Section 10-B4112. CONDITIONS FOR PROJECT CLOSINGS

 

4112.1Prior to closing on any financial assistance under the Fund, the applicant shall meet all conditions of the conditional commitment of DHCD or its designee and other requirements of this chapter to the satisfaction of DHCD or its designee.

 

4112.2Each applicant shall agree in writing to permit all inspections of the property and property records as DHCD, its designee, and other District agencies deem necessary to ensure the quality of rehabilitation or development work and compliance with District of Columbia laws and regulations during the construction period and after occupancy.

 

4112.3Each applicant shall demonstrate to the satisfaction of DHCD or its designee that the property meets the requirements of the zoning regulations of the District of Columbia for the use, location, and occupancy level intended.

 

4112.4With respect to rental or cooperative properties, each applicant shall agree in writing to submit to DHCD or its designee annual audited property or project income and expense statements, as well as annual corporate or business financial statements.

 

4112.5Each applicant shall execute and agree to be bound by a Rent Regulatory Agreement or a Price and Carrying Charge Regulatory Agreement, as appropriate, which shall set forth the terms and conditions covering all Reserved Units, and may be recorded as a lien or covenant on the property.

 

4112.6The Agreement shall include, but not be limited to, the requirements set forth in §§4112.7 through 4112.13.

 

4112.7Each applicant shall warrant that the tenant income and eligibility requirements or the initial purchase prices of the reserved units are consistent with the provisions of §4107.

 

4112.8With respect to rental properties each applicant shall do the following:

 

(a)Establish the basis for the approval or disapproval of rent increases in the Reserved Units to ensure continual affordability to low, very low and extremely low income households for the periods specified in § 4107.2(c);

 

(b)Warrant that the rents of Reserved Units shall be affordable to low, very low and extremely low-income households on a continuing basis for the periods specified in § 4107.2(c).

 

4112.9With respect to Reserved Units, if any, which may be sold to low, very low and extremely low-income households for homeownership, including condominium and cooperative ownership, each applicant shall provide a written strategy subject to the express, prior written approval of DHCD, to ensure that the initial sale prices and all subsequent resale prices shall be continually affordable to low, very low and extremely low- income households for the periods specified in § 4107.2(c).

 

4112.10Each applicant shall warrant that priority in renting or selling the Reserved Units shall be provided to low, very low and extremely low income families and individuals referred by the District of Columbia Housing Authority from the date of initial occupancy.

 

4112.11Each applicant shall provide that DHCD may establish any means of enforcement of the provisions of this section as it determines to be necessary and consistent with this chapter and other provisions of District of Columbia law.

 

4112.12Each applicant shall provide that DHCD shall notify the D.C. Department of Consumer and Regulatory Affairs and other appropriate District and federal authorities, upon the expiration, termination or material breach by Borrower of the Rent Regulatory Agreement.

 

4112.13An applicant may petition DHCD to terminate the Rent Regulatory Agreement prior to its expiration. The Director may approve the petition following an appropriate review assessment and analysis of the housing requirements of the tenants of the property, the demand for affordable housing of the District, the impact of termination of the Agreement upon neighborhood stabilization activities, and other factors and consideration which the Director may deem to be necessary and appropriate.

 

source

Final Rulemaking published at 36 DCR 8631, 8648 (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).