All Applicants and Applications must submit or comply with
this section.
(1) An Application for Community Housing Development
Organization (CHDO) certification. Applicants must meet the requirement
for CHDO certification as defined in Section 13.2 of this Title (relating
to the Multifamily Direct Loan Rule).
(2) The Applicant must provide:
(A) evidence of a line of credit or equivalent tool
of at least $80,000 from a financial institution that will be available
for use during the proposed development activities; or
(B) a letter from a third party Certified Public Accountant
(CPA) verifying the capacity of the owner or developer to provide
at least $80,000 as a short term loan for development; and
(C) a letter from the developer's or owner's bank(s)
confirming funds amounting to at least $80,000 is available.
(3) A proposed development plan that is consistent
with the requirements of this Chapter, all other federal and state
rules, and includes:
(A) a floor plan and front exterior elevation for each
proposed unit which reflects the exterior building composition;
(B) a FEMA Issued Flood Map that identifies the location
of the proposed site(s);
(C) letters from local utility providers, on company
letterhead, confirming each site has access to the following services:
water and wastewater, sewer, electricity, garbage disposal and natural
gas, if applicable;
(D) documentation of site control of each proposed
lot: A recorded warranty deed with corresponding executed settlement
statement; or a contract or option for the purchase of the proposed
lots that is valid for at least 120 days from the date of application
submission; and
(E) an "as vacant" appraisal of at least one of the
proposed lots if: The Applicant has an Identity of Interest with the
seller or current owner of the property; or any of the proposed property
is part of a newly developed or under-development subdivision in which
at least three other third-party sales cannot be evidenced. The purchase
price of any lot in which the current owner has an Identity of Interest
must not exceed the appraised value of the vacant lot at the time
of Activity submission. The appraised value of the lot may be included
in the sales price for the homebuyer transaction.
(4) The Department may prioritize Applications or otherwise
incentivize Applications that partner with other lenders to provide
permanent purchase money financing for the purchase of units developed
with funds provided under this subchapter.
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