Fla. Admin. Code tit. 67 | Fla. Admin. Code Title 67 — Florida Housing Finance Corporation

Chapter 67-21 NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC)

Fla. Admin. Code R. 67-21.001 Purpose and Intent

The purpose of this rule chapter is to establish the procedures by which the Corporation shall:

(1) Administer the Application process, determine loan amounts and make and service mortgage loans for new construction or rehabilitation of affordable rental units under the Multifamily Mortgage Revenue Bonds (MMRB) Program authorized by Section 420.509, F.S.; and,

(2) Administer the Application process, determine Non-Competitive Housing Credit amounts, and implement the provisions of the Housing Credit (HC) Program authorized by Section 42 of the IRC and Section 420.5099, F.S.

(3) This rule chapter shall be reviewed, and if necessary, repealed or renewed through the rulemaking process no later than five years from the effective date.

History

Rulemaking Authority 420.507(12), 420.508(3)(c), (6) FS. Law Implemented 420.509, 420.5099 FS. History–New 7-16-13, Repromulgated 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, Amended 6-23-20, Repromulgated 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.002 Definitions

(1) “ACC” or “Annual Contribution Contract” means a contract between HUD and a Public Housing Authority containing the terms and conditions under which HUD assists in providing for development of housing units, modernization of housing units, operation of housing units, or a combination of the foregoing.

(2) “Acknowledgment Resolution” means the official action taken by the Corporation to reflect its intent to finance a Development provided that the requirements of the Corporation, the terms of the MMRB Loan Commitment, and the terms of the Credit Underwriting Report are met.

(3) “Act” means the Florida Housing Finance Corporation Act, Chapter 420, Part V, F.S.

(4) “Address” means the address number, street name and city or, at a minimum, street name, closest designated intersection, and whether or not the Development is located within a city or in the unincorporated area of the county. If located within a city, include the name of the city.

(5) “Affiliate” means any person that:

(a) Directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant or Developer;

(b) Serves as an officer or director of the Applicant or Developer or of any Affiliate of the Applicant or Developer;

(c) Directly or indirectly receives or will receive a financial benefit from a Development except as further described in Rule 67-21.0025, F.A.C., or

(d) Is the spouse, parent, child, sibling, or relative by marriage of a person described in paragraph (a), (b) or (c), above.

(6) “Allocation Authority” means the total dollar volume of the state of Florida’s Housing Credit ceiling available for distribution by the Corporation and authorized pursuant to Section 42 of the IRC.

(7) “Annual Household Income” means the gross income of a person, together with the gross income of all persons who intend to permanently reside with such person in the Development to be financed by the Corporation, as of the date of occupancy shown on the income certification promulgated by the Corporation.

(8) “Applicable Fraction” means Applicable Fraction as defined in Section 42(c)(1)(B) of the IRC.

(9) “Applicant” means any person or legal entity of the type and with the management and ownership structure described herein that is seeking a loan or funding from the Corporation by submitting an Application or responding to a competitive solicitation pursuant to rule Chapter 67-60, F.A.C., for one or more of the Corporation’s programs. For purposes of Rule 67-21.031, F.A.C., Applicant also includes any assigns or successors in interest of the Applicant. Unless otherwise stated in a competitive solicitation, as used herein, a ‘legal entity’ means a corporation, limited partnership or limited liability company legally formed as of the Application deadline.

(10) “Application” means the forms and exhibits created by the Corporation for the purpose of providing the means to apply for Non-Competitive Housing Credits only, or both MMRB and Non-Competitive Housing Credits, as outlined in subsection 67-21.003(1), F.A.C. A completed Application may include additional supporting documentation provided by an Applicant.

(11) “Board” or “Board of Directors” means the Board of Directors of the Corporation.

(12) “Bond Counsel” means the attorney or law firm retained by the Corporation to provide the specialized services generally described in the industry as the role of bond counsel.

(13) “Bond” or “Bonds” means Bond as defined in Section 420.503, F.S.

(14) “Bond Trustee” or “Trustee” means a financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bond holders, and in some instances the Corporation, in enforcing the terms of the Program Documents.

(15) “Building Identification Number” means, with respect to a Housing Credit Development, the number assigned by the Corporation to describe each building in a Housing Credit Development, pursuant to Internal Revenue Service Notice 88-91.

(16) “Calendar Days” means the seven (7) days of the week.

(17) “Commercial Fishing Worker” means Commercial fishing worker as defined in Section 420.503, F.S.

(18) “Competitive Housing Credits” or “Competitive HC” means those Housing Credits which come from the Corporation’s annual Allocation Authority.

(19) “Compliance Period” means a period of time that the Development shall conform to all set-aside requirements as described further in the rule chapter and agreed to by the Applicant in the Application.

(20) “Contact Person” means the person with whom the Corporation will correspond concerning the Application and the Development. This person cannot be a third-party consultant.

(21) “Corporation” means the Florida Housing Finance Corporation as defined in Section 420.503, F.S.

(22) “Cost of Issuance Fee” means the fee charged by the Corporation to the Applicant for the payment of the costs and expenses associated with the sale of Bonds and the loaning of the proceeds, including a fee for the Corporation.

(23) “Credit Enhancement” means a letter of credit, third party guarantee, insurance contract or other collateral or security pledged to the Corporation or its Trustee for a minimum of ten years by a third party Credit Enhancer or financial institution securing, insuring or guaranteeing the repayment of the Mortgage Loan or Bonds under the MMRB Program.

(24) “Credit Enhancer” means a financial institution, insurer or other third party which provides a Credit Enhancement or guarantee instrument acceptable to the Corporation securing repayment of the Mortgage Loan or Bonds issued pursuant to the MMRB Program.

(25) “Credit Underwriter” means the independent contractor under contract with the Corporation having the responsibility for providing Credit Underwriting services.

(26) “Credit Underwriting” means an in-depth analysis by the Credit Underwriter of all documents submitted in connection with an Application.

(27) “Credit Underwriting Report” means the report that is a product of Credit Underwriting.

(28) “Cross-collateralization” means the pledging of the security of one Development to the obligations of another Development.

(29) “DDA” or “Difficult Development Area” means areas designated by the Secretary of Housing and Urban Development as having high construction, land, and utility costs relative to area median gross income in accordance with section 42(d)(5)(B) of the IRC.

(30) “Developer” means the individual or legal entity which possesses the requisite skill, experience, and credit worthiness to successfully produce affordable housing as required in the Application. Unless otherwise stated in a competitive solicitation, as used herein, a ‘legal entity’ means a corporation, association, joint venturer, or partnership legally formed as of Application deadline.

(31) “Developer Fee” means the fee earned by the Developer.

(32) “Development” means Project as defined in Section 420.503, F.S.

(33) “Development Cost” means the total of all costs incurred in the completion of a Development excluding Developer Fee, operating deficit reserves, and total land cost as typically shown in the Development Cost line item on the development cost pro forma.

(34) “Development Location Point” means a single point selected by the Applicant on the proposed Development site that is located within 100 feet of a residential building existing or to be constructed as part of the proposed Development. For a Development which consists of Scattered Sites, this means a single point on the site with the most units that is located within 100 feet of a residential building existing or to be constructed as part of the proposed Development.

(35) “Disclosure Counsel” means the Special Counsel designated by the Corporation to be responsible for the drafting and delivery of the Corporation’s disclosure documents such as preliminary official statements, official statements, re-offering memorandums or private placement memorandums and continuing disclosure agreements.

(36) “Document” means electronic media, written or graphic matter, of any kind whatsoever, however produced or reproduced, including records, reports, memoranda, minutes, notes, graphs, maps, charts, contracts, opinions, studies, analysis, photographs, financial statements and correspondence as well as any other tangible thing on which information is recorded.

(37) “Elderly” means Elderly as defined in Section 420.503, F.S.

(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.

(39) “Eligible Persons” means one or more natural persons or a family, irrespective of race, creed, national origin, or sex, determined by the Corporation to be of Low Income.

(40) “EUA” or “Extended Use Agreement” means, with respect to the HC Program, an agreement which sets forth the set-aside requirements and other Development requirements under the HC Program.

(41) “Executive Director” means the Executive Director of the Corporation.

(42) “Family” means a household composed of one or more persons.

(43) “Farmworker” means Farmworker as defined in Section 420.503, F.S.

(44) “Farmworker Development” means a Development:

(a) Of not greater than 80 units, at least 40 percent of the total residential units of which are occupied or reserved for Farmworker Households; and,

(b) For which independent market analysis demonstrates a local need for such housing.

(45) “Farmworker Household” means a household of one or more persons wherein at least one member of the household is a Farmworker at the time of initial occupancy.

(46) “Final Housing Credit Allocation” means, with respect to a Housing Credit Development, the issuance of Housing Credits to an Applicant upon completion of construction or Rehabilitation of a Development and submission to the Corporation by the Applicant of a completed and executed Final Cost Certification Application Package pursuant to Rule 67-21.027, F.A.C.

(47) “Financial Beneficiary” means any Principal of the Developer or Applicant entity who receives or will receive any direct or indirect financial benefit from a Development, except as further described in Rule 67-21.0025, F.A.C.

(48) “Florida Keys Area” means all lands in Monroe County, except:

(a) That portion of Monroe County included within the designated exterior boundaries of the Everglades National Park and areas north of said Park;

(b) All lands more than 250 feet seaward of the mean high water line owned by local, state, or federal governments; and

(49) “Freddie Mac Multifamily Targeted Affordable Housing Lender” means any entity that (a) has been approved and designated by the Federal Home Loan Mortgage Corporation (“Freddie Mac”) to act as a lender and seller-servicer for Freddie Mac multifamily targeted affordable housing transactions (including those under Freddie Mac’s Tax-Exempt Loan Program) and (b) has accepted a written commitment from Freddie Mac to purchase Bonds under Freddie Mac’s Tax-Exempt Loan Program pursuant to the terms and conditions of said commitment.

(50) “General Contractor” means a person or entity duly licensed in the state of Florida with the requisite skills, experience and credit worthiness to successfully provide the units required in the Application, and which meets the criteria described in Rules 67-21.014 and 67-21.026, F.A.C.

(51) “HC” or “Housing Credit Program” means the rental housing program administered by the Corporation in accordance with section 42 of the Internal Revenue Code and Section 420.5099, F.S., under which the Corporation is designated the Housing Credit agency for the state of Florida within the meaning of the following:

(a) Section 42(h)(7)(A) of the Internal Revenue Code;

(b) This rule chapter regarding Non-Competitive Housing Credits; and,

(52) “Homeless” means Homeless as defined in Section 420.621, F.S.

(53) “Housing Credit” means the tax credit issued in exchange for the development of rental housing pursuant to the following:

(a) Section 42 of the IRC;

(b) The provisions of this rule chapter regarding Non-Competitive Housing Credits; and,

(54) “Housing Credit Allocation” means the amount of Housing Credits determined by the Corporation as necessary to make a Development financially feasible and viable throughout the Development’s Compliance Period pursuant to Section 42(m)(2)(A) of the IRC.

(55) “Housing Credit Development” means the proposed or existing rental housing Development(s) for which Housing Credits have been applied or received.

(56) “Housing Credit Extended Use Period” means, with respect to any building that is included in a Housing Credit Development, the period that begins on the first day of the Compliance Period in which such building is part of the Development and ends on the later of:

(a) The date specified by the Corporation in the Extended Use Agreement; or

(b) The date that is the fifteenth anniversary of the last day of the Compliance Period, unless earlier terminated as provided in Section 42(h)(6) of the IRC.

(57) “Housing Credit Period” means with respect to any building that is included in a Housing Credit Development, the period of 10 years beginning with:

(a) The taxable year in which such building is placed in service; or

(b) At the election of the Applicant, the succeeding taxable year.

(58) “Housing Credit Rent-Restricted Unit” means, with respect to a Housing Credit Development, a unit for which the gross monthly rent shall not exceed 30 percent of the imputed income limitation applicable to such unit as committed to by the Applicant in its Application and shall be determined in a manner consistent with Section 42(g)(2) of the IRC.

(59) “Housing Credit Set-Aside” means the number of units in a Housing Credit Development necessary to satisfy Section 42(g) of the IRC and the percentage of units set-aside by the Applicant in the Application or in response to a competitive solicitation, if applicable.

(60) “Housing Credit Syndicator” means a person, partnership, corporation, trust or other entity that regularly engages in the purchase of interests in entities that produce Qualified Low Income Housing Projects as defined in Section 42(g) of the IRC.

(61) “HUD” means the United States Department of Housing and Urban Development.

(62) “HUD Risk Sharing Program” means the program authorized by section 542(c) of the Housing and Community Development Act of 1992.

(63) “Identity of Interest” means, for the purpose of the HUD Risk Sharing Program, any person or entity that has a one percent or more financial interest in the Development and in any entity providing services for a fee to the Development.

(64) “Investment Banker” means, with respect to an issue of Bonds, an underwriter, placement agent or structuring agent who is under contract with the Corporation and whose primary purpose is to either:

(a) In the case of an underwriter, acquire the Bonds in a commercial arm’s length transaction for resale to investors, or

(b) In the case of a placement agent or structuring agent, arrange for the sale of Bonds.

In either case, the underwriter, placement agent or structuring agent assists on matters pertinent to the Bond issue, such as structure, timing, marketing, terms, Bond ratings and cash flows.

(65) “IRC” or “Internal Revenue Code” means 26 CFR Sections 42, 142, 147, 152, 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.

(66) “IRMA” or “Independent Registered Municipal Advisor” means a professional who is under contract with the Corporation to provide advice with respect to the issuance of municipal securities, which advice may include, among other things, the determination of the method of sale for one or more series of Bonds. The IRMA owes the Corporation a fiduciary duty and is obligated to place the interest of the Corporation ahead of its own and may not engage in self-dealing.

(67) “Local Government” means Local government as defined in Section 420.503, F.S.

(68) “Local Public Fact Finding Hearing” means a public hearing requested by any person residing in the county or municipality in which the proposed Development is located and which is conducted by the Corporation for the purpose of receiving public comment or input regarding the financing of a proposed Development with Bonds by the Corporation.

(69) “Low Income” means the adjusted income for a Family which does not exceed 80 percent of the area median income.

(70) “Lower Income Residents” means Families whose annual income does not exceed either 50 percent or 60 percent depending on the minimum set-aside elected of the area median income as determined by HUD with adjustments for household size. In no event shall occupants of a Development unit be considered to be Lower Income Residents if all the occupants of a unit are students as defined in Section 152(f)(2) of the Internal Revenue Code or if the residents do not comply with the provisions of the Internal Revenue Code defining Lower Income Residents. (See section 142 of the Internal Revenue Code.)

(71) “MMRB” or “MMRB Program” means the Corporation’s Multifamily Mortgage Revenue Bond Program.

(72) “MMRB LURA” or “MMRB Land Use Restriction Agreement” means an agreement among the Corporation, the Bond Trustee and the Applicant which sets forth certain set-aside requirements and other Development requirements under rule Chapter 67-21, F.A.C.

(73) “MMRB Loan” means the loan made by the Corporation to the Applicant from the proceeds of the Bonds issued by the Corporation.

(74) “MMRB Loan Agreement” means the Program Documents or Loan Documents wherein the Corporation and the Applicant agree to the terms and conditions of the MMRB Loan, including the repayment of the MMRB Loan.

(75) “MMRB Loan Commitment” means the loan commitment executed by the Corporation and the Applicant after the issuance of a favorable Credit Underwriting Report that defines the conditions under which the Corporation agrees to make the MMRB Loan to the Applicant for the purpose of financing a Development.

(76) “Mortgage” means Mortgage as defined in Section 420.503, F.S.

(77) “Mortgage Loan” means Mortgage loan as defined in Section 420.503, F.S.

(78) “Non-Competitive Housing Credits” or “Non-Competitive HC” means those Housing Credits which qualify to be used with Tax-Exempt Bond-Financed Developments and do not come from the Corporation’s annual Allocation Authority.

(79) “Non-Profit” unless otherwise set forth in a competitive solicitation, means a qualified non-profit entity as defined in Section 42(h)(5)(C), subsection 501(c)(3) or 501(c)(4) of the IRC and organized under Chapter 617, F.S., if a Florida Corporation, or organized under similar state law if organized in a jurisdiction other than Florida, to provide housing and other services on a not-for-profit basis, which owns at least 51 percent of the ownership interest in the Development held by the general partner or managing member entity, which shall receive at least 25 percent of the Developer Fee and which entity is acceptable to federal and state agencies and financial institutions as a sponsor for affordable housing, as further described in Rule 67-21.0025, F.A.C.

(80) “Note” means a unilateral agreement containing an express and absolute promise to pay to the Corporation a principal sum of money on a specified date, which provides the interest rate and is secured by a Mortgage.

(81) “PBRA” or “Project-Based Rental Assistance” means a rental subsidy through a contract with HUD or RD for a property.

(82) “Persons with Special Needs” means Person with special needs as defined in Section 420.0004(13), F.S.

(83) “PHA” or “Public Housing Authority” means a housing authority under Chapter 421, F.S.

(84) “Preliminary Determination” means an initial determination by the Corporation of the amount of Housing Credits outside the Allocation Authority needed from the Treasury to make a Tax-Exempt Bond-Financed Development financially feasible and viable.

(85) “Preservation” means rehabilitation of an existing development that is at least 20 years old as of the date the Application is submitted to the Corporation and has an active contract through one or more of the following HUD or RD programs: Sections 202 of the Housing Act of 1959 (12 U.S.C. §1701q), 236 of the National Housing Act (12 U.S.C. §1701), 514, 515, or 516 of the U.S. Housing Act of 1949 (42 U.S.C. §1484), or 811 of the U.S. Housing Act of 1937 (42 USC §1437), or either has PBRA, as defined in this rule, or is public housing assisted through ACC. If funded through the Corporation, the Development must maintain at least the same number of PBRA or ACC units. Such developments must not have closed on funding from HUD or RD within the 20 years prior to when the Application is submitted to the Corporation where the budget was at least $10,000 per unit for rehabilitation in any year.

(86) “Principal” has the meanings set forth below and any Principal other than a natural person must be a legally formed entity as of the Application deadline:

(a) For a corporation, each officer, director, executive director, and shareholder of the corporation.

(b) For a limited partnership, each general partner and each limited partner of the limited partnership.

(d) For a trust, each trustee of the trust and all beneficiaries of majority age (i.e.; 18 years of age) as of Application deadline.

(e) For a Public Housing Authority, each officer, director, commissioner, and executive director of the Authority.

(87) “Private Placement” means the sale of the Corporation Bonds directly or through an Investment Banker to 35 or fewer initial purchasers who are not purchasing the Bonds with the intent to offer the Bonds for retail sale and who are Qualified Institutional Buyers.

(88) “Program Documents” or “Loan Documents” means the MMRB Loan Commitment, MMRB Loan Agreement, Note, Mortgage, Credit Enhancement, MMRB Land Use Restriction Agreement, trust indenture, preliminary and final official statements, intercreditor agreement, assignments, bond purchase agreement, compliance monitoring agreement, mortgage servicing agreement and such other ordinary and customary documents necessary to issue and secure repayment of the Bonds and the MMRB Loan sufficient to protect the interests of the Bond owners and the Corporation.

(89) “QAP” or “Qualified Allocation Plan” means, with respect to the HC Program, the 2026 Qualified Allocation Plan which is adopted and incorporated herein by reference, effective upon approval by the Governor of the State of Florida, pursuant to Section 42(m)(1)(B) of the IRC and sets forth the selection criteria and the preferences of the Corporation for Developments which will receive Housing Credits. The QAP is available on the Corporation’s website under the Multifamily Programs link or by contacting the Housing Credit Program at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329, or from http://flrules.org/Gateway/reference.asp?No=Ref-19456.

(90) “QCT” or “Qualified Census Tract” means any census tract which is designated by the Secretary of Housing and Urban Development as having either 50 percent or more of the households at an income which is less than 60 percent of the area median gross income, or a poverty rate of at least 25 percent, in accordance with section 42(d)(5)(B) of the Internal Revenue Code.

(91) “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:

Any insurance company as defined in section 2(13) of the Securities Act of 1933,
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,
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,
Any plan established and maintained by a state or state agency or any of its political subdivisions, on behalf of their employees,
Any employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974,
Trust funds of various types, except for trust funds that include participants’ individual retirement accounts or H.R. 10 plans,
Any business development company as defined in section 80b-2(a)(22) of the Investment Advisors Act of 1940,
Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation (except a bank or savings and loan defined in section 3(a)(2) or 3(a)(5)(A) of the Securities Act of 1933, or a foreign bank or savings and loan or similar institution), partnership, Massachusetts or similar business trust, or any investment adviser registered under the Investment Advisors Act.

(b) Any dealer registered under section 15 of the Securities Exchange Act of 1934, 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) Any dealer registered under section 15 of the Securities Exchange Act of 1934 acting in a riskless principal transaction on behalf of a Qualified Institutional Buyer.

(d) Any investment company registered under the Investment Company Act that is part of a family of investment companies that together own at least $100 million in securities of issuers, other than companies with which the investment company or family of investment companies is affiliated.

(e) Any entity, all of whose equity owners are Qualified Institutional Buyers.

(f) Any bank or savings and loan defined in section 3(a)(2) or 3(a)(5)(A) of the Securities Act of 1933 or foreign bank or savings and loan or similar institution that, in aggregate with the other Qualified Institutional Buyers, owns and invests in at least $100 million in securities of affiliates that are not affiliated with it and that has an audited net worth of at least $25 million as demonstrated during the 16 to 18 months prior to the sale.

(92) “Qualified Lending Institution” means any lending institution designated by the Corporation.

(93) “Qualified Project Period” means Qualified Project Period as defined in Section 142(d) of the Internal Revenue Code.

(94) “RD” or “Rural Development” means the Rural Development (RD), Rural Housing service (RHS) agency, within the United States Department of Agriculture (USDA), or any successor agency, department, entity or instrumentality designated by law to administer the programs or exercise the powers of the USDA RD RHS.

(95) “Redevelopment” means:

(a) A proposed Development that

Involves demolition of multifamily rental residential structures currently or previously existing;
Is at least 30 years old as of the date the Application is submitted to the Corporation;
Either originally received financing or is currently financed through one or more of the following HUD or RD programs: Sections 202 of the Housing Act of 1959 (12 U.S.C. §1701q), 236 of the National Housing Act (12 U.S.C. §1701), 514, 515 or 516 of the U.S. Housing Act of 1949 (42 U.S.C. §1484), 811 of the U.S. Housing Act of 1937 (42 USC §1437), or has PBRA as defined in this rule; and
New construction of replacement structures on the same site maintain at least the same number of PBRA units, or

(b) A proposed Development

Involves demolition of public housing structures currently or previously existing on a site with a Declaration of Trust;
Is at least 30 years old as of the date the Application is submitted to the Corporation;
Is assisted through ACC;
New construction of replacement structures will be on the same site; and
At least 25 percent of the total new units will be financed with PBRA, ACC, or both, after Redevelopment.

(96) “Rehabilitation” means, with respect to the Housing Credit Program, the alteration, improvement or modification of an existing permanent residential structure where less than 50 percent of the proposed construction work consists of new construction, as further described in Rule 67-21.0025, F.A.C.

(97) “Rehabilitation Expenditures,” with respect to the MMRB Program, has the meaning set forth in section 147(d)(3) of the Internal Revenue Code.

(98) “Scattered Sites,” as applied to a single Development, means a Development site that, when taken as a whole, is comprised of real property that is not contiguous (each such non-contiguous site that contains, or will contain upon completion of the Development, at least one residential building within a Scattered Site Development, is considered to be a “Scattered Site.”) For purposes of this definition “contiguous” means touching at a point or along a boundary. Real property is contiguous if the only intervening real property interest is an easement provided the easement is not a roadway or street. All of the Scattered Sites must be located in the same county.

(99) “Special Counsel” means any attorney or law firm retained by the Corporation, pursuant to a Request for Qualifications (RFQ), to serve as counsel to the Corporation, including Disclosure Counsel.

(100) “State Bond Allocation” means the allocation of the state private activity bond volume limitation pursuant to Chapter 159, Part VI, F.S., administered by the Division of Bond Finance and allocated to the Corporation for the issuance of Tax-exempt Bonds by either the Single Family Mortgage Revenue Bonds or MMRB Programs.

(101) “Taxable Bonds” means those Bonds on which the interest earned is included in gross income of the owner for federal income tax purposes pursuant to the Internal Revenue Code.

(102) “Tax Exempt Bond-Financed Development” means a Development which has been financed by the issuance of Tax-exempt Bonds subject to applicable volume cap pursuant to section 42(h)(4) of the Internal Revenue Code.

(103) “Tax-exempt Bonds” means those Bonds on which all or part of the interest earned is excluded from gross income of the owner for federal income tax purposes pursuant to the Internal Revenue Code.

(104) “TEFRA Hearing” means a public hearing held pursuant to the requirements of the Internal Revenue Code and in accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA), section 147(f) of the Internal Revenue Code, at which members of the public or interested persons are provided an opportunity to present evidence or written statements or make comments regarding a requested application for Tax-exempt Bond financing of a Development by the Corporation.

(105) “Total Development Cost” means the total of all costs incurred in the completion of a Development all of which shall be subject to the review and approval by the Credit Underwriter and the Corporation pursuant to this rule chapter, and as further described in Rule 67-21.0025, F.A.C.

(106) “Treasury” means the United States Department of Treasury or other agency or instrumentality created or chartered by the United States to which the powers of the Department of Treasury have been transferred.

(107) “Website” means the Florida Housing Finance Corporation’s website, the Universal Resource Locator (URL) of which is www.floridahousing.org.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.503, 420.503(4), 420.507, 420.508, 420.509, 420.5099 FS. History–New 12-3-86, Amended 2-22-89, 12-4-90, 11-23-94, 2-6-97, 1-7-98, Formerly 9I-21.002, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 10-5-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-7-24, 7-30-25, 8-13-26.

Fla. Admin. Code R. 67-21.0025 Miscellaneous Criteria

(1) A minimum rehabilitation investment is required to assure meaningful, rather than simply cosmetic, rehabilitation of properties. In addition to the alteration, improvement or modification of an existing structure, Rehabilitation or Preservation costs during any 24-month period with respect to the Housing Credit Program must equal or exceed an average of $40,000 in hard rehabilitation costs per unit and are in addition to the 20% of the property’s adjusted basis requirements and minimum qualified basis per low income unit set forth in Section 42(e)(3)(A)(ii) of the IRC. For purposes of this subsection, “hard rehabilitation costs” include site improvements, off-site improvements, rehabilitation costs for physical improvements to the property, and construction contingency and do not include general contractor fees or overhead, general requirements, architect and engineering fees, permit fees, financing or soft costs, or developer fees.

(2) For purposes of this rule chapter, in accordance with Section 42 of the IRC, a for-profit entity wholly owned by one or more qualified non-profit organizations will constitute a Non-Profit entity. The purpose of the Non-Profit must be, in part, to foster low-income housing and such purpose must be reflected in the Articles of Incorporation of the Non-Profit entity. A Non-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 total affordability period as stated in the MMRB Land Use Restriction Agreement and the Extended Use Agreement, as applicable. If an Applicant applies to the Corporation as a Non-Profit entity but does not qualify as such, the Application will fail threshold.

(3) Total Development Cost includes the following:

(a) The cost of acquiring real property and any buildings thereon, including payment for options, deposits, or contracts to purchase properties, of which the total cost cannot exceed the appraised value of the real property as determined in the Credit Underwriting process.

(b) The cost of site preparation, demolition, and development.

(d) Fees in connection with the planning, execution, and financing of the Development, such as those of architects, engineers, attorneys, accountants, Developer Fee, and the Corporation. However, fees of the Applicant’s or Developer’s attorney(s) awarded in conjunction with litigation against the Corporation with respect to a Development shall not be included in Total Development Cost.

(e) The cost of studies, surveys, plans, permits, insurance, interest, financing, tax and assessment costs, and other operating and carrying costs during construction, rehabilitation, or reconstruction of the Development.

(f) The cost of the construction, rehabilitation, and equipping of the Development.

(g) The cost of land improvements, such as landscaping and offsite improvements related to the Development, whether such costs are paid in cash, property, or services.

(h) Expenses in connection with initial occupancy of the Development.

(i) Allowances for contingency reserves and any anticipated operating reserves as recommended by the Credit Underwriter and approved by the Corporation.

(j) The cost of such other items, including relocation costs, indemnity and surety bonds, premiums on insurance, and fees and expenses of trustees, depositories, and paying agents for the Corporation’s bonds, for the construction or Rehabilitation of the Development.

(4) In determining the income standards of Eligible Persons for its various programs, the Corporation shall take into account the following factors:

(a) Requirements mandated by federal law.

(b) Variations in circumstances in the different areas of the state.

(d) The need for family size adjustments to accomplish the purposes set forth in this rule chapter.

With respect to the HC Program, an Eligible Person shall mean a Family having a combined income which meets the income eligibility requirements of the HC Program and Section 42 of the IRC.

(5) Financial Beneficiary and Affiliate, as defined in Rule 67-21.002, F.A.C., do not include third party lenders, third party management agents or companies, third party service providers, Housing Credit Syndicators, credit enhancers regulated by a state or federal agency, or contractors whose total fees are within the limit described in this rule chapter.

(6) For computing any period of time allowed by this rule chapter, the day of the event from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.

(7) For all Applications, disclosure of the Principals of the Applicant must comply with paragraphs (a) and (b) below, and unless otherwise approved by the Corporation for Applicants requesting Non-Competitive Housing Credits only, all Applicants must also comply with paragraphs (c) and (d) below.

(a) The Applicant must disclose all of the Principals of the Applicant (first principal disclosure level). For Applicants seeking Housing Credits, the Housing Credit Syndicator/Housing Credit investor need only be disclosed at the first principal disclosure level and no other disclosure is required;

(b) The Applicant must disclose all of the Principals of all the entities identified in paragraph (a) above (second principal disclosure level);

(c) The Applicant must disclose all of the Principals of all of the entities identified in paragraph (b) above (third principal disclosure level). Unless the entity is a trust or a non-profit as defined in Section 42(h)(5)(C), subsection 501(c)(3) or subsection 501(c)(4) of the IRC, all of the Principals must be natural persons. A non-profit entity may be identified at the third principal disclosure level if the non-profit wholly owns a real estate development subsidiary identified at the second principal disclosure level; and

(d) If any of the entities identified in paragraph (c) above are a trust or a non-profit, the Applicant must disclose all of the Principals of the trust or a non-profit (fourth principal disclosure level), all of whom must be natural persons.

(e) Applicants requesting Non-Competitive Housing Credits only that request approval from the Corporation to allow for disclosure of natural person Principals below the third disclosure level must send written request to the Corporation which details the reason for the request, including any substantial hardship which prevents the Applicant from complying with paragraphs (c) and (d) of this subsection.

(f) Applicants requesting Non-Competitive Housing Credits shall be relieved of the principal disclosures required in paragraphs (c) through (e) of this subsection if the following criteria are met:

The Applicant has no entities at any principal disclosure level that own more than a 10 percent direct or indirect interest in the General Partner or Non-Investor Member of the Applicant where any natural person Principal owns more than a 10 percent interest in the entity;
The Applicant, its Affiliate entities, or its disclosed Principals collectively have a net worth of at least $250 million;
The Applicant, its Affiliate entities, or its disclosed Principals collectively own or have owned a controlling interest in at least 25 affordable housing projects where:

a. At least 50 percent of the total units are Low Income units and financed in whole or in part utilizing Tax-exempt Bonds or Housing Credits; or

b. At least 50 percent of the total households receive federal, state, or local rental subsidies; and

The Applicant discloses:

a. All non-natural person Principals of all entities at all Principal disclosure levels; provided, that, such disclosure shall not be required for entities that own less than a 10 percent indirect non-controlling interest in the General Partner or Non-Investor Member of the Applicant;

b. Each officer, director, and executive director of the entity that controls day-to-day management and decisions of the Applicant; and

c. A natural person Principal who possesses the authority to legally bind each entity.

(8) Disclosure of the Principals of each Developer must comply with the following:

(a) The Applicant must disclose all of the Principals of the Developer (first principal disclosure level); and

(b) The Applicant must disclose all of the Principals of all the entities identified in paragraph (a) above (second principal disclosure level).

(9) Applicants awarded funding under this rule chapter shall comply with the compliance procedures set forth in Chapter 67-53, F.A.C.

(10) In a land use restriction agreement issued with terms set forth in s. 196.1978(4), F.S., ceasing to provide affordable housing under the land use restriction agreement shall mean that the development does not serve any residents at the set aside commitments set forth in the land use restriction agreement. Prior to a determination by the Corporation of noncompliance related to terms set forth in s. 196.1978(4), F.S., the owner shall be provided with written notice and an opportunity to cure within 90 days. If the development remains out of compliance after the cure period, the penalty under s. 196.1978(4), F.S., shall be enforced upon determination by the Board that the development does not serve any residents at any set-aside designation set forth in the land use restriction agreement. The Board's determination shall be based on a review of program reports, compliance reports, or other documentation required under the land use restriction agreement or Chapter 67-53, F.A.C.

History

Rulemaking Authority 420.507(12), (44), 420.508(3)(c), 196.1978(3)(m) FS. Law Implemented 420.509, 420.5099, 196.1978(4) FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, 7-6-22, Amended 6-28-23, 8-27-24, 7-10-25, Repromulgated 8-13-26.

Fla. Admin. Code R. 67-21.003 Application and Selection Process for Developments

(1) Unless otherwise set forth in a competitive solicitation pursuant to rule Chapter 67-60, F.A.C., Applicants shall apply for Non-Competitive HC or a combination of MMRB and Non-Competitive HC as set forth below. For purposes of this subsection only, the term NC Award shall refer to Non-Competitive HC or a combination of MMRB and Non-Competitive HC, and funding from the Predevelopment Loan Program (PLP) will not be considered to be other Corporation funding.

(a) If the NC Award will be made available, with or without other Corporation funding, through the competitive solicitation funding process outlined in rule Chapter 67-60, F.A.C., the Applicant shall apply for the NC Award using the forms and procedures specified in the applicable competitive solicitation for such other funding. Unless otherwise specifically provided in the solicitation, all of the substantive provisions of this chapter will continue to apply to the NC Award. Any references in this chapter to “Application” shall mean the application or response submitted for such other funding.

(b) If the NC Award will not be made available through the competitive solicitation funding process outlined in rule Chapter 67-60, F.A.C., the Applicant shall utilize the Non-Competitive Application Package. The Non-Competitive Application Package or formNCA (eff. 07-2026) is adopted and incorporated herein by reference and consists of the forms and instructions available, without charge, on the Corporation’s website under the Multifamily Programs link labeled Non-Competitive Programs or from http://flrules.org/Gateway/reference.asp?No=Ref-19511, which shall be completed and submitted to the Corporation in accordance with this rule chapter.

(c) All Applications must be complete, legible and timely when submitted, except as described below. Corporation staff may not assist any Applicant by adding documents to an Application nor shall any Applicant be permitted to use the Corporation’s facilities or equipment for purposes of compiling or completing an Application.

(2) For purposes of the Non-Competitive Application Package, failure to submit an Application completed in accordance with the Application instructions and these rules will result in the failure to meet threshold in accordance with the instructions in the Application and this rule chapter.

(3) For purposes of the Non-Competitive Application Package, each submitted Application shall be evaluated and preliminarily scored using the factors specified in the Non-Competitive Application Package and these rules. The Contact Person shall be notified by email of items identified by the Corporation to be addressed by the Applicant, which may include financial obligations for which an 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. For the Corporation to deem an Application complete, all arrearages must be satisfied.

(4) For purposes of the Non-Competitive Application Package, each Applicant shall be allowed to cure its Application by submitting additional documentation, revised pages and such other information as the Applicant deems appropriate (“cures”) to address the issues raised pursuant to subsection (3), above, that could result in failure to meet threshold. A new form, page or exhibit provided to the Corporation prior to the time the Application is deemed complete shall be considered a replacement of that form, page or exhibit if such form, page or exhibit was previously submitted in the Applicant’s Application. Documents executed by third parties must be submitted in their entirety, including all attachments and exhibits referenced therein, even if only a portion of the original document was revised. Where revised or additional information submitted by the Applicant creates an inconsistency with another item in that Application, the Applicant shall also be required to make such other changes as necessary to keep the Application consistent as revised. In the event an invitation to Credit Underwriting is not extended within 12 months of the date on which the Application was initially received, or (b) by the effective date of any subsequent Non-Competitive Application Package pursuant to paragraph (1)(b) above, due to an uncured failure to meet threshold, then the Application will be deemed to have expired. Following expiration of an Application, the Applicant may submit a new Non-Competitive Application Package for the same Development, which shall include payment of the Application fee for the new Application.

(5) For purposes of the Non-Competitive Application Package, for Applications requesting MMRB and Non-Competitive HC, based on the availability of State Bond Allocation designated by the Board of Directors for multifamily housing, the Corporation will offer Applicants the opportunity to enter Credit Underwriting.

(6) An Applicant shall be ineligible for funding or allocation in any program administered by the Corporation if the Applicant or Affiliate of the Applicant has made fraudulent or material misrepentation as set forth in Section 420.518, F.S.

(7) For purposes of the Non-Competitive Application Package, the Corporation shall reject an Application if, following the submission of the additional documentation, revised pages and other information as the Applicant deems appropriate as described in subsection (4), above:

(a) The Development is inconsistent with the purpose of the MMRB Program, the Housing Credit Program, or both, or does not conform to the Application requirements specified in this rule chapter;

(b) The Applicant fails to achieve the threshold requirements as detailed in these rules, the applicable Application and Application instructions;

(c) The Applicant fails to file all applicable Application pages and exhibits that are provided by the Corporation and adopted under this rule chapter;

(d) The Applicant fails to satisfy any arrearages described in subsection (3), above.

(8) Notwithstanding any other provision of these rules, there are certain items that must be included in the Application and cannot be revised, corrected or supplemented after the Application is deemed complete. Those items are as follows:

(a) Name of Applicant or Developer entity(s); notwithstanding the foregoing, the name of the Applicant or Developer entity(s) may be changed only by written request of an Applicant to Corporation staff and approval of the Corporation after the Applicant has been invited to enter Credit Underwriting. 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;

(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 Corporation after the Applicant has been invited to enter Credit Underwriting. 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. Any allowable replacement to the natural person Principals of a Public Housing Authority or officers and/or directors of a non-profit entity will apply to all preliminarily awarded Applications and Applications pending final Board action that include the Public Housing Authority or non-profit entity. Any allowable replacement of a Principal that was identified as the experienced Developer in a competitive solicitation must meet the experience requirements met by the original Principal;

(d) Applicant that applied as a Non-Profit or for-profit organization;

(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. In addition, if the increase or decrease of the site is such that the proposed Development now meets the definition of a Scattered Site, then the Applicant shall be required to provide such Scattered Sites information and meet all Scattered Sites requirements as required by Corporation staff. 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) Development Category;

(g) Demographic Commitment;

(h) 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;

(i) The Total Set-Aside Percentage as stated in 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;

(j) Submission of the Application by the applicable Application submission deadline, as outlined in the Non-Competitive Application instructions;

(k) Payment of the required Application fee and, if applicable, the TEFRA fee at submission of the Application;

(l) The Applicant must execute the Applicant certification and acknowledgement form included in the NCA.

All other items may be submitted as cures pursuant to subsection (4), above.

(9) A Development will be withdrawn from funding and any outstanding commitments for funds will be rescinded if at any time the Board of Directors determines that the Applicant’s Development or Development team is no longer the Development or Development team described in the Application or to the Credit Underwriter, and the changes made are prejudicial to the Development or to the market to be served by the Development.

(10) If an Applicant or Developer or any Principal, Affiliate or Financial Beneficiary of an Applicant or a Developer has any existing Developments participating in any Corporation programs that remain in non-compliance with the Internal Revenue Code, Title 67, F.A.C., or applicable loan documents, and any applicable cure period granted for correcting such non-compliance has ended as of the time of submission of the Application or at the time of issuance of a Credit Underwriting Report, the requested allocation will, upon a determination by the Board of Directors that such non-compliance substantially increases the likelihood that such Applicant or Developer will not be able to produce quality affordable housing, be denied and the Applicant or Developer and the Affiliates of the Applicant or Developer will be prohibited from new participation in any of the Corporation’s programs until such time as all of their existing Developments participating in any Corporation programs are in compliance.

(11) The withdrawal by the Applicant from any one program will be deemed by the Corporation to be a withdrawal of the Application from all programs.

(12) The name of the Development provided in the Application may not be changed or altered after submission of the Application during the history of the Development with the Corporation unless the change is requested in writing and approved in writing by the Corporation. The Corporation shall consider the facts and circumstances of each Applicant’s request and any Credit Underwriting Report, if available, prior to determining whether to grant such request.

(13) For Applications requesting MMRB:

(a) The Corporation shall initiate TEFRA Hearings on the proposed Developments after Applications are submitted. Neither the TEFRA Hearing, the invitation into Credit Underwriting, nor the Acknowledgment Resolution obligate the Corporation to finance the proposed Development in any way.

(b) Upon receipt of the Credit Underwriting Report, the Corporation shall submit the Credit Underwriting Report to its IRMA for a preliminary recommendation of the method of bond sale for each Development pursuant to Rule 67-21.0045, F.A.C.

(c) The Corporation shall notify the Applicant, in writing, of the Board of Directors determination related to approval of the Credit Underwriting Report and require the Applicant to submit the good faith deposit within 14 Calendar Days from the receipt of such notice.

(d) Upon Board of Directors approval of a Credit Underwriting Report and a preliminary recommendation for the method of bond sale from the Corporation’s IRMA, staff shall proceed with activities necessary to facilitate issuance of the bonds. This shall include assigning an Investment Banker, Bond Counsel, Special Counsel, Disclosure Counsel, Trustee and any other professional necessary to complete the transaction. Requests for Taxable Bonds shall be considered by the Board of Directors in an amount recommended by the Credit Underwriter.

(e) Following receipt of the good faith deposit, the Corporation’s assigned Special Counsel shall begin preparation of the loan commitment.

(f) Upon execution of a loan commitment, the Corporation shall authorize Bond Counsel, Special Counsel and Disclosure Counsel to prepare the Program Documents.

History

Rulemaking Authority 420.507(12), 420.508(3)(c), (6) FS. Law Implemented 420.502, 420.507(4), (13), (14), (18), (19), (20), (21), (24), (35), 420.508, 420.509, 420.5099 FS. History–New 12-3-86, Amended 12-4-90, 11-23-94, 9-25-96, 1-7-98, Formerly 9I-21.003, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, 2-2-15, 10-6-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 8-27-24, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.0035 Applicant Administrative Appeal Procedures

PART II MULTIFAMILY MORTGAGE REVENUE BOND PROGRAM

History

Rulemaking Authority 420.507, 420.508 FS. Law Implemented 120.569(2)(b), 120.57, 420.502, 420.507, 420.508 FS. History–New 11-14-99, Amended 2-11-01, 3-17-02, 10-8-02, 12-4-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-7-11, Repealed 7-16-13.

Fla. Admin. Code R. 67-21.004 Federal Set-Aside Requirements for MMRB Loans

Each Application shall designate one of the following minimum federal set-aside requirements that the Development shall meet commencing with the first day on which at least 10 percent of the units in the property are occupied:

(1) Twenty 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 50 percent of the area median income limits adjusted for Family size (the 20/50 set-aside), or

(2) Forty 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 60 percent of the area median income limits adjusted for Family size (the 40/60 set-aside).

(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, 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).

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.507, 420.508, 420.509 FS. History–New 12-3-86, Amended 2-22-89, 12-4-90, 11-23-94, 9-25-96, 2-6-97, 1-7-98, Formerly 9I-21.004, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, 1-29-06, Repromulgated 4-1-07, 3-30-08, 8-6-09, Amended 11-7-11, 7-16-13, 2-2-15, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.0041 Public Policy Criteria Requirements and Qualified Resident Programs

History

Rulemaking Authority 420.507(12), 420.508(3)(a) FS. Law Implemented 420.502, 420.507(4), (6), (12), (13), (14), (18), (19), (21), 420.508 FS. History–New 2-11-01, Amended 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-21.0045 Determination of Method of Bond Sale

(1) The Corporation may sell Bonds for the purpose of financing a proposed Development through a negotiated sale, competitively bid sale or Private Placement. Prior to a competitively bid sale, the Board of Directors shall authorize a resolution specifying the method of sale.

(2) Following receipt of the Credit Underwriting Report, staff shall provide the Corporation’s IRMA copies of such report for review and preparation of a written recommendation for the method of Bond sale.

(3) In preparing a recommendation for the method of sale to the Board of Directors, the IRMA shall consider the following:

(a) The anticipated credit and security structure of the transaction;

(b) The proposed financing structure of the transaction;

(d) Other factors identified by staff, counsel, or the Applicant.

(4) The written recommendation shall include an identification of the Development, the recommended method of sale, and a summary statement as to why the particular method of sale is being recommended.

(5) For those transactions that the Corporation’s IRMA recommends as candidates for a competitive sale, the Corporation shall engage a structuring agent. The Applicant may, at its sole expense, engage a financial advisor for the transaction. Any cost to the Applicant for the financial advisor engaged by the Applicant in excess of $18,000 must be paid out of the Developer Fee.

(6) For those transactions that the Corporation’s IRMA recommends for a negotiated sale, the Corporation shall appoint an underwriter or placement agent.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(4), (13), (19), (20), 420.508, 420.509(12) FS. History–New 1-7-98, Formerly 9I-21.0045, Amended 1-26-99, Repromulgated 11-14-99, 2-11-01, Amended 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, Repromulgated 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.005 Selection of Qualified Lending Institutions as Credit Underwriters, Originators or Services

History

Rulemaking Authority 420.507(12), 420.508(3)(a) FS. Law Implemented 420.502, 420.507(20), 420.507(4), (6), (13), (18), (19), (20), (21), 420.508 FS. History–New 12-3-86, Amended 9-25-96, 1-7-98, Formerly 9I-21.005, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-21.006 MMRB Development Requirements

A Development shall at a minimum meet the following requirements or an Applicant shall be able to certify that the following requirements shall be met with respect to a Development:

(1) Must provide safe, sanitary and decent multifamily residential housing for lower, middle and moderate income persons or families.

(2) Must be owned, managed and operated as a Development to provide multifamily residential rental property comprised of a building or structure or several proximate buildings or structures, each containing two (2) or more dwelling units and functionally related facilities, in accordance with section 142(d) of the Internal Revenue Code.

(3) The Development shall consist of similar units, containing complete facilities for living, sleeping, eating, cooking and sanitation for a Family.

(4) None of the units in the Development shall be used on a transient basis, nor shall they be knowingly leased for a period of less than 180 days unless a determination is made by the Corporation that there is a specific need in that particular area for leasing arrangements of less than 180 days, but in no event shall a lease be for a period less than 30 days, nor shall a Development be used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, hospital, sanitarium, nursing home, rest home or trailer court or park.

(5) All of the dwelling units shall be rented or shall be available for rent on a continuous basis to members of the general public, and the Applicant shall not give preference to any particular class or group in renting the dwelling units in the Development, except to the extent that dwelling units are required to be occupied in compliance with the Internal Revenue Code or are being held for the Elderly, Commercial Fishing Workers, the Homeless, Persons with Special Needs, or Farmworkers.

(6) The Applicant shall have no present plan to convert the Development to any use other than the use as affordable residential rental property.

(7) None of the units shall at any time be occupied by the owner of the Development or an individual related to the owner as such terms are defined by the IRC; provided, however, that in Developments containing more than 50 residential units, such owner or related person may occupy up to one unit per each 100 units in a Development and such owner or related person must reside in a unit that is in a building or structure which contains at least five (5) residential units.

(8) Commencing with the date on which at least 10 percent of the units in the Development are occupied:

(a) At least 20 percent or 40 percent, whichever is applicable based on Applicant’s selection of the minimum federal set-aside, of the occupied and completed residential units in the Development shall be occupied by Lower Income Residents, prior to the satisfaction of which no additional units shall be rented or leased, except to a Family that is also a Lower Income Resident;

(b) After initial rental occupancy of such residential units by Lower Income Residents, at least 20 percent or 40 percent, whichever is applicable based on Applicant’s selection of the minimum federal set-aside, of the completed residential units in the Development at all times shall be rented to and occupied by Lower Income Residents as required by section 142(d) of the Internal Revenue Code if the Development is financed with the proceeds of Tax-exempt Bonds, or as required by the Act, if the Development is financed with the proceeds of Taxable Bonds, or held available for rental if previously rented to and occupied by a Lower Income Resident.

(9) The Applicant shall obtain and maintain on file income certifications from each Lower Income Resident immediately prior to initial occupancy and at least annually thereafter.

(10) The Applicant shall not take, permit, or cause to be taken any action which would adversely affect the exemption from federal income taxation of the interest on Tax-exempt Bonds, nor shall the Applicant fail to take any action which is necessary to preserve the exemption from federal income taxation of the interest on Tax-exempt Bonds.

(11) The Applicant shall take such action or actions as shall be necessary to comply fully with the Internal Revenue Code, Florida Statutes, and the Corporation’s rules.

(12) The Applicant may limit the leasing of units in a Development to the Elderly, Commercial Fishing Workers, the Homeless, Persons with Special Needs, or Farmworkers as permitted hereby.

(13) In the event that the Applicant has determined that the market no longer supports the Development as Elderly Housing and desires to rent to younger persons or families, the following criteria must be met:

(a) A viable marketing plan is submitted to and is acceptable to the Corporation showing a good faith effort to market the unit as Elderly Housing.

(b) The Applicant demonstrates that a good faith effort was made to lease the unit as Elderly Housing and that such effort was made for at least six (6) months after the certificate of occupancy for the relevant unit was issued.

(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 paragraphs (a) and (b), above.

(14) The Applicant and Developer of a proposed Rehabilitation Development shall make every effort to rehabilitate existing housing without displacing existing tenants or by temporarily moving existing tenants to unaffected units within the Development until the renovation of affected units is completed.

(15) The Corporation must approve, pursuant to rule Chapter 67-53, F.A.C., the Applicant’s selection of a management company prior to the leasing of any units in the Development. The owner of a Development must notify the Corporation of an intended change in the management company prior to such company assuming responsibility for the Development.

(16) The Applicant shall use cost certifications with respect to each Development as required by the United States Department of Housing and Urban Development (“HUD”) in connection with Developments financed by HUD, including the HUD Risk Sharing Program.

(17) The Applicant shall provide annually to the Trustee not later than 151 days after the end of the Applicant’s fiscal year, audited financial statements prepared by an independent certified public accounting firm, consolidated or consolidating, on the Development and any other information required by the Corporation to comply with continuing disclosure requirements imposed by law.

(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.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.507(9), (11), (14), (18), (19), (20), (21), 420.508, 420.509 FS. History–New 12-3-86, Amended 2-22-89, 12-4-90, 9-25-96, 1-7-98, Formerly 9I-21.006, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, Amended 11-7-11, 7-16-13, 2-2-15, Repromulgated 9-15-16, 5-24-17, Amended 7-8-18, Repromulgated 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.007 MMRB Fees

In addition to the fees specified in the Non-Competitive Application Package, or competitive solicitation, as applicable, the Corporation shall collect the following fees and charges in conjunction with the MMRB Program:

(1) Refundable Fees and Charges:

(a) Good faith deposit means a total deposit equal to one percent of the loan amount reflected in the loan commitment paid by the Applicant to the Corporation. The Applicant shall pay a total deposit equal to one percent of the aggregate principal amount of proposed Taxable and Tax-exempt Bonds, or $125,000, whichever is greater, to the Corporation, which deposit may be applied toward the Cost of Issuance Fee. The maximum good faith deposit required is $300,000. The good faith deposit is payable in one (1) installment and is due within 14 Calendar Days of the date the Corporation provides the Applicant the good faith deposit notification as outlined in paragraph 67-21.003(13)(c), F.A.C. If the good faith deposit is exhausted, the Applicant shall be required to pay, within three (3) business days of notice, an additional deposit to ensure payment of the expenses associated with the processing of the Application, the sale of the Bonds, including document production and the securitization of the loan. The good faith deposit shall be remitted by certified check or wire transfer. In the event the MMRB Loan does not close, the unused portion of the good faith deposit shall be refunded to the Applicant. Notwithstanding the foregoing, the Applicant is responsible for all expenses incurred in preparation for loan closing. Any and all costs of the Corporation will be deducted from the good faith deposit prior to refunding any unused funds to the Applicant. In the event that additional invoices are received by the Corporation subsequent to a determination that the MMRB Loan will not close and refunding any unused funds to the Applicant, which invoices related to costs incurred prior to such determination and refunding, Applicant shall be responsible for payment of the balance due as invoiced.

(b) Cost of Issuance Fee: the Corporation shall require Applicants or participating Qualified Lending Institutions selected for participation in the program, to deliver to the Corporation, or, at the request of the Corporation, directly to the Trustee, before the date of delivery of the Bonds, a Cost of Issuance Fee in an amount determined by the Corporation to be sufficient to pay the costs and expenses relating to issuance of the Bonds, which amount shall be deposited into an account to be held by the Trustee. The Corporation shall provide the Applicant with a good faith estimate of the Cost of Issuance Fee prior to closing. The Applicant shall pay all costs and expenses incurred by the Corporation in connection with the issuance of the Bonds, the expenditure of the MMRB Loan proceeds, and provision of Credit Enhancement, if any, even if such costs and expenses exceed the Cost of Issuance Fee. Any amounts remaining in this account at the time the balance is transferred and the account closed pursuant to the trust indenture shall be returned to the Applicant.

(2) Non-refundable Fees and Charges:

(a) TEFRA fee: Applicants shall submit a non-refundable TEFRA fee to the Corporation in the amount of $1,000 upon submission of the Application or request for refunding. This fee shall be applied to the cost of publishing notices of TEFRA Hearings in the Florida Administrative Register and on the Corporation’s Website. If the actual cost of the required publishing exceeds $1,000, Applicant shall be invoiced for the difference. If a Local Public Fact Finding Hearing is requested, the Applicant shall be responsible for payment of any fees incurred by the Corporation. If the first TEFRA approval period has expired and a second TEFRA notice and hearing are required, Applicant is responsible for all costs associated with the additional TEFRA process.

(b) Credit Underwriting and appraisal fee: Applicants shall submit the required non-refundable Credit Underwriting fee to the Credit Underwriter designated by the Corporation within seven (7) Calendar Days of the date of the invitation to enter Credit Underwriting. The Credit Underwriting fee shall be determined pursuant to a contract between the Corporation and the Credit Underwriter. Applicants shall submit the required appraisal fee within seven (7) Calendar Days of being invoiced by the Credit Underwriter.

(c) HUD Risk Sharing fees: Applicants also using the HUD Risk Sharing Program for the Development shall be responsible for associated fees, as follows:

Format II environmental review fee – The fee the Applicant shall pay will be determined by contract between the Corporation and the environmental professional.
Subsidy layering review fee – The fee the Applicant shall pay will be determined by the contract between the Corporation and the Credit Underwriter.

(d) Compliance monitoring fees: The annual monitoring fee the Applicant shall pay will be determined by contract between the Corporation and the monitoring agent.

(e) Permanent loan servicing fees: The annual servicing fee the Applicant shall pay will be determined by contract between the Corporation and the servicer.

(3) The Corporation shall charge such program administration fees as are required to pay the cost of administering the program during the life of the Bonds and MMRB Loan.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(4), (19), 420.509 FS. History–New 12-3-86, Amended 1-7-98, Formerly 9I-21.007, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, Repromulgated 4-1-07, Amended 3-30-08, Repromulgated 8-6-09, Amended 11-7-11, 7-16-13, 2-2-15, 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, Amended 6-23-20, Repromulgated 5-18-21, 7-6-22, 6-28-23, Amended 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.008 Terms and Conditions of MMRB Loans

(1) Each Mortgage Loan for a Development made by the Corporation shall:

(a) Be evidenced by a properly executed Note or other evidence of indebtedness and be secured by a recorded Mortgage;

(b) Provide for a fully amortized payment of the Mortgage Loan in full beginning no later than the 49th month after closing and ending no later than the expiration of the useful life of the property, and in any event, no later than 45 years from the date of the Mortgage Loan;

(d) If the Mortgage Loan is to provide financing for the construction of a Development, have each advance thereof secured, insured, or guaranteed in such manner as the Corporation determines shall protect its interest and those of the Bond holders;

(e) Have the initial review, approval, and origination process accomplished by a Qualified Lending Institution;

(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) Require the submission to the Corporation of an annual audited financial statement for the Development, and for the Applicant if revenue from multiple projects is being pledged. An annual financial statement compiled or reviewed by a licensed Certified Public Accountant may be submitted in lieu of an audited financial statement for the Development prior to the issuance of a certificate of occupancy for any unit in the Development, provided that the subsequent annual audited financial statement shall include all operations since inception.

(h) Unless and until a guarantor’s obligations for a MMRB Loan are terminated as approved in writing by the Corporation or its servicer, each guarantor shall furnish to the Corporation or its servicer financial statements as provided in subparagraphs (i)1. through 5., below, as the Corporation or its servicer may reasonably request.

(i) The audited financial statements are to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

Comparative Balance Sheet with prior year and current year balances,
Statement of revenue and expenses,
Statement of changes in fund balances or equity,
Statement of cash flows; and,
Notes to the financial statements.

The financial statements referenced above should also be accompanied by a certification of the guarantor(s) as to the accuracy of such financial statements, or

a. If an audited financial statement has not been prepared, a federal income tax return filed for the most recently completed year, or

b. For individual guarantors, if an audited financial statement is not available a financial statement certified as true and complete without qualification by such guarantor and a copy of the most recently filed individual federal income tax return.

(j) If Credit Enhancement is used, a Credit Enhancement instrument of less than ten years must be approved by the Board of Directors.

(2) Upon approval, execution, and satisfaction of the terms of the Program Documents by the Applicant and the Corporation, the Bond sale and the MMRB Loan shall be scheduled for closing.

(3) The Applicant may obtain construction financing from an alternative source with the Bond proceeds being invested in accordance with an investment agreement subject to the requirements of the Internal Revenue Code for Tax-exempt Bonds.

(4) The Applicant shall also establish and maintain escrow deposits sufficient to pay any insurance premiums and applicable taxes, as determined by the MMRB Loan Agreement.

(5) The Corporation shall charge such program administration fees as are required to pay the cost of administering the program during the life of the Bonds and MMRB Loan.

(6) The interest rate on the MMRB Loan shall be determined by the Corporation at the time of sale of the Bonds based on the financing structure and the interest rate on the Bonds.

(7) Prepayments shall be permitted only in accordance with the terms and conditions of the Program Documents.

(8) The Corporation shall appoint a Trustee and servicing agent when necessary to administer the program and service the MMRB Loan.

(9) All MMRB Loans are contingent upon:

(a) The sale, issuance and delivery of the Bonds and the availability of Bond proceeds.

(b) The Applicant obtaining title insurance on the property.

(c) The Applicant obtaining all governmental approvals for constructing and operating the Development as a multifamily housing Development.

(d) The Applicant providing to the Corporation, Bond Counsel and Special Counsel the Note, Mortgage, financing statements, survey, insurance policies, escrow agreement, investment agreements, opinions of counsel including preference opinions, if required, and such other documents as are necessary to ensure that the Corporation has a secured Mortgage Loan.

(e) If required by Bond Counsel in order to deliver their opinion in connection with the issuance of the Bonds or at the request of the Corporation, the Bonds being validated pursuant to Chapter 75, F.S., and a certificate of no appeal issuing.

(f) Receipt of TEFRA approval for Tax-exempt Bonds.

(10) All MMRB Loans shall be reviewed and originated by a servicer designated by the Corporation, in conformance with the Act.

(11) The Applicant shall agree to execute or cause to be executed all of the MMRB Program Loan Documents required by the Corporation to secure the unconditional payment of the MMRB Loan and to retain the tax-exempt status of the Bonds, if Bonds are issued as Tax-exempt Bonds.

(12) The Applicant shall, prior to the requested date for funding, or as requested during Credit Underwriting, supply in draft form to the Corporation the following documents with respect to the Development being financed, together with any other documents required by the MMRB Loan Agreement:

(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 governmental authorities.

(b) A fully completed, executed and sealed surveyors’ certification to the Corporation.

(d) Plans and specifications bearing the seal of a licensed engineer.

(e) Written evidence of required insurance and payment of premiums.

(f) Required opinions of counsel necessary for the issuance of the Bonds.

(g) A commitment for mortgagee title insurance in favor of the Corporation or its Trustee or designated servicer, with only standard exceptions and such other exceptions as are usually permitted in Mortgage Loans of this nature and that are acceptable to the Corporation. Such policy shall be in an amount not less than the MMRB Loan amount plus an amount sufficient to cover any debt service reserve required by the Corporation.

(h) A copy of the deed or form of deed conveying the land for the Development to the Applicant or a copy of the lease creating a long-term leasehold in favor of the Applicant acceptable to the Corporation and the Credit Underwriter.

(i) Evidence as to the status of liens, including mechanic’s liens, recorded against the property and the permission of the Corporation to allow any liens to remain recorded against the land or the Development.

(j) Such other documents as shall be reasonably required by the Corporation, by the MMRB Loan Commitment, or by the Corporation’s respective counsel to protect the interest of the Corporation in the financing.

(13) The Borrower shall not sell, transfer, or otherwise assign any of its interest in the Development without the prior written consent of the Corporation.

(14) The Corporation shall require all MMRB Loans to be secured to the extent necessary to protect the Corporation and Bond holders.

(15) Adequate insurance shall be maintained on the Development, as required by the MMRB Loan Agreement.

(16) Any MMRB Loan financed with proceeds of Tax-exempt Bonds, except for 501(c)(3) Bonds, shall provide that the portion of any debt service reserve fund associated therewith to be financed with the Tax-exempt Bonds shall not exceed six (6) months of debt service on the Bonds.

(17) Annually, within 151 Calendar Days following the Applicant’s fiscal year end, the Applicant shall provide the Corporation with an audited financial statement and an executed Financial Reporting Form SR-1, (Rev. 01-26), which is incorporated by reference and available on the Corporation’s website under the Property Owners & Managers link labeled Forms or from http://flrules.org/Gateway/reference.asp?No=Ref-19450. The audited financial statement and a copy of the signed Form SR-1, with Parts 1, 2 and 5 completed, shall be submitted in both PDF format and in electronic form as a Microsoft Excel spreadsheet to the Corporation at the following web address: financial.reporting@floridahousing.org. The initial submission will be due following the fiscal year within which the first unit is occupied. In the case where the Development contained occupied units at the time of acquisition, the initial submission will be due following the fiscal year within which the 12 month anniversary of the MMRB Loan closing is observed. The audited financial statement is to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

(a) Comparative Balance Sheet with prior year and current year balances;

(b) Statement of revenue and expenses;

(d) Statement of cash flows; and,

(e) Notes to the financial statements.

The financial statements referenced above should also be accompanied by a certification of the Applicant as to the accuracy of such financial statements. A late fee of $250 will be assessed by the Corporation for failure to submit the above documents by the stated deadline.

(18) The Corporation shall monitor compliance of all terms and conditions of the MMRB Loan and shall require that certain terms and conditions be embodied in the MMRB Land Use Restriction Agreement and recorded in the public records of the county wherein the Development is located. Violation of any material term or condition of the documents evidencing or securing the MMRB Loan shall constitute a default during the term of the MMRB Loan.

(19) All of the dwelling units within a Development shall be rented or available for rent on a continuous basis to members of the general public. The owner of the Development shall not give preference to any particular class or group in renting the dwelling units in the Development, except to the extent that dwelling units are required to be rented to Eligible Persons. All 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 Development is not otherwise subject to Section 504 and its related regulations, the Development shall nevertheless comply with Section 504 and its related regulations as requirements of the MMRB Program to the same extent as if the Development were subject to Section 504 and its related regulations in all respects. To that end, for purposes of the MMRB Program, an MMRB Loan shall be deemed “Federal financial assistance” within the meaning of that term as used in Section 504 and its related regulations for all Developments.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.507(4), (6), (9), (11), (21), 420.508 FS. History–New 12-3-86, Amended 12-4-90, 11-23-94, 9-25-96, 1-7-98, Formerly 9I-21.008, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, Amended 3-30-08, Repromulgated 8-6-09, Amended 11-7-11, 7-16-13, 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, Repromulgated 6-23-20, Amended 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.009 Interest Rate on Mortgage Loans

The Corporation shall establish the interest rate on Mortgage Loans at the time of sale of the Bonds in accordance with section 215.84, F.S. The interest rate shall in no event exceed the arbitrage limit which is legally allowed without jeopardizing the tax exempt status of the Bonds, if Bonds are issued as Tax-exempt Bonds.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented Chapter 75, 420.507, 420.508, 420.509 FS. History–New 12-3-86, Amended 1-7-98, Formerly 9I-21.009, Amended 1-26-99, 11-14-99, Repromulgated 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, Amended 7-10-25, Repromulgated 8-13-26.

Fla. Admin. Code R. 67-21.010 Issuance of Revenue Bonds

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. 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.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(6), 420.508, 420.509 FS. History–New 12-3-86, Amended 1-7-98, Formerly 9I-21.010, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, Amended 2-2-15, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.011 No Discrimination

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.507(14) FS. History–New 12-3-86, Amended 2-22-89, 12-4-90, 1-7-98, Formerly 9I-21.011, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-21.012 Advertisements

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(9), (14) FS. History–New 12-3-86, Amended 1-7-98, Formerly 9I-21.012, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-21.013 Non-Credit Enhanced Multifamily Mortgage Revenue Bonds

Unless otherwise set forth in a competitive solicitation, any issuance of non-Credit Enhanced revenue Bonds shall be sold only to a Qualified Institutional Buyer or a Freddie Mac Multifamily Targeted Affordable Housing Lender. The Corporation shall engage the Investment Banker with respect to such Bonds. The Corporation, in its discretion, will allow only one of either an underwriting discount or a placement agent fee, but not both. Unless such Bonds are rated in one of the four highest rating categories by a nationally recognized rating service and are the subject of a Credit Enhancement instrument, such Bonds shall comply with at least one of the following criteria:

(1) The Bonds shall be issued in minimum denominations of $100,000 (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 the underwriter and any purchaser purchasing the Bonds in an immediate resale from an underwriter), and all subsequent purchasers of the Bonds, or

(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 the underwriter and any purchaser purchasing the Bonds in an immediate resale from an underwriter), but an investment letter shall not be required of subsequent purchasers of the Bonds. Any investment letter shall state, among other things, that such purchaser is a Qualified Institutional Buyer or a Freddie Mac Multifamily Targeted Affordable Housing Lender, is purchasing such Bonds for its own account and not for immediate resale to a purchaser other than a Qualified Institutional Buyer or a Freddie Mac Multifamily Targeted Affordable Housing Lender, and has made an independent investment decision as a sophisticated or institutional investor.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(4), (5), (6), (9), (11), (14), (16), (18), (19), (20), (21), 420.509 FS. History–New 11-23-94, Amended 1-7-98, Formerly 9I-21.013, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, Amended 2-2-15, 9-15-16, 5-24-17, 7-8-18, Repromulgated 7-11-19, 6-23-20, Amended 5-18-21, 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.014 MMRB Credit Underwriting Procedures

Credit Underwriting is a de novo review of all information supplied, received or discovered during or after any application scoring process, prior to the closing on funding. The success of an Applicant in being selected for funding is not an indication that the Applicant will receive a positive recommendation from the Credit Underwriter or that the Development team’s experience, past performance or financial capacity is satisfactory.

(1) An invitation into Credit Underwriting shall require that the Applicant submit the Credit Underwriting and appraisal fee and information required to complete the Credit Underwriting, to the Credit Underwriter in accordance with the schedule established by the Corporation upon the recommendation of the Credit Underwriter. Failure to submit the Credit Underwriting and appraisal fee or meet the deadlines as set forth in the schedule shall result in the immediate termination of Credit Underwriting activities.

(2) The Credit Underwriter shall in Credit Underwriting analyze and review all information in the Application, or any proposed changes made subsequent thereto, in order to make a recommendation to the Board of Directors on the feasibility of the Development, without taking into account the willingness of a Credit Enhancer to provide Credit Enhancement. Credit Underwriting services shall include a comprehensive analysis of the Applicant, the real estate, the economics of the Development, the ability of the Applicant and the Development team to proceed, and the evidence of need for affordable housing in order to determine that the Development meets the MMRB Program requirements. The Credit Underwriter shall determine a recommended Bond amount that should be made to a Development, whether an initial loan or a refunding.

(a) If the Credit Underwriter determines that special expertise is required to review information submitted to the Credit Underwriter which is beyond the scope of normal underwriting procedures, the cost of such expertise shall be borne by the Applicant.

(b) The Credit Underwriter shall review the proposed financing structure to determine whether the MMRB Loan is feasible. The Credit Underwriter shall also request and review such other information as it deems appropriate to determine whether or not to provide a positive recommendation in connection with a proposed Development. In making that determination the Credit Underwriter will consider the prior and recent performance history of the Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor in connection with any other development. The performance history shall consider instances involving a foreclosure, deed in lieu of foreclosure, financial arrearage, or other event of material default in connection with any development or the documents governing financing or operation of any such development.

(c) Unless the Credit Underwriter determines that mitigating factors exist, or that underwriting conditions can be imposed, sufficient to mitigate or offset the risk, the existence of the following shall result in a negative recommendation of the proposed Development by the Credit Underwriter:

Considering all developments in which any party named above has been involved, if:

a. During the period prior to August 1, 2010, 5 percent or more of that party’s developments have been the subject of a foreclosure or deed in lieu of foreclosure, or in financial arrearage or other material default and such arrearage or material default remained uncured for a period of 60 days or more, or

b. During the period beginning on or after August 1, 2010, any of that party’s developments have been the subject of a foreclosure or deed in lieu of foreclosure, or in financial arrearage or other material default and such arrearage or material default is uncured at the present or, if cured, remained uncured for a period of 60 days or more.

Mitigating factors to be considered by the Credit Underwriter, to the extent such information is reasonably available and verifiable, shall include the extent to which the party funded the operations of the development from that party’s own funds in an attempt to keep the development afloat, the election by a party to forego financial participation in a development in an attempt to keep the development afloat, the party’s satisfactory performance history over the last ten (10) years in connection with that party’s developments, and any other extenuating circumstances deemed relevant by the Credit Underwriter in connection with the party’s involvement in a development.
A negative recommendation may also result from the review of:

a. An Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor in connection with any other development,

b. Financial capacity of an Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor, and for Housing Credits, the Housing Credit Syndicator, or

c. Any other relevant matters relating to an Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor if, in the Credit Underwriter’s opinion, one or more members of the Development team do not possess the ability to proceed.

(d) In addition to operating expenses, the Credit Underwriter must include an estimate for replacement reserves when calculating the final net operating income available to service the debt. A minimum amount of $300 per unit per annum must be deposited annually in the replacement reserve account for all Developments. In the case of rehabilitation, with or without acquisition, the greater of $300 per unit per annum or the amount identified in the plan and cost review ordered by the Credit Underwriter will be used.

The initial replacement reserve will have limitations on the ability to be drawn upon during the following time periods:

a. New construction or Redevelopment Developments shall not be allowed to draw during the first five (5) years or until the establishment of a minimum balance equal to the accumulation of five (5) years of replacement reserves per unit, or

b. Preservation or Rehabilitation Developments (with or without acquisition) shall not be allowed to draw until the start of the scheduled replacement activities as outlined in the pre-construction capital needs assessment (‘CNA’) report subject to the activities completed in the scope of rehabilitation, but not sooner than the 3rd year.

The amount established as a replacement reserve shall be adjusted based on a CNA, prepared by an independent third party, ordered by a first mortgage lender, third party Credit Enhancer or a Housing Credit Syndicator, received by the Corporation or its servicers, and acceptable to the Corporation and its servicers at the time the CNA, is required, beginning no later than the 10th year after the first residential building in the development receives a certificate of occupancy, a temporary certificate of occupancy, or is placed in service, whichever is earlier (‘Initial Replacement Reserve Date’). A subsequent CNA, meeting the parameters of this section, is required no later than the 15th year after the Initial Replacement Reserve Date and subsequently every five (5) years thereafter. If the Applicant does not provide a copy of a CNA to the Corporation or its servicers, prepared by an independent third party and acceptable to the Corporation and its servicers within the stated time frames, then one shall be ordered by the Corporation or its servicers at the Applicant’s expense. The only events allowed to drop the balance below the minimum are items related to life safety, structural and systems as approved by the Corporation and its servicers. In the event the first mortgage lender or a Housing Credit Syndicator requires replacement reserves with replacement reserve deposit requirements that include the same or higher deposits, the Corporation’s rights to hold replacement reserves and to disburse such funds shall be subject to the first mortgage lender or the Housing Credit Syndicator, as applicable. The replacement reserve funds are not to be used by the Applicant for normal maintenance and repairs but shall be used for structural building repairs, major building systems replacements and other items included on the Eligible Reserve for Replacement Items list, effective October 15, 2010, which 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-02850, and/or such items that can be capitalized and depreciated over multiple years. An Applicant may choose to fund a portion of the replacement reserves at closing from moneys other than the proceeds of the Bonds. Unless approved by the Corporation and the Credit Underwriter, this partial funding cannot exceed 50 percent of the required replacement reserves for two (2) years and must be placed in escrow with the Bond Trustee at closing. Applicants with Credit Enhancement may employ a different replacement reserve structure with the Corporation’s approval.

(e) At a minimum, each general partner (whether individual or entity) or each manager/managing member (whether individual or entity), as applicable, of the Applicant shall provide a guarantee for completion of construction. In addition, one or more entities or individuals (other than a general partner or manager/managing member) having an ownership interest, either directly or indirectly, in the Applicant or in the general partner or managing member of the Applicant shall be required to provide guarantees or personal guarantees, as applicable, for completion of construction as recommended by the Credit Underwriter or as otherwise required by the Corporation. The Corporation shall consider the following when determining the need for additional construction completion guarantees based on the recommendations of the Credit Underwriter:

Liquidity of any guarantee provider.
If applicable, Applicant’s, Developer’s and General Contractor’s history in successfully completing Developments.
If applicable, the past performance of the Applicant, Developer, General Contractor, or any other guarantee provider, in developing or constructing Developments financed by the Corporation or its predecessor.
Percentage of the Corporation’s funds utilized compared to Total Development Costs. If, after evaluation of subparagraphs 1. through 4. above, by the Corporation and the Credit Underwriter, it is determined that additional surety is needed, the Applicant will be required to provide a letter of credit or payment and performance bond.

(f) The Credit Underwriter shall review and make a recommendation to the Corporation whether the number of existing loans and construction commitments of the Applicant and its Principals will impede its ability to proceed with the successful development of each proposed Corporation Development.

(g) The Credit Underwriter shall consider the appraisal of the Development and other market study documentation to make a recommendation as to whether the market exists to support both the demographic and income restriction set-asides committed to within the Application. The Credit Underwriter shall consider the market study and other documentation to make a recommendation of whether to approve or disapprove an allocation when the proposed Development would financially impair an existing Development previously funded by the Corporation.

(h) For a Development utilizing Corporation-issued MMRB that has rehabilitation with or without acquisition, a CNA, prepared in accordance with generally accepted industry investment grade standards as reflected in the Non-Competitive Application, shall be ordered by the Credit Underwriter from a Corporation-approved CNA provider. Its findings shall be used to determine the amount of rehabilitation that will be carried out and to set replacement reserves.

(i) If the Credit Underwriter requires additional clarifying materials in the course of the underwriting process to complete the Credit Underwriting Report, the Credit Underwriter shall request the information from the Applicant. Such requested information shall be submitted within the timeframe established by the Credit Underwriter. Failure for any reason to submit required information on or before the specified deadline shall result in immediate termination of Credit Underwriting activities.

(j) At a minimum, the Credit Underwriter shall require the following information during Credit Underwriting:

For Credit Enhancers, audited financial statements for their most recent fiscal year ended, if published; otherwise the previous year’s audited statements will be provided until the current statements are published or Credit Underwriting is complete. The audited statements may be waived if the credit enhancer’s senior long term debt rating is at least “A3” by Moody’s, or “A-” by Standard and Poor’s or Fitch.
For guarantors, audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. If financial statements that are either audited, compiled or reviewed by a licensed Certified Public Accountant are not available, unaudited financial statements prepared within the last 90 days and reviewed by the Credit Underwriter and the two (2) most recent years tax returns. If any of the applicable entities are newly formed (less than 18 months in existence as of the date that Credit Underwriting information is requested), a copy of any and all tax returns with related supporting notes and schedules. The financial statements and information provided for review should be in satisfactory form and shall be reviewed in accordance with Part IIIA, Sections 401 through 408 and 410, of the Fannie Mae Multifamily Selling and Servicing Guide, in effect as of June 10, 2015, which 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-07357. A certification meeting the criteria of the Multifamily Underwriting Certificate outlined in Section 407 may be used in lieu of the Multifamily Underwriting Certificate.
For the General Contractor, audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. The audited or compiled statements may be waived if a payment and performance bond equal to 100 percent of the total construction cost is issued in the name of the General Contractor by a company rated at least “A-” by AMBest & Co.
For the Applicant and general partner, audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. If the entities are newly formed (less than 18 months in existence as of the date that Credit Underwriting information is requested), a copy of any and all tax returns with related supporting notes and schedules.

(k) The Credit Underwriter shall require an operating deficit guarantee. Upon written request of the guarantor(s) to the Corporation, the Credit Underwriter, or the servicers, the operating deficit guarantee will be released upon achievement of a 1.15x debt service coverage ratio for the MMRB Loan, as determined by the Corporation or its agent, and 90 percent occupancy, and 90 percent of the gross potential rental income, net of utility allowances, if applicable, all for a period equal to 12 consecutive months, all as certified by an independent Certified Public Accountant. The calculation of the debt service coverage ratio shall be made by the Corporation or its agent. The Credit Underwriter or servicer will determine whether all of the requirements described above have been met, including receipt, acceptance and verification of the documentation provided by the Certified Public Accountant, and will then submit a letter to the Corporation containing a positive or negative recommendation concerning the release of the operating deficit guarantee. If the Corporation’s decision is to deny the release of the operating deficit guarantee, the Board shall consider the facts and circumstances of the Applicant’s request and the Corporation’s denial, and make a determination of whether to grant the requested release. Notwithstanding the above, the operating deficit guarantee shall not be released prior to the earlier of the date which is three (3) years following the issuance of a final certificate of occupancy (or, in the event a final certificate of occupancy is not routinely provided by the applicable jurisdiction, such other information evidencing completion of the Development which is deemed acceptable to the Corporation), or the date on which the MMRB Loan is repaid.

(l) The Credit Underwriter shall also require environmental indemnity and recourse obligation guarantees.

(m) Required appraisals, market studies, pre-construction analyses, physical needs assessments, capital needs assessments and environmental studies (other than Phase I Environmental Site Assessments) shall be completed by professionals approved by the Credit Underwriter. Approval of appraisers and contractors to complete market and environmental studies shall be based upon review of qualifications, professional designations held, references and prior experience with similar types of Developments.

(n) An appraisal report conforming to the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal and reported in a comprehensive format, and a separate market study shall be ordered by the Credit Underwriter from an appraiser qualified for the geographic area and development type not later than when an Application enters Credit Underwriting. The Credit Underwriter shall review the appraisals to properly evaluate the MMRB Loan request in relation to the property value.

(o) Appraisals and separate market studies which have been ordered and submitted by third party Credit Enhancers or syndicators and which meet the above requirements and are acceptable to the Credit Underwriter may be used instead of the appraisal or market study referenced above.

(p) The Credit Underwriting Report shall include a thorough analysis of the proposed Development and a statement as to whether a MMRB Loan is recommended, and if so, the amount recommended. The Credit Underwriter or the Corporation may request such additional information as is necessary to properly analyze the credit risk being presented to the Corporation and the Bond holders. For the Credit Underwriter to make a favorable recommendation, the submarket of the proposed Development must have:

An average physical occupancy rate of 92 percent or greater; and,
For Developments with new construction units, an average market rental rate, based on unit mix and annualized rent concessions, of 110 percent or greater of a 60 percent of Area Median Income rental rate.

(q) Developer Fee shall be limited as set forth below:

For Developments with a Development category of new construction, Developer Fee shall be limited to 18 percent of Development Cost excluding land and operating deficit reserves.
For Developments with a Development category of Rehabilitation or Preservation, Developer Fee shall be limited to:

a. 36 percent of total actual construction costs (hard costs);

b. 18 percent of total general development costs, including financial costs (soft costs);

c. 9 percent of acquisition costs (excluding land and any cash reserves/deposits associated with the acquisition of a Development); and

d. In no event shall the total Developer Fee equal more than 18 percent of total Development Costs, excluding land and operating deficit reserves.

e. For Developments not located within a DDA or QCT, the limitation set forth in sub-sub-paragraph c. above may be exceeded upon written request of the Applicant, the Credit Underwriter’s favorable recommendation upon analysis of the financial feasibility of the Development and the scope of rehabilitation, and approval of the Corporation. In no instance will the total Developer Fee earned on the Development exceed the amount set forth in sub-sub-paragraph d. above.

For all Developments, consulting fees, if any, and any financial or other guarantees required for the financing must be paid out of the Developer Fee. Consulting fees include payments for Application consultants, construction management or supervision, Local Government consultants and property acquisition brokerage fees when in excess of the appropriate limit. The maximum brokerage fees shall be limited to the lesser of $300,000 or a percent of the acquisition price, which shall be set at 4 percent when the acquisition price is $5 million or less, 3 percent when the acquisition price is $10 million or less, and 2 percent when the acquisition price is in excess of $10 million. Brokerage fees paid to an Affiliate of the Applicant or Developer or to employees on the Developer’s payroll will be considered part of the Developer Fee. Fees of the Applicant’s or Developer’s attorney(s) awarded in conjunction with litigation against the Corporation with respect to a Development shall also not be included in Total Development Costs. Fees for services provided by architects, accountants, appraisers, engineers or financial advisors engaged by the Applicant as outlined in subsection 67-21.0045(5), F.A.C., may be included as part of the Total Development Costs, except that those fees for a financial advisor engaged by the Applicant that are in excess of $18,000 must be paid out of the Developer Fee. In the event of extraordinary circumstances, Applicant may petition the Board for relief from the cap on financial advisor fees engaged by the Applicant. The Corporation shall not authorize fees to be paid for duplicative services or duplicative overhead.

(r) General Contractor’s fees are inclusive of general requirements, profit and overhead and shall be limited to 14 percent of actual construction costs. For the purpose of the HUD Risk Sharing Program, if there exists an Identity of Interest as defined herein between the Applicant or Developer and the General Contractor, the allowable fees shall in no case exceed the amount allowable pursuant to the HUD subsidy layering review requirements. Additionally, fees shall be allowed to be paid only to the person or entity that actually meets the definitional requirements to be considered a General Contractor. The Corporation shall not allow fees for duplicative services or duplicative overhead. The General Contractor must meet the following conditions:

Employ a Development superintendent and charge the costs of such employment to the general requirements line item of the General Contractor’s budget inclusive of the general requirement items related to construction costs identified in The Final Cost Certification Application Package,
Charge the costs of the Development construction trailer, if needed, and other overhead to the general requirements line item of the General Contractor’s budget,
Secure building permits, issued in the name of the General Contractor,
If deemed necessary by the Corporation and the Credit Underwriter in their evaluation of construction completion guarantees in paragraph (2)(e), above, secure a payment and performance bond whose terms do not adversely affect the Corporation’s interest, issued in the name of the General Contractor, from a company rated at least “A-” by AMBest & Co., or a Corporation-approved alternate security for the General Contractor’s performance such as a letter of credit issued by a financial institution with a senior long term (or equivalent) credit rating of at least “Baa3” by Moody’s, or at least “BBB-” by Standard & Poor’s or Fitch, or a financial rating of at least 175 by IDC Financial Publishing,
Ensure that none of the General Contractor duties to manage and control the construction of the Development are subcontracted,
Ensure that no construction or inspection work is performed by the General Contractor, with the following exceptions:

a. The General Contractor may perform its duties to manage and control the construction of the Development; and

b. The General Contractor may self-perform work of a de minimis amount, defined for purposes of this sub-subparagraph as the lesser of $350,000 or 5 percent of the construction costs, not to include the General Contractor fee or pass-through fees paid by the General Contractor,

For Developments with a Development category of new construction, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor):

a. Contracted to deliver the building shell of a building of less than five (5) stories which may not have more than 25 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development; or

b. 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 Corporation for a specific Development; or

c. Contracted to deliver the building shell of a Development located in the Florida Keys Area, which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development. With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fee. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of subparagraph 7., “Affiliate” has the meaning given in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”; and,

For Developments with a Development category of Rehabilitation or Substantial Rehabilitation, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor) contracted to perform work on both the HVAC and electrical components of a building of at least seven (7) stories which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development. With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of this paragraph, “Affiliate” has the meaning given in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”; and,
Ensure that no construction cost is subcontracted to any entity that has common ownership or is an Affiliate of the General Contractor, Developer, or Applicant. For purposes of this paragraph, “Affiliate” has the meaning given it in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “General Contractor.”

(3) The Applicant shall review and provide written comments on the draft Credit Underwriting Report to the Corporation and the Credit Underwriter within 48 hours of receipt. After the 48 hour period, the Corporation shall provide comments on the draft report and, as applicable, on the Applicant’s comments to the Credit Underwriter. The Credit Underwriter shall then review and incorporate the Corporation’s and, if deemed appropriate, the Applicant’s comments and release the revised report to the Corporation and the Applicant. Any additional comments from the Applicant shall be received by the Corporation and the Credit Underwriter within 72 hours of receipt of the revised report. Then, the Credit Underwriter shall provide a final report, which shall address comments made by the Applicant to the Corporation.

(4) After approval by the Board of Directors following presentation of the Credit Underwriting Report and payment of the good faith deposit, Corporation staff and Special Counsel shall begin negotiations of the MMRB Loan Commitment with the Applicant.

(5) At a minimum, a 10 percent retainage will be held by the Trustee or the servicer administering the construction loan funds until the Development is 50 percent complete. At 50 percent completion, no additional retainage will be held from the remaining draws. The total retainage dollars will be held by the Trustee or the servicer and released pursuant to the terms of the construction loan agreement.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507, 420.508, 420.508(3)(b)3., 420.509 FS. History–New 1-7-98, Formerly 9I-21.014, Amended 1-26-99, 11-14-99, 1-26-00, 2-11-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, 7-16-13, 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 8-27-24, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.015 Use of Bonds with Other Affordable Housing Finance Programs

(1) Applicants may submit one Application for the MMRB Program and Non-Competitive Housing Credits, subject to the restrictions set forth in the Non-Competitive Application Package.

(2) Applicants that receive funding from other programs and the Multifamily Mortgage Revenue Bond Program shall comply with the requirements of the applicable program rule, a competitive solicitation, and this rule.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507, 420.508, 420.509 FS. History–New 1-7-98, Formerly 9I-21.015, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, Amended 7-16-13, 2-2-15, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, Repromulgated 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.016 Compliance Procedures

History

Rulemaking Authority 420.507(12), 420.508(3)(a) FS. Law Implemented 420.507(4), (13), (14), 420.508, 420.509 FS. History–New 1-7-98, Formerly 9I-21.016, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, 3-21-04, Transferred to 67-53.003.

Fla. Admin. Code R. 67-21.017 Transfer of Ownership of a MMRB Development

(1) Any transfer of ownership of any Development in which the MMRB Loan is outstanding and/or within the Qualified Project Period shall be subject to compliance with the provisions of this section, provided that transfers of the limited partnership interest or limited liability company interest in the owner to a Housing Credit Syndicator, or the transfer of ownership to a creditor by means of foreclosure or deed in lieu of foreclosure, need not comply with this provision. The determination of whether a transfer of ownership of a Development shall be deemed to take place for purposes of this rule shall be made in accordance with the provisions of the MMRB Land Use Restriction Agreement and other Program Documents for such Development. Owners shall advise the Corporation in writing of any change of ownership of the owner aggregating 50 percent or more of ownership interests in the owner within any six-month period.

(2) A request for transfer of ownership shall be submitted to the Corporation in writing and include evidence that the current owner has agreed to the proposed sale. A detailed opinion letter from the legal counsel for the current owner or prospective purchaser describing the scope of the proposed transaction must also be provided. The Corporation shall review the letter and, if acceptable, assign a Credit Underwriter. The Credit Underwriter will notify the current owner and prospective purchaser of any additional information necessary to complete its Credit Underwriting Report.

(3) Upon demonstration of compliance with the provisions of this section, and favorable consideration by the Board of Directors of the Credit Underwriting Report, the Corporation shall assign a Bond Counsel, Special Counsel, and other professionals as needed to effect the transfer.

(4) Prior to the transfer of ownership:

(a) The Credit Underwriter shall conduct a Credit Underwriting of the prospective purchaser upon any transfer of ownership. Additionally, the prospective purchaser shall be notified that any refunding of Bonds associated with such Development shall require a full Credit Underwriting of the Development. The prospective purchaser and the conditions of the assumption of the Program Documents must be approved by the Credit Underwriter as meeting the terms of its Credit Underwriting Report, Bond Counsel and Special Counsel as complying with all applicable legal requirements, and the Corporation as meeting the stated purposes of the Corporation;

(b) All outstanding fees owing to the Corporation or any of its assigned professionals shall be paid;

(c) In addition to any related professional fees, the Corporation shall charge a non-refundable transfer fee of $2,500. The applicable fee will be determined by the rule in effect at the time of the transfer request.

(d) All requests which only require subordination of the regulatory agreements must be submitted in writing to the Multifamily Bonds/Loans Director and contain the specific details of the subordination. In addition to any related professional fees, the Corporation shall charge a non-refundable subordination fee of $1,000 for each regulatory agreement to be subordinated. The applicable fee will be determined by the rule in effect at the time of the subordination request.

(e) The Development shall be in compliance with all existing regulatory requirements imposed by the Corporation or its predecessor; and,

(f) If the set-aside requirements in the MMRB Land Use Restriction Agreement are expired or have less than 12 months remaining, such agreement shall be extended for a minimum of two years from the date of closing. All transfer of ownership transactions shall be subject to all conditions of the Credit Underwriting Report including the requirements for a guarantee of recourse obligations and an environmental indemnity from the assuming owner.

(5) The prospective purchaser or current owner shall be responsible for payment of all fees for professional services rendered in association with the transfer of ownership.

All transfer requests in which the MMRB Loan is not outstanding and/or not within the Qualified Project Period, need not comply with the above provisions but must be submitted in writing to the Multifamily Loans/Bonds Director, contain the specific details of the transfer, and be subject to the fees set forth in paragraph (4)(c), above.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507, 420.508, 420.508(3)(a), 420.509 FS. History–New 1-7-98, Formerly 9I-21.017, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, Amended 7-16-13, Repromulgated 2-2-15, 9-15-16, 5-24-17, 7-8-18, Amended 7-11-19, 6-23-20, Repromulgated 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.018 Refundings and Troubled Development Review

(1) Refunding of previously issued Bonds shall in all instances be at the option of the Corporation and not an obligation of the Corporation.

(2) The Corporation shall endeavor where feasible to refund Bonds which are either in default or face a pending default.

(3) Approval by the Corporation for a refunding of an issue of Bonds for reasons related to pending default shall be subject to the following:

(a) Determination of the likelihood of the impending default;

(b) Submission of a sworn certificate of impending default by the owner or Credit Enhancer;

(c) Submission of sworn certificate from the owner or Credit Enhancer that conditions causing default are likely to continue;

(d) Submission of certified information from a certified public accountant concerning cash contributions to the Development, financial condition of the Development, including analysis of tax benefits derived from Development losses, and the financial condition of the owner or Credit Enhancer;

(e) Independent evidence of market conditions in the Development location;

(f) Evidence of effort by the owner or Credit Enhancer to procure other sources of capital infusion;

(g) Statement by the owner or Credit Enhancer of the continued public purpose to be achieved by refunding;

(h) Agreement by the owner or Credit Enhancer to update the MMRB Land Use Restriction Agreement, including retention of state and federal income limits;

(i) New Credit Underwriting by the Corporation, with new Bond amount determined by the Corporation based upon real estate underwriting criteria and equal to the lesser of the amount determined by the Corporation or the Credit Enhancer, to provide assurance that a similar default condition will not present itself in the future;

(j) The full risk of refunding is taken by the Credit Enhancer through full indemnification of the Corporation; with consideration given to personal indemnification from the owner if sufficient financial strength can be demonstrated;

(k) All costs of refunding are paid by the owner or the Credit Enhancer outside of Bond proceeds, including all applicable fees;

(l) Retention of annual fees by the Corporation;

(m) Provision of other evidence of the immediacy of default;

(n) Retention of the Credit Enhancement, or an acceptable non-Credit Enhancement structure; and,

(o) Management of the Development is reviewed and approved by the Corporation.

(4) In connection with all refundings, the following shall apply:

(a) All outstanding fees of the Corporation and any of its assigned professionals shall be paid in connection with the refunding;

(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 prejudical to the Development or to the market to be served by the Development;

(c) A Credit Underwriting Report shall be required, which may incorporate any Credit Underwriting undertaken within the past twelve months in connection with a transfer of ownership of the same Development;

(d) A guarantee of recourse obligations and an environmental indemnity shall be required;

(e) Additional operating deficit or other guarantees and establishment of replacement reserves or increase in existing reserves may be required as specified in the Credit Underwriting Report;

(f) The MMRB Loan shall, on the earlier of 24 months after closing or stabilized occupancy in the case of major rehabilitation, begin full amortization over the remaining life of the Bonds; and in no event shall it exceed the economic remaining life of the property, provided that, in the case of a refunding relating to a pending financial default, such amortization may be delayed to the extent recommended in the Credit Underwriting Report;

(g) Any material changes to the underlying documents shall be deemed to constitute a refunding for purposes hereof;

(h) Any extension or extensions of maturity cumulatively exceeding 60 months shall be deemed to constitute a refunding for purposes hereof; and,

(i) The owner of the Development must provide a written request for the refunding and a detailed opinion from Applicant’s counsel describing the scope of the transaction. It shall not be necessary to complete an Application in connection with a refunding request.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507, 420.508, 420.509 FS. History–New 1-7-98, Formerly 9I-21.018, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-7-11, Amended 7-16-13, Repromulgated 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.019 Issuance of Bonds for Section 501(c)(3) Entities

(1) The Corporation shall entertain requests, on a non-competitive basis, for it to serve as the issuer of Tax-exempt 501(c)(3) Bonds for the acquisition or construction of multifamily housing to be owned by a not-for-profit entity organized under section 501(c)(3) of the Internal Revenue Code.

(2) In connection with all Bonds issued pursuant to this section, Applicants shall be required to comply with the applicable provisions of Rules 67-21.0045 through 67-21.018, F.A.C.; Florida Statutes; and the Internal Revenue Code, including all safe harbor provisions.

(3) In addition, Applicant shall submit the following:

(a) An initial Bond Counsel fee of $1,000 along with IRS Form 1023, and all attachments and correspondence to and from the IRS relative to section 501(c)(3) status of the Applicant; and,

(b) An opinion from Applicant’s counsel at Applicant’s sole expense evidencing the Applicant’s qualifications as a section 501(c)(3) entity and Applicant’s authority to incur bond debt for multifamily housing; and,

(c) If a Development to be acquired is intended to be exempt from ad valorem taxes, evidence that it has notified all local ad valorem taxing authorities of the acquisition of the proposed Development by a section 501(c)(3) entity.

(d) The completed Non-Competitive Application in effect at the time the Applicant submits the Application. Applicants must meet all threshold requirements of the Application.

PART III HOUSING CREDIT PROGRAM

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.502, 420.507(14), (24), 420.508, 420.509 FS. History–New 11-14-99, Amended 2-11-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, 2-7-05, 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, 8-6-09, Amended 11-7-11, 7-16-13, 2-2-15, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.025 HC Fees

The Corporation and the Credit Underwriter shall collect via check or money order the following non-refundable fees and charges in conjunction with the HC Program, as outlined in the Non-Competitive Application instructions, a competitive solicitation, the invitation to enter Credit Underwriting, the Preliminary Determination, or this rule chapter, as applicable:

(1) Application fee.

(2) Credit Underwriting fees.

(3) Administrative fees.

(4) Compliance monitoring fees.

(5) Construction inspection fees.

(6) Qualified Contract Package fees.

(7) Processing fees.

Failure to pay any fee associated with a Housing Credit Allocation shall cause the Housing Credit Allocation to be rescinded. Where a Development has been awarded funding under the MMRB Program and a Housing Credit Allocation, failure to pay any fee associated with either the MMRB or Housing Credits, or both, shall result in the termination or default, as applicable, of the MMRB and rescission of the Housing Credit Allocation.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.026 HC Credit Underwriting Procedures

Credit Underwriting is a de novo review of all information supplied, received or discovered during or after any application scoring process, prior to the closing on funding, including the issuance of IRS Forms 8609 for Housing Credits. The success of an Applicant in being selected for funding is not an indication that the Applicant will receive a positive recommendation from the Credit Underwriter or that the Development team’s experience, past performance or financial capacity is satisfactory. The Credit Underwriting review shall include a comprehensive analysis of the Applicant, the real estate, the economics of the Development, the ability of the Applicant and the Development team to proceed, the evidence of need for affordable housing in order to determine that the Development meets the program requirements and determine a recommended Housing Credit Allocation amount, if any; and for any Development that has rehabilitation with or without acquisition, a capital needs assessment (‘CNA’) prepared in accordance with generally accepted industry investment grade standards shall be ordered by the Credit Underwriter, and its findings shall be used to determine rehabilitation that will be carried out and to set replacement reserves as outlined in paragraph (11)(b), below. Corporation funding will be based on appraisals of comparable developments, cost benefit analysis, and other documents evidencing justification of costs. As part of the Credit Underwriting review, the Credit Underwriter will consider the applicable provisions of this rule chapter.

(1) Within 10 business days after the Non-Competitive Application is deemed complete, the Corporation shall offer Applicants that pass threshold an invitation to enter Credit Underwriting. If the Non-Competitive Housing Credits are awarded as a result of a competitive solicitation, the invitation to enter Credit Underwriting for the Non-Competitive Housing Credits will be in conjunction with the invitation for the other Corporation funding. The Corporation shall select the Credit Underwriter for each Development.

(2) A response to the invitation to enter Credit Underwriting must be received by the Corporation and the Credit Underwriter not later than seven (7) Calendar Days after the date of the invitation. Failure to accept the invitation to enter Credit Underwriting within this time frame shall result in withdrawal of the invitation.

(3) If the invitation to enter Credit Underwriting is accepted, all Applicants shall submit the Credit Underwriting fee to the Credit Underwriter within seven (7) Calendar Days of the date of the invitation to enter Credit Underwriting. The Credit Underwriting fee shall be determined pursuant to a contract between the Corporation and the Credit Underwriter.

(4) The Credit Underwriter shall review all information in the Application, including information relative to the Applicant, Developer, Housing Credit Syndicator, General Contractor, and, if an assisted living facility, the service provider(s), as well as other members of the Development team based on information provided to the Credit Underwriter. The Credit Underwriter shall also request and review such other information as it deems appropriate to determine whether or not to provide a positive recommendation in connection with a proposed Development.

(5) In determining whether or not to provide a positive recommendation in connection with a proposed Development, the Credit Underwriter will consider the prior and recent performance history of the Applicant, Developer, and any Financial Beneficiary of the Applicant or Developer in connection with any other development or for Applicants afforded relief under paragraph 67-21.0025(7)(f), in connection with all or a portion of its portfolio as determined by the Credit Underwriter. The performance history shall consider instances involving a foreclosure, deed in lieu of foreclosure, financial arrearage, or other event of material default in connection with any development or the documents governing financing or operation of any such development.

(a) Unless the Credit Underwriter determines that mitigating factors exist, or that underwriting conditions can be imposed, sufficient to mitigate or offset the risk, the existence of the following shall result in a negative recommendation of the proposed Development by the Credit Underwriter:

Considering all developments in which any party named above has been involved, if:

Mitigating factors to be considered by the Credit Underwriter, to the extent such information is reasonably available and verifiable, shall include the extent to which the party funded the operations of the development from that party’s own funds in an attempt to keep the development afloat, the election by a party to forego financial participation in a development in an attempt to keep the development afloat, the party’s satisfactory performance history over the last 10 years in connection with that party’s developments, and any other extenuating circumstances deemed relevant by the Credit Underwriter in connection with the party’s involvement in a development.

(b) A negative recommendation may also result from the review of:

An Applicant, Developer, and any Financial Beneficiary of the Applicant or Developer in connection with any other development,
Financial capacity of an Applicant, Developer, and any Financial Beneficiary of the Applicant or Developer, or
Any other relevant matters relating to an Applicant, Developer, and any Financial Beneficiary of the Applicant or Developer if, in the Credit Underwriter’s opinion, one or more members of the Development team do not possess the ability to proceed.

(6) The Credit Underwriter shall report any inconsistencies or discrepancies or changes made to the Applicant’s Application during Credit Underwriting.

(7) The Applicant will be responsible for all fees in connection with the documentation submitted to the Credit Underwriter.

(8) If the Credit Underwriter determines that special expertise is required to review information submitted to the Credit Underwriter which is beyond the scope of the Credit Underwriter’s expertise, the fee for such services shall be borne by the Applicant.

(9) An appraisal report conforming to the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal and reported in a comprehensive format, and a separate market study shall be ordered by the Credit Underwriter, at the Applicant’s expense, from an appraiser qualified for the geographic area and product type not later than completion of Credit Underwriting. The Credit Underwriter shall review the appraisal to properly evaluate the proposed Development’s financial feasibility. If the Tax-Exempt Bonds are issued by the Corporation or by a County Housing Finance Authority, appraisals which have been ordered and submitted by third party credit enhancers, first mortgagors or Housing Credit Syndicators and which meet the above requirements and are acceptable to the Credit Underwriter may be used instead of the appraisal referenced above. If the Tax-Exempt Bonds are issued by an entity other than the Corporation or a County Housing Finance Authority, the appraisal must be ordered by the Credit Underwriter. The market study must be completed by a disinterested party who is approved by the Credit Underwriter. The Credit Underwriter shall consider the market study, the Development’s financial impact on Developments in the area previously funded by the Corporation, and other documentation when making its recommendation of whether to approve or disapprove a Housing Credit Allocation. The Credit Underwriter shall also review the appraisal and other market documentation to determine if the market exists to support both the demographic and income restriction set-asides committed to within the Application. For the Credit Underwriter to make a favorable recommendation, the submarket of the proposed Development must have:

(a) An average physical occupancy rate of 92 percent or greater; and,

(b) For Developments with new construction units, an average market rental rate, based on unit mix and annualized rent concessions, of 110 percent or greater of a 60 percent of Area Median Income rental rate.

(10) The Corporation’s assigned Credit Underwriter shall require a guaranteed maximum price construction contract, acceptable to the Corporation, which may include change orders for changes in cost or changes in the scope of work, or both, if all parties agree, and shall order, at the Applicant’s sole expense, and review a pre-construction analysis for all new construction units or a CNA for rehabilitation units and review the Development’s costs.

(11) In addition to operating expenses, the Credit Underwriter must include an estimate for replacement reserves and operating expense reserves deemed appropriate by the Credit Underwriter when calculating the final net operating income available to service the debt. A minimum amount of $300 per unit per annum must be used for all Developments. In the case of rehabilitation, with or without acquisition, the greater of $300 per unit per annum or the amount identified in the plan and cost review ordered by the Credit Underwriter will be used.

(a) The initial replacement reserve will have limitations on the ability to be drawn upon during the following time periods:

New construction or Redevelopment Developments shall not be allowed to draw during the first five (5) years or until the establishment of a minimum balance equal to the accumulation of five (5) years of replacement reserves per unit, or
Preservation or Rehabilitation Developments (with or without acquisition) shall not be allowed to draw until the start of the scheduled replacement activities as outlined in the pre-construction CNA report subject to the activities completed in the scope of rehabilitation, but not sooner than the 3rd year.

(b) The amount established as a replacement reserve shall be adjusted based on a CNA prepared by an independent third party, ordered by a first mortgage lender, third party credit enhancer or a Housing Credit Syndicator, received by the Corporation or its servicers, and acceptable to the Corporation and its servicers at the time the CNA is required, beginning no later than the 10th year after the first residential building in the development receives a certificate of occupancy, a temporary certificate of occupancy, or is placed in service, whichever is earlier (‘Initial Replacement Reserve Date’). A subsequent CNA, meeting the parameters of this section, is required no later than the 15th year after the Initial Replacement Reserve Date and subsequently every five (5) years thereafter. If the Applicant does not provide a copy of a CNA to the Corporation or its servicers, prepared by an independent third party and acceptable to the Corporation and its servicers within the stated time frames, then one shall be ordered by the Corporation or its servicers at the Applicant’s expense. The only events allowed to drop the balance below the minimum are items related to life safety, structural and systems as approved by the Corporation and its servicers. In the event the first mortgage lender or a Housing Credit Syndicator requires replacement reserves with replacement reserve deposit requirements that include the same or higher deposits, the Corporation’s rights to hold replacement reserves and to disburse such funds shall be subject to the first mortgage lender or the Housing Credit Syndicator, as applicable. The replacement reserve funds are not to be used by the Applicant for normal maintenance and repairs, but shall be used for structural building repairs, major building systems replacements and other items included on the Eligible Reserve for Replacement Items list, effective October 15, 2010, which 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-02851, and/or such items that can be capitalized and depreciated over multiple years. An Applicant may choose to fund a portion of the replacement reserves at closing. Unless approved by the Corporation and the Credit Underwriter, the amount cannot exceed 50 percent of the required replacement reserves for two (2) years and must be placed in escrow at closing.

(12) The Developer Fee and General Contractor fee shall be limited as set forth below:

(a) Developer Fee shall be limited as follows:

For Developments with a Development category of new construction, Developer Fee shall be limited to 18 percent of Development Cost, excluding land and operating deficit reserves.
For Developments with a Development category of Rehabilitation or Preservation, Developer Fee shall be limited to:

a. 36 percent of total actual construction costs (hard costs);

b. 18 percent of total general development costs, including financial costs (soft costs);

c. 9 percent of acquisition costs (excluding land and any cash reserves/deposits associated with the acquisition of a Development); and

d. In no event shall the total Developer Fee equal more than 18 percent of total Development Costs, excluding land and operating deficit reserves.

For all Developments, consulting fees, if any, and any financial or other guarantees required for the financing must be paid out of the Developer Fee. Consulting fees include payments for Application consultants, construction management or supervision, Local Government consultants and property acquisition brokerage fees when in excess of the appropriate limit. The maximum brokerage fees shall be limited to the lesser of $300,000 or a percent of the acquisition price, which shall be set at 4 percent when the acquisition price is $5 million or less, 3 percent when the acquisition price is $10 million or less, and 2 percent when the acquisition price is in excess of $10 million. Brokerage fees paid to an Affiliate of the Applicant or Developer or to employees on the Developer’s payroll will be considered part of the Developer Fee; and,

(b) The General Contractor’s fee shall be limited to a maximum of 14 percent of the actual construction costs. For the purpose of any necessity to prepare a HUD subsidy layering review, if there exists an Identity of Interest as defined herein between the Applicant or Developer and the General Contractor, the allowable fees shall in no case exceed the amount allowable pursuant to the HUD subsidy layering review requirements.

(13) The General Contractor must meet the following conditions:

(a) Employ a Development superintendent and charge the costs of such employment to the general requirements line item of the General Contractor’s budget;

(b) Charge the costs of the Development construction trailer, if needed, and other overhead to the general requirements line item of the General Contractor’s budget inclusive of the general requirement items related to construction costs identified in The Final Cost Certification Application Package as set forth in subsection 67-21.027(6), F.A.C.;

(d) Ensure that none of the General Contractor duties to manage and control the construction of the Development are subcontracted;

(e) Ensure that no construction or inspection work is performed by the General Contractor, with the following exceptions:

The General Contractor may perform its duties to manage and control the construction of the Development; and
The General Contractor may self-perform work of a de minimis amount, defined for purposes of this subparagraph as the lesser of $350,000 or 5 percent of the construction costs, not to include the General Contractor fee or pass-through fees paid by the General Contractor;

(f) For Developments with a Development category of new construction, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor):

Contracted to deliver the building shell of a building of less than five (5) stories which may not have more than 25 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development; or
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 Corporation for a specific Development; or
Contracted to deliver the building shell of a Development located in the Florida Keys Area may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development.

With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of paragraph (f), “Affiliate” has the meaning given in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”;

(g) For Developments with a Development category of Rehabilitation or Substantial Rehabilitation, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor) contracted to perform work on both the HVAC and electrical components of a building of at least seven (7) stories which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development. With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of this paragraph, “Affiliate” has the meaning given in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”; and,

(h) Ensure that no construction cost is subcontracted to any entity that has common ownership or is an Affiliate of with the General Contractor, Developer, or Applicant. For purposes of this paragraph, “Affiliate” has the meaning given it in subsection 67-21.002(5), F.A.C., except that the term “Applicant” therein shall mean “General Contractor.”

(14) Contingency reserves which total no more than 5 percent of total actual construction costs (hard costs) and total general development costs (soft costs) for Redevelopment and Developments where 50 percent or more of the units are new construction may be included within the Total Development Cost for Application and underwriting purposes, unless otherwise recommended by the Credit Underwriter. Contingency reserves which total no more than 15 percent of total actual construction costs (hard costs) and no more than 5 percent of total general development costs (soft costs) for Rehabilitation and Preservation may be included within the Total Development Cost for Application and underwriting purposes, unless otherwise recommended by the Credit Underwriter; however, in the event financing is obtained through a federal government rehabilitation program, a contingency reserve up to 20 percent may be utilized if required by the program.

(15) The Credit Underwriter will review and determine if the number of loans and construction commitments of the Applicant and its Principals will impede its ability to proceed with the successful development of each proposed Corporation-funded Development.

(16) If the Credit Underwriter requires additional clarifying materials in the course of the underwriting process, the Credit Underwriter shall request same from the Applicant and shall specify deadlines for the submission of same.

(17) The Credit Underwriter shall complete its analysis and submit a written draft report and recommendation to the Corporation. Upon receipt, the Corporation shall provide to the Applicant the section of the written draft report consisting of supporting information and schedules. The Applicant shall review and provide written comments to the Corporation and Credit Underwriter within 48 hours of receipt. After the 48 hour period, the Corporation shall provide to the Credit Underwriter comments on the draft report and, as applicable, on the Applicant’s comments. Then, the Credit Underwriter shall review and incorporate, if deemed appropriate, the Corporation’s and Applicant’s comments and release the revised report to the Corporation and the Applicant. Any additional comments from the Applicant shall be received by the Corporation and the Credit Underwriter within 72 hours of receipt of the revised report. Then, the Credit Underwriter will provide a final report, which will address comments made by the Applicant, to the Corporation.

(18) For Housing Credit Applications, the Credit Underwriter shall use the following procedures during the credit underwriting evaluation:

(a) The Credit Underwriter, in determining the amount of Housing Credits a Development is eligible for when using the qualified basis calculation, shall use a Housing Credit percentage of 15 basis points over the percentage as of the date of invitation to enter Credit Underwriting when the actual percentage exceeds the minimum of 4 percent for Developments receiving Tax-exempt Bonds, unless the Applicant has previously locked in the percentage at a different rate, in which case the Credit Underwriter shall use the locked-in Housing Credit percentage.

(b) Costs such as syndication fees cannot be included in eligible basis. All consulting fees and any financial or other guarantees required for the financing must be paid out of the Developer Fee. Consulting fees cannot cause the Developer Fee to exceed the maximum allowable fee as set forth in subsection (12), above.

(d) The allocation amount for acquisition Housing Credits shall be limited to the lesser of the sale price or the appraised value of the building(s).

(e) For a Non-Competitive Housing Credit Allocation, the recommendation will be the lesser of the qualified basis calculation result or the gap calculation result.

(f) As part of the process the Corporation uses to determine financial feasibility as set forth in Section 42(m)(2) of the IRC, the Corporation will base all calculations of the minimum net Housing Credit equity contribution available to the Development on the assumption that a minimum of 99.99 percent of the Housing Credit Allocation is being sold in exchange for Housing Credit equity contribution at the greater of the syndication rate or market rate pricing, as depicted by the price per dollar of Housing Credit Allocation available to the Development, as determined by using sales of comparable Housing Credit Allocations and the Corporation’s evaluation of market trends. In determining the financial feasibility set forth above, the Corporation will utilize the calculated Housing Credit equity contribution based on the criteria provided above.

(g) Any Housing Credit Allocation that is not necessary for the financial feasibility of the Development and its viability as a qualified Housing Credit Development throughout the Housing Credit Period, as determined by the Corporation, will be withheld from being allocated to the Applicant.

(h) As part of the Final Cost Certification Application Package set forth in subsection 67-21.027(6), F.A.C., the Applicant shall have documentation provided to the Corporation by the Housing Credit Syndicator (for Housing Credits that are syndicated) or by the Applicant (for any Housing Credits that are not syndicated) that details, for each source of Housing Credit equity, the following information:

The net dollar amount of funding provided to the Housing Credit Syndicator or the Applicant, as applicable, that will be passed along to the Applicant as Housing Credit equity for the benefit of paying Total Development Costs; and,
The annual dollar amount of Housing Credit allocation sold to each investor in exchange for the funding provided.

(19) If the Credit Underwriter recommends that Housing Credits be allocated to the Development, the Corporation shall determine the credit amount, if any, necessary to make the Development financially feasible and viable throughout the Housing Credit Extended Use Period and shall issue a Preliminary Determination of Housing Credits in the case of Tax-Exempt Bond-Financed Developments. If the Credit Underwriter recommends that no credits be allocated to the Development and the Executive Director accepts the recommendation, the Applicant shall be notified that no Housing Credits will be allocated to the Development. All contingencies required in the Preliminary Determination shall be met or satisfied by the Applicant within 45 Calendar Days from the date of issuance or as otherwise indicated on the certificate unless an extension of this deadline is requested in writing by the Applicant and is granted by the Corporation in writing for good cause.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 8-27-24, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.027 HC General Program Procedures and Requirements

(1) Each Housing Credit Development shall comply with the minimum Housing Credit Set-Aside provisions, as specified in Section 42(g)(1) of the IRC. Further, each Housing Credit Development shall comply with any additional Housing Credit Set-Aside chosen by the Applicant in the Application.

(2) The Development shall provide safe, sanitary and decent residential rental housing and shall be developed, constructed and operated in accordance with the commitments made and the facilities and services described in the Application at the time of submission to the Corporation. Applications will not be considered approved to receive an allocation of Housing Credits until the Corporation issues a Preliminary Determination to the Applicant and all contingencies of such documents are satisfied. Allocations are further contingent on the Applicant complying with its Application commitments, this rule chapter, and Section 42 of the IRC.

(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.

(4) Each Housing Credit Development shall complete the Final Cost Certification Application Package by the earlier of the following two dates:

(a) The date that is 90 Calendar Days after all the buildings in the Development have been placed in service, or

(b) The date that is 30 Calendar Days before the end of the calendar year for which the Final Housing Credit Allocation is requested.

The Corporation may grant extensions for good cause upon written request.

(5) Prior to execution of the limited partnership agreement or limited liability company operating agreement between the Applicant and the limited partners/members, the Applicant must receive written approval from the Corporation or its Credit Underwriter that the Housing Credit Syndicator is in good standing with the Corporation. Proceeding with execution of a partnership agreement or operating agreement with a Housing Credit Syndicator that is not in good standing shall result in withdrawal of the Housing Credit Allocation.

(6) The Final Cost Certification Application Package (Form FCCAP) shall be used by an Applicant to itemize all expenses incurred in association with construction or Rehabilitation of a Housing Credit Development, including Developer’s and General Contractor’s fees as described in Rule 67-21.026, F.A.C. Such form package shall be completed, executed and submitted to the Corporation by electronic file of the Microsoft Excel spreadsheets for the HC Development Final Cost Certification (DFCC) and the General Contractor Cost Certification (GCCC) included in the form package, along with the executed Extended Use Agreement and appropriate recording fees, IRS Tax Information Authorization Form 8821 for all Financial Beneficiaries if requested by the Corporation, a copy of the syndication agreement disclosing the rate and all terms, the required certified public accountant opinion letter for both the DFCC and GCCC, an unmodified audit report prepared by an independent certified public accountant for both the DFCC and GCCC, photographs of the completed Development, the monitoring fee, and documentation of the placed-in-service date as specified in the Form FCCAP instructions. The Final Housing Credit Allocation will not be issued until such time as all required items are received and processed by the Corporation. The Final Cost Certification Application Package (Form FCCAP) is adopted and incorporated herein by reference, effective 07-2026, and is available on the Corporation’s website under the Multifamily Programs link labeled Non-Competitive Funding Programs or from http://flrules.org/Gateway/reference.asp?No=Ref-19512, or by contacting the Housing Credit Program at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1321.

(7) After the final evaluation and determination of the Housing Credit Allocation amount has been made by the Corporation and the Extended Use Agreement has been executed in accordance with Rule 67-21.029, F.A.C., the IRS Low-Income Housing Credit Allocation and Certification Forms 8609 are issued to the Applicant of the Housing Credit Development, as provided below. The Corporation will issue only one complete set of Forms 8609 per Development which will be no earlier than total Development completion, the Corporation’s acceptance and approval of the Development’s Final Cost Certification Application Package, and determination by the Corporation that all financial obligations for which an Applicant or Developer, or Principal, Affiliate or Financial Beneficiary of an Applicant or Developer is in arrears to the Corporation or any agent or assignee of the Corporation have been satisfied. At the time the Applicant’s first tax return with which Form 8609-A is filed with the Internal Revenue Service, the Applicant must submit to the Corporation a copy of IRS Form 8609 with a completed Part II.

(8) Annually, within 151 Calendar Days following the Applicant’s fiscal year end, the Applicant shall provide the Corporation with an audited financial statement and a fully completed and executed Financial Reporting Form (SR-1) (Rev. 01-26), which is incorporated by reference and available on the Corporation’s website under the Property Owners & Managers link labeled Forms or from http://flrules.org/Gateway/reference.asp?No=Ref-19451. The audited financial statement and a copy of the signed Form SR-1, with Parts 1, 2, and 5 completed, shall be submitted in both PDF format and in electronic form as a Microsoft Excel spreadsheet to the Corporation at the following web address: financial.reporting@floridahousing.org. The initial submission will be due following the fiscal year within which the first unit is occupied. The initial submission for Housing Credit Developments that contain occupied units at the time of acquisition will be due following the fiscal year within which the 12 month anniversary of the closing is observed of either the Housing Credit equity partnership agreement or the acquisition of the development site, whichever comes first. The audited financial statement is to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

(a) Comparative Balance Sheet with prior year and current year balances;

(b) Statement of revenue and expenses;

(d) Statement of cash flows; and,

(e) Notes to financial statements.

(9) The Corporation must approve, pursuant to rule Chapter 67-53, F.A.C., the Applicant’s selection of a management company prior to the leasing of any units in the Development. The owner of a Development must notify the Corporation of an intended change in the management company prior to such company assuming responsibility for the Development.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.028 HC with Tax-Exempt Bond-Financed Developments

(1) Tax-Exempt Bond-Financed Developments which applied for Non-Competitive Housing Credits when also applying for MMRB from the Corporation shall:

(a) Have 25 percent or more of the aggregate basis of any building and the land on which the building is located financed by Tax-exempt Bonds;

(b) Be subject to the monitoring and credit underwriting fees as stated in this rule chapter; however, when the regulatory period for the Tax-exempt Bonds terminates prior to the expiration of the Housing Credit Extended Use Period, a separate compliance monitoring fee is required for the remainder of the Housing Credit Extended Use Period;

(c) If applying utilizing the Non-Competitive Application Package, be deemed to have met all HC Program scoring threshold requirements prior to issuance of an invitation to enter Credit Underwriting, or if applying under a competitive solicitation, meet all requirements of the competitive solicitation and be successfully selected for award through final Board action;

(d) Receive a Preliminary Determination upon the Corporation’s issuance of a loan commitment in reference to the Tax-exempt Bonds;

(e) Be subject to the provisions of this rule chapter. If the MMRB and Non-Competitive Housing Credits are awarded as a result of a competitive solicitation, the Development shall also be subject to the provisions of such competitive solicitation;

(f) Receive Building Identification Numbers from the Corporation upon satisfying the requirements of this section and the Final Cost Certification Application Package requirements of Rule 67-21.027, F.A.C.;

(g) If requested by the Corporation, provide an IRS Form 8821 for each Financial Beneficiary of the Development prior to Final Housing Credit Allocation; and,

(h) Pay the assigned Credit Underwriter for a comprehensive market study of the housing needs of Low Income individuals in the area to be served by the Development. The market study must be completed by a disinterested third party and a copy of the completed market study must be on file with the Corporation prior to the Final Housing Credit Allocation.

(2) Tax-Exempt Bond-Financed Developments receiving bonds issued by a County Housing Finance Authority established pursuant to Section 159.604, F.S., shall:

(a) Have 25 percent or more of the aggregate basis of any building and the land on which the building is located financed by Tax-exempt Bonds;

(b) Be subject to the Application fee specified in the Non-Competitive Application Package or a competitive solicitation, as applicable;

(c) Meet the HC Program requirements pursuant to the Non-Competitive Application Package or a competitive solicitation, as applicable, and participate in the required Credit Underwriting review, as outlined in this rule chapter and the Non-Competitive Application Package or competitive solicitation, as applicable, by a Credit Underwriter under contract with the Corporation;

(d) The Credit Underwriting review is a de novo review of all information and shall include a comprehensive analysis of the Applicant, the real estate, the economics of the Development, the ability of the Applicant and the Development team to complete and stabilize the Development, the evidence of need for affordable housing in order to determine that the Development meets the program requirements and determine a recommended Housing Credit Allocation amount. Corporation funding will be based on appraisals of comparable developments, cost benefit analysis and other documents evidencing justification of costs. As part of the Credit Underwriting review, the Development shall be subject to the following provisions of Rule 67-21.026, F.A.C.: subsections (2), (4) through (8), (10) through (13), and (15) through (19). The Application will be subject to the following provisions of subsection (9): An appraisal report conforming to the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal and reported in a comprehensive format, and a separate market study shall be ordered by the Credit Underwriter, at the Applicant’s expense, from an appraiser qualified for the geographic area and product type not later than completion of credit underwriting. The Credit Underwriter shall review the appraisal to properly evaluate the proposed Development’s financial feasibility. Appraisals which have been ordered and submitted by third party credit enhancers, first mortgagors or Housing Credit Syndicators and which meet the above requirements and are acceptable to the Credit Underwriter may be used instead of the appraisal referenced above. The market study must be completed by a disinterested party who is approved by the Credit Underwriter. For proposed Developments subject to location restrictions as designated in the Non-Competitive Application instructions, the Credit Underwriter must address the market and impact issues;

(e) Be subject to the Credit Underwriting Fees as set forth in this rule chapter. Failure to submit the required Credit Underwriting fee to the Credit Underwriter within seven (7) Calendar Days of the date of the invitation to enter Credit Underwriting shall result in withdrawal of the invitation;

(f) Be subject to the administrative fee specified in the Non-Competitive Application Package or a competitive solicitation, as applicable;

(g) Receive a Preliminary Determination from the Corporation upon satisfying the requirements of paragraphs (a) through (f), above, as applicable;

(h) Be subject to a Developer fee limitation as specified in this rule chapter;

(i) Be subject to the additional provisions of this rule chapter, specifically the applicable provisions of Part I and Part III;

(j) If requested by the Corporation, provide an IRS Form 8821 for each Financial Beneficiary of the Development prior to Final Housing Credit Allocation;

(k) Be subject to the provisions in this rule chapter pertaining to the required Extended Use Agreement;

(l) Be subject to the monitoring fee specified in the Non-Competitive Application Package or a competitive solicitation, as applicable;

(m) Submit an Application to the Corporation utilizing the Non-Competitive Application Package or a competitive solicitation, as applicable. If utilizing the Non-Competitive Application Package, it must be completed in accordance with the requirements outlined in the Non-Competitive Application Package instructions. The Application Form and all required exhibits may be submitted to the Corporation once the Applicant completes Credit Underwriting for the Tax-exempt Bonds, but in no event may the Non-Competitive Application Package be submitted later than the last Corporation business day of December of the year the Development is placed in service. If utilizing a competitive solicitation to apply for the Non-Competitive Housing Credits, the requirements of the specific competitive solicitation must be followed; and,

(n) Receive Building Identification Numbers from the Corporation upon satisfying the requirements of this section and the Final Cost Certification Application Package requirements of Rule 67-21.027, F.A.C.

(3) Tax-Exempt Bond-Financed Developments receiving bonds from another source other than the Corporation or a County Housing Finance Authority and not competing for Housing Credits under the state of Florida’s Allocation Authority shall:

(a) Make Application to the Corporation as required in this rule chapter, utilizing the Non-Competitive Application Package, for receipt by the Corporation once the Applicant has received affirmation that the tax-exempt multifamily bond allocation has been reserved or that the entity issuing the bonds has agreed to award the necessary allocation when available, but no later than 14 days after the TEFRA Hearing, and in no event may the Application be submitted after commencement of Rehabilitation or construction;

(b) Be subject to the Application fee specified in the Non-Competitive Application Package;

(c) Meet the HC Program threshold requirements pursuant to the Non-Competitive Application Package and shall have secured a commitment for the Tax-exempt Bonds;

(d) Be subject to the Credit Underwriting fees as set forth in the Non-Competitive Application Package. Failure to submit the required Credit Underwriting fee to the Credit Underwriter within seven (7) Calendar Days of the date of the invitation to enter Credit Underwriting shall result in withdrawal of the invitation;

(e) Participate in the Credit Underwriting process pursuant to Rule 67-21.026, F.A.C.;

(f) Have 25 percent or more of the aggregate basis of any building and the land on which the building is located financed by tax-exempt multifamily bonds;

(g) Receive a Preliminary Determination from the Corporation upon satisfying the requirements of paragraphs (a) through (f), above. A Development may receive a Preliminary Determination prior to the bonds being issued, after satisfying the requirements of paragraphs (a) through (d), above, if the Corporation receives a Credit Underwriting report prepared by one of the Corporation’s contracted Credit Underwriters which meets the criteria required pursuant to this rule chapter and recommends a Housing Credit Allocation and the issuance of Tax-exempt Bonds, and receives evidence of a loan commitment in reference to the Tax-exempt Bonds where the amount of the Bonds is at least 25 percent or more of the aggregate basis of any building and the land on which the building is located;

(h) Be subject to the administrative fee specified in the Non-Competitive Application Package. Unless an extension is requested in writing by the Applicant and is granted by the Corporation, the administrative fee must be paid within seven (7) Calendar Days of the date of the Preliminary Determination or, if the Housing Credit Allocation is in conjunction with Corporation-issued MMRB, the administrative fee may be paid at the time of MMRB Loan closing;

(i) Be subject to a Developer Fee limitation as specified in this rule chapter;

(j) Be subject to the provisions of this rule chapter, specifically the applicable provisions of Part I and Part III;

(k) If requested by the Corporation, provide an IRS Form 8821 for each Financial Beneficiary of the Development prior to Final Housing Credit Allocation;

(l) Be subject to the provisions in this rule chapter pertaining to the required Extended Use Agreement;

(m) Be subject to the monitoring fee specified in the Non-Competitive Application Package;

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, 6-23-20, Repromulgated 5-18-21, 7-6-22, Amended 6-28-23, Repromulgated 7-10-25, Amended 8-13-26.

Fla. Admin. Code R. 67-21.029 HC Extended Use Agreement

(1) Pursuant to Section 42(h)(6) of the IRC, the Applicant and the Corporation shall enter into an Extended Use Agreement. The purpose of the Extended Use Agreement is to set forth the Housing Credit Extended Use Period, the Compliance Period, and to evidence commitments made by the Applicant in the Application or subsequently agreed to by the Corporation.

(2) The following provisions shall be included in the Extended Use Agreement:

(a) The Applicable Fraction for Housing Credit Set-Aside units for each taxable year in the Housing Credit Extended Use Period shall not be less than the Applicable Fraction;

(b) Eligible Persons occupying set-aside units shall have the right to enforce in any state of Florida court the extended use requirement for set-aside units;

(d) The Extended Use Agreement shall be executed prior to the issuance of a Final Housing Credit Allocation to an Applicant. Following execution, the Extended Use Agreement shall be recorded pursuant to Florida law as a restrictive covenant.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Repromulgated 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.030 Sale or Transfer of a Housing Credit Development

An owner of a Housing Credit Development, its successor or assigns which has been granted a Final Housing Credit Allocation shall not sell the Housing Credit Development without having first notified the Treasury of the impending sale and complying with the Treasury’s procedure or procedures for completing the transfer of ownership and utilizing the Housing Credit Allocation. The owner of a Housing Credit Development shall notify the Corporation in writing of an impending sale and of compliance with any requirements by the Treasury for the transfer of the Housing Credit Development. The proposed transferee agrees to maintain all set-asides and other requirements of the Extended Use Agreement for the period originally specified; pay any and all unpaid compliance monitoring fees through the end of the Extended Use Agreement; and execute any assignment and assumption documents the Corporation deems necessary to effectuate the ownership change. For those Developments that have not waived the right to submit a qualified contract, any transfer of that Development will require the transferee to agree to a waiver of the right to submit a qualified contract before approval of the transfer will be provided by the Corporation. All requests which only require subordination of the regulatory agreements must be submitted in writing to the Special Assets Director and contain the specific details of the subordination. In addition to any related professional fees, the Corporation shall charge a non-refundable subordination fee of $1,000 for each regulatory agreement to be subordinated. The applicable fee will be determined by the rule in effect at the time of the subordination request.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Repromulgated 2-2-15, 9-15-16, 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-21.031 Qualified Contracts

(1) An owner’s written request to the Corporation for a qualified contract (a “qualified contract request”) shall be governed by 26 CFR 1.42-18 (the “qualified contract regulations”), Section 42 of the IRC, as applicable, Section 420.503(4), F.S., and Section 420.503(36), F.S., and this rule section in effect at the time of the qualified contract request. As used in this rule section:

“Bona fide contract” has the same meaning as in Section 420.503(4), F.S.

“Qualified contract” has the same meaning as in Section 420.503(36), F.S.

(2) For purposes of this rule and processing a qualified contract request, the Corporation shall be deemed to have fulfilled its responsibility to present the owner with a qualified contract by presenting the owner with a contract deemed by the Corporation to be a qualified contract pursuant to Section 420.503(36), F.S., within the one-year period described in Section 42(h)(6)(I) of the IRC. The initial deposit required by Section 420.503(36), F.S., to be deposited in escrow in order for the bona fide contract to be deemed a qualified contract must be deposited in escrow with a nationally recognized title insurance company which offers escrow services (“escrow agent”) designated by the owner at the time of submission of the qualified contract request, or if no such escrow agent is designated by the owner, with an escrow agent selected by the purchaser, contemporaneously with the submission of the contract to the owner. The contract shall be accompanied by written notice from the Corporation to the owner that the contract has been deemed by the Corporation to be a qualified contract pursuant to Section 420.503(36), F.S. It shall be the owner’s responsibility to negotiate with the purchaser the specific terms of the contract, and the owner’s rejection of the contract or failure to act on the contract shall in no way affect the status of the contract as a qualified contract. The Corporation shall have no duty and is not responsible to either the owner or the purchaser for negotiating the details of the qualified contract following its presentation to the owner.

(3) After the 14th year of the Compliance Period, unless otherwise obligated under the Extended Use Agreement, or a Land Use Restriction Agreement under another Corporation program, and provided the right to request a qualified contract for the Development was not waived in exchange for or in connection with the award of Housing Credits, the owner of a Development may submit a qualified contract request to the Corporation. When submitting a qualified contract request, the owner shall utilize the Qualified Contract Package in effect at the time of the request and shall remit payment of the required Qualified Contract Package fee as provided therein. The Qualified Contract Package consists of the forms and instructions, obtained from the Corporation at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329, or 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-12012, which shall be completed and submitted to the Corporation in order to request a qualified contract. The Qualified Contract Package, (Rev. 03-2020), is adopted and incorporated herein by reference.

(4) All information contained in a Qualified Contract Package is subject to independent review, analysis and verification by the Corporation or its agents. The Corporation may request additional information to document the qualified contract amount calculated by the owner. The Corporation may also engage the services of its own certified public accountant (CPA) and real estate appraiser to assist in the review of a Qualified Contract Package. Real estate appraisers involved in the qualified contract process must be licensed by the state of Florida, be an MAI-designated general appraiser, and be otherwise acceptable to the Corporation.

(5) The qualified contract regulations provide that the fair market value of the non-low-income portion of the building includes the fair market value of the underlying land and that the valuation of the underlying land must take into account the existing and continuing requirements contained in the Extended Use Agreement. Pursuant to Section 193.017, F.S., and the statutes cited therein, the Extended Use Agreement recorded in connection with a Housing Credit property is a land-use regulation and a limitation on the highest and best use of the property during the term of the agreement that must be considered by the county property appraiser in assessing the value of the property. Unless the owner elects otherwise as provided below, for purposes of a qualified contract request, the fair market value of the underlying land shall be the value attributed to the underlying land by the county property appraiser in the most recent year’s assessed value of the Development provided that the county property appraiser’s valuation of the land takes into account the existing and continuing requirements contained in the Extended Use Agreement. The county property appraiser’s valuation methodology shall be verified upon submission of a qualified contract request in order to determine if the valuation of the land has taken into account the existing and continuing requirements contained in the Extended Use Agreement. If the owner is of the opinion that the county property appraiser’s valuation does not represent the fair market value of the underlying land within the contemplation of the qualified contract regulations at the time of the qualified contract request, the owner may elect to submit with its qualified contract request a value (the “owner’s appraised value”) for the underlying land at the fair market value determined by a real estate appraiser (the “owner’s appraiser”) engaged by the owner for that purpose in lieu of the county property appraiser’s valuation. A copy of the real estate appraisal (the “owner’s appraisal report”) upon which the owner’s appraised value is based shall be included with the owner’s qualified contract request. If the owner elects to rely on the county property appraiser’s valuation of the land and the Corporation determines that the county property appraiser’s valuation did not take into account the existing and continuing requirements contained in the Extended Use Agreement, the county property appraiser’s valuation shall be disregarded, and instead, the owner must obtain and submit to the Corporation an owner’s appraisal report together with the owner’s appraised value as provided above. The owner’s appraiser must certify in the appraisal report that the valuation represents the fair market value of the underlying land taking into account the existing and continuing requirements contained in the Extended Use Agreement for the property. The owner’s appraisal report must also include a narrative describing the methodology or manner in which the requirements contained in the Extended Use Agreement were considered by the owner’s appraiser in arriving at the owner’s appraised value of the underlying land, and, for comparison and evaluation purposes, the opinion of the owner’s appraiser as to what the fair market value of the underlying land would be if unencumbered by the requirements of the Extended Use Agreement. The lower of the restricted and unrestricted appraised values should be included in the qualified contract price if the owner’s appraised value is submitted. The owner’s appraised value of the underlying land and the owner’s appraisal report shall be subject to review and approval by the Corporation. The Corporation may engage the services of one or more real estate appraisers, or other professionals, to assist in the review and evaluation of the owner’s appraised value and the owner’s appraisal report.

(6) In addition to the Qualified Contract Package fee, the owner shall be responsible for all third party fees in connection with the owner’s qualified contract request. Third party fees include, but are not limited to, the costs of the services provided by CPAs and real estate appraisers or other real estate professionals engaged by the Corporation to assist it in the review of a qualified contract request, and the fees and commissions of any real estate broker in connection with the marketing and sale of the development to a buyer under a qualified contract.

(7) When offering a development for sale to the general public pursuant to a qualified contract request, the Corporation may, but shall not be required to, utilize the services of a real estate broker under contract with or designated by the Corporation to market and sell the development. The owner of the development shall be responsible for the fees and commissions due any such real estate broker in connection with the marketing and sale of the development, and, upon request of the Corporation or the real estate broker, the owner shall enter into a written agreement with the real estate broker pursuant to which the owner agrees to pay to the real estate broker such fees and commissions in connection with the marketing and sale of the development.

(8) The running of the one-year period described in Section 42(h)(6)(I) of the IRC shall 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;

(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) Administrative or civil proceedings are commenced at any time during the one-year period contesting a determination or decision made by the Corporation regarding a qualified contract request or a qualified contract; or

(i) 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, litigation or disagreement giving rise to the suspension is cured or otherwise resolved. The 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 subsection (6), 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 IRC 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.

References in this rule to the one-year period shall mean the running of the one-year period as same may be affected as a result of being suspended pursuant to this subsection (8).

(9) Upon mutual agreement of the owner and the Corporation, the qualified contract amount shall be documented in writing signed by the Corporation and the owner.

(10) The owner shall cooperate with the Corporation and its agents, real estate brokers and prospective buyers in connection with the processing of the owner’s qualified contract request and the marketing of the Development to prospective buyers. If the Corporation presents a qualified contract within the one-year period regardless of whether the owner accepts, rejects or fails to act upon the contract, the Development shall remain subject to the Extended Use Agreement, and the owner shall be deemed to have waived any right or option to submit another qualified contract request for the Development. If the Corporation is unable to present during such one-year period a qualified contract, the Extended Use Agreement shall terminate, subject, however, to Section 42(h)(6)(E)(ii) of the IRC which provides that the termination of an extended low-income housing commitment under Section 42(h)(6)(E)(i) will not be construed to permit before the close of the 3-year period following the termination (a) the eviction or termination of tenancy (other than for good cause) of an existing tenant of any Low-Income unit, or (b) any increase in the gross rent with respect to a Low-Income unit not otherwise permitted under Section 42 of the IRC.

(11) An owner shall be allowed only one qualified contract request per Development.

(12) This rule shall apply to qualified contract requests first submitted to the Corporation on or after the effective date of the rule.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-16-13, Amended 2-2-15, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, Repromulgated 5-18-21, 7-6-22, Amended 6-28-23, Repromulgated 7-10-25, 8-13-26.

Chapter 67-25 SINGLE-FAMILY MORTGAGE REVENUE BONDS PROGRAM

Fla. Admin. Code R. 67-25.002 Definitions

History

Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 4-15-87, Formerly 9I-25.002, Amended 12-16-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.003 Issuance of Revenue Bonds

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508, 420.509, 420.51, 215.68, 215.84 FS. History–New 4-15-87, Formerly 9I-25.003, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.004 Security for Repayment of Bonds

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.503, 420.508 FS. History–New 4-15-87, Formerly 9I-25.004, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.005 Notice of Program and Invitation and Application to Participate

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.005, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.006 Program Documents

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.006, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.007 Allocation of Proceeds

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(14), 420.508 FS. History–New 4-15-87, Formerly 9I-25.007, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.008 Program Fees

History

Rulemaking Authority 420.507(4), (12) FS. Law Implemented 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.008, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.009 Commitment and Origination Periods

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.009, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.010 Builders Commitments

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(14), (21), 420.508 FS. History–New 4-15-87, Formerly 9I-25.010, Amended 12-16-03, Repealed 2-2-05.

Fla. Admin. Code R. 67-25.011 Loan Processing

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.011, Amended 12-16-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.012 Eligible Persons

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507(14), 420.507(21) FS. History–New 4-15-87, Formerly 9I-25.012, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.013 Transfer of Single-Family Residence by Eligible Borrower

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.013, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.014 Rental of Bond Financed Residences

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Amended 2-1-89, Formerly 9I-25.014, Amended 12-16-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.015 Interest Rate on Program Loans and Financing Programs

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508, 420.509 FS. History–New 4-15-87, Formerly 9I-25.015, Amended 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.0155 Private Mortgage Insurance

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 12-16-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.016 Waiver of Repayment Terms under Mortgage

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.016, Repromulgated 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.017 Rating of Bonds

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.502, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.017, Amended 12-16-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-25.020 Appeals

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.503, 420.507, 420.508 FS. History–New 4-15-87, Formerly 9I-25.020, Repealed 11-22-01.

Chapter 67-32 ELDERLY HOUSING COMMUNITY LOAN PROGRAM

Fla. Admin. Code R. 67-32.002 Definitions

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Amended 2-25-96, Formerly 9I-32.002, Amended 11-9-98, 1-2-00, 12-31-00, 3-17-02, 5-5-03, 2-16-05, 2-20-07, 1-17-08, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.0035 Applicant Administrative Appeal Procedures

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 1-17-08, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.004 General Program Restrictions

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Amended 1-9-92, 2-25-96, Formerly 9I-32.004, Amended 11-9-98, 1-2-00, 12-31-00, 3-17-02, Repromulgated 5-5-03, Amended 1-26-06, 4-7-09, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.005 Application Procedures

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Amended 1-9-92, 2-25-96, Formerly 9I-32.005, Amended 11-9-98, 1-2-00, 12-31-00, 3-17-02, Repromulgated 5-5-03, Amended 2-16-05, 1-26-06, 2-20-07, 1-17-08, 4-7-09, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.006 Terms and Conditions of Loan

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Amended 1-9-92, 2-25-96, Formerly 9I-32.006, Amended 11-9-98, Repromulgated 1-2-00, Amended 12-31-00, 3-17-02, 5-5-03, 2-16-05, 1-26-06, 2-20-07, 1-17-08, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.007 Scoring, Ranking, and Funding Guidelines

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Formerly 9I-32.007, Amended 11-9-98, 1-2-00, Repromulgated 12-31-00, Amended 3-17-02, 5-5-03, 2-16-05, 1-26-06, 1-17-08, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.009 EHCL Credit Underwriting Procedures

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 5-5-03, Amended 2-16-05, Repealed 10-8-14.

Fla. Admin. Code R. 67-32.011 Fees

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.507(19), 420.5087(3)(d) FS. History–New 10-2-89, Amended 2-25-96, Formerly 9I-32.011, Amended 11-9-98, 1-2-00, 12-31-00, 3-17-02, Repromulgated 5-5-03, Amended 2-16-05, Repealed 10-8-14.

Chapter 67-37 STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM

Fla. Admin. Code R. 67-37.002 Definitions

As used in this rule chapter, the following definitions shall apply:

(1) “Administrative Expenditures” means those expenditures directly related to implementation of the Local Housing Assistance Plans.

(2) “Annual Gross Income” means Annual Gross Income as defined in Section 420.9071(4), F.S.

(3) “Annual Report” means a report required to be completed and submitted to the Corporation by September 15 of each year pursuant to Section 420.9075(10), F.S.

(4) “Assisted Housing” or “Assisted Housing Development” means Assisted Housing as defined in Section 420.9071(29), F.S.

(5) “Catalyst” means the Affordable Housing Catalyst Program as described in Section 420.531, F.S.

(6) “Debt Service” means the amount required in any fiscal year to pay the principal of, redemption premium, if any, and interest on bonds and any amounts required by the terms of the documents authorizing, securing, or providing liquidity for bonds necessary to maintain in effect any such liquidity or security arrangements.

(7) “Default” means the failure to make required payments on a financial loan secured by a mortgage that may lead to foreclosure and loss of property ownership.

(8) “Deferred Payment Loan” means funds provided to a borrower under terms that calls for repayment to be delayed for a certain length of time, until certain circumstances change, or a certain threshold is met.

(9) “Eligible Housing” means as defined in Section 420.9071(8), F.S.

(10) “Encumbered” means that deposits made to the local affordable housing trust fund have been committed by contract, or purchase order, letter of commitment or award in a manner that obligates the county, eligible municipality, or interlocal entity to expend the amount upon delivery of goods, the rendering of services, or the conveyance of real property by a vendor, supplier, contractor, or owner.

(11) “Essential Service Personnel” means persons in need of affordable housing who are employed in occupations or professions in which they are considered essential service personnel, as defined by each county and eligible municipality within its respective local housing assistance plan pursuant to Section 420.9075(3)(a), F.S.

(12) “Expended” means the affordable housing activity is complete and funds deposited to the local affordable housing trust fund have been transferred from the local housing assistance trust fund account to pay for the cost of the activity.

(13) “Extremely Low Income Household” or “ELI” means one or more natural persons or a family that has a total annual gross household income that does not exceed 30 percent of the area median income adjusted for family size for households within the metropolitan statistical area, the county, or the non-metropolitan median for the state, whichever is greatest.

(14) “Foreclosure” means the legal action by a mortgage holder to require repayment of a Loan through the sale of the subject property.

(15) “Forgivable Loan” means a loan with no repayment obligation if requirements of the loan are met for a specified period of time.

(16) “Grant” means Grant as defined in Section 420.9071(12), F.S.

(17) “Home Ownership Activities” means the use of the local affordable housing trust fund moneys for the purpose of providing owner-occupied housing. Such uses include construction, rehabilitation, purchase, and lease-purchase financing where the primary purpose is the eventual purchase of the housing by the occupant within twenty-four months from initial execution of a lease agreement or within twenty-four (24) months of the applicable fiscal year, whichever occurs first.

(18) “Interlocal Entity” means an entity created pursuant to the provisions of Chapter 163, Part I, F.S., for the purpose of establishing a joint local housing assistance plan between two or more SHIP eligible local governments pursuant to the provisions of Section 420.9072(5), F.S.

(19) “Loan” means Loan as defined in Section 420.9071(13), F.S.

(20) “Local Housing Incentive Strategies” means Local Housing Incentive Strategies as defined in Section 420.9071(16), F.S.

(21) “Persons With Special Needs” means Persons with Special Needs as defined in Section 420.0004(13), F.S.

(22) “Preservation” means Preservation as defined in Section 420.9071(30), F.S.

(23) “Program Income” means Program Income as defined in Section 420.9071(24), F.S.

(24) “Project Delivery Costs” means those costs related to the delivery of housing related services to an eligible applicant that are not included as part of Administrative Expenditures.

(25) “Recaptured Funds” means Recaptured Funds as defined in Section 420.9071(25), F.S.

(26) “Rehabilitation” means repairs or improvements which are needed for safe or sanitary habitation, correction of substantial code violations, or the creation of additional living space.

(27) “Review Committee” means the committee established pursuant to Section 420.9072(3)(a), F.S.

(28) “SHIP” or “SHIP Program” means the State Housing Initiatives Partnership Program created pursuant to the State Housing Initiative Partnership Act, Sections 420.907-.9079, F.S.

(29) “Sponsor” means eligible sponsor as defined in Section 420.9071(11), F.S.

(30) “State” means the State of Florida.

(31) “Sub-Recipient” means a person or organization contracted by a SHIP eligible local government that is compensated with SHIP funds to provide administration of any portion of the SHIP program.

(32) “Welfare Transition Program” means a program pursuant to the provisions of Section 445.006, F.S.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9072 FS. History–New 11-26-92, Amended 2-9-94, 12-28-94, 1-6-98, Formerly 9I-37.002, Amended 12-26-99, 9-22-03, 1-30-05, 11-5-06, 2-24-08, 11-22-09, 5-23-17.

Fla. Admin. Code R. 67-37.005 Local Housing Assistance Plans (LHAP)

(1) General Requirements:

(a) To be eligible for SHIP funding for a state fiscal year, a county or eligible municipality shall submit and receive approval of its local housing assistance plan and amendments thereto as provided in Rule 67-37.006, F.A.C. Plans must be submitted to the Corporation by May 2, preceding the end of the fiscal year in which the current plan expires. New Plans must be submitted using the LHAP Template 2016-001, effective (5/17), including all required exhibits, which is adopted and incorporated herein by reference https://www.flrules.org/Gateway/reference.asp?No=Ref-08193. A copy of the LHAP Template 2016-001, and required exhibits may be obtained at http://www.floridahousing.org or by contacting the Corporation. In the case of new eligible municipalities, plans must be submitted to the Corporation by May 2, of the state fiscal year, prior to the state fiscal year they seek to become eligible for funding. No SHIP local housing distribution funds shall be distributed in a fiscal year to a county or eligible municipality unless and until an approved LHAP is in place with respect to applicable fiscal year.

(b) The effective period of an LHAP may be up to three state fiscal years. Counties or eligible municipalities that receive LHAP approval for more than one fiscal year shall not be required to resubmit a new plan until May 2 of the year, in which the approved plan expires.

(c) A copy of the local housing assistance plan shall be submitted to the Corporation, via electronic submission. The local housing assistance plan’s certification and resolution, which are part of the LHAP Template 2016-001, shall be submitted and shall bear the original signature of the authorized official which includes: Mayor, Commissioner, County Manager or City Manager or the authorized official’s designee and a certification that the document being submitted is the county’s, eligible municipality’s or interlocal entity’s local housing assistance plan and that all provisions of the plan conform to the requirements of Section 420.9072, F.S., et seq., and Rule Chapter 67-37, F.A.C.

(d) Within two weeks after receipt of final approval of the LHAP from the Corporation, the local government shall provide, via electronic submission, a complete clean copy (no strike through or underline) including all required exhibits to the Corporation.

(e) The Corporation shall be notified by a county or eligible municipality of any recently hired staff or any new entity employed or contracted to administer any portion of the SHIP program having no previous experience with the SHIP program. Those staff or entity shall be required to receive technical assistance and training through the Affordable Housing Catalyst Program.

(f) The funds deposited to the local housing assistance trust fund must be spent within twenty-four months from the end of the applicable State fiscal year. Exceptions to this time frame must be approved by the Corporation SHIP Program Administrator on a case-by-case basis. Exceptions will only be granted for good cause. Examples of good cause are natural disasters, requirements of other State agencies, adverse market conditions, and unavoidable development delays. Adequate explanation of the reasons for the requested extension as well as a timeline for completing the expenditure of funds must be submitted to the Corporation before an extension will be approved, e.g., project status, work plan and completion schedule, commitment of funds, etc. The Corporation may require a local government requesting an expenditure extension to receive technical assistance through the Catalyst program to evaluate the need for an extension.

(g) Each LHAP must include a disaster strategy describing activities to be undertaken in the event of an emergency or disaster that has been declared by executive order. A copy of a sample Disaster Strategy is available on the Corporation’s website at http://www.floridahousing.org or by contacting the Corporation. Local governments may use unencumbered SHIP funds to carry out activities of disaster relief. Recipients of SHIP funds under a local government’s disaster strategy shall be required to verify income using certifications, pay check stubs or other forms of proof. Documentation required for SHIP income qualification may be waived if unavailable. The county or eligible municipality shall make every effort reasonable to insure that the recipients of SHIP funds are income qualified.

(2) A county or eligible municipality is permitted to:

(a) Develop a strategy within its local housing assistance plan that emphasizes the recruitment and retention of Essential Service Personnel pursuant to Section 420.9075(3)(b), F.S.

(b) Use SHIP funds for persons or families whose total annual household income does not exceed one hundred forty percent of the area median income, adjusted for family size; this use of funds does not relieve the local government from meeting the requirements of Section 420.9075(5)(g)2., F.S.

(c) Develop a strategy within its local housing assistance plan that addresses the needs of persons who are deprived of affordable housing due to the closure of a mobile home park or the conversion of affordable rental units to condominiums pursuant to Section 420.9075(3)(c), F.S.

(d) Develop a strategy within its local housing assistance plan for the Preservation of assisted rental housing.

(3) Notice of Funding Availability. Each county or eligible municipality shall advertise a notice of funding availability of SHIP funds at least 30 days before the beginning of the application period in a newspaper of general circulation and periodicals serving ethnically and racially diverse populations unless a waiting list of applicants exists that will exhaust all allocated funding.

(a) The advertisement shall:

Identify the amount of the distribution projected to be received from the state for the fiscal year,
List the beginning and end date of the application period,
Provide the name of the local plan contact person and other pertinent information including where applicants may apply for assistance.

(b) The advertisement may also include information that the local governments deem necessary such as:

An estimated amount of SHIP local housing distribution per strategy,
Income set aside for each strategy along with applicable income limits,
A description of the selection criteria for each strategy,
The maximum housing value limitation for each strategy.

(4) Each local housing assistance plan shall be submitted on the LHAP template and include:

(a) A description of the local housing strategies and incentive strategies;

(b) A statement that monthly rents or monthly mortgage payments, including taxes and insurance, do not exceed 30 percent of an amount representing the percentage of the area’s median Annual Gross Income for the household as indicated in Section 420.9071(19), (20) or (28), F.S. However, it is not the intent to limit an individual household’s ability to devote more than 30 percent of its income for housing. Housing for which a household devotes more than 30 percent of its income shall be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark and in the case of rental housing does not exceed those rental limits adjusted for bedroom size established by the Corporation;

(c) A description of the extent to which a strategy is implemented by combining resources through a partnership in order to leverage the cost of housing;

(d) A description of the support services that will be made available to the residents of the housing; and,

(e) A description of the initiatives that will be used to conduct outreach and to attract applicants for assistance;

(f) A statement that strategies further the housing element, goals, policies, and objectives of the local government’s comprehensive plan;

(g) A policy stating that once a waiting list has been exhausted and funds remain unencumbered, the local government will advertise as instructed in Section 420.9075(4)(b), F.S.;

(h) A statement that the staff or entity that has administrative authority for implementing a local housing assistance plan assisting rental developments shall annually monitor and determine tenant eligibility throughout the 15 year compliance period as described at subsection 67-37.007(15), F.A.C.;

(i) A definition of essential service personnel for the county or eligible municipality. Such definition may include teachers and educators; other school district, community college, and university employees; police and fire personnel; health care personnel; skilled building trades personnel; and other specifically defined job categories as required by Section 420.9075(3)(a), F.S.;

(j) A description of initiatives identifying current and emerging green building and design techniques and explain how these techniques are to be integrated into its housing strategies both for sustainability and to promote greater affordability pursuant to Section 420.9075(3)(d), F.S.;

(k) A complete description of all strategies and activities to be undertaken as described in this section;

(l) A description of the qualification system and selection criteria for applications for awards to eligible sponsors, which includes a description that demonstrates how eligible sponsors that employed personnel from the Welfare Transition Program will be given preference in the selection process;

(m) A description of the criteria for selection of eligible persons;

(n) Maximum Award amounts for each strategy listed in the local housing assistance plan;

(o) A timeline for the expenditure of SHIP local housing distribution funds in sufficient detail to allow for a comparison of such plan with actual expenditures. The information submitted must be presented separately for each State fiscal year;

(p) A detailed line-item budget of proposed Administrative Expenditures. These must be presented on an annual basis for each State fiscal year submitted;

(q) A copy of the ordinance and its amendments, if the original ordinance has been amended from its original submission, as required by Section 420.9072(2)(b), F.S.; and,

(r) A housing delivery goals chart hereby incorporated by reference as an exhibit to the LHAP template for each fiscal year, which includes the following infomration for each strategy:

The proposed dollar amount of the local housing distribution to be used for each strategy, stated for each State fiscal year in a multi-year plan,
The estimated number of households proposed to be served for each strategy and income category,
The maximum amount of funding per unit for each strategy, and the estimated amount of funding for new construction, rehabilitation or non-construction activities. On a multi-year plan, this information must be stated separately for each State fiscal year,
The maximum sales price of new and existing units. For community land trust purposes the value of the land is not included in the purchase price.

(5) Each LHAP shall contain a certification form, which is included as an exhibit to LHAP Template 2016-001, which requires the county or eligible municipality to certify to all statements on said form, including that:

(a) There is an established procedure for the tracking and expenditure of program income and Recaptured Funds from loan repayments, reimbursements, foreclosures or other repayments, and interest earnings on the local housing distribution funds;

(b) There is a plan to Encumber the local housing distribution funds deposited into the local housing assistance trust fund for each State fiscal year by June 30 one year following the end of the applicable State fiscal year;

(c) There is a plan for the local housing distribution deposited into the local housing assistance trust fund to be Expended for eligible persons or eligible sponsor within 24 months of the end of the applicable State fiscal year. Expended is defined as:

The project is completed as evidenced by documentation of final payment to the contractor and release of all lien waivers,
Issuance of the certificate of occupancy by the local building department in the case of a new home or proof of the final building inspection for housing rehabilitation, and occupancy by an eligible person or eligible household,
For assistance to tenants of rental housing or foreclosure assistance payments, funds are Expended upon transfer of funds to a tenant, resident, lending insitution, utility provider or landlord; and,
In the case of a loan guarantee strategy, the deposits to the local housing assistance trust fund will be considered expended when they are deposited from the local housing assistance trust fund into the guarantee fund.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9071, 420.9072(2), 420.9075 FS. History–New 11-26-92, Amended 5-2-93, 2-9-94, 12-28-94, 1-6-98, Formerly 9I-37.005, Amended 12-26-99, 9-22-03,1-30-05, 11-5-06, 2-24-08, 11-22-09, 5-23-17.

Fla. Admin. Code R. 67-37.006 Review of Local Housing Assistance Plans and Amendments

(1) Local housing assistance plans and amendments shall be reviewed and approved by a Review Committee of Corporation employees appointed by the Executive Director.

(2) Any county or eligible municipality desiring review of a new plan or plan amendment prior to adoption by the local government body may submit it for review to the Corporation. The plan or amendment will be reviewed by the Corporation, which will recommend it for conditional approval pending local approval and submission of all required documents or identify inconsistencies with the requirements of the SHIP program Rule Chapter 67-37, F.A.C., and Sections 420.907-.9079, F.S., within 45 days after receipt.

(3) Amendments to an approved local housing assistance plan must be adopted by resolution and the county or eligible municipality must provide a copy to the Corporation within 21 days after adoption. A county or eligible municipality must amend its plan if at any time a strategy will be deleted or a new strategy will be added. Amendments that do not add, delete or significantly alter a strategy are considered technical and are not subject to the amendment review process.

(4) A county or eligible municipality that has adopted a Plan or an amendment that has been determined by the Corporation to be inconsistent with the requirements of the SHIP program, shall make necessary revisions identified within 45 days of receipt of the Committee’s comments.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9072(2) FS. History–New 11-26-92, Amended 2-9-94, 12-28-94, 1-6-98, Formerly 9I-37.006, Amended 12-26-99, 9-22-03, 2-24-08, 11-22-09, 5-23-17.

Fla. Admin. Code R. 67-37.007 Uses of and Restrictions Upon SHIP Local Housing Distribution Funds for Local Housing Assistance Plans

(1) SHIP local housing distribution funds shall be used to implement the local housing assistance plan. The benefit of assistance provided through the SHIP program must accrue to eligible persons occupying Eligible Housing. This provision shall not be construed to prohibit use of the local housing distribution deposited into the local housing assistance trust fund for a mixed-income rental development.

(a) All local housing distribution funds shall be Encumbered by June 30 of the State fiscal year following the end of the applicable State fiscal year.

(b) The funds deposited to the local housing assistance trust fund must be Expended within 24 months from the end of the applicable State fiscal year. Requests for extensions for good cause must be submitted by the local government to the Corporation and will be reviewed and approved or denied by the Corporation on a case-by-case basis. Examples of good cause include disasters, requirements of other State agencies or housing programs, adverse market conditions, and unavoidable development delays. The Corporation may require a local government requesting an expenditure extension to receive technical assistance through the Catalyst program.

(c) If funds remain unexpended after the original or extended deadline, the County or eligible municipality will be deemed to be in non-compliance and funds will be subject to recapture by the Corporation.

(d) SHIP local housing distribution funds may be used:

To implement the local housing assistance plan and incentive strategies that create or preserve affordable housing,
To supplement Corporation programs,
To provide local match to obtain federal housing grants or programs, such as HOME, established by 24 CFR, Part 92; and,
To further the housing element of the local government comprehensive plan adopted pursuant to Section 163.3184, F.S., specific to affordable housing.

(2) At least sixty-five percent of each local government’s local housing distributions must be used for Home Ownership Activities. The expenditure of program income is exempt from this requirement.

(3) At least seventy-five percent of each local government’s local housing distributions must be used for construction, rehabilitation or emergency repairs of affordable, Eligible Housing. The expenditure of program income is exempt from this requirement. Construction, rehabilitation, or emergency repairs must be completed either within one year immediately preceding the date of conveyance of title (i.e., closing) or within 24 months of the close of the applicable State fiscal year to satisfy the Expenditure requirement, unless otherwise extended by the Corporation. For purposes of this rule, SHIP recipients may rely on the following expenditures to be considered construction, rehabilitation or emergency repair costs:

(a) Those hard costs which are typically or customarily treated as construction costs by institutional lenders;

(b) Payment of impact fees;

(d) Construction soft costs such as engineering studies and appraisals, if directly related to housing construction, rehabilitation or emergency repairs;

(e) Relocation costs associated with rehabilitation of the residence usually occupied by a tenant or home owner; and,

(f) Financing, or “buy-down” costs, if directly attributable to assisting eligible persons to own a home or obtain rental occupancy (e.g., security and utility deposit assistance) in a home or unit that has obtained a certificate of occupancy in the 12-month period immediately preceding the contract for sale and purchase or has never been occupied or lease of the premises. When used to purchase an existing housing unit, closing costs and down payment assistance will be considered toward fulfilling the 75 percent construction requirement only if the housing unit receives rehabilitation. Any other costs may be submitted to the Corporation for review and approval.

(4) At least 20 percent of each local government’s local housing distribution must be used to serve persons with special needs as defined in Section 420.0004, F.S. A local government must meet this requirement through existing approved strategies in the local housing assistance plan or submit a new local housing assistance plan strategy for this purpose. The first priority of these special needs funds must be to serve persons with developmental disabilities as defined in Section 393.063, F.S., with an emphasis on home modifications, including technological enhancements and devices, which will allow homeowners to remain independent in their own homes and maintain their homeownership.

(5) A county or eligible municipality may spend up to 20 percent of the funds made available in each county and eligible municipality from the local housing distribution for manufactured housing as referenced in Section 420.9075(5)(c), F.S.

(6) A county or eligible municipality may spend funds to provide ongoing rent subsidies for:

(a) Security and utility deposit assistance;

(b) Eviction prevention not to exceed 6 months’ rent; and,

(c) A rent subsidy program for very-low-income households with at least one adult who is a person with special needs as defined in Section 420.0004, F.S., or is homeless as defined in Section 420.621, F.S. The period of rental assistance may not exceed 12 months for any eligible household.

(7) The Corporation shall review and approve expenditures for the following categories as Administrative Expenditures:

(a) Salaries of persons directly responsible for preparation of the plans or reporting required as part of the administration of the local SHIP program. The salary allocated to SHIP Administrative Expenditures of any employee shall reflect activities involving administration of the SHIP program, but no SHIP program funds are permitted to be expended for the administration of activities not involving SHIP funds;

(b) Office expenditures affiliated with the administration of the local SHIP program;

(c) Studies conducted by the county or eligible municipality or by consultants selected by the county or eligible municipality to provide data on affordable housing need and demand in the area; and,

(d) Expenditures related to travel, training, education, and public information initiatives necessary for the administration of the SHIP program.

(8) Additional Expenditures detailed in the local housing assistance plan that do not fit in these categories shall be analyzed by the Corporation, which shall make a determination as to whether the proposed expenditures shall be approved as Administrative Expenditures or Project Delivery Costs.

(9) Small counties and eligible municipalities receiving a local housing distribution of up to $350,000 may use up to 10 percent of program income for administrative Expenditures.

(10) The balance of the local housing distribution funds and other funds deposited into the local housing assistance trust fund must be used for housing production and finance activities, including: financing preconstruction activities, financing the purchase of existing units, providing rental housing, and providing home ownership training or counseling to prospective home buyers and owners of homes assisted through the local housing assistance plan.

(11) The sales price or value of new or existing homes which are sold or rehabilitated under the SHIP Program shall not exceed 90 percent of the average area purchase price in the statistical area in which the housing is located. The local government at its discretion may set the sales price or value below the 90 percent benchmark. The maximum area purchase price shall not exceed the limit established by the United States Department of Treasury or that calculated in accordance with Section 420.9075(5)(f), F.S.

(12) Loans issued using local housing distribution funds deposited to the local housing assistance trust fund may not have terms exceeding 30 years, except for Deferred Payment Loans or Forgivable Loans that extend beyond 30 years which continue to serve eligible persons.

(13) All units constructed, rehabilitated, or otherwise assisted with local housing distributions provided from the local housing assistance trust fund must be occupied by eligible persons as defined in Section 420.9071(10), F.S. The remainder may be reserved for eligible sponsors that will serve eligible persons.

(14) Monthly mortgage payments, including taxes and insurance, and monthly rental payments must be affordable for very low, low- and moderate-income persons and households.

(15) Rental units constructed, rehabilitated or otherwise assisted from the local housing assistance trust fund must be monitored annually by the local government, or to the extent another government entity or Corporation program provides periodic monitoring, the local government may rely on that entity’s monitoring for 15 years or the term of assistance, whichever is longer, for compliance with tenant income and affordability requirements, except as referenced in Section 420.9075(4)(e), F.S. In determining the maximum allowable rents, 30 percent of the applicable income category divided by 12 months shall be used based on the number of bedrooms. A one-person household shall be used for an efficiency unit, and for units with separate bedrooms, one and one-half persons per bedroom shall be used. A rental limit chart based on the above calculation adjusted for bedroom size will be provided to the local governments by the Corporation annually.

(16) All Loans and Grants for units constructed, rehabilitated or otherwise assisted from the local housing assistance trust fund shall be subject to recapture requirements as described by the county or eligible municipality in its local housing assistance plan. Any strategy proposed that will award funds as a Grant without any recapture requirements shall be submitted to the Corporation denoted as a Grant as part of the local housing assistance plan for approval by the Corporation.

(17) Developers receiving assistance from both SHIP and the Low-Income Rental Housing Tax Credit (LIHTC) Program shall be required to comply with the income, affordability and other LIHTC requirements. Similarly, any units receiving assistance from SHIP and other federal, State or local programs shall be required to comply with any requirements specified by the other program in addition to SHIP program requirements. In the event both programs have restrictions on the same issue, the more restrictive regulation shall take precedence. If one program is silent on an issue, the program with a regulation on the issue shall apply.

(18) The local government may require that housing units receiving assistance from local housing distribution funds deposited to the local housing assistance trust fund be located within the boundaries of the local government’s jurisdiction which has been approved for receipt of local housing distribution funds.

(19) Local housing distribution funds deposited to the local housing assistance trust fund shall not be used as a pledge of the Debt Service on bonds.

(20) Pursuant to Section 420.9073(5), F.S., in the event of a housing related disaster declared by an Executive Order of the President or Governor, counties and eligible municipalities impacted by the disaster and included in the Executive Order may request funding for activities described in their local housing assistance plans or under the disaster strategy. Requests for additional funds shall be submitted in writing and shall include the name of the local government and amount of funds requested and a schedule of when the funds being requested are to be expended. The request shall also include the number of households to be assisted, addresses, damage assessment performed by FEMA, the Department of Emergency Management, or other local agency performing disaster assessments and dollar estimate of repairs. Disaster funds shall be disbursed to local governments based on demonstrated need pending availability of funds. Counties and eligible municipalities receiving additional funds for disaster that have unencumbered funds shall expend the unencumbered funds before requesting disaster funds. Disaster activities shall be included in the Annual Report submitted by local jurisdictions by September 15 following the close of the fiscal year.

(21) Pursuant to Section 420.9073(6), F.S., counties and eligible municipalities may request funds to be used for the purchase of properties subject to a SHIP lien on which foreclosure proceedings have been initiated. Counties and eligible municipalities receiving these funds shall repay these funds to the Corporation no later than the expenditure deadline for the fiscal year in which the funds were expended. Any funds not repaid shall be withheld from the subsequent year’s distribution. Requests for these funds shall be submitted in writing and shall include the name of the local government, amount of funds requested, address of property(ies) being acquired, cost of purchase, amount of existing SHIP subsidy and a schedule of when the funds being requested are to be expended. These funds will be disbursed to local governments on a first come, first served basis pending availability of funds.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9072 FS. History–New 11-26-92, Amended 2-9-94, 12-28-94, 1-6-98, Formerly 9I-37.007, Amended 12-26-99, 9-22-03, 11-5-06, 2-24-08, 11-22-09, 5-23-17.

Fla. Admin. Code R. 67-37.008 Local Housing Assistance Trust Fund

(1) Amounts on deposit in each local housing assistance trust fund shall be invested as permitted by law for the local housing distribution funds of the applicable local government(s). All investment earnings shall be retained in such fund and used for the purposes thereof.

(2) The local housing assistance trust fund for all local governments including interlocal entities shall be separately stated as a special revenue fund in a county’s or eligible municipality’s audited financial statements. Electronic of such audited financial statements or a hyperlink to the webiste where the report is posted shall be transmitted annually to the Corporation no later than June 30th of the following state fiscal year. In addition to providing audited financial statements, all participating jurisdictions must provide evidence of compliance with the Florida Single Audit Act, as referenced in Sections 215.97(7) and (8), F.S.

(3) All Expended funds reported on the SHIP Annual Report shall be reconciled to the general ledger for each State fiscal year prior to submission of the SHIP Annual Report.

(4) In addition to the Annual Report requirements outlined in Section 420.9075(10), F.S., local governments shall submit information required by the Corporation on the Annual Report for:

(a) Foreclosure rates on SHIP loans;

(b) Administrative Expenditures separately stated for the costs of the local government and any Sub-Recipients administering the program;

(c) Total Recaptured Funds and program income separately stated for event type (foreclosure, sale of property, refinance);

(d) Total amount of unexpended funds that will be carried forward to the next SHIP fiscal year;

(e) A list of Sub-Recipients that administer any portion of the SHIP program. The list shall include name of person or organization, business type, a description of the strategies and responsibilities for each sub-recipient or consultant;

(f) Tracking of Persons with Special Needs; and,

(g) Responses to requests for information from the Legislatuure or Governor’s office.

(5) Annual Reports shall be submitted to the Corporation electronically using the SHIP Annual Report system. The SHIP Annual Report system can be accessed at www.floridahousing.org.

(6) Local governments that have had an audit, review or investigation involving SHIP funds shall send the Corporation a copy of any related report within 10 days of the issuance of such report.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9075(5) FS. History–New 11-26-92, Amended 2-9-94, 1-6-98, Formerly 9I-37.008, Repromulgated 12-26-99, Amended 9-22-03, 1-30-05, 11-5-06, 2-24-08, 11-22-09, 5-23-17.

Fla. Admin. Code R. 67-37.010 Local Affordable Housing Advisory Committees and Incentive Strategies

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.907, 420.9076 FS. History–New 2-9-94, 1-6-98, Formerly 9I-37.010, Amended 12-26-99, Repromulgated 9-22-03, Amended 2-24-08, 11-22-09, Repealed 5-23-17.

Fla. Admin. Code R. 67-37.011 Interlocal Entities

(1) The interlocal agreement shall specify whether a single report for all jurisdictions or individual Annual Reports for each participating local government shall be submitted pursuant to Section 420.9075(10), F.S.

(2) Eligible municipalities that intend to become a member of an established interlocal entity must:

(a) Adopt an ordinance that creates the affordable housing advisory committee, establishes responsibility for plan administration and, if applicable, establishes the local affordable housing trust fund; and,

(b) Adopt by resolution one local housing assistance plan and adopt by resolution the appointments to the advisory committee.

(3) All members of the existing interlocal entity must adopt by resolution an amendment to the local housing assistance plan to include the new eligible municipality.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9072(5) FS. History–New 11-26-92, Amended 2-9-94, 1-6-98, Formerly 9I-37.011, Amended 12-26-99, 9-22-03, 2-24-08, 5-23-17.

Fla. Admin. Code R. 67-37.019 Compliance Monitoring for Housing Developed With SHIP Local Housing Distribution Funds

(1) The local government staff or entity with administrative authority for a local housing assistance plan shall maintain a financial tracking system that ensures that the local housing distribution funds disbursed from the local housing trust fund are expended in accordance with the set-aside requirements in Rule 67-37.007, F.A.C., within deadlines established in paragraphs 67-37.005(5)(b) and (c), F.A.C., and in compliance with Section 420.9075, F.S. Failure by the local government staff or entity with administrative authority to properly track SHIP funds or reconcile the funds to the general ledger shall result in the local government being deemed in non-compliance with the SHIP program. In this circumstance, the local government or administrative entity shall be required to receive technical assistance through the Catalyst program.

(2) The combined household Annual Gross Income of an applicant who is applying as an owner/occupant of a residence shall be verified and certified by the SHIP program administrator or designee using one of the following methods:

(a) Section 8 housing assistance payments programs in 24 C.F.R. part 5, or

(b) Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 for individual federal annual income tax purposes.

(3) Income shall be calculated by annualizing verified sources of income for the household as the amount of income to be received in a household during the 12 months following the effective date of the determination. Whichever income verification and certification method is used, the Annual Gross Income, as defined in Section 420.9071(4), F.S., must be used and the SHIP Program income limits cannot be exceeded. SHIP funds Expended on households that are determined to not be income qualified through a compliance monitoring or audit shall be repaid in full to the local housing trust fund from non-SHIP funds to be reallocated to an eligible SHIP activity. In this circumstance, the local government or administrative entity may be required to receive technical assistance through the Affordable Housing Catalyst Program.

(4) The local government staff or entity with authority for administering a local housing assistance plan assisting rental developments shall monitor annually, or to the extent another government entity or Corporation program provides periodic monitoring, the local government may rely on that entity’s monitoring to determine tenant eligibility and the amount of subsidy using the same guidelines as specified at subsection (2), above, annually for 15 years or the term of assistance, whichever is longer. The Corporation shall monitor the activities of the local governments to determine compliance with program requirements as defined in Section 420.9075(4)(e), F.S.

(5) The local government staff or entity with administrative authority for a local housing assistance plan shall provide documentation to the Corporation upon request that details:

(a) Permits, as defined in Sections 163.3164(15) and (16), F.S., for affordable housing projects are expedited to a greater degree than other projects; and,

(b) There is an ongoing process for review of local policies, ordinances, regulations, and plan provisions that increase the cost of housing prior to their adoption.

(6) The Corporation, or any duly authorized representative shall be permitted to inspect the local housing assistance plan, advertisements, applications, income verifications and certifications, plan participation contracts, financial records, tracking system records, construction cost verification including receipts and contracts, rental development annual reviews, Eligible Sponsor and Sub Recipient reviews, Eligible Sponsor and Sub Recipient award lists, SHIP fund recipient lists, and any other applicable documents at any reasonable time with or without notice. Such records shall be maintained within the participating county or eligible municipality at a place accessible to the Corporation staff or its designated monitoring agent.

(7) Subsequent to a local government SHIP program being monitored by the Corporation or its designated agent and receiving a copy of the compliance monitoring report, the local government shall submit a written response to any findings or observations documented in the monitoring report to the Corporation and the designated monitoring agent. The required response shall be submitted within 30 days and shall include an explanation and/or remedy for each item in the compliance monitoring review, including:

(a) An explanation of the plan for correcting the issue including changes in policies, procedures, staff responsibilities, technical assistance and training.

(b) For physical inspection findings or observations, an explanation of any corrective work that will be completed to address the findings or observations.

(d) A plan for repayment of ineligible expenses, if any is required.

(8) If the Corporation issues a written report pursuant to Section 420.9075(13)(a), F.S., finding that an eligible jurisdiction has violated program criteria, the Corporation shall:

(a) Submit such report to the Executive Office of the Governor at which time the distribution of program funds to the county or eligible municipality shall be suspended, or

(b) Require the local government to work with technical assistance provider through the Catalyst program, to develop a corrective action plan (CAP).

The CAP shall be submitted to the Corporation within 60 days of the date of the letter from the Corporation notifying the eligible jurisdiction of the pattern of violation.
The CAP must describe the proposed corrective action for each violation and how the correction actions will be implemented within 3 months of an approval of the CAP by the Corporation.
The Corporation shall have 30 days to review and approve or recommend changes to the CAP. Upon approval of the CAP, any undisbursed funds due to the local government shall be distributed.

(9) Projects receiving assistance from the local housing assistance plan and from other State or federal programs that may have conflicting verification and certification requirements, shall comply with requirements of the most restrictive program.

(10) Any local government receiving SHIP funds that administers any portion of the SHIP program through a contracted Sub-Recipient shall bear responsibility for actions of the Sub-Recipient and shall monitor all Sub-Recipients to insure compliance is maintained on all SHIP funded activities. The required contract between the local government and Sub-Recipient shall detail the policies and procedures that shall be adhered to in the management of the SHIP activities.

(11) Any contract or document establishing the relationship between a SHIP eligible local government and an organization that is a Sub-Recipient receiving SHIP funds shall contain the standard audit language on Form DFS-A2-CL (Effective 7/05) in the document as required by the Florida Single Audit Act, Section 215.97, F.S.

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.9075 FS. History–New 2-24-08, Amended 11-22-09, 5-23-17.

Chapter 67-38 PREDEVELOPMENT LOAN PROGRAM

Fla. Admin. Code R. 67-38.001 Purpose

The purpose of the Predevelopment Loan Program is to provide financial and technical assistance to eligible Applicants for predevelopment related activities associated with the development of affordable single family home ownership units and multi-family rental housing.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.523 FS. History–New 2-3-05.

Fla. Admin. Code R. 67-38.002 Definitions

(1) “Act” means the Florida Housing Finance Corporation Act as found in Chapter 420 Part V, F.S.

(2) “Affiliate” means any person or entity that, (i) directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant, (ii) serves as an officer or director, agent, employee, or any business entity or person associated with the Applicant in the furtherance of a business venture for which the Applicant is applying for one or more of the Corporation’s programs, or (iii) is the spouse, parent, child, sibling, or relative by marriage of a person or entity described in (i) or (ii), above.

(3) “Applicant” means any person or legally formed entity that is seeking a loan or funding from the Corporation by submitting an Application for one or more of the Corporation’s programs.

(4) “Application” means the forms and exhibits created by Florida Housing for the purpose of providing the means to apply for one or more of the Corporation’s programs.

(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 Corporation’s 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) 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) “Board of Directors” or “Board” means the Board of Directors of the Corporation.

(7) “Community-Based Organization” or “Not-For-Profit Organization” means any group incorporated under Chapter 617, F.S., to provide housing and other services on a not-for-profit basis, and which is acceptable to federal and state agencies and financial institutions as a provider of affordable housing.

(8) “Compliance Period” means the period of time that the Development shall conform to all set-aside requirements as described in this rule chapter and agreed to by the Applicant in the Application.

(9) “Contact Person” means the person with whom the Corporation will correspond concerning the Application and the Development. This person cannot be a third-party consultant.

(10) “Corporation” or “Florida Housing” means the Florida Housing Finance Corporation.

(11) “Credit Underwriter” means the independent contractor under contract with the Corporation having the responsibility of providing stated credit underwriting services.

(12) “Credit Underwriting” means an in-depth analysis by the Credit Underwriter of all documents submitted in connection with an Application.

(13) “Credit Underwriting Report” means a report that is a product of Credit Underwriting.

(14) “Developer” means an individual, association, corporation, joint venture, or partnership which possesses the requisite skill, experience and credit worthiness to successfully produce affordable housing.

(15) “Development” means any work or improvement located in the state, including real property, buildings, and any other real and personal property, designed and intended for the primary purpose of providing decent, safe, and sanitary residential housing for persons or families, whether new construction, the acquisition of existing residential housing, or the remodeling, improvement, rehabilitation, or reconstruction of existing houses, together with such related non-housing facilities as the Corporation determines to be necessary, convenient and desirable.

(16) “Development Plan” or “Form TAP 1215” (Rev 11/09) 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 the 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) “Development Site” means the land for the Development, as defined by the legal description in the Development Plan and the documents evidencing or securing the Loan.

(18) “Farmworker” means a laborer who is employed on a seasonal, temporary, or permanent basis in the planting, cultivating, harvesting, or processing of agricultural or aquacultural products and who derived at least 50% of her or his income in the immediately preceding 12 months from such employment. “Farmworker” also includes a person who is retired as a laborer due to age, disability, or illness. In order to be considered retired as a farmworker due to age under this rule chapter, a person must be 50 years of age or older and must have been employed for a minimum of 5 years as a farmworker before retirement. In order to be considered retired as a farmworker due to disability or illness, a person must (i) establish medically that she or he is unable to be employed as a farmworker due to that disability or illness and (ii) establish that she or he was previously employed as a farmworker.

(19) “HUD” means the United States Department of Housing and Urban Development.

(20) “Invitation to Participate” means a letter sent to the Applicant indicating the Development has been selected to receive technical assistance which shall be signed and returned with the initial commitment fee prior to receiving technical assistance.

(21) “LURA” or “Land Use Restriction Agreement” means an agreement between the Corporation and the Applicant which sets forth the set-aside requirements and other Development requirements under a Corporation program.

(22) “Maturity Date” means the established date the loan is due for payment.

(23) “Mortgage” means Mortgage as defined in Section 420.503, F.S.

(24) “Outstanding Loan” means a PLP Loan approved by the Board which has not been repaid or de-obligated by the Developer.

(25) “Public Housing Authority” means a public housing authority established pursuant to Chapter 421, F.S.

(26) “PLP” or “Predevelopment Loan Program” means the Predevelopment Loan Program established by the Act and this rule chapter.

(27) “PLP Loan” means a direct loan from the Predevelopment Loan Program.

(28) “Principal” means an Applicant, any general partner of an Applicant, and any officer, director, or any shareholder of any Applicant or shareholder of any general partner of an Applicant.

(29) “Rehabilitation” means to bring a Development back to its original state, or to bring back to its original state with added improvements with limitations as specified by the program or programs which provide construction or permanent financing to the Development.

(30) “Servicing and Compliance Monitoring Fees” means fees associated with the review and processing of requests for disbursement of funds, inspections and the monitoring of Developments.

(31) “Set-Aside” means the percentage of units within a Development that shall be reserved as affordable at or below the specified AMI to income qualified persons or households throughout the Compliance Period as outlined herein.

(32) “Technical Assistance Provider” or “TAP” means an independent contractor retained by the Corporation to provide technical assistance services.

(33) “Technical Assistance” means assistance to Applicants via telephone, through on-site visits and by responses to oral and written inquiries from Applicants throughout the entire Predevelopment process and to provide such other services as agreed to by the Technical Assistance Provider and the Corporation.

(34) “Threshold Requirements” means the requirements an Applicant shall meet as identified in the Application Package in order to receive an Invitation to Participate in the Predevelopment Loan Program.

(35) “Website” means the Corporation’s website, the Universal Resource Locator (URL) for which is www.floridahousing.org.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 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, 11-22-09.

Fla. Admin. Code R. 67-38.0026 General Program Requirements and Restrictions

(1) An Applicant may only apply for funding through the Predevelopment Loan Program if it is a legally formed entity that is:

(a) Any unit of government,

(b) A Public Housing Authority,

(d) A for-profit entity wholly owned by one or more qualified Not-For-Profit Organizations, or

(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) 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 for non-site acquisition; and,

(b) $500,000 for site acquisition (including good faith deposits applied to the sales price). The total PLP Loan amount shall not exceed $750,000.

(4) All funds from the PLP loan shall be expended on the eligible expenses outlined in Rule 67-38.008, F.A.C.

(5) Site acquisition cost shall be subject to approval of an assigned Credit Underwriter.

(6) 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 value of the Development Site as determined by appraisal dated within 12 months of receipt of the Application.

(7) For rental Developments:

(a) The Applicant must commit to Set-Aside a minimum of 20% of the completed rental units to be rented to persons or households whose income does not exceed 50% 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) Must set-aside the units for the duration of the Compliance Period. If the Development does not obtain construction or permanent financing from the Corporation and no Corporation funds remain in the Development, the Compliance Period shall be fifteen (15) years from the date the PLP Loan is paid off. If the Development obtains construction or permanent financing from other Corporation programs, then the most restrictive compliance requirements of the other Corporation programs shall be in effect and compliance monitoring shall be performed through those programs.

(8) For home ownership Developments:

(a) The Applicant must commit to sell a minimum of 50% of completed housing units to persons or households whose income does not exceed 80% of the area median income, as determined by HUD and adjusted by household size, for the metropolitan statistical area or county in which the individual homes are located, and sell the remaining housing units to persons or households whose income does not exceed 120% of the area median income; and,

(b) If the Development obtains construction or permanent financing from other Corporation programs, the Set-Aside(s) committed to by the Applicant under the particular Corporation program providing the additional funding shall be in effect.

(9) 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) If the Applicant is utilizing PLP funds to purchase the 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 Credit Underwriting fees, which is an eligible PLP expense.

(11) 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) 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.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.003, Amended 3-26-98, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.003 Application Submission Procedures

(1) At any time during the year, Applicants may submit an Application to the Corporation for PLP funding. An Applicant, Affiliate, limited partnership, or general partner thereof shall not have more than two (2) Outstanding Loans at any given time, without the prior written approval of the Corporation. In order for an applicant to be approved to have more than two Outstanding Loans, the Applicant shall submit a written request to the Corporation detailing the experience of all Developers and co-developers involved in the proposed Development(s) in producing affordable housing and a proposed plan for permanent or construction financing on the Development(s).

(2) All Applications delivered by hand shall be presented to Corporation staff to be inscribed with the time and date of receipt. Applications may also be mailed to the Corporation at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329. Applications mailed to the Corporation will be inscribed with the time and date received.

(3) Applications that do not contain the required information and documentation as set forth in the Application Package shall be determined to have not met Threshold Requirements.

(4) An original and two copies of the completed Application and attachments shall be submitted to the Corporation if the Applicant does not intend to utilize the PLP Loan, whole or in part, to acquire the Development Site. In the event, the Applicant does intend to utilize the PLP Loan, whole or in part to acquire the Development Site, then an original and three copies of the completed Application shall be submitted to the Corporation. The original Application shall contain original signatures on pages which specifically requests an original signature. Faxed, scanned, photocopied, or otherwise duplicated signatures shall not be considered acceptable within the original Application.

(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) Applications that propose to develop individual homeownership units shall be submitted separately from those that propose to develop multifamily rental units.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.003, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.004 Incomplete Applications and Rejection Criteria

(1) Each Application shall be reviewed by the Corporation to determine if the Application meets Threshold Requirements. If the Application fails to meet Threshold Requirements, the Corporation shall notify the Applicant of any additional or revised information or material that is required. The Applicant may continue to submit requested material until the Application is complete and meets Threshold Requirements. The Application shall not be placed in priority order or on a waiting list until such time that all information and documentation has been submitted and the Application is determined to have met Threshold Requirements.

(2) An Application shall be rejected if any of the following occurs:

(a) The Applicant/Application does not meet the requirements specified in the Act or this rule chapter.

(b) If the Board of Directors determines that any Applicant or any Affiliate of an Applicant:

Has engaged in fraudulent actions,
Has materially misrepresented information to the Corporation regarding any of its Developments, or within the current Application or in any previous applications for one or more of Florida Housing’s programs,
Has been convicted of fraud, theft, or misappropriation of funds,
Has been excluded from federal or Florida procurement programs,
Has been convicted of a felony,
Application is submitted for a Development which an application has previously been submitted and not withdrawn, or
Application is submitted for an ineligible purpose.

And that such action substantially increases the likelihood that the Applicant will not be able to produce quality affordable housing. The Applicant and any of the Applicant’s Affiliates, will be ineligible for funding or allocation in any program administered by the Corporation for a period of up to two years, which will begin from the date the Board of Directors makes such a determination. Such determination shall be either pursuant to a proceeding conducted pursuant to Sections 120.569 and 120.57, F.S., or as a result of a finding by a court of competent jurisdiction.

(3) If the Applicant, Principal, Affiliate, or Developer of the Applicant has any existing Developments participating in Corporation programs that are in non-compliance with the Code, this rule chapter or applicable Loan documents, and any applicable cure period has expired at the time of approval of the Development Plan, the requested allocation shall be denied, upon a determination by the Board that the non-compliance increases the likelihood that the Applicant will not be able to satisfy the terms of the Loan. The Applicant and Affiliates of the Applicant or Developer will be prohibited from participation in any Corporation programs for the subsequent cycle and continue until all of the Applicant’s Developments are in compliance.

(4) The Applicant fails to meet any Threshold Requirement specified in the Application Package.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.004, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.005 Application Evaluation and Award Guidelines

(1) PLP funding shall be available to Applicants whose Applications have met Threshold Requirements, on a first-come, first-served basis, pursuant to this rule chapter. Applications which propose to set-aside a minimum of 40% of the Development’s units for Farmworker residents shall receive priority over all other Applicants, provided the Applicant has also certified that they shall meet PLP minimum Set-Aside requirements.

(2) After the Application has been reviewed and determined to have met Threshold Requirements, using the factors specified in the Application Package and this rule chapter, staff shall determine whether sufficient funds are available to fund the PLP request.

(3) If the Application fails to meet Threshold Requirements or is missing important information, the Applicant shall be notified of the deficiencies in the Application and provided an opportunity to rectify any outstanding issues.

(4) If the Application is determined to have met Threshold Requirements; and,

(a) Funds are available, the Corporation shall issue an Invitation to Participate, or

(b) If funds are not available, Applicant will be placed on a waiting list, based on the date and time the Application was determined to have met Threshold Requirements until either;

Funds are available, at which time the Applicant will be issued an Invitation to Participate, or
Application is withdrawn.

(5) The Invitation to Participate letter shall be signed by the Applicant and returned to the Corporation within 20 calendar days from the date of the Invitation to Participate letter. If the executed Invitation to Participate letter is not received by the Corporation within 20 calendar days, the Invitation to Participate letter shall be withdrawn and the Applicant shall be so notified. The executed Invitation to Participate letter must be accompanied by an initial commitment fee as specified therein.

(6) Upon receipt of the executed Invitation to Participate letter and the Applicant’s initial commitment fee, the Corporation shall assign a Technical Assistance Provider. In the event that technical assistance has begun and it is determined that the initial commitment fee has not been paid or is returned for insufficient funds, Technical Assistance shall be discontinued until full payment is received and determined to be sufficient. If payment has not been received within seven days of notification to the Applicant, the Invitation to Participate letter shall be withdrawn and the Applicant shall be so notified.

(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 Applicant’s 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 Provider’s date of assignment 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 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) The Technical Assistance Provider shall submit a written recommendation with the Development Plan to the Corporation. Such recommendation should clearly indicate the Technical Assistance Provider’s findings regarding the status of the Development Plan and the requested PLP Loan amount. The Corporation may request additional information and or documentation necessary for the Application to meet Threshold Requirements prior to approval of the Development Plan. If such revisions are requested prior to approval of the Development Plan, the Corporation shall provide a deadline by which the revisions to the Application shall be made and submitted with the approval of the Technical Assistance Provider to the Corporation.

(10) Following the TAP and Corporation staff’s 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, Board approval is required. Any increase to the PLP Loan amount must comply with limits set forth in Section 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) 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) 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) 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) 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 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) 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.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.005, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.007 Terms of the PLP Loan

(1) The PLP Loan shall bear an interest rate of 1%.

(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) The PLP Loan shall be non-amortizing with principal and interest deferred until the Maturity Date. The Corporation is authorized to forgive such loan and thereby make a grant to the Applicant for any monies that are unable to be repaid due to the Applicant’s inability to obtain construction or permanent financing for the Development. The Corporation shall not forgive the portion of the PLP Loan, which is collateralized by a mortgage, pledged capital funds or other collateral approved to the Corporation to the extent such loan could be repaid from the sale of the mortgaged property or from other collateral securing the loan.

(4) The mortgage securing the PLP Loan shall be in a first or second lien position and shall not share priority with any other liens unless approved by the Board.

(5) With respect to rental Developments, the PLP Loan’s 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) 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) With respect to home ownership Developments, the PLP Loan’s Maturity Date shall be on the earlier of:

(a) On a prorated basis upon the sale of each home, upon the recommendation of the Credit Underwriter or Technical Assistance Provider and a partial release payment in an amount acceptable to the Credit Underwriter or Technical Assistance Provider and the Corporation, or

(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.

(7) The Corporation shall extend the term of the PLP Loan for an additional period if circumstances exist and if such extension would not jeopardize the Corporation’s security interest. Submission and approval of a request for an extension of the term of a PLP Loan shall be subject to the following:

(a) For an extension up to one year, the Developer shall submit, along with the TAP a written request detailing the progress of the Development, barriers to the Development’s progress and a revised timeline.

(b) An additional extension of up to one year requested at the conclusion of the initial approved one year extension shall require the recommendation of the Credit Underwriter or the Technical Assistance Provider as directed by the Corporation that an extension of the PLP Loan is likely to result in the successful completion of the Development; and,

A revised Development Plan, approved by the Technical Assistance Provider, reflecting the reasons for the extension and the tasks and activities to be completed during the extension period,
Evidence of the Applicant’s ability to complete the Development, and,
An alternate financing plan in the event the original financing source(s) withdraws.

(8) Prepayment of the PLP Loan shall be permitted without penalty.

(9) The Corporation may renegotiate and extend the PLP Loan. Such renegotiations shall be based upon:

(a) Documentation and certification by the Applicant that funds are not available to repay the Note upon maturity;

(b) A plan for the repayment of the loan at the new Maturity Date;

(d) Industry standard terms which may include amortizing loans requiring regularly scheduled payments of principal and interest. All loan renegotiation requests, including requests for extension, must be submitted in writing to the Director of Special Assets and contain the specific details of the renegotiation.

(10) Upon determination by the Board that other remedies are ineffectual or non-existent and that the best interest of the Corporation is served by acceleration of the PLP Loan. The PLP Loan shall be accelerated if any of the following occurs:

(a) Proceeds of the PLP Loan are used for any purpose not specified in the Development Plan, the documents evidencing or securing the PLP Loan, the Act or this rule chapter, or

(b) Sale, transfer, or conveyance of the Development without the prior written approval of the Corporation, as set forth in Rule 67-38.012, F.A.C.

(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 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 day of July and January for so long as funds are outstanding.

(12) The Corporation reserves the right to require an audit of Applicant’s accounts and records relating to the PLP Loan funds. If the Applicant is required to perform an audit of its accounts and records, a copy of the same shall be delivered to the Corporation within ten (10) days of receipt of thereof by the Applicant.

(13) The Applicant shall maintain all documents related to the Development, including copies of all contracts and performance bonds, during the term of the loan and for three years following the maturity of the PLP Loan as the same may be extended pursuant to this rule chapter.

(14) With respect to home ownership Developments, in order to assure that such Developments serve the target population the Credit Underwriter or the Corporation shall, prior to release of an individual lot within the Development Site, review appropriate documentation as necessary to determine the unit is being sold to an eligible purchaser.

(15) With respect to rental Developments, in order to assure that such Developments serve the target population and maintain the minimum Set-Aside requirements, in addition to the execution and recordation of the Land Use Restriction Agreement (LURA), all deeds conveying title to real estate that is improved with rental units shall contain restrictive covenants that encompass all of the units in the Development and that provide for the continued rental of the units to persons within the target population for the Compliance Period. For those Developments which have occupied units, or will have occupied units, prior to closing of the construction or permanent financing, the Servicer or the Corporation shall conduct a review and physical inspection prior to closing of the construction or permanent financing to assure that the Development meets the minimum Set-Aside requirements and provides the intended benefit to the target population pursuant to the Act. The Corporation reserves the right to monitor each Development funded under the Predevelopment Loan Program at any time after completion of the Development to assure continued compliance with the applicable provisions of this rule chapter.

(16) The loan shall not be assumable upon the sale, transfer or refinancing of the Development without the prior approval from the Board, which approval shall be conditioned upon a positive recommendation by the Technical Assistance Provider or Credit Underwriter.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.007, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.008 Eligible Uses for the Loan

(1) The proceeds of the Loan shall only be used for eligible expenses specified in the approved Development Plan.

(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 Provider’s written approval. All draw requests are submitted by the TAP to the Corporation.

(3) Eligible predevelopment expenses shall include the following if such expenses or services were required to be incurred or rendered prior to closing of construction or permanent financing:

(a) Market and feasibility analysis;

(b) Rezoning;

(d) Legal fees, except those associated with application preparation and submissions;

(e) Boundary survey;

(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 are not an eligible expense.

(g) Development consultant fees. Consultant fees incurred in connection with the submission of 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) Fees of the PLP Credit Underwriter;

(i) Customary, good faith or earnest money deposit for the acquisition of the Development Site;

(j) Commitment fees to secure construction or permanent financing;

(k) Biological and environmental assessments;

(l) Soil tests;

(m) Appraisals;

(n) Approved acquisition expenses in connection with the Development Site;

(o) Marketing expenses;

(p) Permitting/impact fees;

(q) Architectural/engineering fees;

(r) Fees in connection with a completion audit;

(s) Insurance fees;

(t) Connection fees; and,

(u) Capital needs assessment;

(v) Other fees as approved by Florida Housing.

(4) The Applicant shall be required to work with the Technical Assistance Provider to complete the predevelopment activities in a timely and satisfactory manner.

(5) Applicants may request use of PLP Loan funds for Development Site acquisition by providing to Florida Housing:

(a) Evidence that all other predevelopment expenses have been paid or appropriate funding for outstanding expenses have been reserved. If PLP funds are requested for eligible uses other than Development Site acquisition, those funds shall be made available after customary closing documents are executed. PLP funds for acquisition shall not be released until such time as this and the following requirements have been provided;

(b) A detailed explanation as to the necessity to acquire title;

(c) A recommendation from the Technical Assistance Provider that funding be provided for Development Site acquisition; and,

(d) A Credit Underwriting Report, which includes a recommendation from the Credit Underwriter that funds be disbursed for Development Site acquisition.

(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.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, 5-21-96. Formerly 9I-38.008, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 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, the Corporation will assign a Credit Underwriter to perform the Credit Underwriting Report.

(2) The assigned Credit Underwriter shall review the Application and Development Plan and perform the Credit Underwriting Report. In this Credit Underwriting Report, the Credit Underwriter shall:

(a) Analyze the Applicant’s Development costs, sources of funds and pro forma operating statement to ensure the Development’s feasibility;

(b) Prioritize tasks which must be accomplished prior to obtaining construction and permanent financing;

(c) Advise the Corporation as to the appropriateness of plans, and specifications and the budget for the predevelopment tasks and activities related to the Development; and,

(d) Make a determination as to the feasibility of the Development.

(e) Make a determination as to the eligibility and competence of the Applicant entity and all Principals of the Applicant.

(3) An appraisal of the proposed Development Site shall be required during the Credit Underwriting Report process. The Credit Underwriter shall choose an appraiser from the Credit Underwriter’s approved list of appraisers and order the appraisal of the Development.

(4) The Credit Underwriter shall consider the appraisal of the Development and other market data to determine if the market exists to support both the demographic and income restriction Set-Asides committed to within the Application.

(5) The Credit Underwriter may require additional information as is necessary to evaluate the Development Plan and make a determination as to the feasibility of the Development. If the Credit Underwriter requires additional clarifying materials in the course of the Credit Underwriting Report process, the Credit Underwriter shall request the materials from the Applicant and shall specify deadlines for submission of each such material. Failure to submit required information by the specified deadline, unless a written extension of time has been approved by the Corporation, shall result in the request for disbursement for site acquisition being denied.

(6) The Credit Underwriter shall complete and submit a written draft Credit Underwriting Report and recommendation to the Corporation within 80 calendar days from the date of assignment by the Corporation. The Technical Assistance Provider and the Applicant shall review the draft Report and provide written comments to the Corporation and Credit Underwriter within 72 hours of receipt. After the 72-hour review period, the Corporation shall provide comments on the draft Credit Underwriting Report and, as applicable, on the Applicant’s and Technical Assistance Provider’s comments, to the Credit Underwriter. The Credit Underwriter shall then review and consider the comments thereto and release the revised Report to the Corporation, the Technical Assistance Provider, and the Applicant. Any additional comments from the Applicant and Technical Assistance Provider shall be received by the Corporation and the Credit Underwriter within 72 hours of receipt of the revised Report. The Credit Underwriter shall provide to the Corporation a final Credit Underwriting Report which will address all comments made by the Applicant and the Technical Assistance Provider.

(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.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.010, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 67-38.011 Fees

(1) The following fees and charges pertaining to each Application shall be paid by the Applicant:

(a) A nonrefundable application fee as identified in the Application Package;

(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;

(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 Applicant’s PLP Loan repayment amount will be reduced by the full commitment fees paid provided the Applicant is in compliance with the PLP Rule;

(e) Servicing and Compliance Monitoring Fees shall be paid for multifamily rental Developments that obtain construction or permanent financing from sources other than Corporation programs. The total Servicing and Monitoring fee to be paid by the Applicant shall be submitted to the Corporation at the time of closing on the construction or permanent financing. The total Servicing and Monitoring fee is listed in the Application Package. For those Developments which obtain their construction or permanent financing from Corporation Programs, the Compliance Monitoring Fees shall be determined by the requirements of the particular program providing the financing in accordance with the rule chapter governing that particular program; and,

(f) All Credit Underwriting, Technical Assistance, Servicing and Compliance Monitoring Fees, extraordinary services and late fees shall be determined by contracts between the Corporation and the provider.

(2) Fees associated with the PLP Loan are part of Development costs and shall be included in the Development cost pro forma, if approved by the Technical Assistance Provider and Florida Housing.

(3) Failure to remit any of the required fees when due shall cause the Application to be disqualified from the PLP.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.011, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Fla. Admin. Code R. 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) Ten business days prior to each anticipated disbursement request under the Loan, including any disbursements anticipated at closing, the Applicant shall deliver to the Technical Assistance Provider all documentation required as set forth below;

(2) All draw 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 shall be accompanied by invoices, cancelled checks or other such documentation to evidence the amount of the draw request and eligibile Predevelopment activities. Additional draw requests shall not be processed until all required documentation on previous draw disbursements is received by the Corporation;

(3) Disbursements for eligible activities, conducted prior to being awarded predevelopment financing, qualify for reimbursement from PLP funds provided that the eligible Predevelopment activities were performed or completed no earlier than twelve months prior to the submission of the Application. Consideration of expenditures that pre-date more than twelve months prior to the Application submission date will be reviewed by Corporation staff on a case by case basis and will require approval by the TAP and the Corporation. Reimbursement for site acquisition which was completed prior to closing on the PLP loan shall not be allowed as a PLP expense unless otherwise recommended by the TAP and approved by Corporation staff and the Board.

(4) Before requests for disbursements under the loan are processed, the Applicant shall provide verification to the Technical Assistance Provider and the Corporation that the work for which payment is being requested has been performed satisfactorily and on schedule or that the expenses to be reimbursed have actually been incurred or will be incurred.

(5) In the event that the Applicant receives PLP funding, the Applicant shall 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.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, 5-21-96 Formerly 9I-38.014, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.

Chapter 67-39 FLORIDA AFFORDABLE HOUSING GUARANTEE PROGRAM

Fla. Admin. Code R. 67-39.002 Definitions

In addition to those terms defined below, capitalized terms shall have the meaning set forth in the Act.

(1) “Act” means Section 420.5092 (Florida Affordable Housing Guarantee Program), F.S.

(2) “Board” shall mean the Board of directors of the Corporation.

(3) “Credit Underwriter” means the independent third-party entity retained by the Qualified Lending Institution, subject to the prior approval of the Guarantor, to provide a recommendation regarding the credit-worthiness of a proposed financing of Eligible Housing and the Eligible Housing’s ability to achieve satisfactory projected cash flows. Such services should include a comprehensive analysis of the financial condition of the Obligor, the real estate, the economics of the financing, the ability of the Obligor and the development team to proceed and complete the proposed project and the evidence of need for affordable housing. The Credit Underwriter should determine a recommended amount of the obligation.

(4) “Eligible Persons” means one or more persons or a family whose total annual adjusted household income is less than 120 percent of the median annual adjusted gross income for households within the state, or 120 percent of the median annual adjusted gross income for households within the applicable metropolitan statistical area (MSA) or, if not within an MSA, within the county in which the person or family resides, whichever is greater.

(5) “Feasibility Study” means a study conducted by an independent third party selected by the Corporation to determine a range of appropriate levels of fees and charges for Guarantees in relation to different degrees of risk, as contemplated by the Act.

(6) “Financial Advisor” shall mean the person or entity retained by the Corporation to render financial advice with respect to the Guarantee Program.

(7) “Guarantee” means an Affordable Housing Guarantee, within the meaning of the Act.

(8) “Guarantee Program” means the Affordable Housing Guarantee Program created pursuant to the Act.

(9) “Guarantor” means the Corporation, acting in its capacity as guarantor under the Guarantee Program.

(10) “Obligor” means the entity that is the original borrower under a Qualified Obligation, and any successors and assigns that are approved by the Guarantor.

(11) “Principal” means any individual acting in their individual capacity or acting as president, vice president, treasurer, secretary, member of the board of directors or the legal or beneficial owner of 10% or more of any class of stock of a corporation which is a general partner of a limited partnership Obligor; or the individual or entity that is a general partner of a limited partnership that is the general partner of a limited partnership Obligor, or is a partner in a general partnership or joint venture acting alone or as a part of another entity that is an Obligor. With respect to a limited liability company either acting alone or as a part of another entity that is an Obligor, each manager and each member is a Principal. With respect to a registered limited liability partnership either acting alone or as a member of another entity that is an Obligor, each partner is a Principal. With respect to a trust either acting alone or as a part of another entity that is an Obligor, any individual or entity owning 10% or more of the beneficial interest in the trust is a Principal. A general contractor, management agent, architect/engineer, attorney that is not in any way related to or under common ownership with the Obligor or any Principal thereof are not considered Principals of the Obligor entity.

(12) “Program Documents” means those documents establishing the Guarantee and evidencing the security supporting the Guarantee, as set forth in Rule 67-39.010, F.A.C.

(13) “Qualified Lending Institution” means any bank, trust company, national bank, savings bank, state or federal savings and loan association, state or federal credit union, insurance company, private or public pension fund, philanthropic institution, Florida local housing finance authority, the Florida Housing Finance Corporation, in its capacity as a lender, or any other entity approved by the Corporation.

(14) “Qualified Obligation” means a contractual obligation which is made or purchased by a Qualified Lending Institution, and secured by one or more of the following:

(a) Residential Property which will provide eligible Housing, or

(b) Such other collateral as recommended by the Credit Underwriter or Financial Advisor as necessary to secure such obligation.

(15) “Residential Property” means any building, structure, unit thereof or unimproved real property, which is used or occupied, or is intended to be used or occupied, wholly or partly, as the residence of one or more Eligible Persons, including use or intended use for housing for the homeless. For the purposes of this part, residential Property shall exclude property used or intended to be used as an assisted living facility, as defined in Section 400.402(6), F.S., and property located in non-contiguous sites.

(16) “Servicer” means the entity, selected by the Qualified Lending Institution and approved by the Guarantor, to service the Qualified Obligation.

(17) “Trustee” means the entity acting as trustee for the holders of bonds secured by a pledge of rights under a Qualified Obligation.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 4-5-93, Amended 2-16-94, 2-6-97, Formerly 9I-39.002, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.0025 Guarantee Program

Action by the Board, acting in its capacity as executive body of the Guarantor, shall be necessary for the Guarantee Program to implement any of the following:

(1) Approve Qualified Lending Institutions;

(2) Authorize the execution of a Guarantee or Guarantees on terms which minimize the financial risk to the Guarantee Program while assuring that the project is financially feasible;

(3) Approve the issuance of commitments to guarantee any Qualified Obligation or aggregate of Qualified Obligations;

(4) Authorize entering into contracts, agreements or treaties of insurance regarding Qualified Obligations or aggregate of Qualified Obligations;

(5) Allocate funds to satisfy the Guarantor’s contractual obligations pursuant to the Program Documents under any Guarantee;

(6) Establish time limits in which a Qualified Obligation must be made or purchased in order to be eligible for a Guarantee;

(7) Establish the premium charges for its Guarantees in amounts determined to be no less than that suggested by the applicable Feasibility Study;

(8) Establish and levy such other charges and fees, including, fees for extension of time in which to close a Qualified Obligation unless the Board determines otherwise in writing in connection with applications for guarantee, guarantee commitments, contracts of guarantee and as are necessary to recover authorized reimbursable expenses under the Act;

(9) Modify, with respect to:

(a) Rate of interest associated with any Qualified Obligation for which a Guarantee has been issued;

(b) Time of payment of any installment of principal or interest, security or any other term, of any Qualified Obligation for which a Guarantee has been issued;

(c) The security for any Qualified Obligation, contract or agreement of any kind for which the Guarantee Program has issued a Guarantee or to which the Guarantee Program is party;

(d) Time limits established pursuant to subsection 67-39.025(6) F.A.C., or

(e) Other modifications requested or approved by the Obligor or Qualified Lending Institution or other party to the transaction.

(10) Foreclose on any Qualified Obligation in financial or technical default or commence any action to protect or enforce any rights conferred upon the Corporation and the Guarantee Program pursuant to any Guarantee of such Qualified Obligation or authorized by any documents provided as collateral for any Guarantee, or otherwise to acquire or take possession of any property pledged as collateral for any Qualified Obligation;

(11) Hold, manage, administer, lease, or sell any property conveyed to or acquired by the Guarantor;

(12) Authorize the payment, pursuit to final collection, compromise, settlement, collection, waiver or release any right, title, claim, lien or demand, however acquired, including any equity or right of redemption;

(13) Authorize the sale, at public or private sale, any mortgage, mortgage participation or other obligation held by the Guarantor or the Guarantee Program;

(14) Authorize the procurement of insurance against any loss in connection with property pledged as collateral for any Guarantee or property of the Guarantor and held for the benefit of the Guarantee Program;

(15) Enter into contracts related to the management of Guarantee Program resources, including any risk-sharing arrangements;

(16) Authorize staff to:

(a) Set the date and conditions on which offering materials to be utilized by a Qualified Lending Institution that reference the Guarantee Program and the proposed Guarantee may be released; and,

(b) Prohibit distribution of any offering materials in connection with a HUD risk-sharing transaction until the Guarantor has received the HUD firm approval letter, unless otherwise approved by the Board in writing;

(17) Authorize the establishment of such other contractual provisions as are necessary or incidental to the foregoing; and,

(18) Authorize the prioritization of issuance of Guarantees with respect to Qualified Obligations issued under the HUD Risk-Sharing Program over other Guarantees.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 1-8-02.

Fla. Admin. Code R. 67-39.003 Feasibility Studies

The Corporation shall retain an independent third party to perform a Feasibility Study. Such Feasibility Study must contemplate the specific project type proposed to be guaranteed before any Guarantee of a Qualified Obligation of such project type shall be issued. The Board must accept the Feasibility Study prior to the issuance of any Guarantee pursuant thereto.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 4-5-93, Amended 2-16-94, 12-26-95, 2-6-97, Formerly 9I-39.003, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.004 Eligibility Criteria for Qualified Obligations

To be eligible for a Guarantee, each Qualified Obligation must evidence, unless otherwise approved by the Board:

(1) Security for the proposed Qualified Obligation, including a mortgage on the real property, guarantees required from Principals or other parties, and a level of contributed equity satisfying the requirements recommended by the Credit Underwriter or Financial Advisor or otherwise acceptable to the Board;

(2) That the Obligor and the Principals thereof:

(a) Are credit-worthy;

(b) Are not currently in financial arrears or default to the Corporation or the Corporation’s servicer under any program or otherwise in noncompliance beyond any cure period contained under existing documents relating to any Corporation program; and,

(c) With respect to closings of Qualified Obligations that occur in 2002 or after, have not within the past five years been in financial arrears or default to any Qualified Lending Institution or its Servicer, or otherwise in noncompliance beyond any cure period contained in any loan documents related to any Qualified Obligation for which a Guarantee has been issued. Notwithstanding the above, if in the case of subsection (b) or (c), the Board determines that any financial arrearage or default does not materially adversely affect the ability of the Obligor and the Principals thereof to perform their obligations with respect to the proposed Qualified Obligation or the likelihood of their performing such obligations, then the Qualified Obligation will remain eligible for a Guarantee. With respect to subsection (b) or (c), above, noncompliance shall prohibit the issuance of a Guarantee only to the extent that the Board determines that such noncompliance substantially increases the likelihood of the Obligor and the Principals thereof not performing their obligations with respect to the proposed Qualified Obligation.

(3) Terms and provisions with respect to property insurance, repairs, alterations, payment of taxes, reserves and assessments, delinquency charges, default remedies, and additional security as are consistent with other similar Qualified Obligations for which a Guarantee has been issued or are deemed necessary by the Guarantor to address new problems or market situations and which are satisfactory to the Guarantor;

(4) Furtherance of the purposes of the Act and the Guarantee Program;

(5) That in the case of multifamily Residential Property, such Qualified Obligation is not a refinancing of existing permanent financing, except:

(a) Existing permanent financing for which a Guarantee has already been issued, or

(b) Refinancings associated with rehabilitation of the existing property in which:

Rehabilitation expenditures in connection with such acquisition equal at least 25% of the cost of acquiring such Residential Property,
A physical needs study conducted by an independent third party shows an expected useful life after rehabilitation in excess of the proposed term of the Qualified Obligation,
An unconditional performance and payment bond meeting the requirements of subsection 67-39.006(3), F.A.C., is obtained to support the rehabilitation; and,
An appraisal based on a market value approach showing a loan-to-value ratio with respect to the Qualified Obligation not in excess of 90% supports the credit underwriting report.

(6) That the proposed Eligible Housing will not:

(a) Be marketed to, attract and thereby materially displace residents from other affordable housing developments financed by the Corporation or guaranteed by the Guarantor located in the same submarket, provided that for such purposes the provision of only 4% low income housing tax credits by the Corporation shall not be deemed financing by the Corporation;

(b) Result in such concentration of affordable housing developments financed by the Corporation or by local housing finance authorities or guaranteed by the Guarantor in the given geographic area that either the ability to repay the Qualified Obligation is compromised or the purposes of the Act in providing Guarantees on a state-wide basis is not satisfied, or

(c) Result in such concentration of pre-lease-up Guarantee risk to a single Obligor or Principal that the likelihood of default on guaranteed Qualified Obligations is increased.

(7) That in the case of multifamily Residential Property for Qualified Obligations that close in 2002, other than Qualified Obligations consisting of a loan of tax-exempt bond proceeds from the Corporation designated in 2001 by the Corporation for funding or a Qualified Obligation consisting of a loan of bond proceeds from a Qualified Lending Institution which has submitted a completed and executed pre-application to the Guarantor with respect to the proposed Qualified Obligation prior to September 30, 2001, a favorable Credit Underwriter report indicating a minimum of 1.15x debt service coverage of the Qualified Obligation subject to the Guarantee. Notwithstanding the above, the existence of a favorable report of the Credit Underwriter does not obligate the Guarantor to issue a Guarantee;

(8) That no deed restrictions are imposed upon multifamily Residential Property pledged as security for any Qualified Obligation which restrict the marketability of the property in the event of foreclosure, unless otherwise approved by the Board in writing;

(9) Income limitations that are not in excess of the limitations set forth in the definition of “Eligible Persons” and that no additional rental limitations are imposed by the Qualified Lending Institution which would adversely affect the ability to repay the Qualified Obligation;

(10) That a final maturity of the Qualified Obligation not in excess of forty-two years from the date of closing, unless further limited by HUD regulations in connection with a HUD risk-sharing transaction, or, in the case of a rehabilitation financing, a final maturity equal to the lesser of forty-two years from the date of closing or 75% of the remaining useful life of the property as evidenced by a physical needs study prepared by an independent third party;

(11) That with respect to any Qualified Obligation of an Obligor which is a non-profit corporation or a limited liability company owned or controlled by a non-profit corporation:

(a) Such entity must provide at closing equity from low income housing tax credits or its own resources equal to at least 15% of total development cost, with no more than one-half of such equity comprised of subordinate loans or grants; and,

(b) The proposed Qualified Obligation will be credit underwritten and evaluated as being exempt from ad valorem taxation only to the extent the Obligor has provided an agreement evidencing such from the local property appraiser, in form and substance satisfactory to the credit underwriter and the Guarantor; and,

(12) That the Residential Property shall contain a maximum of 400 residential units. Any two-bedroom units shall be required to also have two full bathrooms.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 4-5-93, Amended 2-16-94, 12-26-95, 2-6-97, Formerly 9I-39.004, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.0045 Required Submissions for Qualified Lending Institutions

Prospective Qualified Lending Institutions must submit information, sufficient in detail to demonstrate the capacity to perform the functions and services necessary to adequately comply with the requirements contained in that entity’s Lender documents and the standard Guarantor documents. Information to be submitted must include a current audited financial statement prepared by an independent certified public accountant in accordance with generally accepted accounting principles, description detailing the institution’s experience in originating and servicing affordable housing loans, and listing and qualifications of key personnel within the institution’s affordable housing operation.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 1-8-02.

Fla. Admin. Code R. 67-39.005 Fees and Rates

(1) The Guarantor shall charge premiums and rates for the issuance of a Guarantee in amounts not less than that established in the applicable Feasibility Study.

(2) An application fee of .1 percent (.0010) of the total proposed qualified mortgage amount shall be paid by or on behalf of the Qualified Lending Institution at the time a proposed loan is submitted to the Guarantor for consideration for a Guarantee.

(3) A good faith deposit in the amount of $15,000 shall be required to be paid by the Obligor to the Guarantor prior to the earlier to occur of the distribution by counsel to the Guarantor of Guarantee documents or the approval of a proposed Guarantee by the Corporation’s Board of Directors. Such good faith deposit shall be applied at closing to pay a portion of the fees due counsel to the Guarantor and the initial Guarantee fee. In the event the proposed financing does not close, such deposit shall be applied toward the amount of the accrued but unpaid fee of Guarantor’s counsel and any other unpaid expenses of the Guarantee Program associated with such proposed Guarantee, and the remainder shall be returned to the applicant.

(4) A commitment fee of not less than .2 percent (.0020) of the stated principal amount of the Qualified Obligation shall be paid by or on behalf of the Qualified Lending Institution when a commitment to guarantee is issued by the Guarantor.

(5) The Qualified Lending Institution or the Obligor or Principals shall pay all expenses incurred in the course of processing a request for a Guarantee, regardless of whether a Guarantee is ever issued.

History

Rulemaking Authority 402.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 4-5-93, Amended 2-16-94, 12-26-95, 2-6-97, Formerly 9I-39.005, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.006 Contractual Provisions of Qualified Obligation Documents

The Corporation shall require that supporting documents for each Qualified Obligation contain contractual provisions to ensure payment of the Qualified Obligation. Such provisions shall include, unless otherwise approved by the Board:

(1) Rights of foreclosure or other means of obtaining the collateral.

(2) In the case of multifamily Residential Property, guarantees of completion, operating deficits and an environmental indemnity, effective as of the date of closing, and, if deemed necessary by the Credit Underwriter, the Financial Advisor or the Guarantor, a liquidity maintenance agreement. In the event an Obligor or Principal elects to satisfy such guarantees by means of an irrevocable letter of credit from a banking institution, separate letters of credit for each guarantee running co-terminously shall be required.

(3) In the case of multifamily Residential Property, an unconditional 100% performance and payment bond by a provider rated at least “A-” by A. M. Best & Co, with a financial size category of at least FSC VI.

(4) In the case of multifamily Residential Property financed through the issuance of tax-exempt bonds, 50% of the tax credit equity necessary for completion of construction being deposited prior to closing with the Qualified Lending Institution or Trustee, and all remaining tax credit equity necessary for completion of construction being paid in through the Trustee or Qualified Lending Institution. All equity required to complete construction must be under the control of the tax credit provider or syndicator as of the date of closing.

(5) In the case of multifamily Residential Property, any single change order in excess of $25,000 and all change orders that in the aggregate are in excess of $50,000 shall be subject to the Servicer’s and Corporation’s approval.

(6) In the case of multifamily Residential Property, a schedule of monthly payments of principal and interest due under the promissory note and a Guarantee premium schedule.

(7) In the case of multifamily Residential Property with respect to Qualified Obligations for which a Guarantee is issued beginning in 2002, other than the Qualified Obligations consisting of a loan of tax-exempt bond proceeds from the Corporation designated in 2001 by the Corporation for funding, a requirement that the amount established as a replacement reserve be automatically increased annually beginning in the seventh year after closing based on changes in the consumer price index, such increase to be subject to waiver or reduction in the event the Obligor provides a physical needs study prepared by an independent third party acceptable to the Guarantor evidencing such increase as excessive or unnecessary.

(8) The right to name and appoint a receiver for the property.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 4-5-93, Amended 2-16-94, 2-6-97, Formerly 9I-39.006, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.010 Program Documents

(1) All Program Documents shall be binding on all parties and shall fully describe the responsibilities of and remedies available to the signing parties. The guarantee policy or other agreement issued by the Guarantee Program shall establish the procedures to be followed by an obligee or other beneficiary of the Guarantee in the event of a default under the terms of any Qualified Obligation with respect to which a Guarantee has been issued.

(2) Separate Program Documents reflecting the terms of each Guarantee shall be prepared by the Guarantor.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 2-16-94, Amended 2-6-97, Formerly 9I-39.010, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.014 Guarantee Program Payments

Payments pursuant to or connection with any Guarantee may be made in a lump sum, or in partial payments made within such period of time as may be agreed to by the Guarantor. Such payments shall be payable solely and only from amounts held specifically for the benefit of the Guarantee Program. The Corporation shall not guarantee or issue a commitment to guarantee a Qualified Obligation if the balance of amounts held for the benefit of the Guarantee Program is less than the Guarantee Program reserve requirement.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 2-16-94, Amended 2-6-97, Formerly 9I-39.014, Amended 10-21-99, 1-8-02.

Fla. Admin. Code R. 67-39.015 Audit Requirement

At least once in each fiscal year the Corporation, including the Guarantee Program, shall be examined by an independent certified public accountant for the purposes of auditing its financial condition.

History

Rulemaking Authority 420.507(25), 420.5092(4) FS. Law Implemented 420.5092 FS. History–New 2-16-94, Formerly 9I-39.015, Amended 10-21-99, 1-8-02.

Chapter 67-43 STATE APARTMENT INCENTIVE LOAN/HURRICANE ANDREW RECOVERY AND REBUILDING PROGRAM

Fla. Admin. Code R. 67-43.002 Definitions

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.002, Repealed 2-8-21.

Fla. Admin. Code R. 67-43.005 Program Income Targeting

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.005, Repealed 2-8-21.

Fla. Admin. Code R. 67-43.006 Eligible Activities

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.006, Repealed 2-8-21.

Fla. Admin. Code R. 67-43.008 Terms and Conditions of Loans

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.008, Amended 11-17-03, Repealed 2-8-21.

Fla. Admin. Code R. 67-43.010 Construction Disbursements and Permanent Loan Servicing

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.010, Repealed 2-8-21.

Fla. Admin. Code R. 67-43.012 Fees

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.012, Repealed 2-8-21.

Chapter 67-45 FLORIDA HOME OWNERSHIP ASSISTANCE PROGRAM/DOWN PAYMENT ASSISTANCE LOAN PROGRAM

Fla. Admin. Code R. 67-45.001 Definitions

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS. History–New 8-7-95, Formerly 9I-45.001, Amended 12-26-99, 10-29-01, 12-7-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.002 Notice of Funding Availability

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088 FS. History–New 8-7-95, Formerly 9I-45.002, Amended 12-26-99, 10-29-01, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.003 General Program Restrictions

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088 FS. History–New 8-7-95, Formerly 9I-45.003, Amended 12-26-99, 12-7-03, 2-2-05, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.004 Application Procedures

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088(2) FS. History–New 8-7-95, Formerly 9I-45.004, Amended 12-26-99, 10-29-01, 12-7-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.005 Terms and Conditions of Loans

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS. History–New 8-7-95, Formerly 9I-45.005, Amended 12-7-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.006 Loan Processing

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088 FS. History–New 8-7-95, Formerly 9I-45.006, Amended 12-26-99, 10-29-01, 12-7-03, Repealed 6-23-26.

Fla. Admin. Code R. 67-45.007 Fees

History

Rulemaking Authority 420.507(4), (12), (23) FS. Law Implemented 420.507(19) FS. History–New 8-7-95, Formerly 9I-45.007, Amended 10-29-01, 12-7-03, Repealed 6-23-26.

Chapter 67-48 COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS SAIL/HOME/HC

Fla. Admin. Code R. 67-48.001 Purpose and Intent

The purpose of this rule chapter is to establish the procedures by which the Corporation shall:

(1) Address loan amounts, make and service mortgage loans for new construction or rehabilitation of affordable rental units under the State Apartment Incentive Loan (SAIL) Program authorized by Section 420.5087, F.S., and the HOME Investment Partnerships (HOME) Program authorized by Section 420.5089, F.S.; and,

(2) Address Competitive Housing Credit amounts and implement the provisions of the Housing Credit (HC) Program authorized by Section 42 of the IRC and Section 420.5099, F.S.

(3) This rule chapter shall be reviewed, and if necessary, repealed or renewed through the rulemaking process no later than five years from the effective date.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087, 420.5089(2), 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.001, Amended 11-9-98, Repromulgated 2-24-00, 2-22-01, Amended 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, Amended 3-30-08, Repromulgated 8-6-09, Amended 11-22-11, 10-9-13, 10-8-14, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, Amended 6-23-20, Repromulgated 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.002 Definitions

(1) “ACC” or “Annual Contributions Contract” means a contract between HUD and a Public Housing Authority containing the terms and conditions under which HUD assists in providing for development of housing units, modernization of housing units, operation of housing units, or a combination of the foregoing.

(2) “Act” means the Florida Housing Finance Corporation Act as found in Chapter 420, Part V, F.S.

(3) “Address” means the address number, street name and city or, at a minimum, the street name, closest designated intersection, and whether or not the Development is located within a city or in the unincorporated area of the county. If located within a city, include the name of the city.

(4) “Adjusted Income” means, with respect to a HOME Development, the gross income from wages, income from assets, regular cash or noncash contributions, and any other resources and benefits determined to be income by HUD, adjusted for family size, minus the deductions allowable under 24 CFR §5.611.

(5) “Affiliate” means any person that:

(a) Directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant or Developer;

(b) Serves as an officer or director of the Applicant or Developer or of any Affiliate of the Applicant or Developer;

(c) Directly or indirectly receives or will receive a financial benefit from a Development except as further described in Rule 67-48.0075, F.A.C., or

(d) Is the spouse, parent, child, sibling, or relative by marriage of a person described in paragraph (a), (b) or (c), above.

(6) “ALF” or “Assisted Living Facility” means a Florida licensed living facility that complies with Sections 429.01 through 429.54, F.S., and Chapter 58A-5, F.A.C.

(7) “Allocation Authority” means the total dollar volume of the state of Florida’s Housing Credit ceiling available for distribution by the Corporation and authorized pursuant to Section 42 of the IRC.

(8) “Applicable Fraction” means Applicable Fraction as defined in Section 42(c)(1)(B) of the IRC.

(9) “Applicant” means any person or legal entity of the type and with the management and ownership structure described herein that is seeking a loan or funding from the Corporation by submitting an Application or responding to a competitive solicitation pursuant to rule Chapter 67-60, F.A.C., for one or more of the Corporation’s programs. For purposes of Rules 67-48.0105, 67-48.0205 and 67-48.031, F.A.C., Applicant also includes any assigns or successors in interest of the Applicant. Unless otherwise stated in a competitive solicitation, as used herein, a ‘legal entity’ means a corporation, limited partnership or limited liability company legally formed as of the Application deadline.

(10) “Application” means the sealed response submitted to participate in a competitive solicitation for funding pursuant to rule Chapter 67-60, F.A.C.

(11) “Binding Commitment” means, with respect to a Housing Credit Development, an agreement between the Corporation and an Applicant by which the Corporation allocates and the Applicant accepts Housing Credits from a later year’s Allocation Authority in accordance with Section 42(h)(1)(C) of the IRC.

(12) “Board of Directors” or “Board” means the Board of Directors of the Corporation.

(13) “Building Identification Number” means, with respect to a Housing Credit Development, the number assigned by the Corporation to describe each building in a Housing Credit Development, pursuant to Internal Revenue Service Notice 88-91.

(14) “Calendar Days” means, the seven (7) days of the week.

(15) “Carryover” means the provision under Section 42 of the IRC and Rule 67-48.028, F.A.C., which allows a Development to receive a Housing Credit Allocation in a given calendar year and be placed in service by the close of the second calendar year following the calendar year in which the allocation is made.

(16) “Catchment Area” means the geographical area covered under a Local Homeless Assistance Continuum of Care Plan, as designated and revised as necessary by the State Office on Homelessness, in accordance with Section 420.6225, F.S.

(17) “CHDOs” or “Community Housing Development Organizations” means Community housing development organizations as defined in Section 420.503, F.S., and 24 CFR Part 92.

(18) “Commercial Fishing Worker” means Commercial fishing worker as defined in Section 420.503, F.S.

(19) “Commercial Fishing Worker Household” means a household of one or more persons wherein at least one member of the household is a Commercial Fishing Worker at the time of initial occupancy.

(20) “Competitive Housing Credits” or “Competitive HC” means those Housing Credits which come from the Corporation’s annual Allocation Authority.

(21) “Compliance Period” means a period of time that the Development shall conform to all set-aside requirements as described further in the rule chapter and agreed to by the Applicant in the Application.

(22) “Consolidated Plan” means the plan prepared in accordance with 24 CFR Part 91, which describes needs, resources, priorities and proposed activities to be undertaken with respect to certain HUD programs, including the HOME Program.

(23) “Contact Person” means the person with whom the Corporation will correspond concerning the Application and the Development. This person cannot be a third-party consultant.

(24) “Corporation” means the Florida Housing Finance Corporation as defined in Section 420.503, F.S.

(25) “Credit Underwriter” means the independent contractor under contract with the Corporation having the responsibility for providing stated credit underwriting services.

(26) “DDA” or “Difficult Development Area” means areas designated by the Secretary of Housing and Urban Development as having high construction, land, and utility costs relative to area median gross income in accordance with Section 42(d)(5)(B), of the IRC.

(27) “Department” means the Department of Commerce, formerly known as the Department of Economic Opportunity as defined in Section 420.503, F.S.

(28) “Developer” means any individual or legal entity which possesses the requisite skill, experience, and credit worthiness to successfully produce affordable housing as required in the Application. Unless otherwise stated in a competitive solicitation, as used herein, a ‘legal entity’ means a corporation, association, joint venturer, or partnership legally formed as of Application deadline.

(29) “Developer Fee” means the fee earned by the Developer.

(30) “Development” means Project as defined in Section 420.503, F.S.

(31) “Development Cash Flow” means, with respect to SAIL Developments as well as HOME Developments when the HOME Development is also at least partially financed with a Multifamily Mortgage Revenue Bond (MMRB) Loan (as defined in rule Chapter 67-21, F.A.C.), cash transactions of the Development as calculated in the statement of cash flows prepared in accordance with generally accepted accounting principles (“GAAP”), as adjusted for any cash transactions that are subordinate to the SAIL loan interest payment including any distribution or payment to the Applicant or Developer, Principal(s) of the Applicant or Developer or any Affiliate of the Principal(s) of the Applicant or Developer, or to the Developer or any Affiliate of the Developer, whether paid directly or indirectly, which was not expressly disclosed in determining the annual debt service coverage in the Board approved final credit underwriting report.

(32) “Development Cost” means the total of all costs incurred in the completion of a Development excluding Developer Fee, operating deficit reserves, and total land cost as typically shown in the Development Cost line item on the development cost pro forma.

(33) “Development Expenses” means, with respect to SAIL Developments as well as HOME Developments when the HOME Development is also at least partially financed with a MMRB Loan (as defined in rule Chapter 67-21, F.A.C.), usual and customary operating and financial costs, such as the compliance monitoring fee, the financial monitoring fee, replacement reserves, the servicing fee and the debt service reserves. As it relates to SAIL Developments as well as HOME Developments when the HOME Development is also at least partially financed with a MMRB Loan (as defined in rule Chapter 67-21, F.A.C.) and to the application of Development Cash Flow described in subsections 67-48.010(5) and (6), F.A.C., as it relates to SAIL Developments or in paragraph 67-48.020(3)(b), F.A.C., as it relates to HOME Developments, the term includes only those expenses disclosed in the operating pro forma on an annual basis included in the final credit underwriting report, as approved by the Board, and maximum of 20 percent Developer Fee per year.

(35) “Document” means electronic media, written or graphic matter, of any kind whatsoever, however produced or reproduced, including records, reports, memoranda, minutes, notes, graphs, maps, charts, contracts, opinions, studies, analysis, photographs, financial statements and correspondence as well as any other tangible thing on which information is recorded.

(36) “Domestic Violence” means Domestic violence as defined in Section 741.28, F.S.

(37) “Draw” means the disbursement of funds to a Development.

(38) “EHCL” or “EHCL Program” means the Elderly Housing Community Loan Program.

(39) “Elderly” means Elderly as defined in Section 420.503, F.S.

(40) “ELI Household” or “Extremely Low Income Household” means a household of one or more persons wherein the annual adjusted gross income for the Family is equal to or below the percentage of area median income for ELI Persons.

(41) “ELI Loan” means the loan made by the Corporation for the Applicant’s ELI Set-Aside commitment, based on terms and conditions outlined in a competitive solicitation.

(42) “ELI Persons” or “Extremely Low Income Persons” means Extremely low income persons as defined in Section 420.0004(9), F.S., or in a competitive solicitation.

(43) “ELI Set-Aside” or “Extremely Low Income Set-Aside” means the number of units designated to serve ELI Households.

(44) “Eligible Persons” means one or more natural persons or a family, irrespective of race, creed, national origin, or sex, determined by the Corporation to be of Low Income or Very Low Income, as further described in Rule 67-48.0075, F.A.C.

(45) “EUA” or “Extended Use Agreement” means, with respect to the HC Program, an agreement which sets forth the set-aside requirements and other Development requirements under the HC Program.

(46) “Executive Director” means the Executive Director of the Corporation.

(47) “Family” means a household composed of one or more persons.

(48) “Farmworker” means Farmworker as defined in Section 420.503, F.S.

(49) “Farmworker Household” means a household of one or more persons wherein at least one member of the household is a Farmworker at the time of initial occupancy.

(50) “Final Housing Credit Allocation” means, with respect to a Housing Credit Development, the issuance of Housing Credits to an Applicant upon completion of construction or Rehabilitation of a Development and submission to the Corporation by the Applicant of a completed and executed final cost certification process as required by Section 42, IRC.

(51) “Financial Beneficiary” means any Principal of the Developer or Applicant entity who receives or will receive any direct or indirect financial benefit from a Development except as further described in Rule 67-48.0075, F.A.C.

(52) “Financial Institution” means Lending institution as defined in Section 420.503, F.S.

(53) “Florida Keys Area” means all lands in Monroe County, except:

(a) That portion of Monroe County included within the designated exterior boundaries of the Everglades National Park and areas north of said Park;

(b) All lands more than 250 feet seaward of the mean high water line owned by local, state, or federal governments; and,

(54) “General Contractor” means a person or entity duly licensed in the state of Florida with the requisite skills, experience and credit worthiness to successfully provide the units required in the Application, and which meets the criteria described in Rule 67-48.0072, F.A.C.

(55) “Geographic Set-Aside” means the amount of Allocation Authority or funding which has been designated by the Corporation to be allocated for Developments located in specific geographical regions within the state of Florida.

(56) “HC” or “Housing Credit Program” means the rental housing program administered by the Corporation pursuant to Section 42 of the IRC and Section 420.5099, F.S., under which the Corporation is designated the Housing Credit agency for the state of Florida within the meaning of the following:

(a) Section 42(h)(7)(A) of the IRC;

(b) This rule chapter regarding Competitive Housing Credits; and,

(57) “HOME” or “HOME Program” means the HOME Investment Partnerships Program administered by the Corporation pursuant to 24 CFR Part 92 and Section 420.5089, F.S.

(58) “HOME-Assisted Unit” means the specific units that are funded with HOME funds. HOME units shall adhere to rent controls and income targeting requirements pursuant to 24 CFR §92.252.

(59) “HOME Development” means any Development which receives financial assistance from the Corporation under the HOME Program.

(60) “HOME Rental Development” means a Development proposed to be constructed or rehabilitated with HOME funds.

(61) “HOME Rent-Restricted Unit” means the maximum allowable rents designed to ensure affordability on the HOME-Assisted Units.

(62) “Homeless” means Homeless as defined in Section 420.621, F.S.

(63) “Housing Credit” means the tax credit issued in exchange for the development of rental housing pursuant to the following:

(a) Section 42 of the IRC;

(b) The provisions of this rule chapter regarding Competitive Housing Credits; and,

(64) “Housing Credit Allocation” means the amount of Housing Credits determined by the Corporation as necessary to make a Development financially feasible and viable throughout the Development’s Compliance Period pursuant to Section 42(m)(2)(A) of the IRC.

(65) “Housing Credit Development” means the proposed or existing rental housing Development(s) for which Housing Credits have been applied or received.

(66) “Housing Credit Extended Use Period” means, with respect to any building that is included in a Housing Credit Development, the period that begins on the first day of the Compliance Period in which such building is part of the Development and ends on the later of:

(a) The date specified by the Corporation in the Extended Use Agreement, or

(b) The date that is the fifteenth anniversary of the last day of the Compliance Period, unless earlier terminated as provided in Section 42(h)(6) of the IRC.

(67) “Housing Credit Period” means with respect to any building that is included in a Housing Credit Development, the period of 10 years beginning with:

(a) The taxable year in which such building is placed in service, or

(b) At the election of the Applicant, the succeeding taxable year.

(68) “Housing Credit Rent-Restricted Unit” means, with respect to a Housing Credit Development, a unit for which the gross monthly rent shall not exceed 30 percent of the imputed income limitation applicable to such unit as committed to by the Applicant in its Application and shall be determined in a manner consistent with Section 42(g)(2) of the IRC.

(69) “Housing Credit Set-Aside” means the number of units in a Housing Credit Development necessary to satisfy Section 42(g) of the IRC and the percentage of units set-aside by the Applicant in the Application.

(70) “Housing Credit Syndicator” means a person, partnership, corporation, trust or other entity that regularly engages in the purchase of interests in entities that produce Qualified Low Income Housing Projects [as defined in Section 42(g) of the IRC].

(71) “Housing for the Elderly” or “Housing Community for the Elderly” means any housing community as defined in Section 420.503, F.S.

(72) “Housing Provider” means, with respect to a HOME Development, Local Government, consortia approved by HUD under 24 CFR Part 92, for-profit and Non-Profit Developers, and qualified CHDOs, with demonstrated capacity to construct or rehabilitate affordable housing.

(73) “HUD” means the United States Department of Housing and Urban Development.

(74) “IRC” means 26 CFR Section 42 and subsections 501(c)(3) and 501(c)(4) 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.

(75) “Lead Agency” means a Local Government or non-profit serving as the point of contact and accountability to the State Office on Homelessness with respect to the Local Homeless Assistance of Continuum of Care Plan, in accordance with Section 420.6225, F.S.

(76) “Local Government” means Local government as defined in Section 420.503, F.S.

(77) “Local Homeless Assistance Continuum of Care Plan” means a plan for developing and implementing a framework for a comprehensive and seamless array of housing and services to address the needs of homeless persons and persons at risk for homelessness, in accordance with Section 420.6225, F.S.

(78) “Low Income” means the Adjusted Income for a Family which does not exceed 80 percent of the area median income.

(79) “LURA” or “Land Use Restriction Agreement” means an agreement which sets forth the set-aside requirements and other Development requirements under a Corporation program.

(80) “Match” means non-federal contributions to a HOME Development eligible pursuant to 24 CFR Part 92.

(81) “Moderate Rehabilitation” means, with respect to the SAIL Program, Moderate rehabilitation as defined in Section 420.503, F.S.

(82) “Mortgage” means Mortgage as defined in Section 420.503, F.S.

(83) “Non-Competitive Housing Credits” means the Housing Credits which qualify to be used with Tax-Exempt Bond-Financed Developments and do not come from the Corporation’s annual Allocation Authority.

(84) “Non-Profit” unless otherwise set forth in a competitive solicitation, means a qualified non-profit entity as defined in Section 42(h)(5)(C), subsection 501(c)(3) or 501(c)(4) of the IRC and organized under Chapter 617, F.S., if a Florida Corporation, or organized under similar state law if organized in a jurisdiction other than Florida, to provide housing and other services on a not-for-profit basis, which owns at least 51 percent of the ownership interest in the Development held by the general partner or managing member entity, which shall receive at least 25 percent of the Developer Fee, and which entity is acceptable to federal and state agencies and financial institutions as a Sponsor for affordable housing, as further described in Rule 67-48.0075, F.A.C.

(85) “Note” means a unilateral agreement containing an express and absolute promise to pay to the Corporation a principal sum of money on a specified date, which provides the interest rate and is secured by a Mortgage.

(86) “PBRA” or “Project-Based Rental Assistance” means a rental subsidy through a contract with HUD or RD for a property.

(87) “Person with a Disability” means, pursuant to Section 3 of the Americans with Disabilities Act of 1990, as amended by the ADA Amendments Act of 2008, an individual to which both of the following apply:

(a) The individual has a physical or mental impairment that substantially limits one or more of the major life activities of such individual; and,

(b) The individual is currently or was formerly regarded as having an existing record of such an impairment.

(88) “Person with a Disabling Condition” means a person with a Disabling condition as defined in Section 420.0004(7), F.S.

(89) “Persons with Special Needs” means Person with special needs as defined in Section 420.0004(13), F.S.

(90) “PHA” or “Public Housing Authority” means a housing authority under Chapter 421, F.S.

(91) “Portfolio Diversification” means a distribution of SAIL and HOME Program loans to Developments in varying geographic locations with varying design structures and sizes and with different types and identity of Sponsors.

(92) “Preliminary Allocation” means a non-binding reservation of Housing Credits issued to a Housing Credit Development which has demonstrated a need for Housing Credits and received a positive recommendation from the Credit Underwriter.

(93) “Preservation” unless otherwise stated in a competitive solicitation, means Rehabilitation of an existing development that is at least 20 years old as of an Application Deadline in a competitive solicitation and has an active contract through one or more of the following HUD or RD programs: Sections 202 of the Housing Act of 1959 (12 U.S.C. §1701q), 236 of the National Housing Act (12 U.S.C. §1701), 514, 515, or 516 of the U.S. Housing Act of 1949 (42 U.S.C. §1484), 811 of the U.S. Housing Act of 1937 (42 U.S.C. §1437), or either has PBRA, as defined in this rule, or is public housing assisted through ACC. If funded through the Corporation, the Development must maintain at least the same number of PBRA or ACC units. Such developments must not have closed on funding from HUD or RD within the 20 years prior to an Application Deadline in a competitive solicitation where the budget was at least $10,000 per unit for rehabilitation in any year.

(94) “Principal” has the meanings set forth below and any Principal other than a natural person must be a legally formed entity as of the Application deadline:

(a) For a corporation, each officer, director, executive director, and shareholder of the corporation.

(b) For a limited partnership, each general partner and each limited partner of the limited partnership.

(d) For a trust, each trustee of the trust and all beneficiaries of majority age (i.e.; 18 years of age) as of Application deadline.

(e) For a Public Housing Authority, each officer, director, commissioner, and executive director of the Authority.

(95) “Project” or “Property” means Project as defined in Section 420.503, F.S.

(96) “QAP” or “Qualified Allocation Plan” means, with respect to the HC Program, the 2026 Qualified Allocation Plan which is adopted and incorporated herein by reference, effective upon approval by the Governor of the State of Florida, pursuant to Section 42(m)(1)(B) of the IRC and sets forth the selection criteria and the preferences of the Corporation for Developments which will receive Housing Credits. The QAP is available on the Corporation’s website under the Multifamily Programs link or by contacting the Housing Credit Program at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329, or from http://flrules.org/Gateway/reference.asp?No=Ref-19455.

(97) “QCT” or “Qualified Census Tract” means any census tract which is designated by the Secretary of Housing and Urban Development as having either 50 percent or more of the households at an income which is less than 60 percent of the area median gross income, or a poverty rate of at least 25 percent, in accordance with Section 42(d)(5)(B) of the IRC.

(98) “RD” or “Rural Development” means the Rural Development (RD), Rural Housing Service (RHS) agency, within the United States Department of Agriculture (USDA), or any successor agency, department, entity or instrumentality designated by law to administer the programs or exercise the powers of the USDA RD RHS.

(99) “Redevelopment” unless otherwise stated in a competitive solicitation means at least one of the following:

(a) A proposed Development that

Involves demolition of multifamily rental residential structures currently or previously existing;
Is at least 30 years old as of an Application Deadline in a competitive solicitation;
Either originally received financing or is currently financed through one or more of the following HUD or RD programs: Sections 202 of the Housing Act of 1959 (12 U.S.C. §1701q), 236 of the National Housing Act (12 U.S.C. §1701), 514, 515, or 516 of the U.S. Housing Act of 1949 (42 U.S.C. §1484), 811 of the U.S. Housing Act of 1937 (42 U.S.C. §1437), or has PBRA, as defined in this rule; and
New construction of replacement structures on the same site maintain at least the same number of PBRA units, or

(b) A proposed Development that

Involves demolition of public housing structures currently or previously existing on a site with a Declaration of Trust;
Is at least 30 years old as of an Application Deadline in competitive solicitation;
Is assisted through ACC;
New construction of replacement structures will be on the same site; and
At least 25 percent of the total new units will be financed with PBRA, ACC, or both, after Redevelopment.

(100) “Rehabilitation” means, with respect to the HOME and Housing Credit Program(s), the alteration, improvement or modification of an existing permanent residential structure where less than 50 percent of the proposed construction work consists of new construction, as further described in Rule 67-48.0075, F.A.C.

(101) “Review Committee” or “Committee” means a committee established pursuant to rule Chapter 67-60, F.A.C.

(102) “SAIL” or “SAIL Program” means the State Apartment Incentive Loan Program created pursuant to Sections 420.507(22) and 420.5087, F.S.

(103) “SAIL Development” means a residential Development comprised of one (1) or more residential buildings proposed to be constructed or rehabilitated with SAIL funds for Eligible Persons.

(104) “SAIL Minimum Set-Aside Requirement” means the least number of set-aside units in a SAIL Development which must be held for Very Low-Income persons or households pursuant to the category (i.e., Family, Elderly, Homeless, Persons with Special Needs, or Farmworker and Commercial Fishing Worker) under which the Application has been made, as further described in Rule 67-48.009, F.A.C.

(105) “SAIL Rent-Restricted Unit” means with respect to a SAIL Development, a unit for which the gross monthly rent shall not exceed 30 percent of the imputed income limitation applicable to such unit as committed to by the Applicant in its Application and shall be determined in a manner consistent with Section 42(g)(2) of the IRC.

(106) “Scattered Sites,” unless otherwise stated in a competitive solicitation, as applied to a single Development, means a Development site that, when taken as a whole, is comprised of real property that is not contiguous (each such non-contiguous site that contains, or will contain upon completion of the Development, at least one residential building within a Scattered Site Development, is considered to be a “Scattered Site”). For purposes of this definition “contiguous” means touching at a point or along a boundary. Real property is contiguous if the only intervening real property interest is an easement, provided the easement is not a roadway or street. All of the Scattered Sites must be located in the same county.

(107) “Section 8 Eligible” means a Family with an income which meets the income eligibility requirements of Section 8 of the United States Housing Act of 1937.

(108) “Special Needs Household” means a household consisting of a Family that is considered to be Homeless, a survivor of Domestic Violence, a Person with a Disability, or Youth Aging Out of Foster Care. These households require initial, intermittent or on-going supportive services from one or more community based service providers to obtain and retain stable, adequate and safe housing in their communities.

(109) “Special Needs Household Referral Agency” means an organization that is designated and authorized by legislative mandate or the responsible federal or state agency to plan, coordinate and administer the provision of federal or state supportive services or long-term care programs for at least one Special Needs Household population.

(110) “Sponsor” means Sponsor as defined in Section 420.503, F.S.

(111) “State Office on Homelessness” means the office created within the Department of Children and Family Services under Section 420.622, F.S.

(112) “Substantial Rehabilitation” means, with respect to the SAIL Program, to bring a Development back to its original state with added improvements, where the value of such repairs or improvements (excluding the costs of acquiring or moving a structure) exceeds 40 percent of the appraised as is value (excluding land) of such Development before repair and less than 50 percent of the proposed construction work consists of new construction. For purposes of this definition, the value of the repairs or improvements means the Development Cost. To be considered “Substantial Rehabilitation,” there must be at least the foundations remaining from the previous structures, suitable to support the proposed construction.

(113) “Tax-Exempt Bond-Financed Development” means a Development which has been financed by the issuance of tax-exempt bonds subject to applicable volume cap pursuant to Section 42(h)(4) of the IRC.

(114) “Total Development Cost” means the total of all costs incurred in the completion of a Development, all of which shall be subject to the review and approval by the Credit Underwriter and the Corporation pursuant to this rule chapter, and as further described in Rule 67-48.0075, F.A.C.

(115) “Treasury” means the United States Department of Treasury or other agency or instrumentality created or chartered by the United States to which the powers of the Department of Treasury have been transferred.

(116) “Very Low-Income” means:

(a) With respect to the SAIL Program,

If using tax-exempt bond financing for the first mortgage, income which meets the income eligibility requirements of Section 8 of the United States Housing Act of 1937, as in effect on the date of this rule chapter, or
If using taxable financing for the first mortgage, total annual gross household income which does not exceed 50 percent of the median income adjusted for family size, or 50 percent of the median income adjusted for family size for households within the metropolitan statistical area (MSA), within the county in which the Family resides, or within the state of Florida, whichever is greater, or
If used in a Development using Housing Credits, income which meets the income eligibility requirements of Section 42 of the IRC, or

(b) With respect to the HOME Program, income which does not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for family size, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on a basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes.

(117) “Website” means the Florida Housing Finance Corporation’s website, the Universal Resource Locator (URL) for which is www.floridahousing.org.

(118) “Youth Aging Out of Foster Care” means youth or young adults who are eligible for services under Section 409.1451(2), F.S.

(119) “Zero Bedroom Unit” means a single person occupancy unit of at least 350 square feet that includes a private full bathroom and a vertical closet for clothing. The unit shall include a kitchen with a refrigerator, stove and sink.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087, 420.5089(2) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.002, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-7-24, 7-30-25, 8-13-26.

Fla. Admin. Code R. 67-48.003 Notice of Funding or Credit Availability

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087, 420.5089, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.003, Amended 11-9-98, 2-24-00, 2-22-01, Repealed 3-17-02.

Fla. Admin. Code R. 67-48.004 Selection Procedures for Developments

(1) Unless otherwise provided in a competitive solicitation process, SAIL, HOME and Housing Credit Applications shall be limited to one submission per subject property. Two or more Applications, submitted in the same competitive solicitation process, that have the same demographic commitment and one or more of the same Financial Beneficiaries, will be considered submissions for the same Development site if any of the following is true:

(a) Any part of any of the property sites is contiguous with any part of any of the other property sites, or

(b) Any of the property sites are divided by a street or easement, or

(c) It is readily apparent from the Applications, proximity, chain of title, or other information available to the Corporation that the properties are part of a common or related scheme of development.

If two or more Applications are considered to be submissions for the same Development site, the Corporation will reject all such Applications.

(2) An Applicant shall be ineligible for funding or allocation in any program administered by the Corporation if the Applicant or Affiliate of the Applicant has made fraudulent or material misrepresentation as set forth in Section 420.518, F.S.

(3) For the SAIL, HOME and Housing Credit Programs, notwithstanding any other provision of these rules, the following items as identified by the Applicant in the Application must be maintained and cannot be changed by the Applicant after the applicable submission, unless provided otherwise below:

(a) Name of Applicant or Developer entity(s); notwithstanding the foregoing, the name of the Applicant or Developer entity(s) may be changed only by written request of an Applicant to Corporation staff and approval of the Corporation after the Applicant has been invited to enter credit underwriting. 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;

(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 Corporation after the Applicant has been invited to enter credit underwriting. 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. Any allowable change to the natural person Principals of a Public Housing Authority or officers and/or directors of a non-profit entity will apply to all preliminarily awarded Applications and Applications pending final Board action that include the Public Housing Authority or non-profit entity. Any allowable replacement of a Principal that was identified as the experienced Developer in a competitive solicitation must meet the experience requirements met by the original Principal;

(d) Applicant that applied as a Non-Profit or for-profit organization, unless provided otherwise in a competitive solicitation;

(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 and, if applicable, the total proximity points awarded during scoring are not reduced. In addition, if the increase or decrease of the site is such that the proposed Development now meets the definition of a Scattered Site, then the Applicant shall be required to provide such Scattered Sites information and meet all Scattered Sites requirements as required by Corporation staff. 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) Development Category;

(g) Development Type; notwithstanding the foregoing, the Development Type may be changed only by written request of an Applicant to Corporation staff and approval of the Corporation after the Applicant has been invited to enter credit underwriting. 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;

(h) Demographic Commitment;

(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, as well as review of 24 CFR Part 92 to ensure continued compliance for the HOME Program;

(j) For the SAIL and HC Programs, the Total Set-Aside Percentage as stated in the total set-aside breakdown chart for the program(s) applied for in the Set-Aside Commitment section of the Application. For the HOME Program, the total number of HOME-Assisted Units committed to in the Set-Aside Commitment section of the Application. Notwithstanding the foregoing, the Total Set-Aside Percentage, or total number of HOME-Assisted Units, as applicable, 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, as well as review of 24 CFR Part 92 to ensure continued compliance for the HOME Program;

(k) CHDO election for the HOME Program;

(l) Funding Request Amount, exclusive of adjustments by the Corporation as outlined in any applicable competitive solicitation.

(4) For all funding programs outlined in this rule chapter, a Development will be withdrawn from funding and any outstanding commitments for funds or HC will be rescinded if, at any time, the Board determines that the Applicant’s Development or Development team is no longer the Development or Development team described in the Application or to the Credit Underwriter, and the changes made are prejudicial to the Development or to the market to be served by the Development.

(5) For all funding programs outlined in this rule chapter, if an Applicant or Developer or any Principal, Affiliate or Financial Beneficiary of an Applicant or a Developer has any existing Developments participating in any Corporation programs that remain in non-compliance with Section 42 of the IRC, Title 67, F.A.C., or applicable loan documents, and any applicable cure period granted for correcting such non-compliance has ended as of the time of submission of the Application or at the time of issuance of a credit underwriting report, the requested allocation will, upon a determination by the Board that such non-compliance substantially increases the likelihood that such Applicant or Developer will not be able to produce quality affordable housing, be denied and the Applicant or Developer and the Affiliates of the Applicant or Developer will be prohibited from new participation in any of the Corporation’s programs until such time as all of their existing Developments participating in any Corporation programs are in compliance.

(6) For all funding programs outlined in this rule chapter, the name of the Development provided in the Application may not be changed or altered after submission of the Application during the history of the Development with the Corporation unless the change is requested in writing and approved in writing by the Corporation. The Corporation shall consider the facts and circumstances of each Applicant’s request and any credit underwriting report, if available, prior to determining whether to grant such request.

(7) For all funding programs outlined in this rule chapter, if the Applicant or any Principal, Financial Beneficiary or Affiliate of the Applicant has offered or given consideration, other than the consideration to provide affordable housing, with respect to a local contribution and this is discovered prior to Board approval of the Review Committee’s recommendations, the Corporation shall reject the Application and any other Application submitted by the same Applicant and any Principal, Financial Beneficiary or Affiliate of the Applicant. If discovered after the Board approves the Review Committee’s recommendations, any tentative funding or allocation for the Application and any other Application submitted by the same Applicant and any Principal, Financial Beneficiary or Affiliate of the Applicant will be withdrawn. Such Applicant and any of such Applicant’s Principals, Financial Beneficiaries or Affiliates will be ineligible for funding or allocation in any program administered by the Corporation in accordance with the procedure set forth in subsection (2), above.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087, 420.5089, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.004, Amended 4-7-98, 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, Repromulgated 6-28-23, Amended 8-27-24, Repromulgated 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.005 Applicant Administrative Appeal Procedures

History

Rulemaking Authority 420.507 FS. Law Implemented 120.569, 120.57, 420.5087, 420.5089, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.005, Amended 4-7-98, 11-9-98, 2-24-00, 2-22-01, 3-17-02, 10-8-02, 12-4-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, Repromulgated 11-22-11, Repealed 10-9-13.

Fla. Admin. Code R. 67-48.006 Compliance and Reporting Requirements

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087, 420.5089, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.006, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-01, 4-6-03, 3-21-04, Transferred to 67-53.008.

Fla. Admin. Code R. 67-48.007 Fees

The Corporation, the Credit Underwriter or the environmental provider shall collect via check, money order, or as otherwise provided in a competitive solicitation the following non-refundable fees and charges in conjunction with the SAIL, HOME, and HC Programs, as outlined in the competitive solicitation, the invitation to enter credit underwriting, the Preliminary Allocation, the preliminary commitment, the firm commitment, the Binding Commitment, the Carryover Allocation Agreement, or this rule chapter, as applicable:

(1) Application fee.

(2) Credit Underwriting fees.

(3) Administrative fees.

(4) Commitment fees.

(5) Compliance monitoring fees.

(6) Loan servicing fees.

(7) Construction inspection fees.

(8) Financial monitoring fees.

(9) Tax-exempt mortgage financing fees.

(10) HUD environmental fees.

(11) Qualified Contract Package fees.

(12) Assumption/Renegotiation fees.

(13) Loan closing extension fees.

(14) Processing fees.

(15) Preliminary Recommendation Letter (PRL) fee.

All of the fees set forth above with respect to the SAIL Program are part of Development Cost and can be included in the Development Cost pro forma and paid with SAIL loan proceeds. Failure to pay any fee associated with any applicable loan program shall cause the firm loan commitment under any such loan program(s) to be terminated or shall constitute a default on the respective loan documents. Failure to pay any fee associated with a Housing Credit Allocation shall cause the Housing Credit Allocation to be rescinded. Where a Development has been awarded funding under a loan program(s) and a Housing Credit Allocation, failure to pay any fee associated with either the loan(s) or Housing Credits, or both, shall result in both the termination or default, as applicable, of the loan(s) and rescission of the Housing Credit Allocation.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.007, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, 1-29-06, 4-1-07, Repromulgated 3-30-08, Amended 8-6-09, 11-22-11, 10-9-13, 10-8-14, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.0072 Credit Underwriting and Loan Procedures

Credit underwriting is a de novo review of all information supplied, received or discovered during or after any competitive solicitation scoring and funding preference process, prior to the closing on funding, including the issuance of IRS Forms 8609 for Housing Credits. The success of an Applicant in being selected for funding is not an indication that the Applicant will receive a positive recommendation from the Credit Underwriter or that the Development team’s experience, past performance or financial capacity is satisfactory. The credit underwriting review shall include a comprehensive analysis of the Applicant, the real estate, the economics of the Development, the ability of the Applicant and the Development team to proceed, the evidence of need for affordable housing in order to determine that the Development meets the program requirements and determine a recommended SAIL, or HOME loan amount, Housing Credit allocation amount or a combined SAIL or HOME loan amount and Housing Credit Allocation amount, if any; and for any Development that has rehabilitation with or without acquisition, a capital needs assessment (‘CNA’) prepared in accordance with generally accepted industry investment grade standards as reflected in a competitive solicitation shall be ordered by the Credit Underwriter from a Corporation-approved CNA provider, and its findings shall be used to determine rehabilitation that will be carried out, including applicable energy, green, universal design and visitability features, and to set replacement reserves as outlined in paragraph (13)(b), below. Corporation funding will be based on appraisals of comparable developments, cost benefit analysis, and other documents evidencing justification of costs. As part of the credit underwriting review, the Credit Underwriter will consider the applicable provisions of rule Chapter 67-48, F.A.C.

(1) After the Board’s decision to select Applicants for funding as a result of a competitive solicitation process has become final action, the Corporation shall offer such Applicants an invitation to enter credit underwriting. The Corporation shall select the Credit Underwriter for each Development. For purposes of this section, a decision regarding an Applicant will become final action:

(a) If none of the Board’s selections of Applicants for funding are challenged pursuant to Section 120.57(3), F.S.;

(b) If some of the Board’s selections of other Applicants for funding are challenged pursuant to Section 120.57(3), F.S., but none of the challenges could impact the decision to select the Applicant for funding, or

(2) For SAIL and HOME Applicants, the invitation to enter credit underwriting constitutes a preliminary commitment.

(3) A response to the invitation to enter credit underwriting must be received by the Corporation and the Credit Underwriter not later than seven (7) Calendar Days after the date of the invitation. For any invitation to enter credit underwriting that is offered to an Applicant after Board approval of the list of eligible Applications that is sorted from highest funding preference to lowest, where the Applicant’s response is to decline to enter credit underwriting, the result shall be the removal of the Application from the list of eligible Applications for the applicable competitive solicitation and any other funding where that list of eligible Applications will be used.

(4) If the invitation to enter credit underwriting is accepted:

(a) All Applicants shall submit the credit underwriting fee to the Credit Underwriter within seven (7) Calendar Days of the date of the invitation to enter credit underwriting. In addition:

Within seven (7) Calendar Days of the date of the invitation, Competitive HC Applicants shall submit the Preliminary Recommendation Letter (PRL) fee to the Credit Underwriter; and,
If requested by the Corporation, within 14 Calendar Days of the date of the invitation, Competitive HC, SAIL, and HOME Applicants shall submit IRS Tax Information Authorization Form 8821 for all Financial Beneficiaries to the Corporation.

(b) For Competitive HC, SAIL, and HOME Applicants, failure to submit the required credit underwriting fee or the HC PRL fee, as applicable, by the specified deadline shall result in withdrawal of the invitation. For HOME Applicants that apply and qualify as a Non-Profit entity, the Corporation shall bear the cost of the credit underwriting review, environmental review, and legal counsel. However, if the HOME commitment is canceled for failure to adhere to rule deadlines or for reasons within the Applicant’s control, the Development will be responsible for reimbursing the Corporation for fees incurred for credit underwriting, environmental review processing, and legal counsel.

(c) For SAIL and HOME, the credit underwriting process must be completed within the time frame outlined in subsection 67-48.0072(21), F.A.C., below and the loan must close within the time frame outlined in subsection 67-48.0072(26), F.A.C., below.

(5) The Credit Underwriter shall review all information in the Application and subsequently provided during the credit underwriting process, including information relative to the Applicant, Developer, Housing Credit Syndicator, General Contractor, and, if an ALF, the service provider(s), as well as other members of the Development team. The Credit Underwriter shall also request and review such other information as it deems appropriate to determine whether or not to provide a positive recommendation in connection with a proposed Development.

(6) In determining whether or not to provide a positive recommendation in connection with a proposed Development, the Credit Underwriter will consider the prior and recent performance history of the Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor in connection with any other affordable housing development. The performance history shall consider instances involving a foreclosure, deed in lieu of foreclosure, financial arrearage, or other event of material default in connection with any affordable housing development or the documents governing financing or operation of any such development.

Considering all developments in which any party named above has been involved, if:

Mitigating factors to be considered by the Credit Underwriter, to the extent such information is reasonably available and verifiable, shall include the extent to which the party funded the operations of the development from that party’s own funds in an attempt to keep the development afloat, the election by a party to forego financial participation in a development in an attempt to keep the development afloat, the party’s satisfactory performance history over the last 10 years in connection with that party’s developments, and any other extenuating circumstances deemed relevant by the Credit Underwriter in connection with the party’s involvement in a development.

(b) A negative recommendation may also result from the review of:

Financial capacity of an Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, the General Contractor, and, for SAIL and HOME Applicants that have Housing Credits, the Housing Credit Syndicator, or
Any other relevant matters relating to an Applicant, Developer, any Financial Beneficiary of the Applicant or Developer, and the General Contractor if, in the Credit Underwriter’s opinion, one or more members of the Development team do not possess the ability to proceed.

(7) The Credit Underwriter shall report any inconsistencies or discrepancies or changes made to the Applicant’s Application during credit underwriting.

(8) The Applicant will be responsible for all fees in connection with the documentation submitted to the Credit Underwriter.

(9) If the Credit Underwriter determines that special expertise is required to review information submitted to the Credit Underwriter which is beyond the scope of the Credit Underwriter’s expertise, the fee for such services shall be borne by the Applicant.

(10) For Competitive HC, SAIL, and HOME Applicants, an appraisal report conforming to the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal and reported in a comprehensive format, and a separate market study shall be ordered by the Credit Underwriter, at the Applicant’s expense, from an appraiser qualified for the geographic area and development type not later than completion of credit underwriting. The Credit Underwriter shall review the appraisal to properly evaluate the development property’s financial feasibility. Appraisals which have been ordered and submitted by third-party credit enhancers, first mortgagors or Housing Credit Syndicators and which meet the above requirements and are acceptable to the Credit Underwriter may be used instead of the appraisal referenced above. The market study must be completed by a disinterested party who is approved by the Credit Underwriter. The Credit Underwriter shall consider the market study, the Development’s financial impact on Developments in the area previously funded by the Corporation, and other documentation when making its recommendation of whether to approve or disapprove a SAIL or HOME loan, a Housing Credit Allocation, or a combined SAIL loan and Housing Credit Allocation or Housing Credit Allocation and HOME loan. The Credit Underwriter shall also review the appraisal and other market documentation to determine if the market exists to support both the demographic and income restriction set-asides committed to within the Application. For the Credit Underwriter to make a favorable recommendation, the submarket of the proposed Development must have:

(a) An average physical occupancy rate of 92 percent or greater; and,

(11) The proposed Development must demonstrate, based on current rates, that it can meet minimum 1.10x debt service coverage (DSC) requirements with all first and second mortgages for Housing Credits. If during the credit underwriting it is determined that there is no need for a first mortgage or any debt service payments then the proposed Development shall demonstrate the ability to achieve breakeven. In the case where an operating deficit reserve (ODR) is approved during credit underwriting, then the ODR can be used as income for purposes of this test. For SAIL and HOME, the minimum debt service coverage shall be 1.10x for the loan, including all superior mortgages. However, if the Applicant defers at least 35 percent of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when the primary expected source of repayment has been identified as projected cash flow, the minimum debt service coverage shall be 1.00, for the SAIL or HOME loan, including all superior mortgages. For SAIL and HOME, the maximum debt service coverage shall be 1.50x for the SAIL or HOME loan, including all superior mortgages. In extenuating circumstances, such as when the Development has deep or short term subsidy, or as stated in a competitive solicitation, the debt service coverage may exceed 1.50x if the Credit Underwriter’s favorable recommendation is supported by the projected cash flow analysis. Developments receiving first mortgage funding from the United States Department of Agriculture Rural Development (RD) are not required to meet the debt service coverage standards if RD is providing rental assistance and has acknowledged that rents will be set at an amount sufficient to pay all operating expenses, replacement reserve requirements and debt service on the first and second mortgages.

(12) For Competitive HC, SAIL, and HOME, the Corporation’s assigned Credit Underwriter shall require a guaranteed maximum price construction contract, which may include change orders for changes in cost or changes in the scope of work, or both, if all parties agree, and shall order, at the Applicant’s sole expense, and review a pre-construction analysis for all new construction units and a CNA for rehabilitation units and review the Development’s costs.

(13) For Competitive HC, SAIL, and HOME, in addition to operating expenses, the Credit Underwriter must include an estimate for replacement reserves and operating expense reserves deemed appropriate by the Credit Underwriter when calculating the final net operating income available to service the debt. A minimum amount of $300 per unit per annum must be used for all Developments. In the case of rehabilitation, with or without acquisition, the greater of $300 per unit per annum or the amount identified in the plan and cost review ordered by the Credit Underwriter will be used.

(a) The initial replacement reserve will have limitations on the ability to be drawn upon during the following time periods:

New construction or Redevelopment Developments shall not be allowed to draw during the first five (5) years or until the establishment of a minimum balance equal to the accumulation of five (5) years of replacement reserves per unit, or
Preservation or Rehabilitation Developments (with or without acquisition) shall not be allowed to draw until the start of the scheduled replacement activities as outlined in the pre-construction CNA report subject to the activities completed in the scope of rehabilitation, but not sooner than the 3rd year.

(b) The amount established as a replacement reserve shall be adjusted based on a CNA prepared by an independent third-party, ordered by a first mortgage lender, third-party credit enhancer or a Housing Credit Syndicator, received by the Corporation or its servicers, and acceptable to the Corporation and its servicers at the time the CNA is required, beginning no later than the 10th year after the first residential building in the Development receives a certificate of occupancy, a temporary certificate of occupancy, or is placed in service, whichever is earlier (‘Initial Replacement Reserve Date’). A subsequent CNA, meeting the parameters of this section, is required no later than the 15th year after the Initial Replacement Reserve Date and subsequently every five (5) years thereafter. If the Applicant does not provide a copy of a CNA to the Corporation or its servicers, prepared by an independent third-party and acceptable to the Corporation and its servicers within the stated time frames, then one shall be ordered by the Corporation or its servicers at the Applicant’s expense. The only events allowed to drop the balance below the minimum are items related to life safety, structural and systems as approved by the Corporation and its servicers. In the event the first mortgage lender or a Housing Credit Syndicator requires replacement reserves with replacement reserve deposit requirements that include the same or higher deposits, the Corporation’s rights to hold replacement reserves and to disburse such funds shall be subject to the first mortgage lender or the Housing Credit Syndicator, as applicable. The replacement reserve funds are not to be used by the Applicant for normal maintenance and repairs, but shall be used for structural building repairs, major building systems replacements and other eligible items which can be identified in a competitive solicitation and/or such items that can be capitalized and depreciated over multiple years. An Applicant may choose to fund a portion of the replacement reserves at closing. Unless approved by the Corporation and the Credit Underwriter, the amount cannot exceed 50 percent of the required replacement reserves for two (2) years and must be placed in escrow at closing.

(14) For SAIL, HOME, and Competitive HC, the Credit Underwriter may request additional information, but at a minimum for SAIL and HOME, the following will be required during the underwriting process:

(a) For credit enhancers, audited financial statements for their most recent fiscal year ended, if published; otherwise the previous year’s audited statements will be provided until the current statements are published or credit underwriting is complete. The audited statements may be waived if the credit enhancer’s senior long term debt rating is at least “A3” by Moody’s, or “A-” by Standard and Poor’s or Fitch.

(b) For the Applicant, general partner(s), and guarantors, audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. If financial statements that are either audited, compiled or reviewed by a licensed Certified Public Accountant are not available, unaudited financial statements prepared within the last 90 days and reviewed by the Credit Underwriter and the two most recent years’ tax returns. If any of the applicable entities are newly formed (less than 18 months in existence as of the date that credit underwriting information is requested), a copy of any and all tax returns with related supporting notes and schedules. The financial statements and information provided for review should be in satisfactory form and shall be reviewed in accordance with the terms and conditions of this rule chapter and any applicable competitive solicitation.

(c) For the General Contractor, audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. The audited or compiled statements may be waived if a payment and performance bond equal to 100 percent of the total construction cost whose terms do not adversely affect the Corporation’s interest, and is issued in the name of the General Contractor by a company rated at least “A-” by AMBest & Co.

(15) For SAIL and HOME, each general partner (whether individual or entity) or each manager/managing member (whether individual or entity), as applicable, of the Applicant shall provide a guarantee for completion of construction. In addition, one or more entities or individuals (other than a general partner or manager/managing member) having an ownership interest, either directly or indirectly, in the Applicant or in the general partner or managing member of the Applicant shall be required to provide guarantees or personal guarantees, as applicable, for completion of construction as recommended by the Credit Underwriter or as otherwise required by the Corporation. The Corporation shall consider the following when determining the need for additional construction completion guarantees based on the recommendations of the Credit underwriter:

(a) Liquidity of any guarantee provider.

(b) If applicable, Applicant’s, Developer’s and General Contractor’s history in successfully completing Developments.

(c) If applicable, the past performance of the Applicant, Developer, General Contractor or any other guarantee provider in developing or constructing Developments financed by the Corporation or its predecessor.

(d) Percentage of the Corporation’s funds utilized compared to Total Development Costs.

If, after evaluation of paragraphs (a)-(d), above, by the Corporation and the Credit Underwriter, it is determined that additional surety is needed, the Applicant will be required to provide a letter of credit or payment and performance bond.

(16) For all Developments, the Developer Fee and General Contractor’s fee shall be limited to:

(a) Unless otherwise provided in a competitive solicitation process, the Developer Fee shall be limited to 16 percent of Development Cost, excluding land, operating deficit reserves, and any cash reserves/deposits associated with the acquisition of a Development, except that, based upon criteria outlined in a competitive solicitation, a Developer Fee of up to 21 percent of Development Cost, excluding land and operating deficit reserves, shall be allowed if the proposed Development is qualified for Competitive Housing Credits with a demographic commitment of Homeless or Persons with Special Needs. When the Developer Fee is limited to 21 percent of the Development Cost, an amount equal to up to 5 percent of Development Cost, inclusive of any amount in excess of 16 percent, must be placed in an operating subsidy reserve account to be held by the Corporation or its servicer. Any disbursements from said operating subsidy reserve account shall be reviewed and approved by the Corporation or its servicer. Upon the expiration of the Compliance Period, any remaining balance in any operating deficit reserve (or similarly purposed) account may be drawn to pay down any outstanding Corporation loan debt, including loan fees, on the Development administered by the Corporation or its servicer. If there is no Corporation loan debt on the Development at the end of the Compliance Period, then any remaining balance in said operating subsidy reserve account shall be placed into either an operating subsidy reserve account or a replacement reserve account for the Development, which will have similar distribution restrictions as stated herein or in paragraph (b), below. In no event shall the remaining balance in said operating subsidy reserve account be paid to the Developer or General Contractor in an amount that would cause the Developer Fee or General Contractor fee to exceed the applicable percentage limitations provided herein and in paragraph (b), below. Amounts withdrawn from the reserve account will not be considered Development Cash Flow. In the event amounts withdrawn are to pay any deferred Development Costs, it can be done prior to the end of the Compliance Period, but no sooner than the end of the 13th year of the Compliance Period and only after the Corporation’s Credit Underwriter confirms that said withdrawal does not negatively impact the Development through the remainder of the Compliance Period. Consulting fees, if any, and any financial or other guarantees required for the financing must be paid out of the Developer Fee. Consulting fees include payments for Application consultants, construction management or supervision, Local Government consultants and property acquisition brokerage fees when in excess of the appropriate limit. The maximum brokerage fees shall be limited to the lesser of $300,000 or the applicable percent of the acquisition price, which shall be set at 4 percent when the acquisition price is $5 million or less, 3 percent when the acquisition price is $10 million or less, and 2 percent when the acquisition price is in excess of $10 million. Brokerage fees paid to an Affiliate of the Applicant or Developer or to employees on the Developer’s payroll will be considered part of the Developer Fee.

To the extent there are any Housing Credits that are not sold to an investor(s) in excess of 0.01 percent of the Applicant’s Housing Credit Allocation, then it will be assumed those unsold Housing Credits are valued at the same price as those Housing Credits sold to an investor(s) and that total value will be considered to be part of the Developer Fee.

(b) The General Contractor’s fee shall be limited to a maximum of 14 percent of the actual construction cost.

(17) The General Contractor must meet the following conditions:

(a) Employ a Development superintendent and charge the costs of such employment to the general requirements line item of the General Contractor’s budget;

(d) If deemed necessary by the Corporation and the Credit Underwriter in their evaluation of construction completion guarantees in subsection (15), above, secure a payment and performance bond whose terms do not adversely affect the Corporation’s interest, issued in the name of the General Contractor, from a company rated at least “A-” by AMBest & Co., or a Corporation-approved alternate security for the General Contractor’s performance such as a letter of credit issued by a financial institution with a senior long term (or equivalent) credit rating of at least “Baa3” by Moody’s, or at least “BBB-” by Standard & Poor’s or Fitch, or a financial rating of at least 175 by IDC Financial Publishing;

(e) Ensure that none of the General Contractor duties to manage and control the construction of the Development are subcontracted;

(f) Ensure that no construction or inspection work is performed by the General Contractor, with the following exceptions:

The General Contractor may perform its duties to manage and control the construction of the Development; and
The General Contractor may self-perform work of a de minimis amount, defined for purposes of this subparagraph as the lesser of $350,000 or 5 percent of the construction costs, not to include the General Contractor fee or pass-through fees paid by the General Contractor;

(g) For Developments with a Development category of new construction, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor):

Contracted to deliver the building shell of a building less than five (5) stories which may not have more than 25 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development; or
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 Corporation for a specific Development; or
Contracted to deliver the building shell of a Development located in the Florida Keys Area, which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development.

With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of paragraph (g), “Affiliate” has the meaning given in subsection 67-48.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”;

(h) For Developments with a Development category of Rehabilitation or Substantial Rehabilitation, unless otherwise approved by the Corporation for a specific Development, ensure that not more than 20 percent of the construction cost, not to include the General Contractor fee or pass-through fees paid by the General Contractor, is subcontracted to any one entity or any group of entities that have common ownership or are Affiliates of any other subcontractor, with the exception of a subcontractor (or any group of entities that have common ownership or are Affiliates of any other subcontractor) contracted to perform work on both the HVAC and electrical components of a building of at least seven (7) stories which may not have more than 31 percent of the construction cost in a subcontract, unless otherwise approved by the Corporation for a specific Development. With regard to said approval, for requests of 3 percent or more over the applicable limit, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For requests up to 3 percent over the applicable limit, the Corporation shall consider the facts and circumstances of each Applicant’s request, inclusive of construction costs and the General Contractor’s fees. For purposes of this paragraph, “Affiliate” has the meaning given in subsection 67-48.002(5), F.A.C., except that the term “Applicant” therein shall mean “subcontractor”; and,

(i) Ensure that no construction cost is subcontracted to any entity that has common ownership or is an Affiliate of the General Contractor, Developer, or Applicant. For purposes of this paragraph, “Affiliate” has the meaning given it in subsection 67-48.002(5), F.A.C., except that the term “Applicant” therein shall mean “General Contractor.”

(18) For SAIL and HOME, the Credit Underwriter shall require an operating deficit guarantee. Upon written request of the guarantor(s) to the Corporation or its agent, the operating deficit guarantee will be released upon achievement of a 1.15x debt service coverage ratio for the combined permanent first mortgage and SAIL or HOME loan, as determined by the Corporation or its agent, and 90 percent occupancy, and 90 percent of the gross potential rental income, net of utility allowances, if applicable, all for a period equal to 12 consecutive months, all as certified by an independent Certified Public Accountant. The calculation of the debt service coverage ratio shall be made by the Corporation or its agent. The Credit Underwriter or servicer will determine whether all of the requirements described above have been met, including receipt, acceptance and verification of the documentation provided by the Certified Public Accountant, and will then submit a letter to the Corporation containing a positive or negative recommendation concerning the release of the operating deficit guarantee. If the Corporation’s decision is to deny the release of the operating deficit guarantee, the Board shall consider the facts and circumstances of the Applicant’s request and the Corporation’s denial, and make a determination of whether to grant the requested release. Notwithstanding the above, the operating deficit guarantee shall not be released earlier than three (3) years following the issuance of a final certificate of occupancy or, in the event a final certificate of occupancy is not routinely provided by the applicable jurisdiction, such other information evidencing completion of the Development which is deemed acceptable to the Corporation. An operating deficit guarantee, to be released upon achievement of 1.00x debt service coverage for a minimum of six (6) consecutive months for the combined permanent first mortgage and SAIL or HOME loan will be required for Developments receiving first mortgage funding from the United States Department of Agriculture Rural Development (RD) if RD is providing rental assistance and has acknowledged that rents will be set at an amount sufficient to pay all operating expenses, replacement reserve requirements and debt service on the SAIL or HOME loan and all superior mortgages.

(19) Contingency reserves which total no more than 5 percent of total actual construction costs (hard costs) and total general development costs (soft costs) for Redevelopment and Developments where 50 percent or more of the units are new construction may be included within the Total Development Cost for Application and underwriting purposes, unless otherwise recommended by the Credit Underwriter. Contingency reserves which total no more than 15 percent of total actual construction costs (hard costs) and no more than 5 percent of total general development costs (soft costs) for Rehabilitation, Moderate Rehabilitation, Substantial Rehabilitation, and Preservation may be included within the Total Development Cost for Application and underwriting purposes, unless otherwise recommended by the Credit Underwriter; however, in the event financing is obtained through a federal government rehabilitation program, a contingency reserve up to 20 percent may be utilized if required by the program. Contingency reserves shall not be paid from SAIL or HOME funds.

(20) The Credit Underwriter will review and determine if the number of loans and construction commitments of the Applicant and its Principals will impede its ability to proceed with the successful development of each proposed Corporation-funded Development.

(21) Information required by the Credit Underwriter shall be provided as follows:

(a) For SAIL and HOME Developments, the Corporation shall issue a firm loan commitment after approval of the Credit Underwriter’s recommendation for funding by the Board.

(b) For SAIL and HOME, unless stated otherwise in a competitive solicitation, the firm loan commitment must be issued by the date of the Board of Directors meeting immediately following twelve (12) months after the Applicant is invited to enter credit underwriting. Unless an extension is approved by the Board, failure to achieve issuance of a firm loan commitment by the specified deadline shall result in withdrawal of the preliminary commitment. Applicants may request one (1) extension of up to six (6) months to secure a firm loan commitment. All extension requests must be submitted in writing to the program administrator and contain the specific reasons for requesting the extension and shall detail the time frame to achieve a firm loan commitment. In determining whether to grant an extension, the Board shall consider the facts and circumstances of the Applicant’s request, inclusive of the responsiveness of the Development team and its ability to deliver the Development timely. Unless otherwise stated in a competitive solicitation, the Corporation shall charge a non-refundable extension fee of one (1) percent of each loan amount if the request to extend the credit underwriting and firm loan commitment process beyond the initial deadline is approved. If an approved extension is utilized, Applicants must pay the extension fee not later than seven (7) Calendar Days after the Board approves the extension of the original deadline. If, by the end of the extension period, the Applicant has not received a firm loan commitment, then the preliminary commitment shall be withdrawn.

(c) For Competitive HC Developments, regardless of whether the HC is in conjunction with SAIL or HOME, all preliminary items required for the Credit Underwriter’s preliminary HC allocation recommendation must be provided to the Credit Underwriter within 21 Calendar Days of the date of the invitation to enter credit underwriting. Unless an extension is approved by the Corporation in writing, failure to submit the required credit underwriting information by the specified deadline shall result in withdrawal of the invitation to enter credit underwriting. In determining whether to grant an extension, the Corporation shall consider the facts and circumstances of the Applicant’s request, inclusive of the responsiveness of the Development team and its ability to deliver the Development timely. If the Corporation’s decision is to deny the Applicant’s request for an extension, then prior to the withdrawal of the invitation, the Board shall consider the facts and circumstances of the Applicant’s request, the Corporation’s denial, and any credit underwriting report, if available, and make a determination of whether to grant the requested extension.

(22) If the Credit Underwriter requires additional clarifying materials in the course of the underwriting process, the Credit Underwriter shall request same from the Applicant and shall specify deadlines for the submission of same. Failure to submit required information by the specified deadline, unless a written extension of time has been approved by the Corporation, shall result in withdrawal of the preliminary commitment or the invitation to enter credit underwriting, or both, as applicable. In determining whether to grant an extension, the Corporation shall consider the facts and circumstances of the Applicant’s request, inclusive of the responsiveness of the Development team and its ability to deliver the Development timely. If the Corporation’s decision is to deny the Applicant’s request for an extension, then prior to the withdrawal of the preliminary commitment or the invitation to enter credit underwriting, or both, as applicable, the Board shall consider the facts and circumstances of the Applicant’s request, the Corporation’s denial, and any credit underwriting report, if available, and make a determination of whether to grant the requested extension.

(23) The Credit Underwriter shall complete its analysis and submit a written draft report and recommendation to the Corporation. Upon receipt, the Corporation shall provide to the Applicant the section of the written draft report consisting of supporting information and schedules. The Applicant shall review and provide written comments to the Corporation and Credit Underwriter within 48 hours of receipt. After the 48 hour period, the Corporation shall provide to the Credit Underwriter comments on the draft report and, as applicable, on the Applicant’s comments. Then, the Credit Underwriter shall review and incorporate, if deemed appropriate, the Corporation’s and Applicant’s comments and release the revised report to the Corporation and the Applicant. Any additional comments from the Applicant shall be received by the Corporation and the Credit Underwriter within 72 hours of receipt of the revised report. Then, the Credit Underwriter will provide a final report, which will address comments made by the Applicant, to the Corporation.

(24) For SAIL and HOME, the Credit Underwriter’s loan recommendations will be sent to the Board for approval.

(25) For SAIL and HOME, the Corporation shall issue a firm loan commitment within seven (7) Calendar Days after approval of the Credit Underwriter’s recommendation for funding by the Board.

(26) For SAIL and HOME, unless stated otherwise in a competitive solicitation, these Corporation loans and other mortgage loans related to the Development must close by the date of the Board of Directors meeting immediately following 180 Calendar Days of the firm loan commitment(s). Unless an extension is approved by the Board, failure to close the loan(s) by the specified deadline outlined above shall result in the firm loan commitment(s) being deemed void and the funds shall be de-obligated. Applicants may request one (1) extension of the loan closing deadline outlined above for a term of up to 90 Calendar Days. All extension requests must be submitted in writing to the program administrator and contain the specific reasons for requesting an extension and shall detail the time frame to close the loan. The Board shall consider the facts and circumstances of each Applicant’s request, inclusive of the Applicant’s ability to close within the extension term and any credit underwriting report, prior to determining whether to grant the requested extension. Unless otherwise stated in a competitive solicitation, the Corporation shall charge an extension fee of one (1) percent of each Corporation loan amount if the Board approves the request to extend the loan closing deadline beyond the applicable period outlined above. If an approved extension is utilized, Applicants must pay the extension fee not later than seven (7) Calendar Days after the Board approves the request to extend the original loan closing deadline. In the event the Corporation loan(s) does not close by the end of the extension period, the firm loan commitment(s) shall be deemed void and the funds shall be de-obligated.

(27) Prior to any loan closing:

(a) The Applicant must provide evidence of all necessary consents or required signatures from first mortgagees or subordinate mortgagees to the Corporation and its counsel; and,

(b) The Credit Underwriter must have received all items necessary to release its letter confirming that all closing contingencies have been met, including the finalized sources and uses of funds and Draw schedule.

(28) For Competitive Housing Credits, the Credit Underwriter shall use the following procedures during the credit underwriting evaluation:

(a) The Credit Underwriter, in determining the amount of Housing Credits a Development is eligible for when using the qualified basis calculation, shall use a Housing Credit percentage of:

Unless otherwise stated in a competitive solicitation, twenty (20) basis points over the percentage as of the date of invitation to enter credit underwriting when the actual percentage exceeds the minimum of 9 percent for 9 percent credits for new construction and Rehabilitation Developments unless the Applicant has previously locked-in the percentage at a different rate, in which case the Credit Underwriter shall use the locked-in Housing Credit percentage,
Fifteen (15) basis points over the percentage as of the date of invitation to enter credit underwriting when the actual percentage exceeds the minimum of 4 percent for 4 percent credits for acquisition and federally subsidized Developments, unless the Applicant has previously locked-in the percentage at a different rate, in which case the Credit Underwriter shall use the locked-in Housing Credit percentage.

(d) The allocation amount for acquisition Housing Credits shall be limited to the lesser of the sale price or the appraised value of the building(s).

(e) If the Credit Underwriter is to recommend a Competitive Housing Credit Allocation, the recommendation will be the lesser of:

The qualified basis calculation result,
The gap calculation result, or
The Housing Credit award considered in the Application.

During the credit underwriting process and as a part of the final cost certification process, the Development will be subjected to the Total Development Cost per unit limitation test as outlined in a competitive solicitation.

(g) When utilizing the gap calculation in determining a recommendation for the amount of the Housing Credit Allocation as part of the process the Corporation uses to determine financial feasibility as set forth in Section 42(m)(2) of the IRC, the Credit Underwriter shall assume a first mortgage loan amount from a non-governmental agency (i.e., a traditional first mortgage lender) to be the greater of:

The actual amount committed to the Development, or
The amount of the proposed Development’s minimum qualifying first mortgage as determined herein. The Development’s minimum qualifying first mortgage shall be the lesser of a. or b. as follows:

a. An amount that yields a debt service coverage ratio of 1.25x based on the first-year net operating income as presented in the proposed Development’s final credit underwriting report’s pro forma and calculating a 15th year net operating income given an annual rate of increase for revenues of the lesser of 2 percent or the annual rate of increase utilized in credit underwriting, along with an annual rate of increase for operating expenses of the greater of 3 percent or the annual rate of increase utilized in credit underwriting less any cash-flow dependent, interest-only financing provided by a Local Government entity where the interest rate does not exceed the three-month average of the long-term applicable federal rate prescribed by section 1264(d) of the IRC published for January, February and March of a given calendar year for any Application submitted after July 1st of the same year, but prior to July 1st of the following calendar year, or

b. The greater of either:

(I) An amount that yields a debt service coverage ratio of 1.50x, and accounting for the aforementioned debt service of a Local Government entity sponsored financing source, or

(II) An amount that yields a net cash flow after debt service of $1,500 per unit.

Both sub-sub-subparagraphs (I) and (II), above, are based on the pro forma for the proposed Development’s initial year as presented in the final credit underwriting report.

With regard to subparagraph 2., above, unless otherwise stated in a competitive solicitation, the first mortgage shall be sized based on an interest rate equal to the actual interest rate of the actual first mortgage of the proposed Development, but no less than an interest rate floor of the greater of 7.0 percent or 325 basis points over the 10-year Treasury Rate as of the submission deadline for the applicable competitive solicitation and an interest rate ceiling of no greater than 100 basis points over said interest rate floor. The first mortgage shall be sized based on an amortization term equal to the greater of the actual amortization term of the actual first mortgage of the proposed Development or 30 years. The vacancy and collection factor for this calculation shall be the vacancy and collection factor in the credit underwriting report, but no less than 7 percent. If the resulting calculated minimum qualifying first mortgage is less than $500,000, then the Development shall assume to have no minimum qualified first mortgage. This determination applies to any Development that did not qualify as a Homeless or Persons with Special Needs Demographic Development, which said Homeless or Persons with Special Needs Demographic Developments would only use its actual committed debt.

(h) Any Housing Credit Allocation that is not necessary for the financial feasibility of the Development and its viability as a qualified Housing Credit Development throughout the Housing Credit Period, as determined by the Corporation, will be withheld from being allocated to the Applicant.

(i) As part of the final cost certification process set forth in subsection 67-48.023(5), F.A.C., the Applicant shall have documentation provided to the Corporation by the Housing Credit Syndicator (for Housing Credits that are syndicated) or by the Applicant (for any Housing Credits that are not syndicated) that details, for each source of Housing Credit equity, the following information:

The net dollar amount of funding provided to the Housing Credit Syndicator or the Applicant, as applicable, that will be passed along to the Applicant as Housing Credit equity for the benefit of paying Total Development Costs; and,
The annual dollar amount of Housing Credit Allocation sold to each investor in exchange for the funding provided.

(29) If the Credit Underwriter recommends that Housing Credits be allocated to the Development, the Corporation shall determine the credit amount, if any, necessary to make the Development financially feasible and viable throughout the Housing Credit Extended Use Period and shall issue a Preliminary Allocation certificate. If the Credit Underwriter recommends that no credits be allocated to the Development and the Executive Director accepts the recommendation, the Applicant shall be notified that no Housing Credits will be allocated to the Development. All contingencies required in the Preliminary Allocation shall be met or satisfied by the Applicant within 45 Calendar Days from the date of issuance or as otherwise indicated on the certificate.

(30) For Competitive HC, the credit underwriting report must be finalized no later than the deadline provided in the Carryover Allocation Agreement, unless extended as provided in the Carryover Allocation Agreement, or the Housing Credits will be deemed to be returned to the Corporation.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.507(13), (22), (24), (48), 420.5087, 420.5089, 420.5099 FS. History–New 2-7-05, Amended 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 8-27-24, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.0075 Miscellaneous Criteria

(1) In addition to the alteration, improvement or modification of an existing structure, Rehabilitation or Preservation with respect to the HOME Program and Rehabilitation or Preservation with respect to the Housing Credit Program also includes:

(a) For HOME Developments, moving an existing structure to a foundation constructed with HOME funds. Rehabilitation may include adding rooms outside the existing walls of a structure, but adding a housing unit is considered new construction.

(b) For Competitive Housing Credit Developments, Rehabilitation or Preservation costs during any 24-month period must equal or exceed an average of $40,000 in hard rehabilitation costs per unit and are in addition to the 20% of the property’s adjusted basis requirements and minimum qualified basis per low income unit set forth in Section 42(e)(3)(A)(ii) of the IRC. For purposes of this subsection, “hard rehabilitation costs” include site improvements, off-site improvements, rehabilitation costs for physical improvements to the property, and construction contingency and do not include general contractor fees or overhead, general requirements, architect and engineering fees, permit fees, financing or soft costs, or developer fees.

(2) For purposes of this rule chapter, in accordance with Section 42 of the IRC, a for-profit entity wholly owned by one or more qualified non-profit organizations will constitute a Non-Profit entity. The purpose of the Non-Profit must be, in part, to foster low-income housing and such purpose must be reflected in the Articles of Incorporation, or other documentation as outlined in a competitive solicitation, of the Non-Profit entity. A Non-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 total affordability period as stated in the Land Use Restriction Agreement and the Extended Use Agreement.

(3) Total Development Cost includes the following:

(b) The cost of site preparation, demolition, and development.

(f) The cost of the construction, rehabilitation, and equipping of the Development.

(g) The cost of land improvements, such as landscaping and offsite improvements related to the Development, whether such costs are paid in cash, property, or services. However, offsite improvements are not eligible to be paid with HOME funds.

(h) Expenses in connection with initial occupancy of the Development.

(i) Allowances for contingency reserves and any anticipated operating reserves as recommended by the Credit Underwriter and approved by the Corporation.

(4) In determining the income standards of Eligible Persons for its various programs, the Corporation shall take into account the following factors:

(a) Requirements mandated by federal law;

(b) Variations in circumstances in the different areas of the state;

(d) The need for family size adjustments to accomplish the purposes set forth in this rule chapter.

With respect to the HC Program, an Eligible Person shall mean a Family having a combined income which meets the income eligibility requirements of the HC Program and Section 42 of the IRC.

(5) Financial Beneficiary and Affiliate, as defined in Rule 67-48.002, F.A.C., do not include third-party lenders, third-party management agents or companies, third-party service providers, Housing Credit Syndicators, credit enhancers regulated by a state or federal agency, or contractors whose total fees are within the limit described in Rule 67-48.0072, F.A.C.

(7) The Corporation must approve, pursuant to rule Chapter 67-53, F.A.C., the Applicant’s selection of a management company prior to the leasing of any units in the Development. The owner of a Development must notify the Corporation of an intended change in the management company prior to such company assuming responsibility for the Development.

(8) Unless otherwise stated in a competitive solicitation, disclosure of the Principals of the Applicant must comply with the following:

(b) The Applicant must disclose all of the Principals of all the entities identified in paragraph (a) above (second principal disclosure level);

(c) The Applicant must disclose all of the Principals of all of the entities identified in paragraph (b) above (third principal disclosure level). Unless the entity is a trust or a non-profit as defined in Section 42(h)(5)(C), subsection 501(c)(3) or subsection 501(c)(4) of the IRC, all of the Principals must be natural persons, A non-profit entity may be identified at the third principal disclosure level if the non-profit wholly owns a real estate development subsidiary identified at the second principal disclosure level; and

(9) Unless otherwise stated in a competitive solicitation, disclosure of the Principals of each Developer must comply with the following:

(a) The Applicant must disclose all of the Principals of the Developer (first principal disclosure level); and

(b) The Applicant must disclose all of the Principals of all the entities identified in paragraph (a) above (second principal disclosure level).

(c) A competitive solicitation may require disclosure of a natural person Principal of the Developer to meet Developer experience requirements.

(10) Applicants awarded funding under this rule chapter shall comply with the compliance procedures set forth in Chapter 67-53, F.A.C.

(11) In a land use restriction agreement issued with terms set forth in s. 196.1978(4), F.S., ceasing to provide affordable housing under the land use restriction agreement shall mean that the development does not serve any residents at the set aside commitments set forth in the land use restriction agreement. Prior to a determination by the Corporation of noncompliance related to terms set forth in s. 196.1978(4), F.S., the owner shall be provided with written notice and an opportunity to cure within 90 days. If the development remains out of compliance after the cure period, the penalty under s. 196.1978(4), F.S., shall be enforced upon determination by the Board that the development does not serve any residents at any set-aside designation set forth in the land use restriction agreement. The Board's determination shall be based on a review of program reports, compliance reports, or other documentation required under the land use restriction agreement or Chapter 67-53, F.A.C.

PART II STATE APARTMENT INCENTIVE LOAN PROGRAM

History

Rulemaking Authority 196.1978(3)(m), 420.507(12), (44), 420.508(3)(c) FS. Law Implemented 196.1978(4), 420.5087, 420.5089, 420.5099 FS. History–New 2-7-05, Amended 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, Amended 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.008 No Discrimination

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.501, 420.5089(10) FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.008, Amended 11-9-98, 2-24-00, Repealed 2-22-01.

Fla. Admin. Code R. 67-48.009 SAIL General Program Procedures and Restrictions

(1) Loans shall be in an amount not to exceed 25 percent of the Total Development Cost except as described in subsections (2) and (3), below, or the minimum amount required to make the Development economically feasible, whichever is less, as determined by the Credit Underwriter.

(2) The following types of Sponsors are eligible to apply for loans in excess of 25 percent of Total Development Cost pursuant to Section 420.507(22), F.S.:

(a) Non-Profit and public Sponsors which are able to secure grants, donations of land, or contributions from other sources collectively totaling at least 10 percent of Total Development Cost; and,

(b) Sponsors that set aside at least 80 percent of their total units for residents qualifying as Farmworkers as defined in Section 420.503, F.S., Commercial Fishing Workers as defined in Section 420.503, F.S., or the Homeless as defined in Section 420.621, F.S., or Persons with Special Needs as defined in Section 420.0004(13), F.S., over the life of the loan.

(3) Unless stated otherwise in any competitive solicitation, the following types of Sponsors are eligible to apply for loans that do not exceed 35 percent of Total Development Cost for proposed Developments serving the Family or Elderly demographic categories, as well as those serving the Homeless, Farmworker, Commercial Fishing Worker, or Persons with Special Needs demographic categories that do not meet the criteria outlined in subsection (2), above:

(a) Applicants requesting both SAIL and Competitive HC that commit to set aside more than 10 percent of the total units for ELI Households; and,

(b) Applicants requesting SAIL without Competitive HC that commit to set aside at least 5 percent of the total units for ELI Households.

(4) At a minimum, the percentage of set-aside units committed to in the Application must be held for Very Low-Income persons or households for a period of time equal to the greater of the following:

(a) The term of the SAIL loan, or

(b) 12 years from the date the first residential unit is occupied, or

The set-aside requirements apply to the total number of residential units in the Development beginning on the later of the first day on which any residential unit in the Development is occupied or the SAIL loan closing date. For a period of 12 months beginning on the SAIL loan closing date (the “transition period”), the failure to satisfy the set-aside requirements shall not cause noncompliance.

(5) Unless otherwise permitted in a competitive solicitation process, an Applicant is not eligible to apply for SAIL Program funding if any of the following pertain:

(a) Construction or construction-permanent financing of the costs associated with construction, Moderate Rehabilitation or Substantial Rehabilitation of the Development, including tax-exempt bonds or conventional financing with conversion clauses, has closed or will close prior to the date of the preliminary commitment for the applicable SAIL funding.

(b) The proposed Development has received an allocation of Housing Credits or a Competitive Housing Credit commitment, unless:

The Applicant is also applying for Corporation-issued tax exempt bonds or provides evidence of a non-Corporation-issued tax exempt bond commitment, or
Written notice has been provided to the Corporation prior to the deadline to apply for the applicable SAIL funding withdrawing acceptance of such allocation or commitment and returning the previously awarded HC funding.

(c) A preliminary commitment of funding for the proposed Development through the SAIL Program or the HOME Program has already been accepted, unless written notice has been provided to the Corporation prior to the deadline to apply for the new SAIL funding withdrawing such acceptance and returning the prior SAIL Program or HOME Program funding.

(d) The proposed Development site or any part thereof is subject to any Land Use Restriction Agreement or Extended Use Agreement, or both, in conjunction with any Corporation affordable housing financing intended to foster the development or maintenance of affordable housing, unless at least one (1) of the following exceptions applies:

A LURA recorded in conjunction with the Predevelopment Loan Program or the Elderly Housing Community Loan Program, or
A LURA or EUA, or both, for an existing building or buildings, originally constructed at least 25 years prior to the deadline to apply for the applicable SAIL funding, where, in the current Application, the Applicant has selected and qualified for the Homeless demographic commitment with a Development category of Rehabilitation/Moderate Rehabilitation/Substantial Rehabilitation, Acquisition and Rehabilitation/Moderate Rehabilitation/Substantial Rehabilitation, Preservation, or Acquisition and Preservation.

(6) Unless stated otherwise in a competitive solicitation, the SAIL Minimum Set-Aside Requirement is:

(a) 20 percent of the SAIL Development’s units set-aside for residents with annual household incomes at or below 50 percent of the area, metropolitan statistical area (“MSA”) or state or county median income, whichever is higher, adjusted for family size, or

(b) If the SAIL Development is scheduled to be assisted with Housing Credits, in addition to the SAIL loan the Sponsor may select the minimum Set-Aside as specified in Section 42(g)(1) of the IRC.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.009, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, Repromulgated 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, Amended 8-13-26.

Fla. Admin. Code R. 67-48.0095 Additional SAIL Selection Procedures

(1) Subject to the provisions of Section 420.507(48), F.S., during the first six (6) months following the publication date of the first Notice of Funding Availability published in any year within the state of Florida, SAIL funds shall be allocated in accordance with the ranking and selection process set forth in the applicable competitive solicitation and based upon the requirements specified in Section 420.5087(3), F.S., which specifies the required funding within the five (5) demographic categories of:

(a) Family;

(b) Elderly;

(d) Commercial Fishing Workers and Farmworkers; and,

(e) Persons with Special Needs.

(2) 10 percent of the funds for Developments in the Elderly category shall be made available to provide loans to Sponsors of housing for the Elderly for the purpose of making life-safety or security-related repairs or improvements to such housing which are required by federal, state or local regulation.

(3) The Corporation shall make available tentative loan amounts to Applicants in each demographic and geographic category, up to the total amount available.

(4) In the event that the 10 percent of program funds required to be allocated to counties with a population of 100,000 or less remains unallocated at the conclusion of a competitive solicitation, the unallocated funds shall be equitably distributed pursuant to Board approval.

(5) Selection for SAIL Program participation is contingent upon fund availability at the conclusion of the appeals process as set forth in Rule 67-60.009, F.A.C.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087 FS. History–New 12-23-96, Amended 1-6-98, Formerly 9I-48.0095, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.010 Terms and Conditions of SAIL Loans

(1) The proceeds of all SAIL loans shall be used for new construction or rehabilitation which creates or preserves affordable, safe and sanitary multifamily rental housing units.

(2) The SAIL loan may be in a first, second, or other subordinated lien position. For purposes of this rule, mortgages securing a letter of credit as credit enhancement for the bonds financing the first mortgage shall be considered a contingent liability and part of the first mortgage lien, provided that the Applicant’s counsel furnishes an opinion regarding the contingent nature of such mortgage satisfactory to the Corporation and its counsel.

(3) The loans shall be non-amortizing and shall have interest rates as provided in Section 420.507(22), F.S., and specified in an applicable competitive solicitation.

(4) Except as provided in Section 420.5087(5), F.S., the amount of any superior mortgages combined with the SAIL mortgage shall be less than the appraised value of the Development. Any debt service reserve requirement associated with a superior mortgage shall be excluded from the amount of the superior mortgage for purposes of this calculation.

(5) Payment on the loans shall be based upon the Development Cash Flow, as determined pursuant to the financial reporting requirements as provided in a competitive solicitation, or shall be due annually as determined by the Corporation’s Board of Directors. Such determination by the Board shall be based upon a written recommendation by the Credit Underwriter which has considered the economic and financial viability of the Development as well as the protection of the Corporation’s repayment of principal and interest. Any distribution or payment to the Principal(s) of the Applicant or Developer or any Affiliate of the Principal of the Applicant or Developer or any Affiliate of the Applicant or Developer, whether paid directly or indirectly, which was not expressly disclosed in determining the annual debt service coverage in the Board approved final credit underwriting report, with the exception of payment of the Developer Fee allowable to maximum of 20 percent per year, will be added back to the amount of cash available for the SAIL loan interest payment, pursuant to the financial reporting process, for the purpose of determining interest due. Interest may be deferred as set forth in subsection 67-48.010(8), F.A.C., without constituting a default on the loan.

(6) The loans described in subsection 67-48.010(3), F.A.C., above, shall be repaid from Development Cash Flow, and if the SAIL loan is not a first mortgage loan, each year, subject to the provisions of subsection 67-48.010(8), F.A.C., below, Development Cash Flow shall be applied to pay the following items in order of priority:

(a) All superior mortgage fees and debt service as calculated and disclosed in the Board approved final credit underwriting report;

(b) Development Expenses for the SAIL Development, plus up to 20 percent of total Developer Fees per year;

(c) Interest payment on SAIL loan balance equal to the percentage specified in the applicable competitive solicitation over the life of the SAIL loan;

(d) Interest payments on the SAIL loan deferred from previous years; and

(e) Mandatory payment on subordinate mortgages.

After the full SAIL loan interest has been paid, the Applicant shall retain all remaining monies, unless the Applicant chooses to prepay a portion of the loan balance.

(7) If the SAIL loan is secured by a first mortgage lien, each year, subject to the provisions of subsection 67-48.010(8), F.A.C., below, Development Cash Flow shall be applied to pay the following items in order of priority:

(a) First mortgage fees and interest payment on the SAIL loan balance equal to the percentage specified in the applicable competitive solicitation over the life of the SAIL loan;

(b) Development Expenses on the SAIL Development plus up to 20 percent of total Developer Fees per year;

(d) Mandatory payment on subordinate mortgages.

After the full SAIL loan interest has been paid, the Applicant shall retain all remaining monies, unless the Applicant chooses to prepay a portion of the loan balance.

(8) The determination of lien position, determination of Development Cash Flow, determination of payment priorities, and payment of interest on SAIL loans shall occur annually. A change in lien position from subordinate to first changes payment priorities. Any payments of accrued and unpaid interest due annually on SAIL loans shall be deferred to the extent that Development Cash Flow is insufficient to make said payments pursuant to the payment priority schedule established in this rule chapter. If Development Cash Flow is under-reported and such report causes a deferral of SAIL interest, such under-reporting shall constitute an event of default on the SAIL loan. A penalty of 5 percent of any required payment shall be assessed.

(a) By the date that is 151 Calendar Days after the Applicant’s fiscal year end of each year of the SAIL loan term, the Applicant shall provide the Corporation’s servicer with audited financial statements and a certification detailing the information needed to determine the annual payment to be made. However, this certification requirement will be waived until 151 Calendar Days after the Applicant’s fiscal year end following the fiscal year within which the first unit is occupied. In the case where the SAIL Development contained occupied units at the time of acquisition, the initial submission will be due following the fiscal year within which the 12 month anniversary of the SAIL loan closing is observed. The certification shall require submission of audited financial statements, the fully completed and executed annual reporting form, Financial Reporting Form SR-1, (Rev. 01-26), and any other financial reporting requirements as provided in a competitive solicitation. The Form SR-1, which is incorporated by reference and available from http://flrules.org/Gateway/reference.asp?No=Ref-19452, shall be submitted to the Corporation’s servicer in both PDF format and in electronic form as a Microsoft Excel spreadsheet. The audited financial statements are to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

Comparative Balance Sheet with prior year and current year balances,
Statement of revenue and expenses,
Statement of changes in fund balances or equity,
Statement of cash flows; and,
Notes to financial statements.

The financial statements referenced above should also be accompanied by a certification of the Applicant as to the accuracy of such financial statements. A late fee of $500 will be assessed by the Corporation for failure to submit the required audited financial statements and certification by 151 Calendar Days after the Applicant’s fiscal year end of each year of the SAIL loan term. If the Applicant has not submitted the required audited financial statements, the Corporation servicer shall deem the Development Cash Flow sufficient and issue a billing for interest due on the SAIL loan for the Applicant’s immediately preceding fiscal year by 212 Calendar Days after the Applicant’s fiscal year end. After receipt of the audited financial statements, the Corporation servicer shall issue revised billing, if necessary. Failure to submit the required audited financial statements and certification by 151 Calendar Days after the Applicant’s fiscal year end of each year of the SAIL loan term shall constitute an event of default on the SAIL loan. The Applicant shall furnish to the Corporation or its servicer, unaudited statements, certified by the Applicant’s principal financial or accounting officer, covering such financial matters as the Corporation or its servicer may reasonably request, including without limitation, monthly statements with respect to the Development.

For SAIL loans applied for prior to February 22, 2001, the Corporation will extend the annual filing deadline for submission of the audited financial statements and certification detailing the information needed to determine the annual payment to be made, pursuant to subsection 67-48.010(8), F.A.C., to May 31 of each year of the SAIL loan term. The Corporation servicer shall issue a billing for interest due on the SAIL loan for the immediately preceding calendar year by July 31 of each calendar year of the SAIL loan. In addition, for SAIL loans applied for prior to December 23, 1996, so long as the executed loan agreements contain a provision to assess a late fee for failure to provide the audited financial statement and certification detailing the information needed to determine the annual payment due, such fee will be assessed by the Corporation as outlined above.

(b) The Corporation servicer shall issue a billing for interest due on the SAIL loan for the Applicant’s immediately preceding fiscal year by 212 Calendar Days after the Applicant’s fiscal year end of each year of the SAIL loan term.

(c) The Applicant shall remit the interest due to the Corporation servicer no later than 243 Calendar Days after the Applicant’s fiscal year end of each year of the SAIL loan term. The first payment of SAIL interest will be due no later than 243 Calendar Days after the Applicant’s fiscal year end following the fiscal year within which the first unit is occupied. The first payment of interest shall include all interest for the period which begins accruing on the date of the first Draw and ends on the date of the Applicant’s fiscal year end of the fiscal year during which the first unit is occupied.

(9) After maturity or acceleration, the Note shall bear interest at its default interest rate, as provided therein, from the due date until paid. Unless the Corporation has accelerated the SAIL loan, the Applicant shall pay the Corporation a late charge of 5 percent of any required payment that is not received by the Corporation within 15 days of the due date.

(10) The final billing for the purpose of payoff of the SAIL loan shall also include a billing for compliance fees to cover monitoring of SAIL Program requirements beyond the maturity date of the Note. Such fees shall be computed by determining the present value of the annual compliance monitoring fee for the number of years for which the Development will have a set-aside for Very Low-Income persons or households beyond the repayment date. The applicable present value discount rate will be determined by the rule in effect at the time of the SAIL loan payoff. Such amount shall be reduced by the amount of any compliance monitoring fees for other programs collected by the Corporation for the Development for the period, provided:

(a) The compliance monitoring fee covers some or all of the period following the anticipated SAIL loan repayment date; and

(b) The Development has substantially equivalent set-asides for Very Low-Income persons or households mandated through another Corporation program for which the compliance monitoring fee was collected.

(11) The SAIL loans shall be serviced either directly by the Corporation or by the servicer on behalf of the Corporation.

(12) The Corporation shall monitor compliance of all terms and conditions of the SAIL loan and shall require that certain terms and conditions be embodied in the Land Use Restriction Agreement and recorded in the public records of the county wherein the Development is located. Violation of any material term or condition of the documents evidencing or securing the SAIL loan shall constitute a default during the term of the SAIL loan. The Corporation shall take appropriate legal action to effect compliance if a violation of any material term or condition relative to the set-asides of units for Very Low-Income persons or households is discovered during the course of compliance monitoring or by any other means.

(13) The Corporation shall require adequate insurance to be maintained on the Development as determined by the first mortgage lender, the Corporation, or the Corporation’s servicer, but which shall, in any case, include fire, hazard and other insurance as required by the terms and conditions outlined in a competitive solicitation.

(14) The SAIL loan term shall be for a period of not more than 15 years. However, if both a SAIL loan and federal Housing Credits are to be used to assist a Development, the Corporation may set the SAIL loan term for a period commensurate with the investment requirements associated with the Housing Credit syndication. The term of the loan may also exceed 15 years if the lien of the Corporation’s encumbrance is subordinate to the lien of another mortgagee, in which case the term may be made coterminous with the longest term of the superior loan, or if the Development is financed with a government sponsored enterprise or is financed with a securitized first mortgage loan, in which the term may be extended up to six months.

(15) After accepting a firm commitment, the Applicant shall not refinance, increase the principal amount, or alter any terms or conditions of any mortgage superior or inferior to the SAIL mortgage without prior approval of the Corporation. With regard to said approval, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of the Applicant’s request, inclusive of market circumstances outside of the Applicant’s control. If the Corporation’s decision is to deny the Applicant’s request, the Board shall consider the facts and circumstances of the Applicant’s request and the Corporation’s denial, and make a determination of whether to grant the request. An Applicant may reduce the interest rate on any superior or inferior mortgage loan without the Board’s permission, provided that no other terms of the loan are changed. The Corporation must be notified in writing of any such change.

Following construction completion, the Corporation will recommend that the Board deny any requests to increase the amount of any superior mortgage, unless the criteria outlined in subsection 67-48.0105(5), F.A.C., are met, the original combined loan to value ratio for the superior mortgage and the SAIL mortgage is maintained or improved, and a proportionate amount of the increase in the superior mortgage is used to reduce the outstanding SAIL loan balance. To calculate the proportionate amount of the increase in the superior mortgage which must be paid toward the reduction of the SAIL loan balance, the following calculation shall be used: divide the amount of the original SAIL mortgage by the combined amount of the original SAIL mortgage and the original superior mortgage; then multiply the quotient by the amount of the increase in the superior mortgage from the current balance. For example, if the amount of the original SAIL mortgage is $2,000,000, the original superior mortgage is $4,400,000, with a current balance of $3,000,000, a proposed new superior mortgage of $5,000,000, then the amount of the increase in the superior mortgage would be $2,000,000, and the proportionate amount of the increase in the superior mortgage which must be paid toward the reduction of the SAIL loan balance would be $625,000. This $625,000 would be applied first to accrued interest and then to principal.

(16) All SAIL loans shall be in conformance with applicable federal and state statutes. The Corporation shall allow units dedicated to occupancy by the Elderly in a Development designed for occupancy by elderly households pursuant to authorization by HUD under the Fair Housing Amendments of 1988 as implemented by 24 CFR Part 100.

(17) Rent controls are determined in a manner consistent with Section 42(g)(2) of the IRC. The gross monthly rent shall not exceed 30 percent of the imputed income limitation applicable to such unit as committed to by the Applicant in its Application.

(18) The documents creating, evidencing or securing each SAIL loan must provide that any violation of the terms and conditions described in rule Chapter 67-48, F.A.C., any competitive solicitation, or both, constitutes a default under the SAIL loan documents allowing the Corporation to accelerate its loan and to seek foreclosure as well as any other remedies legally available to it.

(19) A failure to pay any principal or interest due under the terms of this section shall constitute a default on the SAIL loan.

(20) If, after a four-month rent-up period commencing after issuance of the last certificate of occupancy on the units, an Applicant is unable to meet the agreed-upon demographic commitment for Elderly, Homeless, Persons with Special Needs, Farmworker or Commercial Fishing Worker, the Applicant may request to rent such units to Very Low-Income persons or households without demographic restriction.

(a) The written request must provide documentation of marketing efforts implemented over the past four-month period which demonstrate the inclusion of sources of potential residents, advertising to be used, other means of encouraging residents to rent at the Development, and priority to the original targeted group of residents. If the Corporation determines that prior marketing efforts were insufficient, a revised plan which is satisfactory to the Corporation must be submitted and implemented for a four-month period prior to reconsideration.

(b) The Corporation will recommend that the Board require that Applicants provide additional amenities or resident programs suitable for the proposed resident population.

(c) The Corporation will recommend that the Board require that Applicants to modify loan documents to conform to the terms and conditions, including the interest rate, as outlined in the competitive solicitation, or to accelerate payments of SAIL loan principal or interest.

(21) Failure to provide the Corporation and its servicer with any financial reporting required in a competitive solicitation detailing the information needed to determine the annual payment to be made pursuant to this rule chapter shall constitute a default on the SAIL loan.

(22) For SAIL loans applied for prior to March 17, 2002, at the borrower’s request, the Corporation will include up to 20 percent of total Developer Fees per year as a Development Expense when calculating the interest due on the SAIL loan for the 2003 calendar year for the billing issued in 2004 and for the billing for interest due each calendar year thereafter. Development Expense will not include Developer Fees for determination of payment of interest on SAIL loans applied for prior to March 17, 2002 for the 2002 calendar year or any previous calendar year. For purposes in this paragraph, Development Expense has the same meaning as Project Expense and Eligible Project Expense as those terms are used in SAIL loans applied for prior to March 17, 2002.

(23) The Compliance Period for a SAIL Development shall be, at a minimum, a period of time equal to the greater of:

(a) The term of the loan,

(b) 12 years from the date the first residential unit is occupied, or

(24) Unless and until a guarantor’s obligations for a SAIL loan are terminated as approved in writing by the Corporation or its servicer, each guarantor shall furnish to the Corporation or its servicer financial statements as provided in paragraphs (a) through (c), below, as the Corporation or its servicer may reasonably request.

(a) The audited financial statements are to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

Comparative Balance Sheet with prior year and current year balances,
Statement of revenue and expenses,
Statement of changes in fund balances or equity,
Statement of cash flows; and,
Notes to financial statements.

The financial statements referenced above should also be accompanied by a certification of the guarantor(s) as to the accuracy of such financial statements; or

(b) If an audited financial statement has not been prepared, a federal income tax return filed for the most recently completed year, or

(c) For individual guarantors, if an audited financial statement is not available a financial statement certified as true and complete without qualification by such guarantor and a copy of the most recently filed individual federal income tax return.

(25) Any SAIL Applicant from SAIL Application cycles with non-amortizing loans at 9 percent simple interest per annum with payments based on Development Cash Flow pursuant to the applicable cycle rule, may submit a written renegotiation request to the Corporation to modify their SAIL loan interest rate going forward from 9 percent simple interest per annum to 3 percent simple interest per annum with payments based on Development Cash Flow pursuant to subsections 67-48.010(5)-(10), F.A.C., in exchange for providing a payment to the Corporation of the deferred interest based on an accrual rate of 3 percent simple interest per annum in no more than five (5) equal annual installments but in no event shall it be later than the maturity date of the loan. Payments made from Development Cash Flow, shall be included as Development Expenses as stated in paragraph 67-48.010(6)(b), F.A.C. All loan renegotiation requests must be submitted in writing to the Special Assets Director. In addition to any related professional fees, the Corporation shall charge a non-refundable renegotiation fee as outlined in the most current competitive solicitation. The Corporation shall not proceed with the request until the Applicant or Developer has satisfied any financial obligations for which the Applicant or Developer, or Principal, Affiliate or Financial Beneficiary of the Applicant or Developer is in arrears to the Corporation or any agent or assignee of the Corporation.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.010, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, Repromulgated 6-23-20, Amended 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.0105 Sale, Transfer or Refinancing of a SAIL Development

(1) Any sale, conveyance, assignment, or other transfer of interest or the grant of a security interest in all or any part of the title to the Development other than a superior mortgage shall be subject to the Corporation’s prior written approval. The Board shall consider the facts and circumstances of each Applicant’s request and any credit underwriting report, if available, prior to determining whether to grant such request.

(2) The SAIL loan shall be assumable upon sale or transfer of the Development if the following conditions are met:

(a) The proposed transferee meets all specific Applicant identity criteria which were required as conditions of the original loan;

(b) The proposed transferee agrees to maintain all set-asides and other requirements of the SAIL loan for the period originally specified or longer; and,

(c) The proposed transferee and release of transferor receives a favorable recommendation from the Credit Underwriter and approval by the Board of Directors of the Corporation.

All assumption requests must be submitted in writing to the Special Assets Director and contain the specific details of the transfer and assumption. In addition to any related professional fees, the Corporation shall charge a non-refundable assumption fee of one-tenth of one percent of the SAIL loan principal amount. The applicable fee will be determined by the rule in effect at the time of the assumption request.

(3) If the SAIL loan is not assumed since the buyer does not meet the criteria for assumption of the SAIL loan, the SAIL loan (principal and any outstanding interest) shall be repaid from the proceeds of the sale in the following order of priority:

(a) First mortgage debt service, first mortgage fees;

(b) SAIL compliance and loan servicing fees;

(c) An amount equal to the present value of the compliance monitoring fee for the periods for which the Development will have a set-aside for Very Low-Income persons or households beyond the repayment date. Such amount shall be reduced by the amount of any compliance monitoring fees collected by the Corporation for the Development for that period, provided:

The compliance monitoring fee covers some or all of the period following the anticipated SAIL repayment date; and,
The Development has substantially equivalent set-asides for Very Low-Income persons or households mandated through another program of the Corporation for which the compliance monitoring fee was collected.

(d) Unpaid principal balance of the SAIL loan;

(e) Any interest due on the SAIL loan;

(f) Expenses of the sale;

(g) If there will be insufficient funds available from the proposed sale of the Development to satisfy paragraphs (3)(a)-(f), above, the SAIL loan shall not be satisfied until the Corporation has received:

An appraisal prepared by an appraiser selected by the Corporation or the Credit Underwriter indicating that the purchase price for the Development is reasonable and consistent with existing market conditions,
A certification from the Applicant that the purchase price reported is the actual price paid for the Development, as supported by a copy of the final executed purchase and sale agreement, and that no other consideration passed between the parties, as supported by a draft and final closing statement, and that the Development Cash Flow reported to the Corporation during the term of the SAIL loan was true and accurate,
A certification from the Applicant that there are no Development funds available to repay the SAIL loan, including any interest due, and the Applicant knows of no source from which funds could or would be forthcoming to pay the SAIL loan; and,
A certification from the Applicant detailing the information needed to determine the final billing for SAIL loan interest. Such certification shall require submission of financial statements and other documents that may be required by the Corporation and its servicer.

(4) The Corporation may renegotiate and extend the loan in order to extend or retain the availability of housing for the target population. Such renegotiations shall be based upon:

(a) Performance of the Applicant during the SAIL loan term;

(b) Availability of similar housing stock for the target population in the area;

(d) A plan for the repayment of the loan at the new maturity date;

(e) Assurance that the security interest of the Corporation will not be jeopardized by the new term(s); and,

(f) Industry standard terms which may include amortizing loans requiring regularly scheduled payments of principal and interest.

All loan renegotiation requests must be submitted in writing to the Special Assets Director and contain the specific details of the renegotiation. In addition to any related professional fees, the Corporation shall charge a non-refundable renegotiation fee of one-half of one percent of the SAIL loan principal amount. The applicable fee will be determined by the rule in effect at the time of the renegotiation request. All loan extension requests must be submitted in writing to the Special Assets Director and contain the specific details of the extension. In addition to any related professional fees, the Corporation shall charge a non-refundable extension fee of one-tenth of one percent of the SAIL loan principal amount. The applicable fee will be determined by the rule in effect at the time of the extension request.

(5) The Corporation will recommend that the Board approve requests for mortgage loan refinancing only if Development Cash Flow is improved, the Development’s economic viability is maintained, the security interest of the Corporation is not adversely affected, and the Credit Underwriter provides a positive recommendation.

(6) The Corporation will recommend that the Board deny any requests for mortgage loan refinancing which require extension of the SAIL loan term or otherwise adversely affect the security interest of the Corporation, unless the criteria outlined in subsection 67-48.0105(5), F.A.C., are met, the Credit Underwriter recommends that the approval of such a request is crucial to the economic survival of the Development, or unless the Board determines that public policy will be better served by the extension as a result of the Applicant agreeing to further extend the Compliance Period or provide additional amenities or resident programs suitable for the resident population. Further, the Corporation will recommend that the Board limit any approved extension to a minimum term which makes the Development feasible and which does not exceed an industry standard term.

The Corporation will recommend that the Board deny any requests to increase the amount of any superior mortgage, unless the criteria outlined in subsection 67-48.010(15), F.A.C., are met, the original combined loan to value ratio for the superior mortgage and the SAIL mortgage is maintained or improved, and a proportionate amount of the increase in the superior mortgage is used to reduce the outstanding SAIL loan balance.

All requests which only require subordination of the regulatory agreements must be submitted in writing to the Special Assets Director and contain the specific details of the subordination. In addition to any related professional fees, the Corporation shall charge a non-refundable subordination fee of $1,000 for each regulatory agreement to be subordinated. The applicable fee will be determined by the rule in effect at the time of the subordination request.

All requests which only require extension of the affordability period under the regulatory agreements must be submitted in writing to the Special Assets Director and contain the specific details of the extension. In addition to any related professional fees, the Corporation shall charge a non-refundable extension fee of $1,000 for each extension of the regulatory agreement. The applicable fee will be determined by the rule in effect at the time of the extension request.

History

Rulemaking Authority 420.507(12), (44), 420.508(3)(c) FS. Law Implemented 420.5087 FS. History–New 12-23-96, Amended 1-6-98, Formerly 9I-48.0105, Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, Repromulgated 2-7-05, Amended 1-29-06, 4-1-07, Repromulgated 3-30-08, Amended 8-6-09, Repromulgated 11-22-11, Amended 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, Repromulgated 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.012 SAIL Credit Underwriting and Loan Procedures

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087, 420.5087(6)(e) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.012, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-48.013 SAIL Construction Disbursements and Permanent Loan Servicing

(1) SAIL loan proceeds shall be disbursed during the construction phase in an amount per Draw which does not exceed the ratio of the SAIL loan to the Total Development Cost, unless approved by the Corporation and the Credit Underwriter.

(2) Ten (10) business days prior to each Draw, the Applicant shall supply the Corporation’s servicer, as agent for the Corporation, with a written request executed by the Applicant for a Draw. The request shall set forth the amount to be paid and shall be accompanied by documentation specified by the Corporation’s servicer including claims for labor and materials to date of the last inspection.

(3) The Corporation and its servicer shall review the request for a Draw, and the servicer shall provide the Corporation with approval of the request or an alternative recommendation, after the title insurer provides an endorsement to the policy of title insurance updating the policy to the date of the current Draw and increasing the insurance coverage to an amount equal to the sum of all prior Draws and the current Draw.

(4) The Corporation shall disburse construction Draws through Automated Clearing House (ACH). The Applicant may request disbursement of construction Draws via a wire transfer. The Applicant will be charged a fee of $10 for each wire transfer requested. This charge will be netted against the Draw amount.

(5) The Corporation shall elect to withhold any Draw or portion of any Draw, notwithstanding any documentation submitted by the Applicant in connection with the request for a Draw, if:

(a) The Corporation or the Corporation’s servicer determines at any time that the actual cost budget or progress of construction differs from that as shown on the loan documents, or

(b) The percentage of progress of construction of the improvements differs from that shown on the request for a Draw.

(6) The servicer may request submission of revised construction budgets.

(7) Based on the Applicant’s progress of construction, if the Corporation determines that further analysis by the Credit Underwriter is required prior to the release of the final Draw, the Applicant shall pay to the Credit Underwriter a fee based on an hourly rate determined pursuant to the contract between the Corporation and the Credit Underwriter.

(8) Retainage in the amount of 10 percent per Draw shall be held by the servicer during construction until the Development is 50 percent complete. At 50 percent completion, no additional retainage shall be held from the remaining Draws. Release of funds held by the Corporation’s servicer as retainage shall occur pursuant to the SAIL loan agreement.

PART III HOME INVESTMENT PARTNERSHIPS PROGRAM

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5087 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.013, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, 2-7-05, 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, Repromulgated 10-8-14, Amended 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.014 HOME General Program Procedures and Restrictions

(1) Unless otherwise provided in a competitive solicitation, the Corporation shall utilize up to 10 percent of the HOME allocation for administrative costs pursuant to 24 CFR Part 92.

(2) The Corporation shall utilize at least 15 percent of the HOME allocation for CHDOs pursuant to 24 CFR Part 92. In order to apply under the CHDO set-aside, the CHDO must meet all CHDO requirements as defined by HUD in 24 CFR Part 92 and other Corporation requirements identified in a competitive solicitation.

(3) For any rental funding administered pursuant to rule Chapter 67-48, F.A.C., the Corporation will distribute funds as provided in the applicable competitive solicitation.

(4) The maximum per-unit subsidy amount of HOME funds that the Corporation shall invest on a per-unit basis in affordable housing shall not exceed the per-unit dollar limits established by the Corporation as identified in the applicable competitive solicitation.

(5) The minimum amount of HOME funds that must be invested in a Rental Development is $1,000 times the number of HOME-Assisted Units in the Development.

(6) A Development qualifies as affordable housing and for HOME funds if, with respect to income and occupancy:

(a) 80 percent of the HOME-Assisted Units are occupied by families whose annual income does not exceed 60 percent of the median family income for the area, as determined by HUD, with adjustments for family size; and,

(b) 20 percent of the HOME-Assisted Units are occupied by families whose annual income does not exceed 50 percent of the median family income for the area, as determined by HUD, with adjustments for family size.

(c) When the income of a resident increases above 80 percent of area median income, the next unit that becomes available in the Development must be rented to a HOME income-eligible resident. If the income of a Very Low-Income household increases above the limits for a Very Low-Income household, then the Developer must rent the next available unit to a Very Low-Income household. The amount of rent the resident whose income has increased must pay is the lesser of the amount payable by resident under state or local law or 30 percent of the adjusted monthly income for rent and utilities.

(d) High HOME rent means 80 percent of the HOME-Assisted Units in a Development must have rents set at no more than the lesser of the Section 8 Fair Market Rent (FMRs) or rents that are 30 percent of the gross income of a Family at 65 percent of median income limit, minus utility allowance. Low HOME rent means 20 percent of the HOME-Assisted Units in a Development must have rents set at no more than the lesser of the Section 8 Fair Market Rent (FMRs), or 30 percent of the gross income of a Family at 50 percent of the area median income, minus utility allowance. The rent limits for a HOME Rent-Restricted Unit is the maximum gross rent that can be charged for a HOME Rent-Restricted Unit (FMRs, 30 percent of the gross income of a family at 65 percent of median income, or 30 percent of the gross income of a family at 50 percent of the area median income), less the applicable utility allowance. These rent limits are published in HUD periodically, HOME-Assisted Units with Section 8 subsidy must compare the Section 8 gross rent (resident rent, subsidy amount, and utility allowance) to the maximum applicable HOME high or low rent limit minus utilities. However, Developments with project-based rental assistance may utilize the project-based rents as compared to the HOME High and Low rents. Compliance with the HOME rent restrictions will take precedence over the Developer’s acceptance of a full Section 8 (resident-based) subsidy for the HOME-Assisted Units. However, if a HOME Rent-Restricted Unit receives federal or state project-based rental subsidy and the Family’s contribution toward rent does not exceed 30 percent of the Family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the federal or state project-based rental subsidy program.

(e) The minimum Compliance Period for Rehabilitation Developments is 15 years from Project Completion as defined in 24 CFR §92.2.

The set-aside requirements apply beginning on the later of the first day on which any residential unit in the Development is occupied or the HOME loan closing date. The Compliance Period will be extended until the later of such longer term agreed to by the Applicant in its Application or the loan is repaid as enumerated in subsection 67-48.020(1), F.A.C.

(f) The minimum Compliance Period for newly-constructed rental housing is 20 years from Project Completion as defined in 24 CFR §92.2. The set-aside requirements apply beginning on the later of the first day on which any residential unit in the Development is occupied or the HOME loan closing date. The Compliance Period will be extended until the later of such longer term agreed to by the Applicant in its Application or the loan is repaid as enumerated in subsection 67-48.020(1), F.A.C.

(g) The minimum percentage of HOME-Assisted Units within a Development must be at least equal to the percentage (ratio) calculated by dividing the HOME loan amount by the Total Development Cost. This percentage will be utilized to determine the minimum number of HOME-Assisted Units required within a Development. HOME-Assisted Units must be identified at the time of Application. For purposes of meeting affordable housing requirements for a Development, the HOME-Assisted Units counted may be changed over the Compliance Period, so long as the total number of HOME-Assisted Units remains the same, and the substituted units are, at a minimum, comparable in terms of size, features, and number of bedrooms to the original HOME-Assisted Units.

(h) The Development will remain affordable, pursuant to commitments documented within the executed Land Use Restriction Agreement without regard to the term of the mortgage or to transfer of ownership.

(7) The Development must comply with all applicable provisions of 24 CFR Part 92, rule Chapter 67-48, F.A.C., and any competitive solicitation process.

(8) A Development that is under construction may be eligible to apply for HOME funds only if the final building permit is dated no earlier than six (6) months prior to the submission deadline for the applicable competitive solicitation, the Development is able to provide evidence of compliance with federal labor standards (if 12 or more units are developed under a single contract) for any work already completed, and the Development is able to provide evidence of compliance with HUD environmental requirements as well as all other federal HOME regulations as listed in Rule 67-48.014, F.A.C., and 24 CFR Part 92. The federal requirements may require completion of activities prior to submission of an Application for HOME funding.

(9) Any single contract for the development (rehabilitation or new construction) of affordable housing with 12 or more units under the HOME Program must contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the United States Secretary of Labor pursuant to the Davis-Bacon Act, 40 U.S.C. §§3142 – 3144, 3146 and 3147 (2002), 24 CFR §92.354, 24 CFR Part 70 (volunteers), and 40 U.S.C. §3145 (2002), will be paid to all laborers and mechanics employed for the construction or rehabilitation of the Development, and such contracts must also be subject to the overtime provisions of the Contract Work Hours and Safety Standards Act, 40 U.S.C. §§3701 – 3706 and 3708 (2002), the Copeland Act (Anti-Kickback Act), 40 U.S.C. §3145 (2002), and the Fair Labor Standards Act of 1938, as amended (29 U.S.C. §201 et seq.).

(10) All HOME Developments must conform to the following federal requirements:

(a) Equal Opportunity and Fair Housing as enumerated in 24 CFR §92.202 and 92.251, Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq.), Fair Housing Act (42 U.S.C. §§3601-3619), Age Discrimination Act of 1975, as amended (42 U.S.C. §6101), Executive Order 11063 (amended by Executive Order 12259), and 24 CFR §5.105(a).

(b) Affirmative Marketing as enumerated in 24 CFR §92.351.

(d) Displacement, Relocation, and Acquisition as enumerated in 24 CFR §92.353, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§4201-4655), 49 CFR Part 24, 24 CFR Part 42 (Subpart C), and Section 104(d) “Barney Frank Amendments.”

(e) Lead-based Paint as enumerated in 24 CFR §92.355 and 24 CFR Part 35.

(f) Conflict of Interest as enumerated in 24 CFR §92.356, 2 CFR §200.317 and 2 CFR §200.318.

(g) Debarment and Suspension as enumerated in 24 CFR Part 24.

(h) Handicapped Accessibility as enumerated in Section 504 of the Rehabilitation Act of 1973 (implemented in 24 CFR Part 8) and 24 CFR §100.205.

(i) Americans with Disabilities Act as enumerated in 42 U.S.C. §12131; and 47 U.S.C. §§155, 201, 218 and 225.

(j) Equal Opportunity Employment as enumerated in Executive Order 11246 (implemented in 41 CFR Part 60).

(k) Economic Opportunity for Low- and Very Low-Income Persons as implemented in 24 CFR Part 75.

(l) Minority/Women Employment as enumerated in 2 CFR §200.321 and Executive Orders 11625, 12432, and 12138.

(m) Site and Neighborhood Standards as enumerated in 24 CFR §92.202.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(2) FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.014, Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.015 Match Contribution Requirement for HOME Allocation

(1) The Corporation is required by HUD to match non-federal funds to the HOME allocation as specified in 24 CFR Part 92.

(2) A Match Credit Fund funded by the state of Florida has been appropriated to the Corporation. The funds are to be used for demonstration Developments, pilot programs, or other Developments selected and approved by the Corporation’s Board of Directors. Such pilot programs or Developments shall be counted as the Corporation’s required match for HUD purposes and may be any eligible activity acceptable to 24 CFR Part 92 and approved by the Corporation’s Board of Directors.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(4) FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.015, Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.017 Eligible HOME Activities

HOME funds may be used for acquisition (must include new construction and/or Rehabilitation), new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities or for tenant based rental assistance pursuant to 24 CFR Part 92.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(5) FS. History–New 7-22-96, Repromulgated 12-23-96, 1-6-98, Formerly 9I-48.017, Amended 11-9-98, Repromulgated 2-24-00, 2-22-01, 3-17-02, Amended 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.018 Eligible HOME Applicants

(1) Unless otherwise permitted in a competitive solicitation process, an Applicant is not eligible to apply for HOME Program funding if any of the following pertain to the proposed Development:

(a) The proposed Development has received an allocation of Housing Credits or a Competitive Housing Credit commitment, unless written notice has been provided to the Corporation prior to the deadline to apply for the applicable HOME funding withdrawing acceptance of such allocation or commitment and returning the previously awarded HC funding;

(b) A preliminary commitment of funding for the proposed Development through the HOME Program or the SAIL Program has already been accepted, unless written notice has been provided to the Corporation prior to the deadline to apply for the new HOME funding withdrawing such acceptance and returning the prior HOME Program or SAIL Program funding; or

(c) The proposed Development site or any part thereof is subject to any Land Use Restriction Agreement or Extended Use Agreement, or both, in conjunction with any Corporation affordable housing financing intended to foster the development or maintenance of affordable housing, unless at least one (1) of the following applies:

A LURA recorded in conjunction with the Predevelopment Loan Program or the Elderly Housing Community Loan Program, or
A LURA or EUA, or both, for an existing building or buildings, originally constructed at least 25 years prior to the deadline to apply for the applicable HOME funding, where, in the current Application, the Applicant has selected and qualified for the Homeless demographic commitment with a Development category of Rehabilitation, Acquisition and Rehabilitation, Preservation or Acquisition and Preservation.

(2) Applicants for HOME loans may include CHDOs, Public Housing Authorities, Local Governments, Non-Profit organizations, and private for-profit organizations. The Applicant must be a legally-formed, existing entity at the time of Application. Pursuant to 24 CFR Part 92, Applicants may not request additional HOME funding during the period of affordability.

(3) For tenant based rental assistance, eligible Public Housing Authorities or their designees, who are Section Eight administrators, shall be limited to those Public Housing Authorities that provide a copy of their most recent Section Eight Management Assessment Program (SEMAP) and can demonstrate compliance with 24 CFR §982.401.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(5) FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.018, Amended 11-9-98, Repromulgated 2-24-00, 2-22-01, Amended 3-17-02, 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, Repromulgated 9-15-16, Amended 5-24-17, Repromulgated 7-8-18, Amended 7-11-19, Repromulgated 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.019 Eligible and Ineligible HOME Development Costs

(1) HOME funds may be used to pay for the following eligible costs as enumerated in 24 CFR Part 92:

(a) Development hard costs as they directly relate to the identified HOME-Assisted Units only for:

New construction, the costs necessary to meet all applicable local and state codes, ordinances, and zoning requirements. Note that 24 CFR §92.251 requires that HOME-Assisted new construction projects must meet state or local residential and building codes, as applicable or, in the absence of a state or local building code, the International Residential Code or International Building Code (as applicable to the type of housing) of the International Code Council,
Rehabilitation, the costs necessary to meet all applicable local and state codes, ordinances, and requirements or, in the absence of a state or local building code, the International Existing Building Code of the International Code Council and Uniform Physical Condition Standards pursuant to 24 CFR 5.705,
Both new construction and rehabilitation, costs to demolish existing structures, improvements to the Development site and utility connections;

(b) The cost of acquiring improved or unimproved real property. A HOME Development and HOME loan that involves acquisition must include Rehabilitation or new construction in order to be an eligible Development.

(c) Soft costs as they relate to the identified HOME-Assisted Units. The costs must be reasonable, as determined by the Corporation and the Credit Underwriter, and associated with the financing, development, or both. These costs may include:

Architectural, engineering or related professional services required to prepare plans, drawings, specifications or work write-ups,
Costs to process and settle the HOME financing for a Development, such as credit reports, fees for evidence of title, recordation, building permits, attorney fees, cost certifications, and estimates,
Developer’s and General Contractor’s fees as described in Rule 67-48.0072, F.A.C.,
Impact fees,
Costs of Development audits required by the Corporation,
Affirmative marketing and fair housing costs,
Temporary relocation costs as required under 24 CFR Part 92.

(2) HOME funds shall not be used to pay for the following ineligible costs:

(a) Development reserve accounts for replacements, unanticipated increases in operating costs, or operating subsidies, except as described in 24 CFR §92.206(d)(5);

(b) Public housing;

(d) Any other expenses not allowed under 24 CFR Part 92.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(5) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.019, Amended 11-9-98, 2-24-00, Repromulgated 2-22-01, Amended 3-17-02, 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, Amended 10-8-14, 9-15-16, Repromulgated 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.020 Terms and Conditions of Loans for HOME Rental Developments

All HOME Rental Development loans shall be in compliance with the Act, 24 CFR Part 92 and, at a minimum, contain the following terms and conditions:

(1) The HOME loan may be in a first, second, or subordinated lien position. The term of the loan shall be for a minimum period of 15 years for Rehabilitation Developments and 20 years for new construction Developments. The term of the HOME loan may be extended upon the recommendation of the Credit Underwriter and approval by the Corporation. With regard to said approval, the Corporation shall consider the facts and circumstances, inclusive of the financial feasibility of the Development.

(2) The annual interest rate shall be as specified in an applicable competitive solicitation.

(3) The loans shall be non-amortizing and repayment of principal shall be deferred until maturity, unless otherwise recommended by the Credit Underwriter and approved by the Corporation. Unless otherwise provided in any competitive solicitation, the Corporation will consider the facts and circumstances, inclusive of the financial feasibility of the Development.

(a) For HOME Developments that are not at least partially financed with a MMRB Loan (as defined in rule Chapter 67-21, F.A.C.), interest payments on the loan shall be paid to the Corporation’s servicer annually on the date specified in the Note.

(b) For HOME Developments that are at least partially financed with a MMRB Loan (as defined in rule Chapter 67-21, F.A.C.) where the HOME loan closed after February 20, 2011:

Payment on the loans shall be based upon the Development Cash Flow as determined pursuant to the financial reporting requirements as provided in a competitive solicitation, or shall be due annually as determined by the Corporation’s Board of Directors. Such determination by the Board shall be based upon a written recommendation by the Credit Underwriter which has considered the economic and financial viability of the Development as well as the protection of the Corporation’s repayment of principal and interest. Any distribution or payment to the Principal(s) of the Applicant or Developer or any Affiliate of the Principal of the Applicant or Developer or any Affiliate of the Applicant or Developer, whether paid directly or indirectly, which was not expressly disclosed in determining debt service coverage in the Board approved final credit underwriting report, with the exception of payment of the Developer Fee allowable to maximum of 20 percent per year, will be added back to the amount of cash available for the HOME loan interest payment, pursuant to the financial reporting process, for the purpose of determining interest due. Interest may be deferred as set forth in subparagraph 3. below, without constituting a default on the loan.
The HOME loans shall be repaid from all Development Cash Flow, and Development Cash Flow shall be applied to pay the following items in order of priority:

a. All superior mortgage fees and debt service,

b. Development Expenses for the HOME Development plus up to 20 percent of total Developer Fees per year,

c. Interest payment on HOME loan balance as stated in subsection 67-48.020(2), F.A.C., over the life of the HOME loan,

d. Interest payments on the HOME loan deferred from previous years,

e. Mandatory payment on subordinate mortgages.

After the full HOME loan interest has been paid, the Applicant shall retain all remaining monies, unless the Applicant chooses to prepay a portion of the loan balance.

The determination of Development Cash Flow, determination of payment priorities, and payment of interest on HOME loans shall occur annually. Any payments of accrued and unpaid interest due annually on HOME loans shall be deferred to the extent that Development Cash Flow is insufficient to make said payments pursuant to the payment priority schedule established in this rule chapter. If Development Cash Flow is under-reported and such report causes a deferral of HOME interest, such under-reporting shall constitute an event of default on the HOME loan. A penalty of 5 percent of any required payment shall be assessed.

(4) As approved by the Board of Directors, loans which finance demonstration Developments or Developments located in a state or federally declared disaster area may be provided with forgivable terms.

(5) The accumulation of all Development financing, including the HOME loan and all existing debt within a Development, may not exceed the Total Development Cost, as determined and certified by the Credit Underwriter.

(6) Before disbursing any HOME funds, there must be a written agreement with the Applicant ensuring compliance with the requirements of the HOME Program pursuant to this rule chapter and 24 CFR Part 92.

(7) A representative of the Applicant and the managing company of the Development must attend a Corporation-sponsored training session on income certification and compliance procedures.

(8) If the Development has 12 or more units to be developed under a single contract, the General Contractor and all available subcontractors shall attend a Corporation-sponsored preconstruction conference regarding federal labor standards provisions.

(9) The Corporation shall require adequate insurance to be maintained on the Development as determined by the first mortgage lender, the Corporation, or the Corporation’s servicer, but which shall, in any case, include fire, hazard and other insurance as required by the terms and conditions outlined in a competitive solicitation.

(10) All loans must provide that any violation of the terms and conditions described in this rule chapter or 24 CFR Part 92 constitute a default under the HOME loan documents allowing the Corporation to accelerate its loan and seek foreclosure as well as any other remedies legally available to it.

(11) If a default on a HOME loan occurs, the Corporation will commence legal action to protect the interest of the Corporation. The Corporation shall acquire real and personal property or any interest in the Development if that acquisition is necessary to protect any HOME loan; sell, transfer, and convey any such property to a buyer without regard to the provisions of Chapters 253 and 270, F.S.; and, if that sale, transfer, or conveyance cannot be consummated within a reasonable time, lease the Development for occupancy by Eligible Persons.

(12) The Corporation or its servicer shall monitor the compliance of each Development with all terms and conditions of the HOME loan and shall require that such terms and conditions be recorded in the public records of the county where the Development is located. Violation of any term or condition shall constitute a default during the term of the HOME loan.

(13) The Applicant shall not refinance, increase the principal amount, or alter any terms or conditions of any mortgage superior or inferior to the HOME mortgage without prior approval of the Corporation. With regard to said approval, the Corporation shall require an analysis from the Credit Underwriter and consider the facts and circumstances of the Applicant’s request, inclusive of market circumstances outside of the Applicant’s control. If the Corporation’s decision is to deny the Applicant’s request, the Board shall consider the facts and circumstances of the Applicant’s request and the Corporation’s denial, and make a determination of whether to grant the request. An Applicant may reduce the interest rate on any superior or inferior mortgage loan without the Board’s permission, provided that no other terms of the loan are changed. The Corporation must be notified of any such change.

Following construction completion, the Corporation will recommend that the Board deny any requests to increase the amount of any superior mortgage, unless the criteria outlined in subsection 67-48.0205(4), F.A.C., are met, the original combined loan to value ratio for the superior mortgage and the HOME mortgage is maintained or improved, and a proportionate amount of the increase in the superior mortgage is used to reduce the outstanding HOME loan balance. To calculate the proportionate amount of the increase in the superior mortgage which must be paid toward the reduction of the HOME loan balance, the following calculation shall be used: divide the amount of the original HOME mortgage by the combined amount of the original HOME mortgage and the original superior mortgage; then multiply the quotient by the amount of the increase in the superior mortgage from the current balance. For example, if the amount of the original HOME mortgage is $2,000,000, the original superior mortgage is $4,400,000, with a current balance of $3,000,000, a proposed new superior mortgage of $5,000,000, then the amount of the increase in the superior mortgage would be $2,000,000, and the proportionate amount of the increase in the superior mortgage which must be paid toward the reduction of the HOME loan balance would be $625,000. This $625,000 would be applied first to accrued interest and then to principal.

(14) Annually, within 151 Calendar Days following the Applicant’s fiscal year end, the Applicant shall provide an audited financial statement, the fully completed and executed annual reporting form, Financial Reporting Form SR-1, (Rev. 01-26), and any other financial reporting requirements as provided in a competitive solicitation. The Form SR-1, which is incorporated by reference and available from http://flrules.org/Gateway/reference.asp?No=Ref-19453, shall be submitted to the Corporation’s servicer in both PDF format and in electronic form as a Microsoft Excel spreadsheet. The initial submission will be due following the fiscal year within which the first unit is occupied. In the case where the HOME Development contained occupied units at the time of acquisition, the initial submission will be due following the fiscal year within which the 12 month anniversary of the HOME loan closing is observed. The audited financial statement is to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

(a) Comparative Balance Sheet with prior year and current year balances;

(b) Statement of revenue and expenses;

(d) Statement of cash flows; and

(e) Notes to financial statements.

(15) Unless and until a guarantor’s obligations for a HOME loan are terminated as approved in writing by the Corporation or its servicer, each guarantor shall furnish to the Corporation or its servicer financial statements as provided in paragraphs (a) through (c), below, as the Corporation or its servicer may reasonably request.

(a) An audited financial statement to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended, which shall include:

Comparative Balance Sheet with prior year and current year balances,
Statement of revenue and expenses,
Statement of changes in fund balances or equity,
Statement of cash flows; and,
Notes to financial statements.

The financial statements referenced above should also be accompanied by a certification of the guarantor(s) as to the accuracy of such financial statements, or

(b) If an audited financial statement has not been prepared, a federal income tax return filed for the most recently completed year, or

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(7), (8), (9) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.020, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, 7-8-18, Amended 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, Repromulgated 7-10-25, Amended 8-13-26.

Fla. Admin. Code R. 67-48.0205 Sale, Transfer or Refinancing of a HOME Development

(1) The HOME loan shall be assumable upon Development sale, transfer or refinancing if the following conditions are met:

(a) The proposed transferee meets all specific Applicant identity criteria which were required as conditions of the original loan;

(b) The proposed transferee agrees to maintain all set-asides and other requirements of the HOME loan for the period originally specified;

(c) The proposed transferee agrees to pay all loan servicing and compliance monitoring fees through the end of the HOME LURA; and,

(d) The proposed transferee and Application receives a favorable recommendation from the Credit Underwriter and approval by the Corporation’s Board of Directors.

All assumption requests must be submitted in writing to the Special Assets Director and contain the specific details of the transfer and assumption. In addition to any related professional fees, the Corporation shall charge a non-refundable assumption fee as of one-tenth of one percent of the HOME loan principal amount. The applicable fee will be determined by the rule in effect at the time of the assumption request.

(2) If the Development is sold and the proposed transferee does not meet the criteria for assumption of the loan, the HOME loan shall be repaid from the proceeds of the sale. If there will be insufficient funds available from the proposed sale of the Development, the HOME loan shall not be satisfied until the Corporation has received:

(a) An appraisal prepared by an appraiser selected by the Corporation indicating that the purchase price for the Development is reasonable and consistent with existing market conditions;

(b) A certification from the Applicant that the purchase price reported is the actual price paid for the Development, as supported by a copy of the final executive purchase and sale agreement, and that no other consideration passed between the parties, as supported by a draft and final closing statement, and that the income reported to the Corporation during the term of the loan was true and accurate; and,

(c) A certification from the Applicant that there are no Development funds available to repay the loan and the Applicant knows of no source from which funds could or would be forthcoming to pay the loan.

(d) The proposed transferee will pay an amount equal to the present value of the annual compliance monitoring fee for the years for which the Development will have a set-aside for Very Low-Income persons or households beyond the repayment date. Such amount shall be reduced by the amount of any compliance monitoring fees collected by the Corporation for the Development for that period, provided:

The compliance monitoring fee covers some or all of the period following the anticipated HOME repayment date; and,
The Development has substantially equivalent set-asides for Very Low-Income persons or households mandated through another program of the Corporation for which the compliance monitoring fee was collected.

(3) The Corporation may renegotiate and extend the loan in order to extend or retain the availability of housing for the target population. Such renegotiations shall be based upon:

(a) Performance of the Applicant during the HOME loan term;

(b) Availability of similar housing stock for the target population in the area;

(d) A plan for the repayment of the loan at the new maturity date;

(e) Assurance that the security interest of the Corporation will not be jeopardized by the new term(s); and,

(f) Industry standard terms which may include amortizing loans requiring regularly scheduled payments of principal and interest.

All loan extension requests must be submitted in writing to the Special Assets Director and contain the specific details of the extension. In addition to any related professional fees, the Corporation shall charge a non-refundable extension fee of one-tenth of one percent of the HOME loan principal amount. The applicable fee will be determined by the rule in effect at the time of the extension request.

(4) The Corporation will recommend that the Board approve requests for mortgage loan refinancing only if Development cash flow is improved, the Development’s economic viability is maintained, the security interest of the Corporation is not adversely affected, and the Credit Underwriter provides a positive recommendation.

(5) The Corporation will recommend that the Board deny any requests for mortgage loan refinancing which require extension of the HOME loan term or otherwise adversely affect the security interest of the Corporation unless the criteria outlined in subsection 67-48.0205(3), F.A.C., are met, the Credit Underwriter recommends that the approval of such a request is crucial to the economic survival of the Development or unless the Board determines that public policy will be better served by the extension as a result of the Applicant agreeing to further extend the Compliance Period or provide additional amenities or resident programs suitable for the resident population. Further, the Corporation will recommend that the Board limit any approved extension to a minimum term which makes the Development feasible and which does not exceed an industry standard term.

History

Rulemaking Authority 420.507(12), (44), 420.508(3)(c) FS. Law Implemented 420.5089(7), (8), (9) FS. History–New 12-23-96, Amended 1-6-98, Formerly 9I-48.0205, Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, Repromulgated 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, Repromulgated 7-11-19, 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.021 HOME Credit Underwriting and Loan Procedures

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5089(2) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.021, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-48.022 HOME Disbursements Procedures and Loan Servicing

(1) HOME loan proceeds shall be disbursed during the construction/rehabilitation phase in an amount per Draw on a pro-rata basis with the other financing unless otherwise approved by the Corporation or the Credit Underwriter.

(3) The request shall set forth the amount to be paid and shall be accompanied by documentation as specified by the Corporation’s servicer. Such documentation shall include invoices for labor and materials to date of the last inspection.

(4) The Corporation’s servicer and the Corporation shall review the request for Draw and the Corporation’s servicer shall provide the Corporation with approval of the request or an alternative recommendation of an amount to be paid after the title insurer provides an endorsement to the policy of title insurance updating the policy to the date of the current Draw and increasing the insurance coverage to an amount equal to the sum of all prior Draws and the current Draw, without additional exceptions, except those specifically approved in writing by the Corporation. For all Developments consisting of 12 or more units to be developed under a single contract, the borrower shall submit weekly payrolls of the General Contractor and subcontractors in accordance with Federal Labor Standards as enumerated in 24 CFR §92.354.

(5) Retainage in the amount of 10 percent per Draw shall be held by the servicer during construction until the Development is 50 percent complete. At 50 percent completion, no additional retainage shall be held from the remaining draws. Release of funds held as retainage shall occur in accordance with the HOME loan documents.

(6) The Corporation or its servicer shall elect to withhold any Draw or portion of any Draw, in addition to the retainage, notwithstanding any documentation submitted by the borrower in connection with a request for a Draw, if:

(a) The Corporation or the servicer determines at any time that the actual cost budget or progress of construction differs from that shown on the loan documents.

(b) The percentage of progress of construction of improvements differs from that shown on the request for a Draw.

(7) To the extent excess HOME funds in the budget remain unused, the Corporation has the right to reduce the HOME loan by that amount.

(8) If 100 percent of the loan proceeds have not been expended within six (6) months prior to the HUD deadline pursuant to 24 CFR §92.500, the funds shall be recaptured by the Corporation.

(9) The request for final disbursement of HOME funds, excluding retainage, shall be submitted within 60 days of completion of construction as evidenced by certificates of occupancy.

PART IV HOUSING CREDIT PROGRAM

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5089(1) FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.022, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, 2-7-05, 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, Repromulgated 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.023 Housing Credits General Program Procedures and Requirements

(1) Unless otherwise permitted in a competitive solicitation process, an Applicant is not eligible to apply for Competitive Housing Credits if any of the following pertain to the proposed Development:

(a) The proposed Development has received an allocation of Housing Credits or a Competitive Housing Credit commitment or has accepted an invitation to enter credit underwriting, unless written notice has been provided to the Corporation prior to the deadline to apply for the applicable new funding withdrawing acceptance of such allocation or commitment and returning the previously awarded HC funding;

(b) A preliminary commitment of funding for the proposed Development through the SAIL Program or the HOME Program has already been accepted, unless written notice has been provided to the Corporation prior to the deadline to apply for the applicable new funding withdrawing such acceptance and returning the prior SAIL Program or HOME Program funding; or

A LURA recorded in conjunction with the Predevelopment Loan Program or the Elderly Housing Community Loan Program, or
A LURA or EUA, or both, for an existing building or buildings, originally constructed at least 25 years prior to the deadline to apply for the applicable Competitive Housing Credits, where, in the current Application, the Applicant has selected and qualified for the Homeless demographic commitment with a Development category of Rehabilitation, Acquisition and Rehabilitation, Preservation, or Acquisition and Preservation.

(2) Each Housing Credit Development shall comply with the minimum Housing Credit Set-Aside provisions, as specified in Section 42(g)(1) of the IRC. Further, each Housing Credit Development shall comply with any additional Housing Credit Set-Aside committed to by the Applicant in the Application.

(3) The Development shall provide safe, sanitary and decent residential rental housing and shall be developed, constructed and operated in accordance with the commitments made and the facilities and services described in the Application at the time of submission to the Corporation or subsequently agreed to by the Corporation. Applications will not be considered approved to receive an allocation of Housing Credits until the Corporation issues a Preliminary Allocation to the Applicant and all contingencies of such documents are satisfied. Allocations are further contingent on the Applicant complying with its Application commitments, rule Chapter 67-48, F.A.C., and Section 42 of the IRC.

(4) 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 and Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28 CFR Part 35.

(5) Each Housing Credit Development shall complete the final cost certification process as required in a competitive solicitation.

(6) Prior to execution of the limited partnership agreement or limited liability company operating agreement between the Applicant and the limited partners/members, the Applicant must receive written approval from the Corporation or its Credit Underwriter that the Housing Credit Syndicator is in good standing with the Corporation. Proceeding with execution of a partnership agreement or operating agreement with a Housing Credit Syndicator that is not in good standing shall result in withdrawal of the Housing Credit Allocation.

(7) Final cost certification documentation shall be submitted by an Applicant to itemize all expenses incurred in association with construction or Rehabilitation of a Housing Credit Development, including Developer’s and General Contractor’s fees as described in Rule 67-48.0072, F.A.C., along with the executed Extended Use Agreement, IRS Tax Information Authorization Form 8821 for all Financial Beneficiaries if requested by the Corporation, a copy of the syndication agreement disclosing the rate and all terms, the required certified public accountant opinion letter, an unmodified audit report prepared by an independent certified public accountant, photographs of the completed Development, the monitoring fee, and documentation of the placed-in-service date as specified in the competitive solicitation. The Final Housing Credit Allocation will not be issued until such time as all items required by a competitive solicitation are received and processed by the Corporation.

(8) After the final evaluation and determination of the Housing Credit Allocation amount has been made by the Corporation and the Extended Use Agreement has been executed in accordance with Rule 67-48.029, F.A.C., the IRS Low-Income Housing Credit Allocation and Certification Forms 8609 are issued to the Applicant of the Housing Credit Development, as provided below. The Corporation will issue only one complete set of Forms 8609 per Development which will be no earlier than total Development completion, the Corporation’s acceptance and approval of the Development’s final cost certification documentation, and determination by the Corporation that all financial obligations for which an Applicant or Developer, or Principal, Affiliate or Financial Beneficiary of an Applicant or Developer is in arrears to the Corporation or any agent or assignee of the Corporation have been satisfied. At the time the Applicant’s first tax return with which Form 8609-A is filed with the Internal Revenue Service, the Applicant must submit to the Corporation a copy of IRS Form 8609 with a completed Part II.

(9) Annually, within 151 Calendar Days following the Applicant’s fiscal year end, the Applicant shall provide the Corporation with an audited financial statement, the fully completed and executed annual reporting form, Financial Reporting Form SR-1, (Rev. 01-26), and any other financial reporting requirements as provided in a competitive solicitation. The Form SR-1, which is incorporated by reference and available from http://flrules.org/Gateway/reference.asp?No=Ref-19454, shall be submitted to the Corporation’s servicer in both PDF format and in electronic form as a Microsoft Excel spreadsheet. The initial submission will be due following the fiscal year within which the first unit is occupied. The initial submission for Housing Credit Developments that contain occupied units at the time of acquisition will be due following the fiscal year within which the 12 month anniversary of the closing is observed of either the Housing Credit equity partnership agreement, or the acquisition of the development site, whichever comes first. The audited financial statement is to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

(a) Comparative Balance Sheet with prior year and current year balances;

(b) Statement of revenue and expenses;

(d) Statement of cash flows; and,

(e) Notes to financial statements.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.023, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, Repromulgated 9-15-16, 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, Amended 5-18-21, 7-6-22, 6-28-23, Repromulgated 7-10-25, Amended 8-13-26.

Fla. Admin. Code R. 67-48.025 Qualified Allocation Plan

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.025, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, 2-7-05, Repealed 1-29-06.

Fla. Admin. Code R. 67-48.026 Housing Credit Underwriting Procedures

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 7-10-97, 1-6-98, Formerly 9I-48.026, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, Repealed 2-7-05.

Fla. Admin. Code R. 67-48.027 Tax-Exempt Bond-Financed Developments

Non-Competitive Housing Credits to be used with Tax-Exempt Bond-Financed Developments are available as outlined in rule Chapter 67-21, F.A.C.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.027, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, Repromulgated 4-6-03, 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, Amended 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, Repromulgated 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.028 Carryover Allocation Provisions

(1) If an Applicant cannot complete its Development by the end of the year in which the Preliminary Allocation is issued, the Applicant must enter into a Carryover Allocation Agreement with the Corporation by December 31st of the year in which the Preliminary Allocation is issued. The Carryover Allocation allows the Applicant up to the end of the second year following the Carryover Allocation to have the Development placed-in-service.

(2) An Applicant shall have tax basis in the Housing Credit Development which is greater than 10 percent of the reasonably expected basis in the Housing Credit Development within six (6) months of the date the Corporation issues the Carryover Allocation Agreement, unless extended as provided in the Carryover Allocation Agreement, or the Housing Credits will be deemed to be returned to the Corporation. Certification that the Applicant has met the greater than 10 percent basis requirement shall be signed by the Applicant’s attorney or certified public accountant.

(3) All supporting Carryover documentation and the signed certification evidencing the required basis must be submitted to the Corporation within six (6) months of the date the Corporation issues the Carryover Allocation Agreement, unless extended as provided in the Carryover Allocation Agreement, or the Housing Credits will be deemed to be returned.

(4) The Applicant for each Development for which a Carryover Allocation Agreement has been executed shall submit quarterly progress reports to the Corporation as outlined in the Carryover Allocation Agreement and the competitive solicitation. If the progress report does not demonstrate continuous and adequate development and construction progress, the Corporation will require monthly submission of progress reports until satisfactory progress is achieved, until the Development is placed in service, or until a determination is made by the Corporation that the Development cannot be placed in service by the Carryover deadline and the Housing Credits are returned to the Corporation in accordance with the terms of the Carryover Allocation Agreement. Each progress report shall include a written statement describing the current status of the Development; the financing, construction and syndication activity since the last report; the reasons for any changes to the anticipated placed-in-service date; and any other information relating to the status of the Development which the Corporation may request. The due date for the first report shall be as stated in the Carryover Allocation Agreement.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Repromulgated 12-23-96, Amended 1-6-98, Formerly 9I-48.028, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, Amended 2-7-05, Repromulgated 1-29-06, Amended 4-1-07, Repromulgated 3-30-08, Amended 8-6-09, 11-22-11, Repromulgated 10-9-13, Amended 10-8-14, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.029 Extended Use Agreement

(2) The following provisions shall be included in the Extended Use Agreement:

(a) The Applicable Fraction for Housing Credit Set-Aside units for each taxable year in the Housing Credit Extended Use Period shall not be less than the Applicable Fraction;

(b) Eligible Persons occupying set-aside units shall have the right to enforce in any state of Florida court the extended use requirement for set-aside units;

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Repromulgated 12-23-96, 1-6-98, Formerly 9I-48.029, Amended 11-9-98, 2-24-00, Repromulgated 2-22-01, 3-17-02, 4-6-03, Amended 3-21-04, 2-7-05, Repromulgated 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, Amended 10-9-13, Repromulgated 10-8-14, 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, 7-6-22, 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.030 Sale or Transfer of a Housing Credit Development

An owner of a Housing Credit Development, its successor or assigns which has been granted a Final Housing Credit Allocation shall not sell the Housing Credit Development without having first notified the Treasury of the impending sale and complying with the Treasury’s procedure or procedures for completing the transfer of ownership and utilizing the Housing Credit Allocation. The owner of a Housing Credit Development shall notify the Corporation in writing of an impending sale and of compliance with any requirements by the Treasury for the transfer of the Housing Credit Development. The proposed transferee agrees to maintain all set-asides and other requirements of the Extended Use Agreement for the period originally specified; pay any and all unpaid compliance monitoring fees through the end of the Extended Use Agreement; and execute any assignment and assumption documents the Corporation deems necessary to effectuate the ownership change. For those Developments that have not waived the right to submit a Qualified Contract, any transfer of that Development will require the transferee to agree to a waiver of the right to submit a Qualified Contract before approval of the transfer will be provided by the Corporation. All requests which only require subordination of the regulatory agreements must be submitted in writing to the Special Assets Director and contain the specific details of the subordination. In addition to any related professional fees, the Corporation shall charge a non-refundable subordination fee of $1,000 for each regulatory agreement to be subordinated. The applicable fee will be determined by the rule in effect at the time of the subordination request.

History

Rulemaking Authority 420.507(12), (44), 420.508(3)(c) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Repromulgated 12-23-96, Amended 1-6-98, Formerly 9I-48.030, Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, Repromulgated 3-17-02, 4-6-03, 3-21-04, 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, 10-8-14, 9-15-16, 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, Amended 7-6-22, Repromulgated 6-28-23, 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.031 Qualified Contracts

“Bona fide contract” has the same meaning as in Section 420.503(4), F.S.

“Qualified contract” has the same meaning as in Section 420.503(36), F.S.

(3) After the 14th year of the Compliance Period, unless otherwise obligated under the Extended Use Agreement, or a Land Use Restriction Agreement under another Corporation program, and provided the right to request a qualified contract for the Development was not waived in exchange for or in connection with the award of Housing Credits, the owner of a Development may submit a qualified contract request to the Corporation. When submitting a qualified contract request, the owner shall utilize the Qualified Contract Package in effect at the time of the request and shall remit payment of the required Qualified Contract Package fee as provided therein. The Qualified Contract Package consists of the forms and instructions, obtained from the Corporation at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329, or on the Corporation’s website under the Multifamily Programs link or from http://www.flrules.org/Gateway/reference.asp?No=Ref-12013, which shall be completed and submitted to the Corporation in order to request a qualified contract. The Qualified Contract Package, Rev. 03-2020, is adopted and incorporated herein by reference.

(6) In addition to the Qualified Contract Package fee, the owner shall be responsible for all third-party fees in connection with the owner’s qualified contract request. Third party fees include, but are not limited to, the costs of the services provided by CPAs and real estate appraisers or other real estate professionals engaged by the Corporation to assist it in the review of a qualified contract request, and the fees and commissions of any real estate broker in connection with the marketing and sale of the development to a buyer under a qualified contract.

(8) The running of the one-year period described in Section 42(h)(6)(I) of the IRC shall 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;

(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 timely 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;

(i) The owner otherwise fails to comply with the requirements of this rule section or the qualified contract regulations.

References in this rule to the one-year period shall mean the running of the one-year period as same may be affected as a result of being suspended pursuant to this subsection (8).

(9) Upon mutual agreement of the owner and the Corporation, the qualified contract amount shall be documented in writing signed by the Corporation and the owner.

(11) An owner shall be allowed only one qualified contract request per Development.

(12) This rule shall apply to qualified contract requests first submitted to the Corporation on or after the effective date of the rule.

History

Rulemaking Authority 420.507(12), 420.508(3)(c) FS. Law Implemented 420.5099(7) FS. History–New 7-22-96, Repromulgated 12-23-96, 1-6-98, Formerly 9I-48.031, Amended 11-9-98, Repromulgated 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, Amended 2-7-05, 1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, Repromulgated 10-8-14, Amended 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, Repromulgated 5-18-21, Amended 7-6-22, 6-28-23, Repromulgated 7-10-25, 8-13-26.

Fla. Admin. Code R. 67-48.032 Minimum Set-Aside for Non-Profit Organizations Under Housing Credits Program

PART V ELDERLY HOUSING COMMUNITY LOAN PROGRAM

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.032, Amended 11-9-98, 2-24-00, Repealed 2-22-01.

Fla. Admin. Code R. 67-48.040 EHCL General Program Procedures and Restrictions

History

Rulemaking Authority 420.507, 420.508 FS. Law Implemented 420.5087(3) FS. History–New 10-8-14, Repromulgated 9-15-16, 5-24-17, 7-8-18, 7-11-19, 6-23-20, 5-18-21, Repealed 7-6-22.

Fla. Admin. Code R. 67-48.041 Terms and Conditions of EHCL Loan

History

Rulemaking Authority 420.507, 420.508 FS. Law Implemented 420.5087(3) FS. History–New 10-8-14, Repromulgated 9-15-16, 5-24-17, 7-8-18, Amended 7-11-19, Repromulgated 6-23-20, Amended 5-18-21, Repealed 7-6-22.

Chapter 67-49 PROCUREMENT OF COMMODITIES OR CONTRACTUAL SERVICES

Fla. Admin. Code R. 67-49.0005 General Provisions

(1) Section 420.507(27), F.S., authorizes the Corporation to establish procedures and practices to implement the purchase and procurement of materials and services for use by the Corporation. Except as provided below, the provisions of Part I of Chapter 287, F.S., apply to such purchases unless a different or additional procedure or practice is set forth in this chapter.

(a) Subsection 287.056(2), F.S.

(b) Subsections 287.057(3), (4), (15), (16), (17), (18), (24) and (26), F.S.

(d) Section 287.059, F.S.

(e) Section 287.0591, F.S.

(f) Section 287.063, F.S.

(g) Section 287.064, F.S.

(h) Section 287.136, F.S.

(2) Interested parties that wish to protest the terms of any competitive solicitation issued pursuant to this rule chapter may only do so pursuant to the procedures set forth in Section 120.57(3), F.S., and Chapter 28-110, F.A.C.

(3) This chapter does not apply to any competitive solicitation issued through any Corporation program to allocate or award funding for the construction, rehabilitation, preservation, or purchase of affordable housing.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 2-28-18, Amended 8-10-21.

Fla. Admin. Code R. 67-49.001 Definitions

As used in this rule, the term:

(1) “Act” means the Florida Housing Finance Corporation Act, Sections 420.501 through 420.517, F.S., as amended.

(2) “Bidder” “Offeror” or “Respondent” means a person who represents that he or she has the capability in all respects to perform fully the requirements contained in a competitive solicitation.

(3) “Commodity” means any supplies, materials, goods, merchandise, food, equipment, and other personal property contracted for by the Corporation, unless purchased exclusively for resale.

(4) “Competitive Solicitation,” or “Solicitation,” means any Request for Proposals, Request for Qualifications, Invitation to Bid, Invitation to Negotiate, or other process of requesting and receiving sealed bids, proposals, or replies in accordance with the terms of a competitive process, regardless of the method of procurement, including any publication or transmission by electronic means.

(5) “Contractual Service” means the rendering by a contractor of its time, skill and effort rather than the furnishing of commodities. The term applies only to those services rendered by individuals and firms who are independent contractors, and such services may include, evaluations; consultations; maintenance; accounting; security; management systems; management consulting; educational training programs; research and development studies or reports on the findings of consultants engaged thereunder; and professional, technical, and social services.

(6) “Cooperative Contract” means a variety of arrangements whereby two or more public procurement entities purchase from the same supplier or multiple suppliers using a single Competitive Solicitation.

(7) “Corporation” means the Florida Housing Finance Corporation.

(8) “Invitation to Bid” means a written solicitation requesting competitive sealed bids specifically defining the Commodity, service, group of commodities or group of services for which bids are sought. It includes instructions prescribing all conditions for bidding and shall be available to all prospective Bidders simultaneously.

(9) “Invitation to Negotiate” means a written solicitation requesting competitive sealed responses to select one or more persons or business entities with which to commence negotiations for the procurement of commodities or contractual services.

(10) “Minor Irregularity” means a variation from a mandatory term or condition of a competitive solicitation that does not materially affect the price of the Commodity or Contractual Service, or give the Bidder an advantage or benefit not enjoyed by other Bidders, and does not adversely impact the interests of the Corporation or the public.

(11) “Publication” means the publishing or posting of notice regarding solicitations, decisions or intended decisions, or other matters relating to procurement under this rule, on the Corporation Website section designated for this purpose.

(12) “Publication Date” means the date on which the Corporation publishes the notice of the availability of the competitive solicitation on the Corporation Website. For purposes of Section 120.57(3), F.S., publication occurs at the time and on the date the notice is posted on the Corporation Website.

(13) “Request for Qualifications” means a written solicitation requesting competitive sealed qualifications. The Request for Qualifications is used when the Corporation does not have a specific immediate need for a particular service, but desires to have qualified individuals or firms under contract that can be assigned duties as the need arises over a period of time. The Request for Qualifications includes general information, applicable laws and rules, functional or general specifications, statement of work, instructions and evaluation criteria.

(14) “Response” means the written submission by a Bidder addressing a competitive solicitation.

(15) “Website” means the Corporation website, the Universal Resource Locator (URL) of which is www.floridahousing.org.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, 9-14-03, 2-24-14, 2-28-18, 8-10-21.

Fla. Admin. Code R. 67-49.002 Procurement of Commodities or Contractual Services

(1)(a) When the purchase price of a commodity or contractual service does not exceed $35,000 in any 12-month period, including all delivery costs and administrative costs, then the Corporation may proceed with the procurement of commodities or contractual services without a competitive solicitation. In these instances, the Corporation must obtain at least two written quotations or make a written record of at least two quotes obtained verbally, including the name and address of the company and amount quoted, for Contractual Services or Commodities that exceed $15,000 and are not available through a vendor under a Cooperative Contract. If the Corporation does not obtain at least two quotations, the Corporation shall document why they were not obtained.

(b) When the purchase price of Commodities or Contractual Services exceeds or is estimated to exceed $35,000, in any 12 month period, purchases of these Commodities or Contractual Services, except as otherwise provided in subsections 67-49.002(3) and (4), F.A.C., must be made pursuant to a competitive solicitation.

(2)(a) The Corporation shall post any competitive solicitation on its Website. There will be a minimum of 7 days between the publication date of the notice and the due date of the responses. The competitive solicitation shall describe the Commodities or Services and require prices, fees, or both to be stated in the Response, and include the contract period(s).

(b) For those contracts that are subject to renewal, the contract award shall include an evaluation of offers or bids for the entire initial contract period. Pricing for any optional renewal periods may be negotiated at the time of renewal.

(3) The purchase of Commodities or Contractual Services are exempt from competitive solicitation if the Corporation purchases such services or commodities from a vendor under a contract negotiated and executed by the Florida Department of Management Services.

(4) The following Contractual Services and Commodities are not subject to the competitive sealed response requirements of paragraph (1)(b):

(a) Artistic services.

(b) Lectures by individuals.

(d) Printing and binding of Corporation publications.

(e) Event space and lodging needed to conduct Corporation business, including Board of Directors meetings, statewide or regional conferences, and programmatic workshops.

(f) Corporate insurance policies, including any brokerage or agent services.

(g) Employee benefit services, including any brokerage or agent services.

(h) Payroll services.

(i) Real estate transactions required to secure space for Corporation employees to conduct business.

(j) Services or Commodities provided by governmental entities, including, but not limited to, Florida State Universities and State Colleges, or by any independent, nonprofit college or university which is accredited by the Southern Association of Colleges and Schools and is located within the state.

(k) Contracts where the contractor is prescribed by state or federal law, or where payment is established during the appropriations process.

(5) The Corporation may use cooperative purchasing agreements for Commodities or Contractual Services in addition to those negotiated by the Florida Department of Management Services.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, 9-14-03, 2-24-14, 2-28-18, 2-13-20, 8-10-21.

Fla. Admin. Code R. 67-49.003 Withdrawal of a Competitive Solicitation

(1) The Corporation may withdraw any competitive solicitation at any time prior to the due date of the Responses when the withdrawal is determined by the Executive Director to be in the best interest of the Corporation or the public. Notice of such determination shall be posted on the Corporation’s Website.

(2) Any Bidder may request to withdraw its Response, in writing, at any time prior to a vote by the Corporation’s Board of Directors regarding any Responses received.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, 9-14-03, 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.0031 Emergency Purchases

The Corporation’s Executive Director may waive any requirement of this rule and permit emergency purchases of commodities and contractual services where a valid emergency exists and is documented in writing. Any circumstance caused by an unexpected turn of events beyond the control of the Corporation involving the security, integrity or the financial status of the Corporation, or involving public health, welfare, safety, injury or loss, shall be construed as a valid emergency.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 3-12-02, Repromulgated 9-14-03, Amended 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.0032 Single Source Purchases

(1) For purchases estimated not to exceed $35,000 in a 12-month period, the Executive Director shall exempt Commodities and Contractual Services from the requirements set forth in paragraph 67-49.002(1)(a), F.A.C., upon a determination that such Commodities or Services are most readily available from a single source or that the best interest of the Corporation or the public are served by obtaining such Commodities or Services from a single source.

(2) Upon a determination by the Executive Director that Commodities or Contractual Services that are otherwise required to be purchased through a competitive solicitation are most readily available from a single source, or that the best interests of the Corporation or the public are served by obtaining such Commodities or Services from a single source, the Corporation shall electronically post a description of such Commodities or Services for at least 7 business days, including a request that prospective vendors provide information regarding their ability to supply the described commodities or contractual services sought. If the Executive Director, after reviewing any information received from prospective vendors, determines that the Commodities or Contractual Services are practically available only from a single source, or that the best interests of the Corporation or the public will be served by obtaining such Commodities or Services from a single source, the Board may exempt such Commodities or Contractual Services from competitive solicitation requirements. The Corporation shall provide notice of the Board’s decision to enter a single-source purchase contract.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 2-28-18.

Fla. Admin. Code R. 67-49.004 Modification of Terms of a Competitive Solicitation

(1) The Corporation may modify the terms of a competitive solicitation at any point prior to the due date of the Responses. A notice of modification will be posted on the Corporation’s Website. Any Bidder shall have at least 7 days from the date of the posting of the notice of the modification to submit or modify its Response.

(2) Any Bidder may modify its Response at any time prior to the Response deadline.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, 9-14-03, 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.005 Responsibility of Bidders

The failure of a Bidder to supply required information in connection with a competitive solicitation shall constitute nonresponsiveness with respect to its Response. If a determination of nonresponsiveness is made by the Corporation, the Response will not be considered.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, Repromulgated 9-14-03, Amended 3-11-14, 2-28-18.

Fla. Admin. Code R. 67-49.007 Evaluation of Responses

(1) Notwithstanding the provisions set forth in Section 287.057, F.S., relating to the composition of review committees, the Corporation shall establish a review committee to evaluate Responses to appropriate competitive solicitation types, and shall provide their conclusions, recommendations, or both to the Board of Directors of the Corporation.

(2) Notwithstanding the provisions set forth in Section 287.057, F.S., relating to the persons conducting negotiations, the Corporation shall appoint persons to conduct negotiations for appropriate competitive solicitation types. Negotiators and review committee members shall not be required to be Florida Certified Contract Negotiators or Project Management Professionals.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, Repromulgated 9-14-03, Amended 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.008 Identical (Tie) Responses

In the event of a tie, the Corporation shall give preference in the award process to the Response certifying a drug-free workplace has been implemented in accordance with Section 287.087, F.S. If a tie continues to exist, Florida Housing shall give preference to minority business enterprises as defined in Section 288.703, F.S.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, Repromulgated 9-14-03.

Fla. Admin. Code R. 67-49.009 Right to Waive Minor Irregularities

The Corporation may waive Minor Irregularities in a Response when it is in the Corporation’s or the public’s best interest to do so.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 1-31-99, Amended 3-12-02, Repromulgated 9-14-03.

Fla. Admin. Code R. 67-49.011 Nonresponsive Bids

If not more than one responsive Bid, Proposal, or Response to any competitive solicitation is received, the Corporation shall negotiate for the Commodities or Services sought, on the best terms and conditions. The Corporation shall document the reasons that such action is in the best interest of the Corporation in lieu of resoliciting.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 9-14-03, Amended 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.012 Contract Administrator and Managers

(1) The Corporation will designate at least one employee as a contract administrator who will be responsible for preparing solicitations for publication, for publishing notice of solicitations, review committee meetings, and board awards, preparing drafts of contracts, maintaining contract files, and serving as liaison with the contractor for solicitations and contracts under this rule.

(2) For each contract, the Corporation will designate at least one employee as a contract manager who will be responsible for enforcing performance of the contract terms and conditions and serve as a liasion with the contractor.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History–New 9-14-03, Amended 2-24-14, 2-28-18.

Fla. Admin. Code R. 67-49.013 Contracts; Terms, Amendments, Renewals

(1) Each contract shall embody all provisions and conditions of the procurement including at a minimum:

(a) Requirements that bills or fees for services or expenses be submitted in detail sufficient for audit;

(b) Requirements that travel expense bills or reimbursements not exceed the maximums provided in Sections 112.061(6) and (7), F.S.;

(d) Criteria for, and schedules of, payments owed by the Corporation; and,

(e) Provision for termination, including termination by the Corporation for failure to comply with Section 119.0701, F.S.

(2) Each contract may provide for amendment agreed in writing by the parties.

(3) Each contract may provide for renewal periods not to exceed three years or the original term of the contract, whichever is longer.

(a) Fees may be renegotiated as part of the renewal.

(b) Renewals shall be contingent upon satisfactory performance evaluation by the Corporation and subject to the availability of funds.

(4) Contracts shall be executed by the Executive Director or a designee.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(13), (27) FS. History‒New 2-24-14, Amended 2-28-18.

Chapter 67-50 FLORIDA HOUSING FINANCE CORPORATION HOMEOWNERSHIP LOAN PROGRAM

Fla. Admin. Code R. 67-50.001 Purpose and Intent

The purpose of this rule chapter is to establish the Homeownership Loan Program procedures by which the Corporation shall:

(1) Administer the Application process, determine loan amounts, and service loans to Developers for the construction of affordable housing and provide purchase assistance to Eligible Homebuyers under the Florida Homeownership Assistance Program (HAP)/Construction Loan Program as authorized by Sections 420.507 and 420.5088, Florida Statutes (F.S.); and,

(2) Administer the Application process, determine loan amounts, and service loans to Developers for the construction of affordable housing and provide purchase assistance to Eligible Homebuyers under the HOME Investment Partnerships (HOME) Homeownership Program as authorized by Section 420.5089, F.S., and HUD regulations, 24 CFR §92, which is adopted and incorporated into this rule chapter by reference and which is available on the HUD website at http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 9-5-02, Amended 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.005 Definitions

(1) “Act” means the Florida Housing Finance Corporation Act, Chapter 420, Part V, F.S.

(2) “Address” means the address assigned by the U.S. Postal Service and must include address number, street name, city, state and zip code. If the address has not yet been assigned, include, at a minimum, street name and closest designated intersection and the city, state and zip code.

(3) “Adjusted Income” means the gross income from wages or assets, cash or non-cash contributions, and any other resources and benefits determined to be income by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size, as defined in 24 CFR §5.609, formerly known as Section 8, which is adopted and incorporated herein by reference and which is available at http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm. For HAP, the 4-person income limit will be utilized for households of 1 to 4 persons with adjustments made for additional household members.

(4) “Affiliate” means any person or entity that:

(a) Directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant;

(b) Serves as an officer or director, agent, employee, or any business entity or person associated with the Applicant in the furtherance of a business venture for which the Applicant is applying for one of the Corporation’s programs, or

(5) “AMI” or “Area Median Income” means the median income for an area, with adjustments made for household size, as determined by the U.S. Department of Housing and Urban Development (HUD).

(6) “Applicant” means any person or legally formed entity that is seeking a loan or funding from the Corporation by submitting an Application for one of the Corporation’s programs.

(7) “Application” means the forms and exhibits created by the Corporation for the purpose of providing the means to apply for one or more of the Corporation’s programs. A completed Application may include additional supporting documentation provided by an Applicant.

(8) “Application Deadline” means 5:00 p.m. (Eastern Time), on the final day of the Application Period.

(9) “Application Package” means the forms and instructions obtained from the Corporation, at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329 and available on the Corporation’s website, which shall be completed and submitted to the Corporation in order to apply for a specific Corporation program.

(10) “Application Period” means the period during which Applications shall be accepted.

(11) “Appraisal” means an appraisal of a residence prepared by a Qualified Appraiser.

(12) “Board” means the Board of Directors of Florida Housing Finance Corporation.

(13) “Calendar Days” means, with respect to computing any period of time allowed by this rule, the day of the event from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.

(14) “CBO” or “Community Based Organization” means a Community Based Organization as defined by Section 420.503 or 420.524, F.S.

(15) “CHDO” or “Community Housing Development Organization” means an organization as defined in Section 420.503(7), F.S., and organized pursuant to 24 CFR §92, which is adopted and incorporated herein by reference and which is available at http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm.

(16) “Code” means the Internal Revenue Code of 1986.

(17) “Community Land Trust” means a community housing development organization which acquires or develops parcels of land for the primary purpose of providing affordable housing in perpetuity through conveyance of the structural improvement subject to a long term ground lease which retains a preemptive option to purchase any such structural improvement at a price determined by a formula designed to ensure the improvement remains affordable in perpetuity.

(18) “Consolidated Plan” means the plan prepared in accordance with HUD Regulations, 24 CFR §91, which describes needs, resources, priorities and proposed activities to be undertaken with respect to certain HUD programs, including the HOME Program.

(19) “Construction Loan” means a loan made available to a Developer, which utilizes either HAP or HOME funds for construction purposes.

(20) “Contact Person” means the person with whom the Corporation will correspond concerning the Application and the Development. This person cannot be a third party consultant.

(21) “Contractor” means a person or entity duly licensed by the State of Florida who provides services in accordance with Chapter 489, F.S.

(22) “Corporation” means the Florida Housing Finance Corporation as defined in Section 420.503, F.S.

(23) “Credit Underwriter” means the independent contractor under contract with the Corporation having the responsibility for providing credit underwriting services.

(24) “Credit Underwriting” means an in-depth analysis by the Credit Underwriter of all documents submitted in connection with an Application.

(25) “Credit Underwriting Report” means a report that is a product of Credit Underwriting.

(26) “DCA” or “Department” means the Department of Community Affairs as defined in Section 420.503, F.S.

(27) “DDA” or “Difficult to Develop Areas” means any area designated by the Secretary of Housing and Urban Development as having high construction, land, and utility costs relative to area median gross income in accordance with Section 42(d)(5) of the Code.

(28) “Default” means the failure to make required payments on a financial loan secured by a first mortgage which leads to foreclosure and loss of property ownership.

(29) “Developer” means an individual, association, corporation, joint venturer, or partnership, which possesses the requisite skill, experience, and credit worthiness to successfully produce affordable housing.

(30) “Developer Fee” means the fee earned by the Developer.

(31) “Development” means Project as it is defined in Section 420.503, F.S.

(32) “Development Cost” means the total of all costs incurred in the completion of a Development excluding Developer Fee, acquisition cost of existing developments, and total land cost as shown in the development cost line item on the development cost pro forma within the Application.

(33) “Document” means a written, electronic media, or graphic matter of any kind whatsoever, however produced or reproduced, including records, reports, memoranda, minutes, notes, graphs, maps, charts, contracts, opinions, studies, analysis, photographs, financial statements and correspondence as well as any other tangible item on which information is recorded.

(34) “Draw” means the disbursement of funds to a Development.

(35) “Elderly” means elderly as defined in Section 420.503(15), F.S.

(36) “Eligible Homebuyer” means one or more natural persons or a household, irrespective of race, creed, religion, national origin, or sex, determined by the Corporation to be of very low or low to moderate income and who will utilize the home as their primary residence. In determining the income standards of eligible persons for its various programs, the Corporation shall take into account the following factors:

(a) Requirements mandated by state and federal law;

(b) Targeted areas of special need in the state; and,

(37) “Entitlement Area” means a unit of general Local Government that has been designated by HUD to receive an allocation of HOME funds.

(38) “Executive Director” means the Executive Director of the Florida Housing Finance Corporation.

(39) “F.A.C.” means the Florida Administrative Code.

(40) “FAR” means the Florida Administrative Register.

(41) “FHA” means the Federal Housing Administration of the U.S. Department of Housing and Urban Development or other Agency or instrumentality created or chartered by the United States government to which the powers of the Federal Housing Administration have been transferred.

(42) “F.S.” means the Florida Statutes.

(43) “FannieMae” means the Federal National Mortgage Association, a corporation organized and existing under the Federal National Mortgage Association Charter Act, 12 U.S.C. 1716 et seq.

(44) “Farmworker” means Farmworker as defined in Section 420.503(18), F.S.

(45) “Farmworker Household” means a household of one or more persons wherein at least one member of the household is a Farmworker at time of initial occupancy.

(46) “Financial Institution” means a state or federal association, bank, trust company, international bank agency, representative office or international administrative office, or credit union.

(47) “First Mortgage” means the recorded mortgage which is superior to any other lien or encumbrance on the property.

(48) “Florida Keys Area” means all lands in Monroe County, except:

(a) That portion of Monroe County included within the designated exterior boundaries of the Everglades National Park and areas north of said Park;

(b) All lands more than 250 feet seaward of the mean high water line owned by local, state, or federal governments; and,

(49) “Funding Cycle” means the period of time commencing with the Notice of Funding Availability or Notice of Credit Availability pursuant to this rule chapter and concluding with the issuance of Allocations or loans to Applicants who applied during a given Application Period.

(50) “HAP” or “HAP Program” means the Florida Homeownership Assistance Program created under Section 420.5088, F.S.

(51) “HAP Development” means any Development which receives financial assistance from the Corporation under the HAP Program.

(52) “HLP” or “Homeownership Loan Program” means the rule and Application that incorporates the HAP and HOME Programs. These programs provide funding for either construction or purchase assistance.

(53) “HOME” or “HOME Program” means the HOME Investment Partnerships Program administered by the Corporation, pursuant to HUD Regulation 24 CFR §92.

(54) “HOME-Assisted Units” means the specific units that are funded with HOME funds, pursuant to 24 CFR §92.254.

(55) “HOME Development” means any Development which receives financial assistance from the Corporation under the HOME Program.

(56) “HUD” means the U.S. Department of Housing and Urban Development.

(57) “HUD Regulations” means the regulations of HUD in 24 CFR §92.

(58) “Loan Closing Date” means the actual closing date of the loan for developments using HLP funding for construction or the date the firm commitment is issued for developments using funding for purchase assistance for homebuyers.

(59) “Local Government” means a unit of local general-purpose government as defined in Section 218.31(2), F.S.

(60) “Low Income” means the Adjusted Income for persons or households that does not exceed eighty percent (80%) AMI.

(61) “LURA” or “Land Use Restriction Agreement” means the agreement between the Corporation and the Applicant which sets forth the Set-Aside requirements and other Development requirements under a Corporation program.

(62) “Match” means non-federal contributions to a HOME Development that are eligible pursuant to the HUD Regulations.

(63) “Maximum Purchase Price” means:

(a) With respect to HAP, the maximum purchase price of a house in an area as determined by the Single Family Mortgage Revenue Bond Program (SFMRB) at the time of the beginning of the construction of the house; and,

(b) With respect to HOME, the maximum purchase price of a house in an area as determined by HUD at the beginning of the construction of the house.

(64) “Moderate Income” means the Adjusted Income for persons or households that does not exceed one hundred fifty percent (150%) AMI.

(65) “Mortgage” means Mortgage as defined in Section 420.503, F.S.

(66) “Mortgage Loan” means Mortgage loan as defined in Section 420.503, F.S.

(67) “Non-Entitlement Area” means a unit of general local government that has not been designated by HUD to receive HOME assistance.

(68) “Non-Profit” means a qualified non-profit entity as defined in Section 42(h)(5)(C), subsection 501(c)(3) or 501(c)(4) of the Code, and organized under Chapter 617, F.S., if a Florida Corporation, or under similar state law if organized in a jurisdiction other than Florida, to provide low-income housing and other services on a not-for-profit basis, which owns at least fifty one percent (51%) of the ownership interest in the Development held by the general partner entity and which entity is acceptable to federal and state agencies and financial institutions as a Sponsor for housing.

(69) “Non-Profit Sponsor” means, with respect to the HAP Program, a unit of local government or public housing authority, established pursuant to Chapter 421, F.S., or a Community Based Organization, as defined in subsection 67-50.005(15), F.A.C., which has agreed to sponsor an Eligible Development utilizing either a Non-Profit or for-profit Developer.

(70) “Note” means a unilateral agreement containing an express and absolute promise to pay to the Corporation a principal sum of money on a specified date, which provides the interest rate, and is secured by a mortgage.

(71) “PLP” or “Predevelopment Loan Program” means the Predevelopment Loan Program established by the Act.

(72) “PLP Loan” means a direct loan from Predevelopment Loan Program.

(73) “Preliminary Allocation” means a non-binding reservation of HAP or HOME funds issued to a Development prior to the credit underwriting process.

(74) “Principal” means an Applicant, any general partner of an Applicant, and any officer, or director of any Applicant or of any general partner of an Applicant.

(75) “Project” or “Property” means Project as defined under Section 420.503, F.S.

(76) “Purchase Assistance Loan” or “Permanent Loan” means a zero percent (0%) interest rate, non-amortizing second mortgage loan made to an Eligible Homebuyer, who has an Adjusted Income that does not exceed eighty percent (80%) AMI.

(77) “QCT” or “Qualified Census Tract” means any census tract that is designated by the Secretary of HUD as having either fifty percent (50%) or more of the households at an income that is less than sixty percent (60%) AMI or a poverty rate of at least twenty five percent (25%), in accordance with Section 42(d)(5)(C) of the Code.

(78) “Qualified Appraiser” means an individual or firm that is qualified as an appraiser by the society of real estate appraisers or the American Institute of Real Estate Appraisers and acceptable or approved by FHA, VA, FannieMae, Freddie Mac or any private mortgage insurance provider to provide appraisal reports.

(79) “RD” or “Rural Development” means Rural Development Services (formerly the Farmer’s Home Administration) of the U.S. Department of Agriculture.

(80) “Received” as it relates to delivery of a document by a specified deadline means, unless otherwise indicated, delivery by hand, U.S. Postal Service or other courier service in the office of the Corporation no later than 5:00 p.m. (Eastern Time), on the deadline date.

(81) “Review Committee” means a committee of Corporation staff appointed by the Executive Directors or assignee who will make recommendations to the Board regarding Program participation.

(82) “Rural Area” means an area that is eligible to receive assistance from the U.S. Department of Agriculture – Rural Development.

(83) “Scattered Sites” means an individual action on a project of five (5) or more housing units developed on scattered sites when the sites are more than 2,000 feet apart and there are not more than four (4) housing units on any one site.

(84) “Second Mortgage” means the recorded mortgage securing the HAP or HOME Construction Loan or the HAP or HOME Purchase Assistance Loan which is subordinate only to the First Mortgage unless otherwise approved by the Board.

(85) “Servicer” means the entity, and any subcontractors, under contract with the Corporation to provide loan servicing, including administration and compliance monitoring.

(86) “Servicing and Compliance Monitoring Fees” means fees associated with the review and processing of requests for disbursement of funds, inspections and the monitoring of Developments.

(87) “Set-Aside” means the occupancy requirements or restrictions for Developments financed by the Corporation.

(88) “SFMRB” or “Single Family Bond Program” means the Corporation’s Single-Family Mortgage Revenue Bond Program, pursuant to Rule Chapter 67-25, F.A.C.

(89) “SHIP” or “SHIP Program” means the State Housing Initiatives Partnership Program created pursuant to the State Housing Initiative Partnership Act, Sections 420.907-.9079, F.S.

(90) “Sponsor” means sponsor as defined in Section 420.503, F.S.

(91) “State” means the State of Florida.

(92) “Threshold” means the minimum criteria to be met for an Application to be considered complete, as required by this rule chapter and the Application Package.

(93) “Total Development Cost” means the total of all costs incurred in the construction of a Development, all of which shall be subject to the approval by the Credit Underwriter and the Corporation as reasonable and necessary.

(94) “Treasury” means the U.S. Department of Treasury or other agency or instrumentality created or chartered by the United States to which the powers of the Department of Treasury have been transferred.

(95) “Unit” means a residential unit used as a single family residence and the land appurtenant that is taxed as real property under state laws, not including a two, three or four household residence, unless each unit is owner-occupied.

(96) “Urban In-Fill Development” means a Development (i) in a site or area that is targeted for in-fill housing or neighborhood revitalization by the local, county, state or federal government as evidenced by its inclusion in a HUD Empowerment/Enterprise Zone, a HUD-approved Neighborhood Revitalization Strategy, Florida Enterprise Zone, area designated under a Community Development Block Grant (CDBG), an area designated as a HOPE VI or Front Porch Florida Community, or a Community Redevelopment Area as described and defined in the Florida Community Redevelopment Act of 1969, or the proposed Development is located in a Qualified Census Tract and the development of which contributes to a concerted community revitalization plan; and (ii) in a site which is located in an area that is already developed and part of an incorporated area or existing urban service area.

(97) “Very Low-Income” means the Adjusted Income of persons or households that does not exceed fifty percent (50%) AMI.

(98) “Website” means the Florida Housing Finance Corporation website, the Universal Resource Locator (URL) of which is www.floridahousing.org.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.010 Fees

(1) The Corporation shall collect an Application fee from all Applicants when applying for HLP funding during any Application Period.

(2) Upon acceptance of the invitation to enter credit underwriting, the Applicant will be required to pay a commitment fee.

(3) With respect to HAP, the Applicant is responsible for the following fees, which are part of the Total Development Cost and must be included in the development cost pro forma:

(a) Credit Underwriting fee;

(b) Loan Servicing fees; and,

(4) With respect to HOME, the fees referenced in subsection (3), above, are paid directly by the HOME Program.

(5) Penalty Fees: Applicants will be charged a penalty fee of $100 for each extension request, pursuant to Section 420.507(4), F.S., payable at the time of the request, for the following:

(a) Deadline to submit information to the Credit Underwriter;

(b) Loan Closing Date;

(d) Commitment expiration.

(6) Failure to pay any fee shall cause any commitment of funds to be terminated or shall constitute a default on the respective loan documents.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(19), 420.5088, 420.5089 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.020 Notice of Funding Availability (NOFA)

The Corporation shall post the NOFA, which advises the availability of HLP funding, on the Corporation’s website and publish in the Florida Administrative Register (FAR).

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088, 420.5089 FS. History–New 9-5-02, Amended 12-28-04.

Fla. Admin. Code R. 67-50.030 General Program Eligible Activities

(1) Eligible Applicants are:

(a) With respect to the HAP Program, is a Non-Profit Developer, or a Non-Profit Sponsor, local government, or public housing authority proposing to build affordable homeownership housing; and,

(b) With respect to the HOME Program, is a Community Housing Development Organization (CHDO), a public housing authority, a local government, a Non-Profit organization, or a private for-profit organization (including a corporation, limited partnership, limited liability company, partnership and a sole proprietorship) proposing to build affordable homeownership housing.

(2) Funds may be used for the following eligible costs:

(a) Hard costs as they directly relate to the identified assisted units to meet local and State building codes and the Model Energy Code.

(b) Soft costs as they relate to the identified assisted units must be reasonable and necessary, as determined by the Corporation and Credit Underwriter, and associated with the financing, development, or both, including:

Architectural, engineering or related professional services required to prepare plans, drawings, specifications or work write-ups,
Costs to process and close the financing for a Development, such as credit reports, fees for evidence of title, recordation, building permits, attorney fees, cost certifications, and estimates,
Developer Fees, including administrative overhead, are limited to sixteen percent (16%) of the Total Development Cost and Contractor fees are limited to fourteen percent (14%) of the actual construction cost. The Developer Fee cannot increase over the life of the Development,
Impact fees,
Costs of Development audits required by the Corporation or compliance monitoring agent,
Affirmative marketing and fair housing costs; and,
Temporary relocation costs, as required for the HOME Program.

(3) Funds may be used to construct one (1) speculative unit or model home for up to ten (10) units in the Development, up to two (2) speculative units or model homes for eleven (11) to twenty (20) units in the Development and a maximum of three (3) speculative units or model homes for a Development with over twenty (20) units. Funds will be disbursed on a pro-rata basis with other funding sources.

(4) Prepayment of the loan is permitted without penalty.

(5) The Corporation shall make individual homebuyer Permanent Loans under the SFMRB Program utilizing HAP or HOME funding in accordance with the SFMRB documents and Rule Chapters 67-25 and 67-45, F.A.C. If HAP or HOME funding is used in conjunction with the SFMRB Program, the homebuyer may not utilize more than one down payment assistance program sponsored by the Corporation.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.5088, 420.5089 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.040 General Program Restrictions

(1) Eligible Developments must:

(a) Be designed and intended for the primary purpose of providing decent, safe, and sanitary residential housing for persons or households;

(b) Consist of at least four (4) Units, with a maximum of fifty (50) Units, with the exception of Scattered Site Developments which are limited to twenty-five (25) Units;

(c) Meet the minimum set-aside requirements and sales price limits of either the HAP or HOME Program, as applicable; and,

(d) Be identified by legal description or street address.

(2) An Applicant may not submit an application for both HAP and HOME funding for the same Development during an Application Period.

(3) Applications shall be limited to one submission per subject property, per Application Period, and funding requests shall be limited to the lesser of twenty five percent (25%) of the Total Development Cost or $1,000,000 for HAP or the lesser of twenty five percent (25%) of the Total Development Cost or $2,000,000 for HOME.

(4) The HLP Construction Loan or Purchase Assistance Loan must be in not lower than a second lien position and shall not share priority with any other liens unless approved by the Board.

(5) HLP funding must be expended within three (3) years of the Loan Closing Date unless otherwise approved by the Board.

(6) The accumulation of all Development financing, including the HLP Loan and all existing debt within a Development, may not exceed the Total Development Cost, as determined by the Credit Underwriter. The accumulated sales generated revenue of all single-family homes must equal the Total Development Cost. Any changes to the Total Development Cost shall result in the adjustment of home sales prices to reflect these changes.

(7) The proceeds from the HLP Purchase Assistance Loan made to an Eligible Homebuyer shall be used to repay the HLP Construction Loan.

(8) Applicants are responsible for:

(a) The construction of affordable housing;

(b) The marketing of Units in the Development and providing referrals of potential Eligible Borrowers to the first mortgage lender;

(d) Assisting the Corporation and the Servicer with performing Draw inspections, collecting payments and defaults, foreclosure procedures and performing compliance monitoring; and,

(e) With respect to HOME, ensuring compliance with HUD requirements, pursuant to 24 CFR §92.

(9) Prior to disbursing any funds, there must be a written agreement with the Applicant ensuring compliance with the requirements of HLP, pursuant to this rule chapter, Florida Statutes, and HUD Regulations.

(10) The Corporation shall require adequate insurance to be maintained on the Development as determined by the first mortgage lender and the Corporation’s Servicer, including fire, hazard and other insurance sufficient to meet mortgage standards.

(11) The Corporation or its Servicer shall monitor the compliance with all terms and conditions of the HLP loan and any violation of any term or condition shall constitute a default of the loan.

(12) The construction period shall be for a period of not more than three (3) years beginning on the Loan Closing Date, unless otherwise approved by the Board for a specified period of time. Applicants applying for an extension must:

(a) Request the extension in writing at least sixty (60) days prior to the end of the construction period;

(b) State a specific length of time needed to complete the Development and the reason the extension is needed;

(d) Supply an alternate financing plan in the event the original financing source withdraws; and,

(e) Provide assurance that the extension will result in the successful completion of the Development.

(f) Applicants will be charged a penalty fee of $100 for each extension request, pursuant to Section 420.507(4), F.S., payable at the time of the request.

(13) The Applicant shall not refinance, increase the principal amount, or alter any terms or conditions of any construction loan superior or inferior to the HLP loan without prior approval of the Board.

(14) The unpaid principal balance of the Construction Loan shall be due and payable upon the sale or transfer of the secured property.

(15) If the Board determines that any Applicant or any Affiliate of an Applicant has:

(a) Engaged in fraudulent actions;

(b) Materially misrepresented information to the Corporation regarding any of its Developments within the current Application or in any previous applications for financing or an allocation of Housing Credits administered by the Corporation;

(d) Been excluded from federal or Florida procurement programs, or

(e) Been convicted of a felony,

and upon determination by the Board that such action substantially increases the likelihood that the Applicant will not be able to produce quality affordable housing, the Applicant or any Principal, or Affiliate of an Applicant or Developer will be ineligible for funding or allocation in any program administered by the Corporation for a period of two (2) years, which will begin from the date the Board makes such determination, pursuant to Sections 420.507(14) and (34), F.S. Such determination shall be made either pursuant to a proceeding conducted pursuant to Sections 120.569 and 120.57, F.S., or as a result of a finding by a court of competent jurisdiction.

(16) If an Applicant or any Principal, or Affiliate of an Applicant or Developer has any existing Developments participating in any Corporation programs that remain in non-compliance with the Code, the applicable Florida Statutes and rule chapters, loan documents, or any loan commitment after any applicable cure period granted for correcting such non-compliance has ended, at the time of submission of the Application or issuance of a credit underwriting report, the requested allocation will be denied, upon determination by the Board that such non-compliance substantially increases the likelihood that such Applicant will not be able to produce quality affordable housing. The Applicant and the Affiliates of the Applicant or Developer shall be prohibited from new participation in any of the Corporation’s Programs for the subsequent cycle and continuing until such time as all of their existing Developments are in compliance.

(17) Applicants that choose to withdraw from the program prior to developing any units shall be responsible for repayment of any expenses paid by the Corporation, including credit underwriting, environmental review, and monitoring services fees.

(18) If the HLP commitment is cancelled by the Corporation for failure to adhere to rule deadlines or for reasons within the Applicant's control, the Developer will be responsible for reimbursing the Corporation for fees incurred for credit underwriting and environmental review processing.

(19) The name of the Development provided in the Application may not be changed or altered after submission of the Application during the history of the Development with the Corporation unless the change is mandated by local, state or federal governmental authorities, or otherwise approved by the Board. Evidence of such mandate must be submitted to the Corporation upon official notification by the local, state or federal authorities.

(20) The Eligible Homebuyer must maintain replacement cost hazard insurance naming the Corporation as an additional insured.

(21) A mortgagee policy of title insurance in the amount of the HLP Purchase Assistance Loan must be provided naming the Corporation as an additional insured.

(22) Loans shall be evidenced by a properly executed note and secured by a properly executed and recorded mortgage provided by the Corporation.

(23) Failure to comply with the agreed upon income set-aside requirements as stated in the Application shall result in a retroactive interest rate adjustment from the HLP Construction Loan interest rate to the current market rate.

(24) Applicants will be required to submit progress reports, as directed by the Corporation. Failure to provide the information and documentation requested shall result in the withdrawal of any remaining funds.

(25) Failure to comply with any part of this rule chapter without a waiver or variance being granted by the Board, pursuant to Section 120.542, F.S., and Rule Chapter 28-104, F.A.C., shall result in the disqualification of the Applicant and withdrawal of any commitment for loan funds.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5089(2) FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.045 Scattered Site Developments

(1) A Scattered Site Development must meet the definition in subsection 67-50.005(83), F.A.C., under this rule chapter and cannot exceed twenty-five (25) Units. Information in this section is meant to clarify the credit underwriting and environmental review process. All other requirements of HLP still apply.

(2) Applicants will not be required to demonstrate site control during the application cycle or credit underwriting unless construction financing is requested. However, each Applicant will be required to submit supporting information for the general areas in which funding will be used during the credit underwriting process for the proposed number of homes. This option is available to Applicants applying for purchase assistance funds only.

(3) Florida Housing’s Credit Underwriter will perform an underwriting analysis of the Developer to determine experience, financial capacity and the economic feasibility of the proposed Development and make a recommendation to the Board.

(4) Upon completion of credit underwriting and approval from the Board, the Developer must identify suitable lots in groups of a minimum of four (4), demonstrate site control for those lots, and provide the appropriate information to all service providers for further analyses relating to environmental impacts, suitability and affordability within six (6) months of Board approval date.

(5) All Scattered Site Developments will be required to undergo an environmental analysis in accordance with ASTM E1528-00 standards, which is adopted and incorporated into this rule chapter by reference and which is available by contacting the Corporation at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329. The analysis must be completed prior to the submission of the group of four (4) or more lots to the Corporation.

(6) For HOME developments only, as an additional HUD requirement, Florida Housing’s environmental specialist, or designee, will perform the environmental analysis pursuant to 24 CFR §92.352, which is adopted and incorporated into this rule chapter by reference and which is available at http://www.gpoaccess.gov/cfr/index.html.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS. History–New 8-9-05.

Fla. Admin. Code R. 67-50.050 HAP Restrictions

(1) HAP funding shall be made available for either the construction of or purchase assistance to the homebuyer on affordable housing Developments, as defined in subsection 67-50.005(30), F.A.C. Funding shall also be made available for land acquisition, predevelopment expenses and infrastructure; however, in no event shall the funds be used solely for these purposes.

(2) A Non-Profit organization must have control of the Development and materially participate in the development and sale of the property through the construction period.

(3) Non-Profit Sponsor Applicants must:

(a) Have been in existence for at least one (1) year prior to applying for HAP funds; and,

(b) Own the property or have a valid contract for purchase of the property and utilize the services of either a Non-Profit or for-profit Developer who has a proven record of providing similar housing.

(4) The interest rate for a HAP Construction Loan is zero percent (0%).

(5) The Land Use Restriction Agreement (LURA) shall contain restrictive covenants to ensure that the Development maintains the minimum set-aside requirements for HAP, pursuant to Section 420.5088, F.S., as well as the specific amenities and set-asides the Applicant committed to in the Application.

(6) The terms of the HAP Purchase Assistance Loan made to an Eligible Homebuyer are as follows:

(a) A HAP Purchase Assistance Loan shall be made available to an Eligible Homebuyer who purchases a home built by a Developer participating in HLP under HAP.

(b) The Eligible Homebuyer must have an Adjusted Income that does not exceed eighty percent (80%) AMI at the time of the loan closing.

(c) A HAP Purchase Assistance Loan is limited to the lesser of twenty five percent (25%) of the purchase price of the house or the amount necessary to enable the purchaser to meet credit underwriting criteria.

(d) Repayment of the HAP Purchase Assistance Loan is due upon the first to occur of the maturity of the first mortgage loan or upon the sale, transfer, refinancing, or rental of the secured property.

(e) The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the appraised value of the home. In the one hundred five percent (105%) loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgivable within a five (5) year period.

(f) The HAP Purchase Assistance Loan shall be underwritten by the first mortgage lender and reviewed by the Corporation’s designated Servicer.

(g) The purchase price of the house cannot exceed the appraised value or the maximum purchase price, as determined by the SFMRB Program at the time of the beginning of the construction of the house.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.060 HOME Restrictions

(1) HOME funding shall be made available for construction of affordable housing and homebuyer purchase assistance for Eligible Developments, pursuant to 24 CFR §92.

(2) The maximum per-unit subsidy of HOME funding is limited to the lesser of twenty five percent (25%) of the purchase price of the house or $70,000, with the exception of Eligible Homebuyers with disabilities and Eligible Homebuyers at fifty percent (50%) AMI or below. For these exceptions assistance shall not exceed thirty five percent (35%) of the purchase price.

(3) The annual interest rate for the construction loan will be determined as follows:

(a) All for-profit Applicants that have one hundred percent (100%) ownership interest in the Development held by the general partner entity will receive a three percent (3%) per annum interest rate loan.

(b) All qualified Non-Profit Applicants that have one hundred percent (100%) ownership interest in the Development held by the general partner entity will receive a zero percent (0%) interest rate loan.

(c) All Applicants consisting of a Non-Profit and for-profit partnership will receive a zero percent (0%) interest rate on the portion of the loan equal to the qualified Non-Profit’s ownership interest in the Development. A three percent (3%) interest rate shall be charged on the portion of the loan equal to the for-profit’s ownership interest in the Development. Should the Applicant sell, transfer, or convey any portion of the ownership in the Development, the loan interest rate ratio will be adjusted to conform with the new percentage of for-profit to Non-Profit ownership.

(4) The Corporation shall acquire real and personal property or any interest in the Development if that acquisition is necessary to protect any loan; sell, transfer, and convey any such property to a buyer without regard to the provisions of Chapters 253 and 270, F.S.; and, if that sale, transfer, or conveyance cannot be consummated within a reasonable time, lease the Development for occupancy by eligible persons.

(5) The minimum amount of HOME funds that can be allocated on a per-unit basis for all Developments is $2,500.

(6) All units must adhere to affordability requirements pursuant to 24 CFR §92.254 and the recapture provisions described in 24 CFR §92.254(5)(ii)(1).

(7) Funds shall not be used to pay for ineligible costs in accordance with 24 CFR §92.214(a) and the following ineligible costs:

(a) Development reserve accounts for replacement, anticipated increases in operating costs, or operating subsidies, except as described in this rule chapter;

(b) Administrative costs; and,

(8) All contracts for the construction of a Development with 12 or more HOME-Assisted Units must contain a provision requiring that the wages paid to all laborers and mechanics employed for the construction of the Development will not be less than the wages prevailing in the locality, as predetermined by the U.S. Secretary of Labor pursuant to the Davis-Bacon Act, 40 U.S.C. §276a-265-a-5 (1994), 24 CFR §92.354, 24 CFR §70 (volunteers) and 40 U.S.C. 276c. Such contracts shall also be subject to the overtime provisions of the Contract Work Hours and Safety Standards Act, 40 U.S.C. 327-333 (1994), and the Copeland Act (Anti-Kickback Act) 40 U.S.C. §276c (1994) and the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), which are adopted and incorporated herein by reference and which are available at http://www.gpoaccess.gov/cfr/index.html or http://www.gpoaccess.gov/uscode/index.html.

(9) If the Development has 12 or more HOME-Assisted Units, the General Contractor and all available subcontractors shall attend a Corporation-sponsored pre-construction conference regarding federal labor standards provisions.

(10) The Corporation requires attendance at a FHFC-sponsored pre-construction conference prior to the commencement of any physical construction activities regardless of the use of HOME funds. No waivers for this conference will be granted.

(11) A representative of the Applicant must attend a Corporation-sponsored training session on income certification and compliance procedures.

(12) The Corporation is required by HUD to match non-federal funds to the HOME allocation as specified in 24 CFR §92.218.

(13) All HOME Developments must conform to the following federal requirements which are adopted and incorporated herein by reference and available at http://www.gpoaccess.gov/cfr/index.html or http://www.gpoaccess.gov/uscode/index.html:

(a) Equal Opportunity and Fair Housing as enumerated in 24 CFR §92.202 and 92.250, 42 U.S.C. 2000d et seq., 42 U.S.C. 3601-3620, 42 U.S.C. 6101, and 24 CFR §5.105(a).

(b) Affirmative Marketing as enumerated in 24 CFR §92.351.

(c) Environmental Review as enumerated in 24 CFR §92.352, 24 CFR §58 and National Environmental Policy Act of 1969. The Corporation requires HUD Environmental Review clearance prior to commencing any physical construction activities, regardless of the use of HOME funding.

(d) Displacement, Relocation, and Acquisition as enumerated in 24 CFR §92.353, 42 U.S.C. 4201-4655, 49 CFR §24, 24 CFR §42 (Subpart B), and Chapter 104(d) “Barney Frank Amendments.”

(e) Labor Standards as enumerated in 24 CFR §92.354, 40 U.S.C. 276a-276a-5, 24 CFR §70 (volunteers), and 40 U.S.C. 276c.

(f) Lead-based Paint as enumerated in 24 CFR §92.355, 42 U.S.C. 4821 et seq., 24 CFR §35 and 24 CFR §982.401(j) (except paragraph 982.401(j)(1)(i)).

(g) Conflict of Interest as enumerated in 24 CFR §92.356, 24 CFR §85.36 and 24 CFR §84.42.

(h) Debarment and Suspension as enumerated in 24 CFR §5.

(i) Flood Insurance as enumerated in Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106).

(j) Handicapped Accessibility as enumerated in 24 CFR §8 and 24 CFR §100.205.

(k) Equal Opportunity Employment as enumerated in 41 CFR §60.

(l) Economic Opportunity as enumerated in 24 CFR §13.5.

(m) Minority/Women Employment as enumerated in 24 CFR §85.36(e).

(14) Applicants and lenders are responsible for providing the Corporation or the Servicer with completed documentation of the homebuyer and homeownership requirements established by the Corporation and 24 CFR §92.254 and the record keeping requirements described in 24 CFR §92.508.

(15) A HOME-Assisted Unit shall qualify as affordable housing if:

(a) The value or initial purchase price of the property after construction does not exceed ninety-five percent (95%) of the median purchase price for the area, pursuant to 24 CFR §92.254;

(b) The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the after construction or appraised value of the HOME-Assisted Unit with the exception of Eligible Homebuyers with disabilities for which the ratio cannot exceed one hundred twenty percent (120%). In the loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgiveable within a five (5) year period;

(c) The person or household qualifies as an Eligible Homebuyer at the time of purchase and who will occupy the home acquired property as their principal residence throughout the affordability period, pursuant to 24 CFR §92.254(4);

(d) The purchase price of the property after construction must not exceed the appraised value of the property; and

(e) When HOME funds are used with other Corporation programs, the more stringent credit underwriting criteria will apply as it relates to eligibility requirements.

(16) All homes in the Development must be sold to persons or households that have an Adjusted Income that does not exceed eighty percent (80%) AMI.

(17) The Eligible Homebuyer shall adhere to the following terms and conditions:

(a) The HOME Purchase Assistance Loan shall have a zero percent (0%) interest rate and be non-amortizing with principal deferment until maturity.

(b) Repayment of Principal on the HOME Purchase Assistance Loan shall be deferred until the homebuyer sells, transfers or disposes of the home either voluntarily or involuntarily, or ceases to occupy the home as a principal residence pursuant to 24 CFR §92-254(4). In the case of Community Land Trusts, loans may be assumed by Eligible Homebuyers.

(18) The Corporation will consider subordinating its existing second mortgage loan to a first mortgage loan when a refinancing occurs. In making a determination, the Corporation will review the following terms of the new transaction: loan type, term of the loan, interest rate, type of interest rate (variable or fixed), principal balance of the loan, reason for requesting subordination of the loan and whether or not the terms of the new loan are beneficial to the borrower. Borrowers requesting subordination are subject to the following:

(a) The borrower must have resided in the property for at least one year prior to requesting the subordination;

(b) No additional debt can be refinanced into the new first mortgage with the exception of home repairs or improvements;

(d) The borrower is limited to one subordination.

(19) Any borrower requesting subordination is subject to a one time processing fee not to exceed $50. In the event it is determined that the borrower is not eligible for subordination, fifty percent (50%) of the processing fee will be returned to the borrower. Failure to submit the appropriate documentation and fees may result in a delay in receiving the subordination agreement.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.070 Application and Selection Procedures

(1) All Applicants must submit a completed HLP Application Package: HOMEOWN-0530 (Rev. 8/1/05), which is adopted and incorporated herein by reference, and which can be obtained from the Corporation, at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329 and is available on the Corporation’s website. All Applications must:

(a) Be submitted complete, legible and consistent throughout;

(b) Be received by the Application Deadline, as specified in the NOFA; and,

(c) Include an original Application, with an original signature on the Applicant Certification and Acknowledgement Form (Exhibit 1), and three identical copies. Lack of an Original Application shall be grounds for automatic rejection.

Corporation staff may not assist any Applicant by copying, collating or adding documents to an Application, nor shall any Applicant be permitted to use the Corporation facilities or equipment for purposes of compiling or completing an Application.

(2) Each submitted Application will be reviewed and preliminarily scored using the factors specified in the Application Package and this rule chapter. Preliminary scores shall be transmitted to all Applicants along with the master score sheet and deficiency report.

(3) Failure to submit an Application completed in accordance with the Application instructions and this rule chapter will result in rejection of the Application or a score less than the maximum available in accordance with the instructions in the Application and this rule chapter.

(4) Cures. Within twenty (20) Calendar Days of the date of the notice set forth in subsection (2) above, each Applicant shall be allowed to submit revised pages and additional documentation, (the “revisions”) as the Applicant deems appropriate to address the issues raised in the master scoring sheet and deficiency report that could result in rejection of the Application or a score less than the maximum available. Applicants failing to cure successfully during the initial cure period will be given notice and have the opportunity to submit a cure during a subsequent cure period if funding remains available. Applicants submitting an additional cure will have ten (10) days from the date of notification. The following instructions will apply to all cure submissions:

(a) Each new page must be marked “revised.”

(b) Failure to mark each new page “revised” will result in the Corporation not considering the revisions to that new page.

(c) Where revisions create an inconsistency elsewhere in the Application, the Applicant is required to make such other changes to keep the Application consistent.

(d) Pages of the Application that are not revised may not be resubmitted, with the exception of documents executed by third parties, which must be submitted in their entirety.

(e) The Applicant shall submit an original and three copies of all revisions; submissions via the internet or facsimile shall not be accepted.

(f) Only revisions received by the deadline set forth herein will be considered.

(g) Any subsequent revisions submitted prior to the deadline must include a written request to withdraw any previous revision.

(5) The Corporation shall reject an Application, as detailed in the Application Package and this rule chapter, if:

(a) The Development is inconsistent with the purposes of HAP or HOME, as applicable.

(b) The Applicant fails to achieve the threshold requirements or the minimum score required.

(c) The Applicant or any Principal or Affiliate of an Applicant or Developer is in arrears for any financial obligation to the Corporation or any agent or assignee of the Corporation. For purposes of the HOME Program, this rule subsection does not include permissible deferral of HOME interest.

(6) When two or more Applications receive the same numerical score, the Applications will be ranked as outlined in the Application instructions.

(7) At no time during the scoring process shall Applicants or their representatives contact Board members or Corporation staff, except for Corporation’s legal staff, concerning their own Development or any other Applicant’s Development. If an Applicant or its representative does contact a Board member or staff in violation of this section, the Board may, upon a determination that such contact was deliberate, disqualify such Applicant’s Application.

(8) Following the receipt and review of the documentation described in subsection (4), above, and upon Board approval, the Corporation shall issue a final score and ranking to each Applicant, disclosing whether or not the Applicant met the threshold and minimum score requirements. In determining such final scores and rankings, no Application shall be rejected or receive a point reduction as a result of any issues not previously identified in the notice described in subsection (4), above. However, inconsistencies created by the Applicant as a result of information provided pursuant to subsection (4), above, will be justification for rejection or reduction of points as appropriate. Notwithstanding the foregoing, any deficiencies in the mandatory elements set forth in subsection (9), below, can be identified at any time prior to sending the final scores to Applicants and will result in rejection of the Application.

(9) Notwithstanding any other provisions of these rules, there are certain items that must be included in the Application and cannot be revised, corrected or supplemented after the Application Deadline. Failure to submit these items in the Application at the time of the Application Deadline shall result in rejection of the Application without opportunity to submit additional information. Any attempted changes to these items will not be accepted. The items are as follows:

(a) Name of Applicant;

(b) Identity of each Developer, including all co-Developers;

(d) Total number of units;

(e) Site for the Development (except for scattered site developments);

(f) Type of Development category;

(g) County;

(h) Demographic or target demographic area;

(i) Designation of Applicant (Non-Profit, for-profit, Local Government, Public Housing Authority, CBO, or CHDO);

(j) Funding request amount;

(k) Submission of one original hard copy with the required number of photocopies of the Application by the Application Deadline; and,

(l) Payment of the required Application fee by the Application Deadline.

(10) All scores and rankings will be approved by the Board. Those Applications which complete the threshold requirements will be presented to the Board for final approval of the preliminary allocation and the invitation to enter into credit underwriting, subject to the availability of funds.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.080 Credit Underwriting Procedures

(1) Each Applicant shall undergo credit underwriting to determine the financial stability, capacity and experience of the Applicant and the economic and financial feasibility of the Development. The Applicant will be subject to credit underwriting as prescribed by the Corporation’s Credit Underwriter.

(2) Applicants utilizing HLP funding for construction shall undergo an in-depth underwriting analysis consisting of items on the checklist provided by the Credit Underwriter.

(3) Applicants utilizing HLP funding for purchase assistance shall undergo an analytical review consisting of components on the checklist provided by the Credit Underwriter.

(4) The Applicant shall submit all the required information to the Credit Underwriter within sixty (60) days of the date of the notification letter. If an extension is needed, a written request substantiating the need for the extension must be provided to the Corporation prior to the sixty (60) day initial deadline, subject to approval by the Credit Underwriter and the Corporation. Applicants will be charged a penalty fee of $100 for each extension request, pursuant to Section 420.507(4), F.S., payable at the time of the request. In the event the time limitation expires, the Corporation will request that the Applicant relinquish the preliminary allocation and it will be made available to the next ranked Applicant.

(5) The Credit Underwriter shall verify all information in the Application, including information relative to the Applicant, Developer, Contractor and other members of the Development team. The Corporation shall provide the draft underwriting report to the Applicant for review and comment. The Credit Underwriter will provide a final report to the Corporation, which will address comments made by the Applicant, as deemed appropriate.

(6) The Credit Underwriter shall request the following information:

(a) For Principals and guarantors, audited financial statements or financial statements compiled or reviewed in accordance with Statement on Standards for Accounting and Review Services (SSARS) No. 1, which is adopted and incorporated herein by reference and which can be obtained from the Corporation, at 227 North Bronough Street, Suite 500, Tallahassee, Florida 32301-1329, for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. If audited financial statements or financial statement compiled or reviewed in accordance with SSARS No. 1 are not available, unaudited financial statements prepared within the last 90 days and reviewed by the Credit Underwriter and the two most recent year’s tax returns.

(b) For the Applicant and general partner, audited financial statements or financial statements compiled or reviewed in accordance with SSARS No. 1, for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. If the entities are newly formed (less than 18 months in existence as of the date that the credit underwriting information is requested), a copy of any and all tax returns with related supporting notes and schedules.

(7) The Credit Underwriter shall report any inconsistencies or discrepancies or changes made to the Applicant’s Application during credit underwriting. If at any time the Applicant’s Development or Development team is no longer the Development or Development team described in the Application, and the changes made are prejudicial to the Development or the market to be served by the Development or if any discrepancy or misrepresentation is found, the Application will be rejected.

(8) The Credit Underwriter shall use the following procedures during the underwriting evaluation:

(a) Review and determine if the number of loans and construction commitments of the Applicant and its Principals will impede its ability to proceed with the successful completion of each proposed Development.

(b) The Credit Underwriter shall consider the following when determining the need for construction completion guarantees:

Liquidity of the guarantor.
Developer and Contractor’s history in successfully completing Developments of similar nature.
Problems encountered previously with Developer.
Problems encountered previously with Contractor.

(c) Review the appraisal and other market documentation to determine if the market exists to support both the demographic and income restriction set-asides committed to within the Application.

(9) A full or self-contained appraisal, as defined by the Uniform Standards of Professional Appraisal Practice, must be received on each model and typical lot being offered for sale by the Applicant.

(10) A market study performed by an independent third party, licensed real estate professional, must be received that details the immediate development area and include:

(a) Analysis of area population;

(b) Availability of infrastructure and services (schools, transportation, employers, recreation, and medical facilities);

(d) Current housing sales trends; and,

(e) Community need for the proposed Development.

(11) The appraisal(s) and market study are due to the Credit Underwriter within sixty (60) days from the date of the notification letter. The costs associated with the production of these reports are the Applicant’s responsibility and should be included in the total development budget.

(12) If the Credit Underwriter requires additional clarifying materials, the Credit Underwriter shall request that the Applicant provide them and specify a deadline for submission. Failure to submit the required information by the specified deadline shall result in the Application being rejected, unless a written extension of time is approved by the Board.

(13) A pre-construction analysis and review of the Development’s costs shall be required prior to the closing of the HLP Construction Loan.

(14) The Applicant will bear the cost of all documentation submitted to the Credit Underwriter for review (i.e., appraisal, credit report, environmental study, etc.). The Applicant may reimburse itself for these costs with HLP funding from the first Draw.

(15) After the approval of the Credit Underwriter’s recommendation by the Board or a committee appointed by the Board, and pending resolution of any outstanding issues, the Corporation shall issue a HLP loan commitment.

(16) Once the Board has approved the final credit underwriting report, the Applicant will have ninety (90) days from the credit underwriting approval date to close the loan. If an extension is needed, a written request substantiating the need for the extension must be provided to the Corporation prior to the ninety (90) day initial deadline, subject to approval by the Board. However, the extension cannot exceed a period of sixty (60) days. Applicants will be charged a penalty fee of $100 for each extension request, pursuant to Section 420.507(4), F.S., payable at the time of the request. In the event the time limitation expires, the Corporation will request that the Applicant relinquish the preliminary allocation and it will be made available to the next ranked Applicant.

(17) The Applicant must submit a written request for any changes to the Development or it’s financing from the original Application. All requests must be submitted in writing to the program administrator and contain the specific reasons for requesting the change. The written request must be submitted to the Corporation for consideration.

(18) Prior to the loan closing:

(a) The Applicant must provide evidence of all necessary consents or required signatures from first mortgagees or subordinate mortgagees to the Corporation and its counsel; and,

(19) All other financing commitments for the Development must close prior to or simultaneous with the HLP Construction Loan.

(20) The Applicant will be required to commence construction within ninety (90) days of the Loan Closing Date. If additional time is needed, an extension must be filed in writing prior to the ninety (90) day deadline, substantiating the need for the extension and must include a revised construction schedule, subject to approval by the Credit Underwriter and the Corporation. Applicants will be charged a penalty fee of $100 for each extension request, pursuant to Section 420.507(4), F.S., payable at the time of the request.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 9-5-02, Amended 5-4-03, 12-28-04, 8-9-05.

Fla. Admin. Code R. 67-50.090 Disbursement of Funds, Draw Requests, and Loan Servicing

(1) Disbursement of Funds. Construction Loan proceeds shall be disbursed in an amount that does not exceed the ratio of the loan to the Total Development Cost and is pro-rata with all other construction financing, unless otherwise approved by the Corporation and the Credit Underwriter.

(2) Draw Requests. Ten (10) days prior to each Draw, the Applicant shall provide the Servicer with a signed, written Draw request, which includes the requested amount, documentation of liability and builder’s risk insurance acceptable to the Corporation, and claims for labor and materials to date of the last inspection.

(3) Loan Servicing. The Servicer shall review the Draw request and provide the Corporation with approval of the request or an alternative amount.

(4) Five percent (5%) of the Construction Loan funds will be held as retainage. Release of funds held as retainage for each house shall occur only after the Applicant provides:

(a) A satisfactory final inspection certificate or certificate of occupancy;

(b) A final, as-built survey;

(d) A title insurance policy insuring the Corporation’s interest and containing no exceptions that are unacceptable to the Corporation.

(5) In addition to the five percent (5%) retainage, the Corporation shall elect to withhold any Draw or portion of any Draw if:

(a) The actual budget cost or progress of construction is materially greater than that shown in the sources and uses statement;

(b) The percentage of progress of construction differs materially from that shown on the Draw Request, or

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(18), 420.5088, 420.5089 FS. History–New 9-5-02, Amended 12-28-04.

Fla. Admin. Code R. 67-50.105 Reallocation for Disaster Areas

(1) In the event of a State or federally declared disaster, any allocation authority not preliminarily allocated, as well as any authority remaining after preliminary allocation, shall be diverted to one or more State or federally declared disaster areas as approved by the Board. HOME funds shall be utilized in any form acceptable to HUD and approved by the Board. Further, in the case of HOME funds being allocated for a State or federally declared disaster, the Corporation will publish a Notice of Funds Availability which will include information on the amount and targeting of funds, the instructions and time frame for making application, and fees.

(2) For the purposes of this rule, those eligible to apply must submit a completed Application Package: HOME Again – FHFC Disaster Relief HOME Assistance Program – DRHAP-813 (Eff. 12/9/04), which is adopted and incorporated herein by reference, and which can be obtained from the Corporation, at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329 and is available on the Corporation’s website.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5089(2) FS. History–New 12-28-04.

Chapter 67-51 HOMEOWNERSHIP ASSISTANCE FOR MODERATE INCOME LOAN PROGRAM

Fla. Admin. Code R. 67-51.001 Definitions

History

Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Amended 2-2-05, 7-10-06, Repealed 8-16-21.

Fla. Admin. Code R. 67-51.003 General Program Restrictions

History

Rulemaking Authority 420.507(12), 420.507(24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Repromulgated 7-10-06, Repealed 8-16-21.

Fla. Admin. Code R. 67-51.004 Application Procedures

History

Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Amended 7-10-06, Repealed 8-16-21.

Fla. Admin. Code R. 67-51.005 Terms and Conditions of Loans

History

Rulemaking Authority 420.507(12), 420.507(24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Amended 7-10-06, Repealed 8-16-21.

Fla. Admin. Code R. 67-51.006 Loan Processing

History

Rulemaking Authority 420.507(12), 420.507(24) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Repromulgated 7-10-06, Repealed 8-16-21.

Fla. Admin. Code R. 67-51.007 Fees

History

Rulemaking Authority 420.507(12), 420.507(24), 420.507(4) FS. Law Implemented 420.509, 420.509(11)(c) FS. History–New 12-7-03, Repromulgated 7-10-06, Repealed 8-16-21.

Chapter 67-52 CORPORATION CLERK

Fla. Admin. Code R. 67-52.002 Corporation Clerk

(1) The address for the Corporation Clerk is Clerk, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301. The email address for the Corporation Clerk is corporation.clerk@floridahousing.org.

(2) The Corporation Clerk shall receive all administrative petitions, motions, requests, pleadings and other papers and docket them, maintain the files of such proceedings, and prepare the record of any case that is appealed to a Florida District Court of Appeals. The cost for preparing, numbering, and indexing the record on appeal is $3.50 per instrument.

(3) Petitions, motions, requests or other pleadings may be delivered in the original or may be sent by facsimile or electronic mail. If filed by facsimile or electronic mail it is not necessary to also deliver an original document. All filings must be in compliance with rule 28-106.104, F.A.C., specifically including subsection 28-106.104(3), F.A.C., which states that “any document received by the office of the agency clerk before 5:00 p.m. shall be filed as of that day but any document received after 5:00 p.m. shall be filed as of 8:00 a.m. on the next regular business day.”

History

Rulemaking Authority 420.507(12) FS. Law Implemented 120.53(1), 420.507 FS. History–New 11-17-03, Amended 2-21-19.

Fla. Admin. Code R. 67-52.003 Final Orders

The Corporation Clerk will maintain all Corporation final orders and subject matter index and such orders pursuant to the requirements of section 120.53, F.S.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 120.53(1), 420.507 FS. History–New 11-17-03, Amended 2-21-19.

Fla. Admin. Code R. 67-52.004 Custodian

The Corporation Clerk will be the custodian of all the Corporation’s official records.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 120.53(1), 420.507 FS. History–New 11-17-03, Amended 2-21-19.

Chapter 67-53 COMPLIANCE PROCEDURES

Fla. Admin. Code R. 67-53.003 Compliance Procedures

History

Rulemaking Authority 420.507(12), 420.508(3)(a) FS. Law Implemented 420.507(4), (13), (14), 420.508, 420.509 FS. History–New 1-7-98, Formerly 9I-21.016, Amended 1-26-99, 11-14-99, 2-11-01, 3-17-02, 4-6-03, Repromulgated 3-21-04, Formerly 67-21.016, Repealed 8-20-09.

Fla. Admin. Code R. 67-53.0035 Florida Housing Finance Corporation

For the purposes of this rule chapter, the “Corporation” means the Florida Housing Finance Corporation as defined in Section 420.503(10), F.S.

History

Rulemaking Authority 420.507(12), 420.508(3)(a) FS. Law implemented 420.507(4), (13), (14), 420.508, 420.509 FS. History–New 8-20-09.

Fla. Admin. Code R. 67-53.004 Right to Inspect and Monitor Elderly Housing Community Loan (EHCL) Funded Developments

The Corporation or its agents shall have the right to inspect and monitor the records and facilities of all Elderly Housing Community Loan (EHCL), as established in Rule Chapter 67-32, F.A.C., funded developments. Inspections shall occur while the repairs or improvements are being made and may occur after completion of the repairs or improvements.

History

Rulemaking Authority 420.5087(3)(d) FS. Law Implemented 420.5087(3)(d) FS. History–New 10-2-89, Formerly 9I-32.010, Amended 11-9-98, 1-2-00, Repromulgated 12-31-00, Amended 3-17-02, Repromulgated 5-5-03, Formerly 67-32.010, Amended 8-20-09.

Fla. Admin. Code R. 67-53.005 Compliance Monitoring for Housing Developed With SHIP Local Housing Distribution Funds

History

Rulemaking Authority 420.9072(9) FS. Law Implemented 420.907, 420.9075(3)(e) FS. History–New 2-9-94, Amended 12-28-94, 1-6-98, Formerly 9I-37.015, Amended 12-26-99, 9-22-03, Formerly 67-37.015, Repealed 4-24-08.

Fla. Admin. Code R. 67-53.006 Compliance and Monitoring Procedures for the Pre-Development Loan Program (PLP)

(1) Units within the development that are occupied at the time of the Pre-Development Loan Program (“PLP”) Loan closing as defined in Rule Chapter 67-38, F.A.C., shall meet development set-aside requirements at that time.

(2) For new construction or rehabilitation of rental units not occupied at the time of PLP Loan closing, the Applicant shall notify the Corporation prior to the leasing of any units in the development. The units shall be leased by income eligible tenants.

(3) For rental PLP developments which obtain subsequent construction or permanent financing from Corporation programs, the compliance and monitoring requirements of the program or programs under which funding is received shall apply.

(4) For rental PLP developments that obtain subsequent construction or permanent financing from sources other than Corporation programs and no Corporation funds remain in the development:

(a) Any duly authorized representative of the Corporation shall be permitted at any reasonable time to inspect and monitor the records and facilities of the PLP development for compliance with the following conditions:

For home ownership PLP developments: The Corporation and or its representative shall perform an initial review to determine home buyer eligibility and verify permanent residency.
For multifamily rental PLP developments: The Corporation or its representative shall monitor tenant records and facilities for compliance during the Compliance Period with the following conditions:

a. All tenant records shall be maintained by the Applicant within 50 miles of the PLP development site.

b. The Corporation or its representative shall conduct on-site PLP development inspections at least annually.

c. The Corporation must approve the Applicant’s selection of a management company prior to the company assuming responsibility for the PLP development based upon the following criteria:

(I) Review of the company information including key management personnel, management experience and procedures,

(II) Review of company forms such as application for apartment residence, income verification forms, lease, etc.,

(III) Key management company representative attendance at a Corporation compliance workshop; and,

(IV) A meeting between Corporation compliance staff and the key management company representative after the compliance workshop.

(b) The Applicant or an authorized representative, if any, shall attend a compliance training workshop or meet with a representative from the Corporation or the monitoring agent for a compliance training conference prior to initial leasing of any units.

(c) The Applicant shall maintain complete and accurate income records pertaining to each tenant occupying a set-aside unit. Records for each occupied set-aside unit shall contain at least the following documentation:

The tenant’s application which shall contain the name or names of each household member, employment and income information for each household member, and other information required by the Applicant,
A copy of the lease agreement listing the term of the tenancy and each tenant residing in the unit,
Verification of the income of each tenant as is acceptable to prove income under Section 8 of the U.S. Housing Act of 1937, as amended,
Information as to the assets owned by each tenant; and,
Tenant Income Certification Form, TIC-1, Rev. 02/06, which is hereby incorporated by reference, for each tenant. For Developments participating in Section 8 and RD Programs, the HUD Forms 50058, 50059, RD (or FmHA) Form 1944-8, which are hereby incorporated by reference, may be used in lieu of TIC-1 as long as proper documentation is maintained in the tenant files.

(d) With respect to rental PLP developments, program reports shall be submitted as follows:

Initial program reports for rehabilitation/acquisition PLP developments with units occupied at the time of the execution of the Invitation to Participate shall be submitted at the time of execution of the Invitation to Participate.
Initial program reports shall be submitted for developments with no units occupied at the time of the closing of the PLP Loan within 10 days following the end of the calendar quarter during which the leasing of any unit within the PLP development occurred.
Subsequent program reports shall be submitted each year during the compliance period and are due on the dates assigned by the Corporation according to an alphabetical breakdown by property.

(5) For homeownership PLP developments, the initial sale of all units shall be to income eligible purchasers.

History

Rulemaking Authority 420.528 FS. Law Implemented 420.528 FS. History–New 1-16-96, Formerly 9I-38.0145, Amended 3-26-98, 7-17-00, 7-21-03, Formerly 67-38.0145, Amended 8-20-09.

Fla. Admin. Code R. 67-53.007 Compliance Procedures

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087 FS., Chapter 93-186, Laws of Florida. History–New 1-25-94, Formerly 9I-43.011, 67-43.011, Repealed 8-20-09.

Fla. Admin. Code R. 67-53.008 Compliance and Reporting Requirements for State Apartment Incentive Loan (SAIL) Program, HOME Investment Partnerships (HOME) Rental Program, Multifamily Mortgage Revenue Bond (MMRB) Program, Housing Credit (HC) Program, Rental Recovery Loan Program (RRLP), and Elderly Housing Community Loan (EHCL) Program

(1) The Corporation shall monitor compliance of all terms and conditions of the Loans and of regulatory agreements, which regulatory agreements shall be recorded in the public records of the county wherein the development is located. Violation of any term or condition of the documents evidencing or securing the Loans shall constitute a default during the term of the Loans. The Corporation shall take legal action to effect compliance if a violation of any term or condition relative to the set-aside of units for qualified households is discovered during the course of compliance monitoring or by any other means. Any duly authorized representative of the Corporation shall be permitted at any time during normal business hours to inspect and monitor the construction or rehabilitation of any development that has received funding from the Corporation. Any duly authorized representative of the Corporation or the Treasury shall be permitted at any time during normal business hours to inspect and monitor development and resident records and facilities. All resident records shall be maintained by the owner of the development within 50 miles of the development site.

(2) Onsite inspections for Housing Credit (“HC”) developments, as defined in Rule Chapter 67-48, F.A.C.:

(a) An authorized representative of the Corporation will, at the Applicant’s expense, conduct four on-site construction inspections during the construction or rehabilitation of any competitive HC development. Any required re-inspection due to a finding of non-compliance will be at the Applicant’s expense.

(b) An authorized representative of the Corporation will, at the Applicant’s expense, conduct a minimum of one onsite construction inspection of a non-competitive HC development which has not received any other Corporation financing. Any required reinspection due to a finding of non-compliance will be at the Applicant’s expense.

(3) For programs other than EHCL, the Corporation or its representative shall conduct a management review and physical inspection of each development at a minimum of every three years, with a typical frequency of annual reviews, to inspect and monitor development and resident records, units, and facilities.

(4) The Corporation must approve the selection or replacement of a management company prior to such company assuming responsibility for the development, using the following criteria:

(a) Review of company information including key management personnel, management experience and procedures;

(b) Review of company forms such as application for apartment residence, income verification forms, lease, etc.;

(d) A meeting between Corporation compliance staff and the key management company representative.

(5) The Corporation will document approval of the management company to the owner of the development after successful completion of paragraphs (4)(a)-(d).

(6) The owner of the development shall maintain complete and accurate income records pertaining to each resident occupying a Low-Income or Very Low-Income unit. Records for each occupied Low-Income or Very Low-Income unit shall contain the following documentation:

(a) The resident’s rental application containing the name or names of each household member, employment and income information for each household member, and other information required by the owner of the development;

(b) An executed lease agreement listing the term of the tenancy and all of the residents residing in the unit;

(c) Verification of the income of each resident as is acceptable to prove income under Section 8 of the United States Housing Act of 1937, as in effect on the date of this rule chapter;

(d) Information as to the assets owned by each resident; and,

(e) TIC-1 for each resident.

(7) The Applicant shall submit Program Reports pursuant to the following:

(a) For those developments receiving competitive HC, the initial Florida Housing Finance Corporation Program Report, PR-1, Rev. 01/09, which is hereby incorporated by reference, shall be shall be prepared as of the last day of the calendar month during which execution of the Carryover (as defined in Rule Chapter 67-48, F.A.C.) allocation agreement occurred, if the development is occupied; or the rental of the initial unit in the development occurred, whichever is. For those developments receiving an allocation of non-competitive HC without any Corporation-issued loans, the initial PR-1 shall be prepared as of the last day of the calendar month during which final housing credit allocation occurred. Subsequent PR-1’s shall be prepared as of the last day of the calendar month. PR-1’s are due no later than the 15th of each month throughout the regulatory period. Annually, on dates assigned by the Corporation. The monitoring agent’s copy of each PR-1 shall be accompanied by TIC-1 copies for ten (10) percent of the executed TIC-1’s that were effective during the reporting year. The Annual Owner’s Certificate (AOC) of Housing Credit Program Compliance, Rev. 1-2009, AOC-1, which is hereby incorporated by reference, shall be signed by the owner of the HC development, certifying that for the preceding 12 month period the HC development met its Housing Credit set-aside requirements (to be sent to the Corporation only). Forms PR-1 and AOC-1 shall be provided by the Corporation and shall be submitted for all HC developments receiving Housing Credit Allocations since January 1, 1990.

(b) The failure of the initial or any subsequent HC Program Reports to confirm compliance as required in paragraph (a), above, shall, upon written notice of such failure from the Corporation or its agent to the Applicant, require correction of the failure within 90 days of such written notice. This shall be deemed the “correction period.” During the correction period:

An Applicant may request a 60-day extension of the correction period by submitting a written request to the Corporation’s Compliance Monitoring Administrator. Such written request must be received by the Corporation’s Compliance Monitoring Administrator at least 7 days prior to the expiration of the correction period.
The corporation shall consider the nature of the failure of compliance and the Applicant’s past compliance history in determining whether to grant a 60-day extension of the correction period. The HC development shall not be deemed non-compliant prior to the expiration of the correction period, unless otherwise required by 26 CFR 1.42-5. If the failure to comply is not, however, corrected within the correction period, or any extension of the correction period, such HC development shall then be deemed to be in noncompliance and be reported to the Board.

(8) For HOME Investment Partnerships (“HOME”) Rental Program, as defined in Rule Chapter 67-48, F.A.C., the initial PR-1 shall be prepared as of the last day of the calendar month during which the loan closing occurred, if the development is occupied, or the rental of the initial unit in the development occurred, whichever is later. Subsequent PR-1’s shall be prepared as of the last day of each calendar month. PR-1’s are due no later than the 15th of each month throughout the regulatory period. Annually, on dates assigned by the Corporation, the monitoring agent’s copy of each PR-1 shall be accompanied by TIC-1 copies for ten (10) percent of the executed TIC-1’s that were effective during the reporting year. PR-1’s shall confirm compliance as follows:

(a) If the Development is occupied at loan closing, the initial PR-1 and all subsequent PR-1 shall confirm compliance with the set-aside requirements and other development requirements, if any, as set forth in the LURA.

(b) If the development is occupied at loan closing, compliance with the set-aside requirements and other development requirements, if any, as set forth in the LURA, shall be confirmed by the first PR-1 submitted 12 months following the expiration of the last then-existing tenant lease, without regard to any extension of the term of any then-existing tenant lease. The calculation of the above 12-month period shall begin with the date of the HOME loan closing.

(c) The failure of the initial or any subsequent PR-1 to confirm compliance as required in this subsection, shall, upon written notice of such failure from the Corporation or its agent to the borrower, require correction of the failure within 90 days of such written notice. This shall be deemed the “correction period.” During the correction period:

A borrower may request a 60-day extension of the correction period by submitting a written request to the Corporation’s Compliance Monitoring Administrator. Such written request must be received by the Corporation’s Compliance Monitoring Administrator at least 7 days prior to the expiration of the correction period.
The Corporation shall consider the nature of the failure of compliance and the borrower’s past compliance history in determining whether to grant a 60-day extension of the correction period. The development shall not be deemed non-compliant prior to the expiration of the correction period. If the failure to comply is not, however, corrected within the correction period, or any extension of the correction period, such development shall then be deemed to be in non-compliance and be reported to the Board.

(9) For State Apartment Incentive Loan (“SAIL”) Program developments, as defined in Rule Chapter 67-48, F.A.C., and Rental Recovery Loan Program (“RRLP”) as established in Rules 67ER06-13 through 67ER06-24 and 67ER06-25 through 67ER06-41, F.A.C., the initial PR-1 shall be prepared as of the last day of the calendar month during which loan closing occurred, if the SAIL or RRLP development is occupied; or the rental of the initial unit occurred, whichever is later. Subsequent PR-1’s shall be prepared as of the last day of each calendar month. PR-1’s are due no later than the 15th of each month throughout the regulatory period. Annually, on dates assigned by the Corporation, the monitoring agent’s copy of each PR-1 shall be accompanied by TIC-1 copies for ten (10) percent of the executed TIC-1’s that were effective during the reporting year. PR-1’s shall confirm compliance as follows:

(a) If the development is not occupied at loan closing, the initial PR-1 and all subsequent PR-1’s shall confirm compliance with the set-aside requirements and other development requirements, if any, as set forth in the regulatory agreement.

(b) If the SAIL or RRLP development is occupied at the time of loan closing, compliance with the set-aside requirements and other SAIL or RRLP development requirements, if any, as set forth in the regulatory agreement, shall be confirmed by the first PR-1 submitted 12 months following the expiration of the last then-existing tenant lease, without regard to any extension of the term of any then-existing tenant leases. The calculation of the above 12-month period shall begin with the date of the loan closing.

(c) The failure of the initial or any subsequent PR-1’s to confirm compliance as required in this subsection, shall, upon written notice of such failure from the Corporation or its agent to the borrower, require correction of the failure within 90 days of such written notice. This shall be deemed the “correction period.” During the correction period:

A borrower may request a 60-day extension of the correction period by submitting a written request to the Corporation’s Compliance Monitoring Administrator. Such written request must be received by the Corporation’s Compliance Monitoring Administrator at least 7 days prior to the expiration of the correction period.
The Corporation shall consider the nature of the failure of compliance and the borrower’s past compliance history in determining whether to grant a 60-day extension of the correction period. The SAIL or RRLP development shall not be deemed non-compliant prior to the expiration of the correction period. If the failure to comply is not, however, corrected within the correction period, or any extension of the correction period, such SAIL or RRLP development shall then be deemed to be in non-compliance and be reported to the Board.

(10) For those developments receiving Multifamily Mortgage Revenue Bond Program (“MMRB”), as defined in Rule Chapter 67-21, F.A.C., funds from the Corporation, the initial PR-1 shall be prepared as of the last day of the calendar month during which bond closing occurred, if the MMRB development is occupied; or rental of the initial unit in the development occurred, whichever is later. Subsequent PR-1’s shall be prepared as of the last day of each calendar month. PR-1’s are due no later than the 15th of each month throughout the regulatory period. The monitoring agent’s and Trustee’s copy of each PR-1 shall be accompanied by the certificate of continuing program compliance. Annually, on dates assigned by Corporation, the monitoring agent’s and Trustee’s copy of the PR-1 shall be accompanied by TIC-1 copies for ten (10) percent of the executed TIC’s that were effective during the reporting year.

(a) The failure of the initial or any subsequent PR-1 to confirm compliance as required in this subsection, shall, upon written notice of such failure from the Corporation or its agent to the borrower, require correction of the failure within 90 days of such written notice. This shall be deemed the “correction period.”

(b) During the correction period a borrower may request a 60-day extension of the correction period by submitting a written request to the Corporation’s Compliance Monitoring Administrator. Such written request must be received by the Compliance Monitoring Administrator at least 7 days prior to the expiration of the correction period.

(c) The Corporation shall consider the nature of the failure of compliance and the borrower’s past compliance history in determining whether to grant a 60-day extension of the correction period. The development shall not be deemed non-compliant prior to the expiration of the correction period. If the failure to comply is not, however, corrected within the correction period, or any extension of the correction period, such development shall then be deemed to be in non-compliance and be reported to the Board.

(11) HC developments shall submit copies of each building’s completed IRS Low-Income Housing Credit Certification Form 8609, Rev. 12-2008, Part II – First-Year Certification, and Annual Statement for Low-Income Housing Credit Form 8609-A, Rev. 12-2008, for the first year housing credits are claimed to the Compliance Section of Florida Housing Finance Corporation. These forms are adopted and incorporated herein by reference and are due at the same time they are filed with the Internal Revenue Service. Form 8609 and Form 8609-A can be obtained from the Internal Revenue Service by calling 1(800)829-4477. Additionally, correspondence shall accompany these forms which indicates the first taxable year in which the Housing Credits were claimed, the fiscal operating year for the property, and for each building that is (or will be) part of a multiple building project attach a statement containing the name and address of the project and each building in the project.

(12) Compliance monitoring for each program will begin:

(a) For the SAIL Program, regardless of whether the development also received an HC allocation, following the SAIL loan closing or, if the development is occupied, prior to the SAIL loan closing.

(b) For the HOME Program, regardless of whether the development also received an HC allocation, following the HOME loan closing or, if the development is occupied, prior to the HOME loan closing.

(c) For developments receiving an allocation of non-competitive HC without any Corporation-issued loans, following final housing credit allocation.

(d) For developments receiving competitive HC without any Corporation-issued loans, following execution of the Carryover allocation agreement.

(e) For MMRB, regardless of whether the developments also received an HC allocation, following the bond closing or, if the development is occupied, prior to the bond closing.

(13) Household Income Certification.

(a) SAIL, MMRB, RRLP and HC applicants shall initially certify that the household gross income, adjusted for family size, of each household occupying a unit set aside for Low-Income, Very Low-Income or Extremely Low-Income persons or households meets income requirements specified in Section 142(d)(3)(B) of the Internal Revenue Code, which is adopted and incorporated herein by reference. Copies may be obtained by contacting the Corporation’s Compliance Monitoring Administrator. The determination of whether the income of a household occupying a unit in a development exceeds the applicable income limit shall be made at least annually on the basis of the current income of the household, except for any year if during such year no residential unit in the development is occupied by a new household whose income exceeds the applicable income limit. A development which certifies 100% of its units as low-income shall perform one annual income recertification effective upon the first anniversary of any household’s move-in or initial certification. No additional income recertification shall be required by the Corporation. However, annual determination of student status shall be required for households comprised entirely of students. Should the annual income recertification of such households result in noncompliance with income occupancy requirements, the next available unit must be rented to a qualifying household in order to ensure continuing compliance of the development.

(b) HOME applicants shall initially certify that the household gross income, adjusted for family size, of each household occupying a unit set aside for Low-Income, Very Low-Income or Extremely Low-Income persons or households meets income requirements specified in the Code of Federal Regulations, Title 24, Section 92.203, which is adopted and incorporated herein by reference. Copies may be obtained by contacting the Corporation’s Compliance Monitoring Administrator. The determination of whether the income of a household occupying a unit in a development exceeds the applicable income limit shall be made at least annually on the basis of the current income of the household, except for any year if during such year no residential unit in the development is occupied by a new household whose income exceeds the applicable income limit. A development which certifies 100% of its units as low-income shall perform one annual income recertification effective upon the first anniversary of any household’s move-in or initial certification. Additional income recertification shall be performed as specified in the Code of Federal Regulations, Title 24, Section 92.252, which is adopted and incorporated herein by reference. Copies may be obtained by contacting the Corporation’s Compliance Monitoring Administrator.

(14) Any Applicant obtaining funding from SAIL, RRLP, or supplemental loan, as established in Rule Chapter 67-48, F.A.C. (“Group 1 Applicants”), shall provide the Corporation with an audited financial statement and a fully completed and executed Financial Reporting Form (SR-1), Rev. 02/09 (“Form SR-1”), incorporated by reference, annually by its submission deadline to the Corporation’s servicer. The submission deadline for Group 1 Applicants is May 31st of each year. A late fee of $500 will be assessed by the Corporation to any Group 1 Applicant for failure to submit these documents by the submission deadline of each year. Group 1 Applicants shall complete all Parts (Parts 1-5) of Form SR-1 prior to its submission to the Corporation’s servicer.

(15) Any Applicant obtaining funding from HOME, MMRB, HC or EHCL (“Group 2 Applicants”) shall provide the Corporation with an audited financial statement and a fully completed and executed Form SR-1 annually by its submission deadline. The submission deadline for Group 2 Applicants is 120 days following their fiscal year end and shall be submitted to financial.reporting@floridahousing.org. A late fee of $250 will be assessed by the Corporation to any Group 2 Applicant for failure to submit these documents by the submission deadline of each year. Group 2 Applicants shall complete only Parts 1, 2, and 5 of Form SR-1 prior to its submission.

(16) The initial submission of the audited financial statement and a fully completed and executed Form SR-1 will be due for all Applicants following the fiscal year which the first unit is occupied. For both Group 1 and Group 2 Applicants, the Submission Documents shall include the Form SR-1 in its electronic form as a Microsoft Excel spreadsheet. The audited financial statements are to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the twelve (12) months ended December 31st and shall include:

(a) Comparative Balance Sheet with prior year and current year balances;

(b) Statement of revenue and expenses;

(d) Statement of cash flows; and,

(b) Notes.

The Applicant shall furnish to the Corporation or its servicer, unaudited statements, certified by the Applicant’s principal financial or accounting officer, covering such financial matters as the Corporation or its servicer may reasonably request, including monthly statements with respect to the development.

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087, 420.5089, 420.5099 FS. History–New 7-22-96, Amended 12-23-96, 1-6-98, Formerly 9I-48.006, Amended 11-9-98, 2-24-00, 2-22-01, 3-17-02, 4-6-03, 3-21-04, Formerly 67-48.00, Amended 1-17-05, 8-20-09.

Fla. Admin. Code R. 67-53.009 Compliance and Monitoring for Homeownership Assistance Program (HAP) and Homeownership Programs

For those developments who received funding from the Corporation’s Homeownership Assistance Program (“HAP”), as established by Rule Chapter 67-45, F.A.C., and Homeownership Programs, as established by Rule Chapter 67-50, F.A.C.:

(1) The Servicer shall inspect and monitor the development’s construction site and records, as necessary, with inspections occurring during regular business hours.

(2) The Servicer shall monitor the sale of houses and determine homebuyer eligibility at initial purchase. Failure to comply with the agreed upon set-aside requirements shall result in a retroactive interest rate adjustment from the HAP or HOME Construction Loan interest rate to the current market rate.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 9-5-02, Formerly 67-50.100, Amended 8-20-09.

Fla. Admin. Code R. 67-53.010 Forms

History

Rulemaking Authority 420.507 FS. Law Implemented 420.5087, 420.5089, 420.509, 420.5099, 420.524, 420.9072 FS. History–New 1-17-05, Repealed 8-20-09.

Chapter 67-54 MORTGAGE CREDIT CERTIFICATES PROGRAM

Fla. Admin. Code R. 67-54.002 Definitions

History

Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.003 Notice of Program and Invitation and Application to Participate

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.004 Program Documents

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.005 Issuance of Certificates

History

Rulemaking Authority 159.81 FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.006 Loan Processing

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.007 Eligible Borrowers

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.008 Eligible Properties

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.009 Reporting Requirements

History

Rulemaking Authority 420.507(12), (24) FS. Law Implemented 420.5099 FS.History–New 1-3-05, Repealed 4-28-26.

Fla. Admin. Code R. 67-54.010 Fees

History

Rulemaking Authority 420.507(4), (12), (24) Law Implemented 420.5099 FS. History–New 1-3-05, Repealed 4-28-26.

Chapter 67-57 Homeownership Pool Program

Fla. Admin. Code R. 67-57.001 Purpose and Intent

The purpose of this rule chapter is to establish the Homeownership Pool (“HOP”) Program procedures by which the Corporation shall administer the application process, determine loan amounts, service loans, and provide down payment assistance to Eligible Homebuyers for the purchase of Eligible Properties HAP as authorized by section 420.5088, F.S., and HOME as authorized by section 420.5089, F.S., and HUD regulations, 24 CFR §92 (4/1/2018), which is adopted and incorporated into this rule chapter by reference and which is available on our Website https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/related-references-and-links or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10683.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 7-2-19.

Fla. Admin. Code R. 67-57.005 Definitions

(1) “Adjusted Income” means the gross income from wages or assets, cash or non-cash contributions, and any other resources and benefits determined to be income by HUD, adjusted for household size.

(2) “Affiliate” means any person or entity that (i) directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant or Member; (ii) serves as an officer or director of the Applicant or Member, or (iii) is the spouse, parent, child, sibling, or relative by marriage of a person described in (i) or (ii), above.

(3) “Agency means HUD’s Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA) or USDA/RD.

(4) “AMI” or “Area Median Income” means the median income for an area, with adjustments made for household size, as determined by HUD.

(5) “Applicant” means any person or legally formed entity that is seeking participation in one of the Corporation’s programs.

(6) “Appraisal” means an appraisal of a residence prepared by a Qualified Appraiser.

(7) “Area(s) of Critical State Concern” means the Florida Keys area of critical state concern.

(8) “Board” means the Board of Directors of Florida Housing Finance Corporation.

(9) “Calendar Days” means the seven (7) days of the week.

(10) “Corporation” means the Florida Housing Finance Corporation as defined in section 420.503, F.S.

(11) “Disabling Condition” means a diagnosable substance abuse disorder, serious mental illness, developmental disability, or chronic physical illness or disability, or the co-occurrence of two or more of these conditions, and a determination that the condition is:

(a) Expected to be of long continued and indefinite duration; and

(b) Not expected to impair the ability of the person with special needs to live independently with appropriate supports.

(12) “Development Cost” means all costs incurred to construct the Unit, excluding the cost of the land.

(13) “Eligible Homebuyer” means one or more natural persons, irrespective of race, creed, religion, national origin, or sex, determined by the Corporation to be fully qualified and who will utilize the Unit as their primary residence.

(14) “Eligible Properties” means newly constructed Units that are single family detached houses, Manufactured Homes, homes with shared-wall construction, condominiums or co-ops.

(15) “F.A.C.” means the Florida Administrative Code.

(16) “F.A.R.” means the Florida Administrative Register.

(17) “F.S.” means the Florida Statutes.

(18) “Financial Beneficiary” means any Member and its Principals who receives or will receive a financial benefit of 3% or more of the total development cost of the Unit.

(19) “First Mortgage” means the recorded mortgage which is superior to any other lien or encumbrance on the property.

(20) “GSE” means the Government Sponsored Enterprises which includes Fannie Mae and Freddie Mac.

(21) “HAP” means the Homeownership Assistance Program pursuant to Section 420.5088, F.S.

(22) “HOME” means the HOME Investment Partnerships Program administered by the Corporation pursuant to HUD Regulation 24 CFR §92 and Section 420.5089, F.S.

(23) “HOP” means the Homeownership Pool Program administered by the Corporation pursuant to HUD Regulation 24 CFR §92 and Sections 420.5088 and 420.5089, F.S.

(24) “HOP Loan” means a zero percent (0%) interest rate, non-amortizing mortgage loan made to an Eligible Homebuyer for the purpose of down payment in the amount necessary to reduce the purchase price to an affordable amount and closing costs assistance.

(25) “HOP Membership Application” means the forms and exhibits created by the Corporation for developers of affordable housing to apply for participation in the HOP program.

(26) “HUD” means the U.S. Department of Housing and Urban Development.

(27) “Living Space” means areas in a dwelling unit that are livable space. This does not include closets, crawl spaces, and other storage areas.

(28) “Loan Servicer” means the Corporation or the Corporation’s designee that reviews homebuyers for eligibility.

(29) “Loan Servicing” means the process by which the Corporation or Corporation’s designee reviews potential Eligible Homebuyers and services and monitors HOP Loans.

(30) “Maximum Purchase Price” means the maximum purchase price of a Unit in an area as determined by HUD.

(31) “Manufactured Home” means a single-family house constructed entirely in a controlled factory environment, built to the federal Manufactured Home Construction and Safety Standards administered by HUD. A manufactured house may be single- or multi-sectional and is transported to the site and installed on a permanent foundation.

(32) “Member” means a business entity, including non-profit and for-profit organizations and USDA-RD, which has been approved by the Corporation to participate in the HOP program.

(33) “Member Fee” means the fee earned by the Member on the construction of the Unit.

(34) “Mortgage” means Mortgage as defined in section 420.503, F.S.

(35) “Note” means a unilateral agreement containing an express and absolute promise to pay to the Corporation a principal sum of money on a specified date, which provides the interest rate, and is secured by a Mortgage.

(36) “Personal Assets” means cash held in savings accounts, checking accounts, safe deposit boxes; equity in rental property and other capital investments; cash value of stocks, bonds, Treasury bills, money market accounts; cash value of life insurance policies; personal property held as an investment; lump sum payments or one time receipts such as inheritance or insurance settlements; mortgages or deeds of trust held by homebuyer.

(37) “Principal” means any general partner of a Member, and any officer or director of any Member, or any officer or director of any general partner of a Member.

(38) “Qualified Appraiser” means an individual or firm that is licensed in Florida and is qualified as an appraiser by the society of real estate appraisers or the American Institute of Real Estate Appraisers, and acceptable or approved by an Agency or GSE or any private mortgage insurance provider to provide appraisal reports.

(39) “Retirement Assets” means individual retirement and Keogh accounts, retirement and pension funds.

(40) “Self Help” means a type of construction utilizing sweat equity operating under the guidelines of Habitat for Humanity International or USDA-RD.

(41) “Site” means the parcel of property on which an individual housing Unit will be located.

(42) “State” means the State of Florida.

(43) “Threshold” means the minimum criteria to be met for an Application to be considered complete, as required by this rule chapter and the HOP Membership Application.

(44) “Unit” means a residential unit used as a single family residence and the land appurtenant that is taxed as real property under State laws.

(45) “USDA-RD” means United States Department of Agriculture – Rural Development which includes Section 502 Direct Loans and Section 502 Self Help Loans.

(46) “Website” means the Florida Housing Finance Corporation website, the Universal Resource Locator (URL) of which is www.floridahousing.org.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.010 Fees

(1) The Corporation shall collect a HOP Membership Application fee of $500 from all entities when applying to become a Member of the pool for the HOP program.

(2) Member shall pay a non-refundable Loan Servicing fee upon submission of each loan package to the Loan Servicer. Member may be reimbursed for this fee out of closing.

(3) Any fees associated with inspections required under 24 CFR §92.251(a) are the Member’s responsibility.

(4) The Member Fee shall be limited to 16% of the Development Cost of the Unit.

(5) Member shall be charged a failed inspection fee of $500 for all homes inspected by the Corporation that have been determined to not have been built in compliance with HOP Property Standards per rule 67-57.040, F.A.C. Non-compliant home(s) must be brought into compliance and the assessed fee must be paid before the HOP Loan will close. This fee cannot be passed on to the Eligible Homebuyer.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.020 Notice of Funding Availability (NOFA)

(1) The Corporation shall post NOFAs, which advise of the availability and set-asides of HOP funding, on the Corporation’s Website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/important-announcements and publish in the F.A.R.

(2) Funding will be made available in the form of reservations for Eligible Homebuyers on a first-come, first-served basis.

History

Rulemaking Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Repromulgated 10-14-07, 7-2-19.

Fla. Admin. Code R. 67-57.030 Membership Application Procedures

(1) In order to participate in the HOP program, the Applicant must first apply to become a Member by meeting the requirements of the HOP Membership Application (“HOPMBR101 (4/1/19)”), which is adopted and incorporated herein by reference and is available on the Corporation’s Website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/program-forms or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10684.

(2) Corporation staff shall review the Applicant’s qualifications and experience, and upon verification that the Threshold requirements have been met, Applicants shall be notified and provided a Member number.

(3) Members must notify the Corporation of any changes to the development team or organization structure within 30 days of such change.

(4) Failure to advise of any changes to the development team or organization structure will result in the inactivation of the membership of the Member.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.040 Property Standards

(1) Construction Standards. All Units must meet the more stringent of the State or local building code requirements as applicable. At a minimum, all construction shall fully comply with the Florida Building Code – Residential (currently adopted edition).

(2) Required Basic Features. All Units must contain at a minimum:

(a) Range and oven;

(b) Washer and dryer hookups;

(d) Cable or satellite TV hookups (minimum of 2) located within 12'' of an electrical outlet;

(e) All Living Space must be equipped with overhead lighting;

(f) Provide a home maintenance manual that includes information on basic home maintenance; manuals for all installed appliances, and information on how to use and maintain the green features of the home.

(3) Accessibility and Visitability Features. All Units must comply with the Florida Accessibility Code for Building Construction pursuant to section 553.503, F.S., and contain at a minimum:

(a) At least one zero-step entrance approached by an accessible route on a firm surface no steeper than 1:12 proceeding from a driveway or public sidewalk;

(b) Lever-handled faucet with removable spout or lever-handled faucet with separate sprayer (spout or sprayer must have at least a 9-inch hose);

(d) Midpoint on electrical outlets should be located no less than 18'' above finished floor level;

(e) Reinforced walls for future installation of horizontal grab bars in toilet, bathtub, and shower walls;

(f) Lever-action handles on all doors and faucets in Units and public areas;

(g) Toggle-type or rocker style switches for lights and fans;

(h) All doors used for ingress/egress must be 34'' (2' x 10'') or larger. Any door other than a traditional hinged door such as: pocket doors, bi-fold doors, and double doors; must provide for at least a 32'' minimum clear width entry;

(i) At least one accessible means of egress/ingress, including a primary entrance door which shall have a threshold with no more than a 1/2 inch rise, which may be waived for Manufactured Homes and Units built in Area(s) of Critical State Concern;

(j) For Units consisting of two or more levels, all space on the entry level of the Unit must meet the requirements of paragraphs (3)(a)-(i) above. On the second level at least one full bathroom and one bedroom must meet the requirements of paragraphs (3)(a)-(i) above, if there is not a full bathroom and a bedroom on the entry level; and

(k) Adjustable shelving in master bedroom closets (must be adjustable by resident).

(4) Site Development. All Site development shall include the following features and meet the following minimum requirements:

(a) Slope and terrain must be suitable for development. There shall be no problems with drainage, steep slopes or waterways on the Site;

(b) Access to Site must be compatible with existing traffic patterns and street capacity. Site access shall not enter or exit onto a major high-volume traffic artery;

(c) Site must be free from excessive traffic and noise, including that from cars, trains and airplanes. Members must submit a mitigation plan to the Corporation, detailing the proposed means and methods of risk reduction, if a Unit is (i) located within 3,000 feet of an active railroad line and/or subject to high railroad noise levels, (ii) located within 1,000 feet of a major high-volume traffic artery, freeway, or other highway would carry a daily volume of 25,000 motor vehicles or more, or (iii) within 500 feet if the highway that would carry more than 10,000 vehicles but fewer than 25,000. The Site must not be located in an airport clear zone;

(d) The Site must be free from significant industrial or agricultural hazards, including hazardous substances; toxic chemicals; gas, oil and chemical storage tanks and facilities; runoff; spills; odors; noise; and airborne particulates;

(e) The neighborhood shall be primarily residential and adjacent areas should be compatible with residential development;

(f) Provide off-street parking that is consistent with local code, rule or ordinance;

(g) Provide a paved/surfaced driveway and walkway to one entry door; and

(h) Provide landscaping that meets all local requirements and is appropriate for the terrain and neighborhood;

(5) Appliances. Provide Energy Star certified appliances as applicable, including:

Refrigerator;

Dishwasher (where provided);

Clothes washer (where provided);

Clothes dryer (where provided);

Water heaters, including electrically powered storage, gas fired storage and gas fired instantaneous (tankless).

(6) Green Building Certification. All Units, excluding Self Help Units, must be certified to one of the following green building practices: EnergyStar certification, Florida Green Building Coalition (FGBC), ICC 700 National Green Building Standard (NGBS) or Leadership in Energy and Environmental Design (LEED).

(7) Manufactured Housing. Manufactured Homes must meet or exceed the following standards, which are adopted and incorporated herein by reference and are available at: https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/related-references-and-links, unless superseded by State or local building codes:

(a) Meet the Manufactured Home Construction and Safety Standards (MHCSS) pursuant to 24 CFR Part 3280 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10685;

(b) Be sited on a permanent foundation in accordance with the Permanent Foundation Guide for Manufactured Housing (HUD-007487) (09/1996) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10686 and https://www.flrules.org/Gateway/reference.asp?No=Ref-10687;

(d) Be connected to permanent utility hook-ups; and,

(e) All purchase contracts must be turn key.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.050 HOP Program Restrictions

(1) All Units must be new construction which have not been previously occupied.

(2) At no time shall the HOP Loan exceed the Maximum Per Unit Subsidy Limits pursuant to 24 CFR §92.250.

(3) The maximum per-unit subsidy of HOP funding is limited to $25,000, or the amount necessary to meet the borrower analysis criteria, with the exception of Eligible Homebuyers with a Disabling Condition and those at fifty percent (50%) AMI or below, which shall not exceed $35,000, or the amount necessary to meet the borrower analysis criteria.

(4) A Member may not be a Financial Beneficiary of another Member.

(5) Members shall be limited to a maximum of 60 Units per calendar year and no more than 10 Units in the reservation system at a time.

(6) The HOP Loan shall be evidenced by a properly executed Note and secured by a properly executed and recorded Mortgage provided by the Corporation.

(7) The HOP Loan should not be in lower than a second lien position; however, it may occupy a lien position lower than second if another source of down payment assistance from a local government is provided to the Eligible Homebuyer in an amount that exceeds the HOP Loan.

(8) The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the after construction or appraised value of the Unit with the exception of Eligible Homebuyers with a Disabling Condition for which the ratio cannot exceed one hundred ten percent (110%). In the loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgivable within a five (5) year period.

(9) When HOP funds are used with other Corporation programs, the more stringent borrower analysis criteria will apply as it relates to eligibility requirements; however, in no instance can the HOP Loan be combined with any other Corporation down payment assistance funds.

(10) All Units must undergo any inspections required under 24 C.F.R. §92.251(a).

(11) A Unit shall qualify as affordable housing if:

(a) The value or initial purchase price of the property after construction does not exceed the Maximum Purchase Price; and

(b) The purchase price of the property after construction must not exceed the appraised value of the property.

(12) Members are responsible for providing the Loan Servicer with completed documentation of the homebuyer.

(13) Homebuyer reservations will be denied or canceled if a Member or any Principal, or Affiliate of a Member has any existing developments participating in any Corporation programs that remain in non-compliance with the Code, the applicable Florida Statutes and rule chapters, loan documents, or any loan commitment after any applicable cure period granted for correcting such noncompliance has ended.

(14) An Applicant/Member shall be ineligible for funding or allocation in any program administered by the Corporation for a period of time as determined in paragraph (c), below, if:

(a) The Board determines that the Applicant/Member or any Principal, Financial Beneficiary, or Affiliate of the Applicant/Member has made a material misrepresentation or engaged in fraudulent actions in connection with any Application for a Corporation program. For purposes of this subsection, there is a rebuttable presumption that an Applicant/Member has engaged in fraudulent actions if the ApplicantMember or any Principal, Financial Beneficiary or Affiliate of the Applicant/Member:

Has been convicted of fraud, theft or misappropriation of funds,
Has been excluded from federal or Florida procurement programs for any reason,
Has been convicted of a felony in connection with any Corporation program, or
Has offered or given consideration with respect to a local contribution as set forth in subsection (7), below.

(b) Before any such determination can be final or effective, the Corporation must serve an administrative complaint that affords reasonable notice to the Applicant/Member of the facts or conduct that warrant the intended action, specifies a proposed duration of ineligibility, and advises the Applicant/Member of the opportunity to request a proceeding pursuant to sections 120.569 and 120.57, F.S. Upon service of such complaint, all pending transactions under any program administered by the Corporation involving the Applicant/Member, or any Principal, Financial Beneficiary or Affiliate of the Applicant/Member shall be suspended until a final order is issued or the administrative complaint is dismissed.

(c) The administrative complaint will include a proposed duration of ineligibility, which may be either a specific period of time or permanent in nature. With regard to establishing the duration, the Board shall consider the facts and circumstances, inclusive of each Applicant/Member’s compliance history, the type of misrepresentation or fraud committed, and the degree of harm to the Corporation’s programs that has been or may be done.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.060 Eligible Homebuyer Requirements

(1) In order to receive a HOP Loan under the HOP program, the Eligible Homebuyer must:

(a) Have an Adjusted Income that does not exceed eighty percent (80%) AMI;

(b) Qualify as an Eligible Homebuyer at the time of the execution of the purchase contract;

(d) Provide a minimum down payment of $500, except when participating in a Self-Help program;

(e) Not have Personal Assets in excess of $30,000 and Retirement Assets in excess of $100,000, excluding equity contributions toward the Unit;

(f) Completed pre-purchase homebuyer education course, which includes face-to-face homebuyer education if provided by a HUD-approved counseling agency, a unit of local government that provides pre-purchase homebuyer education in Florida, or a counseling agency designated by a unit of local government to provide homebuyer education on their behalf. Online courses are permitted if provided by a HUD-approved agency, a unit of local government that provides pre-purchase homebuyer education in Florida, a mortgage insurance provider, or an Agency or GSE sponsored course. Certificates of Completion are acceptable for 2 years from the date of completion; and,

(g) Comply with the HOP Homebuyer Underwriting Guidelines (4/1/19), which are adopted and incorporated herein by reference and available at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/related-references-and-links or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10688.

(2) The Eligible Homebuyer must maintain the following types of insurance, naming the Corporation as an additional insured:

(a) Replacement cost hazard insurance;

(b) Title insurance in the amount of the HOP Loan; and,

(3) Repayment of principal on the HOP Loan shall be deferred until maturity or if the homebuyer sells, transfers or disposes of the Unit either voluntarily or involuntarily, or ceases to occupy the Unit as a principal residence pursuant to 24 CFR §92.254(4) or section 420.5088, F.S.

(4) The Corporation will consider resubordinating its HOP Loan to a First Mortgage loan when a refinancing occurs. In making a determination, the Corporation will review the following terms of the new transaction: loan type, term of the loan, fixed interest rate percentage, principal balance of the loan, reason for the request and whether or not the terms of the new loan are beneficial to the homebuyer.

(a) The homebuyer is subject to the following:

The homebuyer must have resided in the property for at least one year,
No additional debt can be refinanced into the new First Mortgage, with the exception of Unit repairs or improvements which require that these funds be escrowed, and
The homebuyer cannot receive any cash out as a result of the refinancing.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.070 Homebuyer Loan Process

(1) Once construction on the Unit has begun, Members shall reserve HOP funds, on a loan-by-loan basis.

(2) Within fourteen (14) Calendar Days of making the reservation, unless a Member is subject to subsection (8) below, Members must submit to the Corporation a copy of the building permit and the Corporation must approve the completed Environmental Checklist (“HOPENV301 (4/1/19)”), which is adopted and incorporated into this rule chapter by reference and which is available on our website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/program-forms or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10689 or the reservation will be canceled.

(3) Funds shall be reserved for a maximum of one hundred eighty (180) Calendar Days. If the funds for the Eligible Homebuyer are not drawn within that period, the reservation of funds shall be canceled and the Member must submit a new reservation.

(4) Existing reservations in counties affected by a newly designated Presidentially declared or State declared disaster area shall be granted an automatic ninety (90) Calendar Day extension of the reservation. If additional time is needed, Members must submit a request for an extension which requires Board approval. Reservations without Board approved extensions will be canceled.

(5) At least four (4) weeks prior to the HOP Loan closing, the Member shall submit to the Loan Servicer a borrower analysis package, which shall include:

(a) Borrower Analysis Worksheet (“HOPANALYSIS401 (4/1/19)”), which is adopted and incorporated herein by reference and is available on the Corporation’s Website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/program-forms or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10690 with all required documentation;

(b) Certification or evidence of pre-purchase homebuyer education;

(d) Third party documentation of household income and Personal Assets;

(e) Copy of as-built property Appraisal;

(f) Copy of purchase contract and any addendums; and,

(g) Copy of approval page generated from the HUD Income Calculator, which can be found at HUD’s website at https://www.hudexchange.info/incomecalculator/.

(6) The Loan Servicer shall underwrite the HOP Loan and review the terms and conditions of the First Mortgage loan.

(7) A minimum of five (5) Calendar Days prior to closing, the Member shall provide the loan closing package, which shall include:

(a) Requisition of Funds/Loan Detail Report (“HOPROF501 (4/1/19)”), which is adopted and incorporated herein by reference and is available on the Corporation’s Website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/program-forms or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10691 and all required documents;

(b) Proof of property insurance;

(d) Amenities certification; and,

(e) Green building certification as required in rule 67-57.040, F.A.C.

(8) Members using Self Help under USDA-RD Section 502 financing can make reservations four (4) weeks prior to the homebuyer closing. After making the reservation, the borrower analysis package, must be sent to the Loan Servicer for review and approval. In addition, the HOP Self-Help Checklist (“HOPSelfHelp302 (4/1/19)”), which is adopted and incorporated into this rule chapter by reference and which is available on our Website at https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/homeownership-pool-(hop)-program/program-forms or from https://www.flrules.org/Gateway/reference.asp?No=Ref-10692, or other acceptable documentation must be sent to the Corporation within fourteen (14) days of the reservation date. Upon approval, the closing can occur and funds will be held in escrow by the Corporation.

History

Rulemaking Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended 10-14-07, 6-17-08, 7-2-19.

Fla. Admin. Code R. 67-57.080 HOME Regulations

All Members, homebuyers, and Units must conform to the following federal requirements, as applicable, which are adopted and incorporated herein by reference, available at http://www.floridahousing.org/Home/ Developers/HomeownershipPrograms/HOP:

(1) Annual Income as enumerated in 24 CFR §5.609 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10693;

(2) Affirmative Marketing as enumerated in 24 CFR §92.351 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(3) Affordability Requirements, pursuant to 24 CFR §92.254 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(4) Conflict of Interest as enumerated in 2 CFR §200.317 (1/1/2018), 2 CFR§200.318 (1/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10694 and 24 CFR §92.356 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(5) Debarment and Suspension as enumerated in 24 CFR §24 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10695;

(6) Displacement, Relocation, and Acquisition as enumerated in 24 CFR §92.353 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683, 42 U.S.C. 4201-4655 (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10696, 49 CFR §24 (10/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10697, 24 CFR §42 (Subpart C) (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10698;

(7) Economic Opportunity as enumerated in 24 CFR §135 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10699;

(8) Environmental Review as enumerated in 24 CFR §58.35 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10700, 24 CFR §92.352 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683, and National Environmental Policy Act of 1969 (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10701;

(9) Equal Opportunity and Fair Housing as enumerated in 24 CFR §92.202 (4/1/2018) and 92.251 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683, Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq.) (1/12/2018), found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10702, Fair Housing Act (42 U.S.C. §§3601-3619) (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10703, Age Discrimination Act of 1975, as amended (42 U.S.C. §6101) (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10704, Executive Order 11063 (amended by Executive Order 12259) (12/31/1980) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10705, and 24 CFR §5.105(a) (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10706;

(10) Equal Opportunity Employment as enumerated in 41 CFR §60 (7/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10707;

(11) Flood Insurance as enumerated in Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10708;

(12) Handicapped Accessibility as enumerated in Section 504 of the Rehabilitation Act of 1973 (implemented in 24 CFR Part 8) (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10709 and 24 CFR §100.205 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10710;

(13) Labor Standards as enumerated in 24 CFR §92.354 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683 and 40 U.S.C. 3142-3144, 3146 & 3147 (Davis-Bacon Act) (1/12/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10711, and 24 CFR §70 (volunteers) (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10712;

(14) Maximum Per Unit Subsidy Limits as enumerated in 24 CFR §92.250 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(15) Minority/Women Employment as enumerated in 2 CFR §200.321 (1/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10713 and Executive Orders 11625 (10/13/1971) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10714, 12432 (7/14/1983) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10715, and 12138 (5/18/1979) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10716;

(16) Property Standards as enumerated in 24 CFR §92.251 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(17) Recapture provisions as enumerated in 24 CFR §92.254 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683;

(18) Record keeping requirements as enumerated in 24 CFR §92.508 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683; and

(19) Site and Neighborhood Standards as enumerated in 24 CFR §92.202 (4/1/2018) found at https://www.flrules.org/Gateway/reference.asp?No=Ref-10683.

History

Rulemaking Authority 420.507(12) FS. Law Implemented 420.507(23), 420.5089 FS. History–New 6-26-06, Amended 10-14-07, 7-2-19.

Chapter 67-58 Community Workforce Housing Innovation Pilot Program (CWHIP)

Fla. Admin. Code R. 67-58.001 Purpose and Intent

The purpose of this rule chapter is to establish the procedures by which the Corporation shall administer the Application process, credit underwriting and loan servicing of the Community Workforce Housing Innovation Pilot (CWHIP) Program pursuant to Section 420.5095, F.S.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.002 Definitions

(1) “Accessory Dwelling Unit” means an ancillary or secondary living unit, that has a separate kitchen, bathroom, and sleeping area, existing either within the same structure, or on the same lot, as the primary dwelling unit.

(2) “Address” means the address assigned by the United States Postal Service and must include address number, street name, city, state and zip code. If address has not yet been assigned, include, at a minimum, street name and closest designated intersection, city, state and zip code.

(3) “Affiliate” means any person that, (i) directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Applicant, (ii) serves as an officer or director of the Applicant or of any Affiliate of the Applicant, or (iii) is the spouse, parent, child, sibling, or relative by marriage of a person described in (i) or (ii), above.

(4) “Affordability Period” means the period of time the unit must remain affordable.

(5) “AMI” or “Area Median Income” means the median income for an area, with adjustments made for household size, as determined by the United States Department of Housing and Urban Development (HUD).

(6) “Applicant” means an entity seeking a loan from Florida Housing for the New Construction or Rehabilitation of housing under CWHIP which is a party to the Public-Private Partnership and has been designated by the Public-Private Partnership as having financial responsibility and which will execute all loan documents and will have the authority at closing to encumber the Project.

(7) “Application” means the forms and exhibits created by the Corporation for the purpose of providing the means to apply for CWHIP funding. A completed Application may include additional supporting documentation.

(8) “Application Deadline” means 5:00 p.m., Eastern Time, on the final day of the Application Period.

(9) “Application Period” means a period during which Applications shall be accepted and with a deadline no less than thirty days from the beginning of the Application Deadline.

(10) “Area(s) of Critical State Concern” means the Florida Keys area of critical state concern, pursuant to Section 420.5095, F.S.

(11) “Board of Directors” or “Board” means the Board of Directors of the Corporation.

(12) “Borrower” means an Applicant that has obtained a CWHIP loan.

(13) “Calendar Days” means the seven (7) days of the week.

(14) “Compliance Period” means a period of time that the Project shall conform to all set-aside requirements as described further in this rule chapter and agreed to by the Applicant in the Application.

(15) “Contributions” means land, cash or other valuable consideration contributed to the Project.

(16) “Credit Underwriter” means the independent contractor under contract with the Corporation having the responsibility for providing stated credit underwriting services.

(17) “CWHIP” or “CWHIP Program” means the Community Workforce Housing Innovation Pilot Program as defined in Section 420.5095, F.S.

(18) “Developer” means any individual, association, corporation, joint venturer, or partnership which possesses the requisite skill, experience, and credit worthiness to successfully produce Workforce Housing as required in the Application.

(19) “Document” means electronic media, written or graphic matter, of any kind whatsoever, however produced or reproduced, including records, reports, memoranda, minutes, notes, graphs, maps, charts, contracts, opinions, studies, analysis, photographs, financial statements and correspondence as well as any other tangible thing on which information is recorded.

(20) “Draw” means the disbursement of funds to a Project.

(21) “Eligible Persons” mean persons or families qualified under this rule chapter to live in Workforce Housing whose total annual household income does not exceed 140 percent AMI, adjusted for household size, or 150 percent AMI, adjusted for household size, in Areas of Critical State Concern.

(22) “FHFC” or “Florida Housing” or “Corporation” means the Florida Housing Finance Corporation, a public corporation and public body corporate and politic created by Section 420.504, F.S.

(23) “Financial Beneficiary” means any Developer and its principals or Principals of the Applicant entity who receives or will receive a financial benefit as outlined in paragraphs (a) and (b), below, and as further described in subsection 67-58.003(3), F.A.C.:

(a) 3 percent or more of Total Project Cost if Total Project Cost is $5 million or less, or

(b) 3 percent of the first $5 million and 1 percent of any costs over $5 million if Total Project Cost is greater than $5 million.

(24) “General Contractor” means a person or entity duly licensed in the state of Florida with the requisite skills, experience and credit worthiness to successfully provide units required in the Application.

(25) “High Cost” means counties where the disparity between AMI and median sales prices for a single family home are more than the disparity between the state of Florida’s AMI and median sales price for a single family home.

(26) “High Growth” means counties where population growth as a percentage rate of increase is more than the state of Florida’s population growth as a percentage rate increase.

(27) “Innovation” means utilization of construction, design, financing, development, land use, or regulatory practices which have not previously been in common use, using existing practices in innovative ways, such as green building, storm-resistant construction, or other elements that reduce long-term costs relating to maintenance, utilities, or insurance.

(28) “Lease Purchase Unit” means where the primary purpose is the eventual purchase of the housing unit by an Eligible Person within 36 months from the initial execution of a lease agreement or within 36 months of the applicable fiscal year, whichever occurs first.

(29) “LURA” or “Land Use Restriction Agreement” means an agreement which sets forth the set-aside requirements and other Project requirements under a Corporation program.

(30) “New Construction” means units that are yet to be built or that are in the early stages of building where at the most the foundation for the unit has been completed but there has been no vertical construction started as of the issuance of the CWHIP loan commitment and otherwise meet the requirements of CWHIP.

(31) “Principal” means any member of the Private-Public Partnership, any general partner of any member of the Private-Public Partnership, and any officer, director, or any shareholder of any member of the Private-Public Partnership or shareholder of any general partner of a member of the Private-Public Partnership.

(32) “Project” consistent with Section 420.503(32), F.S., means any work or improvement located or to be located in any one county in the state, including real property, buildings, and any other real and personal property, designed and intended for the primary purpose of providing decent, safe, and sanitary residential housing for persons or families, whether New Construction or the acquisition and the remodeling, improvement, or Rehabilitation, of existing structures, together with such related non-housing facilities as the Corporation determines to be necessary, convenient, or desirable.

(33) “Project Cost” means the total of all costs incurred in the completion of a Project excluding developer fee and total land cost as shown in the Project Cost line item on the Project Cost pro forma within the Application.

(34) “Received” as it relates to delivery of a document by a specified deadline means, unless otherwise indicated, delivery by hand, U.S. Postal Service or other courier service, in the office of the Corporation no later than 5:00 p.m. (Eastern Time), on the deadline date.

(35) “Rehabilitation” means the alteration, improvement or modification of an existing structure, bringing the units up to state building code with a minimum expenditure of:

(a) For rental units, $20,000 per unit;

(b) For homeownership units, 25 percent of the before rehabilitation appraised value.

(36) “Rent-Restricted Unit” means a unit for which the gross rent does not exceed 30 percent of the applicable income limitation imputed for unit type.

(37) “Scattered Sites” for a single rental Project means a Project consisting of real property in the same county (i) any part of which is not contiguous (“non-contiguous parts”) or (ii) any part of which is divided by a street or easement (“divided parts”) and (iii) it is readily apparent from the proximity of the non-contiguous parts or the divided parts of the real property, chain of title, or other information available to the Corporation that the non-contiguous parts or the divided parts of the real property are part of a common or related scheme of the Project. For a homeownership Project, “Scattered Sites” means a Project developed on non-contiguous sites.

(38) “Total Project Cost” means the total of all residential costs incurred in the completion of a Project, all of which shall be subject to the review and approval by the Credit Underwriter and the Corporation, as further detailed in Rule 67-58.010, F.A.C.

(39) “Website” means the Florida Housing Finance Corporation’s website, the Universal Resource Locator (URL) of which is http://www.floridahousing.org/.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.003 Application and Selection Procedures for Projects

(1) When submitting an Application, Applicants must utilize the Community Workforce Innovation Pilot (CWHIP) Program Application in effect at the Application Deadline.

(a) The CWHIP Application Package (“CWHIP-816 (11/26/07)”)) is adopted and incorporated by reference herein, and consists of the forms and instructions obtained from the Corporation, for a fee, at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329 or available, without charge, on the Corporation’s website under the Workforce Housing link labeled 2007 CWHIP, which shall be completed and submitted to the Corporation in accordance with this rule chapter in order to apply for the CWHIP Program.

(b) All Applications must be complete, legible and timely when submitted, except as described below. Corporation staff may not assist any Applicant or party to the Public-Private Partnership by copying, collating, or adding documents to an Application nor shall any Applicant or party to the Public-Private Partnership be permitted to use the Corporation’s facilities or equipment for purposes of compiling or completing an Application.

(2) Failure to submit an Application completed in accordance with the Application instructions and these rules will result in the failure to meet threshold, rejection of the Application, a score less than the maximum available, or a combination of these results in accordance with the instructions in the Application and this rule chapter.

(3) Each submitted Application shall be evaluated and preliminarily scored using the factors specified in the Application Package and these rules. Preliminary scores shall be transmitted to all Applicants. This will include all threshold items identified by the Corporation to be addressed by the Applicant, which may include financial obligations for which the Applicant or party to the Public-Private Partnership, or Principal, Affiliate or Financial Beneficiary of an Applicant or party to the Public-Private Partnership, or a Developer is in arrears to the Corporation or any agent or assignee of the Corporation as of the Application Deadline.

(4) Within 14 Calendar Days of the date the notice set forth in subsection (3), above, is sent by overnight delivery by the Corporation, each Applicant shall be allowed to cure its Application by submitting additional Documents, revised pages and such other information as the Applicant deems appropriate to address the issues raised pursuant to subsection (3), above, that could result in failure of threshold of the Application or a score less than the maximum available. A new form, page or exhibit provided to the Corporation during this period shall be considered a replacement of that form, page or exhibit if such form, page or exhibit was previously submitted in the Applicant’s Application. Pages of the Application that are not revised or otherwise changed may not be resubmitted, except that Documents executed by third parties must be submitted in their entirety, including all attachments and exhibits referenced therein, even if only a portion of the original Document was revised. Where revised or additional information submitted by the Applicant creates an inconsistency with another item in that Application, the Applicant shall also be required in its submittal to make such other changes as necessary to keep the Application consistent as revised. The Applicant shall submit an original and three copies of all additional Documents and revisions. Only revisions, changes and other information Received by the deadline set forth herein will be considered. Any subsequent revision submitted prior to the deadline shall include a written request from the Applicant for withdrawal of any previously submitted revision(s).

(5) Following the receipt and review by the Corporation of the Documents described in subsection (4), above, the Corporation shall then prepare final scores. In determining such final scores, no Application shall be rejected or receive a point reduction as a result of any issues not previously identified in the notice described in subsection (3), above. However, inconsistencies created by the Applicant as a result of information provided pursuant to subsection (4), above, will still be justification for rejection or reduction of points, as appropriate. Notwithstanding the foregoing, any deficiencies in the mandatory elements set forth in subsection (9), below, can be identified at any time prior to sending the final scores to Applicants and will result in rejection of the Application. The Corporation shall then transmit final scores to all Applicants.

(6) Applications shall be limited to one submission per subject property. Two or more Applications that have one or more of the same Financial Beneficiaries, will be considered submissions for the same Project if any of the following is true: (i) any part of any of the property sites is contiguous with any part of any of the other property sites, or (ii) any of the property sites are divided by a street or easement, or (iii) it is readily apparent from the Applications, proximity, chain of title, or other information available to the Corporation that the properties are part of a common or related scheme of Project. If two or more Applications are considered to be submissions for the same Project, the Corporation will reject all such Applications except the Application with the highest (worst) lottery number. The Application with the lowest lottery number will still be rejected even if the Applicant withdraws the Application with the highest (worst) lottery number.

(7) If the Board determines that any Applicant or any Affiliate of an Applicant:

(a) Has engaged in fraudulent actions;

(b) Has materially misrepresented information to the Corporation regarding any past or present Application or Project;

(d) Has been excluded from federal or Florida procurement programs, or

(e) Has been convicted of a felony.

And that such action substantially increases the likelihood that the Applicant will not be able to produce quality affordable housing, the Applicant and any of the Applicant’s Affiliates will be ineligible for funding or allocation in any program administered by the Corporation for a period of up to two years, which will begin from the date the Board makes such determination. Such determination shall be either pursuant to a proceeding conducted pursuant to Sections 120.569 and 120.57, F.S., or as a result of a finding by a court of competent jurisdiction.

(8) The Corporation shall reject an Application if, following the submission of the additional Documents, revised pages and other information as the Applicant deems appropriate as described in subsection (4), above:

(a) The Project is inconsistent with the purposes of the CWHIP Program or does not conform to the Application requirements specified in this rule chapter;

(b) The Applicant fails to achieve the threshold requirements as detailed in these rules, the Application, and Application instructions;

(c) The Applicant fails to file all applicable Application pages and exhibits which are provided by the Corporation and adopted under this rule chapter or as provided for in the CWHIP Application instructions;

(d) The Applicant fails to satisfy any arrearages as described in subsection (3), above.

(9) Notwithstanding any other provision of these rules, there are certain items that must be included in the Application and cannot be revised, corrected or supplemented after the Application Deadline. Failure to submit these items in the Application at the time of the Application Deadline shall result in rejection of the Application without opportunity to submit additional information. Any attempted changes to these items will not be accepted. Those items are as follows:

(a) Parties to the Public-Private Partnership; notwithstanding the foregoing, the parties to the Public-Private Partnership may be changed only by approval of the Board after the Applicant has been invited to enter credit underwriting;

(b) Identity of the Applicant; notwithstanding the foregoing, the identity of the Applicant may be changed only by approval of the Board after the Applicant has been invited to enter credit underwriting;

(c) Identity of each Developer, including all co-Developers; notwithstanding the foregoing, the identity of the Developer(s) may be changed only by approval of the Board after the Applicant has been invited to enter credit underwriting;

(d) Site for the Project;

(e) Project Category;

(f) Total number of units; notwithstanding the foregoing, the total number of units may be changed only by approval of the Board after the Applicant has been invited to enter credit underwriting;

(g) Funding Request amount; notwithstanding the foregoing, requested amounts can be changed only if reduced by the Applicant to reflect the maximum request amount allowed in those instances where an Applicant requested more than its request limit;

(h) Submission of one “Original” with the required number of photocopies of the Application by the Application Deadline;

(i) Payment of the required Application fee by the Application Deadline;

(j) The Application labeled “Original” must include a properly completed Certification Statement reflecting an original signature; and,

(k) Attempts at improving the Applicant’s Innovation score by providing additional Innovation strategies as explained in Part III. C. 1., Part III. C. 2., and Part III. C. 4. of the Application instructions. Documents that illustrate or explain, but do not modify or add to the Innovation strategies provided as described in Part III. C. 1., Part III. C. 2., and Part III. C. 4. of the Application instructions can be cured.

All other items may be submitted as cures pursuant to subsection (4), above.

With regard to paragraphs (a), (b), (c) and (f), above, the Board shall consider the facts and circumstances of each Applicant’s request and any credit underwriting report, if available, prior to determining whether to grant the requested change.

(10) A Project will be withdrawn from funding and any outstanding commitments for funds will be rescinded if, at any time, the Board determines that the Applicant’s Project or Project team is no longer the Project or Project team described in the Application, and the changes made are prejudicial to the Project or to the market to be served by the Project.

(11) If an Applicant or any party to the Public-Private Partnership or any Principal, Affiliate or Financial Beneficiary of an Applicant, any party to the Public-Private Partnership, or a Developer has any existing Projects participating in any Corporation programs that remain in non-compliance with Section 42 of the IRC or applicable loan documents, and any applicable cure period granted for correcting such non-compliance has ended as of the time of submission of the Application or at the time of issuance of a credit underwriting report, the requested allocation will, upon a determination by the Board that such non-compliance substantially increases the likelihood that such Applicant will not be able to produce quality affordable housing, be denied and the Applicant, the party to the Public-Private Partnership and the Affiliates of the Applicant, the party to the Public-Private Partnership or Developer will be prohibited from new participation in any of the Corporation’s programs for the subsequent cycle and continuing until such time as all of their existing Projects participating in any Corporation programs are in compliance.

(12) The Applications will be ranked as outlined in the Application instructions.

(13) At no time during the Application, scoring and appeal process may Applicants, parties to the Public-Private Partnership or their representatives contact Board members concerning their own Project or any other Applicant’s Project. At no time from the Application Deadline until the issuance of the final scores as set forth in subsection (9), above, may Applicants, parties to the Public-Private Partnership or their representatives verbally contact Corporation staff concerning their own Application or any other Applicant’s Application. If an Applicant, party to the Public-Private Partnership or their representatives contact a Board member in violation of this section, the Board shall, upon a determination that such contact was deliberate, disqualify such Applicant’s Application.

(14) Applicants may withdraw an Application from consideration only by submitting a written notice of withdrawal to the Corporation Clerk. Applicants may not rescind any notice of withdrawal that was submitted to the Corporation Clerk. For ranking purposes, the Corporation shall disregard any withdrawal that is submitted after 5:00 p.m. (Eastern Time), 14 Calendar Days prior to the date the Board is scheduled to convene to consider approval of the final ranking of the Applications and such Application shall be included in the ranking as if no notice of withdrawal had been submitted. After the Board has approved the final ranking, any notice of withdrawal submitted during the time period prohibited above and before the Board approves the final ranking, shall be deemed withdrawn immediately after Board approval of the final ranking.

(15) The name of the Project provided in the Application may not be changed or altered after submission of the Application during the history of the Project with the Corporation unless the change is requested in writing and approved in writing by the Corporation.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-23-07.

Fla. Admin. Code R. 67-58.004 Applicant Administrative Appeal Procedures

(1) At the conclusion of the review and scoring process established by this rule chapter, each Applicant will be provided with the final ranking scores and a notice of rights, which shall constitute the point of entry to contest any issue related to Applications for the CWHIP Program.

(2) Each Applicant that wishes to contest the final scores must file a petition with the Corporation within 21 Calendar Days after the date the Applicant receives its notice of rights. The petition must conform to subsection 28-106.201(2) or 28-106.301(2), and 67-52.002(3), F.A.C., and specify in detail each issue and score sought to be challenged. If the petition does not raise a disputed issue of material fact, the challenge will be conducted pursuant to Section 120.57(2), F.S. If the petition raises one or more disputed issues of material fact, a formal administrative hearing will be conducted pursuant to Section 120.57(1), F.S. At the conclusion of any administrative hearing, a recommended order shall be entered by the designated hearing officer or administrative law judge which will then be considered by the Board.

(3) Any Applicant who wishes to challenge the findings and conclusions of the recommended order entered pursuant to a Section 120.57(2), F.S., proceeding in which it is a party shall be allowed the opportunity to submit written arguments to the Board. Any written argument should be typed and double-spaced with margins no less than one inch in either Times New Roman 14-point or Courier New 12-point font and may not exceed five (5) pages, not including caption and certificate of service. Written arguments must be filed with Florida Housing Finance Corporation’s Clerk at 227 North Bronough Street, Suite 5000, Tallahassee, Florida 32301-1329, no later than 5:00 p.m. (Eastern Time), no later than five (5) Calendar Days from the date of issuance of the recommended order. Failure to timely file a written argument shall constitute a waiver of the right to have a written argument considered by the Board. Parties will be permitted to make oral presentations to the Board regarding recommended orders only in response to questions from the Board.

(4) Any person whose substantial interest will be affected by the proceedings may petition for leave to intervene in a proceeding conducted under Section 120.57(2), F.S. Except for good cause shown, petitions for leave to intervene must be filed at least 15 Calendar Days before the final hearing unless otherwise provided by law. The petition shall conform to Rule 28-106.205, F.A.C. The parties may, within seven (7) Calendar Days of service of the petition, file a response in opposition. The hearing officer may impose terms and conditions on the intervenor to limit prejudice to other parties.

(5) Projects will be funded in the order ranked, except that funding sufficient to fund Projects which file scoring challenges under this rule will be withheld until the conclusion of all litigation and appeal proceedings conducted pursuant to Sections 120.569, 120.57, and 120.68, F.S.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-23-07.

Fla. Admin. Code R. 67-58.005 Fees

(1) The Applicant shall be responsible for the payment of any required credit underwriting, legal, and loan servicing fees for the term of the loan and compliance monitoring fees for the term of the Affordability Period.

(2) The Applicant shall be responsible for the payment of any necessary extension fees, as further described in subsections 67-58.020(6), 67-58.020(26), 67-58.070(6) and 67-58.070(23), F.A.C.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.006 General Program Procedures and Restrictions

(1) Loans, excluding loans made pursuant to Rule 67-58.015, F.A.C., shall be in an amount not to exceed 50 percent of the Total Project Cost attributable to the units set aside for Workforce Housing, or the minimum amount required to make the Project economically feasible, whichever is less, as determined by the Credit Underwriter.

(2) An Applicant is not eligible to apply for or receive CWHIP Program funding if any of the following pertain to the proposed Project:

(a) The proposed Project is utilizing State Apartment Incentive Loan (SAIL) or HOME Rental funding from the Corporation.

(b) The Applicant has accepted a preliminary commitment of CWHIP funding from a prior cycle for the proposed Project unless the Applicant has provided written notice to the Corporation prior to the Application Deadline for the current cycle that it is withdrawing its acceptance and returning its funding.

(3) A Project is only eligible to receive CWHIP funds if it is New Construction or Rehabilitation.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-23-07.

Fla. Admin. Code R. 67-58.010 Total Project Cost

The Total Project Cost includes the following:

(1) The cost of acquiring real property and any buildings thereon, including payment for options, deposits, or contracts to purchase properties.

(2) The cost of site preparation, demolition, and development.

(3) Any expenses relating to the issuance of tax-exempt bonds or taxable bonds, if any, related to the particular Project.

(4) Fees in connection with the planning, execution, and financing of the Project, such as those of architects, engineers, attorneys, accountants, Developer fee, and the Corporation.

(5) The cost of studies, surveys, plans, permits, insurance, interest, financing, tax and assessment costs, and other operating and carrying costs during New Construction or Rehabilitation of the Project.

(6) The cost of the New Construction, Rehabilitation, and equipping of the Project.

(7) The cost of land improvements, such as landscaping and offsite improvements related to the Project, whether such costs are paid in cash, property, or services.

(8) Expenses in connection with initial occupancy of the Project.

(9) Allowances for working capital, contingency reserves, and reserves for any anticipated operating deficits during the first two (2) years after completion of the Project.

(10) The cost of such other items, including relocation costs, indemnity and surety bonds, insurance premiums, trustees fees and expenses, depositories, and agent’s fees for the Corporation’s bonds, for the New Construction or Rehabilitation of the Project.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.015 Supplemental Loans for Green Building

A supplemental loan is available to Applicants who have been awarded CWHIP funds under this application cycle and have committed to the requirements contained in Part III. C.3. b. and c. of the Application instructions. The supplemental loan is forgiven on a per set-aside unit basis as the certification is received for each set-aside unit. If certification is not obtained, the pro-rata supplemental loan amount attributed to that set-aside unit that did not receive certification becomes due and payable immediately with a penalty of 18 percent of the pro-rata amount.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-23-07.

Fla. Admin. Code R. 67-58.020 Credit Underwriting and Loan Procedures

The credit underwriting review shall include a comprehensive analysis of the Applicant; the real estate; the economic viability of the Project; the ability of the Applicant and the Project team to proceed; the evidence of need for Workforce Housing in order to determine that the Project meets the CWHIP Program requirements; and the determination of a recommended CWHIP loan amount.

(1) After the rankings are approved by the Board, the Corporation shall offer all Applicants within the funding range an invitation to enter credit underwriting. The Corporation shall select the Credit Underwriter for each Project.

(2) The invitation to enter credit underwriting constitutes a preliminary commitment.

(3) A response to the invitation to enter credit underwriting must be received by the Corporation and the Credit Underwriter no later than seven (7) Calendar Days after the date of the letter of invitation.

(4) If the invitation to enter credit underwriting is accepted:

(a) The Applicant shall submit the credit underwriting fee to the Credit Underwriter within 30 Calendar Days of the date of the letter of invitation.

(b) Failure to submit the required credit underwriting fee by the specified deadline shall result in withdrawal of the invitation.

(5) If an Applicant fails to submit the fee(s) as required, the Corporation will select additional Application(s) in the priority approved by the Board.

(6) The Applicant has 14 months from the date of the acceptance of the letter of invitation to complete credit underwriting and receive Board approval unless an extension of up to 10 months is approved by the Board. All extension requests must be submitted in writing to the program administrator and contain the specific reasons for requesting an extension and detail the timeframe to close the loan. The written request will then be submitted to the Corporation’s Board for consideration. The Corporation shall charge an extension fee of 1 percent of the CWHIP loan amount if the Board approves the extension request.

(7) The Credit Underwriter shall verify all information in the Application, including information relative to the Applicant, Developer, General Contractor, and other members of the Project team.

(8) The Credit Underwriter shall report any inconsistencies, discrepancies or changes made to the Applicant’s Application during credit underwriting.

(9) The Applicant shall be responsible for all fees in connection with the documentation submitted to the Credit Underwriter.

(10) If the Credit Underwriter determines that special expertise is required to review information submitted to the Credit Underwriter which is beyond the scope of the Credit Underwriter’s expertise, the fee for such services shall be borne by the Applicant.

(11) A full or self-contained appraisal per the Uniform Standards of Professional Appraisal Practice and a market study shall be ordered by the Credit Underwriter, at the Applicant’s expense, from an appraiser qualified for the geographic area and product type not later than completion of credit underwriting. The Credit Underwriter shall review the appraisal to properly evaluate the proposed Project's financial feasibility. Appraisals which have been ordered and submitted by a third party lender which meet the above requirements and are acceptable to the Credit Underwriter may be used instead of the appraisal referenced above. The Credit Underwriter shall review and consider the market study, the Project’s financial impact on developments in the area previously funded by the Corporation, and other documentation when making its recommendation. The Credit Underwriter shall also review the appraisal and other market documentation to determine if the market exists to support both the demographic and income restriction set-asides committed to within the Application.

(12) The debt service coverage for the CWHIP loan and all superior mortgages is as follows:

(a) A minimum of 1.00 when the CWHIP loan meets the criteria of paragraph 67-58.030(3)(a), F.A.C.;

(b) A minimum of 1.10 for CWHIP loans not eligible for forgiveness; and,

(13) The Corporation’s assigned Credit Underwriter shall require a guaranteed maximum price or stipulated sum construction contract, which may include change orders for changes in cost or changes in the scope of work. The Credit Underwriter shall review the Project’s costs and if it is determined that a pre-construction analysis or a physical needs assessment for Rehabilitation is required, the fee for such analysis shall be borne by the Applicant.

(14) In addition to operating expenses, the Credit Underwriter must include an estimate for replacement reserves and operating expense reserves deemed appropriate by the Credit Underwriter when calculating the final net operating income available to service the debt. A minimum replacement reserve amount of $250 per unit per year must be used for all rental Projects; however, the amount may be increased based on a physical needs assessment. An Applicant may choose to fund a portion of the replacement reserves at closing. The amount cannot exceed 50 percent of the required replacement reserves for two (2) years and must be placed in escrow at closing.

(15) The Credit Underwriter may request additional information, but at a minimum the following will be required during the underwriting process:

(a) For the Applicant, general partner(s), and guarantors, audited financial statements or financial statements for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications compiled or reviewed by a licensed Certified Public Accountant in accordance with the Statement on Standards for Accounting and Review Services (SSARS). If audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant are not available, unaudited financial statements prepared within the last 90 days and the two (2) most recent years tax returns reviewed by the Credit Underwriter in accordance with Part III, Sections 604 through 607, of the Fannie Mae Multifamily Delegated Underwriting and Servicing (DUS) Guide, effective November 6, 2003, which is adopted and incorporated by reference and available on the Corporation’s Website. If the entities are newly formed (less than 18 months in existence as of the date that credit underwriting information is requested), a copy of any and all tax returns with related supporting notes and schedules.

(b) For the General Contractor:

Verification that the General Contractor has the requisite knowledge and experience to complete the proposed Project,
Narrative regarding experience with residential construction; and,
Audited financial statements or financial statements compiled or reviewed by a licensed Certified Public Accountant for the most recent fiscal year ended, credit check, banking and trade references, and deposit verifications. The audited or compiled statements may be waived if a payment and performance bond equal to 100 percent of the total construction cost is issued in the name of the General Contractor by a company rated at least “A-” by AMBest & Co.

(16) The Credit Underwriter shall consider the following when determining the need for construction completion guarantees:

(a) Liquidity of the guarantor;

(b) Developer and General Contractor’s history in successfully completing Projects comparable in size and scope;

(d) Exposure of Corporation funds compared to Total Project Cost.

At a minimum, the Credit Underwriter shall require a personal guarantee for completion of construction from the principal individual or the corporate general partner of the borrowing entity. In addition, a letter of credit or payment and performance bond will be required if the Credit Underwriter determines after evaluation of paragraphs (a)-(d), in this subsection, that additional surety is needed.

(17) The Developer fee shall be limited to 16 percent of the Project Cost exclusive of the land cost. A Developer fee on the building acquisition cost shall be limited to 12 percent of the cost of the building exclusive of the land cost.

(18) The General Contractor’s fee shall be limited to a maximum of 14 percent of the actual construction cost.

(19) The General Contractor must meet the following conditions:

(a) Employ a Project superintendent and charge the costs of such employment to the general requirements line item of the General Contractor’s budget;

(b) Charge the costs of the Project construction trailer, if needed, and other overhead to the general requirements line item of the General Contractor’s budget;

(d) Secure a payment and performance bond (or approved alternate security for General Contractor’s performance, such as a letter of credit), issued in the name of the General Contractor, from a company rated at least “A-” by AMBest & Co.;

(e) Ensure that none of the General Contractor duties to manage and control the construction of the Project are subcontracted; and,

(f) Ensure that not more than 20 percent of the construction cost is subcontracted to any one entity unless otherwise approved by the Board for a specific Project.

(20) The Credit Underwriter shall require an operating deficit guarantee to be released upon the following:

(a) For CWHIP loans which meet the criteria of paragraph 67-58.030(3)(a), F.A.C., achievement of a minimum debt service coverage ratio of 1.00 for a minimum of six (6) consecutive months; and,

(b) For CWHIP loans not eligible for forgiveness, achievement of a minimum debt service coverage ratio of 1.10 for a minimum of six (6) consecutive months.

(21) The Credit Underwriter shall review and determine if the number of loans and construction commitments of the Applicant and its Principals will impede its ability to proceed with the successful development of each proposed Corporation-funded Project.

(22) All items required by the Credit Underwriter must be provided. If the Credit Underwriter requires additional clarifying materials in the course of the underwriting process, the Credit Underwriter shall request same from the Applicant and shall specify deadlines for the submission of same. Failure to submit required information by the specified deadline, unless an extension of time has been approved by the Corporation, shall result in withdrawal of the Application. If the Application is withdrawn, the Corporation will select additional Application(s) in the priority approved by the Board.

(23) The Credit Underwriter shall complete its analysis and submit a written draft report and recommendation to the Corporation. Upon receipt, the Corporation shall provide to the Applicant the written draft report. The Applicant shall review and provide written comments to the Corporation and Credit Underwriter. The Corporation shall provide to the Credit Underwriter comments on the draft report and, as applicable, on the Applicant’s comments. Then, the Credit Underwriter shall review and incorporate, if deemed appropriate, the Corporation’s and Applicant’s comments and release the revised report to the Corporation and the Applicant. Any additional comments from the Applicant shall be submitted to the Corporation and the Credit Underwriter. The Credit Underwriter will provide a final report, which will address comments made by the Applicant, to the Corporation.

(24) The Credit Underwriter’s recommendations shall be sent to the Board for approval.

(25) After approval of the Credit Underwriter’s recommendation for funding by the Board, the Corporation shall issue a CWHIP loan commitment.

(26) The CWHIP loan and other mortgage loans related to the Project must close within 90 days of the date of the CWHIP loan commitment unless an extension is approved by the Board. All extension requests must be submitted in writing to the program administrator and contain the specific reasons for requesting an extension and detail the timeframe to close the loan. The written request will then be submitted to the Corporation’s Board for consideration. The Corporation shall charge an extension fee of 1 percent of the CWHIP loan amount if the Board approves the extension.

(27) Prior to any CWHIP loan closing:

(a) The Applicant must provide evidence of all necessary consents or required signatures from first mortgagees or subordinate mortgagees to the Corporation and its counsel; and,

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.030 Terms and Conditions of Loans

(1) The proceeds of all loans shall be used for New Construction or Rehabilitation of affordable, decent, safe and sanitary housing units.

(2) The CWHIP loan shall be in a first, second or other subordinated lien position. For purposes of this rule, mortgages securing a letter of credit as credit enhancement for the bonds financing the first mortgage shall be considered a contingent liability and part of the first mortgage lien, provided that the Borrower’s counsel furnishes an opinion regarding the contingent nature of such mortgage satisfactory to the Corporation and its counsel.

(3) The loans to Applicants shall have interest rates as follows:

(a) One percent simple interest per annum, non-amortizing, will accrue on loans to Projects where long term affordability of 50 years is provided and when at least 80 percent of the units are set aside for Workforce Housing and at least 50 percent of the units are set aside for Essential Services Personnel. Such loans, including interest, shall be forgiven upon successful completion of the Compliance Period.

(b) For CWHIP loans not eligible for forgiveness, 3 percent fully amortized loans to Projects other than those identified in paragraph (a), above.

(4) The amount of any superior mortgages combined with the CWHIP mortgage shall be less than the appraised value of the Project. Any debt service reserve requirement associated with a superior mortgage shall be excluded from the amount of the superior mortgage for purposes of this calculation.

(5) For CWHIP loans not eligible for forgiveness, the term shall be for a period of not more than 30 years. The loan term may exceed 30 years as required to be coterminous with the first mortgage or if otherwise approved by the Board.

(6) The Corporation shall require adequate insurance to be maintained on the Project as determined by the first mortgage lender or the Corporation’s servicer, but which shall, in any case, include fire, hazard and other insurance sufficient to meet the standards established in Part V, Section 106 of the Fannie Mae DUS Guide, effective August 10, 2006, which is adopted and incorporated by reference and available on the Corporation’s website.

(7) The Corporation may intervene and renegotiate terms or take other actions necessary to further CWHIP goals or avoid default of a CWHIP loan. Such renegotiations shall be based upon consideration of the following:

(a) Performance of the Borrower during the CWHIP loan term;

(b) Availability of similar housing stock for Eligible Persons in the area;

(d) Assurance that the security interest of the Corporation will not be jeopardized by the renegotiation;

(e) Fiscal goals; and,

(f) The preservation or advancement of Workforce Housing for Eligible Persons.

(8) After accepting a preliminary commitment, the Borrower shall not refinance, increase the principal amount, or alter any terms or conditions of any mortgage superior or inferior to the CWHIP mortgage without prior approval of the Board. However, a Borrower may reduce the interest rate on any superior or inferior mortgage loan without the Board’s permission, provided that no other terms of the loan are changed. The Corporation shall be notified in writing of any such change prior to the Borrower taking such action.

(a) The Board shall approve requests for mortgage loan refinancing only if the Project cash flow is improved; the Project’s economic viability is maintained; the security interest of the Corporation is not adversely affected; and the Credit Underwriter provides a positive recommendation.

(b) The Board shall deny requests for mortgage loan refinancing which require extension of the CWHIP loan term or otherwise adversely affect the security interest of the Corporation, unless the criteria outlined in the paragraph above are met, the Credit Underwriter recommends that the approval of such a request is crucial to the economic survival of the Project or unless the Board determines that public policy will be better served by the extension as a result of the Borrower agreeing to further extend the Compliance Period or provide additional amenities or resident programs suitable for the resident population. Further, the Board shall limit any approved extension to a minimum term which makes the Project feasible and which does not exceed an industry standard term.

(9) All CWHIP loans shall be in conformance with applicable federal and state statutes, including the Fair Housing Act as implemented by 24 CFR Part 100, and Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28 CFR Part 35, which are adopted and incorporated by reference and are available on the Corporation’s website.

(10) All Workforce Housing rental units shall be Rent Restricted Units.

(11) The documents creating, evidencing or securing each CWHIP loan must provide that any violation of the terms and conditions described in Rule Chapter 67-58, F.A.C., constitutes a default under the CWHIP loan documents allowing the Corporation to accelerate its loan and to seek foreclosure as well as any other remedies legally available to it.

(12) A failure to pay any principal or interest due under the terms of this section shall constitute a default on the CWHIP loan.

(13) The minimum Compliance Period for a CWHIP Project shall be the greater of 20 years or the term of the CWHIP loan.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.040 Sale or Transfer of a Project

The CWHIP loan shall be assumable upon sale or transfer of the Project if the following conditions are met:

(1) The proposed transferee agrees to maintain all set-asides and other requirements of the CWHIP loan for the period originally specified or longer; and,

(2) The proposed transferee and release of transferor receives a favorable recommendation from the Credit Underwriter as satisfying the criteria stated in the Credit Underwriter’s report; meeting the stated purposes of the Corporation; complying with all legal requirements of the Corporation; and subject to approval by the Board.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.050 Construction Disbursements

(1) CWHIP loan proceeds, including loans made pursuant to Rule 67-58.015, F.A.C., shall be disbursed during the construction phase in an amount per Draw which does not exceed the ratio of the CWHIP loan to the Total Project Cost unless approved by the Credit Underwriter.

(2) Ten business days prior to each Draw, the Borrower shall supply the Corporation’s servicer, as agent for the Corporation, with a written request executed by the Borrower for a Draw. The request shall set forth the amount to be paid and shall be accompanied by documentation specified by the Corporation’s servicer including claims for labor and materials to date of the last inspection.

(4) The Corporation shall disburse construction Draws through an Automated Clearing House (ACH). The Borrower may request disbursement of construction Draws via a wire transfer. The Borrower will be charged a fee of $10 for each wire transfer requested. This charge will be netted against the Draw amount.

(5) The Corporation shall elect to withhold any Draw or portion of any Draw, notwithstanding any documentation submitted by the Borrower in connection with the request for a Draw, if:

(a) The Corporation or the Corporation’s servicer determines at any time that the actual cost budget or progress of construction differs from that as shown on the loan documents;

(b) The percentage of progress of construction of the improvements differs from that shown on the request for a Draw, or

(c) If an Applicant or any Principal, Affiliate or Financial Beneficiary of an Applicant or a Developer is in arrears for any financial obligation it has to the Corporation or any agent or assignee of the Corporation.

(6) The servicer may request submission of revised construction budgets.

(7) If the Corporation determines that further analysis by the Credit Underwriter is required prior to the release of the final Draw, the Borrower Applicant shall pay to the Credit Underwriter a fee based on an hourly rate determined pursuant to the contract between the Corporation and the Credit Underwriter.

(8) Retainage in the amount of 10 percent per Draw shall be held by the servicer during construction until the Project is 50 percent complete. At 50 percent completion, no additional retainage shall be held from the remaining Draws. Release of funds held by the Corporation’s servicer as retainage shall occur pursuant to the CWHIP loan agreement.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.060 Loan Servicing

(1) By May 31st of each year of the CWHIP loan term, the Borrower shall provide the Corporation with audited financial statements. The audited financial statements shall be due no later than May 31st following the end of the calendar year following the year in which the first unit is occupied.

(2) The Corporation’s servicer shall issue a monthly billing for the principal and interest due on the CWHIP loan.

(3) The Borrower shall remit the principal and interest due to the Corporation’s servicer no later than the 15th day of each month of the CWHIP loan term.

(4) After maturity or acceleration, the note shall bear interest at the default interest rate from the due date until paid. Unless the Corporation has accelerated the CWHIP loan, the Borrower shall pay the Corporation a late charge of 5 percent of any required payment that is not received by the Corporation within 15 Calendar Days of the due date.

(5) Any sale, conveyance, assignment, or other transfer of interest or the grant of a security interest in all or any part of the title to the Project other than a superior mortgage shall be subject to the Corporation’s prior written approval. Such written approval shall be granted upon demonstration of compliance with the provisions of Rule 67-58.040, F.A.C.

(6) The final billing for the purpose of payoff of the CWHIP loan shall also include a billing for compliance fees to cover monitoring of CWHIP requirements beyond the maturity date of the note. Such fees shall be computed by determining the present value of the annual compliance monitoring fee and multiplying that by the number of years for which the Project will have a set-aside for Eligible Persons beyond the repayment date. The present value discount rate shall be 2.75 percent per annum. Such amount shall be reduced by the amount of any compliance monitoring fees for other programs collected by the Corporation for the Project provided the compliance monitoring fee covers some or all of the period following the anticipated CWHIP loan repayment date.

(7) CWHIP loans shall be serviced either directly by the Corporation or by the servicer on behalf of the Corporation.

History

Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS. History–New 12-17-06, Amended 12-23-07.

Fla. Admin. Code R. 67-58.070 Credit Underwriting

The credit underwriting review shall include a comprehensive analysis of the Applicant; the real estate; the economic viability of the Project; the ability of the Applicant and the Project team to proceed; the evidence of need for Workforce Housing, in order to determine that the Project meets the Program requirements; and the determination of a recommended CWHIP loan amount.