La. Admin. Code tit. 16 § II-301

Current through Register Vol. 50, No. 11, November 20, 2024

Section II-301 - General

A. The CHDO Homeownership Housing Program is being established by the agency to encourage Community Housing Development Organizations (CHDO) to serve as developers or sponsors in the construction, reconstruction and/or the acquisition-rehabilitation of not more than 20 buildings consisting of not more than one single-family housing unit for purchase by households at or below 80 percent of the area median income for the parish within which the housing units are located.

1. The single-family housing units are to develop in phases not exceeding five units per phase.

2. All units must be constructed or rehabilitated in accordance with the Minimum Property Standards (MPS) in 24 CFR 200.925 or 200.926.

3. Newly constructed units must meet the current edition of the Model Energy Code published by the Council of American Building Officials.

B. The Louisiana Housing Finance Agency (the "agency") will not accept applications for projects to be located in other participating jurisdictions as listed below:

1. city of Alexandria ;

2. city of Shreveport ;

3. city of Kenner ;

4. East Baton Rouge Parish (with exception of cities of Baker and Zachary);

5. city of Lafayette ;

6. city of Lake Charles ;

7. Jefferson Parish;

8. city of Monroe ;

9. St. Charles Parish;

10. city of New Orleans ; and

11. Terrebonne Parish.

C. HOME funds will be made available to CHDOs in a revolving loan pool to fund up to five phases and no more than five units in any one phase.

1. Eligible borrowers must qualify to purchase housing units under the CHDO Homeownership Housing Program by evidencing an ability to qualify for a mortgage loan under the agency's HOME/MRB Program.

2. The HOME/MRB Program of the agency will serve as a source of take-out financing for all units under the CHDO Homeownership Housing Program. Developers will receive an appropriate reservation of funds under the HOME/MRB Program for take-out financings.

3. All housing units under the CHDO Homeownership Housing Program must qualify under FHA guidelines for minimum property standards.

1. The CHDO Homeownership Housing Program is available for the rehabilitation of substandard housing units for eligible borrowers who currently own their own homes only if such homes require and will undergo qualified rehabilitation.

2. If a CHDO desires to include qualified rehabilitation as part of this project summary application, evidence must be submitted prior to the commitment of any HOME funds to the rehabilitation of the housing unit that:

a. the housing unit is substandard and will be rehabilitated to satisfy minimum HQS;

b. the rehabilitation of the housing unit satisfies the requirements of a qualified rehabilitation; and

c. the cost of the rehabilitation and any existing mortgage debt may be refinanced under the agency's HOME/MRB Program. All units must qualify under FHA's minimum property standards.

F. HOME funds will be allocated to projects consisting of either:

1. single-family units in which each housing unit is located on a single lot and in which each housing unit and lot may be purchased by an eligible borrower; or

2. if an eligible borrower currently occupies the housing unit, the rehabilitation of the housing unit for the eligible borrower satisfies the conditions for a qualified rehabilitation and financing under the agency's HOME/MRB Program.

La. Admin. Code tit. 16, § II-301

Promulgated by the Department of the Treasury, Housing Finance Agency, LR 23:1530 (November 1997).

AUTHORITY NOTE: Promulgated in accordance with R.S. 40:600.6.