Section 10-B4305. ALLOWABLE PROJECT COSTS

 

4305.1The following project costs shall be eligible for loan assistance from the HoFEDD program:

 

(a)Predevelopment costs associated with the project which accrue subsequent to the selection or approval of an applicant. These costs may include the reasonable professional fees for architects, engineers, development consultants and attorneys. These costs shall be properly documented and shall not be allowable in excess of ten percent (10%) of total project cost;

 

(b)The cost of constructing a new property; Provided, that if CDBG funds are requested or used, it should be understood that new construction of buildings are normally ineligible under HUD regulations;

 

(c)The cost of site preparation and site improvements;

 

(d)The cost of property acquisition, including settlement and recordation fees and other related expenses;

 

(e)Repairs and rehabilitation of buildings and grounds to correct existing or incipient code violations or render a property appropriate for its proposed use and occupancy;

 

(f)Costs to provide for accessibility and adaptability in new construction or improvement of existing buildings and grounds;

 

(g)Refinancing pre-existing mortgages secured by the property, at the discretion of DHCD; Provided, that refinancing shall ordinarily not be approved in excess of fifteen percent (15%) of total project cost; and

 

(h)Relocation assistance as provided in §4306.

 

4305.2The following costs shall be ineligible to be financed with HoFEDD loans:

 

(a)Predevelopment costs associated with the project which accrue prior to DHCD's initial approval of a conditional commitment to an applicant;

 

(b)Costs for any type or quality of materials or elements of construction and rehabilitation scope that exceed, as determined by DHCD, a level necessary to make improvements which have a sufficient useful life to render the HoFEDD loan a sound investment, correct existing or incipient code violations, render a property appropriate for its proposed use and occupancy or provide for accessibility and adaptability;

 

(c)Any type of operating or social service support costs;

 

(d)The purchase of equipment for construction or other equipment not fixed to the property (with the exception of essential housing related items such as stoves or refrigerators);

 

(e)That portion of development costs excluded as a result of failure to benefit special needs individuals or families, or lower or moderate income households, as provided in §§4302.11, 4302.19, and 4302.20;

 

(f)Any cost unrelated to the pre-development or actual development of eligible properties; and

 

(g)Any cost prohibited by Federal or local law and regulations.

 

4305.3The development of properties shall comply with all applicable Federal and District of Columbia laws, codes and other regulations.

 

source

Final Rulemaking published at 35 DCR 3535, 3545 (May 13, 1988).