Current through Register Vol. 56, No. 18, September 16, 2024
(a) The following
conditions must be met before a return on investment will be authorized by the
Agency:
1. A final mortgage closing must be
held, unless a waiver is granted in accordance with (b) below;
2. The project must be current in all
financial obligations, including debt service, repair and replacement reserve
and tax and insurance escrows. For purposes of this paragraph, project reserve
accounts shall be considered current if they are funded to an acceptable level,
as determined by the Agency, in accordance with the Agency's funding
schedule;
3. Compliance with all
repairs required by the Agency based upon the Agency's most recent physical
inspection report;
4. All required
reports and statements must be submitted by the housing sponsor;
5. Surplus cash must be available at the time
of the request; and
6. The housing
sponsor must use forms as required by the Agency when requesting a return on
investment.
(b) The
requirement of a final mortgage closing prior to receiving a return on
investment may be waived by the Executive Director if it is determined that the
closing is being delayed due to circumstances beyond the control of the housing
sponsor (for example, construction litigation). In addition to the need for
such a determination, in order to have such requirement waived, the housing
sponsor must complete the following to the satisfaction of the Executive
Director:
1. Submission of Development Cost
Certification.
2. Submission of
Bank Statements on the Construction Loan Account.
3. Execution of a Memorandum of Understanding
setting forth agreement as to the final mortgage amount including any funds
necessary for final construction payment and any additional development costs
that are approved by the Agency; and agreement, if applicable, regarding a
reduction in the original mortgage loan amount.
(c) In addition to the conditions listed in
(a) above, the following conditions shall be met by assisted living residences
(ALRs) before return on investment shall be approved by the Agency and
disbursed to the housing sponsor:
1. The ALR
shall have a sustaining occupancy for two full consecutive years; and
2. The ALR shall have an operating reserve
fund with 75 days' worth of operating expenses, including expenses of tenants'
meals and basic services.
