The authority's staff shall review each application and any
additional information submitted by the applicant or obtained from other
sources by the authority in its review of each proposed M/D development. Such
review shall be performed in accordance with subdivision 2 of subsection D of
§ 36-55.33:1 of the Code of Virginia and shall include, but not be limited
to, the following:
5. A preliminary evaluation of the need for
such housing at rentals or prices which persons and families of low and
moderate income can afford within the general housing market area to be served
by the proposed development.
Based upon the authority's review of the applications,
documents and any additional information submitted by the applicants or
obtained from other sources by the authority in its review of the proposed M/D
developments, the executive director shall accept for processing those
applications which he determines satisfy the following criteria:
1. The applicant either owns or leases the
site of the proposed M/D development or has the legal right to acquire or lease
the site in such manner, at such time and subject to such terms as will permit
the applicant to process the application and consummate the initial
closing.
2. Subject to further
review and evaluation by the authority's staff under § 6 of these rules
and regulations, the estimated construction costs and operating expenses appear
to be complete, reasonable and comparable to those of similar
developments.
3. Subject to further
review and evaluation by the authority's staff under
13VAC10-130-60 of this chapter,
the estimated income from the proposed
M/D development, including any estimated
subsidy or assistance, is sufficient to sustain the operation of the proposed
M/D development.
4. The applicant
has the experience, ability and financial capacity necessary to carry out its
responsibilities for the acquisition, construction, ownership, operation,
maintenance and management of the proposed M/D development.
5. The proposed M/D development will
contribute to the implementation of the policies and programs of the authority
in providing decent, safe and sanitary housing for low and moderate income
persons and families who cannot otherwise afford such housing in the market
area of the proposed M/D development.
6. The proposed M/D development will assist
in meeting the need for such housing in the market area of the proposed M/D
development.
7. It appears that the
proposed
M/D development and applicant will be able to meet the requirements
for feasibility and commitment set forth in
13VAC10-130-60 and that the
proposed
M/D development will otherwise continue to be processed through
initial
closing and will be completed and operated, all in compliance with the
Act, the documents and contracts executed at initial
closing, applicable
federal laws, rules and regulations, and the provisions of these rules and
regulations and without unreasonable delay, interruptions or expense.
The executive director's determinations with respect to the
above criteria shall be based only on the documents and information obtained by
him at the time and are subject to modification or reversal upon his receipt of
additional documents or information at a later time. If the executive director
determines that the above criteria are satisfied, he will recommend further
processing of the application and he shall present his recommendations to the
board. If the executive director determines that one or more of the foregoing
criteria have not been adequately satisfied, he may nevertheless in his
discretion recommend to the board that the application be approved and that the
M/D loan and issuance of the commitment therefor be authorized subject to the
satisfaction of such criteria in such manner and within such time period as he
shall deem appropriate. The board shall review and consider the recommendation
of the executive director, and if it concurs with such recommendation, it shall
by resolution approve the application and authorize issuance of a commitment
therefor, subject to the further review in
13VAC10-130-60 and such terms and
conditions as the board shall require in such resolution.
A resolution authorizing an M/D loan to a for-profit housing
sponsor shall prescribe the maximum annual rate, if any, at which distributions
may be made by such for-profit housing sponsor with respect to the M/D
development, expressed as a percentage of such for-profit housing sponsor's
equity in such M/D development (such equity being established in accordance
with 13VAC10-130-90 of this chapter),
which rate, if any, shall not be inconsistent with the provisions of the Act.
In connection with the establishment of any such rates, the board shall not
prescribe differing or discriminatory rates with respect to substantially
similar M/D developments. The resolution shall specify whether any such maximum
annual rate of distributions shall be cumulative or noncumulative.
An M/D loan shall not be authorized by the board unless the
board by resolution shall make the applicable findings required by subsection A
of § 36-55.39 of the Code of Virginia. The board, however, may in its
discretion authorize the M/D loan without the executive director having
previously made the finding, if applicable, required by subsection B of §
36-55.39 of the Code of Virginia, subject to the condition that such finding be
made by the executive director prior to the financing of the M/D loan. For the
purposes of satisfying subsection B of the aforementioned code section, the
term "substantial rehabilitation" means the repair or improvement of an
existing housing unit, the value of which repairs or improvements equals at
least 25% of the total value of the rehabilitated housing unit.
The executive director may impose such terms and conditions
with respect to acceptance for processing as he shall deem necessary and
appropriate. If any proposed MD development is so accepted for processing, the
executive director shall notify the sponsor of such acceptance and of any terms
and conditions imposed with regard thereto. If the executive director
determines not to recommend approval of the application, he shall so notify the
applicant.
The executive director is authorized to make allocations of
funds for M/D Loans to various types of housing sponsors and developments as he
deems necessary or desirable to promote and accomplish the purposes set forth
herein and in the Act. Any such allocation of funds may be made based upon such
conditions as the executive director may require, including without limitation,
one or both of the following:
(i)
DMHMRSAS agrees, subject to terms and limitations acceptable to the authority,
to provide funds for the developments in an amount sufficient to pay the
operating costs thereof, including debt service with respect to the M/D Loan or
loans applicable thereto; and
(ii)
the authority shall be able to finance the developments by the issuance of
bonds in such amount and under such terms and conditions as the authority deems
satisfactory.
