Section 10-B4104. THE HOUSING PRODUCTION COMPONENT

 

4104.1Funds allocated to the Housing Production Component may be used to provide Housing Production loans, grants and equity capital investments by DHCD to Eligible Entities described in § 4106.1.

 

4104.2DHCD may establish guidelines and procedures consistent with the Act and this chapter as may be necessary to review and authorize equity investments by the Fund. These criteria and procedures may be revised by DHCD.

 

4104.3Housing Production funds may be used for the following activities:

 

(a)Acquisition of real property for housing uses, including housing for the elderly, disabled or handicapped;

 

(b)Construction of residential structures or substantial rehabilitation of housing and related facilities, including the provision of loans to develop housing and provide services for the elderly, elderly special needs, disabled or handicapped, or other special needs individuals and families;

 

(c)Improvements to preserve housing including repairs needed to correct or remove actual or incipient D.C. Code violations which, if not repaired, would reasonably be expected to result in District of Columbia Housing Code deficiencies within five (5) years; and

 

(d)Operating Capital for housing development, including funds to retain Professional Services, or to establish a Contingency Reserve Fund of up to ten percent (10%) of the Housing Production assistance, as follows:

 

(1)Professional services costs for reasonable and customary costs of architectural, engineering and related professional services required in the preparation of rehabilitation plans, drawings, write-ups, or specifications of work, including grants for architectural designs for adaptive re-use of previously on-residential structures, provided that the applicant is able to demonstrate in writing to DHCD or its designee that the property for which the architectural design for adaptive re-use has been submitted has been reviewed by a licensed architect and has been found to be economically feasible for conversion to housing;

 

(2)Financing costs, including processing and loan settlement. Examples of financing costs include the following:

 

(A)The cost of building permits and related fees;

 

(B)Loan origination fees;

 

(C)Credit reports;

 

(D)Fees for title work and other legal fees related to obtaining art acceptable title report.

 

(E)Fees for recording and filing legal documents related to the loan;

 

(F)Appraisal fees; and

 

(G)Fees for an independent rehabilitation cost estimate; and

 

(3)A Contingency Reserve Fund to be used for unanticipated construction interest or construction costs and unanticipated increases in other eligible costs; and.

 

(e)Predevelopment expenses for projects sponsored by non-profit housing developers;

 

(f)Loans for first-effort model projects;

 

(g)Financing for construction loan guarantees or collateral;

 

(h)Other loans and grants for housing production determined by DHCD to be consistent with this Chapter and the Housing Production Trust Fund Act of 1988 as amended.

 

4104.4All Housing Production Loans and Grants shall conform to the following underwriting standards and criteria:

 

(a)The Housing Production Loan or Grant shall constitute no more than forty-nine percent (49%) of the Total Development Costs;

 

(b)The Housing Production Loan shall be secured by a lien on the property, which may be subordinate to other lien(s) encumbering the property;

 

(c)The term of the Housing Production Loan shall be up to forty (40) years, or the term of the superior mortgage, if any, whichever is longer;

 

(d)Any mortgage that is superior to a Fund loan may be refinanced subject only to the express prior written approval of DHCD or its designee; and

 

(e)DHCD reserves the right to review the terms and conditions of the new superior mortgage(s) and to require amendment of any conditions of the Housing Production Loan before granting approval of any proposed refinancing of a superior mortgage.

 

source

Final Rulemaking published at 36 DCR 8631, 8636 (December 29, 1989); as amended as Final Rulemaking published at 49 DCR 10582(November 22, 2002); as amended by Emergency Rulemaking published at 50 DCR 1605(February 14, 2003)[EXPIRED].