§ 31.2. Procedures for processing rental housing mortgage loan applications.
(a) Selection criteria for mortgage loans. Selection criteria for mortgage loans shall conform with the following:
(1) The selection criteria for making mortgage loans to applicants shall include, but not be limited to:
(i) Projects that have the promise of supplying well-planned, well-designed apartment units.
(ii) Location and suitability of the site relative to the proposed housing project.
(iii) Need for the proposed housing project.
(iv) Qualifications of the development team.
(v) Participation of minorities, minority business enterprises, females, and female business enterprises as development team members or as applicants.
(2) Where some applicants for mortgage loans satisfy the selection criteria set forth in paragraph (1)(i)—(iv) but not the criteria set forth in paragraph (1)(v), the Agency may make mortgage loans to other applicants who satisfy the selection criteria set forth in paragraph (1)(i)—(v).
(b) Rental housing program. The basic steps in the processing of an Agency rental housing program mortgage loan application under Article IV-A of the act (35 P. S. § § 1680.401a—1680.404a) are as follows:
(1) Preliminary application submission. Preliminary application submission shall conform with the following:
(i) The applicant shall submit a completed application with the required exhibits including evidence of land control, sketch plot plan, and location map. The Agency staff may inspect the proposed site and will analyze and evaluate the rental market the applicant proposes to attract to the proposed project development. The Agency will then advise the applicant of its findings.
(ii) The applicant and development team members must comply with the provisions of this part and the procedures and policies of the Agency regarding the finance, design, construction, marketing, operation, and management of housing financed by the Agency. The applicant and development team members must also comply with the Agency’s affirmative action program and policies and procedures regarding the finance, design, construction, marketing, operation, and management of housing. In order to insure that an applicant or a development team member claiming to be a minority business enterprise or a female business enterprise is such an enterprise within the meaning of § 31.1 (relating to definitions), the Agency shall after notice have the right to audit and inspect the books, agreements, contracts, and other relevant documents of any applicant or development team member making such claim.
(2) Feasibility submission. Feasibility submission shall conform with the following:
(i) If the Agency staff finds the site and market suitable for the proposed project, the applicant shall submit a feasibility submission which includes:
(A) Schematic—architectural—drawings.
(B) Preliminary cost estimate.
(C) Evidence of proper zoning.
(D) Proposed operating budget.
(E) Any other documentations deemed necessary by the Agency.
(ii) If the feasibility submission is determined to be ‘‘feasible’’ by the Agency staff, a feasibility analysis will be prepared and forwarded by the Agency staff to the Agency Board for its consideration. If the Board approves the feasibility requirements by the applicant, the Agency will then proceed to the commitment submission.
(3) Commitment submission. Commitment submission shall conform with the following:
(i) At this point, the applicant is required to submit a commitment submission which includes:
(A) Preliminary working drawings and outline specifications in sufficient detail for cost analysis by the Agency.
(B) Tenant selection plan, concerning which reference should be made to § 31.19 (relating to Tenant Selection Plan).
(C) Affirmative Action Program for Minority Employment to ensure equal opportunity.
(D) Affirmative Action Program for marketing rental to ensure equal opportunity.
(E) Management plan.
(F) All other items or documentation the Agency deems necessary.
(ii) When the applicant has submitted and completed the commitment requirements in acceptable form, the Agency staff will prepare and forward a commitment analysis to the Board of the Agency for its consideration. If the Board approves the commitment analysis, the Agency will issue a commitment letter to the applicant.
(4) Initial closing. Upon receipt of the commitment letterAgency, the applicant shall advise his attorney to provide the counsel of the Agency with the required legal closing documents. An initial closing date shall be mutually agreed upon, and the closing shall be held.
(5) Construction. The Agency will conduct regular on-site inspection of construction progress. Construction loan disbursements will be made monthly on the basis of work-in-place as approved by the Agency.
(c) Federally related mortgage loan program. The processing of an application for a Federally related or assisted mortgage loan from the Agency shall follow the procedures described in subsection (b) unless the characteristics of the Federal program make one or more of the steps unnecessary and shall be subject to such additional procedures as are necessary to ensure compliance with provisions of the Federal program and the act.
Source The provisions of this § 31.2 amended through February 15, 1980, effective February 16, 1980, 10 Pa.B. 760. Immediately preceding text appears at serial pages (38291) and (38292).
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