Section 10-B4503. APPLICATION ELIGIBILITY DETERMINATION

 

4503.1DHCD shall perform an initial review upon receipt of each application to determine its completeness in accordance with §4502, and its compliance with program eligibility requirements as specified in §§4503.3 through 4503.15.

 

4503.2DHCD may reject applications which are initially determined incomplete or ineligible and may, in its sole discretion, grant additional time as it deems appropriate to enable applicants to correct deficiencies identified during the initial evaluation of the application.

 

4503.3The following types of applicants shall be eligible to participate in the LAHDO Program:

 

(a)Individuals;

 

(b)For-profit corporations;

 

(c)Not-for-profit corporations; and

 

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

 

4503.4The following applicants shall be ineligible to participate in the LAHDO Program:

 

(a)Any person(s) (including employees, agents, consultants, officers, elected officials or appointed officials of the District of Columbia government or DHCD) determined to have a conflict of interest because of their responsibilities in the LAHDO Program, consistent with the provisions of the Ethics in Government Act of 1978 (18 U.S.C. 207 (Supp. IV 1980)) and D.C. Code §1-1461 (1987 Repl. Vol.).

 

(b)Individuals, corporations, partnerships or joint ventures officially excluded from participation in District of Columbia or federal contracting activities; and

 

(c)Individuals prohibited by act of law from participating in District of Columbia contracting activities.

 

4503.5Properties eligible for assistance shall contain not less than twenty (20) dwelling units after construction or rehabilitation and shall be located on a contiguous site(s). Housing types eligible for assistance shall include the following:

 

(a)Rental housing with multiple dwelling units which are available for lease to the general public, including high-rise, elevator or walk-up building(s), or attached, semi-detached or detached single family buildings (if they singly or collectively contain or will contain twenty (20) dwelling units);

 

(b)Cooperative housing, where a cooperative corporation shall own the property and issue proprietary leases to its stockholders, enabling each stockholder to occupy specific dwelling units within the property;

 

(c)Mixed-use housing, where the building(s) consists of commercial or retail space and housing accommodations; Provided, that not less than fifty-one percent (51%) of all net usable floor space in the building(s) is devoted to housing;

 

(d)Other types of owner-occupied housing which meet the requirements of applicable District laws and regulations and are determined by DHCD to be economically and legally feasible under this chapter;

 

(e)Single room or congregate occupancy properties, which may include the existence of common kitchens, dining rooms and shared bathing facilities; Provided, that the accommodations include not less than twenty (20) individual or shared sleeping rooms, after construction or rehabilitation, located on contiguous sites; and

 

(f)Properties converted from institutional, commercial, industrial or retail use, to a housing use as specified in this subsection; Provided, that the proposed reuse is consistent with applicable zoning, planning and building code requirements of the District of Columbia.

 

4503.6Properties ineligible for assistance shall include the following:

 

(a)Properties which shall have retail or commercial uses which compose more than forty-nine percent (49%) of all net usable floor space;

 

(b)Properties which shall have less than twenty (20) dwelling units after construction or rehabilitation;

 

(c)Hospitals, nursing homes, hospices, mental or physical therapy clinics or facilities;

 

(d)Hotels, boarding houses, youth hotels, motels or inns, unless planned for conversion to an eligible property consistent with §4503.5(f);

 

(e)Penal institutions and correctional facilities; and

 

(f)Dwelling accommodations in trailer parks.

 

4503.7Only properties located within the District of Columbia shall be eligible for LAHDO Program assistance.

 

4503.8Each applicant shall have and demonstrate evidence satisfactory to DHCD of site control of the specified property to be developed. Evidence of site control may include, but is not limited to, the following:

 

(a)Title by deed or similar instrument evidencing ownership;

 

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

 

(c)Other documents, purchase or sales agreement, options, or leases that DHCD in its sole discretion finds acceptable.

 

4503.9To be eligible for assistance with LAHDO Program funds, selected projects shall reserve not less than twenty-five percent (25%) of all dwelling units (or rooms, for single room occupancy properties) for occupancy by and to be affordable to lower-income individuals or families (referred to as "reserved units").

 

4503.10Reserved units shall be made available to lower-income individuals or families for the term of the LAHDO land lease at rents or cooperative carrying costs as follows:

 

(a)The maximum allowable rents or cooperative carrying costs for reserved units, including utilities, shall not exceed an amount to be determined periodically by DHCD equal to thirty percent (30%) of one-twelfth (1/12) of the annual income limits for very low income households, established under the U.S. Department of Housing and Urban Development's Section 8 Housing program, applied as follows:

 

Type of Unit	Applicable Section 8 Very Low Income Limit
Single Room and Efficiency	One person limit
1 Bedroom	Two person limit
2 Bedroom	Four person limit
3 Bedroom	Five person limit
4 Bedroom	Seven person limit
5 Bedroom	Eight person limit

 

(b)Whenever the provision of essential utilities is not included as part of the rent or cooperative carrying cost, a reasonable allowance for utilities, as determined by DHCD, shall be subtracted from the maximum allowable rents or cooperative carrying costs.

 

4503.11The applicant shall certify to DHCD that the applicant shall either rent or sell all reserved units in the project only to lower-income households for the term of the land lease.

 

4503.12Units in each project shall be developed to be accessible for physically handicapped individuals or adaptable for occupancy by persons with or without physical handicaps consistent with the requirements of the District of Columbia Building Code.

 

4503.13If vacant, units required by §4503.12 shall be made available on a priority basis for occupancy by physically handicapped persons during the term of the LAHDO Program lease.

 

4503.14Properties which are occupied at the time of submission of the Program application, or which shall be occupied during rehabilitation or conversion, shall be eligible for participation in the LAHDO Program; Provided, that the relocation requirements of §4507 are met. Priority consideration shall be given as specified under §4504.2.

 

4503.15The proposed financial elements of the application shall meet any underwriting standards established and previously disclosed by DHCD.

 

source

Final Rulemaking published at 36 DCR 8507, 8512 (December 22, 1989).