Fla. Admin. Code Ann. R. 67-38.0026 - General Program Requirements and Restrictions

(1) An Applicant may only apply for funding through the Predevelopment Loan Program if it is a legally formed entity that is:

(a) Any unit of government,

(b) A Public Housing Authority,

(c) A Community-Based or Not-For-Profit Organization,

(d) A for-profit entity wholly owned by one or more qualified Not-For-Profit Organizations, or

(e) A limited liability company or limited partnership if its managing member or general partner is a Community-Based or Not-For-Profit Organization that holds at least 51% of the ownership interest in the Development held by the managing member or general partner entity. The Not-For-Profit entity shall own an interest in the Development, either directly or indirectly; shall not be affiliated with or controlled by a for-profit corporation; and shall materially participate in the development and operation of the Development throughout the Compliance Period as stated in the Land Use Restriction Agreement.

(2) In order to close on the PLP Loan, the Applicant entity approved by the Board shall have site control and the ability to secure the loan through a mortgage or other collateral.

(3) PLP Loans shall be limited to eligible predevelopment and site acquisition costs approved for the Development by the TAP and the Corporation and are limited to:

(a) $500, 000 for non-site acquisition; and,

(b) $500, 000 for site acquisition (including good faith deposits applied to the sales price). The total PLP Loan amount shall not exceed $750, 000.

(4) All funds from the PLP loan shall be expended on the eligible expenses outlined in Rule 67-38.008, F.A.C.

(5) Site acquisition cost shall be subject to approval of an assigned Credit Underwriter.

(6) The Corporation shall limit the PLP Loan to an amount which can be secured through a mortgage on the Development Site, the pledging of capital fund finance program funds as approved by HUD or other collateral approved by the Corporation. Such determination shall require written recommendation by the TAP or Credit Underwriter and be based on the following: mortgages, liens, or both currently on the Development Site, and shall be based on the value of the Development Site as determined by appraisal dated within 12 months of receipt of the Application.

(7) For rental Developments:

(a) The Applicant must commit to Set-Aside a minimum of 20% of the completed rental units to be rented to persons or households whose income does not exceed 50% of the area median income, as determined by HUD and adjusted by household size, for the metropolitan statistical area or county in which the Development is located; and,

(b) Must set-aside the units for the duration of the Compliance Period. If the Development does not obtain construction or permanent financing from the Corporation and no Corporation funds remain in the Development, the Compliance Period shall be fifteen (15) years from the date the PLP Loan is paid off. If the Development obtains construction or permanent financing from other Corporation programs, then the most restrictive compliance requirements of the other Corporation programs shall be in effect and compliance monitoring shall be performed through those programs.

(8) For home ownership Developments:

(a) The Applicant must commit to sell a minimum of 50% of completed housing units to persons or households whose income does not exceed 80% of the area median income, as determined by HUD and adjusted by household size, for the metropolitan statistical area or county in which the individual homes are located, and sell the remaining housing units to persons or households whose income does not exceed 120% of the area median income; and,

(b) If the Development obtains construction or permanent financing from other Corporation programs, the Set-Aside(s) committed to by the Applicant under the particular Corporation program providing the additional funding shall be in effect.

(9) Applicants are required to work with a Technical Assistance Provider (TAP) as assigned and directed by the Corporation until repayment of the PLP Loan, withdrawal of the Application, de-obligation of the PLP Loan, or termination from the PLP. The Corporation shall pay all fees required by the TAP.

(10) If the Applicant is utilizing PLP funds to purchase the Development Site, including good faith deposits applied to the sales price of the land, Credit Underwriting will be required by a Credit Underwriter assigned by the Corporation. The Applicant is responsible for paying all Credit Underwriting fees, which is an eligible PLP expense.

(11) If awarded a PLP Loan, the proceeds of such may only be used for PLP eligible expenses as outlined in Rule 67-38.008, F.A.C.

(12) The Development must be consistent with the purposes of the Predevelopment Loan Program and conform to the requirements specified in the Act or this rule chapter.

Notes

Fla. Admin. Code Ann. R. 67-38.0026

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS.

New 3-23-93, Amended 1-16-96, Formerly 9I-38.003, Amended 3-26-98, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

New 3-23-93, Amended 1-16-96, Formerly 9I-38.003, Amended 3-26-98, 7-21-03, 2-3-05, 11-21-07, 11-22-09.