R 125.132 Processing and evaluation of applications.

Rule 132. (1) An application for a development fund loan or a determination that a proposed housing project is a feasible housing project, or both, must be processed by the authority staff based on processing and underwriting procedures and guidelines developed by the authority staff under direction of the executive director on behalf of the authority. (2) An applicant may be required to furnish to the authority staff supplementary information and to amend the application so that the proposed housing project is consistent with the authority’s processing and under-writing procedures and guidelines. (3) Upon completion of the processing, all applications for a determination that a proposed housing project is feasible and all applications for development fund loans in the principal amount of $350,000.00 or more, must be presented to the authority for approval, along with the authority staff’s analysis of the application and the executive director’s recommendation with respect to the application, subject to the terms, conditions, and requirements determined necessary by the authority, in accordance with R 125.133. (4) If the principal amount of the development fund loan is less than $350,000.00, the executive director shall review the authority staff’s analysis and determine whether all of the following requirements are met: (a) The applicant is an applicant authorized by the act to receive a development fund loan. (b) The applicant shall use the loan funds in planning for or implementing any activities allowed in the act. (c) The applicant is reasonably expected to successfully implement the proposal. (d) The authority staff reasonably anticipates that the applicant will receive an authority-aided or a federally-aided mortgage loan, to be obtained to provide financing for the proposed housing project. (e) The development fund loan can reasonably be anticipated to be repaid from the proceeds of the authority-aided or a federally-aided mortgage loan. If the requirements in this subrule are met, the executive director may issue, on behalf of the authority, a commitment for a development fund loan to the applicant. The development fund loan commitment must contain terms, conditions, and requirements determined necessary by the executive director.