Definitions, Federal Set-Aside Requirements for MMRB Loans, Issuance of Revenue Bonds, Non-Credit Enhanced Multifamily Mortgage Revenue Bonds, Issuance of Bonds for Section 501(c)(3) Entities, HC General Program Procedures and Requirements
FLORIDA HOUSING FINANCE CORPORATION
RULE NOS.:RULE TITLES:
67-21.002Definitions
67-21.004Federal Set-Aside Requirements for MMRB Loans
67-21.010Issuance of Revenue Bonds
67-21.013Non-Credit Enhanced Multifamily Mortgage Revenue Bonds
67-21.019Issuance of Bonds for Section 501(c)(3) Entities
67-21.027HC General Program Procedures and Requirements
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. 40, No. 185, September 23, 2014 issue of the Florida Administrative Register.
The following subsections in Rule 67-21.002 have been changed to read:
(38) “Elderly Housing” means housing or a unit being occupied or reserved for qualified persons pursuant to the Federal Fair Housing Act and Section 760.29(4), F.S. The Federal Fair Housing Act is incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from https://www.flrules.org/gateway/reference.asp?No=Ref-02838.
(60) “HUD Risk Sharing Program” means the program authorized by section 542(c) of the Housing and Community Development Act of 1992, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02839.
(63) “IRC” or “Internal Revenue Code” means Sections 42, 142, 147, 151, and 501 of the Internal Revenue Code of 1986, 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 Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02833, http://www.flrules.org/Gateway/reference.asp?No=Ref-02834, http://www.flrules.org/Gateway/ reference.asp?No=Ref-02835, http://www.flrules.org/Gateway/reference.asp?No=Ref-02836 and http://www.flrules.org/Gateway/reference.asp?No=Ref-02837.
(88) “Qualified Institutional Buyer” is sometimes called a “sophisticated investor” and specifically includes the following:
(a) Any of the following entities, acting for its own account or the accounts of other Qualified Institutional Buyers that, in the aggregate, own and invest on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the entity:
1. Any insurance company as defined in section 2(13) of the Securities Act of 1933, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02840;
2. Any investment company registered under the Investment Company Act of 1940 or any business development company as defined in section 80a-2(a)(48) of that Act, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02841;
3. Any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02842;
4. No change.
5. Any employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02843;
6. No change.
7. Any business development company as defined in section 80b-2(a)(22) of the Investment Advisors Act of 1940, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02844;
8. No change.
(b) Any dealer registered under section 15 of the Securities Exchange Act of 1934, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02845, acting on its own behalf or on the behalf of other Qualified Institutional Buyers who in the aggregate own and invest at least $10 million of securities of issuers not affiliated with the dealer (not including securities held pending public offering).
(c) through (f) No change.
The following subsection in Rule 67-21.004 has been changed to read:
(3) For Developments financed solely through the issuance of Taxable Bonds or refundings of Tax-exempt Bonds originally issued under section 103(b)(4)(A) of the Internal Revenue Code of 1954, as amended, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02847, 20 percent of the residential units in the Development shall be occupied by or reserved for occupancy by a Family whose Annual Household Income does not exceed 80 percent of the area median income limits adjusted for Family size (the 20/80 set-aside).
Rule 67-21.010 has been changed to read:
The Corporation shall fund Mortgage Loans with the proceeds from the sale of Bonds. The issuance and sale of the Bonds shall be governed by resolutions adopted by the Corporation and by Section 420.509, F.S., and this Rule Chapter applicable law and rule. If Bonds cannot be sold or cannot be sold in an amount or at an interest rate or under conditions which satisfy the Credit Underwriting Report, as the same may be amended, the Corporation shall terminate its MMRB Loan Commitment and such other agreements as were executed in conjunction with the proposed MMRB Loan.
Rule 67-21.013 has been changed to read:
(1) No change.
(2) The Bonds shall be issued in minimum denominations of $250,000 (subject to reduction by means of redemption) and an investment letter satisfactory to the Corporation and its counsel shall be obtained from each initial purchaser of the Bonds (including any purchaser purchasing such Bonds in an immediate resale from an underwriter), but shall not be required of subsequent purchasers of the Bonds, to the effect that, among other things, such purchaser is a Qualified Institutional Buyer, is purchasing such Bonds for its own account and not for immediate resale to a purchaser other than a another Qualified Institutional Buyer, and has made an independent investment decision as a sophisticated or institutional investor; or
(3) No change.
The following paragraph of subsection (3) in Rule 67-21.019 has been changed to read:
(a) An initial Bond Counsel fee of $1,000 along with IRS Form 1023, Rev. December 2013, which is adopted and incorporated herein by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02853, and all attachments and correspondence to and from the IRS relative to section 501(c)(3) status of the Applicant; and
The following subsection in Rule 67-21.027 has been changed to read:
(3) All of the dwelling units within a Housing Credit Development shall be rented or available for rent on a continuous basis to members of the general public. The owner of the Housing Credit Development shall not give preference to any particular class or group in renting the dwelling units in the Housing Credit Development, except to the extent that dwelling units are required to be rented to Eligible Persons. All Housing Credit Developments must comply with the Fair Housing Act as implemented by 24 CFR Part 100, Section 504 of the Rehabilitation Act of 1973 as implemented by 24 CFR Part 8 (“Section 504 and its related regulations”), and Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28 CFR Part 35. To the extent that a Housing Credit Development is not otherwise subject to Section 504 and its related regulations, the Housing Credit Development shall nevertheless comply with Section 504 and its related regulations as requirements of the Housing Credit Program to the same extent as if the Housing Credit Development were subject to Section 504 and its related regulations in all respects. To that end, for purposes of the Housing Credit Program, a Housing Credit Allocation shall be deemed “Federal financial assistance” within the meaning of that term as used in Section 504 and its related regulations for all Housing Credit Developments. Section 504 of the Rehabilitation Act of 1973, as implemented by 24 CFR Part 8, is incorporated by reference and available on the Corporation’s Website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://www.flrules.org/Gateway/reference.asp?No=Ref-02854.
