(1) In addition to
the alteration, improvement or modification of an existing structure,
Rehabilitation or Preservation with respect to the HOME Program and
Rehabilitation or Preservation with respect to the Housing Credit Program also
includes:
(a) For HOME Developments, moving an
existing structure to a foundation constructed with HOME funds. Rehabilitation
may include adding rooms outside the existing walls of a structure, but adding
a housing unit is considered new construction.
(b) For Competitive Housing Credit
Developments, Rehabilitation or Preservation costs during any 24-month period
must equal or exceed an average of $40, 000 in hard rehabilitation costs per
unit and are in addition to the 20% of the property's adjusted basis
requirements and minimum qualified basis per low income unit set forth in
Section
42(e)(3)(A)(ii)
of the IRC. For purposes of this subsection, "hard rehabilitation costs"
include site improvements, off-site improvements, rehabilitation costs for
physical improvements to the property, and construction contingency and do not
include general contractor fees or overhead, general requirements, architect
and engineering fees, permit fees, financing or soft costs, or developer
fees.
(2) For purposes of
this rule chapter, in accordance with Section
42 of the IRC, a for-profit entity
wholly owned by one or more qualified non-profit organizations will constitute
a Non-Profit entity. The purpose of the Non-Profit must be, in part, to foster
low-income housing and such purpose must be reflected in the Articles of
Incorporation of the Non-Profit entity. A Non-Profit entity shall own an
interest in the Development, either directly or indirectly; shall not be
affiliated with or controlled by a for-profit Corporation; and shall materially
participate in the development and operation of the Development throughout the
total affordability period as stated in the Land Use Restriction Agreement and
the Extended Use Agreement.
(3)
Total Development Cost includes the following:
(a) The cost of acquiring real property and
any buildings thereon, including payment for options, deposits, or contracts to
purchase properties, of which the total cost cannot exceed the appraised value
of the real property as determined in the credit underwriting
process.
(b) The cost of site
preparation, demolition, and development.
(c) Any expenses relating to the issuance of
tax-exempt bonds or taxable bonds related to the particular
Development.
(d) Fees in connection
with the planning, execution, and financing of the Development, such as those
of architects, engineers, attorneys, accountants, Developer Fee, and the
Corporation. However, fees of the Applicant's or Developer's attorney(s)
awarded in conjunction with litigation against the Corporation with respect to
a Development shall not be included in Total Development Cost.
(e) The cost of studies, surveys, plans,
permits, insurance, interest, financing, tax and assessment costs, and other
operating and carrying costs during construction, rehabilitation, or
reconstruction of the Development.
(f) The cost of the construction,
rehabilitation, and equipping of the Development.
(g) The cost of land improvements, such as
landscaping and offsite improvements related to the Development, whether such
costs are paid in cash, property, or services. However, offsite improvements
are not eligible to be paid with HOME funds.
(h) Expenses in connection with initial
occupancy of the Development.
(i)
Allowances for contingency reserves and any anticipated operating reserves as
recommended by the Credit Underwriter and approved by the
Corporation.
(j) The cost of such
other items, including relocation costs, indemnity and surety bonds, premiums
on insurance, and fees and expenses of trustees, depositories, and paying
agents for the Corporation's bonds, for the construction or
Rehabilitation/Moderate Rehabilitation/Substantial Rehabilitation of the
Development.
(4) In
determining the income standards of Eligible Persons for its various programs,
the Corporation shall take into account the following factors:
(a) Requirements mandated by federal
law;
(b) Variations in
circumstances in the different areas of the state;
(c) Whether the determination is for rental
housing; and
(d) The need for
family size adjustments to accomplish the purposes set forth in this rule
chapter.
With respect to the HC Program, an Eligible Person shall
mean a Family having a combined income which meets the income eligibility
requirements of the HC Program and Section
42 of the
IRC.
(5) Financial
Beneficiary and Affiliate, as defined in Rule
67-48.002, F.A.C., do not
include third-party lenders, third-party management agents or companies,
third-party service providers, Housing Credit Syndicators, credit enhancers
regulated by a state or federal agency, or contractors whose total fees are
within the limit described in Rule
67-48.0072, F.A.C.
(6) For computing any period of time allowed
by this rule chapter, the day of the event from which the designated period of
time begins to run shall not be included. The last day of the period so
computed shall be included unless it is a Saturday, Sunday or legal holiday, in
which event the period shall run until the end of the next day which is neither
a Saturday, Sunday or legal holiday.
(7) The Corporation must approve, pursuant to
rule Chapter 67-53, F.A.C., the Applicant's selection of a management company
prior to the leasing of any units in the Development. The owner of a
Development must notify the Corporation of an intended change in the management
company prior to such company assuming responsibility for the
Development.
(8) Unless otherwise
stated in a competitive solicitation, disclosure of the Principals of the
Applicant must comply with the following:
(a)
The Applicant must disclose all of the Principals of the Applicant (first
principal disclosure level). For Applicants seeking Housing Credits, the
Housing Credit Syndicator/Housing Credit investor need only be disclosed at the
first principal disclosure level and no other disclosure is required;
(b) The Applicant must disclose all of the
Principals of all the entities identified in paragraph (a) above (second
principal disclosure level);
(c)
The Applicant must disclose all of the Principals of all of the entities
identified in paragraph (b) above (third principal disclosure level). Unless
the entity is a trust or a non-profit as defined in Section 42(h)(5)(C),
subsection 501(c)(3) or subsection
501(c)(4) of the
IRC, all of the Principals must be natural persons, A non-profit entity may be
identified at the third principal disclosure level if the non-profit wholly
owns a real estate development subsidiary identified at the second principal
disclosure level; and
(d) If any of
the entities identified in paragraph (c) above are a trust or a non-profit, the
Applicant must disclose all of the Principals of the trust or a non-profit
(fourth principal disclosure level), all of whom must be natural
persons.
(9) Unless
otherwise stated in a competitive solicitation, disclosure of the Principals of
each Developer must comply with the following:
(a) The Applicant must disclose all of the
Principals of the Developer (first principal disclosure level); and
(b) The Applicant must disclose all of the
Principals of all the entities identified in paragraph (a) above (second
principal disclosure level).
(c) A
competitive solicitation may require disclosure of a natural person Principal
of the Developer to meet Developer experience
requirements.
Notes
Fla. Admin. Code Ann. R. 67-48.0075
Rulemaking Authority
420.507,
420.508 FS. Law Implemented
420.5087,
420.5089,
420.5099
FS.
New 2-7-05, Amended
1-29-06, 4-1-07, 3-30-08, 8-6-09, 11-22-11, 10-9-13, Amended by
Florida
Register Volume 40, Number 185, September 23, 2014 effective
10/8/2014, Amended by
Florida
Register Volume 42, Number 169, August 30, 2016 effective
9/15/2016,
Repromulgated by
Florida
Register Volume 43, Number 090, May 9, 2017 effective
5/24/2017, Amended
by
Florida
Register Volume 44, Number 124, June 26, 2018 effective
7/8/2018, Amended by
Florida
Register Volume 45, Number 123, June 25, 2019 effective
7/11/2019, Amended
by
Florida
Register Volume 46, Number 112, June 9, 2020 effective
6/23/2020,
Repromulgated by
Florida
Register Volume 47, Number 086, May 4, 2021 effective
5/18/2021, Amended
by
Florida
Register Volume 48, Number 120, June 21, 2022 effective
7/6/2022, Amended by
Florida
Register Volume 49, Number 114, June 13, 2023 effective
6/28/2023.
New 2-7-05, Amended 1-29-06, 4-1-07, 3-30-08, 8-6-09,
11-22-11, 10-9-13, 10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18,
7-11-19, Repromulgated 6-23-20, 5-18-21, Amended 7-6-22,
6-28-23.