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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 14. HOUSING |
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Chapter 14-28. RESIDENTIAL REHABILITATION ASSISTANCE PROGRAM |
Section 14-2805. UNDERWRITING STANDARDS
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2805.1DHCD rehabilitation loans to owner-occupants shall be based on an analysis of the owner’s ability to afford a loan.
2805.2No DHCD loan shall be made to any applicant who can qualify for a loan for the full amount required from a private lending institution.
2805.3DHCD loans shall be made only to eligible applicants for the portion of the new debt required to rehabilitate an applicant’s property which cannot be borrowed from a private lending institution, based on the following underwriting standards:
(a)The applicant’s total monthly expenses for payment of principal, interest, taxes, and insurance (also collectively referred to in this chapter as “PITI”) related to the property shall not exceed thirty-six (36%) of the applicant’s gross monthly income; and
(b)The applicant’s total monthly payments for all installment debt shall not exceed forty-two percent (42%) of the applicant’s gross monthly income.
2805.4The total amount of a DHCD rehabilitation loan, plus any other indebtedness secured by the property, shall not exceed ninety percent (90%) of the ‘as-is’ value of the property subject to completion of rehabilitation, except as otherwise provided in § 2805.5.
2805.5The Director may approve the use of up to one hundred percent (100%) of the ‘as-is’ value of the property subject to completion of rehabilitation in determining the maximum principal for any DHCD loan if it is determined that the objectives of the rehabilitation loan program cannot be achieved otherwise.
2805.6[Deleted]