(1)
Sponsors interested in financing housing developments through the Agency are
encouraged to arrange a preapplication conference with the Agency prior to
preparing the preliminary proposal. A check list of items which should be
prepared for the preapplication conference should be obtained when arranging
the initial meeting with the Agency.
(2) Each preliminary proposal shall include
or indicate the following:
(a) Identification
of the proposed site, including a map showing the location of the site and the
racial composition of the neighborhood, sketch of site plan, dimensions,
unusual site features, if any; (The site shall be free from adverse
environmental conditions, natural or manmade, such as instability, flooding,
septic tank backups, sewage hazards, or mudslides; harmful air pollution, smoke
or dust; excessive noise, vibration, or vehicular traffic; rodent or vermin
infestation; or fire hazards. The neighborhood must not be one which in the
opinion of the Agency is seriously detrimental to family life or in which any
sub-standard dwellings or other undesirable elements predominate, unless there
is actively in progress a concerted program to remedy the undesirable
conditions);
(b) A copy of the site
option agreement(s), contract(s) of sale, or other document(s) which
evidence(s) the sponsor's effective control of the site;
(c) A description of the proposed housing
development including number and type of structures, number of stories,
structural system, exterior finish, heating and air-conditioning system, number
of units by size (number of bedrooms), living area and composition for each
size of unit, and special amenities or features, if any; and design development
plan;
(d) On forms supplied by the
Agency the identity of the sponsor, developer, builder, and the architect (if
known); the qualifications and experience of each; and the names of officials
and principal members, shareholders and investors (of developer or builder
only) and other parties having substantial interest, and the prior
participation of each in housing programs for low and moderate income
citizens;
(e) Whether the proposed
sponsor intends to provide management services or to contract with a managing
agent. In the latter case, provide the identity of the managing agent, if
known, and the other information as required in paragraph (d) of this
section;
(f) Evidence (i) that the
proposed construction is permissible under the applicable zoning, building,
housing and other codes, ordinances or regulations, or a statement of the
proposed action to make the construction permissible and that such action will
be successfully completed prior to the architect's certification required in
Rule 0770-1-4-.02(4) and (ii) of utility and availability;
(g) The monthly rental per unit, by size and
structure type;
(h) The equipment
to be included in the contract rent;
(i) A financial analysis of the proposed
housing development, which shall establish the initial schedule of rents, a
monthly budget for the initial year of operation of the housing development and
a schedule of the use of the proceeds of the Agency mortgage loan;
(j) The utilities and services to be included
in the monthly rental and those utilities and services not so included. For
each utility and service not included in the rental, an estimate of the average
monthly cost (for the first year of occupancy) to the occupants by unit size
and structure type;
(k) Whether the
proposed housing development will displace site occupants. If so, the proposal
shall state the number of families, individuals, and business concerns to be
displaced (identified by race or minority group status, and whether they are
owners or renters), and shall show that there is a feasible plan for relocation
and how necessary relocation payments, if any, will be funded;
(l) The anticipated time required for
completion of the housing development after the loan commitment is
made;
(m) A tenant selection plan
(See Rule 0770-1-4-.08);
(n) The
proposed organizational documents of the sponsor which the Agency will review
in accordance with Rule 0770-1-4-.04;
(o) A cashier's check for an application fee
in an amount determined from time to time by the Agency in its Rules of
Practice. The fee may be refunded only on a case-by-case basis depending on the
extent of processing incurred and reason for termination.
(p) Indication of type mortgage insurance, if
any, proposed to be used. The Agency may request additional information from
the sponsor where it deems necessary.
(3) After receipt of an Agency mortgage loan
application and the preliminary proposal provided in Rule 0770-1-4-.02 (2) and
the preliminary processing thereof by the Agency staff in accordance with these
Rules and Regulations, and the Agency's Rules of Practice, the Agency staff
shall make recommendations to the Executive Director as to the feasibility of
an Agency mortgage loan for the proposed housing development. If the proposed
housing development is preliminarily determined to be feasible for financing
with an Agency mortgage loan, the Executive Director will issue to the housing
sponsor the Agency's Feasibility Letter. Such a Feasibility Letter may be
issued for a term not to exceed ninety (90) days, subject to extension of such
term by the Agency for good cause shown. Such a Feasibility Letter shall not
constitute a commitment to loan on behalf of the Agency, but shall constitute a
determination by the Agency staff that the proposed housing development is
feasible for financing with an Agency mortgage loan on the basis of the
preliminary review and analysis of the proposed site, market, legal
requirements, community services, design, engineering, development costs,
operating budget and the housing sponsor's qualifications, upon the terms and
conditions contained in such Feasibility Letter.
(4) In every instance the Feasibility Letter
in Rule 0770-1-4-.02(3) shall include as one of its terms and conditions the
requirement for submission of working drawings and specifications for the
proposed housing development. The working drawings and specifications shall be
accompanied by a certification by a licensed architect that in his judgement
(a) said drawings and specifications are consistent with the descriptions and
sketches submitted in the preliminary proposal pursuant to Rule 0770-1-4-.02(2)
(c) and (b) said housing development satisfies the requirement of Rule
0770-1-4-.02(2)(f). Where mortgage insurance is required, the Feasibility
Letter shall also include as one of its terms and conditions the requirements
of evidence of qualification for conditional or firm commitment for mortgage
insurance.
(5) Upon payment of the
commitment fee established by the Agency's Rules of Practice and satisfaction
of the terms and conditions contained in a Feasibility Letter, satisfactory
completion of the processing of such application by the Agency staff, and
approval of the application by the Executive Director, the Agency staff will
present its analysis and recommendation regarding the mortgage loan application
for the proposed housing development to the Agency Board for action on
authorizing a commitment for an Agency mortgage loan.
