Virginia Law

Application for a mortgage loan shall be commenced by filing with the authority an application, on such form or forms as the executive director may from time to time prescribe, together with such documents and additional information as may be requested by the authority, including, but not limited to:

1. Financial statement of the applicant, the general contractor and the principals therein and information regarding other projects in which the applicant, general contractor and principals therein are or have been involved.

2. If the applicant is incorporated, a corporate resolution setting forth the applicant's borrowing capacity and a certificate of incumbency identifying officers of the corporation.

3. Information regarding the business status and experience of the applicant, general contractor, and any other members of the proposed development team.

4. Plans and specifications for roads and streets which are to serve the proposed development.

5. Site plans and specifications showing location of homes and streets, topography, ground cover, easements, drainage, lots, driveways and utilities.

6. Plans and specifications for each unit type.

7. The subdivision plat which has been or will be recorded.

8. Any documents required by the authority to evidence compliance with all conditions and requirements necessary to own, construct, and sell the units in the proposed development, including local governmental approvals, proper zoning status, licenses and other necessary legal authorizations, and any easements necessary for the construction and occupancy of the development.

9. Any option or sales contract to acquire the site of the proposed development.

10. Area and location maps indicating location of the proposed development and public and private facilities in the immediate vicinity of the proposed development.

11. Evidence of the availability and capacity of public water and sewer systems and/or approval of individual well and/or septic systems by lot by the appropriate authority and/or all necessary permits for the construction of private utility systems with supporting documents.

12. The applicant's (i) best estimates of the housing development costs and the components thereof, (ii) proposed mortgage loan amount, and (iii) proposed sales prices.

13. The applicant's marketing plan, including (i) the proposed sales prices of the single family dwelling units; (ii) the utilization of any mortgage insurance, subsidy or other assistance from the federal government or any other source; (iii) the proposed income levels of purchasers therefor, which income levels shall not exceed the income limitations of the authority applicable to the single family dwelling units; and (iv) the marketing strategies, techniques and procedures to be followed with respect to the sale of the single family dwelling units (including any affirmative marketing efforts and media advertising plans) and the identity and qualifications of the proposed marketing agent of the applicant.

The executive director may for good cause permit the applicant to file one or more of the foregoing forms, documents and information at a later time, and any review, analysis, determination or other action by the authority or the executive director prior to such filing shall be subject to the receipt, review and approval of such forms, documents and information.

The executive director may require that the nonrefundable processing fee of $500 accompany the application. If after a site inspection by the authority the application is disapproved, then the authority will deduct its expenses to date and will refund the balance.

An appraisal of the land and any improvements to be retained and used as a part of the development will be obtained at this time or as soon as practical thereafter from an independent real estate appraiser selected by the authority. The executive director may require the applicant to reimburse the authority for the cost of such appraisal. The executive director may also obtain such other reports, analyses, information and data as he deems necessary or appropriate to evaluate the proposed development.

If at any time the executive director determines that the applicant is not processing the application with due diligence and best efforts or that the application cannot be successfully processed to commitment and initial closing within a reasonable time, he may, in his discretion, terminate the application and retain any fees previously paid to the authority.

The authority's staff shall review the application and any additional information submitted by the applicant or obtained from other sources by the authority in its review of the proposed development. Such review shall be performed in accordance with § 36-55.33:1 D 2 of the authority's Act and shall include, but not be limited to, the following:

1. An analysis of the site characteristics, surrounding land uses, available utilities, transportation, employment opportunities, recreational opportunities, shopping facilities and other factors affecting the site;

2. An evaluation of the ability, experience and financial capacity of the applicant and general contractor and the qualifications of any other members of the proposed development team;

3. An evaluation of the estimated construction costs, the proposed sales prices, and the design and structure of the proposed development;

4. A market analysis as to the present and projected demand for the proposed development in the market area, including: an evaluation of existing and future market conditions; an analysis of trends and projections of housing production, employment and population for the market area; a site evaluation (such as access and topography of the site, neighborhood environment of the site, public and private facilities serving the site and present and proposed uses of nearby land); and an analysis of competitive projects;

5. A review of the marketing plan, including its effect on the economic feasibility of the proposed development and its efficacy in carrying out the programs and policies of the authority;

6. An analysis of the plans and specifications, including the functional use and living environment of the units, the marketability of the units as designed, the amenities, equipment and facilities to be provided, and the maintenance and energy conservation characteristics of the units in the proposed development.

Based on the authority's review of the applications, documents and any additional information submitted by the applicants or obtained from other sources by the authority in its review of the proposed developments, the executive director shall prepare a recommendation to the board that a mortgage loan commitment be issued to the applicant with respect to the proposed development if he determines that all of the foregoing criteria have been satisfied.

1. The vicinity of the proposed development is and will continue to be a residential area suitable for the proposed development and is not now, nor is it likely in the future to become, subject to uses or deterioration which could cause undue depreciation in the value of the units in the proposed development or which could adversely affect its marketability or economic feasibility.

2. There are or will be available on or before the estimated completion date (i) direct access to adequate public roads and any necessary public utilities and (ii) such public and private facilities (such as schools, churches, transportation, retail and service establishments, parks, recreational facilities and major public and private employers) in the area of the proposed development as the executive director determines to be necessary or desirable for use and enjoyment by the contemplated residents.

3. The characteristics of the site (such as its size, topography, terrain, soil and subsoil conditions, vegetation, and drainage conditions) are suitable for the construction of the proposed development, and the site is free from any defects which would have a materially adverse effect on such construction.

4. The location of the proposed development will promote and enhance the marketability of the units to the person and families intended for ownership and occupancy thereof.

5. The applicant either owns the site of the proposed development of has the legal right to acquire the site in such manner, at such time and subject to such terms as will permit the applicant to process the application and consummate the initial closing (any such ownership acquired or to be acquired shall be free of any covenants, restrictions, easements, conditions, or other encumbrances which would adversely affect the authority's security or the construction or sale of the proposed development).

6. The design of the proposed development and the units therein is attractive and esthetically appealing, will contribute to the marketability of the proposed development, makes use of materials to reduce energy and maintenance costs, provides for units with adequate, well-designed space, includes equipment and facilities customarily used or enjoyed in similar developments in the area by the contemplated residents, and will otherwise provide safe, habitable and pleasant living accommodations and environment for such residents.

7. Any administrative, community, health, educational, recreational, commercial or other nonhousing facilities to be included in the proposed development are incidental to the proposed development and are necessary, convenient or desirable with respect to the occupancy and ownership of the units in the proposed development.

8. The applicant's estimates of housing development costs (i) include all costs necessary for the development, construction and sale of the proposed development, (ii) are reasonable in amount, (iii) are based upon valid data and information, and (iv) are comparable to costs for similar single family developments.

9. The proposed sales prices are in amounts which (i) do not exceed any applicable maximum sales prices established by the authority, (ii) will permit the applicant to recover his costs of development, construction and sale of the proposed development and to receive a reasonable profit as determined by the executive director, (iii) will be affordable by the persons and families intended to be assisted by the authority and (iv) will permit the successful marketing of the units to such persons and families within the term of the mortgage loan.

10. The applicant and general contractor have the experience, ability and financial capacity necessary to carry out their respective responsibilities for the acquisition, construction, marketing, and sale of the proposed development.

11. Any other members of the proposed development team have the qualifications necessary to perform their respective functions and responsibilities.

12. The marketing plan submitted by the applicant shall comply with these rules and regulations and shall provide for actions to be taken such that (i) the dwelling units in the proposed development will be sold and occupied within the term of the mortgage loan by those eligible persons and families who are expected to be served by the proposed development and (ii) the residents will be selected without regard to race, color, religion, creed, sex or national origin.

13. In the case of any development to be insured or otherwise assisted or aided by the federal government, the proposed development will comply in all respects with any applicable federal laws, rules and regulations, and adequate federal insurance, subsidy, or assistance is available for the proposed development and will be expected to remain available during the term of the mortgage loan.

14. The proposed development will comply with (i) all applicable federal laws and regulations governing the federal tax exemption of any notes or bonds issued or to be issued by the authority to finance the proposed development and (ii) all requirements set forth in the resolutions pursuant to which any such notes or bonds are issued or to be issued.

15. The prerequisites necessary for the owner, general contractor and other members of the applicant's development team to acquire, own, construct and sell the units in the proposed development have been satisfied or can be satisfied prior to initial closing. These prerequisites include, but are not limited to obtaining: (i) site plan approval, (ii) proper zoning status, (iii) assurances of the adequacy and availability of the requisite public or private utilities and services, (iv) commitments by public officials to construct such public improvements and accept the dedication of streets and easements that are necessary or desirable for the construction and occupancy of the proposed development, (v) licenses and other legal authorizations necessary to permit the owner, general contractor, and any other member of the applicant's development team to perform his or its duties and responsibilities in the State of Virginia, and (vi) building permits.

16. The proposed development will not have a materially adverse effect on any other housing development located or to be located in the same market area for ownership and occupancy by the same type of resident and financed or to be financed by the authority.

17. The application and proposed development conform to any requirements, limitations and conditions imposed by the executive director pursuant to 13VAC10-30-40 hereof.

18. The proposed development will contribute to the implementation of the policies and programs of the authority in providing decent, safe and sanitary rental housing for low and moderate income persons and families who cannot otherwise afford such housing and will assist in meeting the need for such housing in the market area of the proposed development.

19. It appears that the proposed development will otherwise continue to be processed through initial closing and will be completed and sold, all in compliance with the Act and these rules and regulations, the documents and contracts executed at initial closing, any applicable federal laws, rules and regulations, and the provisions hereof and without unreasonable delay, interruptions or expense.

20. The proposed development will comply with all applicable state and local laws, ordinances, regulations, and requirements.

21. The proposed development will provide valid and sound security for the authority's mortgage loan and will contribute to the fulfillment of the public purposes of the authority as set forth in its Act.

22. Subject to a final determination by the board, the financing of the proposed development will meet the applicable requirements set forth in § 36-55.39 A of the Code of Virginia.

Proposed developments shall be selected only to the extent that the authority has or expects to have funds available from the sale of its notes or bonds or from other sources to finance mortgage loans. If funds are insufficient to finance all of the mortgage loans for the proposed developments then being considered, the executive director shall select those proposed developments which best satisfy the foregoing criteria.

In the selection of an application, the executive director may take into account the desirability of allocating funds to different housing sponsors throughout the Commonwealth.

Nothing contained herein shall require the authority to select any application which, in the judgment of the executive director, does not adequately satisfy the foregoing criteria.

If the executive director determines that the foregoing criteria are satisfied and that he will recommend approval of the application and issuance of the commitment, he shall present his analysis and recommendations to the board. If the executive director determines that one or more of the foregoing criteria have not been adequately satisfied, he may nevertheless in his discretion recommend to the board that the application be approved and that a mortgage loan commitment be issued subject to the satisfaction of such criteria in such manner and within such time period as he shall deem appropriate. Prior to the presentation of his recommendations to the board, the executive director may require the payment by the applicant of a nonrefundable processing fee in an amount equal to one-half of 1.0% of the then estimated mortgage loan amount less any processing fee previously paid by the applicant. Such fee shall be applied at initial closing toward the payment of the authority's financing fee.

The board shall review and consider the analysis and recommendation of the executive director, and if it concurs with such recommendation, it shall by resolution approve the application and authorize the mortgage loan and the issuance of a commitment therefor, subject to such terms and conditions as the board shall require in such resolution. Such resolution or commitment shall set forth the estimated total housing development costs and the principal amount and term of the mortgage loan and shall include such terms and conditions as the authority considers appropriate with respect to the construction of the proposed development, the marketing and sale of the single family dwelling units in such development (including any income limits or maximum sales prices lower than those established in the authority's rules and regulations), the disbursement and repayment of the mortgage loan, assurances of successful completion of the proposed development and all other matters related to the construction and sale of the proposed development. Such resolution or commitment may include a financial analysis of the proposed development setting forth the sales price limits for the single family dwelling units within the proposed development and a schedule of the estimated housing development costs.

If the executive director determines not to recommend approval of the application and issuance of a commitment, he shall so notify the applicant. If any application is not so recommended for approval, the executive director may select for processing one or more applications in its place.