Code of Maine Rules
99 - INDEPENDENT AGENCIES
346 - MAINE STATE HOUSING AUTHORITY
Chapter 12 - RESIDENTIAL PROPERTY MUNICIPAL SECURITIES APPROVAL RULE
Section 346-12-5 - Criteria for Issuance of Certificate of Approval

Universal Citation: 99 ME Code Rules ยง 346-12-5

Current through 2024-38, September 18, 2024

In determining whether or not to issue a certificate of approval for any project, the Authority shall determine that:

A. The project will make a contribution to economic growth of, or the betterment of the health, welfare, or safety of the inhabitants of the State.

B. The project will not result in a substantial detriment to existing housing in the State. In order to make this determination, the Authority shall consider such factors as it deems necessary to measure and evaluate the effect of the project on existing housing including:

i. Whether, as a result of the project, there will not be sufficient housing demand within the market area of the State to be served by the project to satisfy the existing housing stock; and

ii. Whether any adverse economic effect of the project on existing housing is outweighed by the contribution which the project will make to the economic growth of, or the betterment of the health, welfare, or safety of the inhabitants of the State.

Interested parties shall be given an opportunity to present their objections to the project on grounds that the project will result in a substantial detriment to existing housing. If any such party presents specific objections the Authority may divulge whatever information concerning the project which is permitted by statute and it deems reasonably necessary for a fair presentation by the objecting party and evaluation of such objections. The applicant shall then have the burden of demonstrating that the project will not result in a substantial detriment to existing housing. A reasonably current market analysis may be required by the Authority in order to meet this burden. In cases where no interested parties object to the project this requirement shall be deemed satisfied. If the Authority finds that the applicant has failed to meet its burden, the application shall be denied.

C. Adequate provision is being made to meet any increased demand upon public facilities that might result from the project.

D. The Department of Environmental Protection has certified to the Authority that all licenses required by the department with respect to the project have been issued or that none are required. Any subsequent enlargement or addition to the project for which approval is sought from the Authority shall also require certification by the department.

E. For certificates of approval issued in response to applications received prior to July 15, 1986, the revenue obligation securities shall bear interest at a rate or rates approved by the Authority. In giving approval for an interest rate, the Authority shall specify a rate which shall be the maximum rate for the particular revenue obligation security issue related to a single project, which rate may be a variable rate measured as a percentage of, or otherwise in relation to a prime rate or other measuring standard. In granting approval of interest rates, the Authority shall consider:

i. Interest rates in the current money market.

ii. The credit worthiness of the proposed owner, lessee or other user.

iii. Whether it is reasonable to expect, on the basis of available information that the user or any guarantor will be able to pay debt service upon the securities and to provide for the maintenance, operation and repair of the project.

In making its determination as to rates of interest allowable, the Authority shall give such weight to the factors in this section as it deems adequate and the findings of the Authority shall be final.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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