Definitions, Application and Selection Process for Developments, Development Requirements, Fees, Terms and Conditions of MMRB Loans, Credit Underwriting Procedures, Refundings and Troubled Development Review, HC Credit Underwriting Procedures, ...
FLORIDA HOUSING FINANCE CORPORATION
RULE NOS.:RULE TITLES:
67-21.002Definitions
67-21.003Application and Selection Process for Developments
67-21.006Development Requirements
67-21.007Fees
67-21.008Terms and Conditions of MMRB Loans
67-21.014Credit Underwriting Procedures
67-21.018Refundings and Troubled Development Review
67-21.026HC Credit Underwriting Procedures
67-21.031Qualified Contracts
NOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 39, No. 84, April 30, 2013 issue of the Florida Administrative Register.
67-21.002 Definitions.
(63) “IRC” or “Internal Revenue Code” means Sections 42, 142, 147, 151, and 501 of the Internal Revenue Code of 1986, as in effect on the date of this rule chapter, together with corresponding and applicable final, temporary or proposed regulations, notices, and revenue rulings issued with respect thereto by the Treasury or the Internal Revenue Service of the United States, which are incorporated by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Related References and Links or from ______, _____, _____, ____, and _____.
67-21.003 Application and Selection Process for Developments.
(8) No change.
(a) Name of Applicant entity; notwithstanding the foregoing, the name of the Applicant entity may be changed only by written request of an Applicant to Corporation staff and approval of the Board after the Applicant has been invited to enter Credit Underwriting. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of validity and consistency of Application documentation;
(b) Principals of each Developer, including all co-Developers; notwithstanding the foregoing, the Principals of the Developer(s) may be changed only by written request of an Applicant to Corporation staff and approval of the Board after the Applicant has been invited to enter Credit Underwriting. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of validity and consistency of Application documentation;
(c) through (d) No change.
(e) Site for the Development; notwithstanding the foregoing, after the Applicant has been invited to enter Credit Underwriting and subject to written request of an Applicant to Corporation staff and approval of the Corporation, the site for the Development may be increased or decreased, provided the Development Location Point is on the site. With regard to said approval, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of validity and consistency of Application documentation;
(f) through (h) No change.
(i) Total number of units; notwithstanding the foregoing, the total number of units may be increased after the Applicant has been invited to enter Credit Underwriting, subject to written request of an Applicant to Corporation staff and approval of the Corporation. With regard to said approval, the Corporation shall consider the facts and circumstances, inclusive of each Applicant’s request, in evaluating whether the changes made are prejudicial to the Development or to the market to be served by the Development;
(j) The Total Set-Aside Percentage as stated in the last row of the total set-aside breakdown chart for the program(s) applied for in the Set-Aside Commitment section of the Application; notwithstanding the foregoing, the Total Set-Aside Percentage may be increased after the Applicant has been invited to enter Credit Underwriting, subject to written request of an Applicant to Corporation staff and approval of the Corporation. With regard to said approval, the Corporation shall consider the facts and circumstances, inclusive of each Applicant’s request, in evaluating whether the changes made are prejudicial to the Development or to the market to be served by the Development;
(k) through (m) No change.
With regard to paragraphs (a) and (b) above, the Board shall consider the facts and circumstances of each Applicant’s request and any Credit Uunderwriting Report, if available, prior to determining whether to grant the requested change.
67-21.006 MMRB Development Requirements.
(1) through (12) No change.
(13) No change.
(a) through (b) No change.
(c) The Applicant has requested and received Board of Directors’ approval that the Development no longer qualifies as Elderly Housing, with said approval being based upon the criteria outlined in (a) and (b) above.
(14) through (17) No change.
(18) Unless otherwise approved by the Board of Directors, Cross-collateralization shall not be allowed. With regard to said approval, the Board shall consider the facts and circumstances, inclusive of each Applicant’s request, in evaluating whether the changes made will have a negative impact to the Development or whether Cross-collateralization with some or all of the Applicant’s other assets would strengthen the security of the Corporation’s mortgage.
67-21.007 MMRB Fees.
(10) No change.
(a) through (e) No change.
(f) Ensure that not more than 20 percent of the construction cost is subcontracted to any one entity, with the exception of a subcontractor contracted to deliver the building shell of a building of at least five (5) stories which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Board for a specific Development. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees; and
(g) Ensure that no construction cost is subcontracted to any entity that has common ownership or is affiliated with the General Contractor unless otherwise approved by the Board for a specific Development. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and ownership interests in the Development.
67-21.008 Terms and Conditions of MMRB Loans.
(1) No change.
(a) through (e) No change.
(f) Be serviced by such Qualified Lending Institution or other private entity engaged in the business of servicing Mortgage Loans in Florida as the Corporation shall approve; and
(g) through (j) No change.
(2) through (11) No change.
(12) No change.
(a) A survey, as described in the Application, dated within 90 days of the date submitted showing the location of all improvements, encroachments, easements and rights-of-way, and a site plan which has been approved by the appropriate all governmental authorities.
(b) through (j) No change.
(13) through (16) No change.
67-21.014 MMRB Credit Underwriting Procedures
(2)(h) For aAny Development that has rehabilitation with or without acquisition, a capital needs assessment, prepared in accordance with generally accepted industry investment grade standards, shall be ordered by the Credit Underwriter., and Iits findings shall be used to determine the amount of rehabilitation that will be carried out and to set replacement reserves.
67-21.018 Refundings and Troubled Development Review
(4) No change
(a) No change.
(b) The set-asides required by the original MMRB Land Use Restriction Agreement shall be increased by an amount and extended for a period determined by the Corporation. With regard to said determination, the Corporation shall consider the facts and circumstances, inclusive of each Applicant’s request, in evaluating whether the changes made are prejudicial to the Development or to the market to be served by the Development;
(c) through (i) No change.
67-21.026 HC Credit Underwriting Procedures
(13) No change.
(a) through (d) No change.
(e) Ensure that not more than 20 percent of the construction cost is subcontracted to any one entity, with the exception of a subcontractor contracted to deliver the building shell of a building of at least five (5) stories which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Board for a specific Development. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees; and
(f) Ensure that no construction cost is subcontracted to any entity that has common ownership or is affiliated with the General Contractor unless otherwise approved by the Board for a specific Development. With regard to said approval, the Board shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and ownership interests in the Development.
67-21.031 Qualified Contracts
(7) The running of the one-year period described in Section 42(h)(6)(I) of the Code shall may be suspended by the Corporation at any time upon written notice to the owner if: (a) the Corporation concludes that the owner’s request lacks information required in the Qualified Contract Package or other essential information; (b) the owner fails to pay the Qualified Contract Package fee or, thereafter, fails to timely pay any other fees or costs for which the owner is responsible hereunder; (c) the owner and the Corporation are unable to reach mutual agreement on the qualified contract amount; (d) the Development that is the subject of the qualified contract request is not in compliance with the applicable program requirements or if any fees related to the Development are delinquent; (e) the owner fails to allow the Corporation, its agents or prospective buyers access to the Development for purposes of verification, inspection or due diligence; (f) the Applicant or Developer, or Principal, Affiliate or Financial Beneficiary of an Applicant or a Developer is in arrears to the Corporation or any agent or assignee of the Corporation; (g) following request, the owner fails to enter into the written agreement with the real estate broker designated by the Corporation to market and sell the development; or (h) the owner otherwise fails to comply with the requirements of this rule section or the qualified contract regulations. The term of any such suspension shall begin on the date of the written notice provided by the Corporation to the owner, and shall continue unabated until such date as the deficiency, non-payment or disagreement giving rise to the suspension is cured or otherwise acknowledged as having been resolved. in writing by tThe Corporation shall acknowledge the cure or resolution by written notice to the owner within 10 days thereafter. The owner’s election to value the underlying land based on the owner’s appraised value as provided in subparagraph (4) above shall automatically prevent the owner’s purported qualified contract request from beginning the one-year period described in Section 42(h)(6)(I) of the Code until such time as the Corporation and the owner shall mutually agree on the value of the underlying land for purposes of the owner’s qualified contract request.
