825-RICR — Housing and Mortgage Finance Corporation

Chapter 10 Rules Relative to Agency Administration

Subchapter 00

825-RICR-10-00-1 Administrative Procedures

825-RICR-10-00-1 § 1.1 AUTHORITY

This regulation is promulgated pursuant to the authority granted in R.I. Gen. Laws §§ 42-35-2(a)(4), 42-35-6, and 42-35-8.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.2 PURPOSE

To set forth Rhode Island Housing and Mortgage Finance Corporation’s (the “Corporation’s”) procedures to petition for the promulgation of rules, to petition for a declaratory order, and to conduct public hearings.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.3 DEFINITIONS

A.All capitalized terms used herein shall have the same meanings as set forth in the Administrative Procedures Act, R.I. Gen. Laws § 42-35-1 et seq. (the “Act”).

B.“Person” means any individual, partnership, corporation, association, the department of environmental management, governmental subdivision, or public or private organization of any character other than an agency.

C."Petition" means a written request.

D."Petitioner" means a Person submitting a Petition.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.4 PETITION FOR PROMULGATION OF RULES

A.A Petition for the promulgation of a rule must be in writing and include the following information:

1.The name and address of the Petitioner;

2.A plain statement identifying the rule or proposed new rule at issue;

3.A detailed statement of all facts relied upon by the Petitioner;

4.A copy of any and all documents relied upon by Petitioner that are not otherwise accessible to the Corporation; and

5.A plain statement requesting the promulgation of a rule, and further indicating whether Petitioner seeks a new rule or the amendment or repeal of an existing rule.

a.In the case of a request for promulgation of a new rule or the repeal of an existing rule, the Petitioner shall identify the rule by title and/or RICR citation.

b.In the case of a request for an amendment to an existing rule, the Petitioner must identify with specificity the proposed language to be added or removed by redlining or similar means.

B.A request for the promulgation of a rule must be submitted to the Rules Coordinator by email to [email protected] or by mail delivered to the Corporation’s headquarters and addressed as follows: Rules Coordinator, Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, ATTN: Petition for Promulgation of Rules.

C.Petitions that do not conform to the procedures in this section may be denied.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.5 CONSIDERATION AND DISPOSITION OF PETITION FOR PROMULGATION OF RULES

A.The Corporation shall promptly consider and respond to a Petition for the promulgation of a rule as provided in R.I. Gen. Laws § 42-35-6. Not later than thirty (30) days after submission of a Petition, the Corporation shall deny the Petition and state its reason for the denial; or initiate rulemaking.

B.The Corporation may, at its discretion hold a public hearing for further consideration and discussion on the Petition; or request further information or documents from the Petitioner necessary for the full evaluation of his or her petition.

C.The Corporation’s final disposition is subject to judicial review. A Petitioner may appeal the Corporation’s final disposition of a Petition for the promulgation of a rule as provided in R.I. Gen. Laws § 42-35-15.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.6 PETITION FOR DECLARATORY ORDER

A.A Petition for Declaratory Order must be in writing and include the following information:

1.The name and address of the Petitioner;

2.A plain statement identifying the statute, rule, guidance document, or order at issue;

3.A detailed statement of all facts relied upon by the Petitioner;

4.A copy of any and all documents relied upon by Petitioner that are not otherwise accessible to the Corporation; and

5.A plain statement requesting a Declaratory Order, and further indicating whether Petitioner seeks:

a.An interpretation or application of a statute administered by the Corporation;

b.Clarification as to whether a rule, guidance document, or order issued by the Corporation applies to Petitioner; and/or

c.Clarification as to how a rule, guidance document, or order issued by the Corporation applies to Petitioner.

B.A request for a Declaratory Order must be submitted to the Rules Coordinator by email to [email protected] or by mail delivered to the Corporation’s headquarters and addressed as follows: Rules Coordinator, Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, ATTN: Petition for Declaratory Order.

C.Petitions that do not conform to the procedures in this section may be denied.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.7 CONSIDERATION AND DISPOSITION OF PETITION FOR DECLARATORY ORDER

A.The Corporation shall promptly consider and respond to the request for Declaratory Order as provided in R.I. Gen. Laws § 42-35-8(c). Not later than sixty (60) days after receipt of a Petition, the Corporation shall:

Issue a declaratory order in response to the Petition. If the Corporation issues a Declaratory Order, the Corporation shall include the names of all parties to the proceeding, the facts on which it is based, and the reasons for the Corporation’s conclusion in the order. The Corporation may redact confidential information in the order;
Decline to issue the declaratory order. If the Corporation declines to issue a Declaratory Order, the Corporation shall promptly notify the Petitioner in writing of the decision and include a brief statement of the reasons for declining; or
Schedule the matter for further consideration. If the Corporation schedules the matter for further consideration, the Corporation shall notify Petitioner in writing of the anticipated date on which the Corporation will grant or deny the Petition for Declaratory Order.

C.The Corporation’s final disposition is subject to judicial review. A Petitioner may appeal the Corporation’s final disposition of a Petition for Declaratory Order as provided in R.I. Gen. Laws § 42-35-15.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-1 § 1.8 PROCEDURE FOR CONDUCT OF PUBLIC HEARINGS

A.Convening of Public Hearing.

Public hearings may be held at the election of the Corporation or as required pursuant to R.I. Gen. Laws § 42-35-2.8(c).

2.Notice of public hearings shall be issued in accordance with the provisions of R.I. Gen. Laws § 42-35-2.8 and 42-46-6, when applicable.

3.Public hearings shall be held at a time and place designated by the Corporation.

B.Transcription.

1.Public hearings shall be transcribed by a stenographer or audio recorded (if required by law).

2.For public hearings, any official transcript, recording, or memorandum summarizing presentations prepared by a Corporation official shall be made part of the rulemaking record in accordance with R.I. Gen. Laws § 42-35-2.3(b)(5).

C.Testimony.

1.Oral Testimony. A Person may make oral testimony during a public hearing. A Person who wishes to make oral testimony during a public hearing must put their name on the speaker list. A Person will be called to testify in the order which their names appear on the speaker list.

2.Written Testimony. Written testimony must be submitted to the Rules Coordinator by email to [email protected] or by mail delivered to the Corporation’s headquarters and addressed as follows: Rules Coordinator, Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, ATTN: Public Hearing Testimony.

D.Disruptive Conduct. A Person attending a public hearing shall not cause disruptions, including but not limited to: screaming, loud noises, and disorderly gesticulations which interrupt or distract from the testimony of other Persons or from the ability of the Corporation to conduct a public hearing.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-06-07 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 06/07/2018

825-RICR-10-00-2 Equal Opportunity and Affirmative Action Procedures

825-RICR-10-00-2 § 2.1 Purpose

A.Objectives of Procedures. The Corporation has determined that there exists a need to ensure that recipients of its funds under the Corporation's Rental Housing Production and Rehabilitation Program (the "Multi-Family Program") do not discriminate in their hiring or contract practices on the basis of race, sex, national origin, age, religion, sexual orientation, handicap or status as a veteran. The Corporation has also determined that it is necessary to take affirmative action to eliminate the vestiges of past societal discrimination and to ensure employment opportunities and social advancements for Minorities and women.

B.These Rules and Regulations set forth requirements established by the Corporation to ensure non-discrimination and affirmative action by Housing Sponsors, Contractors, and Sub-contractors, and shall be construed and applied so as to accomplish the objectives stated above.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.2 Construction of Rules and Regulations

Construction with Act. Unless otherwise defined herein or unless a different meaning is required from the context in which they are used herein, all words and terms used in this Part are as defined in the Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.3 Definitions

"Act" means the Housing and Mortgage Finance Corporation Act more particularly set forth in R.I. Gen. Laws Chapter 42-55, as amended.

"Affirmative Action Officer" means the individual or individuals appointed by the Executive Director to serve as Affirmative Action Officer under this Part.

"Board of Commissioners" means the Board of Commissioners of the Corporation.

"Contractor" means an individual, corporation or partnership retained by a Housing Sponsor to serve as a general contractor or construction manager in the construction of a Development.

"Corporate Office" means 44 Washington Street, Providence, Rhode Island 02903.

"Corporation" means Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

"Development" means a multi-family residential housing complex under the Rules and Regulations of the Corporation Applicable to the Multi-Family Program (the "Multi-Family Regulations").

"Executive Director" means the Executive Director of the Corporation.

"Hearing Officer" means the individual or individuals appointed by the Executive Director to serve as a Hearing Officer under this Part.

"Housing Sponsor" means corporation, individuals, joint ventures, partnerships, limited partnerships, trusts, firms, associations, or other legal entities or any combination thereof, whether organized for profit or not, qualified either to own, construct, acquire, develop or rehabilitate a Development.

"Minorities" or "Minority" means persons or person of black, Native American, Asian or Hispanic ancestry.

"Minority and Female Owned" means businesses in which at least fifty-one percent (51%) of the ownership interest is held by, and which are managed and controlled by Minorities and/or women, and which have obtained written certification thereof from the state in which their principal office is located or from such other governmental or non-governmental office, board, commission, department, agency or entity satisfactory to the Corporation.

"Mortgage Loan" means a loan made to a Housing Sponsor for the purpose of providing construction or permanent financing, or both, for a Development, upon the terms and conditions required by the Multi-Family Regulations.

"Proposal" means a written proposal for the construction, development and/or rehabilitation of a Development seeking financing under the Multi-Family Program.

"Subcontractor" means individuals, corporations, joint ventures, partnerships, limited partnerships, associations or other legal entities retained by a Housing Sponsor or Contractor to render services, or services and material in connection with the construction or rehabilitation of a Development.

"Suspension" means disqualification of a Housing Sponsor from participation in the Corporation's programs and suspension of Housing Sponsor's rights to disbursements from Mortgage Loans.

"Total Construction Costs" means the total funds expended in connection with the construction or rehabilitation of the Development.

"Total Work Force Hours" means the total number of worker-hours expended in connection with construction or rehabilitation of the Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.4 Affirmative Action Obligations

A.Generally. Through affirmative action activities provided for herein, Housing sponsors shall use all reasonable efforts to ensure that ten percent (10%) of the Total Work Force Hours are provided by Minorities and women.

B.Housing Sponsors shall utilize Minorities and females, and Minority and Female Owned businesses, as contractors and Subcontractors to the greatest extent practicable in the construction or rehabilitation of the Development, and each housing Sponsor shall include a statement regarding its nondiscriminatory and affirmative action policies in all solicitations for Contractors and Subcontractors issued in connection with the Development. The Housing Sponsor shall maintain records relating to all such solicitations, all responses received to solicitations (specifically identifying responses received from Minority and Female Owned businesses), and all awards made based on such solicitations and the reasons therefor. Each Housing Sponsor shall use its best efforts to ensure that at least ten percent (10%) of the Total Construction Costs shall be paid to Minority and/or female Contractors and Subcontractors, or Minority and/or Female Owned Contractors and Subcontractors. The Housing Sponsor shall provide the Corporation with a schedule of anticipated awards to be made to Minority and Female Owned Contractors and Subcontractors prior to the initial closing of the Mortgage Loan.

C.Contractual Obligations. Housing Sponsors shall, and shall ensure that each contract with a contract price of $50,000.00 or more executed in connection with the Development shall require all contracting parties to:

1.post a written notice of at least 8 inches by 11 inches in size in a conspicuous place in its principal office stating that it is an equal opportunity employer and does not discriminate on the basis of race, sex, national origin, age, religion, sexual orientation, handicap or status as a veteran;

2.abstain from harassment, intimidation and coercion of employees based on race, sex, national origin, age, religion, sexual orientation, handicap, or status as a veteran;

3.establish and maintain a current list of recruitment sources for Minority and female employees, provide written notification to such sources of employment opportunities, and maintain a record of each organization's response to each such notification;

4.maintain a record of the name, address and telephone number of each Minority and female applicant for employment, which record shall contain a statement regarding the action taken with respect to the application;

5.to the extent feasible, participate in area based training programs for Minorities and women;

6.provide notice of its obligations under this Part to signatory unions to collective bargaining agreements it has entered, and to entities regularly conducting training programs within the area of its principal place of business, and request the assistant of such unions and entities in its compliance under this Part;

7.include a statement of its non-discriminatory practices in any company manuals, collective bargaining agreements it enters, and company newspapers or newsletters it produces;

8.notify the Housing Sponsor in writing when signatory unions and bargaining agreements it has entered prohibit or deter its equal employment and affirmative action recruiting activities;

9.ensure that all facilities and activities under its control are non-segregated, except for the segregation by sex of toilet and changing facilities;

10.where feasible, employ Minority and female workers in summer employment and on-the-job training programs;

11.take such other steps as necessary to ensure that equal employment policies are implemented and that recruitment, job classifications, and other employment procedures do not have a direct, or indirect discriminatory effect on Minority or female employees or applicants.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.5 Preliminary Information

As soon as practicable after receipt of a Housing Sponsor's Proposal, the Affirmative Action Officer shall provide the Housing Sponsor with a summary of the equal opportunity and affirmative action requirements contained in this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.6 Pre-Construction Conference

After the initial closing of the Mortgage Loan, the Corporation shall conduct a meeting with the Housing Sponsor and all Contractors chosen as of that date, at which conference the Corporation shall discuss the requirements of this Part and the Housing Sponsor's affirmative action goals in connection with the Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.7 Utilization Reports

The Housing Sponsor shall submit to the Corporation monthly a report of the Total Construction Cost as of the date of said report, and shall specify therein, the total amount paid to Minority and female Contractors and Subcontractors or Minority and Female Owned Contractors and Subcontractors.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.8 Review Conferences and On-Site Inspections

The Corporation may, anytime during construction or rehabilitation of a Development, conduct such on-site inspections, reviews of Housing Sponsor's records and all contracts relating to the Development, and conferences with Housing Sponsors, Contractors and Subcontractors as it deems necessary to ensure compliance under this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.9 Report of Discrimination Charges Filed

The Housing Sponsor shall promptly notify the Corporation in writing of any charges it becomes aware of which have been filed with the Rhode Island Commission of Human Rights, the United States Equal Employment Opportunity Commission, or otherwise, alleging unlawful discrimination by the Housing Sponsor, or any Contractor or Subcontractor in connection with the Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.10 Suspension of Housing Sponsors

A.Generally. Suspension is a measure which may be invoked by the Corporation either to exclude or to disqualify Housing Sponsors from participation in any of the Corporation's programs. Suspension shall be used for the purposes of ensuring compliance with this Part and not for punitive purposes. The exclusion or disqualification of Housing Sponsors from participation in the Corporation's programs, and the reconsideration of such measures, shall be based upon all available evidence and facts. Investigations required to accumulate such facts and evidence shall be conducted by the Affirmative Action Officer or by such other individuals as may be designated by the Executive Director from time to time.

B.Notice of Violation. In the event that the Affirmative Action Officer determines that a Housing Sponsor is in violation of its obligations under this Part, the Affirmative Action Officer shall notify the Housing Sponsor of such violations in writing by certified or registered mail, which notice shall specify the violations established, shall request the Housing Sponsor to correct all violations within fifteen (15) business days from receipt of said notice, and shall inform the Housing Sponsor of possible suspension for failure to rectify all violations within said period. The Housing Sponsor shall have fifteen (15) business days from receipt of the notice in which to rectify all violations identified, and to provide the Affirmative Action Officer with evidence of compliance satisfactory to the Affirmative Action Officer. In the event that Housing Sponsor fails to rectify the violations and produce sufficient evidence of compliance, the Affirmative Action Officer may recommend to the Executive Director that the Housing Sponsor be suspended.

1.Suspensions. Any Housing Sponsor who fails to comply with the requirements of this Part may be suspended by the Executive Director until such time as the Housing Sponsor is able to demonstrate the resolution of the matter or matters serving as a basis of the suspension and future compliance with this Part to the satisfaction of the Executive Director. The Executive Director shall review all findings of the Affirmative Action Officer and determine whether or not to suspend the Housing Sponsor as soon as practicable after receiving the recommendation of the Affirmative Action Officer.

2.Effects of Suspension. During the term of the suspension, the Housing Sponsor may not obtain any advances or payments due under any existing loan agreement with the Corporation, and the Housing Sponsor may not participate in any of the programs of the Corporation unless the Executive Director determines, in his/her sole discretion, that participation by such Housing Sponsor is in the best interest of the public. The determination to consider such applications shall include consideration of the unique value of the applicant's proposals, and the need of the community to be served by the granting of the applications.

3.Notice of Suspension. The Housing Sponsor shall be served by registered or certified mail, return receipt requested, with a written notice of suspension within five (5) days prior to the effective date of the suspension. The Notice shall state the basis for the suspension, that the suspension is effective until compliance has been documented, that the Housing Sponsor may not participate in any program of the Corporation during the term of the suspension, that all rights of the Housing Sponsor under all loan agreements with the Corporation shall be suspended until reinstatement of the Housing Sponsor, and that the Housing Sponsor may be represented by counsel.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.11 Hearings

A.Requests for Hearings. Any Housing Sponsor receiving a notification of suspension is entitled to request an opportunity to be heard and to be represented by counsel at all hearings. All hearing requests shall be made in writing addressed to the Corporation at the Corporate Office and to the attention of Affirmative Action Officer. If after ten (10) days following receipt of notification, no such request for a hearing has been received by the Corporation, the Housing Sponsor shall be deemed to have waived its right to be heard, and final action on the proposed suspension may be taken.

B.Notice and Procedures. Upon receipt of a request for an opportunity to be heard, the Affirmative Action Officer shall arrange a prompt and timely hearing. Notice of the time and place of such hearing shall be in writing, and delivered to all interested parties by certified or registered mail, return receipt requested, together with a statement indicating the nature of the proceedings. All hearings shall be conducted in accordance with R.I. Gen. Laws Chapter § 42-35, as amended, by a Hearing Officer. All witnesses shall testify under oath or affirmation and shall be subject to cross-examination.

C.Determinations by Hearing Officer in Suspension Hearings. The Hearing Officer shall make a written determination and recommendation to the Executive Director based on all evidence presented at suspension hearings. All interested parties shall be notified of said determination by certified or registered mail, return receipt requested. The Executive Director shall review the findings of the Hearing Officer and issue a final determination on suspension of the Housing Sponsor within thirty (30) days from the date of the hearing. Notice of the Executive Director's determination shall be given to all interested parties in writing, signed by the Executive Director and transmitted by registered mail, return receipt requested.

D.Powers of Hearing Officer. While conducting hearings, the Hearing Officer shall have all powers necessary to conduct hearings in an expeditious and fair manner. The powers of the Hearing Officer shall include, but not be limited to, the power to:

1.Hold conferences to settle, simplify, or fix the issues in a proceeding, or to consider other matters that may aid in the expeditious disposition of the proceeding by consent of the parties or upon his own motion;

2.Require parties to state their position with respect to the various issues in the proceeding;

3.Require parties to produce for examination those relevant witness and documents under their control;

4.Rule on motions and other procedural items on matters pending before him;

5.Regulate the course of the hearing and conduct of the participants therein;

6.Receive, rule on, exclude, or limit evidence, and limit lines of questioning or testimony which are irrelevant, immaterial or unduly repetitious;

7.Fix time limits for submission of written documents in matters before him;

8.Impose appropriate sanctions against any party or person failing or refusing to follow or to obey an order under these procedures which sanctions may include;

a.Refusing to allow the party to support or oppose designated claims or defenses, or prohibiting him from introducing designated matters in evidence,

b.Excluding all testimony of an unresponsive or evasive witness,

c.Expelling any party or person from further participation in the hearing.

d.Take official notice of any material fact not appearing in evidence in the record, which is among the traditional matters of judicial notice.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.12 Rescission and Reinstatement

Request for Reinstatement. Any Housing Sponsor against which a Suspension has been invoked may request reinstatement in writing. Reinstatement proceedings shall be conducted by the Affirmative Action officer. All recommendations of the Affirmative Action Officer for reinstitution shall be submitted to the Executive Director for final approval. Reinstatements may only be granted upon the determination that the matter or matters resulting in Suspension have been rectified, and the suspended party shall comply with all requirements of this Part in the future. When a Suspension has been rescinded, the Executive Director shall forward notice of reinstatement to the Housing Sponsor by certified or registered mail, return receipt requested.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-2 § 2.13 Substitute Policies or Procedures

Requests of Housing Sponsors. Housing Sponsors subject to other equal employment and affirmative action laws, regulations, procedures or policies ("Substitute Regulations") of any federal or state agency, board, or commission may request that the Corporation accept compliance with such Substitute Regulations in lieu of compliance with this Part if such Substitute Regulations are substantially similar to the requirements in this Part. All such requests shall be made in writing to the Executive Director of the Corporation, and shall set forth the requirements of such Substitute Regulations. All decisions of the Executive Director regarding such Substitute Regulations shall be final and binding on the parties.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-10-00-3 Access to Public Records

825-RICR-10-00-3 § 3.1 PURPOSE

A.To establish rules ("Rules") to comply with R.I. Gen. Laws Chapters 42-35 and 38-2 regarding access to Public Records maintained or kept on file by Rhode Island Housing and Mortgage Finance Corporation (the "Corporation");

B.To establish procedures for obtaining Public Records maintained or kept on file by the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-3 § 3.2 DEFINITIONS

A.All capitalized terms used herein shall have the same meanings as set forth in the Access to Public Records Act, R.I. Gen. Laws 38-2 (the "Act").

B.“Public Records Officer” means a person or persons designated to review and approve or deny Public Records requests on behalf of the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-3 § 3.3 DISCLOSURE OF RECORDS

All Public Records maintained or kept on file by the Corporation shall be subject to inspection and reproduction by members of the public in accordance with the Rules enunciated herein and the provisions of the Act, unless exempt or prohibited from disclosure by state or federal law or by order of a court of competent jurisdiction.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-3 § 3.4 REDACTION OF NONDISCLOSABLE INFORMATION

The Public Records Officer shall determine if information contained in a document which is the basis for its nondisclosure can be redacted. If so, the document shall be made available to the member of the public once the necessary redactions have been completed.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-3 § 3.5 PROCEDURES FOR OBTAINING ACCESS

A.A request to inspect and/or copy Public Records of the Corporation (the "Request") shall be presented in writing to the Public Records Officer. Except as otherwise provided herein, requests shall be made by completing the Public Records Request Form (the "Form") available on the Corporation's website or the substantial equivalent. The Form or substantial equivalent shall be presented to the Public Records Officer by email to [email protected] or by mail delivered to the Corporation’s headquarters and addressed as follows: Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, ATTN: Records Requests. Requests for Public Records maintained or kept on file by the Corporation pursuant to the Administrative Procedures Act and other readily available records may be made orally to the Public Records Officer at the Corporation’s headquarters. Requests that do not conform to the procedures in this subsection may be denied.

B.The Corporation will exert reasonable efforts to honor the Request within ten (10) business days of receipt of the Request and, if necessary, will provide a written explanation of the need for any additional time to comply, which need arises from the voluminous nature of the request, the number of requests pending, the difficulty in searching for and retrieving or copying the requested records, or other good cause permitted by law.

C.The Corporation shall not be obligated to produce for inspection or copying records which are not in the possession of the Corporation.

D.At the election of the person making the Request, the Corporation will provide copies of the Public Records electronically, by facsimile, by mail, or by in-person pick up in accordance with the requesting person’s choice, unless it would be unreasonably burdensome or costly to do so. In the alternative, the person seeking access to the Public Records shall be notified in writing when the Public Records are available and shall be provided with an appointment to examine the Public Records. The person requesting delivery shall be responsible for the cost of delivery, if any.

E.The Corporation may charge fees for search and retrieval of public records, as well as fees for producing photocopies on a per page basis, consistent with the Act. The Corporation will provide an estimate of such fees at the request of the person making the public records Request.

F.The Corporation is not required to reorganize, consolidate, or compile data which is not maintained by the Corporation in the form requested. The Corporation is not required to create lists or breakdowns that do not exist at the time of the Request. The Corporation is not required to create documents or calculations that do not exist at the time of the Request.

G.The Public Records Officer may restrict access to specified times and days, consistent with these Rules, if it is determined that this is necessary or appropriate to prevent unnecessary disruption of the Corporation's work.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-3 § 3.6 DENIAL OF ACCESS AND ADMINISTRATIVE APPEALS

The Corporation shall deny access to records requested only in accordance with the provisions of the Act and these Rules. Once denied access to a record of the Corporation, any person may petition the General Counsel of the Corporation, who serves as the Executive Director’s designee for such purposes, for a review of the denial by contacting the General Counsel or his/her designee either by email to [email protected] or in writing addressed to Rhode Island Housing, 44 Washington Street, Providence, Rhode Island 02903, ATTN: Records Requests. Further administrative appeals of denial of access may be filed with the Rhode Island Department of Attorney General or the Rhode Island Superior Court in accordance with the provisions of the Act.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2017-11-20 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 11/20/2017

825-RICR-10-00-4 Debarment and Suspension from Participation in Corporation Programs and Transactions

825-RICR-10-00-4 § 4.1 Purpose

The Corporation shall promote affordable housing and fulfill its statutory purposes through interactions with responsible parties only. In doing so, it must promote and encourage the highest level of integrity and service in the public interest. Debarment and suspension are discretionary actions that, taken in accordance with this Part, are appropriate means to effectuate this policy. The serious nature of debarment and suspension requires that these sanctions shall be imposed in protection of the interests of the Corporation and the public and not for the purposes of punishment.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.2 Construction of the Rules and Regulations

Unless otherwise defined herein or unless a different meaning is required in the context in which they are used herein, all words and terms used in this Part are as defined in the Corporation’s Enabling Act, as codified at R.I. Gen. Laws Chapter 42-55.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.3 DEFINITIONS

A."Adequate Evidence" means information that is sufficient to support a reasonable belief that a particular act, omission, or event has occurred.

B."Affiliates" means business concerns, organizations, or individuals associated with another as a subordinate, subsidiary, or member. Business concerns, organizations, or individuals are Affiliates if, directly or indirectly, (A) either one controls or has the power to control the other, or (B) third-party controls or has the power to control both. Indicia of control include but are not limited to, interlocking management or ownership, identity of interests among family members, shared facilities and equipment, common use of employees, or a business entity organized following the debarment, suspension, or proposed debarment of a contractor which has the same or similar management, ownership, or principal employees as the contractor that was debarred, suspended, or proposed for debarment.

C."Civil Judgment" means a judgment or finding of civil offense by any court or administrative body of competent jurisdiction.

D."Contractor" means any person that does either of the following directly or indirectly (e.g., through an Affiliate):

1.performs or provides labor or professional or technical services or supplies goods to the Corporation pursuant to a contract or participation agreement; or

2.conducts business with the Corporation as the agent, representative, or subcontractor of another contractor.

E."Conviction” means a judgment of guilt in a criminal case by any court of competent jurisdiction, whether by verdict, guilty plea, or plea of nolo contendere, and whether the judgment has been or is on appeal.

F."Debarment" means action taken to exclude a person from direct or indirect participation in any Corporation program or transaction whether as a Contractor, Participant or as an Affiliate thereof.

G."Notice” means written communication delivered by personal service or sent either by certified mail, return receipt requested, or by commercial courier with verification of delivery.

H."Participant" means any person who directly or indirectly takes part in or is involved in or applies to participate in a Corporation program or transaction other than as a Contractor. Participant includes a person who receives benefits or income from or through another Participant or Contractor. A Participant includes any of the following:

1.Bonding companies

2.Borrowers

3.Builders

4.Grantees

5.Mortgagors

6.Management agents

7.Marketing agents

8.Owners of housing developments

9.Recipients of housing subsidies

10.Persons employed by, or offering services to, Participants, such as any of the following:

a.Architects

b.Accountants

c.Attorneys

d.Consultants

e.Engineers

f.Contractors with Participants

g.Subcontractors of Contractors with Participants

I."Person" means an individual, sole proprietor, corporation, limited liability corporation, partnership, limited partnership, joint venture, association, unit of government, or other form of legal entity.

J."Respondent" means a person against whom Debarment or Suspension is to be imposed.

K."Suspension" means an action which immediately excludes a person from direct or indirect participation in Corporation programs or transactions, whether as a Participant, Contractor or Affiliate thereof, for a temporary period pending completion of any legal or Debarment proceeding.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.4 Applicability

A.This Part shall apply to any program or transaction funded or administered by the Corporation, including any of the following:

1.Grants, assistance contracts, loans, subsidies, awards, loan service contracts, allocations, or contracts related to federal tax credits administered by the Corporation.

2.Participation or agency contracts for Corporation programs.

3.Professional or technical service contracts or subcontractors.

B.Sanctions imposed hereunder shall not preclude any Person from:

1.Renting an apartment assisted under any Corporation program or

2.Financing an owner-occupied single-family home under any Corporation program, if they otherwise qualify for such program.

C.Sanctions imposed hereunder shall not bar any person from receipt of any funds, credit, or benefit to which the person is otherwise entitled under federal or state law and for which the Corporation is solely the program administrator; however, this exception does not enable or authorize participation in the program involving the applicable funds, credit, or benefit beyond the mere receipt of such funds, credit, or benefit. This provision does not prevent sanctions where the Corporation acts as program administrator and also has the ability to impose additional requirements beyond those requirements of state or federal law as a prerequisite to receipt of the respective funds, credit, or benefit.

D.Persons are subject to this Part regardless of whether they are acting as a Contractor, Participant, Affiliate or one receiving funds directly or indirectly from a Contractor or a Participant.

E.Persons are subject to this Part whether the conduct at issue occurred while they were engaged in a Corporation program or transaction.

F.The Corporation shall require that Contractors and Participants submit a disclosure statement setting forth such information as may be necessary to make any determination hereunder.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.5 Causes for Debarment

A.Debarment may be imposed for any of the following causes:

1.Conviction of a criminal offense, including a conviction for an attempted criminal activity, or civil judgment, for an offense or actions involving or indicating dishonesty, false pretense, or misrepresentation. The following list contains examples of the type of offense that may result in debarment:

a.Fraud

b.Bribery

c.Embezzlement

d.Forgery

e.Falsification of documents or records

f.Theft

g.Robbery

h.Larceny

i.Receiving and concealing stolen property

j.Obtaining Goods, money, or services under false pretenses

k.Misrepresentations (intentional or negligent)

l.Price fixing

m.Bid rigging or other violation of federal or state laws involving the submission of bids or proposals.

n.Violation of other federal or state law involving illegally obtaining or attempting to obtain public or private goods, services, or contracts.

2.Violation of Corporation regulation or policy through conduct that evidences dishonesty, a lack of business integrity, or a willful or repeated failure to perform obligations in a responsible manner.

3.Knowingly submitting false or materially misleading information or documentation to the Corporation.

4.Imposition of any civil or administrative penalty related to the operation, financing, development or management of any commercial or residential property subsidized by the Corporation.

5.Failure to perform contractual obligations to the Corporation, which evidences willful or repeated noncompliance with the terms and conditions of the contracts or agreements and a failure or refusal to perform in a responsible manner.

6.Debarment or equivalent exclusionary action by a governmental body or public instrumentality, including but not limited to the Department of Housing of Urban Development, any department, agency or public corporation of the State of Rhode Island or any public housing authority.

7.Loss or suspension of a license or the right to do business or practice a profession, the loss or suspension of which indicates dishonesty, a lack of integrity, or a failure or refusal to perform in accordance with the ethical standards of the business or profession in question.

8.Violation of federal, state, or local civil rights, equal rights, or nondiscrimination laws, ordinances, rules, or regulations.

9.Violation of provisions in contracts or agreements concerning nondiscrimination or equal opportunity in employment, housing, or lending.

10.Violation of law, rule, regulation, or provision of contract or agreement involving conflict of interest or an improper shared identity of interest.

11.Other events, conduct, or causes serious enough to lead to a determination of dishonesty, a lack of business integrity, or willful or repeated failure to perform obligations in a responsible manner.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.6 Debarment Procedures

A.Debarment procedures shall be initiated by an authorized officer or employee of the Corporation, as designated by the Board of Commissioners. Procedures shall commence with the sending of a written Notice of Debarment to the respondent.

B.The Notice of Debarment shall be sent to each Respondent and shall contain all the following information:

1.That Debarment is being proposed.

2.The acts or omissions that are the grounds upon which Debarment shall be based.

3.The particular provisions of laws, regulations, rules, and program requirements involved.

4.The nature and duration of the proposed Debarment.

5.That the Respondent has the right to request a hearing regarding the proposed Debarment.

C.A Respondent is entitled to a hearing on the matters set forth in the Notice of Debarment by delivering a written Request for Hearing to the authorized officer or employee initiating the Debarment procedures within fifteen (15) days of the Notice of Debarment. If the Respondent does not request a hearing as provided herein, the proposed Debarment shall be implemented without further notice.

D.If a hearing is requested:

1.The Corporation will schedule a hearing and send written notice to the Respondent at least fifteen (15) days in advance of the hearing specifying:

a.The time, place and nature of the hearing;

b.A statement of the legal authority and jurisdiction under which the hearing is to be held;

c.A reference to the sections of the statutes and rules involved; and

d.A short and plain statement of the matters at issue.

2.The hearing will commence within thirty (30) days of the date of the Request for Hearing, unless mutually extended by the Corporation and the respondent.

E.The hearing will be conducted in accordance with this Part and the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35, as amended. The Corporation’s Board of Directors shall designate authorized officials to serve as hearing officers to effectuate this Part.

F.Within sixty (60) days of the completion of the hearing, the hearing officer shall issue his or her written order. Said written order shall be presented for review and approval by the Corporation’s Board of Commissioners at its next regularly scheduled or special meeting held in accordance with the requirements of the Rhode Island Open Meetings Act, R.I. Gen. Laws Chapter 42-46. As part of the review by the Board of Commissioners, the respondent shall have the right to submit written exceptions or arguments responding to the hearing officer’s order. The Board of Commissioners may approve the order and recommended sanctions, remand the matter to the hearing officer for further specifically defined proceedings or vote to deny the imposition of sanctions.

G.Any respondent may elect to resolve the matter with the Corporation before the completion of the hearing, such that the Respondent agrees to accept a sanction imposed by the Corporation. The Respondent and the Corporation shall sign a notarized agreement stating the Respondent’s agreement to forgo the initiation or completion of a hearing and the Respondent’s agreement to the imposed sanction.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.7 Duration of Debarment

A.Debarment shall be for a period of time commensurate with the acts or omissions of the Person to be debarred. Where the offense is egregious, permanent Debarment may be imposed in the best interests of the Corporation.

B.If a Person is Suspended pursuant to this Part, the period of Debarment shall be reduced by the period of time that the person has been Suspended, if the Suspension was for the same offense.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.8 Scope and Effect of Debarment

A.The Corporation’s decision to Debar a Person shall specify the scope of Debarment. A Person can be debarred from one or more particular Corporations programs or transactions or from all Corporation programs and transactions.

B.Unless prohibited by law, the Corporation may require that a non-Debarred Contractor or Participant must terminate existing contracts or agreements with a Debarred Person. Further, a Participant or Contractor shall not renew or extend a contract or agreement with a Debarred Person.

C.A decision to Debar a Person may also serve to Debar any Affiliate of such Person, if the Affiliate is named in the Notice of Debarment and given an opportunity to request a hearing.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.9 Limitation Periods to Commence Debarment Proceedings

A.A Notice of Debarment shall be issued within three (3) years after the later of any of the following:

1.The effective date of this Part;

2.Criminal conviction or civil judgment;

3.Completion of administrative proceedings, investigation, or other action;

4.Discovery by the Corporation of the facts, actions, omissions, or events which provide the cause upon which the Debarment is based;

5.The initial submission of the disclosure statement pursuant to § 4.4(F) of this Part or the Corporation’s discovery of any material omissions or misstatements in the disclosure statement.

B.Notwithstanding the provisions of § 4.9(A) of this Part, the Corporation shall have the right, within the exercise of its discretion and fulfillment of its public purposes, to serve a notice of Debarment without any limitation period upon any former commissioner, officer or employee of the Corporation, who was convicted of any criminal offense within the scope of his or her service to the Corporation and who later seeks to transact business with the Corporation either directly or indirectly.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.10 Reinstatement Following Debarment

A.A Debarred Person shall not be allowed to resume participation in Corporation programs or transactions until the expiration of the period of Debarment or until a petition for early reinstatement has been submitted and approved by an authorized officer of the Corporation, whichever occurs first. The approval of a petition for early reinstatement rests in the sole discretion of the Corporation.

B.Petitions for early reinstatement shall only be submitted as follows:

1.Upon discovery of new evidence which was not previously discoverable or upon the dismissal of criminal charges or a civil or administrative action, the reversal of a criminal conviction or a civil judgment, or the reversal of the debarment or other exclusion imposed by another governmental agency, upon which the authority for the Debarment was based.

2.Upon a bona fide change in ownership or management of the Person Debarred.

3.Upon proof that the causes for Debarment have been eliminated.

C.The petition for early reinstatement shall be submitted to the Corporation’s Executive Director, who will request a written response to the petition from the Corporation official that initiated the debarment proceedings, if he or she is currently in the Corporation’s employ, or if not, from such other Corporation official designated by the Executive Director. In the exercise of his or her discretion, the Executive Director shall determine whether the Corporation shall hold a hearing on the petition for reinstatement.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.11 Suspension

A.The Corporation may impose Suspension on a Contractor, a Participant and/or a named Affiliate thereof when adequate evidence exists that any of the causes set forth in § 4.5(A) of this Part are present and the decision to suspend is in the Corporation’s best interests.

B.The Corporation’s Executive Director may, upon receipt of reports, investigations, or other documents determine that cause exists to suspend a Contractor, a Participant and/or any named Affiliate. Unless exigent and emergency circumstances mandate the immediate imposition of a Suspension, the Executive Director shall furnish written Notice of Suspension to each Respondent at least five (5) days before the effective date of Suspension. The Notice of Suspension shall state:

1.that a Suspension has been imposed;

2.the effective date of the Suspension;

3.the facts giving rise to the Suspension;

4.the causes relied upon for the Suspension;

5.that the Suspension is for a temporary period pending the completion of an investigation and any ensuing legal or debarment proceeding.

C.The Executive Director shall report the Suspension to the Corporation’s Board of Commissioners at its next regularly scheduled or special meeting held in accordance with the provisions of the Rhode Island Open Meetings Act, R.I. Gen. Laws Chapter 42-46.

D.Within thirty (30) days after receipt of the Notice of Suspension, each Respondent may submit to the Executive Director, in writing, any relevant information or argument in opposition to or clarification of the suspension.

E.Upon receipt of such written response, the Executive Director shall determine in the exercise of his or her reasonable discretion and within ten (10) days thereafter whether the response raises a genuine and material dispute regarding the facts upon which the Suspension is based and whether a hearing is necessary to review the disputed facts. If the Executive Director determines that a hearing should be held, it shall be subject to the procedures outlined in §§ 4.6(C) through (E) of this Part, except that the hearing will commence no later than twenty (20) days after the Executive Director’s decision that a hearing is necessary, unless the Corporation and the Respondent agree to a later starting date of the hearing.

F.A Suspension shall be for a temporary period pending the completion of investigation and any ensuing legal or debarment proceedings, unless sooner terminated. A suspension shall not continue for more than six (6) months from its effective date, unless civil or criminal action regarding the alleged violations shall have been initiated within that period, or unless debarment proceedings have been initiated. The Suspension continues until the legal or debarment proceedings are completed.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.12 Effect on Current Corporation Contracts

A.The Corporation shall have the discretion to continue contracts or subcontracts in existence at the time of a Debarment and/or Suspension decision.

B.The Corporation shall determine the impact of a Debarment or Suspension decision upon the financing or refinancing of any housing development. Notwithstanding a Person’s Debarment, the Board of Commissioners may allow the release of additional funds or approve a restructuring or refinancing if it is in the best interests of the Corporation or the development’s residents. However, the Board of Commissioners may require, as a condition of the Corporation’s provision of additional funds, restructuring or refinancing, that the Debarred or Suspended Person must divest any interest in the affected housing development.

C.Nothing in this Part shall be construed to limit the Corporation’s discretion with regard to its evaluation of any application or request for Corporation funds, assistance or services. In all circumstances, the Corporation expressly has the right to evaluate the past performance, character and expertise of applicants for loans, grants or other public benefits.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.13 LIST OF DEBARRED OR SUSPENDED PERSONS

The Corporation shall maintain a list of all persons who have been Debarred or Suspended in accordance with this Part. The list shall be available for public inspection in accordance with the Rhode Island Access to Public Records Act, R.I. Gen. Laws Chapter 38-2.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

825-RICR-10-00-4 § 4.14 SEVERABILITY

If any provision contained under this Part or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the provisions or application of this Part which can be given legal effect.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2004-01-04 to 01/04/2022
Adoption — effective from 2004-01-04 to 01/04/2004

Chapter 20 Rules Relative to Single-Family Loan Programs

Subchapter 00

825-RICR-20-00-1 Mortgage Finance Programs

825-RICR-20-00-1 § 1.1 CONSTRUCTION OF RULES AND REGULATIONS

Construction with Act. Unless otherwise defined herein or unless a different meaning is required from the context in which they are used herein or is required by the Tax Act, all words and terms used in this Part are as defined in the Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.2 DEFINITIONS

A."Act" means the Housing and Mortgage Corporation Act set forth in R.I. Gen. Laws Chapter 42-55, as amended.

B."Aggregate Family Income" means the aggregate total of the family income, as defined by the Tax Act, of anyone required by the Tax Act to be taken into account for purposes of determining eligibility under a Program.

C."Board of Commissioners" means the Board of Commissioners of the Corporation.

D."Bond Proceeds" means proceeds from bonds issued pursuant to a Program.

E."Borrower" means persons satisfying the Eligibility Criteria set forth in § 1.4 of this Part and party to a Mortgage Loan. The term "Borrower" shall include cooperative housing corporations organized under the laws of the State of Rhode Island that are eligible to receive financing from Bond Proceeds. The term "Borrower" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

F."Closing of the Mortgage Loan" means the date the Mortgage Loan documents are executed by a Borrower or on its behalf.

G."Corporation" means Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

H."Fair Market Value" means

1.with respect to a New Dwelling or existing dwelling, the lower of

a.the value of a dwelling as determined by a qualified appraiser acceptable to the Corporation, or

b.the sale price plus the cost of any improvements to be financed by the Mortgage Loan; and

2.with respect to a rehabilitated dwelling, the sale price, plus the cost of any improvements to be financed by the Mortgage Loan.

I."FHLMC" means the Federal Home Loan Mortgage Corporation, a corporation organized and existing under the laws of the United States of America.

J."FNMA" means the Federal National Mortgage Association, an agency of the United States government.

K."Mortgage Lender" means an institution engaged in the business of lending which:

1.meets the qualifications of the Program as set forth in this Part.

2.has executed a Mortgage Purchase Agreement with the Corporation and

3.submits or has heretofore submitted a proposal for making Qualified Mortgages which proposal is or has previously been accepted by the Corporation.

L.The term "Mortgage Lender" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

M."Mortgage Loan" means a loan to a Borrower evidenced by a promissory note and secured by a mortgage deed or other instrument constituting a lien on improvements and real property in fee simple. For purposes of this Part:

1.a loan to a qualified Borrower secured by a share certificate or membership certificate in a cooperative housing corporation and/or a proprietary lease,

2.a loan by a lessor with an option to purchase secured by an assignment of the option or

3.an installment sale contract secured by an assignment of the sales contract shall constitute a Mortgage Loan.

N."Mortgage Purchase Agreement" means a mortgage purchase agreement between the Corporation and a Mortgage Lender by which the Mortgage Lender agrees to originate, sell, transfer and assign Qualified Mortgages to the Corporation from time to time upon certain terms and conditions.

O."New Dwelling" means a one to four family residential dwelling unit which, on the date the Corporation or a Mortgage Lender makes a Qualified Mortgage with respect thereto, has not been previously occupied. A One Unit New Dwelling may be a single condominium or cooperative unit.

P."One, Two, Three or Four Unit Existing Family Dwelling" means real estate upon which is located or to be located a structure or structures consisting of dwelling units for one (1), two (2), three (3) or four (4) families, respectively, all of which shall be used primarily for residential purposes only. A One Unit Existing Family Dwelling may be a single condominium or cooperative unit. The term "Dwelling" shall be deemed to refer collectively to One, and to the extent permitted by the Act, the Tax Act and resolutions of the Board of Commissioners, Two, Three and Four Unit Existing Family Dwellings including Dwellings to be rehabilitated and units in a condominium or a cooperative housing corporation development.

Q."Program" means any one of the Corporation's programs of purchasing or making Qualified Mortgages with Bond Proceeds and with other funds available for such purpose or any program of the Corporation involving the making of direct loans to qualified Borrowers. The term "Program" shall be broadly construed to include any program of providing financing for the lease, acquisition and/or rehabilitation of housing by persons and families of low and moderate income which the Corporation is authorized to engage in under the Act and the Tax Act, which Program the Corporation establishes by Program Bulletin.

R."Program Bulletin" means a bulletin issued by the Corporation implementing a Program or resolving any ambiguity in this Part, with respect to a Program or Programs. Program Manuals, Mortgage Lender's Manuals and similar documents issued by the Corporation shall constitute Program Bulletins for purposes of this Part. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying between the hours of 9:00 a.m. and 5:00 p.m. on Mondays through Fridays, except holidays.

S."Qualified Mortgage" means a Mortgage Loan endorsed for insurance or guaranty by the Federal Housing Administration, Farmers' Home Administration, Veterans Administration, under a program of self-insurance established by the Corporation or through any subsidiary of the Corporation, or a Mortgage Loan otherwise eligible to be originated or financed for purchase by the Corporation pursuant to this Part.

T."Registration" means a reservation for available funds submitted by a Mortgage Lender. Registrations may be submitted by fax or mail as the case may be.

U."Residential Use" means used primarily as the principal residence by the owner, owners or occupants thereof, as well as any incidental use of a Dwelling consistent with the Tax Act.

V."Servicer" means any bank, credit union, loan and investment company, trust company, savings bank, national banking association, savings and loan association, building-loan association, life insurance company, mortgage banking company or other entity authorized to transact business in the State, which satisfies the Corporation's requirements under this Part and which shall execute a Servicing Agreement. The term "Servicer" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

W."Servicing Agreement" means a contractual arrangement of the Corporation with a Servicer for the servicing of Qualified Mortgages, including the collection and deposit of payments, accounting for interest and principal payments and proper applications of escrow payments and containing such other terms and conditions as the Corporation may deem appropriate.

X."State" means the State of Rhode Island and Providence Plantations.

Y."Tax Act" means the Internal Revenue Code of 1986, as amended, the rules and regulations promulgated or deemed to be promulgated thereunder as now in effect or as may be promulgated and from time to time amended, and any corresponding provision of prior or future federal tax laws that apply to a Program.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.3 PURPOSE AND PROCEDURE

A.Scope of this Part. This Part is intended to provide the public with the criteria used by the Corporation in determining which persons will benefit from its Programs and in selecting, where appropriate, Mortgage Lenders and other third parties to assist the Corporation in the implementation of its Programs. The Corporation's Programs are structured to make home ownership more affordable for low and moderate income residents of the State and to stimulate the production of housing, including cooperative housing, within the State.

B.General Procedures for Purchase of Mortgage Loans.

1.The Corporation generally secures funds to purchase Mortgage Loans by issuing tax-exempt bonds. Proceeds of these bonds may be made available directly or may become available as a result of investment earnings or because of the advance payment or other termination of Mortgage Loans previously purchased. Since the enactment of the Tax Act, certain specific requirements concerning the eligibility of Borrowers and the Dwellings being financed with the proceeds of tax-exempt bonds have been adopted by the Corporation and must be adhered to by the Corporation in connection with certain of its Programs. However, the Corporation may remove certain of such requirements with respect to Mortgage Loans to be purchased from funds which are not subject to such requirements and to add certain requirements under the Program as are necessary to effect compliance with the Tax Act.

2.The Corporation will from time to time notify all of its Mortgage Lenders of funds for set aside for Mortgage Loans in Targeted Areas or for new construction, rehabilitation, or other particular types of eligible properties under § 1.4 of this Part or for lower income Borrowers. All Mortgage Lenders will be given the opportunity to register Mortgage Loans for purchase by the Corporation on forms provided by the Corporation. The Corporation may, at any time it deems necessary or advisable, suspend the acceptance of reservations from any or all Mortgage Lenders.

3.Under the Tax Act, certain funds must be set aside for a one (1) year period from the date such funds are initially available to make loans in Targeted Areas as defined in the Tax Act. In addition, funds may be set aside for loans generally or for particular types of loans including, without limitation, second mortgage loans and loans for Borrowers having certain income or other characteristics, it being intended hereby to provide flexibility to the Corporation to carry out the purposes of the Act. The Corporation will establish limitations on the period of time during which funds will be reserved for a particular loan from amounts set aside by the Corporation generally or for a particular purpose. In the sole discretion of the Corporation, such time limitations may be extended because of circumstances beyond the control of the Borrower. Purchases will be made only pursuant to the Mortgage Purchase Agreement.

4.The Corporation may from time to time by Program Bulletin notify Mortgage Lenders of new Programs and will periodically notify them of rate changes and other changes in the terms and conditions of Programs.

5.The Corporation will accept Registrations from Mortgage Lenders only upon or subject to the availability of funds. Registrations will be accepted from Mortgage Lenders on a first come, first serve basis. Registrations and related information issued by the Corporation are commitments solely to reserve funds for Mortgage Loan purchases on terms and conditions set forth in the Regulations and are not commitments to purchase the Mortgage Loans. The Corporation reserves the right to impose additional requirements on Mortgage Lenders prior to permitting participation in any Program in order to further the objectives of the Act and this Part.

6.Registrations must be submitted to the Corporation for confirmation within a business day after a Mortgage from applicant is received by a Mortgage Lender. The Corporation will confirm such registration in writing. The Corporation may require Mortgage Lenders to provide periodic reports concerning the status of applications, commitments, loan closings and Mortgage Loans submitted for purchase. The Corporation at its sole discretion may reduce or otherwise limit the Registrations by a Mortgage Lender and reallocate such amounts in accordance with its normal procedures.

7.In addition, where circumstances beyond the control of the individual Mortgage Lenders make it appropriate, the expiration dates for Registrations may be extended for all Mortgage Lenders.

C.General Procedures for Direct Originations. In addition to purchasing Mortgage Loans pursuant to the provisions herein contained, the Corporation may directly originate Mortgage Loans pursuant to this Part and the Act. The terms and conditions of such direct origination shall be determined by Program Bulletin. Such direct originations of Mortgage Loans shall be made after a determination by the Corporation that such loans to be directly originated are not otherwise available wholly or in part from private lenders upon reasonably equivalent terms and conditions. To the extent that the Corporation does not fund such loan with the proceeds of tax-exempt bonds, the Corporation may remove certain specific requirements of the Tax Act with respect to such loans and may exempt such loans from other requirements of this Part as may be appropriate. Applicants shall apply for such Mortgage Loans on forms provided by the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.4 ELIGIBILITY CRITERIA

1.4.1Qualifications of Borrowers

A.Tax Act and Program Requirements. A condition to continued eligibility in the Program is the continued use of the Dwelling as a primary permanent residence. Borrowers and occupants of cooperative housing corporations, as applicable, shall be required to execute an affidavit evidencing an intent to continue to use and occupy the Dwelling as a primary permanent residence throughout the term of the Mortgage Loan and such other affidavits and certifications as may be required by the Corporation in order to provide evidence of compliance with the Tax Act and the requirements of the Program.

B.Income Limitations. For each Program, the Corporation shall by Program Bulletin establish limitations with respect to the Aggregate Family Income of Borrowers and occupants of cooperative housing developments. For Mortgage Loans to be financed with tax-exempt Bond Proceeds, the limitations shall be based on percentages of the median family income for the Providence, Rhode Island metropolitan statistical area as established by the Department of Housing and Urban Development or such other limitations as may be permitted under the Tax Act. For all other Mortgage Loans, the limitation shall, at the option of the Corporation, be the higher of:

1.the income limitation established for Mortgage Loans set forth above or

2.the limitations based on the average family or household income for the State of Rhode Island as determined annually by the Corporation.

C.Program Extension; Reallocation of Set Asides. Notwithstanding any other provision herein contained, if the Corporation has Bond Proceeds or other funds remaining after the expiration of the term of any set aside originally made from such proceeds or funds, the Corporation may, in its sole discretion, cause the Program to be made available to such persons as the Corporation may from time to time determine by Program Bulletin. Funds set aside for Targeted Areas (as defined in the Tax Act) may be reallocated by the Corporation after the expiration of one (1) year from the date such funds are initially available.

D.Asset Test. The Corporation may from time to time by Program Bulletin include an asset test as an additional condition to eligibility for receipt of a Mortgage Loan, Special Housing Assistance (as defined in § 1.7(H) of this Part) or for any other type of assistance provided hereunder to a Borrower or any class of Borrowers.

1.4.2Eligible Properties

A.Dwellings. To be eligible under the Program, the Dwelling must be located in the State of Rhode Island, and must be structurally sound and functionally adequate. The Corporation may from time to time impose additional requirements by Program Bulletin with respect to any Dwelling.

B.Acquisition Cost Limitations. The acquisition cost of Dwellings may not exceed the Acquisition Cost Limits set forth in the Tax Act. The Corporation shall establish Acquisition Cost Limits by Program Bulletin for each Program.

C.Hazard Insurance. All Dwelling improvements shall be covered by a valid and subsisting policy of standard hazard insurance providing fire and extended coverage to an amount equal to the greater of:

1.eighty percent (80%) of the Fair Market Value of real estate or

2.an amount sufficient to protect the Corporation's interest in such Mortgage Loan.

D.Credit Terms. Each Borrower shall be subject to credit review by the Corporation or by a Mortgage Lender or private mortgage insurer. The Corporation may rely on the expertise of the Mortgage Lender and private mortgage insurer and, in the making of direct loans shall employ customary credit verification standards applicable to mortgage loans sold in the secondary mortgage market. It shall be a condition of financing by the Corporation that the Borrower obtain credit approval by the Mortgage Lender, private mortgage insurer or the Corporation's underwriting department, as the case may be.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.5 TARGETED AREAS

Targeted Areas. The Corporation shall from time to time designate Targeted Areas for special set asides of Bond Proceeds as required by the Tax Act. Targeted Areas shall include census tracts in the State in which at least seventy percent (70%) of the families have an Aggregate Family Income which is eighty percent (80%) or less of the statewide median family income and any "Areas of Chronic Economic Distress" which may hereafter be designated for the State in accordance with criteria set forth in the Tax Act. The designation of Targeted Areas will be established by the Corporation's Board of Commissioners at a regular or special meeting from time to time. Areas removed from Targeted Area designation shall also be similarly determined.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.6 PARTICIPATION BY MORTGAGE LENDERS, SERVICERS AND OTHER THIRD PARTIES

A.Application by Mortgage Lender. To request to participate in a Program, a lending institution shall submit an application which may be obtained by writing or telephoning the Corporation at its principal office located at 44 Washington Street, Providence, Rhode Island 02903.

B.Qualifications. To qualify as a Mortgage Lender, an institution must make residential mortgage loans in the regular, usual and ordinary course of business and must be an approved FNMA or FHLMC seller/servicer or otherwise be approved by the Corporation as having the capability and experience necessary to originate loans responsibly in furtherance of the purposes of the Program.

C.Mortgage Purchase Agreement. If the application is accepted, the Mortgage Lender shall enter into a Mortgage Purchase Agreement in form prescribed by the Corporation which shall set forth the manner and terms of sale of Mortgage Loans. The Mortgage Purchase Agreement shall contain, in addition to such other terms and conditions as the Corporation may establish:

1.penalty provisions in the event a Mortgage Lender fails to originate Mortgage Loans in accordance with the rules and regulations of the applicable Program and

2.provisions respecting the repurchase of non-qualifying Mortgage Loans by Mortgage Lenders. Mortgage Lenders will be required to carry out the Mortgage Purchase Agreement in accordance with the procedures established by the Corporation.

D.Commitments to Borrowers; Extensions. No Mortgage Lender shall give a commitment to a Borrower to make a Qualified Mortgage prior to the date on which the Corporation notifies the Mortgage Lender that a Registration has been confirmed and the Corporation has committed to the Mortgage Lender that it will purchase the Loan. The Corporation may extend the time period in which it will accept Qualified Mortgages from any or all Mortgage Lenders upon such terms and conditions as are set forth in the Mortgage Purchase Agreement; provided, however, that in no event shall the total time period for delivery of Qualified Mortgages for any Mortgage Lender, as extended, exceed thirty-six (36) months from the date of the Mortgage Purchase Agreement or such other person as may be required by the Tax Act. The Corporation may terminate commitment in accordance with the terms of the Mortgage Purchase Agreement.

E.Mortgage Lender's Reserve Account.

1.Each Mortgage Lender that retains servicing on Mortgage Loans purchased by the Corporation shall establish a non-interest bearing escrow account in the name of and under the exclusive control of the Corporation which shall be known as the "Mortgage Lender's Reserve Account. Such Mortgage Lender shall be required to deposit therein an amount equal to one and one-half percent (1.5%) of the purchase price (or such other amount as the Corporation may from time to time establish by Program Bulletin) of those Qualified Mortgages purchased by the Corporation from such Mortgage Lender for which such Mortgage Lenders retained servicing rights. The amounts so deposited shall be paid out of the Mortgage Lender's Reserve Account to the Mortgage Lender in accordance with the terms of the Mortgage Purchase Agreement; provided, however, that the Corporation may from time to time withdraw from the Mortgage Lender's Reserve Account, in the event of the foreclosure or other disposition for default thereunder of any Qualified Mortgage purchased from such Mortgage Lender, the amount of the deficiency, if any, of the proceeds of such foreclosure or other disposition received by the Corporation below the amount due the Corporation upon such default.

2.Upon payment in full or other disposition of the Qualified Mortgages purchased by the Corporation from a Mortgage Lender, amounts remaining in such Mortgage Lender's Reserve Account shall be paid over to such Mortgage Lender.

F.Fee. Each Mortgage Lender shall be permitted to collect a fee upon the Closing of the Mortgage Loan, which fee shall be retained by the Mortgage Lender as an origination fee. The amount of the fee shall be as set forth in the Mortgage Purchase Agreement and as may be modified from time to time by Program Bulletin. No other fees or other remuneration shall be directly or indirectly received by the Mortgage Lender in making any Qualified Mortgage unless specifically approved by the Corporation.

G.Servicing. A Mortgage Lender that is an approved FNMA or FHLMC servicer for residential mortgage loans that elects to originate Qualified Mortgages on a servicing retained basis will normally be selected by the Corporation as the approved Servicer for loans originated by it pursuant to the Program; provided, however, that Mortgage Lenders shall, with the written consent of the Corporation, have the right to assign servicing to another approved Servicer; and, provided, further, that in all events the Corporation may either service the loan or may contract with any other FHLMC approved servicer or servicers to service any Mortgage Loan and the Mortgage Lender shall consent to such assignment. Each approved Servicer shall be required to enter into an agreement with the Corporation undertaking to service loans for the Corporation in accordance with the Corporation's established procedures for all approved Servicers. Such agreement shall contain provisions relating to servicing compensation, required hazard and private mortgage insurance, escrows, auditing and rights of termination, among other things.

H.Third-Party Participation. Subject to the provisions of applicable law the appraisers, credit reference services, title attorneys and hazard and title insurers employed in the origination of a Mortgage Loan to be purchased by the Corporation pursuant to the Program are to be selected by the Mortgage Lender in accordance with its normal practices in conjunction with loans originated in the State for sale to the FNMA or the FHLMC. In order to provide protection against risks and to enhance the marketability of its obligations, the Corporation may from time to time in its sole discretion contract for bond insurance, including coverage against special hazards The provider(s) of such insurance will be selected by the Corporation on the basis of the nature, extent and cost of the insurance and the degree of operational support provided by the insurer.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-1 § 1.7 QUALIFIED MORTGAGE LOANS

A.Mortgage Loan Terms. Mortgage Loans purchased by the Corporation shall comply with the terms of the Mortgage Purchase Agreement and any requirements set forth in any Program Bulletin. The Mortgage Purchase Agreement may contain provisions concerning the security for the loan, insurance, escrow payments, late charges, prepayment penalties, if any, deficiencies, defaults, priority of liens, maintenance of the Dwelling and such other terms and conditions as are customary to protect the interests of institutions engaged in making residential mortgage loans and as the Corporation may deem prudent to ensure compliance with the Act, the Tax Act and this Part. In addition, Mortgage Lenders shall comply with truth-in-lending, equal opportunity and other applicable state and federal laws and regulations. In order to ensure that the benefits of the Program are limited to eligible Borrowers, the Corporation may, in Mortgage Loan documents, establish limitations on the assumability of Mortgage Loans, prevent the assumption of Mortgage Loans, provide for acceleration in the event the Borrower ceases to use the Dwelling as a primary permanent residence, restrict the transfer of shares or membership certificates owned by members of a cooperative housing corporation and/or of real estate owned by a cooperative housing corporation receiving financing under this Part and require the recording of charges and restrictions on real estate securing a Mortgage Loan.

B.Right to Demand Explanation. Any person who is refused a Mortgage Loan by a Mortgage Lender may, in writing, demand a written explanation from the Mortgage Lender as to the specific reasons for the refusal. The Mortgage Lender shall comply with such demand within thirty (30) days after the date of receipt of such demand.

C.Interest Rate.

1.The interest rate on Qualified Mortgages for each Program shall be determined from time to time by the Board of Commissioners taking into consideration the cost of funds, prevailing market conditions, the need to provide funds to subsidize the interest rates for particular Mortgage Loans and the ability of Borrowers to make payments on Mortgage Loans applied for. The Corporation may also offer write-downs from the established interest rate for Qualified Mortgages made in Targeted Areas or to otherwise carry out the purposes of the Act.

2.In accordance with the terms of the Qualified Mortgage loan documents, where the Corporation has written down the interest rate on a Qualified Mortgage, the Corporation may require a Borrower to reimburse the Corporation for the difference between the write-down and the prevailing Program interest rate if the Dwelling is sold, conveyed or otherwise transferred within four (4) years after the Closing of the Mortgage Loan.

D.Amortization Period. Except to the extent provided in § 1.7(C) of this Part, each Qualified Mortgage shall amortize over such period of time or times as shall be determined by the Board of Commissioners.

E.Maximum Loan to Value Ratio. For each Program, the maximum principal amount of each Qualified Mortgage shall not exceed such percentages of the Fair Market Value of the improvements and real property securing the same as may be established by the Board of Commissioners and made available by Program bulletin.

F.Private Mortgage Insurance. The Corporation may require that Qualified Mortgages be the subject of a mortgage insurance policy issued by a private mortgage insurance company qualified to do business in the State and to provide insurance on mortgages purchased by the FNMA or the FHLMC. The required amount of private mortgage insurance coverage will be established by the Corporation from time to time in accordance with the requirements of its financial guarantees and as the Corporation determines prudent to protect its financial soundness. If required to protect the credit standing of the Corporation's obligations, the Corporation will establish a specific list of approved mortgage insurance companies. Alternatively, the Corporation may establish by itself or through any subsidiary or affiliated entity a program of self insurance on such terms and conditions as the Corporation may from time to time determine.

G.Pool and Portfolio Insurance. Depending upon the needs of its financial guarantees and the agencies rating the bonds of the Corporation issued pursuant to a Program, the Corporation may require that a Mortgage Loan be the subject of insurance pursuant to a mortgage pool insurance policy. Alternatively, the Corporation may by itself or through any subsidiary or affiliated entity insure its portfolio or use funds maintained in the Mortgage Lender's Reserve Account against risk of loss

H.Special Housing Assistance. The Corporation may in its discretion loan or grant to Borrowers in such amounts and on such terms and conditions as it shall determine, funds to be used by the Borrower for down payment assistance, legal expenses, recording fees, document preparation fees, origination or commitment fees, and title examination fees and title insurance.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-20-00-2 Mortgage Credit Certificate Program

825-RICR-20-00-2 § 2.1 PROGRAM EXPLANATION AND PURPOSES

Rhode Island Housing and Mortgage Finance Corporation has been designated with authority under the Tax Act to issue Mortgage Credit Certificates ("MCCs") to qualified Borrowers. Generally, MCCs entitle qualified Borrowers to a credit (the "Credit") against their Federal income tax as a percentage of the interest paid on a Mortgage Loan. Under current law, the amount of the Credit shall not exceed the amount of federal income tax paid by the Borrower in the year in which the Credit is taken, but Credits may be carried forward and offset against federal income taxes for a period of three (3) years. Borrowers will apply for Credits through participating Mortgage Lenders, and will be issued an MCC by the Corporation provided that the requirements of the Tax Act and MCC Program have been satisfied.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.2 CONSTRUCTION

A.Construction with Act. Unless otherwise defined herein or unless a different meaning is required from the context in which they are used herein or is required by the Tax Act, all words and terms used in these Regulations are as defined in the Act.

B.Definitions.

1."Act" means the Housing and Mortgage Finance Corporation Act set forth in R.I. Gen. Laws Chapter 42-55, as amended.

2."Aggregate Family Income" means the aggregate income, as defined by the Tax Act, of each Borrower and of anyone else in the Borrower's household required by the Tax Act to be considered in such calculation. Aggregate Family Income shall be calculated in accordance with the criteria and procedures established under the Tax Act.

3."Board of Commissioners" means the Board of Commissioners of the Corporation.

4."Borrower" means a person or persons satisfying the Eligibility Criteria set forth in § 2.4 of this Part and who satisfy(ies) the credit and underwriting criteria established by the Mortgage Lender to whom application for a Mortgage Loan is made and, is or are issued or apply(ies) for Credits.

5."Closing" means the date documents evidencing a Mortgage Loan are executed by the Borrower.

6."Corporation" means Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

7."Mortgage Credit Certificate" or "MCC" means a certificate issued by the Corporation entitling a Borrower to Credits. The form of MCC to be issued to Borrowers, and the terms and conditions contained therein, shall be as determined by the Tax Act.

8."Mortgage Lender" means an entity engaged in the business of mortgage lending which is qualified under § 2.6 of this Part to participate in the MCC Program.

9."Mortgage Loan" means a loan from a Mortgage Lender to a Borrower evidenced by a mortgage deed or other instrument. A Mortgage Loan also includes Qualified Home Improvement Loans, Qualified Rehabilitation Loans and any other loans qualifying under the Tax Act. Under the MCC Program, a Mortgage Loan may be made upon such terms and conditions as may be agreed to by a Borrower and Mortgage Lender.

10."MCC Participation Agreement” means a written contract between the Corporation and a Mortgage Lender which establishes the terms by which the Mortgage Lender will participate in the MCC Program.

11."MCC Program" means the Corporation's program of issuing Mortgage Credit Certificates to qualified Borrowers pursuant to these Regulations.

12."Program Bulletin" means a bulletin issued by the Corporation implementing a section or sections of this Part. A program manual shall constitute a Program Bulletin for purposes of these Regulations. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying from the hours of 9:00 a.m. – 5:00 p.m. on Mondays through Fridays, except holidays.

13."State" means the State of Rhode Island and Providence Plantations.

14."Tax Act" means the Internal Revenue Code of 1986, 26 U.S.C., as amended, the rules, revenue rulings and regulations promulgated or deemed to be promulgated thereunder as now in effect or as may be promulgated and from time to time amended, and any corresponding provision of prior to future federal tax laws that apply to the issuance of MCCs.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.3 PROCEDURES

A.Application Process. Applications for Credits shall be made by Borrowers with participating Mortgage Lenders, and will be considered by the Corporation on a first come first served basis. The Corporation will maintain and make available to the public a list of participating Mortgage Lenders as revised from time to time.

B.Reservation of Credits.

1.The Corporation will allocate Credits to Borrowers using a reservation system. At the time of application for a Mortgage Loan, each Mortgage Lender will make a preliminary determination as to whether the Borrower qualifies under the MCC Program. If it is initially determined that the Borrower so qualifies, the Mortgage Lender shall request the Corporation to reserve Credits for the Borrower in such manner as may be established by the Corporation from time to time. The Corporation will provide the Mortgage Lender written confirmation (the "Confirmation") of the reservation. Credits shall be reserved by the Corporation for a period of time, as may be established from time to time by Program Bulletin, after delivery of the Confirmation (the “Reservation Period”). The Mortgage Lender shall promptly notify the Corporation of any changes impacting Borrower’s eligibility under the MCC Program. The Corporation may cancel any reservation if the Closing does not occur during the Reservation Period, or if the Corporation determines that changed circumstances render the Borrower ineligible under the MCC Program.

2.The Mortgage Lender shall thereafter, but in any event at least five (5) business days prior to the Closing, promptly deliver to the Corporation such affidavits, documents, certifications, tax returns, employment information and other materials and data (the "MCC Document") as the Corporation may require to make an initial eligibility determination together with the non-refundable fee set forth in § 2.6(C) of this Part. An MCC shall be issued by the Corporation after receipt of documents, affidavits and certifications signed by the Borrower and/or the seller, as applicable, at the Closing which are required by the Corporation to evidence compliance with the Tax Act and MCC Program requirements.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.4 ELIGIBILITY CRITERIA

A.Tax Act and Program Requirements. The Property securing a Mortgage Loan shall be the Borrower's principal residence, and occupied by the Borrower within a reasonable time (e.g., sixty (60) days) after the Closing or completion of rehabilitation or improvements, as required by the Tax Act.

B.Income Limits. The Aggregate Family Income of Borrowers shall be established by the Corporation and made available by Program Bulletin from time to time, but shall not in any event exceed the Aggregate Family Income limits established pursuant to the Tax Act.

C.Limitation on Prior Homeownership. Except for Borrowers acquiring properties in Targeted Areas as defined in § 2.5 of this Part who are not subject to limitations on prior homeownership under the Tax Act, no Borrower shall be eligible for Credits if he or she has owned a principal residence within the three (3) year period prior to the Closing of the Mortgage Loan.

D.Qualified Properties. To be eligible under the MCC Program, a Borrower must be acquiring an existing or new single family residential dwelling and the property must be located in the State. A single family residential dwelling shall include a condominium unit and, if approved by the Corporation, a share in a qualified cooperative housing corporation or any other similar housing corporation. Two, three and four family residences that have been occupied as such for not less than five (5) years prior to Closing and are located in the State also shall constitute qualified properties.

E.Acquisition Cost Limits. The acquisition cost of qualified properties shall be established by the Corporation and made available by Program Bulletin from time to time, but shall not in any event exceed the acquisition cost limits established under the Tax Act.

F.Amount of Credit. Under the Tax Act, qualified Borrowers are entitled to a Credit, as established by the Corporation, in the amount of between ten (10%) percent and fifty percent (50%) of the interest paid on the Mortgage Loan each year during the loan term. Until revised by Program Bulletin, the amount of the Credit is hereby established at twenty percent (20%).

G.Non-Qualifying Loans. An MCC shall not be issued in connection with any loan made or acquired under any program established pursuant to the Rules and Regulations of the Corporation Applicable to the Mortgage Finance Programs as the same may be amended from time to time (the "Single Family Program Regulations') or, the refinancing of an existing mortgage loan, except as may be permitted by the Tax Act.

H.Documentation. Borrowers shall execute an affidavit or affidavits, in form satisfactory to the Corporation, evidencing an intent to occupy the residence within a reasonable time after the Closing as required by the Tax Act and, evidencing an intent to use and occupy the property as the Borrower's principal residence for the term of the Mortgage Loan. Borrowers and Mortgage Lenders shall also execute such other affidavits, documents, Treasury and other forms and certifications as may be required by the Corporation to evidence compliance with the Tax Act and the requirements of the MCC Program.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.5 TARGETED AREAS

Designation of Targeted Areas. The Corporation shall from time to time by Program Bulletin designate targeted areas ("Targeted Areas") for which income and acquisition cost limits may be different than for other areas of the State, and other MCC Program requirements may be waived by the Corporation by Program Bulletin, if the Tax Act so provides. Communities removed from Targeted Area designation, if any, shall also be designated by Program Bulletin.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.6 PARTICIPATION BY MORTGAGE LENDERS

A.Application by Mortgage Lender. To participate in the MCC Program, a lending institution shall submit an application to the Corporation (containing such information as the Corporation may establish by Program Bulletin) which may be obtained by writing or telephoning the Corporation at its principal office located at 44 Washington Street, Providence, Rhode Island 02903. If the application is approved, such institution shall enter into an MCC Participation Agreement in form prescribed by the Corporation which shall set forth procedures for the issuance of MCCs to Borrowers, reporting requirements and other obligations of the Mortgage Lender. All Mortgage Lenders approved by the Corporation under the Single Family Program Regulations prior to the effective date of these Regulations shall be deemed to be qualified as Mortgage Lenders under the MCC Program but shall be required to execute an MCC Participation Agreement should they elect to participate in the MCC Program.

B.Qualifications. To qualify as a Mortgage Lender, the institution must make residential mortgage loans in the regular, usual and ordinary course of business and must be an approved FNMA or FHLMC seller/servicer or otherwise be approved by the Corporation as having the capability and experience necessary to originate loans responsibly in furtherance of the purposes of the MCC Program.

C.Administrative Fees.

1.Each Mortgage Lender shall pay to the Corporation a non-refundable administrative fee in an amount established by Program Bulletin for each reservation of Credits. Such fee shall be submitted with the MCC Documents, and may be recovered by the Mortgage Lender from the Borrower at any time during the Mortgage Loan application process or at the closing.

2.In addition, each Mortgage Lender may collect a fee from Borrowers for its own account at the Closing to cover its own administrative costs. The amount of such fee shall not exceed an amount established by Program Bulletin. The fee may be collected at any time during the Mortgage Loan application process or at the Closing. The amount of the fees that may or shall be charged under the MCC Program may be increased or decreased by Program Bulletin from time to time.

3.Nothing contained in these Regulations shall be deemed to prohibit or limit a Mortgage Lender from charging application fees, appraisal fees, points and other fees customarily charged by financial institutions to borrowers applying for Mortgage Loans. The Corporation may charge Mortgage Lenders fees for participation in the MCC Program as established from time to time by Program Bulletin. Fees charged by the Corporation and by Mortgage Lenders in connection with the MCC Program may not exceed those allowable under the Tax Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

825-RICR-20-00-2 § 2.7 MISCELLANEOUS

A.Consistency with Tax Act. These Regulations are intended to be interpreted consistently with the provisions of the Tax Act. To the extent there is an inconsistency between these Regulations and the Tax Act, the provisions of the Tax Act shall control. Should any amendment to the Tax Act require amendment to any provision of these Regulations, such provision of these Regulations shall be deemed to have been amended upon the effective date of the amendment to the Tax Act without any further action on the part of the Corporation.

B.Termination of the MCC Program. The Board of Commissioners reserves the right to modify or terminate the MCC Program at any time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-05-06 to 01/04/2022
Amendment — effective from 2015-05-06 to 05/06/2015
Periodic Refile — effective from 2001-12-28 to 05/06/2015

Chapter 30 Rules Relative to Multifamily Loan Programs

Subchapter 00

825-RICR-30-00-1 Rental Housing Production and Rehabilitation Program

825-RICR-30-00-1 § 1.1 PROGRAM PURPOSES

A.Objectives of Program.

1.The Corporation has determined that there exists a compelling need to provide decent, safe and sanitary housing and assisted living facilities for persons and families of low and moderate income residing in the State of Rhode Island and long term affordability to the residents of such housing, and to prevent the loss of this State's existing supply of Federally Insured or Assisted Housing units and the displacement of Low Income Persons and Families arising as a result of the conversion of such housing to market rate rental properties and condominiums.

2.The Rental Housing Production and Rehabilitation Program (the "Program") offers financial incentives to Housing Sponsors that preserve, develop, construct, produce or rehabilitate Housing Developments.

3.This Part sets forth the criteria established by the Corporation to determine which Housing Developments will be eligible for various financing alternatives under the Program, and shall be construed and applied so as to accomplish the objectives of providing mortgage financing Housing Developments in the State of Rhode Island.

B.Income Targeting.

1.Under the Program, the Corporation will provide financing only to:

a.Developments occupied or to be occupied at least 20% by persons and families whose income is 50% or less of the Area Median Gross Income (the "20 50 Test") or

b.Developments occupied or to be occupied at least 40% by persons and families whose income is 60% or less of the Area Median Gross Income (the "40 60 Test") as those terms are defined in the Tax Act at 26 U.S.C. § 142(d) or

c.in the case of Assisted Living Facilities, Development occupied or to be occupied 100% by persons and families whose income is 110% or less of the Area Median Gross Income (the "100-110 Test").

2.To encourage the development and preservation of rental housing for Low Income Persons or Families, the Board of Commissioners has established a Targeted Loan Fund from which, subject to certain limitations, the Corporation will make below-market rate loans to Housing Sponsors.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.2 CONSTRUCTION OF RULES AND REGULATIONS

Construction with Act, Tax Act and Housing Trust Fund Legislation. Unless otherwise defined herein or unless a different meaning is required from the context in which they are used herein, all words and terms used in this Part are as defined in the Act, the Tax Act and the Housing Trust Fund Legislation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.3 DEFINITIONS

A."Act" means the Housing and Mortgage Finance Corporation Act more particularly set forth in R.I. Gen. Laws Chapter 42-55, as amended.

B."Affiliated Person of a Housing Sponsor" means:

1.if the Housing Sponsor is a Partnership, any individual or corporate general partner or any limited partner which has an ownership interest of 25% or greater;

2.if the Housing Sponsor is a joint venture, each joint venturer, the general partners thereof and each limited partner of each joint venturer which has an ownership interest of 25% or greater;

3.if the Housing Sponsor is a corporation, any officer, director or shareholder owning 10% or greater of the voting stock issued and outstanding; and

4.if the Housing Sponsor is a trust, any trustee thereof or a beneficiary with a 25% or greater interest therein.

5.An "Affiliated Person of a Housing Sponsor" shall also mean any shareholder of a corporate general partner or joint venturer of a Housing Sponsor owning 10% or greater of the voting stock issued and outstanding of such corporation.

C."Appraised Value" means the appraised value of a Development as determined by an independent certified real estate appraiser approved by the Corporation.

D."Assisted Living Facility" means a multiple unit residential rental development (including a designated wing or section of such development) located in the State of Rhode Island, to be acquired, constructed, developed and/or rehabilitated by a Housing Sponsor, offering room, board and Services for the frail elderly and other persons requiring assistance with activities of daily living, such as bathing, dressing, grooming, ambulating, eating, toileting or other similar tasks.

E."Board of Commissioners" or "Board" means the Board of Commissioners of the Corporation.

F."Corporation" means the Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

G."Deferred Maintenance" means needed maintenance of an ordinary or routine nature that could be, but has not been performed, which has a serious adverse effect on the use, value and/or useful life of the Housing Development. Deferred Maintenance, shall not include the failure to modernize equipment or fixtures in the Housing Development, if such equipment or fixtures are adequate to perform their intended function, and consistently operate as originally designed and installed, but in the case of Assisted Living Facilities, Deferred Maintenance does pertain to furniture, fixtures and equipment.

H."Development" or "Housing Development" means a multifamily residential housing complex consisting of Rental and Low Income Rental Units to be acquired, constructed, developed and/or rehabilitated by a Housing Sponsor. A Development may be a multifamily residential housing complex portions of which are located on non-contiguous parcels of land; provided, however, that all parcels shall be located in the State of Rhode Island and shall be within one (1) mile radius of each other and, provided, further, that for Developments financed with tax-exempt bonds, housing complexes on noncontiguous parcels must meet the applicable 20-50 Test or the 40-60 Test for each parcel. Notwithstanding the foregoing, a Development also may be a mobile or manufactured home park located in the State of Rhode Island which meets the applicable 20-50 Test or 40-60 Test or an Assisted Living Facility.

I."Economic Occupancy" means the gross rental income which would be received if the Housing Development were fully occupied.

J."Equity" means the Equity of the Housing Sponsor in the Housing Development calculated in accordance with the Act and this Part.

K."Existing Waiting List" means a list of eligible low and moderate income individuals or families who have applied to become tenants of the Housing Development upon the occurrence of a vacancy, which list is updated at least bi monthly and contains names of potential tenants to fill vacancies of units equal to at least one and one half (1.5) times the annual turn-over for the two (2) preceding years for the Housing Development.

L."Federally Insured or Assisted Housing" means any:

1.low income housing units insured or assisted under §§ 221(d)(3) and 236 of the National Housing Act (12 U.S.C. § 1701 et seq.);

2.low income housing units produced with assistance under Section 8 of the United States Housing Act of 1937 (42 U.S.C. § 1401 et seq.) and

3.rural low income housing financed under § 515 of the Housing Act of 1949 (12 U.S.C. § 1715z).

M."Funding Period" means any period during which the Corporation has requested and is reviewing Proposals for financing under the Program.

N."Housing Sponsor" means mutual housing associations, nonprofit housing development corporations, limited equity housing cooperatives (all as defined in the Housing Trust Fund Legislation and hereinafter referred to as "Mutual Housing Association," "Nonprofit Housing Development Corporations" and "Limited Equity Housing Cooperatives"), as well as corporations, individuals, joint ventures, partnerships, limited partnerships, trusts, firms, associations, or other legal entitles or any combination thereof, whether organized for profit or not, qualified to own, construct, acquire, develop, produce, preserve or rehabilitate a Development. With respect to applications for construction loans to be funded from the Corporation's reserves, a "Housing Sponsor" shall also include municipal or local governments located in the State of Rhode Island, the State of Rhode Island, and state, municipal, and local public housing development and redevelopment authorities, agencies and corporations lawfully created and located in the State of Rhode Island.

O."Housing Trust Fund Legislation" means R.I. Gen. Laws Chapter 42-55.1, as the same may be amended from time to time.

P."Low Income Persons or Families" means persons or families whose income does not exceed the applicable percentages of the Area Median Gross Income as defined in the Tax Act at 26 U.S.C. § 142(d) and, with respect to Assisted Living Facilities, also means persons or families whose income does not exceed the 100-110 Test. Statistical data relating to Area median Gross Income of Low Income Persons or Families shall be made available to Housing Sponsors by Program Bulletin from time to time.

Q."Low Income Rental Unit" means a Rental Unit which is rented or intended to be rented to Low Income Person or Families.

R."Major Repairs or Replacements" mean repairs or replacements to the Housing Development which the Corporation estimates in the aggregate to equal or exceed Three Thousand Dollars or such larger amount as may be determined from time to time by Program Bulletin.

S."Mortgage Loan" means a loan made or authorized by the Corporation to be made to a Housing Sponsor for the purpose of providing construction or permanent financing, or both, for a Development, upon the terms and conditions required by this Part. To the extent that a Mortgage Loan in the form of construction loan financing is provided from the Corporation's own reserves, permanent financing may be provided by a third party or parties.

T."Operating Expenses" means all expenses, costs and fees incurred in the operation and maintenance of a Housing Development.

U."Program Bulletin" means a bulletin issued by the Corporation implementing a section or sections of this Part. A Request for Proposals under § 1.5(A) of this Part may also constitute a Program Bulletin. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying during the Corporation's Regular Business Hours.

V."Proposal" means a written application for the acquisition, construction, development, production, rehabilitation or preservation of a Development seeking financing under the Program.

W."Rental Unit" means, except as provided in § 1.4(D) of this Part, a unit containing complete living, dining, cooking, sanitation and sleeping facilities to be rented to persons or families. For purposes in this Part, a Rental Unit also includes a space for a manufactured or mobile home, with appropriate water, utility and sanitation connections, located in a qualified mobile or manufactured home park.

X."Regular Business Hours" means between the hours of 9:00 a.m. - 5:00 p.m. on Mondays through Fridays, except holidays.

Y."Rhode Island Housing Trust Fund" or "Housing Trust Fund" means that certain fund created pursuant to the Housing Trust Fund Legislation, monies from which shall be used by the Corporation specifically for the purposes set forth in R.I. Gen. Laws § 42-55.1-3, as the same may be amended from time to time.

Z."Services" means, with respect to an Assisted Living Facility, those supportive services to be provided to the residents of such Development. Services required to be offered by an Assisted Living Facility shall be established by Program Bulletin and may include, among other, two meals per day; housekeeping, maintenance, and laundry services; medical monitoring; service coordination and case management; 24-hour emergency response; and assistance with personal care needs.

AA."Targeted Loan Fund" means those certain designated funds heretofore authorized by the Board of Commissioners, loans from which shall be made to encourage the development, construction and/or rehabilitation of Low Income Rental Units. The Board of Commissioners may at any time and from time to time supplement the Targeted Loan Fund with additional funds or withdraw funds previously committed to the Targeted Loan Fund.

BB."Targeted Loan Fund Loan" means a loan from the Corporation's Targeted Loan Fund. In no event, shall the principal amount of a Targeted Loan Fund Loan exceed such amount as the Corporation may establish from time to time.

CC."Tax Act" means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

DD."Total Development Cost" means the total cost of a Development, as approved by the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.4 DEVELOPMENTS ELIGIBLE FOR FINANCING.

A.Eligible Developments. To be eligible for financing under the Program, a Development shall:

1.be located within the State of Rhode Island;

2.be available to the general public;

3.except with respect to spaces in a mobile or manufactured home park, provide a permanent structure for year-round residential non-transient use served or to be served, in the opinion of the Corporation, by adequate storm, waste removal, telephone, gas, electricity and water service;

4.comply with applicable state and local building and health codes, the Corporation's design and construction criteria and guidelines (the "Design Guidelines"), and applicable requirements of the Tax Act;

5.comply with the Corporation's income targeting requirements set forth in § 1.1(B) of this Part;

6.except as provided below, be constructed on land which is not in a base flood elevation (100-year flood) ("Base Flood Elevation") as determined by the Corporation in accordance with the most current Flood Insurance Rate Map issued by the Federal Emergency Management Agency; and

7.comply with other applicable requirements of law, as they may be amended from time to time, including, but not limited to, for an Assisted Living Facility, obtaining a license from the Rhode Island Department of Health, if required.

B.Waiver by the Corporation as to Base Flood Elevation Requirement. If a Housing Sponsor seeks to construct a Development in a Base Flood Elevation, the Housing Sponsor must demonstrate to the Corporation's complete satisfaction that the location of the Development will not present an unreasonable risk of bodily injury or harm to the residents of the Development and the structural integrity of the Development will not be materially and adversely affected by its location in a Base Flood Elevation. The decision of the Corporation shall be binding and conclusive on the Housing Sponsor.

C.Developments Consisting of Fewer than Fifteen Rental Units. Unless the Corporation in its discretion determines that the financing of such Developments from the proceeds of its bonds is economically feasible, Developments otherwise complying with this Part that consist of less than fifteen (15) Rental Units shall be financed primarily from sources other than the Corporation. Such Developments, however, may be eligible for Corporation subsidies from the Targeted Loan Fund and the Housing Trust Fund, to the extent funds are available. Any loan or loans to such Developments shall be made upon such terms and conditions as the Corporation deems appropriate.

D.Rental Units. Each Rental Unit and Low Income Rental Unit (other than spaces in mobile and manufactured home parks) in a Development financed with the proceeds of bonds exempt from federal income taxation shall have complete facilities for living, sleeping, dining, cooking and sanitation. Notwithstanding the foregoing, Developments financed with the proceeds of taxable bonds, with Corporation reserve funds or monies from the Housing Trust Fund may, if approved by the Corporation, contain Single Room Occupancy Units ("SRO Units") which do not have complete self-contained facilities for living, sleeping, dining, cooking and sanitation. In addition to any other requirements contained in the Tax Act, each Low-Income Rental Unit shall be of the same size and construction and contain the same amenities of comparable non-Low Income Rental Units contained in the Development. Each Rental Unit, Low Income Rental Unit and SRO Unit shall be constructed in accordance with the Design Guidelines.

E. Rental Units for Use by the Handicapped. The Corporation may, in its discretion, on such terms and conditions as it may determine, loan to a Housing Sponsor up to an additional $5,000 of Targeted Loan Funds per Rental Unit or Low Income Rental Unit specifically equipped for use by a handicapped person or persons.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.5 APPLICATION PROCESS

A.Requests for Proposals. The Corporation will request Proposals from Housing Sponsors at such times as the Corporation may establish from time to time by Program Bulletin. With the approval of the Corporation, the review and approval of Proposals submitted during a particular Funding Period may be carried over into a future Funding Period or periods. Notwithstanding the foregoing, the Corporation will consider Proposals submitted at any time and from time to time after the expiration of a Funding Period to the extent that funds allocated to such period are still available, provided such Proposals otherwise comply with this Part.

B.Receipt of Proposals. Proposals may be submitted to the Corporation during Regular Business Hours. A Proposal shall be deemed received as of the date the Corporation determines that the Proposal contains the information necessary to conduct the Corporation's preliminary review.

C.Review of Proposals and Evaluation Criteria.

1.The Corporation seeks to maximize the availability of affordable rental housing in the State of Rhode Island and to use monies allocated for that purpose efficiently. Accordingly, the Corporation will give priority to Proposals which:

a.utilize other available funding resources such as Community Development Block Grants, Stuart McKinney Funds and other federal funds, foundation grants and grants of real estate by state and municipal governments and agencies;

b.request less than the maximum Targeted Loan Fund Loan allowable under this Part and Program Bulletins;

c.utilize the Tax Credit (defined in § 1.11 of this Part) in a cost-effective manner;

d.creatively respond to the needs of Low Income Persons or Families that are physically handicapped;

e.provide rental housing to families rather than individuals in furtherance of the Corporation's Program goals, recognizing that such a goal may not be applicable to Assisted Living Facilities;

f.are located in areas that do not have low income housing;

g.are competitive on a per unit development cost basis; and

h.contain extended long-term affordability provisions.

2.The Corporation reserves the right to amend, modify or supplement the priorities and evaluation criteria set forth herein from time to time by Program Bulletin.

D.Use of Forms; Contents of the Proposal.

1.The Corporation may from time to time designate, make available and require Housing Sponsors to use Corporation forms in connection with a Proposal. Housing Sponsors seeking financing under the Program shall submit to the Corporation the following information in triplicate:

a.The name, address and telephone number of the Housing Sponsor together with the name, title and telephone number of the individual(s) designated to correspond and communicate with the Corporation in connection with the Proposal;

b.Certified copies of the organizational documents of the Housing Sponsor including its enabling legislation, constitution, Articles of Association or Incorporation and by-laws, declaration of trust, partnership, limited partnership or joint venture agreement, as the case may be, together with all amendments thereto;

c.Credit reports of the general contractor and of each Affiliated Person of the Housing Sponsor;

d.Certified copies of resolutions of the Board of Directors, Trustees or other managing body of the Housing Sponsor authorizing the Development and the submission of the Proposal to the Corporation;

e.A copy of the most recently available audited annual financial statements of the Housing Sponsor prepared in accordance with generally accepted accounting principles consistently applied and duly certified by a licensed certified public accountant covering a period ending within twelve (12) months prior to the date submitted.

f.Personal financial statements of each Affiliated Person of the Housing Sponsor;

g.Detailed pro forma financial information of the Development including an operating budget which clearly sets forth, to the satisfaction of the Corporation, the sources and applications of Development funds;

h.A proposed construction timetable;

i.A disbursement schedule;

j.A construction cost breakdown;

k.A copy of the proposed development plans and specifications, including without limitation, the site plan, location map, soil and foundation investigation report and, if required by the Corporation, a structural report;

l.Copies of the Development survey and the surveyor's report;

m.Resumes of the Housing Sponsor, each Affiliated Person of the Housing Sponsor and of any architects, contractors, engineers and attorneys or other third parties on the development team setting forth all previous housing experience;

n.Copies of all market data collected by the Housing Sponsor, tenant selection plan, housing, management plan and questionnaire and evidence of compliance with federal and state fair housing, fair rental and landlord/tenant laws;

o.Evidence that the Development will comply with applicable zoning, building and fire codes and ordinances and will not be located in a wetland or flood hazard area;

p.Title report with respect to the Development evidencing good and marketable title;

q.A utility cost analysis together with certifications from authorities providing electricity, waste removal, water and heat as to their ability to provide such services to the Development;

r.With respect to Assisted Living Facilities, copies of all contracts for (or, if such contracts have not yet been entered into, the Housing Sponsor's plans for) the provision of Services to the Development, a lease-up/absorption analysis, and a copy of the license issued by the Rhode Island Department of Health with respect to the Development, if required;

s.Other information as shall in the discretion of the Corporation be required to establish that the requirements of the Tax Act have been satisfied; and

t.With respect to applications for construction loans funded from the Corporation's reserves, evidence satisfactory to the Corporation of a commitment or commitments for permanent financing.

2.In addition, the Corporation may require each Housing Sponsor to submit evidence of its ability to complete the Development in a timely manner. To the extent permitted by law, the Corporation may obtain or require additional background information respecting the character of the Housing Sponsor and any Affiliated Person of the Housing Sponsor.

3.The Corporation reserves the right to waive any of the foregoing requirements in any particular case, and to supplement any of the foregoing requirements from time to time by Program Bulletin. Any information or materials submitted must be in form and substance satisfactory to the Corporation in all respects. The Corporation shall, by Program Bulletin, establish a timetable for the submission of information required to be contained in a Proposal.

E.Review by Staff; Approval of Board of Commissioners.

Each Housing Sponsor shall submit the information and materials required by the Corporation to evaluate the Development. Upon receipt of those materials required by the Corporation to commence the review process, the Corporation shall notify the municipality where the Development is or will be located. Upon completion of its review, Corporation staff shall recommend to the Board of Commissioners, for either construction loan or permanent financing or both, those Developments which best satisfy the criteria set forth in § 1.5(C) of this Part hereof and are economically feasible.

F.Developments to be Financed with Bonds or Other Instruments of the Corporation.

1.Except as modified hereby, the procedures set forth in § 1.5(E) of this Part shall apply to Housing Sponsors seeking to finance Developments through the issuance of the Corporation's bonds or other debt instruments. Such Housing Sponsors shall submit the information and materials required by the Corporation to make an initial evaluation of the Development. If it shall initially approve the Development, the Board shall adopt a resolution evidencing the Corporation's intent to issue bonds or other instruments to finance the Development, if necessary. Notwithstanding the foregoing, the adoption of such resolution shall not constitute the Corporation's binding commitment to finance the Development.

2.Following the issuance of the resolution, Corporation staff shall meet with such Housing Sponsor to review further processing requirements and to obtain any further information and documentation not previously submitted. Upon satisfaction of such requirements and submission of the required documentation, staff shall make final recommendations to the Board to issue a commitment to such Housing Sponsor. The commitment may be conditioned on the Corporation's ability to issue bonds or other instruments at prevailing market rates and may contain such other terms and conditions as the Board of Commissioners may, in its sole discretion, deem appropriate. Upon satisfaction of the terms and conditions of the commitment within the time period contained therein, there shall be an initial closing (the "Initial Closing") for the development, construction and/or rehabilitation phase of the Development at which the parties will execute certain documents, instruments and agreements. After the development, construction and/or rehabilitation phase has been completed to the satisfaction of the Corporation, there shall be a finalization of the loan transaction (the "Final Closing").

G.Rejection. The Corporation shall advise any Housing Sponsor, in writing, that has been rejected under the Program.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.6 FEES

A.Application Fee. A non-refundable Application Fee shall be payable to the Corporation by a Housing Sponsor upon submission of a Proposal for initial review by staff. The Application Fee shall be established from time to time by Program Bulletin and may be reduced for non-profit Housing Sponsors.

B.Loan Submission Fee. Each Housing Sponsor shall pay to the Corporation a non-refundable Loan Submission Fee in an amount to be established from time to time by Program Bulletin upon submission of the information and documentation required by staff to complete the evaluation of the Proposal prior to final action by the Board of Commissioners.

C.Loan Origination Fee. Each Housing Sponsor shall pay to the Corporation at the Initial Loan Closing, a loan origination fee with respect to a Mortgage Loan or a Targeted Loan Fund Loan in an amount to be established from time to time by Program Bulletin.

D.Annual Servicing Fee. In addition to the interest charged on the Mortgage Loan at the rate established by the Corporation, each Housing Sponsor shall be required to pay to the Corporation an annual servicing fee based on percentages of the total initial principal indebtedness of the Housing Sponsor to the Corporation under the Program. The amount of such fee shall be .375% of such initial principal indebtedness where the same is $1,000,000 or less, .25% on the excess, if any, above $1,000,000 up to and including $4,000,000 and .125% on the excess, if any, above $4,000,000.

E.Increases or Decreases in Fees; Other Fees. The Corporation may in its discretion increase or decrease the amount of any fee set forth in §§ 1.6(A) through (D) of this Part by Program Bulletin, and require a Housing Sponsor to pay additional fees which have been charged to the Corporation by bond insurers and financial institutions providing credit enhancement for bonds issued to fund a Development or Developments under the Program or which otherwise arise as a result of bond financing or direct borrowing from the Federal National Mortgage Association and/or the Federal Home Loan Bank or for other appropriate purposes as may be established from time to time by Program Bulletin and applied uniformly.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.7 CERTAIN TERMS AND CONDITIONS OF LOANS; REQUIREMENTS AT INITIAL AND PERMANENT CLOSING.

A.Loan Term. The term of each Mortgage Loan shall be established by the Corporation on a case by case basis but shall not, in any event, exceed a date forty (40) years from the due date of the first payment which commences the permanent amortization of the Mortgage Loan.

B.Interest Rate. The interest rate on Mortgage Loans shall be established by the Corporation from time to time and made available by Program Bulletin.

C.Loan to Value Ratio. The total principal indebtedness, excluding Targeted Loan Indebtedness, of a Housing Sponsor to the Corporation on any Development at the Initial Loan Closing shall not exceed 90% of the Appraised Value of the Development. To the extent permitted by the Act, the Corporation may, on a case by case basis, allow the total principal indebtedness to exceed said amount.

D.Equity Contribution Requirement. Unless otherwise determined by the Corporation in accordance with the Act, no Development shall be considered for financing unless the Housing Sponsor shall have contributed equity to the Development equal to not less than 10% of the Total Development Cost. The equity requirement may be satisfied by a contribution in cash or real property from whatever source, including proceeds of a loan or loans, as long as such loan or loans are subordinated to the Corporation's mortgage(s); provided, however, that no equity contributions of real property shall satisfy this requirement unless the Corporation shall have received an appraisal satisfactory to the Corporation respecting the value of such real estate by a certified, independent real estate appraiser approved by the Corporation. The cost of such appraisal shall be borne by the Housing Sponsor.

E.Calculation of Equity. At the time the Corporation makes the final advance under the Mortgage Loan, the Corporation shall determine the Housing Sponsor's Equity in the Housing Development in accordance with the Act and shall provide the Housing Sponsor with written notice of the Equity established within sixty (60) days of the date of the final advance. Except as otherwise provided in § 1.8 of this Part, the Equity established shall remain constant during the term of the Mortgage Loan.

F.Limitation of Return on Equity. Each year, the return on equity contributed by a Housing Sponsor shall be limited to not more than the average yield per annum on thirty (30) year United States Treasury Bonds for the immediately preceding calendar year plus 5% unless a lesser return is specified in the regulatory agreement for the development.

G.Working Capital/Latent Defects Reserve. For mortgage loans to finance new construction or rehabilitation, the Corporation may require a Housing Sponsor to create under the control of the Corporation, by cash or by irrevocable letter of credit, a fund equal to 2.5% of the Mortgage Loan to cover any deficiency in the construction or rehabilitation of the Development. Such fund shall be retained by the Corporation for a period of 12 months after the Final Closing to cover latent defects in the construction improvements, operating deficiencies, repairs and cost increases resulting from change orders.

H.Residual Receipt Account. Income in excess of the permitted return on equity shall be maintained by the Corporation in a Residual Receipt Account or such other accounts as may be required by the Corporation to insure the continued affordability and financial stability of the Development. The Corporation may require funds in the Residual Receipt Account to be used for maintenance and repairs to the Development at any time or times prior to repayment of all amounts due the Corporation under the loan documents to ensure that the Development will be maintained and operated in a fair, decent, safe and sanitary manner. All funds remaining in the Residual Receipt Account shall be the property of the Housing Sponsor upon payment in full of all amounts due under the loan documents unless otherwise provided for in the loan documents.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.8 REDEFINITION OF EQUITY

A.Purpose. Recalculation of Equity is intended to provide a financial incentive for Housing Developers to maintain Housing Developments affordable to persons and families of low and moderate income.

B.Redefinition of Equity Calculation. The Corporation shall recalculate Equity for Housing Developments every five (5) years, or more frequently at the Corporation's discretion. Not less than fifteen (15) years from the date of the closing of the Mortgage Loan and following the expiration of each five (5) year period thereafter, a Housing Sponsor may request that the Corporation redefine the Equity for a Housing Development. All such requests shall be in writing on forms provided by the Corporation and addressed to the Corporation at the Corporate Office, Attention: Director of Housing Development.

C.Fee. Each Application for Redefinition of Equity shall be accompanied by a non-refundable fee in cash or by certified or bank check made payable to the Corporation in an amount equal to one half percent (1/2%) of the outstanding balance of all amounts due under the Mortgage Loan, which fee may be waived by the Corporation in writing in whole or in part, and will be considered an annual operating expense for the year in which it is paid. The Housing Sponsor shall submit to the Corporation all supporting documentation and information together with the Application as the Corporation may require.

D.Financial and Structural Condition Equity shall only be redefined for those Housing Developments determined by the Corporation to be in good condition, and to have healthy finances and reserves. Equity for a Housing Development shall be denied if the Corporation determines that:

1.Deferred Maintenance exists;

2.Major Repairs or Replacements to the Housing Development are anticipated or required for the coming year, which would reduce the reserve accounts below levels required by the Corporation;

3.Operating Expenses of the Housing Development have not been paid within thirty (30) days of the date on which they were due;

4.The Housing Sponsor has failed to consistently maintain an Operating Account for the Housing Development with a balance equal to or greater than one (1) month's total Operating Expenses;

5.The Housing Development has failed to sustain ninety-five percent (95%) or greater Economic Occupancy for each of the prior twenty-four (24) consecutive months;

6.The Housing Sponsor has failed to maintain an Existing Waiting List satisfactory to the Corporation;

7.Amounts due under the Mortgage Loan have been delinquent during the preceding twenty-four (24) month period;

8.Reserve account balances for the Housing Development are determined by the Corporation to be inadequate;

9.The Housing Sponsor fails to limit future rent increases for the Housing Development to the amount needed to pay all annual Operating Expenses (which expenses shall include return on equity and maintaining reserves at the greater of Five Thousand Dollars ($5,000) per unit or twenty percent (20%) of the outstanding principal balance of the Mortgage Loan), and to execute any and all agreements relating thereto as the Corporation shall deem necessary; or

10.With respect to Developments other than Assisted Living Facilities (as to which this subsection 10 shall not apply), The Housing Sponsor fails to agree to maintain each unit of the Housing Development as affordable to persons of low and moderate income for a minimum of twenty (20) years from the:

a.date of maturity of the Mortgage Loan, as the same may be amended from time to time, or

b.date on which the Housing Sponsor could prepay any mortgage securing the Housing Development or could elect not to renew a Section 8 assistance contract for any development as defined under R.I. Gen. Laws § 34-45-4, as amended, which prepayments or options not to renew may not occur without the prior consent of the Corporation.

E.Calculation of Redefined Equity. Redefined Equity shall be equal to the greater of:

1.the difference between the amount derived from a capitalization of the annual cash flow of a Housing Development determined in accordance with standard appraisal practices approved by the Corporation and the unpaid principal balance of any mortgage loans secured by a lien on the Housing Development; and

2.the difference between the fair market value of the Housing Development determined by the Corporation and the unpaid principal balance of any mortgage loans secured by a lien on the Housing Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.9 DOCUMENTATION

If the Proposal is approved by the Corporation and the Corporation's commitment is accepted by the Housing Sponsor, the Housing Sponsor shall enter into, execute, deliver and provide the Corporation with such documents, instruments and further assurances at the Initial Closing, Final Closing and thereafter as the Corporation deems necessary including, without limitation, a promissory note or notes secured by a mortgage or mortgages on the Development and/or evidencing a security interest in personal property, opinions of counsel to the Housing Sponsor, performance and payment bonds or letters of credit in lieu thereof if acceptable to the Corporation, cost certifications, assignments of construction, architectural and other contracts and rentals, assignments of contracts entered into in connection with the provision of Services for an Assisted Living Facility, and assignments of other contracts which the Corporation deems appropriate, secured or unsecured guarantees, a construction loan agreement and tax regulatory agreement, agreements respecting long term affordability of a Development and use of proceeds from the Targeted Loan Fund and Housing Trust Fund and letters of credit or other pledged cash to cover anticipated losses, if any, in meeting debt service coverage. Any agreement, construction loan agreement and/or related loan documents shall, as applicable, also require the Housing Sponsor to obtain title insurance and to obtain and maintain casualty, liability and builder's risk insurance on the Development in such amounts as the Corporation deems necessary, and may require the Housing Sponsor to hold the Corporation harmless from and against any and all liabilities and claims arising out of the Development. In addition, such agreement and related documents may contain other terms and conditions that the Corporation deems appropriate including, without limitation, provisions respecting the payment of taxes on the Development; provisions requiring a percentage of proceeds to be retained during the construction, development or rehabilitation periods; prepayment provisions, certification, reporting and monitoring requirements with respect to the continued use of Low Income Rental Units and the continuing use of the Development as a multifamily residential housing development; provisions respecting management of the Development; provisions relating to reserves and other operating funds; and the imposition of penalties and/or legal or equitable remedies, including foreclosure against the Development, available to the Corporation in the event of default, fraud or misrepresentation. In connection with Assisted Living Facilities, the Corporation may also require the Housing Sponsor to provide executed copies of all agreements for the provision of Services, all agreements with healthcare providers of all types, all agreements relating to federal and state funding and Medicare and similar programs, all agreements with senior services and social services providers and such other agreements or documentation as the Corporation shall deem to be appropriate.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.10 CONTINUING USE OF DEVELOPMENT AS MULTIFAMILY RENTAL HOUSING

A.Use as Rental Property. Each Development, other than Assisted Living Facilities financed under the Program shall continue to meet the 20 50 Test or the 40 60 Test during the qualified project period as such period is defined in the Tax Act at 26 U.S.C. § 142(d)(2). Each Assisted Living Facility financed under the Program shall continue to meet the 100-10 Test for a period of not less than fifteen years. Notwithstanding the foregoing, in the event that Targeted Loan Funds are utilized for an Assisted Living Facility, the period of affordability required for the units funded by Targeted Loan Funds shall be not less than 30 years, and, further, in the event that any other affordability restrictions apply as a result of other funding provided for a Development, those restrictions shall also apply.

B.Limited Commercial Use. Each Development financed with taxable bonds or Corporation reserve funds may, if approved by the Corporation, contain up to twenty-five percent (25%) of its total square footage, and with respect to Assisted Living Facilities, up to thirty-five percent (35%) of its total square footage, dedicated to commercial usage. The amount of commercial space in a Development finance with tax-exempt bonds shall not exceed applicable limitations in the Tax Act. No monies from the Housing Trust Fund shall be used for any purposes other than those purposes set forth in the Housing Trust Fund Legislation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.11 TAX CREDITS

Under the Tax Act, tax credits may be available to Housing Sponsors that acquire, construct, develop, produce or rehabilitate Developments that satisfy the low income targeting requirements set forth in the Tax Act at 26 U.S.C. § 42. Whether or not a multifamily housing development for rental to persons of low and moderate income is financed with funds of the Corporation, the Corporation shall have sole and exclusive authority to allocate tax credits among Housing Sponsors in accordance with the provisions of the Tax Act. The allocation of Tax Credits shall be determined in accordance with procedures established in separate Rules and Regulations of the Corporation, as the same may be amended from time to time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.12 EQUAL OPPORTUNITY AND AFFIRMATIVE ACTION POLICY

The Corporation actively encourages participation by minority and female owned businesses as owners, developers, contractors, suppliers, subcontractors, architects, engineers, management agents and other vendors participating in the Development. Housing Sponsors shall comply with the rules and regulations of the Corporation applicable to Equal Opportunity and Affirmative Action Procedures, Part 10-00-2 of this Title, as such rules and regulations may be amended from time to time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.13 FINANCING

The Corporation intends to issue bonds and other debt instruments to provide funds to finance Developments under the Program. Nothing in this Part is intended to limit the instruments which may be issued (whether taxable or nontaxable), or the manner in which the same may be secured or sold. Types of financing instruments may include, without limitation, construction loan notes, bond anticipation notes or bonds issued to provide either or both temporary or permanent financing. In addition to the foregoing, funds may be provided to finance Developments from Corporation reserves.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-1 § 1.14 SPECIAL PROVISIONS REGARDING CORPORATE GOVERNANCE OF MUTUAL HOUSING ASSOCIATIONS AND LIMITED EQUITY HOUSING COOPERATIVES

A.Pursuant to R.I. Gen. Laws § 42-55.1-3(b)(4) the Corporation hereby promulgates the following standards and requirements with respect to corporate governance of Mutual Housing Associations and Limited Equity Housing Cooperatives applying for financing under the Program. The Corporation may supplement such standards and requirements by Program Bulletin from time to time.

1.Mutual Housing Associations. Mutual Housing Associations shall be Rhode Island non-profit corporations, as defined in the Housing Trust Fund Legislation, organized under and subject to the provisions of the Rhode Island Non-Profit Corporation Act, as the same may be amended from time to time. Each Mutual Housing Association shall have as one of its corporate purposes the prevention and elimination of neighborhood deterioration and the preservation of neighborhood stability by affording community and resident involvement in the provision of high quality, long term housing for low and moderate income families. The Articles of Incorporation of each Mutual Housing Association seeking funding from the Corporation shall be subject to approval of the Corporation's Executive Director during the application process.

2.Limited Equity Housing Cooperatives. Limited Equity Housing Cooperatives shall be Rhode Island non-profit corporations, organized under and subject to the provisions of the Rhode Island Non-Profit Corporation Act and R.I. Gen. Laws § 7-6.1-1 et seq., as they may be amended from time to time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 Preservation of Existing Section 8-Assisted Housing Developments

825-RICR-30-00-2 § 2.1 DEFINITIONS

A."Additional Financing" means new or additional financing provided by the Corporation to some or all Applicants to be secured by a lien on the Housing Development.

B."Applicant" means Owner and Transferee, if any, submitting Preservation Applications pursuant to this Part.

C."Available Proceeds" means funds available for distribution as calculated by the Corporation pursuant to this Part.

D."Board of Commissioners" means the Board of Commissioners of the Corporation.

E."Closing Date" means the date on which Available Proceeds are distributed pursuant to this Part.

F."Corporation" means the Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the laws of the State of Rhode Island.

G."Executive Director" means the Executive Director of the Corporation.

H."Housing Assistance Payment Contracts" means housing assistance payment contracts executed pursuant to Section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437 et seq.

I."Housing Development" means a multi-family housing project which has been financed in whole or in part by the Corporation; is subject to a mortgage lien in favor of the Corporation as of the effective date of this Part; or receives rental subsidy payments pursuant to an existing Housing Assistance Payment Contract administered by the Corporation on the effective date of this Part.

J."HUD" means the Department of Housing and Urban Development of the United States of America.

K."Mortgage Loan" means the loan issued by the Corporation to finance the Housing Development in whole or in part.

L."Operating Account" means the funds of a Housing Development available to pay the costs of its day-to-day operations.

M."Operating Reserve Fund" means the existing Operating Reserve Fund maintained for the Housing Development on the Closing Date.

N."Owner" means the owner of a Housing Development, or a lessee of all or substantially all of a Housing Development.

O."Prepayment" means the prepayment of the entire or any portions of the outstanding balance of the Mortgage Loan, (whether or not, made in connection with a sale, conveyance, assignment or other transfer of the Housing Development,) and regardless of the source of funds for the prepayment, which under the terms of the Mortgage Loan or pursuant to applicable state or federal laws or rules or regulations, requires the prior approval of the Corporation.

P."Preservation Application" means an application submitted pursuant to this Part in connection with a distribution of Available Proceeds.

Q."Preservation Program" means the program established by this Part to maintain existing Housing Developments as affordable to persons and families of low income.

R."Preservation Trust" means a separate trust or other entity created and/or controlled by the Corporation to further the preservation and provision of low-income housing in the State of Rhode Island; the funds of which may, but need not be, used by the trustees thereof to provide financial assistance to a Housing Development, but in all instances may only be used in connection with the preservation or provision of housing in the State affordable to persons and families of low-income.

S."Program Bulletin" means any bulletin issued by the Corporation from time to time implementing the Preservation Program or resolving any ambiguity in this Part with respect to the Preservation Program. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying between the hours of 9:00 a.m. and 5:00 p.m. on Mondays through Fridays, except holidays.

T.“Replacement Reserve Fund” means the existing Replacement Reserve Fund (including the Painting and Decorating Reserve Account, if any) maintained for the Housing Development on the Closing Date.

U."Residual Receipts" means funds maintained in Residual Receipts accounts established by or at the direction of the Corporation for Housing Developments.

V."Tax Credits" means low income housing tax credits issued by the Corporation for a Housing Development pursuant to the Corporation's regulations applicable to the Allocation of Low Income Housing Tax Credits, as amended from time to time (the "Tax Credit Regulations").

W."Transfer" means a transfer of a Housing Development within the meaning of the Corporation's Regulations Governing Proposed Transfers, as amended from time to time (the "Transfer Regulations").

X."Transferee" means the individual or entity to which an Owner proposes to Transfer a Housing Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.2 SCOPE OF REGULATIONS

A.Purpose. The Preservation Program established under this Part is intended to provide Owners and Transferees with incentives to maintain Housing Developments as affordable housing for a period of forty (40) years beyond any current use restrictions for persons and families of low-income and to further the economic viability of such Housing Developments. This Part establishes certain procedures to obtain, and certain conditions for the grant of, the Corporation’s approval of Prepayments of Mortgage Loans, Additional Financing, distributions of Residual Receipts, and the allocation of Tax Credits, which are intended to further these objectives.

B.Applicability. An Owner or Transferee seeking the Corporation's approval of a Prepayment, Additional Financing, a distribution of Residual Receipts, or an allocation of Tax Credits shall fully comply with all provisions in this Part. To the extent that a Prepayment is to be effectuated in connection with a transfer of a Housing Development within the meaning of the Corporation's regulations governing Proposed Transfers; an application is submitted for financing to provide the funds for the Prepayment or Additional Financing pursuant to the Corporation's Rental Housing Production and Rehabilitation regulations (the "Rental Production Regulations"); an application for Tax Credits pursuant to the Tax Credit Regulations is submitted to the Corporation; and/or the proposed transactions are otherwise governed by other rules or regulations of the Corporation, the provisions of such regulations shall also apply to the proposed transaction. In the event that any provision of other rules and regulations of the Corporation conflicts with the provisions, the provisions in this Part shall control, unless otherwise deemed necessary by the Corporation to accomplish the purposes of all applicable rules and regulations.

C.Conformance with State and Federal Law. In addition to complying with the rules and regulations of the Corporation, Owners and Transferees must at all times comply with all applicable state and federal laws, rules and regulations, and must obtain all approvals and consents, and take all such other actions in connection with the proposed transactions as required by such laws, rules and regulations. Any provision of this Part which expressly conflicts with any state or federal law, or federal rule or regulation, as determined by the Corporation, shall be of no force or effect.

D.Modification or Waiver. The Corporation reserves the right to modify or waive any provision of this Part with respect to any Preservation Application if the Corporation, in its sole judgment, determines that such modification or waiver is consistent with and will further the purposes of this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.3 APPLICATION PROCEDURE

A.Generally. As provided herein, an Owner shall submit to the Corporation a Notice of Intent. The Corporation shall calculate and notify the Owner of the estimated Available Proceeds which would be distributable to the Owner and/or the Transferee from the Housing Development in the event of consummation of the proposed transactions identified in the Notice of Intent. If the Owner wishes to proceed with the proposed transactions, the Owner shall submit a Preservation Application to the Corporation (jointly with the Transferee, if any), on forms provided by the Corporation. One-half of the Available Proceeds shall be distributed to the Preservation Trust (as hereinafter defined) to be used to provide and maintain affordable housing for persons and families of low income within the State of Rhode Island. The Owner and/or Transferee, if any, shall receive the balance of the Available Proceeds. The Owner of Transferee shall agree to maintain the Housing Development as housing affordable to persons and families of low-income for a period of forty (40) years beyond any current use restrictions and to certain other restrictions designed to preserve affordable housing.

B.Notice of Intent.

1.Submission of Notice of Intent. The Owner shall submit to the Corporation a completed Notice of Intent together with the Processing Fee specified below, to notify the Corporation of the proposed transactions to which this Part applies. The Notice of Intent shall contain such provisions as the Corporation shall determine from time to time, including, without limitation, a description of the proposed transactions, specifying the Owner's current intention to retain or Transfer the Housing Development.

2.Documentation and Agreements. Simultaneously with the submission of the Notice of Intent (unless otherwise specified herein or agreed to by the Corporation), the Owner shall submit to the Corporation:

a.Certification of Authority. Evidence of corporate or partnership authority of the Owner and the officers or agents acting on Owner's behalf, satisfactory to the Corporation in form and substance and certified to by the appropriate officer or agent to be validly adopted and in full force and effect; and

b.Additional Documents. Such additional documents agreements and certificates as the Corporation may, from time to time, require.

C.Fees and Costs. Upon receipt of the Notice of Intent, the Corporation shall determine the cost of a Capital Needs Assessment and an Appraisal, if required by the Corporation, and notify the Owner of such costs in writing. The owner shall deliver to the Corporation within ten (10) days following the receipt of the cost disclosure, a certified check (or other method of payment acceptable to the Corporation) in the full amount of such costs. If the Owner fails to do so within such time period, the Corporation may disregard the Notice of Intent and retain the Processing Fee. If requested by the Corporation, the Owner shall provide the Corporation with the names and quotes of and assessors qualified to perform the Capital Needs and Appraisals. The Corporation may select any or entity it shall, in its sole discretion, deem whether or not included among those provided by the Owner and shall in no event be limited to selection based on quotes received.

D.Capital Needs Assessment. Following receipt of the required fees and costs, the Corporation shall cause a Capital Needs Assessment of the Housing Development to be completed by a qualified assessor satisfactory to the Corporation and in accordance with its instructions, the cost of which shall be payable by the Owner, but shall be deemed an allowable transaction cost for purposes of calculation of Available Proceeds. The Capital Needs Assessment shall detail the current and future capital improvements and rehabilitation necessary to rehabilitate the Housing Development and maintain it in good repair, as safe and sanitary residential housing, as well as the estimated costs thereof. After reviewing the Capital Needs Assessment, the Corporation shall determine the required capital improvements and rehabilitation and the estimated costs thereof (which costs shall constitute the minimum required initial contributions to the Rehabilitation Reserve Account as to current improvements and rehabilitation, and the Replacement Reserve Account as to future improvements and rehabilitation, both of which accounts are required by this Part.) In no event, shall the Corporation in any way be bound by the determinations made in the Capital Needs Assessment. In making this determination, the Corporation may consider any relevant information, including, without limitation, information submitted by Owners, tenants and governmental agencies.

E.Appraisal. If determined to be necessary by the Corporation and upon receipt of the required fees and costs by the Corporation, the Corporation shall cause an appraisal of the Housing Development to be completed by a qualified appraiser satisfactory to the Corporation. All fees and costs associated with the appraisal shall be paid by the Owner, but shall be deemed an allowable transaction cost in the calculation of Available Proceeds. The appraisal must be satisfactory to the Corporation in all respects and shall be conducted pursuant to its instructions as to form, substance and assumptions.

F.Processing Fee. The Owner shall pay to the Corporation a nonrefundable processing fee (the "Processing Fee") in an amount established by the Corporation from time to time by Program Bulletin, which fee shall in no event exceed Ten Thousand Dollars ($10,000.00). The Processing Fee shall be payable to the Corporation (or such other entity designated by the Corporation) solely from funds of the Owner and not from Housing Development funds in cash or by certified or bank check; provided that the Processing Fee shall be deemed an allowable transaction cost in the calculation of Available Proceeds. Notwithstanding any other provision herein contained, the Corporation may, at its option, agree to waive all or any portion of the Processing Fee. The Processing Fee paid shall be credited against all applicable application processing and loan submission fees to be paid by the Applicant to the Corporation pursuant to any other rules and regulation of the Corporation in connection with the proposed transactions listed in the Preservation Application.

G.Operating Needs Assessment. The Corporation shall assess the current and future operating expenses of the Housing Development. In making this assessment, the Corporation may consider any relevant information including, without limitation, information submitted by the Owner, residents of the Housing Development or any governmental agency. Owners shall provide the Corporation promptly with access to or copies of all records, documents and information requested by it in connection with such assessment.

H.Initial Determination of Available Proceeds.

1.Upon completion of the Capital Needs Assessment, the Appraisal (if any) and the Operating Needs Assessment, the Corporation shall make an initial estimate of Available Proceeds as of the date of determination, based on available information. In the case of proposed Additional Financing or other proposed financing, the Corporation shall estimate the Available Proceeds assuming conventional financing, as well as the issuance of taxable bonds and tax exempt bonds (including 501(c)(3) bonds) to fund such financings. The estimated Available Proceeds shall be calculated as of the date of determination as follows:

a.Total Funds. The Corporation shall estimate the sum of:

(1)the amount of funds in the Operating Account for the Housing Development in excess of that amount deemed necessary by the Corporation to satisfy the Housing Development's day to day operating costs for the balance of the calendar year;

(2)all revenue account balances for the Housing Development (including, without limitation, the balance of the Operating Reserve Fund and the Replacement Reserve Fund, but excluding all funds escrowed for the payment of taxes and insurance on the Housing Development);

(3)Residual Receipt Account balances for the Housing Development;

(4)an estimate of the proceeds of any Additional Financing or other proposed financing, if any, that is supportable under applicable underwriting criteria; and

(5)proceeds of the sale of Tax Credits, if any.

b.Available Proceeds. The following amounts shall be estimated as of the date of determination and shall be subtracted from the Total Funds to determine the estimated Available Proceeds:

(1)balance of all obligations constituting a lien on the Housing Development which are to be satisfied and discharged in connection with the proposed transactions listed in the Notice of Intent and/or Preservation Application;

(2)estimated amount of the initial deposit to the Rehabilitation Reserve Account;

(3)estimated amount of the initial deposit to the Replacement Reserve Account;

(4)estimated amount of the Preservation Operating Reserve Account Requirement (as herein defined);

(5)estimated amounts of all other required reserve account deposits; and

(6)estimated transaction costs to be paid from funds of the Housing Development (which shall be approved by the Corporation on a case by case basis).

2.The initial determination of Available Proceeds is an estimate and in no way binds the Corporation. The Corporation shall provide the Owner with a copy of the initial determination together with copies of the Operating Needs Assessment, the Capital Needs Assessment and the Appraisal (if any) (collectively, the "Assessment Material").

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.4 APPLICATION

A.Submission Deadline. Within one hundred and twenty (120) days from the date of receipt by the Owner of the Initial Determination of Available Proceeds, Applicant must submit a completed Preservation Application to the Corporation, together with all documentation, certificates and agreements as may be required by the Corporation. Applicants failing to do so within such period, unless otherwise agreed to by the Corporation in writing, must reinitiate the application process (including the payment of a Processing Fee). The Preservation Application shall in part specify the proposed transactions the Applicant wishes to pursue, which may be different from those originally identified in the Notice of Intent. The Preservation Application shall be submitted as part of any application to the Corporation for a Transfer, Additional Financing or Tax Credits, for a Housing Development, and all such applications shall be submitted to the Corporation together with a completed Preservation Application.

B.Required Documentation. Documentation to be submitted together with a completed Preservation Application shall include, but not be limited to:

1.information regarding the experience and qualifications of the Applicant as requested by the Corporation on a case by case basis;

2.any documentation or information necessary to update or correct the Assessment Material and certification by Applicant satisfactory to the Corporation of the accuracy of the Assessment Material, as supplemented or corrected;

3.certification by Applicant of the existence and continued validity of all necessary approvals, together with evidence thereof satisfactory to the Corporation; and

4.in the event that the Preservation Application is submitted together with an application under the Rental Production Regulations, the Transfer Regulations or the Tax Credit Regulations, any other documentation and information required by such regulations.

C.The Corporation shall attempt to notify Applicants within forty-five (45) days of submission of the Preservation Application of any identifiable deficiencies therein.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.5 CALCULATION AND DISTRIBUTION OF AVAILABLE PROCEEDS

A.Final Calculation and Distribution. The Corporation shall calculate the actual amount of the Available Proceeds in accordance with § 2.3(H) of this Part, as of the Closing Date. On the Closing Date, the Corporation shall distribute the Available Proceeds as follows:

1.An amount not to exceed the Operating Reserve Fund and the Replacement Reserve fund shall be distributed to the Applicant from Available Proceeds;

2.One-half of the balance of the Available Proceeds to the Applicant as specified in the Preservation Application; and

3.The balance to the Preservation Trust. The portion of the Available Proceeds distributed to the Preservation Trust may be deemed distributed first from Residual Receipt and reserve account funds included in the calculation of Available Proceeds, to the extent available.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.6 AFFORDABLE HOUSING RESTRICTION AGREEMENT

A.On the Closing Date, the Owner or Transferee, as applicable, shall enter into an Affordable Housing Restriction Agreement with the Corporation, in form and substance satisfactory to the Corporation, which shall, among other things, impose the following requirements and restrictions relating to the Housing Development income for a period of forty (40) years beyond any current use restrictions (the “Term”):

1.Tenant Income. During the term of or any extension or renewal of any Housing Assistance Payments Contracts applicable to the Housing Development tenant income restrictions required thereunder shall be complied with. Thereafter, all units of the Housing Development shall, except as set forth below, be rented only to tenants having aggregate family incomes which, on the date of commencement of the lease term do not exceed sixty percent (60%) of the Area Median Income as defined in 26 U.S.C. § 42(d) as amended from time to time and the rules and regulations promulgated thereunder (the “Median Family Income”). In the event any tenant assistance is made available to the Development during the term of the Affordable Housing Restriction Agreement the Development shall, to the extent economically feasible, endeavor to lease at least forty percent (40%) of the units to tenants with aggregate family income not in excess of forty percent (40%) of the Area Median Income. Notwithstanding the foregoing, in the event the Development is occupied exclusively by tenants of age 62 and older, and to the extent permitted under any federal regulations applicable to the Housing Development, the Owner may admit tenants with incomes up to eighty percent (80%) of the Area Median Income. The Owner of the Housing Development shall annually obtain certifications of tenants’ income and certify the same to the Corporation. All vacancies in the Housing Development shall be filled as expeditiously as possible with tenants whose incomes will insure compliance with this section. Nothing contained herein shall require the displacement of existing tenants of a Housing Development. Additionally, resident selection shall be conducted in accordance with the requirements of that certain Section 8-Resident Selection Plan (as applicable), contained in the consent order of the United States District Court for the District of Rhode Island entered on November 22, 1985 in the case of Martinez v. Rhode Island Housing and Mortgage Finance Corporation, C.A. No. 83-03193, which plan was submitted for public comment and re-adopted by the Corporation on February 18, 1987.

2.Tenant Contributions of Rental Charges. Tenant contributions of rental charges for each unit, including utility payments, shall not, after the expiration of any applicable Housing Assistance Payment Contracts, exceed the maximum tenant contribution in effect for the low income housing tax credit program established by § 42(g)(1)(B) of the Internal Revenue Code, or as determined by the Corporation from time to time by Program Bulletin in the event that the low income housing tax credit program established by § 42(d) of the Internal Revenue Code is terminated. Any permitted increases in tenant contributions of rental charges following expiration of any applicable Housing Assistance Payments Contracts shall be phased in under a transition schedule approved by the Corporation so as to minimize the financial burden on tenants residing at the Housing Development at the time of expiration of such Housing Assistance Payments Contracts.

3.Additional Subsidies. Owners and/or all Transferees of the Housing Development shall use best efforts to renew or extend the terms of any existing federal rental subsidies received for the Housing Development and to secure any available additional subsidies made available from time to time by the federal government, the State of Rhode Island or the municipality in which the Housing Development is located.

4.Reserve Accounts. The Owner shall maintain the following accounts for the Housing Development:

a.Operating Reserve Fund. An Operating Reserve Fund in an amount determined by the Corporation necessary to satisfy the future operating requirements of the Housing Development during the term of the Affordable Housing Restriction Agreement, taking into account, without limitation, the rent, transition and income provisions within the Affordable Housing Restriction Agreement and the anticipated net operating income of the Housing Development (the “Preservation Operating Reserve Fund Requirement”);

b.Replacement Reserve Account. A Replacement Reserve Account in an amount determined by the Corporation to satisfy the future capital needs of the Housing Development;

c.Rehabilitation Reserve Account. A Rehabilitation Reserve Account in an amount determined by the Corporation to satisfy the current capital needs of the Housing Development, which account shall only be maintained until the current needs are satisfied and the funds of the account are depleted accordingly; and

d.Other Reserve Accounts. Such other reserve accounts deemed necessary by the Corporation to insure the maintenance and financial viability of the Housing Development.

5.Asset Management Fee. Owners shall be eligible to receive an annual Asset Management Fee from available cash flow consistent with Program Bulletins issued from time to time. Payment of the Asset Management Fee shall not affect any property management fees paid to management agents for a Housing Development.

6.Return on Equity/Surplus Funds.

a.Distribution of Surplus Cash. One-half of any Surplus Cash of the Housing Development at the end of each calendar may be distributed to the Owner up to the amount of the Approved Return on Equity as defined below. The balance of Surplus Cash shall be distributed to and become the sole property of the Preservation Trust. Notwithstanding the foregoing, the Corporation may, as to a specific Housing Development and in its sole discretion, allow the Owner and/or the Transferee to retain ownership of all of a portion of the Surplus Cash upon the condition that the owner pays the Preservation Trust a preservation fee from the Surplus Cash during and after the remaining term of any applicable Housing Assistance Payments Contract; provided, however, that in no event shall the amount of such preservation fee be less than one-half of the present value of the estimated Surplus cash to be generated by the Housing Development during the remaining term of any applicable Housing Assistance Payments Contract, as determined by the Corporation. In the event that the Available Proceeds for any specific Preservation transaction includes funds made available in whole or part as a result of the sale of Tax Credits, the minimum preservation fee, in the Corporation’s sole discretion, may be increased by up to one-half of the amount of such proceeds and may be paid from such proceeds. Such preservation fee may be evidenced by promissory notes of the Owner or Transferee.

b.Return on Equity. Owners shall be eligible to receive an annual return on equity in an amount approved by the Corporation and not to exceed six percent (6%) (“Approved Return on Equity”), which shall be paid from Surplus Cash as described above. Owners’ equity in the Housing Development will be established at the Closing in accordance with Program Bulletins issued from time to time. Owners are entitled to an Approved Return on Equity only to the extent that funds remain in the Operating Account of the Housing Development after payment of mortgage debt service, operating expenses, reserve deposits and the Asset Management Fee, such funds to be known as Surplus Cash. In the event that sufficient Surplus Cash is not available to pay the Approved Return on Equity in any one year, the balance shall not accrue and the Owner shall not be entitled to that portion of the Approved Return on Equity for that year.

B.Binding Effect. The Affordable Housing Restriction Agreement shall run with the land, constitute a lien on the Housing Development for all obligations of the Owner thereunder and shall bind all permitted successors and assigns of the Owner.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 § 2.7 TERMINATION OR SUSPENSION OF THE PRESERVATION PROGRAM.

The Corporation may terminate or suspend the Preservation Program at any time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-2 Preservation of Existing Section 8-Assisted Housing Developments

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-3 Proposed Prepayments or Transfers

825-RICR-30-00-3 § 3.1 DEFINITIONS

A."Board of Commissioners" means the Board of Commissioners of the Corporation.

B."Corporation" means the Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the laws of the State of Rhode Island.

C."Executive Director" means the Executive Director of the Corporation.

D."Housing development" means a multi-family housing project which has been financed in whole or in part by the Corporation and which is subject to a mortgage lien in favor of the Corporation.

E."Housing development improvement plan" means a plan submitted to the Corporation by the Owner and/or the Proposed Transferee to improve a Housing Development.

F."HUD" means the Department of Housing and Urban Development of the United States of America.

G."Mortgage loan" means the loan issued by the Corporation to finance the Housing Development in whole or in part.

H."Owner" means the owner of a Housing Development, or a lessee of all or substantially all of a Housing Development.

I."Preliminary approval letter" means a letter sent by the Corporation to an Owner stating that the Board of Commissioners has preliminarily approved a Transfer or Prepayment.

J."Prepayment" means a payment of the entire outstanding principal balance of the Mortgage Loan made at any time during the term of the Mortgage Loan prior to the date on which such principal would be due and payable thereunder; provided that a prepayment of principal of a Mortgage Loan made pursuant to the Corporation's Preservation Program established under the regulations governing Preservation of Section 8-Assisted Developments (as set forth in Part 2 of this Subchapter) shall not constitute a Prepayment hereunder.

K."Principal" means, with respect to an Owner or Proposed Transferee:

1.if a Partnership, any individual or corporate general partner or any limited partner which has an ownership interest of twenty-five percent (25%) or greater,

2.if a corporation, any officer, director or shareholder owning ten percent (10%) or more of the voting stock issued and outstanding and

3.if a trust, any trustee thereof or a beneficiary with a twenty-five percent (25%) or greater interest therein.

L."Proposed transferee" means an individual, general partnership, limited partnership, corporation, trust or other entity seeking to either acquire, purchase or lease all or substantially all of a Housing Development or acquire or purchase a Substantial Interest in an Owner.

M."Substantial interest" means:

1.if the Owner is a general partnership or a limited partnership, a general partnership interest or a twenty-five percent (25%) or greater limited partnership interest individually or in the aggregate;

2.if the Owner is a corporation or if the Owner is a general or limited partnership which has a corporation as its general partner, a ten percent (10%) or greater interest in the corporation's issued and outstanding voting stock; or

3.if the Owner is a Trust, a twenty-five percent (25%) or greater beneficial interest therein.

N."Transfer" means a transfer to which these regulations apply as set forth in § 3.2(A) of this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Technical Revision — effective from 2001-12-28 to 12/28/2001
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-3 § 3.2 SCOPE OF REGULATIONS

A.Transfers to which these regulations apply.

1.A Transfer is deemed to take place, and these regulations apply, upon the occurrence of any of the following events:

a.A sale, conveyance, assignment or transfer of:

(1)A Housing Development;

(2)The right to receive rents or profits from a Housing Development; or

(3)A Substantial Interest in an Owner.

b.A change in the legal form of an Owner; or

c.The death or withdrawal of a general partner of an Owner.

B.Prepayments to which these regulations apply. Prepayment of the entire outstanding balance of the Mortgage Loan, whether or not made in connection with a sale, conveyance, assignment or other transfer of the Housing Development.

C.Exception. The occurrence of an event specified in §§ 3.2(A)(1)(a) through (c) of this Part, within one year following the date of closing of the Mortgage Loan shall not constitute a Transfer if such event was expressly disclosed in the application for the Mortgage Loan and was expressly consented to in writing by the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Technical Revision — effective from 2001-12-28 to 12/28/2001
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-3 § 3.3 APPROVAL CRITERIA

A.Review Standards.

1.The Application for a Transfer will be evaluated on the basis of the following standards:

a.The Proposed Transferee and its Principals shall provide evidence satisfactory to the Corporation with respect to the requisite experience, ability, moral character and financial resources of the Proposed Transferee and its Principals.

b.Neither the Proposed Transferee nor any Principal of the Proposed Transferee shall have been convicted of a felony.

c.Neither the Proposed Transferee nor any Principal of the Proposed Transferee shall have been suspended, debarred or otherwise restricted by any department or agency of the federal government or of a state government from doing business with such department or agency at any time within the five-year period preceding the date of the Application for Approval of Transfer.

d.The physical condition of the Housing Development must be acceptable to the Corporation. The Owner and Proposed Transferee shall establish that all physical improvements, repairs and maintenance which are necessary for approval of the Housing Development Improvement Plan have been completed in accordance with the Corporation's requirements. The Corporation may require that a Capital Needs Assessment in form and substance satisfactory to the Corporation be completed at the Owner's expense by a qualified assessor approved by the Corporation.

e.The financial condition of the Housing Development must be acceptable to the Corporation. All mortgage arrearages, operating deficits or reserve delinquencies shall be brought up to date, and the parties shall demonstrate to the Corporation's satisfaction that rents will be maintained at a level appropriate to the tenant population which the Housing Development is intended to serve, such that no material escalation of rents shall result from the transfer.

f.The Corporation must be fully satisfied with the property management of the Housing Development or the proposed management agent where a change in management is proposed.

2.The Application for a Prepayment will be evaluated on the basis of the following standards:

a.The physical condition of the Housing Development must be acceptable to the Corporation. The Owner shall establish that all physical improvements, repairs and maintenance which are necessary for approval of the Housing Development Improvement Plan have been completed in accordance with the Corporation's requirements. The Corporation may require that a Capital Needs Assessment in form and substance satisfactory to the Corporation be completed at the Owner's expense by a qualified assessor approved by the Corporation.

b.The financial condition of the Housing Development must be acceptable to the Corporation. All mortgage arrearages, operating deficits o reserve delinquencies shall be brought up to date, and the parties shall demonstrate to the Corporation's satisfaction that rents will be maintained at a level appropriate to the tenant population which the Housing Development is intended to serve, such that no material escalation of rents shall result from the Prepayment; and

c.The Corporation must be fully satisfied with the property management of the Housing Development or the proposed management agent where a change in management is proposed.

B.Change of Proposed Transferee for Transfer of Assets.

1.The Owner shall promptly notify the corporation in writing of a change in a Proposed Transferee identified in an Application for Transfer of Assets. A change in the Proposed Transferee shall include but shall not be limited to, the following events:

a.A sale, conveyance, assignment or transfer of a Substantial Interest in a Proposed Transferee;

b.A change in the legal form of a Proposed Transferee; or

c.The death or withdrawal of a general partner of a Proposed Transferee.

2.The Owner shall submit a new Application and supporting documentation upon a change of the Proposed Transferee. Any change in a Proposed Transferee shall require the payment of an additional Processing Fee and Transfer Fee, as herein defined, and shall require a complete review of the new Application and supporting documentation.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Technical Revision — effective from 2001-12-28 to 12/28/2001
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-3 § 3.4 PROCEDURES FOR APPROVAL

A.Generally. The approval process involves three phases. In Phase 1, the Owner and the Proposed Transferee shall submit to the Corporation a summary of the Proposed Transfer or Prepayment and may request a meeting to discuss the Transfer or Prepayment procedure. In Phase 2, the Owner and the Proposed Transferee shall submit to the Corporation an Application for Approval of the Transfer or Prepayment, including all appropriate documentation, together with the Processing Fee, Transfer Fee or Prepayment Fee all of which are defined in this Part. In Phase 3, after the Corporation has preliminarily approved the Transfer or Prepayment, the Owner and the Proposed Transferee have 30 working days to close the transaction including executing, delivering and recording documents, submitting final documents and certain other materials to the Corporation, and providing evidence that all conditions to the Transfer or Prepayment imposed by the Corporation have been satisfied. No proposed Transfer shall be approved by the Corporation unless agreed to in writing by all holders of liens on the Housing Development senior to that lien granted the Corporation on the Housing Development as security for the Mortgage Loan.

B.Phase 1. To initiate a Transfer or Prepayment, the Owner and the Proposed Transferee shall submit to the Executive Director three (3) copies of the information required below and may request in writing a meeting with the Corporation to discuss the proposed transaction:

1.The name of the Proposed Transferee together with the names and residence addresses of all Principals of the Proposed Transferee and a brief description of their experience in multi-family housing projects;

2.An outline of the structure of the proposed Transfer or Prepayment; and

3.An inspection and cost analysis report prepared and certified to by an appropriately licensed architect or engineer appropriately licensed architect or engineer satisfactory to the Corporation, describing the present physical condition of the Housing Development and all needed repairs.

C.Phase 2. The Owner and the Proposed Transferee shall, within 30 working days after the initial meeting with the Corporation, submit to the Executive Director in triplicate an Application for Approval of Transfer or Prepayment. The Application shall be in such form as the Corporation may from time to time prescribe but shall at a minimum contain the following information or shall be accompanied by additional documentation setting forth the following information:

1.For Transfers:

a.The name, address and telephone number of the Proposed Transferee and its Principals;

b.The most recent federal income tax return(s) of the Proposed Transferee and its Principals and, if the Proposed Transferee is a partnership or corporation, its most recent audited financial statement(s) or, if the Proposed Transferee is an individual, a personal financial statement setting forth all assets and liabilities;

c.Copies of all agreements and contracts which have been entered into or copies of draft agreements to be entered into by the Owner and the Proposed Transferee in connection with the Transfer. The agreement between the Owner and the Proposed Transferee setting forth the terms and conditions of the Transfer shall provide that "The transfer is subject to approval by Rhode Island Housing and Mortgage Finance Corporation";

d.Copies of the organizational documents of the Proposed Transferee (i.e., if a limited partnership, the Partnership Agreement and Certificate of Limited Partnership; if a corporation, the Articles of Incorporation and by-laws; and if a foreign corporation or foreign limited partnership, the Certificate of Authority in addition to the Partnership Agreement and Certificate of Limited Partnership or Articles of Incorporation and by-laws as appropriate);

e.A thorough fully documented explanation of all financial matters relating to the Transfer, including, without limitation, schedules setting forth the consideration to be paid, contributions to be made and fees of any kind. Where partnership interests are being sold in connection with the Transfer the schedules shall include, without limitation, the expected amount and timing of the payments by the Proposed Transferee and the ultimate disposition and recipients of such funds;

f.The Housing Development Improvement Plan, including estimated costs, timetables for implementation and information on sources of funds;

g.An appraisal of the Housing Development certified by an independent appraiser satisfactory to the Corporation (the "Appraisal"). The Appraisal must be the same as is used by the Owner and by the Proposed Transferee for all other purposes in connection with the Housing Development, and must be satisfactory to the Corporation in all respects. The cost of the Appraisal shall be borne by the Owner or the Proposed Transferee;

h.A Form HUD-2530 executed by the Proposed Transferee and each Principal of the Proposed Transferee;

i.Evidence of corporate or partnership authority, as appropriate, of the Owner or Mortgage Loan Applicant, the Proposed Transferee, and the officers or agents acting on their behalf to enter into the Transfer;

j.The name and a description of the management agent after the Transfer;

k.A non-refundable processing fee (the "Processing Fee") in the amount of One Thousand Five Hundred Dollars ($1,500.00) plus a transfer fee (the "Transfer Fee") equal to one percent (1%) of the higher of the original replacement cost of the Housing Development as determined at the time of initial closing of the Mortgage Loan, and its current appraised value set forth in the Appraisal; provided, however, that if the Transfer is due to the death of a general partner of the Owner, the Corporation shall only require payment of the Processing Fee. The Transfer Fee (but not the Processing Fee) shall be refunded to the Owner within 20 working days after the expiration of the Review Period as that term is defined in this Part or any extension thereof in the event the Application is denied by the Corporation. The Transfer Fee shall otherwise be non-refundable. The Processing Fee and the Transfer Fee shall be payable to the Corporation in cash or be certified or bank check. Neither the Processing Fee nor the Transfer Fee shall be paid from Housing Development funds. Notwithstanding any other provision herein contained:

(1)the Corporation may, at its option, agree to waive a portion of the Processing Fee and/or Transfer Fee in the event that the Proposed Transferee executes an agreement in form and substance satisfactory to the Corporation providing that units of the Housing Development shall be maintained as housing affordable to and occupied by low income individuals and families for a period in excess of the Restriction Period defined in § 3.4(C)(1)(n) of this Part, and

(2)in the event of a sale of the Housing Development no Processing Fee or Transfer Fee shall be due hereunder if the Proposed Transferee has submitted a complete application to the Corporation for financing of the acquisition of the Housing Development and has paid all applicable application, processing and loan submission fees associated therewith;

l.A draft opinion of counsel in form and substance satisfactory to the Corporation establishing that the Proposed Transfer, when completed, will have been legally consummated, that the Proposed Transferee will be legally bound by the terms of the Corporation's loan documents, including the mortgage, regulatory agreement and housing assistance payments contract;

m.A preliminary report on title to the Housing Development satisfactory to the Corporation;

n.An agreement in form and substance satisfactory to the Corporation signed by the Proposed Transferee affirming that the Proposed Transferee shall maintain the Housing Development as housing affordable to and occupied by low and moderate income individuals and families ("Affordable Housing Preservation") for a period equal to the greater of 25 years from the date of the Housing Assistance Payments Contracts relating to the Housing Development, and the original term of the Mortgage Loan or any extensions thereof (the “Restriction Period”); and

2.For Prepayments:

a.A thorough fully-documented explanation of all financial matters relating to the Prepayment, including, without limitation, schedules setting forth the consideration to be paid, contributions to be made and fees of any kind;

b.The Housing Development Improvements Plan, including estimated costs, timetables for implementation and information on sources of funds;

c.An appraisal of the Housing Development certified by an independent appraiser satisfactory to the Corporation (the "Appraisal"). The Appraisal must be the same as is used by the Owner for all other purposes in connection with the Housing Development, and must be satisfactory to the Corporation in all respects. The cost of the Appraisal shall be borne by the Owner;

d.Evidence of corporate or partnership authority, as appropriate, of the Owner, and the officers or agents acting on the Owner's behalf to effectuate the Prepayment;

e.The name and a description of the management agent after the Prepayment;

f.A non-refundable processing fee (the "Processing Fee") in the amount of One Thousand Five Hundred Dollars ($1,500.00) plus a prepayment fee (the "Prepayment Fee") equal to one percent (1%) of the higher of the original replacement cost of the Housing Development as determined at the time of initial closing of the Mortgage Loan, and its current appraised value set forth in the Appraisal; provided, however, that the Processing Fee and Prepayment Fee shall not exceed any restrictions thereon under the terms of the Mortgage Loan. The Prepayment Fee (but not the Processing Fee) shall be refunded to the Owner within 20 working days after the expiration of the Review Period as that term is defined in this Part or any extension thereof in the event the Application is denied by the Corporation. The Prepayment Fee shall otherwise be non-refundable. The Processing Fee and the Prepayment Fee shall be payable to the Corporation in cash or be certified or bank check. Neither the Processing Fee nor the Prepayment Fee shall be paid from Housing Development funds. Notwithstanding any other provision herein contained, the Corporation may, at its option, agree to waive a portion of the Processing Fee and/or Prepayment Fee in the event that the Owner executes an agreement in form and substance satisfactory to the Corporation providing that units of the Housing Development shall be maintained as housing affordable to and occupied by low income individuals and families for a period in excess of the Restriction Period;

g.A Prepayment Regulatory Agreement in form and substance satisfactory to the Corporation which in part shall contain an agreement by the Owner that the Affordable Housing Restriction shall be maintained on the Housing Development for at least the balance of the original term of the Mortgage Loan and such other restrictions and provisions as deemed necessary or advisable by the Corporation to insure that no material escalation in rents will occur for the Housing Development during the original term of the Mortgage Loan, and authorizing the Corporation to operate the Housing Development in the event of any violation of the Prepayment Regulatory Agreement until such violation is rectified;

h.A preliminary report on title to the Housing Development satisfactory to the Corporation;

i.A draft opinion of counsel in form and substance satisfactory to the Corporation establishing that the Prepayment, when completed, will have been legally consummated, that the Prepayment has been duly authorized by the Owner and that the Prepayment Regulatory Agreement has been duly authorized, execute and delivered and constitutes the legal, valid and binding obligation of the Owner enforceable against the Owner in accordance with its terms; and

j.An affidavit of Owner in form and substance satisfactory to the Corporation as to the ownership of the Housing Development before and after the proposed Prepayment.

3.The Corporation shall inspect the Housing Development within 20 working days after receipt of an Application, and shall complete its review of the Application and supporting documents within 60 working days after receipt (the "Review Period"), provided however, that the Corporation may extend the Review Period by written notice to the Owner and Proposed Transferee. The Corporation may at any time prior to Preliminary approval request either the Owner or the Proposed Transferee to submit supplementary or explanatory material for clarification of the Application. Staff of the Corporation shall review the Application and shall either deny the Transfer or Prepayment, or submit a recommendation to the Board of Commissioners for approval or the application, which shall preliminarily approve the Transfer or Prepayment, or preliminarily approve the Transfer or Prepayment subject to certain conditions (which conditions may include modifications to the Housing Development Improvement Plan).

D.Phase 3

1.Not more than 30 working days after the date of the Preliminary Approval or within such other period as the Corporation and Owner may agree, the Owner and the Proposed Transferee shall close the Transfer, or the Owner shall complete the Prepayment (as the case may be) at which time final approval shall be given by the Corporation if the following requirements and any additional requirements specified in the Preliminary Approval Letter are satisfied. The final approval shall be given by the Corporation if the following requirements and any additional requirements specified in the Preliminary Approval Letter are satisfied. The Corporation must have received written notice by the Owner of the date, time and place of closing not later than 5 working days prior thereto. At the closing, the Owner and the Proposed Transferee, if any, shall:

a.Execute, deliver and record, as appropriate, all documents submitted in support of the Application, with such changes as the Corporation may require as set forth in the Preliminary Approval Letter;

b.Submit to the Corporation an interim financial statement of the Owner which covers the period between the date of the Application and the date of Transfer or Prepayment together with a balance sheet of the Proposed Transferee as of the date of Transfer;

c.Submit a title policy endorsement to title certificate showing title in the Proposed Transferee subject only to the Corporation's interest in the Housing Development and other exceptions agreed to by the Corporation;

d.Submit an executed opinion of counsel in form and substance satisfactory to the Corporation establishing that the Transfer or Prepayment has been legally consummated and that the Proposed Transferee is legally bound by the terms of the Corporation's loan documents including the mortgage, regulatory agreement and housing assistance payments contract, or that the Owner is legally bound by the terms of the Prepayment Regulatory Agreement;

e.Submit evidence to the Corporation that all conditions set forth in the Preliminary Approval Letter have been satisfied;

f.Pay any legal fees of the Corporation incurred in connection with the Transfer or Prepayment (to the extent permitted under the terms of the Mortgage Loan) in excess of One Thousand Five Hundred Dollars ($1,500.00). Payment of the additional legal fees of the Corporation, if any, shall be made in cash or by certified or bank check and shall not be paid from Housing Development funds; and

g.Complete all other actions required to consummate the Transfer or Prepayment.

2.Failure to submit any item, document or payment required by the foregoing section at the closing may result in the revocation of preliminary approval and shall result in the forfeiture of the Transfer Fee or Prepayment Fee. Additionally, the Corporation shall have such other remedies as are available to it at law or in equity.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Technical Revision — effective from 2001-12-28 to 12/28/2001
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-3 § 3.5 INCORPORATION OF CERTAIN PROVISIONS IN DOCUMENTS

A.Deferred purchase payments in the form of a debt owed by the Proposed Transferee in connection with the Transfer (other than that attributable to the Corporation's mortgage loan) shall be permitted only to the extent they are allowable under applicable bond resolutions and related documents and to the extent they do not jeopardize the Corporation's security or conflict with its legal or programmatic interests. All documents relating to deferred purchase payments, such as the Purchase and Sale Agreement, the contract of sale, debt instrument and security instrument, shall incorporate the following or substantially similar provisions:

1.The rights of any creditor under the debt and security instruments shall be subordinate and subject to the rights of the Corporation under its mortgage note, mortgage and security agreement.

2.So long as the Corporation's mortgage is outstanding, any payments due the creditor from development income shall be payable only from distributions approved by the Corporation in accordance with the regulatory agreement pertaining to the Housing Development.

3.The creditor has no claim and shall not later assert any claim against the mortgaged property, the mortgage proceeds, any reserve or deposit required by the Corporation or HUD, or against the rents or other income from the mortgaged property including any financial assistance provided by the Corporation or HUD.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Technical Revision — effective from 2001-12-28 to 12/28/2001
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-30-00-4 Allocation of Low Income Housing Tax Credits

825-RICR-30-00-4 § 4.1 CONSTRUCTION OF RULES AND REGULATIONS

Construction with Act and Tax Code. Unless otherwise defined herein or unless a different meaning is required from the context in which they are used herein, all words and terms used in these Rules and Regulations are as defined in the Act and the Tax Code.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.2 DEFINITIONS

"Act" means the Housing and Mortgage Finance Corporation Act more particularly set forth in R.I. Gen. Laws Chapter 42-55, as amended.

"Board of Commissioners" or "Board" means the Board of Commissioners of the Corporation.

"Corporation" means the Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

"Development" means a multi-family residential housing complex to be acquired, constructed, developed and/or rehabilitated by a Housing Sponsor. A Development may be a multi-family residential housing complex portions of which are located on non-contiguous parcels of land; provided, however, that each unit in a housing complex on non-contiguous parcels must be "rent restricted" as defined in 26 U.S.C. the Internal Revenue Code, or each parcel on which portions of such complex are located must meet the applicable 20-50 Test or the 40-60 Test, as set forth in 26 U.S.C. § 142(d).

"Housing Sponsor" means corporations, individuals, joint ventures, partnerships, limited partnerships, trusts, firms, associations, or other legal entities or any combination thereof, whether organized for profit or not, qualified either to own, construct, acquire, develop or rehabilitate a Development.

“Low-Income Housing Tax Credits” means the low-income housing tax credits allowable against the federal income tax pursuant to 26 U.S.C. §§ 38 and 42.

"Low-Income Persons or Families" means persons or families whose income does not exceed the applicable percentages of the Area Median Gross Income as defined in 26 U.S.C. § 142(d) (“Tax Code”). Statistical data relating to Area Median Gross Income of Low-Income Persons or Families shall be made available to Housing Sponsors by Program Bulletin from time to time.

"Low-Income Rental Unit" means a unit, including single room occupancy and other units eligible for allocation of Tax Credits under the Tax Code, to be rented to Low-Income Persons or Families.

"Non-Profit Housing Sponsor" means a Housing Sponsor described in the Internal Revenue Code, 26 U.S.C. §§ 501(c)(3) or (4) which is exempt from tax under 26 U.S.C. § 501(a) which has as one of its exempt purposes the fostering of low-income housing. Non-Profit Housing Sponsor also includes any other entity qualifying as such under the Tax Code

"Program Bulletin" means a bulletin issued by the Corporation implementing a section or sections of these Rules and Regulations. A request for an application to reserve Tax Credits pursuant to § 4.4(B) of this Part, may also constitute a Program Bulletin. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying during the hours of 9:00 a.m. to 5:00 p.m. on Mondays through Fridays, except holidays.

“Qualified Allocation Plan” shall have the meaning set forth in § 4.4(B) of this Part.

"Reservation Period" means any period during which the Corporation has requested and is reviewing applications for the reservation of Tax Credits.

“Special Reserve” shall have the meaning set forth in § 4.4(C) of this Part.

"Tax Code" means 26 U.S.C., the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations now or hereafter promulgated thereunder relating to Tax Credits.

"Tax Credit Program" means any program now in effect and as amended from time to time providing Tax Credits to taxpayers who acquire, develop, rehabilitate, construct or maintain dwelling units for Low-Income Persons or Families which program authorizes the Corporation to allocate or approve Tax Credits for such taxpayer's use.

“Tax Credits” mean the Low-Income Housing Tax Credits.

“Treasury Department” means the United States Department of the Treasury.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.3 LOW-INCOME HOUSING TAX CREDITS

A.The Tax Credit Program. Low-Income Housing Tax Credits have been set aside for each state in accordance with a formula established in the Tax Code. The amount of Tax Credits available for the State of Rhode Island may be increased or decreased from time to time in accordance with federal law.

B. Applicability and Interpretation of Rules and Regulations. These Rules and Regulations govern the allocation of Tax Credits among eligible Housing Sponsors that acquire, construct, or rehabilitate Developments in Rhode Island. These Rules and Regulations are intended to be read in pari materia with the Tax Code. To the extent any provision of the Tax Code now in effect or hereafter adopted would operate or render ineffective any allocation of Tax Credits made or to be made hereunder, these Rules and Regulations shall be deemed to have been amended to conform with such provision, to the extent necessary to resolve such inconsistency.

C. Role of the Corporation. Under existing law, the Corporation has been designated as the housing credit agency for the State of Rhode Island, and is generally responsible for the administration and allocation of the Tax Credit Program in the State of Rhode Island.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.4 RESERVATION OF TAX CREDITS AND APPLICATION PROCESS

A.Allocation of Tax Credits. The Corporation will allocate Tax Credits using a reservation system. Tax Credits will be finally allocated when the Development is placed in service or at such other period or periods permitted under the Tax Code, provided all terms and conditions of this Part and all applicable provisions of the Tax Code have been satisfied.

B.Application for Reservation of Tax Credits. The Corporation shall seek applications for reservations of Tax Credits during each Reservation Period which may be a calendar quarter or such other period of time as the Corporation may establish from time to time in a Qualified Allocation Plan that has been approved in accordance with the Tax Code and adopted by the Corporation (as in effect from time to time, the “Plan”). Applications shall be received by the Corporation in accordance with the Plan.

C.Rules Relating to Non-Profit Housing Sponsors. The Corporation will reserve the amount of Tax Credits required by the Tax Code for exclusive use by Non-Profit Housing Sponsors (the "Special Reserve"). The allocation of Tax Credits among Non-Profit Housing Sponsors shall be made by the Corporation from the Special Reserve in accordance with the same procedures and priorities established in the Plan for for-profit Housing Sponsors. When the Special Reserve has been exhausted, applications by Non-Profit Housing Sponsors shall be considered along with applications for for-profit Housing Sponsors against the general State of Rhode Island allocation.

D.Contents of Application. Each Housing Sponsor seeking a reservation of Tax Credits shall submit to the Corporation an application and supporting materials, as set forth in the Plan. Any information or materials submitted must be in form and substance satisfactory to the Corporation in all respects.

E.Evaluation of Applications for Reservations of Tax Credits. The Corporation shall evaluate applications for reservations of Tax Credits in accordance with the Plan.

F.Right of Corporation to Withdraw Reservation. The Corporation may, at its sole option and discretion, reduce the amount of Tax Credits reserved for any Housing Sponsor or withdraw the entire amount of Tax Credits so reserved if:

1.The Application of such Housing Sponsor contains any fraudulent statement or material misstatement or omits to state any material fact required to be contained therein;

2.it appears to the Corporation that the Development or any portion thereof for which Tax Credits have been reserved will not to be acquired, constructed and/or rehabilitated in a time period adequate to meet the time periods under the Tax Code; or

3.Such other reasons as may be established by the Corporation and made available by Program Bulletin from time to time.

G.The Corporation shall notify the Housing Sponsor, at its address set forth in the Application, prior to any reduction in or withdrawal of Tax Credits previously reserved for such Housing Sponsor.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.5 ALLOCATION

A.Final Allocation of Tax Credits. The final allocation of Tax Credits shall be made at such time as the Corporation has received such revised eligibility determinations, calculations, certifications, legal and accounting opinions, and other documentation as required by the Corporation. Final allocations shall be made at such time or times as the Tax Code permits. If the Corporation shall determine that the Housing Sponsor is no longer entitled to Tax Credits, it shall so notify the Housing Sponsor; provided, however, that such Tax Credits may be re-allocated subject to satisfaction of terms and conditions as the Corporation shall deem necessary or appropriate to assure that the Housing Sponsor shall become entitled to the Tax Credits. In the event that a Housing Sponsor does not request its entire allocation of reserved Tax Credits or is deemed by the Corporation not to be entitled to any or all of its reserved Tax Credits, the Corporation may set aside or allocate, as applicable, such unallocated Tax Credits to other qualified Housing Sponsors in other manner as the Corporation deems appropriate.

B.Request for Additional Tax Credits. Prior to the allocation of Tax Credits, a Housing Sponsor may request a reservation of additional Tax Credits. Any request for additional Tax Credits shall include such revised eligibility determinations, calculations, opinions, certifications and documentation as the Corporation shall require in order to determine that the Housing Sponsor will be entitled to such additional Tax Credits in accordance with the provisions of these Rules and Regulations. The Corporation may require each Housing Sponsor seeking additional Tax Credits to pay additional fees in accordance with the rates set forth in §§ 4.6(B) and (C) of this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.6 FEES

Each Housing Sponsor shall pay to the Corporation applications fees, underwriting fees, and allocation fees as set forth in the Plan.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

825-RICR-30-00-4 § 4.7 MISCELLANEOUS

A.Monitoring and Continuing Compliance. Each Housing Sponsor shall submit to the Corporation copies of all information required from time to time by federal statutes or regulations to be furnished in connection with the Tax Credit Program at the time such information is made available to the Treasury Department. The Corporation may from time to time conduct on-site inspections of Developments to which Tax Credits have been allocated either with or without prior notice to the Housing Sponsor.

B.Extended Use and Resale Restrictions. The Tax Code imposes additional restrictions providing for extended use of Low-Income Persons or Families beyond the initial compliance period, and placing restrictions on the resale of Developments to which Tax Credits were allocated in certain years, as set forth in the Plan. Each Housing Sponsor shall cause to be submitted to the Corporation such documents, notices and other information deemed necessary by the Corporation to comply with such restrictions of the Tax Code.

C.Agreements with the Corporation. The Corporation may, at its sole option and discretion, require any Housing Sponsor to execute and deliver to the Corporation such agreements, documents, certificates and other instruments as it shall deem necessary to administer and monitor the Tax Credit Program.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2017-12-04 to 01/04/2022
Amendment — effective from 2017-12-04 to 12/04/2017
Periodic Refile — effective from 2001-12-28 to 12/04/2017

Chapter 40 Rules Relative to Other Programs

Subchapter 00

825-RICR-40-00-1 Resident Selection Plan

825-RICR-40-00-1 § 1.1 GENERAL PROVISIONS

1.1.1PURPOSE

The purpose of this Resident Selection Plan is to establish uniform application, waiting list and tenant selection policies, practices and procedures to be used in the administration of all Section 8 projects constructed or substantially rehabilitated under permanent financing provided by Rhode Island Housing and Mortgage Finance Corporation ("RIHMFC")

1.1.2AUTHORITY

Pursuant to its contract with the United States Department of Housing and Urban Development ("HUD"), RIHMFC is responsible for supervision of the development and management functions of managing agents and owners of Section 8 projects constructed or substantially rehabilitated under permanent financing provided by RIHMFC ("state agency financed Section 8's"). In addition, Rhode Island law provides that RIHMFC must approve the resident selection plan for each state agency financed Section 8 and further provides that RIHMFC may publish regulations governing the terms of such resident selection plans. This Resident Selection Plan is issued as a RIHMFC regulation pursuant to the authority conferred by R.I. Gen. Laws § 42-55-11 (1984 Reenactment).

1.1.3APPLICABILITY

This Resident Selection Plan applies to all state agency financed Section 8's from and after January 1, 1986.

1.1.4DEFINITIONS

A.Official Date of Application, means the date upon which the owner or managing agent of a state agency financed Section 8 is aware of receipt or physical possession of a completed application for admission. An application is complete when it contains all legally required information. The date of receipt of the application shall be presumed to be the date stamped on the receipt provided to the applicant.

B.Updated Waiting List, means the complete re-posting on a monthly basis of a waiting list showing the names of applicants in current proper order. Applicants who have received an apartment within the past month shall be deleted from the list.

C.Revised Waiting List, means a posted waiting list with notations added, between monthly updates, which shall include notations showing which applicants on the updated waiting lists have received an apartment. Notations showing that an applicant has received an apartment must include the date of admission to the project and the preferential basis for admission, if applicable.

D.Lower Income Applicant, means a person or family whose total Annual Income is between 50 percent and 80 percent of the median income for the area, as determined by HUD, or such other person as satisfies HUD's regulations defining "lower income". RIHMFC will inform owners and managing agents of state agency financed Section 8's of current area median income figures at least annually, and within a reasonable time after HUD announces any changes in these figures.

E.Very Low-Income Applicant, means a person or family whose total Annual Income does not exceed 50 percent of the median income for the area, as determined by HUD, or such other person as satisfies HUD's regulations defining "very low income". RIHMFC will inform owners and managing agents of state agency financed Section8's of current area median income figures at least annually, and within a reasonable time after HUD announces any changes in these figures.

F.Post-October 1, 1981 Project, means any state agency financed Section 8 which first became available for occupancy on or after October 1, 1981.

G.Pre-October 1, 1981 Project, means any state agency financed Section 8 which first became available for occupancy prior to October 1, 1981.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.2 APPLICATION PROCESS

1.2.1APPLICATION FOR ADMISSION

A.Applications must be made available at the management office of each state agency financed Section 8, and must be provided to applicants by mail, upon request.

B.At the time applications are provided or as soon thereafter as possible (but in no event later than the time of acceptance of the application), managing agents must provide all applicants with a pamphlet, substantially identical to § 1.5 of this Part (Exhibit A), which outlines the eligibility requirements for admission to the project and which contains a description of the application and tenant selection procedures employed by the project.

1.The pamphlet must advise the applicant, in bold letters, that it is the applicant's responsibility to keep the project informed of his or her current address, and that failure to keep the project so informed may result in the applicant's removal from the waiting list.

2.Any form of pamphlet other than § 1.5 of this Part (Exhibit A) must be submitted to RIHMFC for approval prior to distribution to applicants.

C.All entries on the application are to be made in ink and all applications must be completed in full.

D.At the time that the application is submitted to the owner or managing agent of a state agency financed Section 8, the applicant must be provided a receipt substantially identical to the receipt attached hereto as § 1.6 of this Part (Exhibit B). The receipt must contain:

1.The applicant's name.

2.The name of the Section 8 project.

3.The date of receipt of the application by the owner or managing agent of the project.

E.In the event that the application is mailed to the project, the project must mail the receipt to the applicant within two business days after receiving the application.

1.2.2EVALUATION OF APPLICANTS

A.Categorical Eligibility Requirements. Within 20 days of the official date of application, the owner or managing agent must determine whether the applicant meets HUD-mandated categorical eligibility requirements relating to family composition and family income, on the basis of the information and materials provided to the owner or managing agent. The applicant must be provided notice of this determination in accordance with § 1.2.3(A) of this Part. In the event that the owner or managing agent subsequently received information or materials which indicates that the categorical eligibility requirements are not met, the applicant must be provided notice of this change in determination immediately, as provided in § 1.2.3(D) of this Part.

B.Non-Categorical Eligibility Requirements.

1.Owners and managing agents may evaluate applicants for admission to state financed Section 8's on the basis of "non-categorical" criteria, including, but not limited to, factors such as the applicant's rent paying history or comments from prior landlords.

2.A determination of eligibility on the basis of non-categorical criteria may be made at the same time that the applicant is first evaluated for the categorical eligibility requirements. Management may choose not to do such an initial non-categorical investigation, in which case management will be bound by § 1.2.2(B)(4) of this Part, below. If management does choose to do an initial non-categorical determination, then it must be completed not more than sixty (60) days after the official date of application.

3.If the managing agent decides to evaluate applicants on the basis of non-categorical eligibility requirements at the time of initial application, the applicant nonetheless must be notified whether he or she meets HUD-mandated categorical eligibility requirements within 20 days of the official date of application, as provided in § 1.2.2(A) of this Part, above. This notification must be made even if a determination of eligibility on the basis of non-categorical criteria is not completed by that time. If the applicant is subsequently determined to be ineligible for admission based on non-categorical eligibility requirements, he or she must be provided notice of this decision as provided in § 1.2.3(D) of this Part.

4.A separate and optional determination of eligibility for Section 8 housing on the basis of non-categorical criteria may be made no later than two (2) months before the estimated date by which the applicant may be expected to receive an apartment, or 60 days after the official date of application, whichever is later. This separate determination of eligibility may not include consideration of any matters which occurred prior to the date on which the applicant is placed on the waiting list, except with respect to serious and substantial matters relevant to the applicant's fitness as a tenant, which the managing agent was unaware of and reasonably did not discover at the time the applicant was placed on the waiting list. Examples of such serious and substantial matters are criminal convictions relevant to the applicant's fitness as a tenant and serious and willful destruction of property. The applicant must be provided notice of this determination in accordance with § 1.2.3(D) of this Part.

1.2.3NOTIFICATION TO APPLICANT

A.The applicant must be notified in writing of the initial decision regarding his or her categorical eligibility for admission within 20 days of the official date of application. Notification of eligibility for any preference for which an applicant applied must be sent by management no later than sixty (60) days after the application for a preference was made, whether at the initial application or at a later date. See § 1.2.5(C) of this Part, for a discussion of preferences.

B.Unfavorable Decision. If the applicant is determined to be ineligible for admission or for a requested preference, the written notice must be substantially identical to § 1.7 of this Part (Exhibit C) and must:

1.Clearly state the reasons in support of that decision with sufficient specificity to fully inform the applicant of the basis of the denial.

2.Inform the applicant of his or her right to challenge the decision through the review process within 15 days of mailing of the notice (See § 1.2.4 of this Part).

3.Inform the applicant of the procedures which must be followed to request review.

4.Inform the applicant that he or she may pursue other avenues if the applicant believes that he or she is being discriminated against on the basis of race, color, creed, sex, national origin, age or handicap.

C.Favorable Decision.

1.If an applicant is determined to be categorically eligible for admission and there is an appropriate size bedroom unit available, the managing agent must notify the applicant with notice of this determination within 20 days of the official date of application, in accordance with § 1.2.3(A) of this Part. The managing agent must make its decision regarding non-categorical criteria, if such decision is going to be made, so that a final notice of eligibility will be provided to the applicant no later than 60 days after the official date of application. This notice of eligibility must be substantially identical to § 1.8 of this Part (Exhibit D) and must inform the applicant that he or she has been selected for admission to the state agency financed Section 8 and must advise the applicant to contact the managing agent to arrange for signing a lease.

2.If the applicant is determined to be categorically eligible for admission but the project does not have an appropriate size bedroom unit then available for the applicant, the notice must be substantially identical to § 1.9 of this Part (Exhibit E) and must:

a.Inform the applicant that he or she has satisfied the categorical requirements for admission to the project.

b.Inform the applicant that eligibility for admission is contingent upon his or her meeting the categorical eligibility requirements at the time a unit is available, as well as satisfying non-categorical requirements.

c.Inform the applicant that an appropriate size unit is presently unavailable and that he or she has been placed on a waiting list.

d.Inform the applicant as to which waiting list he or she has been assigned, his or her number on the waiting list and the approximate date that a unit may be available. The estimate of the approximate date of availability is not a promise that such a unit actually will be available on that date.

3.Post-October 1, 1981 Projects. At the present time, applicable statutes and HUD regulations exclusively limit admission to Post-October 1, 1981 projects to very low-income applicants. Thus, lower income applicants for admission to post-October 1, 1981 Projects, although technically eligible for admission to the project, are very unlikely to be selected for admission under the current statutes and HUD regulations and are very likely to remain on the waiting list indefinitely. The written notice sent to such lower income applicants must be substantially identical to § 1.10 of this Part (Exhibit F) and must:

a.Inform the applicant that current statutes and regulations limit admission to the project to very-low income applicants, unless there are no such applicants.

b.Inform the applicant of his or her current position on the waiting list.

c.Inform the applicant that he or she will not be admitted to the project for an indefinite period of time.

d.Inform the applicant of the procedures to be followed to request a review on his or her income status if the applicant believes that the owner or managing agent has improperly calculated his or her income and that he or she satisfies the very low-income requirements.

D.Subsequent Notification.

1.If, subsequent to an applicant's receipt of a notice of favorable decision, the owner or managing agent determines that the applicant does not satisfy the categorical or non-categorical eligibility requirements, the applicant must immediately be sent a notice substantially identical to § 1.11 of this Part (Exhibit G). This notice must provide the information outlined in in § 1.2.3(B) of this Part.

2.Determinations of ineligibility based on non-categorical eligibility criteria and not provided by notice within 60 days after the official date of application may not take into consideration any matters which occurred prior to the date on which the applicant was initially placed on the waiting list, except with respect to serious and substantial matters relevant to the applicant's fitness as a tenant which the managing agent was unaware of and reasonably did not discover at the time the applicant was placed on the waiting list. See § 1.2.2(B)(3) of this Part (for examples of such conduct).

E.Rejection of an Available Apartment.

1.If an applicant is notified that an apartment is available for his or her occupancy, and the applicant rejects the apartment without a bona fide and substantial reason, the owner or managing agent may remove the applicant from his or her place on the waiting list. If the applicant is removed from the waiting list and placed on the bottom of the list, the applicant's official date of application will become the date on which he or she rejected the available apartment.

2.If an owner or managing agent rejects an applicant's reason for refusing an available apartment, the applicant has the right to an informal hearing before RIHMFC to challenge the decision (see § 1.2.4 of this Part), and the written notice to the applicant shall so state, in a form substantially similar to § 1.7 of this Part (Exhibit C) to the Resident Selection Plan.

1.2.4REVIEW PROCESS

A.Any applicant who is determined to be ineligible for admission, a preference for which they applied, or placement on a very low-income limit waiting list due to excess income, or an applicant whose reasons for refusing an available apartment are rejected and who loses his or her place on a waiting list, shall have the right to have an informal hearing before RIHMFC to challenge the decision.

B.In order to obtain an informal hearing, the applicant must complete a Request for Hearing form, which shall be provided to applicants who have been determined to be ineligible for admission or for any preference, and forward it to RIHMFC no later than fifteen days from the date of the notice of ineligibility. The Request for Hearing form to be provided to applicants must be substantially identical to § 1.12 of this Part (Exhibit H).

C.RIHMFC will promptly contact both the applicant and the managing agent of the state agency financed Section 8 to schedule a time for the informal hearing

D.The following procedures shall apply at the informal hearing:

1.The hearing will be conducted by an employee of RIHMFC selected to act as hearing officer.

2.Each party shall have the right to be represented by counsel, at their own expense.

3.Each party shall have the right to present and establish all facts by oral testimony and/or by documentary evidence.

4.The applicant and the managing agent shall have the right to produce live witnesses at the informal hearing.

5.The applicant shall have the right to review his entire application file prior to the informal hearing. Unless other arrangements are made by agreement, the applicant must be given an opportunity to review the application file at least thirty minutes prior to the informal hearing. Any document not made available to the applicant prior to the informal hearing may not be relied upon by the managing agent at the hearing.

6.Within ten (10) working days after the informal hearing, the hearing officer shall issue a written decision on the applicant's request for review of the managing agent's determination of ineligibility.

7.The written decision must briefly set forth the reasons for the decision, and must be based solely on the evidence presented at the hearing and applicable statutes and regulations.

8.The hearing officer shall promptly mail a copy of the written decision to the parties and their counsel, if any, upon issuance of the decision.

1.2.5WAITING LISTS

A.Eligible applicants for whom an appropriate size unit is unavailable will be placed on a waiting list.

B.Four separate waiting lists must be maintained for each bedroom size unit in each project. The following waiting lists must be maintained for each size unit:

1.Very low-income preference list.

2.Very low-income non-preference list.

3.Lower income preference list.

4.Lower income non-preference list.

C.At the present time, HUD regulations regarding preferences have not yet been implemented. Until HUD preference regulations are implemented and are made effective, owners and managing agents of state agency financed Section 8 projects need only establish two waiting lists for each bedroom size unit in the project, i.e., very low-income and lower income.

D.Each waiting list must be posted in a public area at the project which is easily accessible to applicants. The waiting list must state:

1.The name of each applicant (last name, first initial only); and

2.The date of application.

E.Updated waiting lists must be posted monthly. The appropriate waiting list must be regularly revised between updates to show that an applicant has been admitted from the waiting list. The revision must indicate the date of admission of the applicant and the basis for preferential admission, if applicable. See §§ 1.3(D) and 1.3(E)(6) of this Part.

F.Transfers. In the event of a change in the applicant's profile which would affect eligibility, such as a change in income, family size or eligibility for preference, the applicant will be transferred to the waiting list which is appropriate in light of the changed circumstances.

1.The applicant's position on the new waiting list will be based upon the official date of application for admission to the project and not upon the date that the changed circumstances were brought to the managing agent's attention.

2.The revised waiting list shall note the fact of the transfer after the applicant's name on the new list so as to inform other applicants on that list of the transfer.

G.In-House Transfers. In the event of a change in the profile of an existing tenant which would affect the unit size which is appropriate for that tenant, such as a change in family size or a need for a specially designed unit, the existing tenant will be added to the waiting list which is appropriate in light of the changed circumstances

1.The existing tenant will be placed at the top of the waiting list and will be assigned the next available appropriate size unit.

2.The revised waiting list shall note the fact of the addition after the existing tenant's name on the list so as to inform other applicants on that list of the addition.

H.In July of each year applicants on each waiting list whose application is more than two years old must be contacted by the owner or managing agent of the project in order to determine whether they remain interested in admission to the project.

1.Owners or managing agents shall contact applicants by mailing a letter to the applicant's last known address.

2.The letter shall be substantially identical to §§ 1.13 (Exhibit I) and 1.14 (Exhibit J) of this Part. The letter must inform the applicant, in both English and Spanish, that he or she must respond in writing to the managing agent within 90 days of the mailing of the letter, and that his or her name will be removed from the waiting list if he or she fails to respond to the managing agent within that time. If the applicant fails to respond in writing to the managing agent within the 90-day period, then his or her name may be removed from the waiting list.

3.If the letter to the applicant is returned to the managing agent as undeliverable, the managing agent will send a second letter to the applicant. If the applicant fails to contact the managing agent within 90 days of the date the second letter was mailed, he or she will be removed from the waiting list.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.3 RESIDENT SELECTION PROCESS

A.General. Applicable statutes and HUD regulations dictate that different resident selection policies and procedures be employed for Pre-October 1, 1981 and Post-October 1, 1981 Projects. This section outlines the resident selection process to be used for each type of project.

B.Post-October 1, 1981 Projects

1.General. At the present time applicable statutes and HUD regulations exclusively limit admission to Post-October 1, 1981 projects to very low-income applicants.

2.Applicants will be selected for admission from the waiting lists in the following manner:

a.Applicants will be selected from the very low-income preference list in the order of the official date of application.

b.If there are no applicants on the very low-income preference list, or if there are no preferences and this list does not exist, applicants will be selected from the very low-income non-preference list in the order of the official date of application.

c.If there are no applicants on either of the very low-income lists, applicants will be selected from the lower income list in the order of the official date of application.

d.If there are no applicants on the lower income preference list, or if there are no preferences and this list does not exist, applicants will be selected from the lower income non-preference list in the order of the official date of application.

e.In the event that HUD shall determine that some lower income applicants may be selected before very low-income applicants, such as by granting limited waivers of the 100% very low-income requirement, applicants will be selected from the lower income list in the order of the date of the official date of application.

f.No consideration may be given to the relative incomes of applicants in making any selection from any waiting list, i.e., no applicant may receive a preference for admission due to higher income that any other applicant.

C.Pre-October 1, 1981 Projects. Applicants will be selected for admission from the waiting lists for pre-October 1, 1981 Projects in the following manner:

1.For apartments of each bedroom size, the first three available apartments will be filled from the very low-income preference list, or, if no such applicant exists, from the very low-income non-preference list. Applicants will be selected in the order of the official date of application.

2.Every fourth available apartment for each bedroom size will be filled from the lower income preference list or, if no such applicant exists, from the lower income non-preference list. Applicants will be selected in the order of the official date of application.

3.The next three tenant selections will then be followed by one selection from the lower income lists. Applicants will be selected in the order of the official date of application. The selection process will thereafter continue in the same fashion.

4.In the event that there are no eligible applicants on the very low-income waiting lists, applicants may be selected from the lower income waiting lists as if the selections had been made from the former. Similarly, selections shall be made from the very low-income waiting lists in the event that there are no applicants on the lower income waiting lists. Applicants will be selected in the order of the official date of application.

5.Except to the extent permitted above, no consideration may be given to the relative incomes of applicants in selecting applicants for admission to the project, i.e., no applicant may receive a preference for admission due to higher income than any other applicant.

D.Limited Discretion/Pre-October 1, 1981 Projects. With respect to selection of applicants from lower income waiting lists, as described above, owners or managing agents will be permitted to exercise limited discretion to admit applicants to the project who are otherwise eligible for admission to the project but are not first on the appropriate waiting list. The following conditions apply to the exercise of this limited discretion:

1.This discretion may not be exercised for more than 10% of the families receiving apartments.

2.This discretion may be exercised only in cases of extreme hardship or exceptional circumstances involving an actual and immediate need for such housing which reasonable justifies such selection.

3.In all cases where an owner or managing agent shall seek to exercise this discretion to select a tenant pursuant to this section, the owner or managing agent shall be required to send a letter to RIHMFC stating:

a.The name of the proposed tenant;

b.The date of proposed initial occupancy and the number of the available apartment;

c.The official date of application and current place on the waiting list.

d.Whether the tenant was in the very low-income or lower income category.

e.Certification that the tenant otherwise satisfies the criteria for Section 8 housing; and

f.In detail, the exceptional circumstances justifying preferential admission of the tenant to the project.

4.RIHMFC may deny any request for preferential admission under this section if, in its opinion, the reasons advanced by the owner or managing agent to justify admission of the tenant do not meet the requirements of this section.

5.If RIHMFC decides to disallow the request for preferential admission, it will so notify the owner or managing agent within 14 days of the date of RIHMFC's receipt of the request. If RIHMFC does not deny the request within 14 days of receipt of the request, the request is deemed to be granted and the applicant may be admitted to the project.

6.Any admissions pursuant to this subsection must be noted on the appropriate waiting list in accordance with § 1.2.5(E) of this Part.

E.Affirmative Fair Marketing and Tenant Selection. RIHMFC is committed to ensuring that all state agency Section 8's are providing open housing opportunities for persons of all races and colors, are in compliance with the Fair Housing Act, and are meeting the goals set forth in the development's current Affirmative Fair Housing Marketing Plan (AFHMP). The following provisions are intended to ensure that these objectives are being met:

1.For purposes of this subsection, the following definitions shall apply:

a.Minority means a Black, Hispanic, Asian, Pacific Islander, American Indian or Alaskan Native tenant or applicant.

b.Minority Occupancy Rate means the total number of units at a state agency Section 8 occupied by minority tenants.

2.RIHMFC will continue to monitor, through the regular monthly reports of tenant profiles submitted by owners or managing agents, as well as other information made available to RIHMFC, the minority occupancy rate of each state agency Section 8.

3.If RIHMFC determines that the minority occupancy rate of a state agency Section 8 is less than fifty (50%) percent of the anticipated minority occupancy rate as set forth in the current AFHMP, RIHMFC will notify the owner or managing agent of the project in writing of its finding and of RIHMFC's intention to apply the supplemental tenant selection procedures described in § 1.3(E)(6) of this Part, below.

4.The owner or managing agent of a state agency Section 8 which received such a written notice may respond to RIHMFC's notice within twenty (20) days of the date of receipt of the notice.

5.If the owner or managing agent of the state agency Section 8 does not respond to RIHMFC's notice, or based upon the information available to RIHMFC and notwithstanding the owner's or managing agent's response RIHMFC concludes that application of regular resident selection procedures will not result within thirty (30) days thereafter in a minority occupancy rate of at least fifty (50%) percent of the anticipated minority occupancy rate as set forth in the current AFMHP, RIHMFC shall notify the owner or managing agent in writing of its finding and shall order the owner or managing agent to implement the supplemental tenant selection procedures contained in § 1.3(E)(6) of this Part, below.

6.Supplemental Tenant Selection Procedures. The first applicant selected for admission for the first available apartment for each bedroom size following the imposition of the supplemental tenant selection procedures shall be a minority applicant, if there is an eligible minority applicant on the appropriate waiting list at that time. Thereafter, every second applicant selected for admission for each bedroom size shall be a minority applicant, if there is a minority applicant for that bedroom size.

7.Minority applicants selected pursuant to this subsection shall be chosen from the appropriate waiting list in chronological order based on official date of application. No consideration may be given to the relative incomes of applicants in making any selection from among minority applicants for admission under this section, i.e., no applicant may receive a preference for admission due to higher income than any other applicant.

8.Any admissions pursuant to this subsection must be noted on the appropriate waiting list in accordance with § 1.2.5(E) of this Part.

9.The supplemental tenant selection procedures set forth in § 1.3(E)(6) of this Part, above, shall be employed until the regular monthly reports of tenant profiles or other information made available to RIHMFC shows that the minority occupancy rate has reached or exceeded fifty (50%) percent of the anticipated minority occupancy rate as set forth in the current AFHMP.

10.Apartments provided to applicants selected for admission under this subsection shall not be considered "available apartments" under §§ 1.3(B) and (C) of this Part, and shall not be included in selection calculations required to be made under those sections.

11.Owners and managers of Section 8 developments may request amendment of the current AFHMP. Any amendment of the AFHMP must be approved by RIHMFC and HUD in order to become effective.

F.Handicapped Housing. RIHMFC is committed to ensuring that housing designed for handicapped individuals will continue to be provided in state agency financed Section 8's. All admissions to handicapped housing units will be excluded from the provisions of §§ 1.3(A) through (C) of this Part; instead, handicapped applicants will be selected from among all handicapped applicants for handicapped housing units on a first-come, first-served basis, in the order of the official date of application. In any development where a certain number of units, whether specifically designed or not, are set aside for handicapped applicants, this subsection shall apply and the current HUD definitions of "handicapped" and/or "disable" shall be applicable.

G.Superintendent Units. For each state agency financed Section 8, the owner or managing agent may receive from HUD permission to set aside one unit for a superintendent or maintenance person. For any project which received authorization for such a unit and uses that unit for its designated purpose, that unit shall be excluded from the provisions of this Plan.

H.Ladd School and Mental Health Programs. RIHMFC is committed to ensuring that existing housing units provided by certain state agency financed Section 8's for individuals referred by the Ladd School and the Rhode Island Department of Mental Health, Retardation and Hospitals will continue to be provided to such individuals. All admissions to such existing housing units for the Ladd School and the Department of Mental Health, Retardation and Hospitals will be excluded from the provisions of §§ 1.3(A) through (C) of this Part; instead, such admissions will be handled on the same basis that they have been to date, in accordance with the existing agreement. Those units currently involved in these two programs are identified in a separate stipulation filed in this case. Proposals to add or subtract units involved in the two programs will be submitted in advance to RIHMFC and to counsel for plaintiffs.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.4 ENFORCEMENT PROVISIONS

A.On or before August 1 of each year, the owner or managing agent of each state agency financed Section 8 must submit a list to RIHMFC containing the names of all applicants who have been assigned a unit in the project or have been denied eligibility for apartments since the previous such list was provided to RIHMFC. The first list provided to RIHMFC pursuant to this Section shall contain the names of all applicants assigned a unit or denied eligibility since January 1, 1986. The first list must be provided to RIHMFC by August 1, 1986.

B.The list shall contain the following information regarding applicants who have been assigned units:

1.The name of the applicant.

2.The apartment number and bedroom size of the unit assigned.

3.The official date of application.

4.The income category of the applicant (i.e., lower income or very low-income).

5.Whether the applicant was assigned from a preference or non-preference waiting list.

6.The date of initial occupancy.

C.The report shall contain the following information regarding applicants who were denied eligibility for admission:

1.The name of the applicant.

2.The official date of application

3.The reason for the denial eligibility for an apartment.

4.Whether or not the applicant requested a review to contest the determination of ineligibility.

5.The result of the review.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.5 EXHIBIT A – PAMPHLET

(Basic Pamphlet for Pre-Oct. 1981 Elderly/Handicapped Developments – with HUD Preferences)

INTRODUCTION

The Section 8 New Construction Program is designed to provide families and individuals with a safe, secure and affordable place to live. (Name of Section 8) was designed for elderly and handicapped residents. The following is a brief explanation of the application and selection process and requirements at (name of Section 8).

ELIGIBILITY FOR ADMISSION

In order to be eligible for admission to (name of Section 8), you must:

Be an "Elderly Family" as defined by the United States Department of Housing and Urban Development (HUD). An "Elderly Family" is a family in which the head of the household, spouse, or sole member is 62 years of age or older, handicapped, or disabled. In determining whether you are an eligible "Elderly Family", we will apply the following definitions:

"Family" is two or more persons sharing residency and (1) who are related by blood, marriage or operation of law, or (2) who demonstrate a stable relationship which has existed or which can be anticipated to exist, over a continuous period of time.

"Disabled person" is a person who is under a disability as defined in the Social Security Act, or the Developmental Disabilities Services Construction Amendments of 1970.

"Handicapped person" is a person having a physical or mental impairment that (a) is expected to be of long continued and indefinite duration, (b) substantially impedes his or her ability to live independently, and (c) is of such a nature that the ability to live independently could be improved by more suitable housing conditions.

Have a total family income within income limits established by HUD.

Demonstrate that you will be a good tenant at (name of Section 8). In determining whether you will be a good tenant, we may consider such factors as recommendations from past landlords and your rent paying history.

APPLICATION PROCESS

We will accept an application for admission from any person or family. Applications are available at the management office of (name and address of Section 8). All application must be completed in full. Applications may be submitted in person or by mail. Each applicant will receive a receipt, indicating the Official Date of Application, at the time the application is submitted. You should keep this receipt in a safe place since it is proof of the date of your application.

We are required to verify the information you provided regarding income and family composition. We may ask you to assist us in documenting this information.

NOTIFICATION TO APPLICANT

You will receive written notice of our decision regarding your eligibility within 20 days of your Official Date of Application.

If we determine that you are ineligible for admission, we will inform you of the specific reasons for our decision. You will have an opportunity to challenge this decision through the Review Process. You will be provided a Request for Hearing Form with the notice of ineligibility.

If we determine that you are eligible for admission, you will be placed on the appropriate waiting list and will be informed of the approximate date upon which you may be assigned an apartment.

WAITING LISTS

The following waiting lists will be maintained for each bedroom size apartment at (name of Section 8):

Very low-income preference.

Very low-income non-preference.

Lower income preference.

Lower income non-preference.

All eligible applicants will be placed on the appropriate waiting list for their applicant profile. The waiting lists are posted in our management office for your review.

If your income is less than 50 percent of the median area income, you will be placed on the very low-income waiting list. If your income is between 50 and 80 percent of area median income, you will be placed on the lower-income waiting list. Our office can provide you with current median income figures for this area.

You are entitled to be placed on the appropriate "preference" waiting list if you are:

Being displaced by government action.

Currently living in substandard housing.

Currently paying more than 50 percent of your income for shelter (rent and utilities).

You should inform us if any of these categories apply to you.

SELECTION FOR ADMISSION

Applicants for admission will be selected from the waiting lists for each apartment size according to a court-ordering formula. Selection from each waiting list will be on a first come, first served basis. In a limited number of cases where extreme hardship or exceptional circumstances produce an immediate need for housing, or where fair housing considerations require alternative admission procedures, an applicant may be granted priority admission. In those situations, the applicant may be moved to the top of the appropriate waiting list and will be assigned the next available appropriate sized apartment.

REVIEW PROCESS

If you disagree with our decision regarding your application for admission, you may request a review of our decision by Rhode Island Housing and Mortgage Finance Corporation (RIHMFC). In order to request a review, you must mail the completed Request for Hearing form to RIHMFC within fifteen days of the date of our notice to you. You should attach a copy of our notice to the form and you should state your reasons for disagreeing with our decision. RIHMFC will contact you concerning the hearing, and will inform you in writing of its decision.

YOUR RESPONSIBILITY

It is your responsibility to keep us informed of any changes in your income or family composition which may affect your eligibility for admission, the bedroom size apartment which is appropriate for you, or your entitlement to a preference. Examples of such a change include a reduction in family income, a permanent reduction in family size, or the condemnation of your present apartment.

In addition, it is your responsibility to inform us of any changes of address. This requirement is very important because we will periodically update the waiting lists. If you do not respond t our update notice, you will be removed from the waiting list and will start from the bottom of the waiting list if you reapply. ALWAYS KEEP US INFORMED OF YOUR CURRENT ADDRESS.

(Modifications to Basic Pamphlet for Family Developments, Pre-Oct. 81 and Post Oct. 81, With or Without HUD Preferences.)

The Section 8 New Construction Program is designed to provide families and individual with a safe, secure and affordable place to live. (Name of Section 8) was designed primarily for families. The following is a brief explanation of the application and selection process and requirements at (name of Section 8).

ELIGIBILITY FOR ADMISSION

In order to be eligible for admission to (name of Section 8), you must be a "family" as defined by United States Department of Housing and Urban Development (HUD). In addition, individuals who live alone are considered a "family" for eligibility purposes if they are 62 years of age or older, handicapped or disabled.

In determining whether you are an eligible "family" for admission, we will apply the following definitions:

"Family" is two or more persons sharing residency and (1) who are related by blood, marriage or operation of law, or (2) who demonstrate a stable relationship which has existed, or which can be anticipated to exist, over a continuous period of time.

"Disabled person" is a person who is under a disability as defined in the Social Security Act, or the Development Disabilities Services Construction Amendments of 1970.

"Handicapped person" is a person having a physical or mental impairment that (a) is expected to be of long continued and indefinite duration, (b) substantially impedes his or her ability to live independently, (c) is of such a nature that the ability to live independently could be improved by more suitable housing conditions.

Have a total family income within income limits established by HUD.

Demonstrate that you will be a good tenant at (name of Section 8). In determining whether you will be a good tenant, we consider such factors as recommendations from past landlords and your rent paying history.

(Modifications to Basic Pamphlet for Pre-Oct. 81 Developments, Family and Elderly/Handicapped, Without HUD Preferences.)

MAILING LISTS

The following waiting lists will be maintained for each bedroom size apartment at (name of Section 8):

Very low-income.

Lower income.

All eligible applicants will be placed on the appropriate waiting list for their applicant profile. The waiting lists are posted in our management office for your review.

If your income is less than 50 percent of the median area income, you will be placed on the very low-income waiting list. If your income is between 50 and 80 percent of area median income, you will be placed on the lower income waiting list. Our office can provide you with current median income figures for this area.

SELECTION FOR ADMISSION

Applicants for admission will be selected from the waiting lists for each apartment size according to a court-ordered formula. Selection from each waiting list will be on a first come, first served basis. In a limited number of cases where extreme hardship or exceptional circumstances produce an immediate need for housing, or where fair housing considerations produce require alternative selection procedures, an applicant may be granted priority admission. In those situations, the applicant may be moved to the top of the appropriate waiting list and will be assigned the next available appropriate sized apartment.

(Modifications to Basic Pamphlet for Post-Oct. 81 Developments, Family and Elderly/Handicapped, With HUD Preferences.)

MAILING LISTS

The following waiting lists will be maintained for each bedroom size apartment at (name of Section 8):

Very low-income preference

Very low-income non-preference.

Lower income preference.

Lower income non-preference.

All eligible applicants will be placed on the appropriate waiting list for their applicant profile. The waiting lists are posted in our management office for your review.

If your income is less than 50 percent of the median area income, you will be placed on the very low-income waiting list. If your income is between 50 and 80 percent of area median income, you will be placed on the lower income waiting list. Our office can provide you with current median income figures for this area.

You are entitled to be placed on the appropriate "preference" waiting list if you:

Are being displaced by government action.

Currently live in substandard housing.

Currently pay more than 50 percent of your income for shelter (rent and utilities).

You should inform us if any of these categories apply to you.

SELECTION FOR ADMISSION

Applicants for admission will be selected from the waiting lists for each bedroom size on a first come, first served basis. Occasionally, fair housing considerations may require alternative selection procedures. In those situations, an applicant may be given a preference and moved to the top of the appropriate waiting list.

Current HUD Regulations limit admission to (name of Section 8) to very low-income applicants. Thus, if you are a lower income applicant, you will not be admitted at the present time. However, there is a chance that HUD may permit admission of some lower income applicants in the future. Therefore, we will maintain a waiting list of lower income applicants for use in the event that HUD Regulations are changed or if (name of Section 8) obtains a waiver of this requirement.

(Modifications to Basic Pamphlet for Post-Oct. 81 Developments, Family and Elderly/Handicapped, With HUD Waiver for Lower Income Applicants.)

SELECTION FOR ADMISSION

Current HUD regulations generally limit admission to Section 8 Developments to very low-income applicants. However, (name of Section 8) has been granted a waiver of this requirement, and is authorized to admit a specified percentage of lower income applicants.

Applicants for admission will be selected from the very low-income and lower income waiting lists in a proportion specified by HUD. Selection from each waiting list will be on a first come, first served basis based on the bedroom size unit available. Occasionally, fair housing considerations may require alternative selection procedures. In those situations, an applicant may be given a preference and moved to the top of the appropriate waiting list.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.6 Exhibit B

APPLICATION RECEIPT

(Name of State Agency Section 8 Project)

(Address)

(Name of Managing Agent)

(Phone Number of Managing Agent)

NAME OF APPLICANT:

ADDRESS OF APPLICANT

OFFICIAL DATE OF APPLICATION:

This acknowledges receipt from the above named person of a completed application for admission to [INSERT NAME OF SECTION 8 PROJECT] on the date specified above. You will be notified of the preliminary decision regarding your eligibility for admission to this project within 20 days of the official date of application listed above by:

For: [INSERT NAME OF SECTION 8 OR MANAGING AGENT]

SAVE THIS RECEIPT. IT IS YOUR PROOF OF APPLICATION.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.7 Exhibit C

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Admission to (Name of Section 8 Project)

Dear _____________:

I am writing to inform you that, based upon information you provided on your application, we have determined that you are not eligible for admission to (Name of Section 8).

The specific reasons for this decision are as follows:

(Specify reasons for denial in detail, e.g. you are over income; you are not a "family" under HUD regulations; you have a history of failing to pay rent on time; etc. The reasons must be specific enough to fully inform the applicant of the basis for the denial and to enable the applicant to make an informed decision as to whether to request a hearing to challenge the denial.)

You may request a review of this decision if you desire. If you decide to request a review, you must do so within fifteen days of the date of this letter. To request a review, complete the attached form and mail it to the address indicated on the form. You should keep a copy of the completed form for your records.

You may have additional legal rights if you believe that you are being discriminated against on the basis of race, color, creed, religion, sex, national origin, age or handicap. If you request a hearing to challenge this decision, you are not foreclosed from exercising any other avenues which may be available to you.

You may also be eligible for free legal assistance regarding this decision. If you wish, you may contact Rhode Island Legal Services, Inc., 56 Pine Street, Providence, RI 02903, phone (401) 274-2652 to see if you are eligible.

Very truly yours,

SAVE THIS LETTER.

YOU WILL NEED IT TO REQUEST A REVIEW OF THIS DECISION

REQUEST FOR HEARING

Name:

Date:

Address:

Phone:

I hereby request an informal hearing to review the decision of (name of owner or managing agent) that I am ineligible for admission to (name of Section 8 project).

I believe this decision is wrong because:

(Briefly state your reasons here)

Signature

Send this form to:

Rhode Island Housing and Mortgage Finance Corporation

44 Washington Street

Providence, RI 02903

Attn: John Gordon

TO THE APPLICANT: Attach a copy of the denial notice to your Request for Review. Keep a copy of the completed form for your records.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.8 Exhibit D

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Admission to (Name of Section 8 Project)

Dear ___:

I am writing to inform you that you have been determined to be eligible for admission to (Name of Section 8).

Please contact the undersigned as soon as possible to schedule an appointment to acquaint you with your apartment, the building and move-in procedures. At that time you will sign your lease, pick up your keys and be given a tentative move-in date and time.

I look forward to hearing from you soon.

Very truly yours,

SAVE THIS LETTER.

IT IS YOUR PROOF OF ACCEPTANCE

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.9 Exhibit E

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Admission to (Name of Section 8 Project)

Dear __:

I am writing to inform you that, based on the information you have provided us, you appear to be categorically eligible for admission to (Name of Section 8) as a "very low income" applicant. This means that you meet the income and family composition requirements for admission.

Unfortunately, there are no appropriate sized apartments available at the present time. Therefore, we have placed you on the ___ bedroom "very low income" waiting list. You are currently number ___ on this waiting list. You probably will not be admitted before (ENTER DATE), and there is no guarantee that there will be an opening for you by that date. Until then, you may keep track of your progress by consulting the waiting list which is publicly posted in our office.

Your eligibility for admission to (Name of Section 8) depends upon your meeting all the admission requirements at the time an apartment is available. These include income limits and family composition requirements, as well as other requirements such as satisfactory rent paying history or satisfactory recommendations from prior landlords. These factors may be considered before you are assigned an apartment.

Please remember that it is your responsibility to keep us informed at all times of your current address. We cannot inform you of an available apartment if we are unable to get in touch with you. In addition, we will periodically attempt to contact you to determine if you remain interested in admission to this project. If we are unable to contact you, your name will be removed from the waiting list. If you move from your current address, please contact us immediately.

Finally, please keep us informed of any changes in your family size. Changes in family size may require that you be assigned to a different waiting list.

Please contact us if you have any questions.

Very truly yours,

SAVE THIS LETTER. IT IS YOUR PROOF OF PRELIMINARY APPROVAL

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.10 Exhibit F

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Admission to (Name of Section 8 Project)

Dear __:

I am writing to inform you that you are categorically eligible for admission to (Name of Section 8) as a "lower income" applicant. This means that you meet the income and family composition requirements for admission.

Current statutes and HUD regulations, however, limit admission to this project to "very-low income" applicants, unless there are no such applicants. At the present time, there are many such applicants for admission to this project.

We have placed you on the __ bedroom "lower income" waiting list. You are number __ on that waiting list. However, in light of the current admission regulations described above, you will not be admitted for an indefinite period of time.

If you believe that we have improperly calculated your income and you feel that you satisfy the "very low income" requirements, you may request a review of our decision. In order to request a review, you must complete the attached form within fifteen days of the above date. Send the completed form to the address listed on the form. You should keep a completed copy of the form for your records.

You may also be eligible for free legal assistance regarding this decision. If you wish, you may contact Rhode Island Legal Services, Inc. 56 Pine Street, Providence, RI 02903, phone (401) 274-2652 to see if you are eligible.

Very truly yours,

SAVE THIS LETTER. IT IS YOUR PROOF OF PRELIMINARY ELIGIBILITY

REQUEST FOR HEARING

Name:

Date:

Address:

Phone:

I hereby request an informal hearing to review the decision of (name of owner or

managing agent) that I am ineligible for admission to (name of Section 8 project).

I believe this decision is wrong because:

(Briefly state your reasons here)

Signature

Send this form to:

Rhode Island Housing and Mortgage Finance Corporation

44 Washington Street

Providence, RI 02903

Attn: John Gordon

TO THE APPLICANT: Attach a copy of the denial notice to your Request for Review. Keep a copy of the completed form for your records.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.11 Exhibit G

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Admission to (Name of Section 8 Project)

Dear __:

I am writing to inform you that, based on new information, we have determined that you are not eligible for admission to (Name of Section 8). This decision superseded our earlier decision that you were eligible for admission.

The specific reasons for this decision are as follows:

(Specify reasons for the decision in detail, e.g. you are over income; you are not a "family" under HUD regulations; you have a history of failing to pay rent on time; your landlord states that you are overly noisy and have damaged his property; etc. The reasons must be specific enough to fully inform the applicant of the basis for the denial and to enable the applicant to make an informed decision as to whether to request a hearing to challenge the denial.)

Very truly yours,

SAVE THIS LETTER. YOU WILL NEED IT IF YOU WANT TO APPEAL.

REQUEST FOR HEARING

Name:

Date:

Address:

Phone:

I hereby request an informal hearing to review the decision of (name of owner or managing agent) that I am ineligible for admission to (name of Section 8 project).

I believe this decision is wrong because:

(Briefly state your reasons here)

Signature

Send this form to:

Rhode Island Housing and Mortgage Finance Corporation

44 Washington Street

Providence, RI 02903

Attn: John Gordon

TO THE APPLICANT: Attach a copy of the denial notice to your Request for Review. Keep a copy of the completed form for your records.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.12 Exhibit H

REQUEST FOR HEARING

Name:

Date:

Address:

Phone:

I hereby request an informal hearing to review the decision of (name of owner or

managing agent) that I am ineligible for admission to (name of Section 8 project).

I believe this decision is wrong because:

(Briefly state your reasons here)

Signature

Send this form to:

Rhode Island Housing and Mortgage Finance Corporation

44 Washington Street

Providence, RI 02903

Attn: John Gordon

TO THE APPLICANT: Attach a copy of the denial notice to your Request for Review. Keep a copy of the completed form for your records.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.13 Exhibit I (English)

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Waiting List Update at (Name of Section 8 Project)

Dear _____________:

I am writing to determine whether you remain interested in admission to (Name of Section 8).

If you still are interested in admission to (Name of Section 8) then you must notify the undersigned within 90 days of the date listed above. If you fail to notify us of your continued interest within that time, your name will be removed from the waiting list and you will no longer be considered for an apartment at (Name of Section 8).

You should notify us in writing by using the attached form. Complete the form, detach it from this letter, and send it to this office by mail or in person within 90 days of the above date. You should keep a copy of the completed form for your own records.

If you are no longer interested in admission to (Name of Section 8), you do not have to contact us. Your name will be automatically removed from the waiting list after 90 days from the above date.

We look forward to hearing from you soon if you are still interested in admission to (Name of Section 8).

Very truly yours,

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001

825-RICR-40-00-1 § 1.14 Exhibit J – (Spanish)

(Name of Section 8 Project)

(Address)

(DATE)

(Name of Applicant)

(Address)

Re:Lista de espera hasta la fecha en:

Estimado(a):

Le escribo para determinar si usted permanece interesado en la admision a (Name of Section 8).

Si usted todavia esta interesado en ser admitido(a) a (Name of Section 8) entonces usted debe notificar dentro de los noventa dias a partir de la fecha arriba mencionada, enviando el formulario adjunto firmado. Si usted no nos notifica que continua interesado dentro de ese tiempo su nombre sera borrado de la lista de espera y usted ya no sera considerado como interesado en adquirir un apartmento en (Name of Section 8).

Usted debe notificarnos escribiendonos y usando el formulario adjunto. Complete el formulario, unalo a su carta, y envielo a esta oficina por correo o personalmente dentro de los noventa dias de la fecha antes mencionada. Usted debe mantener o guardar una copia de este formulario ya completado para sus records.

Si usted ya no esta interesado en ser admitido a (Name of Section 8), usted no tiene que ponerse en contacto con nosotros. Su nombre sera borrado automaticamente de la lista de espera despues de los noventa dias a partir de esta fecha.

Esperamos su pronta respuesta se aun esta interesado(a) en (Name of Section 8).

Su Seguro Servidor

NOTICE OF CONTINUED INTEREST IN ADMISSION

Name:

Address:

I am still interested in obtaining an apartment at (Name of Section 8). Please keep my name on the waiting list.

Date:

Signature

Return this form to:

(Name of Section 8)

(Address)

KEEP A COPY OF THIS LETTER FOR YOUR RECORDS

IT IS YOUR PROOF THAT YOU NOTIFIED US OF YOUR CONTINUED INTEREST IN ADMISSION

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2001-12-28 to 01/04/2022
Periodic Refile — effective from 2001-12-28 to 12/28/2001