Section 10-B4302. ELIGIBILITY

 

4302.1The following applicants shall be eligible to participate in the HoFEDD Program:

 

(a)For-profit corporations;

 

(b)Not-for-profit corporations; and

 

(c)Partnerships, limited partnerships and joint ventures, engaged in for-profit or not-for-profit activities.

 

4302.2Housing types eligible for assistance, including community based residential facilities, include the following:

 

(a)Single family properties to be developed as congregate housing facilities.  Single family properties shall consist of one (1) dwelling unit, and may, by structure, be an apartment unit or a detached, semi-detached, or attached house. Congregate housing facilities shall include the existence of common kitchen and dining facilities for all residents and may include shared bath facilities;

 

(b)Multi-family properties to be developed as congregate housing or independent living facilities. Multi-family properties shall consist of two (2) or more dwelling units, and may be either apartment buildings or subdivided single-family properties; and

 

(c)Single room occupancy properties which may include the existence of common kitchen and dining facilities and may also include shared bath facilities.

 

4302.3Only housing located in the District of Columbia shall be eligible for HoFEDD assistance.

 

4302.4Each applicant shall demonstrate the capacity to repay the loan to DHCD, and shall meet reasonable credit standards as determined by DHCD.

 

4302.5Each applicant shall demonstrate the capacity to develop the property for which it is seeking assistance. The demonstration of capacity may include evidence, satisfactory to DHCD, that the applicant has successfully undertaken and completed a similar development on one or more previous occasions.

 

4302.6Where sufficient experience is not demonstrated by the applicant alone, demonstration of capacity may be considered in the form of allied organizations or individual professionals with requisite experience being included on an applicant's development team.

 

4302.7Each applicant shall have or be able to obtain and demonstrate evidence satisfactory to DHCD of site control of the specified property to be developed. Evidence of site control shall include, but not be limited to, the following:

 

(a)Title, deed, or similar instrument of ownership;

 

(b)Fully executed purchase contract, installment contract, option agreement or similar contractual instrument;

 

(c)Long term leasehold interests, including a lease option or a fully executed long term lease; or

 

(d)Other title documents, purchase or sales contracts, options, or leases that DHCD in its sole discretion finds acceptable.

 

4302.8To be eligible for assistance with HoFEDD funds, a project shall provide for occupancy which meets both the following requirements:

 

(a)Adequate provisions for occupancy by lower and moderate income households consistent with §§4302.9 through 4302.14; and

 

(b)Adequate provisions for occupancy by special needs individuals and families consistent with §§4302.16 through 4302.18.

 

4302.9The requirement of §4302.8(a) shall be met by providing dwelling units which are reserved for (referred to as reserved units) and made available at rents which are affordable by lower and moderate income households for the term of the loan, or for ten (10) years, whichever is greater.

 

4302.10Projects which provide more than fifty percent (50%) of the dwelling units in a property as reserved units for lower and moderate income households shall be eligible for HoFEDD funds up to one hundred percent (100%) of total development costs.

 

4302.11Projects which provide fifty percent (50%) or less of the dwelling units in a property as reserved units for lower and moderate income households shall be eligible for HoFEDD funds up to the portion of total development costs which does not exceed the percentage of reserved units in the project; Provided, that the percentage of reserved units for any project assisted shall be at least twenty percent (20%).

 

4302.12In determining compliance with the requirements in this section for reserved units, the following requirements shall apply:

 

(a)Affordable rents shall not exceed an amount to be determined periodically by DHCD which shall be no higher than thirty percent (30%) of the monthly gross income of lower and moderate income households of appropriate household size in relation to unit type, as specified in §4302.13;

 

(b)In determining the number of units for compliance with one of the percentage requirements of this section, any fraction of a whole number shall be rounded up to the next highest whole number; and

 

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

 

4302.13The 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 annual income limits for very low income households under the Federal Section 8 Program, applied as follows:

 

Type of Unit	Applicable Section 8 Very Low Income Limit
Efficiency ( or bed in congregate facility) 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom	One person limit Two person limit Three person limit Five person limit Seven person limit Eight person limit

 

4302.14The applicant shall certify to DHCD that the applicant shall rent all reserved units in the project only to lower and moderate income households.

 

4302.15At least fifteen percent (15%) of the dwelling units for each property shall be developed to the accessible for physically handicapped individuals or adaptable for occupancy by persons with or without physical handicaps. At least one-third of these units, or at least five percent (5%) of the total units, must be accessible for physically handicapped individuals.

 

4302.16Applicants may request a waiver of the requirements of §4302.15 for existing buildings based on a clear and convincing showing that meeting the requirements would present substantial practical difficulty or undue economic hardship of a substantial nature.

 

4302.17The requirement of §4302.8(b) shall be met by providing dwelling units which are made available for occupancy to special needs individuals and families as listed in §4302.2 for the term of the loan, or for ten (10) years, whichever is greater, consistent with §4302.18 or §4302.19.

 

4302.18Projects which provide more than fifty percent (50%) of the dwelling units in a property for special needs individuals or families shall be eligible for HoFEDD funds up to one hundred percent (100%) of total development costs.

 

4302.19Projects which provide fifty percent (50%) or less of the dwelling units in a property for special needs individuals or families shall be eligible for HoFEDD funds up to the portion of total development costs which does not exceed the percentage of special needs units in the project; Provided, that the percentage of special needs units for any project assisted shall be at least twenty percent (20%).

 

4302.20If the percentage of special needs units in a project is different from the percentage of reserved units for lower and moderate income households in the project, or is applied to different units within the project, HoFEDD financing shall be provided in accordance with the provisions of §§4302.10 and 4302.11.

 

4302.21If the project is occupied at the time of proposal submission, the requirements of §4306 shall apply.

 

4302.22Rental assistance payments from the District's Tenant Assistance Program or the Federal Section 8 or Housing Voucher Program, if they be available, are eligible for use in projects developed with HoFEDD funds. However, rental assistance payments shall not be used for financing or construction of a HoFEDD project.

 

source

Final Rulemaking published at 35 DCR 3535, 3537 (May 13, 1988).