Wyoming Administrative Rules 900 — Community Development Authority, Wyoming

326 General Agency, Board or Commission Rules

Chapter 1 Mortgage Purchase Program

Wyo. Code R. 900.0001.1.11282012 Mortgage Purchase Program

Wyoming Community Development Authority

Mortgage Purchase Program

Chapter 1

Section 1. Authority.

These rules andregulations are adopted pursuant toSections 9-7-101 through 9-7-125of the WyomingStatutes, as amended, with respect to the Single Family Mortgage Purchase Program of the Wyoming Community Development Authority (the "Authority"). The Authority is authorized under WS 9-7-105(a)(iv) to adopt rules and regulations for its housing and loan financing programs.

Section 2. Purpose and Objectives.

These Rules and Regulations are established to effectuate, and shall be applied so as to accomplish, the general purposes of the Wyoming Community Development Authority Act, as amended (the "Act") and the following specific objectives:

(a) The expansion of the supply of funds in the state available for new and existing housing at reasonable rates; and

(b) The provision of the additional housing needed to remedy the shortage of ad- equate housing in this state.

Section 3. Definitions.

As used in these Rules and Regulations, terms defined in the Act have the meanings set forth therein and, unless the context otherwise requires:

"Application" means an application to sell mortgage loans filed by a mortgage lender with the Authority.

"Eligible Borrower" means persons and families whose total annual family incomes do not exceed the maximum income levels, and who otherwise satisfy the requirements, as authorized or established by the Authority.

"Family" means a person or a group of persons consisting of, but not limited to, the head of a household, the spouse, if any, and children, if any, who are allowable as personal exemptions for federal income tax purposes.

"Mortgage" includes a mortgage, mortgage deed or other instrument creating a first lien on a fee interest or leasehold interest in real property located within the state.

"Mortgage Loan" means a loan secured by a mortgage made to an eligible borrower for the purchase of an owner-occupied single family residence (which may include up to four units, one of which must be owner-occupied) for residential use in the state; provided that loans may be made for home improvements or down payment/closing costs assistance without being secured by a mortgage upon authorization by Authority resolution.

"Mortgage Purchase Agreement" means an agreement between the Authority and a mortgage lender pursuant to which the Authority agrees to purchase mortgage loans from the mortgage lender from time to time on the terms and conditions set forth in the agreement.

"Program" means the Authority's program for purchase of notes evidencing mortgage loans and the accompanying security called the "mortgage purchase program."

"Residential Use" means primary use of a structure as the principal residence of the occupant and does not include use as a vacation or "second" home.

"Servicing Agreement" means an agreement between the Authority and a mortgage lender, or its designated servicer as approved by the Authority, for the servicing of mortgage loans purchased by the Authority.

Section 4. Applications to Sell Mortgage Loans.

(a) The Authority from time to time will invite mortgage lenders to originate mortgage loans to be sold to the Authority.

(b) An application and related program documents submitted by a mortgage lender must include:

(i) The types of mortgage loans which the mortgage lender desires to sell to the Authority;

(ii) Information regarding the mortgage lender's total assets, capital, surplus, undivided earnings and reserves as to its most recent available report, provided that in lieu thereof the Authority may rely upon the approval of a mortgage lender by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration or any other mortgage insurer or purchaser as the Authority may approve by resolution; and

(iii) The unconditional agreement of the mortgage lender, upon acceptance of the application by the Authority, to sell mortgage loans to the Authority which comply with the terms of the program.

Section 5. Allocation of Money for Mortgage Purchase.

(a) Money available to the Authority through the sale of its bonds or otherwise will from time to time be made available to mortgage lenders on such basis and in such manner as the Authority deems appropriate to effectuate its purposes. The Authority's determinations of the allocations of funds for mortgage purchase are conclusive.

(b) The obligation of the Authority to purchase any mortgage loans with the pro- ceeds of the issuance of its bonds is subject to the issuance and sale of such bonds or other obligations of the Authority within the period prescribed in an amount sufficient to permit such purchase.

Section 6. Yield on Mortgage Loans.

(a) Mortgage loans purchased by the Authority must in the aggregate bear interest at such rate or rates and be sold to the Authority at such price or prices as will in the aggregate produce a yield to the Authority sufficient to:

(i) Pay interest and principal on the Authority's bonds or other obligations;

(ii) Provide adequate reserves, if any, for the holders of the Authority's bonds or other obligations; and

(iii) Cover the related operating costs of the Authority.

(b) The yield on such mortgage loans must not exceed the maximum permitted by application of the arbitrage limitations of the Internal Revenue Code of 1986, as amended, and appli- cable rules and regulations.

Section 7. Conditions of Mortgage Loans.

Each mortgage loan purchased under this program must be insured or guaranteed in whole or in part by governmental or private mortgage insurance, including the fund created by Section 9-7-123 of the Wyoming Statutes, or otherwise secured as provided in the resolution or trust indenture authorizing bonds of the Authority, as provided in the mortgage purchase agreement, be secured by a mortgage on a single-family residence in the state (unless otherwise provided by the Authority), and meet the applicable terms and conditions set forth in the mortgage purchase agreement and related program documents.

Section 8. Servicing of Mortgage Loans.

All mortgage loans purchased by the Authority must be serviced by a qualified servicer pursuant to a servicing agreement, or by the Authority.

Section 9. Examination of Books and Records.

The Authority may conduct such examinations of the books and records of each mortgage lender which has sold mortgage loans to the Authority as the Authority deems necessary or appropriate to determine compliance with the terms of the Act, these Rules and Regulations, the mortgage purchase agreement and the servicing agreement. The Authority may require each mortgage lender to pay the costs of any such examination.

Section 10. Consent to Jurisdiction of District Court.

Each mortgage purchase agreement must require the mortgage lender to consent to the jurisdiction of the district courts of the state in any proceeding to enforce compliance with the terms of the Act, these Rules and Regulations, the mortgage purchase agreement and the servicing agreement.

Section 11. Other Homeownership Programs.

The Authority may from time to time administer federal or state grants or tax credit programs or programs under the Authority's Housing Trust Fund or the Guaranty Fund to finance or facilitate homeownership, consistent with the rules and regulations issued by the federal or state government in conjunction therewith, and such additional criteria as the Authority may authorize or establish to carry out the purpose of the Act.

Section 12. Purchase of Authority Bonds.

It is the policy of the Authority that no member, officer, employee or agent of the Authority shall require or request that any mortgage lender, who has applied for a mortgage purchase commitment from the Authority, or any person related to any such mortgage lender, purchase bonds or obligations of the Authority. Such policy shall be promptly communicated to all employees of the Authority, and any violation of such policy shall be cause for appropriate disciplinary action by the Authority.

Section 13. Sale or Securitization of Mortgage Loans.

The Authority may, from time to time, sell or assign Mortgage Loans (with or without servicing released), or may securitize Mortgage Loans (with or without servicing released) into mortgage-backed securities (including those sponsored by the federal Government National Mortgage Association or any other federal, state or privately sponsored entity) and retain, sell or assign such mortgage-backed securities.

History

• Effective 2012-11-28

Chapter 2 Loans for Rental Housing Projects

Wyo. Code R. 900.0001.2.06171999 Loans for Rental Housing Projects

Wyoming Community Development Authority

Rental Housing Program

CHAPTER 2

Section 1. Authority.

These regulations are adopted pursuant to Sections 9-7-101 through 9-7-125 of the Wyoming Statutes, as amended, with respect to the Multi-Family Rental Housing Program of Wyoming Community Development Authority (the "Authority"). The Authority is authorized under W.S. 9-7-105(a)(iv) to adopt rules and regulations for its housing and loan financing programs.

Section 2. Purpose and Objectives. These regulations are established to effectuate, and shall be applied so as to accomplish, the general purpose of the Wyoming Community Development Author- ity Act (the "Act") and the following specific objectives:

(a) the expansion of the supply of funds in the State available for construction loans, reha- bilitation loans, and temporary and permanent loans for rental housing;

(b) the provision of the additional housing needed to remedy the shortage of adequate rental housing in the State; and

(c) the effective participation by mortgage lenders in any loan financing program.

Section 3. Definitions.

(a) Unless a different meaning is required from the context in which they are used herein, all words and terms which are defined in the Act are used in these Rules and Regulations as defined in the Act.

(b) The following words or terms as used in these Rules and Regulations shall have the following meanings:

"Eligible tenants" means persons and families whose income does not exceed the maximum income levels as authorized or established by the Authority.

"Rental housing loan" means a loan of money, including advances and temporary and permanent loans, for the construction, reconstruction, rehabilitation or purchase of rental housing and may include any and all "project costs" as defined in the Act.

"Program" means the Authority's program of financing or administering financial programs for rental housing.

"Residential use" means use of each rental unit as the principal residence of the occupant and not as a vacation or "second" home.

Section 4. Rental Housing Loans.

(a) The Authority may acquire or contract to acquire any interest in rental housing property from a mortgage lender or developer for:

(i) construction loans for the interim financing of development, construction or re- habilitation of rental housing;

(ii) loans for the permanent financing of such rental housing, including acquisition; or

(iii) loans for both interim construction financing and permanent financing of such rental housing.

(b) Applications and processing.

(i) The mortgage lender or developer of the rental housing must submit an applica- tion for the financing of rental housing in a form acceptable to the Authority.

(ii) The Authority, in the processing of applications, may rely upon the Federal Hous- ing Administration, or any other entity which will guaranty or insure the project mortgage or the bonds issued to finance the mortgage, or a third party contractor approved by the Authority, for its review of the following: location, project feasibility, preliminary site plan, marketability and architectural design.

(iii) Upon approval by the Authority of the application, the mortgage lender and the developer may be required to submit the cost figures for the final construction or rehabilitation, the architectural drawings, the developer's organizational documents and other pertinent information which the Authority determines is necessary.

(iv) The Authority may require such mortgage purchase and regulatory agreements as it deems necessary to make a commitment for the purchase of a rental housing loan.

(c) Rental housing loans and/or bonds issued to fund such loans shall be insured or guaran- teed in the manner and to the extent required by the Act, by the related bond indenture and by the Authority in fulfillment of its public purposes and obligation to act with care and prudence.

(d) As a condition precedent to the initial closing of a rental housing loan, the developer and owner of the project must execute such documents as the Authority finds necessary or appropriate in regulating the acquisition, development, construction or rehabilitation of the proposed rental hous- ing and the operations of the developer and owner, in order to protect the interest of the Authority and to permit fulfillment of the Authority's responsibilities under the Act, these Rules and Regulations and any applicable federal law or agency regulation.

Section 5. Rental Housing Loans Assisted by the Federal Housing Administration.

All loans insured, guaranteed or assisted by a federal governmental agency, or with respect to which the related bonds are so insured or guaranteed, are subject to the regulations of such federal government agency or any successor insuring, guaranteeing or assisting governmental agency, and any contrary regulations of the Authority do not apply.

Section 6. Other Rental Housing.

The Authority may from time to time administer federal or state grants or tax credit programs to finance rental housing, consistent with the rules and regulations issued by the federal or state govern- ment in conjunction therewith and such additional criteria as authorized or established by the Authority to carry out the purposes of the Act.

Section 7. Examination of Books and Records.

All the books, accounts and records of the developer and owner pertaining to rental housing financed or guaranteed through the Authority are open to inspection by representatives of the Authority during regular business hours. The Authority may conduct such examinations of the books and records as it deems necessary or appropriate to determine compliance with the objectives of the Act and these Rules and Regulations. The Authority may require each developer and owner to pay the costs of any examination.

History

• Effective 1999-06-17

Chapter 3 Economic Development Projects

Wyo. Code R. 900.0001.3.12271984 Economic Development Projects

CHAPTER III

ECONOMIC DEVELOPMENT PROJECTS

Section I. Adoption of Rules and Regulations. These Rules and Regulations are adopted pursuant to W.S. 9-7-105.

Section 2. Purpose and Objectives. These Rules and Regulations are established to effectuate, and shall be applied so as to accomplish the economic development purposes of the Wyoming Community Development Authority Act, as amended. W.s. 9-7-101 through 9-7-124 (the "Act").

Section 3. Definitions. As used in these Rules and Regulations, terms defined in the Act have the meanings set forth therein, and unless the context otherwise requires:

(a) "Application" means the completed application for economic development bond financing.

(b) "Authority" means the Wyoming Community Development Authority.

(c) "Borrower" means the person, partnership, corporation or any other ,entity to whom or to which the proposed loan will be made.

(d) "Credit Enhancement Arrangement" means a letter of credit, line of credit agreement, insurance or guarantee issued by one or more lenders or by public or private insurers or guarantors including the Authority's insurance fund created under W.S. 9-7-123 that provides credit insurance for a loan for an economic development project.

(e) "Executive Director" means the Executive Director of the Wyoming Community Development Authority.

(f) "Lender" means the mortgage lender that will originate a loan for an economic development project and sell the same to the Authority.

(g) "Project" means an economic development project as defined in W.S. 9-7-103(a) (iv).

Section 4, Description of the Program. The Authority is authorized under the Act to issue bonds and to use the proceeds to purchase loans from Lenders for Projects located in the State of Wyoming.The bonds are payable solely from loan repayments and one or more Credit Enhancement Arrangements.

Section 5. Information on the Program. Information on the Authority's economic development project financing program and application forms may be obtained from the Executive Director of the Au- thority.

Section 6. Application Procedure. An Application for economic development Project financing shall be submitted on the Application form approved and provided by the Authority. The application shall be properly signed by the Borrower and the Lender and accompanied by the non-refundable application fee. An Application signed by the Lender shall constitute a commitment by the Lender to originate the loan subject to such conditions as may be expressed, and may include a commitment to enter into a Credit Enhancement Arrangement for the loan.

Section 7. Non-refundable Application Fee. The applicant shall submit with the Application a non-refundable application fee in the amount of $1,000.

Section 8. Review of the Application by the Authority. The Executive Director of the Authority shall review the Application to determine whether it is complete, and whether there is any apparent reason why the Borrower and the Project would not be eligible for financing.

Section 9. Letter from Local Governing Body. The Borrower shall request the local governing body of the city, town, or county in which the Project will be located to provide the Authority with letter stating that it has no objection to the financing of the Project with economic development bond financing. The Borrower shall request the City Council, Town Council, or Board of County Commissioners, as the case may be, to establish a time for a joint public hearing on the statutory findings set forth in ‘~.S.9-7-122. The Authority will arrange for publication of a Notice of Hearing in a local newspaper and in a newspaper published statewide. The notices need be published no fewer than 14 days before the hearing.

Section 10. Contents of the Notice of Hearing. The Notice of Hearing shall contain the following information:

.1a) The name of the local governing body conducting the hearing.

(b) The date and time of the hearing.

(c) The address and location of the hearing room.

(d) The name of the applicant.

(e) A description of the Project.

(f) The name and style under which the facility will be operated.

(g) The developer, operator, and manager of ‘the project.

(h) The location of the project.

(i) The address of the project.

(j) The maximum aggregate face amount of obligations to be issued with respect to the project,.

Section 11. Conduct of the Joint Public Hearing. A representative of the Applicant must appear at the public hearing to present testimony on the issues before the hearing. The Executive Director or other persons designated by the Authority are are hereby designated as hearing officers charged with the responsibility for attending the joint public hearing and reporting back to the Board of Directors of the Authority on the statutory findings and the resolution, if any, adopted by the local governing body of the City, Town, or County stating the statutory findings. The hearing shall be recorded and any interested firm may obtain a transcript upon payment of the cost of preparing the same.

Section l2. Adoption of the Local Governing Body's Findings; Preliminary Approval. If the local governing body adopts a resolution granting approval of the financing of the Project and making the statutory findings, the Board of Directors of the Authority shall meet to consider the report of the joint public hearing and the resolution. A representative of the Applicant may appear at the meeting at which the Authority considers the resolution adopted by the local governing body. The Board of Direc- tors of the Authority shall determine whether or not to adopt the findings of the City Council, Town Council, or Board of County Commissioners. If the Board of Directors of the Authority adopts the findings of the local governing body, it shall state those in a resolution of the Authority preliminarily approving of financing for the Project.

Section 13. Approval of Credit by the Lender. The Borrower shall furnish the Lender the following information, as applicable: credit report, current financial statements, appraisal, costs figures, lease information, business history, business income, proforma statement, purchase agreements, and any other information as requested. If the Lender approves the credit, it shall forward its approval of credit to the Authority together with its conditional commitment to participate in the financing of the Project.

Section 14. Credit Enhancement Arrangements. The Borrrower shall obtain Credit Enhancement Arrangements covering the primary risk on the loan. In addition, the Authority may arrange for secondary insurance, guarantee or other Credit Enhancement Arrangements in which event the primary Credit Enhancement Arrangements must meet the requirements of the providers of the secondary Credit Enhancement Arrangements.

Section 15. Insurance Fund. The Authority may commit the insurance fund created under W.S.9-7-123 to provide primary or secondary Credit Enhancement Arrangements to the extent that comparable arrangements are not available from private sources.

Section 16. Terms of Loans: Cost of Issuance. The interest rate and terms of the loan to the Borrower will be determined based upon the interest rate and term' of the bonds issued by the Authority to finance the project, including an interest rate differential to cover costs of administering the economic development program. The Borrower shall bear direct costs of issuance, including but not limited to underwriting discounts, counsel fees, an,d printing expense.

Section 17. Approval of the Governor. The Authority must obtain the approval of the Governor prior to issuing any bonds to finance a project.

Section 18. Issuance of the Bonds. When the Authority determines that it is prepared to consider a bond resolution, documents shall be prepared, a bond resolution adopted, the bonds sold, and the loan closed.

Section 19. Confidentiality of Information. Unless otherwise required by law, the Au- thority shall treat as confidential all information submitted by a Lender and Borrower except the following information:

(a) name and address of Borrower;

(b) name and address of Lender;

(c) short description of the Project;

(d) location of the Project;

(e) amount of the proposed loan;

(f) any other information which the Borrower has consented to disclose to the public.

Section 20. False or Misleading Statement. Any person who purposely and knowingly makes a false or deceptive statement in an Application or purposely or knowingly omits information necessary to prevent the statements in an Application from being misleading, may be prosecuted under W.S. 9-7- 121. The submission of false, misleading, or deceptive information in any Application shall be grounds for rejection of the Application.

History

• Effective 1984-12-27