Final Development Selection
All Credit Underwriting Reports will be presented to the HFA Board for consideration. The HFA will review the Credit Underwriter’s conclusions regarding whether the financing structure is feasible and whether the development is “ready” to proceed with financing.
In considering the information provided by the developer, the Credit Underwriting Report and the recommendations of the Credit Underwriter, the HFA requires that developments meet a minimum test for “readiness” as follows:
- a development must have received proper zoning from the governing jurisdiction(s), with evidence of such zoning being satisfactory to HFA staff and the Credit Underwriter;
- a development must have evidence of site control, with such evidence being satisfactory to HFA staff and the Credit Underwriter; and
- the HFA must have received a final Credit Underwriting Report stating that the above items have been satisfied, and that the development is feasible, and recommending that the HFA proceed with financing.
- The HFA will award allocation to those developments that were ranked and determined to be “ready” as follows:
- if the total dollar amount of SFCP funds requested by the developments which were ranked and are deemed “ready” exceeds the HFA’s expected SFCP funding (i.e., there is an “over-subscription”), then the developments will be awarded funding pursuant to the ranking order established by the HFA Board, subject to the Conditions set forth below in this subsection; or
- if the total dollar amount of SFCP funding requested by the developments which were ranked and are deemed “ready” is less than the allocation for single family developments, (i.e., there is an “under-subscription”), then all developments that have been selected and ranked will be awarded allocation, subject to the Conditions set forth below in this subsection.
All awards of allocation by the HFA are subject to: (i) the developer’s compliance with the requirements contained in these SFCP Policies and (ii) the HFA’s right to discard a ranked development if any of the information upon which it was evaluated has changed. The foregoing items (i) through (ii) are cumulatively referred to herein as “the Conditions.”
If a development is discarded due to failure to meet the Conditions, or if the HFA’s expected SFCP funding is “under-subscribed” as described in subsection (2) above, then the HFA may utilize its remaining funding in any manner it deems appropriate, including, but not limited to, (i) reserving the remaining funding for another HFA program or initiative, or (ii) reserving the remaining funding for future developments to be identified at a later time. Additionally, the HFA may, in its sole discretion, award all or a part of the remaining funding to one or more proposed single family developments which had not been evaluated or ranked by the HFA.
Additional single family developments that are under consideration due to an undersubscription shall be evaluated and ranked for receipt of allocation in a similar manner as set forth in Section III.B. of these SFCP Policies.