Fla. Admin. Code Ann. R. 67-38.008 - Eligible Uses for the Loan

(1) The proceeds of the Loan shall only be used for eligible expenses specified in the approved Development Plan.

(2) The Corporation shall monitor all predevelopment activity expenditures through the designated Technical Assistance Provider and shall deny disbursements which have not been approved by the Technical Assistance Provider prior to submission to the Corporation. Draw requests shall not be processed without the Technical Assistance Provider's written approval. All draw requests are submitted by the TAP to the Corporation.

(3) Eligible predevelopment expenses shall include the following if such expenses or services were required to be incurred or rendered prior to closing of construction or permanent financing:

(a) Market and feasibility analysis;

(b) Rezoning;

(c) Title search;

(d) Legal fees, except those associated with application preparation and submissions;

(e) Boundary survey;

(f) Administrative expenses such as phone charges, travel related to the Development, copying, printing, and postage fees. Other expenses requested under this subsection shall be pre-approved by the Corporation. Salaries are not an eligible expense.

(g) Development consultant fees. Consultant fees incurred in connection with the submission of preparation of the PLP Application or for any other activities which can be provided by the Technical Assistance Provider shall not be eligible predevelopment expenses. The consultant shall demonstrate appropriate experience in affordable housing Development projects and shall be approved by the TAP. No person, corporation, partnership, or entity having an identity of interest in the Development, or the Applicant, or any employee of such may act as a third party consultant;

(h) Fees of the PLP Credit Underwriter;

(i) Customary, good faith or earnest money deposit for the acquisition of the Development Site;

(j) Commitment fees to secure construction or permanent financing;

(k) Biological and environmental assessments;

(l) Soil tests;

(m) Appraisals;

(n) Approved acquisition expenses in connection with the Development Site;

(o) Marketing expenses;

(p) Permitting/impact fees;

(q) Architectural/engineering fees;

(r) Fees in connection with a completion audit;

(s) Insurance fees;

(t) Connection fees; and,

(u) Capital needs assessment;

(v) Other fees as approved by Florida Housing.

(4) The Applicant shall be required to work with the Technical Assistance Provider to complete the predevelopment activities in a timely and satisfactory manner.

(5) Applicants may request use of PLP Loan funds for Development Site acquisition by providing to Florida Housing:

(a) Evidence that all other predevelopment expenses have been paid or appropriate funding for outstanding expenses have been reserved. If PLP funds are requested for eligible uses other than Development Site acquisition, those funds shall be made available after customary closing documents are executed. PLP funds for acquisition shall not be released until such time as this and the following requirements have been provided;

(b) A detailed explanation as to the necessity to acquire title;

(c) A recommendation from the Technical Assistance Provider that funding be provided for Development Site acquisition; and,

(d) A Credit Underwriting Report, which includes a recommendation from the Credit Underwriter that funds be disbursed for Development Site acquisition.

(6) An applicant that applies for a PLP Loan for the acquisition and preservation of an affordable housing development shall:

(a) Be allowed to access PLP funding, not to exceed $20, 000 per Development, for the purpose of conducting a capital needs assessment (CNA) to determine the feasibility of preserving the Development after the Board has approved the Development plan and PLP budget. The CNA funding shall be secured by a loan agreement.

(b) Be required to repay the funds, according to this rule chapter, if the CNA determines that the Development is feasible for preservation. If the Applicant pursues the remainder of the approved PLP loan, the funding for the CNA shall be included in the Loan agreement for the non site acquisition portion of the loan and be secured by a mortgage or other collateral.

(c) Be eligible to have the CNA funds forgiven if the results of the CNA determine that the Development is not feasible for preservation. If this occurs, no additional PLP funds will be made available for the Development.

Notes

Fla. Admin. Code Ann. R. 67-38.008

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

New 3-23-93, Amended 1-16-96, 5-21-96. Formerly 9I-38.008, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

New 3-23-93, Amended 1-16-96, 5-21-96. Formerly 9I-38.008, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.