) and (iii) shall be prepared by an individual or firm which:

(i) has the appropriate license, when deemed necessary by the Department, and knowledge and experience necessary to competently prepare the document;

(ii) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible and complete document;

(iii) communicates each analysis, opinion and conclusion in a manner that is not misleading as to the true market needs for low-income residential property, and the value and condition of the subject property; and

(iv) is an independent third party having no identity of interest with the applicant, the partners of the applicant, the intended partners of the applicant, or with the general contractor.

(5) if applicant is a CHDO, the procedures to ensure the CHDO's effective project control of activities assisted with HOME funds pursuant to 24 CFR Section 92.300(a)(1).

(1. New section filed 7-2-92 as an emergency; operative 7-2-92 (Register 92, No. 28). A Certificate of Compliance must be transmitted to OAL 10-30-92 or emergency language will be repealed by operation of law on the following day. 2. New section refiled 10-23-92 as an emergency; operative 10-30-92 (Register 92, No. 43). A Certificate of Compliance must be transmitted to OAL 2-23-93 or emergency language will be repealed by operation of law on the following day. 3. New section refiled 3-2-93 as an emergency; operative 3-2-93 (Register 93, No. 10). A Certificate of Compliance must be transmitted to OAL 6-30-93 or emergency language will be repealed by operation of law on the following day. 4. Certificate of Compliance as to 3-2-93 order including renumbering and amendment of former section 8212 to section 8213 with amendment of Noteand renumbering of former section 8213 to section 8214 transmitted to OAL 5-26-93 and filed 7-7-93 (Register 93, No. 28). 5. Change without regulatory effect amending form filed 3-28-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 13). 6. Renumbering of former section 8211 to new section 8209, and renumbering of former section 8213 to new section 8211, including amendment of section and Noteand repealer of forms, filed 3-14-97; operative 3-14-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 11). 7. Amendment of subsection (a) filed 1-14-99; operative 2-13-99 (Register 99, No. 3). 8. Change without regulatory effect amending subsection (a) and repealing subsections (c)-(c)(2) filed 8-4-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 32). 9. Change without regulatory effect amending Form HOME-1 (incorporated by reference) and amending subsection (a) filed 7-28-2000 pursuant to section 100, title 1, California Code of Regulations (Register 2000, No. 30). 10. Change without regulatory effect amending subsection (a) and Form HOME-1 (incorporated by reference) filed 7-17-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 29). 11. Amendment of subsections (a) and (b), new subsections (c)-(e)(5) and amendment ofNote filed 9-9-2004; operative 9-9-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 37). 12. Repealer of subsection (d)(7) filed 8-12-2005; operative 9-11-2005 (Register 2005, No. 32). 13. Amendment of subsection (e)(4), new subsections (e)(4)i.-(e)(4)iii.(D) and amendment ofNote filed 12-10-2007; operative 12-10-2007 pursuant to Government Code section 11343.4(Register 2007, No. 50). 14. Reorganization and amendment of subsections within subsection (e)(4) filed 10-31-2016; operative 1-1-2017 (Register 2016, No. 45).)

Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.1, 92.201, 92.203, 92.205, 92.206, 92.209, 92.214(a), 92.252, 92.254, 92.300(a)(1), 92.351, 92.352, 92.355 and 92.500; Section 65588, Government Code; and Sections 50896, 50896.1 and 50896.3, Health and Safety Code.

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