Section 10-B4304. CONDITIONS PRECEDENT TO FINAL APPROVAL AND PROJECT IMPLEMENTATION

 

4304.1Prior to final approval of loan closing on projects which have received conditional commitments, all conditions of the DHCD conditional commitment letter shall be met to the satisfaction of DHCD.

 

4304.2Final approval of loan closings shall also be subject to the applicant's meeting other requirements of the program to the satisfaction of DHCD, including but not limited to, the requirements set forth in §§4304.3 through 4304.11.

 

4304.3Each applicant shall agree to permit all inspections of the property and property records as DHCD and other District agencies deem necessary to ensure the quality of rehabilitation work and compliance with District laws and regulations during the construction period, including the verification of contractor payment requests, and to ensure continuing compliance with District laws and regulations during the term of the loan.

 

4304.4Each applicant shall agree to execute DHCD's standard HoFEDD contract documents, promissory note, deed of trust for the benefit of DHCD, and any other pertinent documents as determined by DHCD.

 

4304.5If the applicant is the lessee and not the owner of the property to be assisted with HoFEDD funds, the applicant, shall cause the property owner to execute a Deed of Trust for the benefit of DHCD at loan closing.

 

4304.6The applicant shall agree that the applicant or other members of the applicant's immediate family, shall not occupy the property assisted with HoFEDD funds.

 

4304.7The applicant shall demonstrate that the property meets the requirements of the zoning code of the District of Columbia for the use, location and occupancy level intended.

 

4304.8Each applicant shall have applied for a certificate of occupancy (C of O) for the property for which funding is sought prior to submission of any proposal. The C of O shall be appropriate to the use and occupancy level intended in. the proposal.

 

4304.9Each applicant shall agree to obtain a C of O at the completion of HoFEDD funded development and prior to occupancy.

 

4304.10Each applicant shall have executed a rent regulatory agreement consistent with §§4304.13 and 4304.14.

 

4304.11Each applicant shall agree to submit to DHCD annual audited property or project income and expense statements as well as annual corporate or partnership financial statements.

 

4304.12A resident manager may occupy a property assisted with HoFEDD funds.

 

4304.13Each applicant shall be required to enter into a rent regulatory agreement with DHCD consistent with the requirements of §4304.14 prior to the final approval of loan closing.

 

4304.14Each rent regulatory agreement shall include, but not be limited to, the following requirements:

 

(a)Provide that the income, rent and other eligibility requirements of §4302 shall be followed by the applicants;

 

(b)Establish the basis for the approval or disapproval of rent increases in the reserved units during the term of the agreement;

 

(c)Provide that the applicant shall give priority in renting vacant reserved units in the project to special needs individuals and families on the public housing waiting list of the Department of Housing and Community Development (DHCD), or on the DHCD waiting list for Section 8 or Housing Vouchers, Tenant Assistance Program (TAP) Certificates, or other similar forms of rental assistance as may be available;

 

(d)Provide that the applicant shall rent vacant non-reserved units in the project to persons specified in paragraph (c) of this subsection at all times on an equal basis with any other applicant; and

 

(e)Provide that DHCD may establish any means of enforcement of the provisions of the rent regulatory agreement as it determines to be necessary and consistent with this chapter and other provisions of D.C. law.

 

4304.15Each applicant shall be required to submit a tenant selection plan satisfactory to DHCD for the property assisted with HoFEDD funds. The Tenant Selection Plan shall include, but not be limited to, the following:

 

(a)Agreement by the applicant to the priority occupancy requirements of §4304.14(c);

 

(b)A plan for open and affirmative marketing on an equal opportunity basis to obtain applications for vacancies in the initial occupancy of the housing, which shall include public notice of the availability of units at least ninety (90) days prior to the expected date of initial occupancy; and

 

(c)Agreement by the applicant that housing vacancy applications shall be considered based on the date and time of application receipt, and that if more applications are received than available units, a waiting list shall be maintained, based on date and time of application for consideration when subsequent vacancies occur.

 

4304.16Where a HoFEDD assisted facility also has a multi-year commitment for rental assistance payments to lower and moderate income households under the Section 8 or Tenant Assistance Programs, DHCD may accept variations from the Tenant Selection Plan requirements of §4304.15 which are necessary to meet the requirements of the rental assistance programs.

 

4304.17If an applicant proposes that some or all of the dwelling units in a property be occupied by specific referral of special needs individuals or families from the D.C. Department of Human Services or other District agencies, the applicant shall submit to DHCD an executed agreement between the applicant and the District agency providing for the referral of appropriate clients to the applicant's HoFEDD assisted facility prior to DHCD final approval of loan closing. This agreement may be substituted for the tenant selection plan requirements of §4304.15 for the units covered by the agreement.

 

source

Final Rulemaking published at 35 DCR 3535, 3542 (May 13, 1988).