67-38.002: Definitions
67-38.0026: General Program Requirements and Restrictions
67-38.003: Application Submission Procedures
67-38.004: Incomplete Applications and Rejection Criteria
67-38.005: Application Evaluation and Award Guidelines
67-38.007: Terms of the PLP Loan
67-38.008: Eligible Uses for the Loan
67-38.010: Credit Underwriting Procedures
67-38.011: Fees
67-38.014: Disbursement Procedures
PURPOSE AND EFFECT: The purpose of Rule Chapter 67-38, Florida Administrative Code (F.A.C.) is to establish the procedures by which the Florida Housing Finance Corporation shall administer the Predevelopment Loan Program (PLP) which helps to fund the initial and up front costs associated with the building or rehabilitation of affordable housing. These funds may be requested by any unit of government, public housing authority established pursuant to Chapter 421, F.S., community-based or not-for-profit organization, for-profit entity wholly owned by one or more qualified not-for-profit organizations, or limited partnership with the community-based or not-for-profit organization that holds at least 51% of the ownership not owned by a for-profit entity and must materially participate in the development and operation of the Development. Revisions to the Rule are required to implement technical and clarifying changes. The adoption of these revisions will increase the efficiency and effectiveness for program service delivery and will provide greater clarification of the program.
SUMMARY: The Corporation reviewed the contents of this rule chapter to ensure that the language contained herein is still in line with the Statute, current goals of the Corporation and reflects any material changes that have taken place within the structure or application process of the Predevelopment Loan Program.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 420.528 FS.
LAW IMPLEMENTED: 420.507, 420.521-.529 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: September 17, 2009, 10:00 a.m.
PLACE: Florida Housing Finance Corporation, Formal Conference Room, Fifth Floor, 227 North Bronough Street, Tallahassee, Florida 32301
Additionally, interested parties may participate by dialing 1(888)808-6959. When prompted, enter Conference Code 3884197 followed by the # key.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Robert Dearduff, Special Programs Administrator, (850)488-4197. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Robert Dearduff, Special Programs Administrator, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329
THE FULL TEXT OF THE PROPOSED RULE IS:
67-38.002 Definitions.
(1) through (4) No change.
(5) Application Package means the forms and, instructions obtained from the Corporation at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329 or from the Corporations Website, which shall be completed and submitted to the Corporation in order to apply for a specific Florida Housing program. With respect to PLP, Form PLP 1115 (Rev 11/09 10/07) is hereby adopted and incorporated herein by reference. Copies of such may be obtained by contacting the Special Programs Administrator at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329.
(6) through (15) No change.
(16) Development Plan or Form TAP 1215 (Rev 11/09 02/05) means the written description of the proposed Development submitted to the Corporation by the Technical Assistance Provider, with the concurrence of the Applicant, in the form created and approved by Corporation. Form TAP 1215 is hereby adopted and incorporated herein by reference. Copies of such may be obtained by contacting the Special Programs Administrator at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329.
(17) through (36) No change.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.0026 General Program Requirements and Restrictions.
(1) No change.
(a) through (d) No change.
(e) A limited liability company or limited partnership if its managing member or general partner is a Community-Based or Not-For-Profit Organization that holds at least 51% of the ownership interest in the Development held by the managing member or general partner entity. The Not-For-Profit entity shall own an interest in the Development, either directly or indirectly; shall not be affiliated with or controlled by a for-profit corporation; and shall materially participate in the development and operation of the Development throughout the Compliance Period as stated in the Land Use Restriction Agreement.
(2) In order to close on the PLP Loan, the Applicant entity approved by the Board shall have site control and the ability to secure the loan through a mortgage or other collateral.
(3)(2) PLP Loans shall be limited to eligible predevelopment and site acquisition costs approved for the Development by the TAP and the Corporation and are limited to:
(a) $500,000 when no funds are being requested for non-site acquisition; and or
(b) $500,000 $750,000 when funds are being requested for site acquisition of which funds for the site acquisition cost (including good faith deposits applied to the sales price). The total PLP Loan amount shall not exceed $750,000. shall be limited to $500,000
(4)(3) All funds from the PLP loan shall be expended on the eligible expenses outlined in Rule 67-38.008, F.A.C.
(5)(4) Site acquisition cost shall be subject to approval of an assigned Credit Underwriter.
(6)(5) The Corporation shall limit the PLP Loan to an amount which can be secured through a mortgage on the Development Site, the pledging of capital fund finance program funds as approved by HUD or other collateral approved by the Corporation. Such determination shall require written recommendation by the TAP or Credit Underwriter and be based on the following: mortgages, liens, or both currently on the Development Site, and shall be based on the or value of the Development Site as determined by appraisal dated within 12 months of receipt of the Application.
(7)(6) For rental Developments:
(a) The Applicant must commit to Set-Aside a minimum of 20% 60% of the completed rental units to be rented to persons or households whose income does not exceed 50% 60% of the area median income, as determined by HUD and adjusted by household size, for the metropolitan statistical area or county in which the Development is located, and
(b) No change.
(8)(7) For home ownership Developments:
(a) through (b) No change.
(9)(8) Applicants are required to work with a Technical Assistance Provider (TAP) as assigned and directed by the Corporation until repayment of the PLP Loan, withdrawal of the Application, de-obligation of the PLP Loan, or termination from the PLP. The Corporation shall pay all fees required by the TAP.
(10)(9) If the Applicant is utilizing PLP funds to purchase the PLP Development Site, including good faith deposits applied to the sales price of the land, Credit Underwriting will be required by a Credit Underwriter assigned by the Corporation. The Applicant is responsible for paying all the Credit Underwriting fees, which is an eligible PLP expense.
(11)(10) If awarded a PLP Loan, the proceeds of such may only be used for PLP eligible expenses as outlined in Rule 67-38.008, F.A.C.
(12)(11) The Development must be consistent with the purposes of the Predevelopment Loan Program and conform to the requirements specified in the Act or this rule chapter.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.003 Application Submission Procedures.
(1) through (4) No change.
(5) Applications shall be accompanied by the non-refundable Application fee as set forth in the Application Package. Applications shall be submitted on the forms provided in the Application Package and shall be bound in three ring binders and shall have tabs for each form and exhibit. Exhibits shall be placed behind the form to which they refer. Failure to comply with any of the requirements set forth in this rule chapter shall result in the determination that the Application has not met Threshold Requirements.
(6) No change.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.004 Incomplete Applications and Rejection Criteria.
(1) through (2)(b)(v) No change.
(vi) Application is submitted for a Development which an application has previously been submitted and not withdrawn.
(vii) Application is submitted for an ineligible purpose.
(3) through (4) No change.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.005 Application Evaluation and Award Guidelines.
(1) through (6) No change.
(7) The Technical Assistance Provider shall work with the Applicant to formulate a Development Plan and PLP budget. The Development Plan and PLP budget shall clearly set forth in detail the Applicants anticipated predevelopment tasks and activities, timeline, itemized budget, sources to fund all anticipated predevelopment expenses, including those in excess of the amounts to be requested under the Predevelopment Loan Program, and the anticipated sources and uses of construction and permanent financing. The anticipated activities and expenses shall be those necessary prior to closing on construction or permanent financing for the Development. The Development Plan shall also set forth the exact number of units to be set aside, including the number of units set-aside for Farmworkers if priority was given for meeting the Farmworker Set-Aside.
(8) The Applicant shall be given up to six months from the Technical Assistance Providers date of assignment Applicants date of execution of the Invitation to Participate letter to complete and submit the Development Plan and PLP budget unless prior written approval of an extension is received from the Corporation. The Invitation to Participate letter shall be canceled if the Development Plan and PLP budget are is not submitted within the six-month period. All PLP Loan documents, if any, shall be cancelled. Any commitment fees paid shall be retained by the Corporation. With the prior approval of the TAP, the Applicant may request an extension for submitting the Development Plan and PLP budget in writing to the Corporation at least 30 calendar days prior to the end of the original six-month period.
(9) No change.
(10) Following the TAP and Corporation staffs approval of the Development Plan and PLP budget, the PLP Loan request shall be submitted to the Board for approval. Amendments to the Development Plan and PLP budget shall be allowed upon a favorable recommendation of the Technical Assistance Provider. Board approval shall not be required on PLP budget line item adjustments that do not exceed 10% of the approved non-site acquisition costs.
(11) If an increase to the PLP Loan is requested or an Applicant name change is requested, Board approval is required. Any increase to the PLP Loan amount must comply with limits set forth in subsection 67-38.0026(3), F.A.C.
(12) If an Applicant or Developer change is requested after the Board approves a PLP Loan, the change shall be approved by the Board. Development name changes do not require Board approval.
(13)(11) Following approval of the PLP Loan, the Applicant will receive written notice of such approval in the form of a commitment letter issued by the Corporation. The Applicant shall submit the final commitment fee and return the executed acceptance of commitment to the Corporation within 20 calendar days from the date of the commitment letter.
(14)(12) If the Board does not approve the PLP Loan request, no funds shall be disbursed other than for expenses incurred for services of the Technical Assistance Provider. Any commitment fees paid by the Applicant shall be retained by the Corporation.
(15)(13) In the event the Development Plan receives approval and the Applicant is unable to proceed to completion of Predevelopment Loan Program activities or obtain permanent or construction financing, any commitment fees paid shall be retained by the Corporation.
(16)(14) Following receipt of the final commitment fee, the Applicant shall be given up to six months from the date of the Commitment letter to execute such loan documents, as appropriate for such circumstances, including a mortgage, loan agreement, promissory note, LURA and any other customary loan documentation as may be required by the Corporation and will be provided to the Applicant. With the prior written approval of the Technical Assistance Provider, the Applicant may request a written extension on the loan closing to the Corporation at least 30 calendar days prior to the end of the original six-month period. The loan must close in the name of the entity that has site control of the Development. Upon execution of all loan documents by both the Applicant and the Corporation, funds will be available for disbursement for eligible predevelopment activities as specified in this rule chapter.
(17)(15) A positive Credit Underwriting Report is required for closing on any portion of the PLP Loan that has been approved by the Board for site acquisition costs including good faith deposits applied to the sales price. The Applicant shall be given up to six months from the date of the second Commitment letter to execute a mortgage, loan agreement, promissory note, LURA and any other customary loan documentation provided to the Applicant. With the prior written approval of the Technical Assistance Provider, the Applicant may request a written extension on the site acquisition closing to the Corporation at least 30 calendar days prior to the end of the original six-month period. Upon execution of all loan documents by both the Applicant and the Corporation, funds will be available for disbursement for site acquisition activities as specified in this rule chapter.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.007 Terms of the PLP Loan.
(1) If the Applicant entity is comprised of a 100% ownership interest by a Not-For Profit Organization or a for-profit entity wholly-owned by one or more Not-For Profit Organizations, or if the Applicant is a Public Housing Authority, Tthe PLP Loan shall bear an interest rate of 1%. Otherwise, the PLP Loan shall bear an interest rate of 3%.
(2) The PLP Loan shall be secured by such customary documents and collateral as are necessary to ensure repayment in accordance with the terms and conditions approved by the Corporation.
(3) through (4) No change.
(5) With respect to rental Developments, the PLP Loans Maturity Date shall be on the earlier of:
(a) The date of closing on the first source of permanent or construction loan for the Development; or
(b) The date of closing on the tax credit partnership and receipt of the initial disbursement; or
(c)(b) Three years from the date of execution of the loan documents by the Corporation or other such extended loan Maturity Date approved by the Board.
(6) through (10) No change.
(11) The Applicant shall submit electronic progress reports evidencing successful completion of the requisite tasks and activities set forth in the Development Plan to the Technical Assistance Provider twice annually on not more than a quarterly basis as determined by the Corporation. The Technical Assistance Provider shall submit the reports to the Corporation. Reports are due to the Corporation by the 15th 10th day of April, July, October, and January for so long as funds are outstanding.
(12) through (16) No change.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.008 Eligible Uses for the Loan.
(1) No change.
(2) The Corporation shall monitor all predevelopment activity expenditures through the designated Technical Assistance Provider and shall deny disbursements which have not been approved by the Technical Assistance Provider prior to submission to the Corporation. Draw requests shall not be processed without the Technical Assistance Providers written approval. All draw requests are submitted by the TAP to the Corporation.
(3) No change.
(a) through (c) No change.
(d) Legal fees, except those associated with application preparation and submissions;
(e) No change.
(f) Administrative expenses such as phone charges, travel related to the Development, copying, printing, and postage fees. Other expenses requested under this subsection shall be pre-approved by the Corporation. Salaries of employees of the applicant are not an eligible expense.
(g) Development consultant fees. Consultant fees incurred in connection with the submission or preparation of the PLP Application or for any other activities which can be provided by the Technical Assistance Provider shall not be eligible predevelopment expenses. The consultant shall demonstrate appropriate experience in affordable housing Development projects and shall be approved by the TAP. No person, corporation, partnership, or entity having an identity of interest in the Development, or the Applicant, or any employee of such may act as a third party consultant;
(h) through (t) No change.
(u) Capital needs assessment;
(w)(u) Other fees as approved by Florida Housing.
(4) through (5) No change.
(6) An applicant that applies for a PLP Loan for the acquisition and preservation of an affordable housing development shall:
(a) Be allowed to access PLP funding, not to exceed $20,000 per Development, for the purpose of conducting a capital needs assessment (CNA) to determine the feasibility of preserving the Development after the Board has approved the Development plan and PLP budget. The CNA funding shall be secured by a loan agreement.
(b) Be required to repay the funds, according to this Rule chapter, if the CNA determines that the Development is feasible for preservation. If the Applicant pursues the remainder of the approved PLP loan, the funding for the CNA shall be included in the Loan agreement for the non site acquisition portion of the loan and be secured by a mortgage or other collateral.
(c) Be eligible to have the CNA funds forgiven if the results of the CNA determine that the Development is not feasible for preservation. If this occurs, no additional PLP funds will be made available for the Development.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.010 Credit Underwriting Procedures.
(1) If an Applicant requests funds for site acquisition or if the Corporation deems Credit Underwriting necessary to determine the feasibility of a development or the eligibility of the Applicant or its Affiliates on a Development that does not include a request for acquisition funds, or requests an extension of the term of the PLP Loan, the Corporation will assign a Credit Underwriter to perform the Credit Underwriting Report.
(2)(a) through (d) No change.
(e) Make a determination as to the eligibility and competence of the Applicant entity and all Principals of the Applicant.
(3) through (6) No change.
(7) It is the responsibility of the Applicant with the assistance of the Technical Assistance Provider to comply with each part of this rule chapter and to request in writing and provide evidence acceptable to the Corporation of extenuating circumstances for any requested waiver or extension. A failure to comply with any part of this rule chapter without the prior written approval of the TAP and written permission of the Corporation shall result in the disqualification of the Development, loan de-obligated or application withdrawn by the Corporation.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.011 Fees.
(1) No change.
(a) No change.
(b) If PLP funds are to be used for site acquisition and the Applicant requests an extension of the PLP Loan Maturity Date, a credit underwriting fee pursuant to the contract between the Corporation and the Credit Underwriter shall be paid. If a Development involves scattered sites, a single credit underwriting fee shall be charged for the first site. This fee may be paid from the PLP Loan proceeds;
(c) No change.
(d) Following approval an additional commitment fee shall be paid within 20 calendar days of written notice to the Applicant that the Development Plan has been approved. In the event the Development Plan does not receive approval, the commitment fee paid at the time of acceptance of the Invitation to Participate letter shall be retained by the Corporation. In the event the Applicant successfully completes the Predevelopment Loan Program activities and obtains permanent or construction financing, the Applicants PLP Loan repayment amount will be reduced by the full commitment fees paid provided the Applicant is in compliance with the PLP Rule;
(e) through (f) No change.
(2) through (3) No change.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
67-38.014 Disbursement Procedures.
After the PLP Loan has successfully closed, the PLP Loan shall be disbursed in partial payments by the Corporation to the Applicant, title company or third party contractors subsequent to compliance with the following conditions for either home ownership or rental Developments:
(1) No change.
(2) All draw Any disbursement requests shall set forth the Predevelopment activities and expenses which have been paid or will be paid to the contractors, sub-contractors, professionals, and consultants. Draw requests amount requested by the Applicant and shall be accompanied by invoices, cancelled checks or other such documentation to evidence the amount of the draw request and eligible Predevelopment activities. kind of work or labor that has been or is to be performed; the value of the same; the identification of the portion of the Development Site on which the work has been performed; and that such contractors, sub-contractors, material men, laborers, professionals, consultants and all persons employed by the Applicant to work on the Development have been paid for work performed or will be paid. Lien waivers or receipts for work or labor which has been completed shall be submitted along with requests for disbursement. Lien waivers or receipts for work which will be paid from the requested disbursement shall be submitted prior to receiving Aadditional draw requests shall not be processed until all required documentation on previous draw disbursements is received by the Corporation;
(3) through (4) No change.
(5) In the event that the Applicant receives PLP funding for site acquisition, the Applicant shall must provide a Mortgage on the Development Site as collateral for the loan subject only to such encumbrances approved by the Corporation; however, if the Applicant is offering a subordinate Mortgage or other collateral for the PLP Loan, the same shall be subject to a favorable recommendation of the Credit Underwriter and the approval of the Corporation.
Rulemaking Specific Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. HistoryNew 3-23-93, Amended 1-16-96, Formerly 9I-38.002, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07,________.
