Administrative Code

Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
1/27/2020

Chapter 120. Rules and Regulations for Reach Virginia

Part I
Purpose and Applicability

13VAC10-120-10. Definitions.

"Application" or "proposal" means a written request to the authority by a prospective borrower for a loan or a written request to the authority by an applicant requesting the establishment of a loan program or other assistance under these rules and regulations.

"Loan" means any extension of credit which is made or financed or is to be made or financed pursuant to these rules and regulations.

"Loan program" means any program requested to be developed or implemented by the authority for the purpose of providing loans pursuant to these rules and regulations.

"REACH Virginia" means the funding from the authority net assets that are dedicated to reduce the interest rates or otherwise provide housing subsidies under its programs.

"VHF" means the housing fund created by the authority in 1989 and continued through June 30, 2005, from moneys in its general fund.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 1.1, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

13VAC10-120-20. Applicability and purpose.

The rules and regulations that follow will be applicable to loans or programs for loans which are made or financed or are proposed to be made or financed by the authority to borrowers who have presented proposals or applications for loans or loan programs from REACH Virginia.

The principal purpose of REACH Virginia is to create new housing opportunities for lower income Virginians. The highest priority is placed upon serving the elderly, disabled, and homeless as well as families in need of affordable housing not otherwise being serviced by other housing programs. REACH Virginia will also seek to provide support for comprehensive programs of neighborhood revitalization.

There will be special emphasis placed upon using REACH Virginia to attract and leverage other housing aid of all kinds including, but not limited to, financial, in kind, tax incentives and subsidies. REACH Virginia shall be used to encourage partnerships with both public and private interests including state agencies, localities and nonprofit organizations. The goal is to maximize the participation in, and resources devoted to, solving housing problems of lower income Virginians.

There will be an emphasis on creative uses of REACH Virginia which will result in the most effective use of its resources and advancement of the state of the art in providing decent housing at an affordable cost to lower income Virginians.

Notwithstanding anything to the contrary herein, the executive director is authorized to waive or modify any provision herein, where deemed appropriate by him, for good cause, to the extent not inconsistent with the Act.

All reviews, analyses, evaluations, inspections, determinations and other actions by the authority pursuant to the provisions of these rules and regulations shall be made for the sole and exclusive benefit and protection of the authority and shall not be construed to waive or modify any of the rights, benefits, privileges, duties, liabilities or responsibilities of the authority, the borrower, any contractors or any other parties under any agreements or documents relating to the loan.

These rules and regulations are intended to provide a general description of the authority's processing requirements for loans or loan programs under REACH Virginia and are not intended to include all actions involved or required in the processing and administration of such loans or loan programs. Because REACH Virginia is an experimental venture, in order to refine and improve its implementation, it is the intention of the authority to be flexible in its interpretation of the principles set forth herein for loans or loan programs of special merit. These rules and regulations are subject to change at any time by the authority and may be supplemented by additional policies, rules and regulations adopted by the authority from time to time. The authority reserves the right to change the amount of funds available under REACH Virginia or their uses as circumstances may reasonably dictate.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 1.2, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

Part II
Principles Governing REACH Virginia

13VAC10-120-30. General principles.

Project and program proposals will be given preference in the selection process to the extent they address the following:

1. Needs of the user group, which shall be primary;

2. Partnerships which maximize leveraging of REACH Virginia loans;

3. Extent to which the project is either innovative or demonstrates a possible "breakthrough" idea for serving lower income households or both;

4. Potential for the project to the replicable (i.e., demonstration);

5. Financial soundness and experience of the sponsor.

Proposals should seek to maximize the number of persons or projects which are served. Projects which highly leverage REACH Virginia moneys by attracting external subsidies and capital are encouraged.

The authority will seek an equitable geographic distribution of loans made from REACH Virginia.

All loans to be made from REACH Virginia shall comply with all applicable laws and regulations to which the authority is subject and with any rules and regulations of the authority applicable or to be applicable thereto and such other underwriting criteria as the executive director deems necessary to protect the interests of the authority as lender.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 2.1, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

Part III
Terms of Loans and Interest Rates

13VAC10-120-40. Terms of loans.

Thirty-five years shall be the maximum loan term, although longer amortization schedules may be utilized.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 3.1, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

13VAC10-120-50. Interest rates.

The interest rate on loans shall be determined from time to time by the authority. Such interest rates are expected to be lower than those which would be available from other sources and, at the same time, will provide continuing support for the authority's currently outstanding and future bond issues. The authority realizes that loans will have higher risks than alternative investments and will have little or no liquidity. If deemed necessary, all or a portion of the principal payments on loans may be deferred by the authority.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 3.2, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

Part IV
Proposals and Loan Applications

13VAC10-120-60. Solicitation of applications and proposals.

The executive director may from time to time take such action as he may deem necessary or proper in order to solicit proposals or applications for REACH Virginia. Such actions may include advertising in newspapers and other media, mailing of information to prospective applicants and other members of the public, and any other methods of public announcement which the executive director may select as appropriate under the circumstances. The executive director may impose requirements, limitations and conditions with respect to the submission and selection of applications and proposals as he shall consider necessary or appropriate. The executive director may cause market studies and other research and analyses to be performed in order to determine the manner and conditions under which available moneys in REACH Virginia are to be allocated and such other matters as he shall deem appropriate relating to the selection of applications and proposals or the establishment of programs. The authority may also consider and approve applications and proposals submitted from time to time to the authority without any solicitation therefor on the part of the authority.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 4.1, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

13VAC10-120-70. Authority programs under REACH Virginia.

Programs may be designed and operated by the authority if they are innovative, cannot currently be conventionally funded, or may serve as models for future state or bond funding.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 4.2, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.

13VAC10-120-80. Application and selection for processing.

Application for a loan or loan program shall be commenced by filing with the authority an application or proposal 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.

Based on the applications, proposals, documents and any additional information submitted by applicants or obtained from other sources, the authority shall select for processing those applications and proposals which it determines may best satisfy the purposes and principles of REACH Virginia set forth in 13VAC10-120-20 and 13VAC10-120-30 hereof.

Nothing contained herein shall require the authority to select any application or proposal which, in the judgment of the authority, does not adequately satisfy the purposes and principles of REACH Virginia set forth in 13VAC10-120-20 and 13VAC10-120-30 hereof.

The selection by the authority shall be based only on the documents and information received or obtained by it at that time and shall be subject to modification or reversal upon receipt and further analysis of additional documents or information at a later time.

After selection of an application or proposal for a loan has been made by the authority, such application will then be processed by the authority in accordance with one or both of the following: (i) any applicable rules and regulations of the authority or (ii) such written agreement or agreements with the applicant as the executive director may require to effect the purposes and principles hereof and to protect the authority's interest as lender.

After selection of an application or proposal for a loan program has been made by the authority, the authority may implement such program by one or more of the following: (i) applying any applicable existing rules and regulations of the authority, (ii) promulgating new rules and regulations therefor, or (iii) entering into such written agreement or agreements with the applicant or proposed borrowers as the executive director may require consistent with the purposes and principles hereof and the authority's interest as lender.

Any application or proposal for a loan or loan program to be assisted with the VHF shall be processed or implemented in accordance with the rules and regulations for the VHF that were in effect prior to November 1, 2006.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0012 § 4.3, eff. August 18, 1987; amended, Virginia Register Volume 4, Issue 12, eff. February 16, 1988; Volume 4, Issue 23, eff. July 19, 1988; Volume 5, Issue 21, eff. July 1, 1989; Volume 23, Issue 5, eff. November 1, 2006.



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