Section 10-B4105. PARTICIPATING LENDERS FOR HOUSING PRODUCTION TRUST FUND ASSISTANCE

 

4105.1DHCD may designate certain Financial Institutions to be Participating Lenders authorized to originate loans from the Fund pursuant to the Act and this chapter.

 

4105.2The following types of financial institutions shall be eligible to apply to be designated Participating Lenders and to originate loans from the Fund:

 

(a)Financial institutions which have accounts insured by any agency of the United States or subsidiary entities of such institutions;

 

(b)Financial institutions who are approved mortgagees of the Federal Housing Administration, U.S. Department of Housing and Urban Development;

 

(c)Any financial institution including one designated by Fannie Mae or Freddie Mac as a seller/servicer, that presents evidence of responsibility, permanency, financial adequacy, and requisite administrative capabilities determined acceptable by DHCD;

 

(d)Any mortgage banking or mortgage brokerage firm licensed and regulated by the D.C. Office of Banking and Financial Institutions; and

 

(e)National nonprofit intermediaries such as the Local Initiatives Support Corporation and the Enterprise Foundation, and local nonprofit lenders that present evidence of responsibility, permanency, financial adequacy, and requisite administrative capabilities determined acceptable by DHCD.

 

4105.3When evaluating Financial Institutions described in §4105.2 to select Participating Lenders to originate loans from the Fund, DHCD may give priority to Financial Institutions which demonstrate the following:

 

(a)Ability and commitment to provide investments of equity capital to Fund-assisted projects either directly or through one or more subsidiary entities;

 

(b)Commitment to expand their housing production lending in the District which is not related to Fund assistance; or

 

(c)Demonstrated commitment to and expertise in housing production lending for low, very low and extremely low income households.

 

4105.4Each Participating Lender approved to originate loans from the Fund shall be required to execute a contract with DHCD, which shall set forth the rights and responsibilities of both the Participating Lender and DHCD. The contract terms shall include, but not be limited to, the following:

 

(a)All Fund loans originated by the Participating Lender shall conform to written underwriting criteria, evaluation procedures, priorities, written provisions to prevent conflict of interest and identify any real or potential conflict of interest situations between the Participating Lender and the project sponsor, and other criteria and procedures established by DHCD consistent with the Act and this chapter;

 

(b)All Fund loans originated by the Participating Lender shall be subject to review and audit by DHCD; and

 

(c)The Participating Lender shall be obligated to purchase at its own expense the full amount of any Fund loan which the Participating Lender has originated and DHCD has determined, in its sole discretion, not to be in compliance with the Act, this chapter, or DHCD's written criteria, procedures and priorities.

 

4105.5DHCD shall establish and publish the procedures consistent with the Act and this chapter by which DHCD will allocate reservations of Fund monies to Participating Lenders.

 

4105.6DHCD may authorize Participating Lenders to assess Eligible Borrowers fees, not to exceed an amount determined by DHCD to be reasonable, to accept and process applications submitted by Eligible Borrowers for Fund loans. The fees may include, but not necessarily be limited to, the following:

 

(a)Origination fees;

 

(b)Loan discounts;

 

(c)Appraisal review fees;

 

(d)Lender inspection fees; and

 

(e)Fees for preparation or review of closing documents.

 

source

Final Rulemaking published at 36 DCR 8631, 8637 (December 29, 1989); as amended by Final Rulemaking published at 49 DCR 10582(November 22, 2002); as amended by Emergency Rulemaking published at 50 DCR 1605(February 14, 2003)[EXPIRED].