Section 10-B4107. ELIGIBILITYAND PRIORITY CRITERIA FOR HOUSING PRODUCTION COMPONENT ASSISTANCE

 

4107.1Properties for which an Eligible Borrower may receive Housing Production Component assistance shall provide a minimum of twenty percent (20%) of the total housing units in the development or project as Reserved Units on a continuing basis as further defined in § 4107.2(c).

 

4107.1aIn each fiscal year, funds shall be awarded from the Housing Production Component and the Special Financial Products component so that, in aggregate:

 

(a)At least forty percent (40%) of the funds awarded in the fiscal year shall benefit extremely low-income households;

 

(b)At least forty percent (40%) of the funds awarded in the fiscal year shall benefit very low income households; and

 

(c)At least fifty percent (50%) of the funds awarded in the fiscal year shall be for the development or rehabilitation of rental housing.

 

4107.1bIn evaluating and scoring project proposals in response to an announcement of availability of Fund assistance, DHCD shall grant additional weight to project proposals that would achieve the objectives set forth in 4107.1a.

 

4107.2Fund assistance shall be limited as follows:

 

(a)The percentage of all units which are Reserved Units in properties assisted with Housing Production Component funds shall not be less than the percentage of the project's total development costs which are financed by the Fund, as determined by DHCD;

 

(b)The type and size of the Reserved Units shall be representative of the other housing units in the project for which assistance is not provided through the Fund;

 

(c)Reserved units shall be continuously affordable to low, very low and extremely low- income households as required by the Act and further specified in § 4112.5, subject to the following requirements:

 

(1)Reserved Units shall be continuously affordable for a period of at least 15 years from the date of loan settlement for for-sale units;

 

(2)Reserved Units shall be continuously affordable for a period of at least 40 years from the date of the issuance of a Certificate of Occupancy for rental units; and

 

(3)No period of affordability will be attached to units where assistance is provided for the rehabilitation of owner-occupied single-family homes or where assistance is provided under the Homestead Housing Preservation Act of 1986, effective August 9, 1986 (D.C. Law 6-135; D.C. Official Code § 42-2107) or another statutory program; and

 

(d)The property shall be located in the District of Columbia.

 

4107.3For compliance with the requirements regarding Reserved Units, the following shall apply:

 

(a)In determining the number of Reserved Units for compliance with any requirement of this section, any fraction of a whole number shall be rounded up to the next highest whole number;

 

(b)The maximum allowable monthly rents for Reserved Units, including utilities, determined periodically by DHCD shall be based on thirty percent (30%) of one-twelfth (1/12) of the annual top income limit for low, very low and extremely low income households, as published periodically by DHCD, and as those terms are defined in § 4199. The formula shall be applied as follows:

 

Type of Unit	Applicable Low Income Limit
Efficiency(or bed in Congregate facility)	One person limit
1 Bedroom	Two person limit
2 Bedroom	Three person limit
3 Bedroom	Five person limit
4 Bedroom	Seven person limit
5 Bedroom	Eight person limit

 

(c)Where the provision of essential utilities is not included as part of the rent, a reasonable allowance for utilities as determined by DHCD shall be subtracted from the maximum allowable rent in determining compliance with affordable rent requirements.

 

4107.4The applicant shall certify to DHCD that the applicant shall rent all Reserved Units in the project exclusively to low, very low and extremely low income households, consistent with the requirements of §4112.5, and shall certify annually that such units have been rented exclusively to eligible households

 

4107.5Properties which are occupied at the time of submission of an application for assistance under the Fund, or which shall be occupied during rehabilitation or other improvement activity, shall be eligible for participation in the Fund's programs provided that the relocation requirements of §4107.6 are met.

 

4107.6Occupants of property that will be improved with Fund monies shall be eligible for relocation assistance in accord with District of Columbia law. Persons considered permanently displaced by activity assisted by the Fund shall include those whose displacement result from demolition activity.

 

4107.7Property for which an eligible entity may receive a Fund assistance shall not include hotels, motels, dormitories, fraternity and sorority houses, hospitals, nursing homes, sanitariums, rest homes, trailer parks and other similar facilities used for residential purposes.

 

4107.8The following types of housing developments shall receive priority consideration for Housing Production Loans, provided they also meet other eligibility requirements:

 

(a)Developments in which at least fifteen (15%) of the total units contain three (3) or more bedrooms and will be available for rental or sale to low, very low and extremely low income households consisting of four (4) or more persons; and

 

(b)[DELETED]

 

(c)[DELETED]

 

(d)Housing developments that include child development facilities.

 

4107.9Projects assisted with Housing Production Component monies shall be determined by DHCD or its designee to be economically feasible according to standard underwriting criteria, consistent with private market requirements, which shall be updated periodically by DHCD, and furnished to applicants.

 

4107.10Underwriting criteria may include, but are not limited to, the following:

 

(a)Loan-to-value ratio;

 

(b)Debt coverage ratio;

 

(c)Allowable vacancy loss calculation;

 

(d)Replacement and operating cost reserves;

 

(e)Criteria for operating cost allowances;

 

(f)Appraisal and market analysis requirements; and

 

(g)Borrower capability and credit requirements.

 

4107.11Fund assistance for housing shall be limited to amounts needed to support the availability of Reserved Units which are affordable for occupancy by low, very low and extremely low income households as defined in §4199.

 

source

Final Rulemaking published at 36 DCR 8631, 8641 (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];as amended by Final Rulemaking published at 53 DCR 293(January 13, 2006).