Section 10-B5705. CRITERIA FOR REAL PROPERTY ACQUISITION LOANS

 

5705.1The proposed commercial use shall be in compliance with the Zoning Regulations, any applicable Urban Renewal Plan, or the Comprehensive Plan, of which the one exercising the most restrictive use controls shall govern.

 

5705.2Where more than one application is submitted for an individual building, each application shall be evaluated with respect to the following factors:

 

(a)Proposed retail/service use;

 

(b)Compatibility with existing retail/service uses within the business district;

 

(c)Economic feasibility; and

 

(d)Past business experience of applicant.

 

5705.3A lottery method shall be used to select the Real Property Acquisition Loan recipient if there are two (2) or more proposals of equal merit per available property. Those applicants not selected shall be afforded an opportunity to obtain a property for a business elsewhere.

 

5705.4A Real Property Acquisition Loan recipient shall have three (3) months in which to arrange satisfactory financing after being notified of selection unless extended by the Board for good cause shown.

 

5705.5Only one (1) building shall be conveyed to each potential Real Property Acquisition Loan recipient.

 

5705.6No funds shall be distributed hereunder until a timetable has been approved by the Board to bring the property up to D.C. Code requirements.

 

5705.7The total of the District's loans on any real property acquired in connection with a project shall not exceed eighty percent (80%) of the appraised value of the property to be purchased and/or renovated.

 

5705.8The District's loan may be subordinated to any private lender's or private investor's loan(s), but the combined amount of the District's loan(s), and any private lender's or investor's loan(s), shall not exceed ninety percent (90%) of the appraised value of the property.

 

5705.9The Real Property Acquisition Loan recipient shall be the operator of the business and shall occupy or manage (as a branch operation) the business that is established with the Real Property Acquisition funds for a minimum of five (5) years from the date of initial receipt of Real Property Acquisition funds.

 

5705.10After the expiration of the five (5) year period, the property or business may be sold privately. If the Real Property Acquisition recipient sells the property or business prior to the expiration of the five (5) year period, and a net profit is realized from the sale, the District shall share in the net profits realized as follows:

 

YEAR	DISTRICT SHARE OF PROFITS
Year 1	50
Year 2	40
Year 3	30
Year 4	20
Year 5	10

 

5705.11Loan documents for a Real Property Acquisition Loan shall provide that the Economic Development Finance Corporation shall have the right to cure a default on the loan within the initial five (5) period of the loan and shall have the rights as specified.

 

source

Final Rulemaking published at 34 DCR 2680, 2684 (April 24, 1987).