La. Admin. Code tit. 71 § III-507

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

Section III-507 - Rule Number HS2-1993-Bond Commission Multifamily Housing Applicants

A. The Bond Commission (the "commission") has found it necessary to address the concerns of very low, low, and/or moderate income families in multifamily housing units financed with tax exempt and/or taxable municipal bonds subject to the approval of the commission.

B. The commission hereby adopts the following rule which shall apply to all such applications submitted to the commission for new construction, acquisition and/or rehabilitation, or refunding of multifamily housing units.

C. Multifamily housing applications must include defined tenant benefit programs for those units set-aside for very low, low, and/or moderate income families. Those applications that do not include evidence of such programs will not be docketed for consideration.

D. The staff of the Bond Commission shall use the following criteria when evaluating defined tenant benefit programs.

1. Nonspecial Needs Multifamily Housing. A developer shall select at a minimum two of the seven options listed below for the set-aside units.

a. Material Rent Differentials. In order to be deemed material, a rent differential must satisfy the federal tax credit guidelines which specify that rent for set-aside units should not exceed 30 percent of the imputed income limit for the set-aside unit.

b. Deposit Waivers and/or Application Fee Waivers. Deposit or application fee waivers may be applied to either an application fee, a security deposit, or both.

c. Rent Cap. Rent caps may be applied which limit the dollar and/or percentage of increase in rent upon renewal of a lease. Such rent caps must be equal to or less than one-half the scheduled rent increase for such lease renewal.

d. Rent Deferral. Rent deferral programs would apply to those tenants which become unemployed during the term of their lease. Rent deferral programs can reschedule rent payments at reduced amounts or have a 100 percent deferral either until six months after the resident is no longer receiving unemployment compensation. This program may be funded with a reserve set aside for this specific purpose and clearly delineated in the bond documents.

e. Educational Programs or Other Socialization Programs. These programs may include literacy or tutorial programs, re-education assistance for the unemployed, or other such assistance which would increase opportunities for the targeted income class.

f. Daycare Related Programs. These programs may either be located on site or subsidized off site daycare centers. Programs may include after school care and/or supervision for the children of working parents.

g. Other such benefit programs as may be proposed by the developer, such as:

i. tenant security programs;

ii. energy conservation programs.

2. Special Needs Multifamily Housing. The commission recognizes the development of special needs housing for the elderly, disabled, homeless, etc., is essential to the welfare of the citizens of the state. Therefore, the criteria for the defined tenant benefit program shall be based on the total package to be offered to the special needs group, including, but not limited to the following:

a. Meals Programs. Depending upon the special needs group targeted, this benefit can include one or more meals provided in a central dining area or some other meal program included as part of the total benefit package;

b. Transportation Assistance;

c. On-Site Health Services;

d. House Keeping Services;

e. Social Activities;

f. Trained and Certified Staff;

g. Rent Differentials.

3. Multifamily Housing in Qualified Redevelopment Areas. The commission recognizes the importance of encouraging the redevelopment and/or revitalization of urban and inner city areas. Therefore, additional consideration will be given to the following.

a. A Qualified Redevelopment Area. A qualified redevelopment area shall be defined by the governing authority of the local jurisdiction and as approved by the Bond Commission.

b. Project Plan. The project plan must include whether it is new construction or a redevelopment of an existing property. The plan must also include a defined tenant benefit package if the project targets a special income class. If the project requires the relocation of current residents, the plan must show how the relocation will be addressed.

E. In all instances, the final decision as to the acceptance of the defined tenant benefit package shall rest with the commission. Inclusion of a defined tenant benefit package does not guarantee approval. Other factors will be considered including:

1. the total financial package;

2. other means of financing including historical and housing tax credits;

3. the nature (for profit or nonprofit), experience and track record of the developer; and

4. the experience and track record of the proposed property manager.

F. A complete application must be filed with the Bond Commission no later than 20 working days prior to the meeting date at which the application is to be considered in accordance with the rules of the commission.

G. The schedule of income levels as published periodically by HUD will be used for purposes of this rule to determine income levels for particular areas of the state.

La. Admin. Code tit. 71, § III-507

Promulgated by the Department of the Treasury, Bond Commission, LR 19:1178 (September 1993), amended LR 21:403 (April 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 49:950 et seq.