Section 860-RICR-00-00-1.11 - Program Requirements1.11.1Eligible ResidentsA. Eligible Residents are families and individuals who are Eligible Buyers with a gross annual income that does not exceed 120% of the Median Family Income and Eligible Renters with a gross annual income that does not exceed 80% of the Median Family Income. Eligible Residents must occupy units of appropriate size for the number of persons in the household.B. Renters who are no longer Eligible Residents due to income may continue to reside in the Development and pay 30% of the family's gross monthly income. The next available unit shall be rented to an Eligible Resident.1.11.2Term of affordabilityUnits assisted hereunder must remain Affordable for a minimum of thirty (30) years from the date of initial occupancy, or such longer affordability period as may be included in the proposal and approved by the Commission, and must be enforced by either a recorded deed restriction or land trust covenant.
1.11.3Homebuyer EducationHomebuyers must complete a homebuyer education course conducted by a HUD-approved counseling agency.
1.11.4Maximum RentThe maximum rent is a rent that does not exceed 30% of the gross monthly income of a family with a gross annual income of 80% of Median Family Income and shall be determined by the administrative agency.
1.11.5Purchase PriceThe maximum purchase price shall be established at a price with a monthly cost to an Eligible Buyer of 30% of the gross monthly income of a family with a gross annual income of 120% of Median Family Income, including principal, interest, taxes, insurance and condominium fees, if applicable.
1.11.6Repayment of fundsIf the Development is not operated to provide direct benefit to eligible residents for the term of affordability, all funds advanced for the development plus interest at an annual rate of 9% shall be repaid to the Commission.
1.11.7Financing TermsA. Funds will be in the form of deferred or forgivable loans to the developer.B. An Eligible Developer will be required to repay the deferred loan for a rental development upon the sale, refinance, or disposition of the Development at the end of the Term of Affordability.C. For housing developed for homeownership, the deferred loan will be forgiven upon sale of the property to an Eligible Buyer.D. In any case, the affordability restrictions shall apply for the duration of the term of affordability.1.11.8Terms of the AgreementAt the discretion of the Commission, the terms of the Agreement may be negotiated where conflicts exist with other funding sources or where refinancing will benefit the development.
1.11.9Eligible Program CostsA. All funds must be used for the development of permanent housing for sale or rent to Eligible Residents.B. Funding may be used for any approved development cost including acquisition, construction, financing, on- site infrastructure, and soft costs normally associated with the cost of development.C. Funding may not be used for local impact fees, off-site improvements, or public facilities.D. Developer fees and/or profit are limited to the lower of 15% of the total development cost or restrictions imposed by other funding sources.E. Neighborhood Opportunities Program funding may be used in the same project.1.11.10Construction/Rehabilitation StandardsA. All Development must at a minimum meet all State Building Code and Fire Code requirements, R.I. Gen. Laws § 23-27.3-100.0, and Fire Code requirements, R.I. Gen. Laws Chapter 23-28.1, §23-29.1-1, et seq., and meet the HUD Section 8 H ousing Quality Standards, 24 C.F.R. Part 982, as authorized by 42 U.S.C. § 1437, State and Federal Lead Paint regulations, 24 C.F.R. Part 35, Part 291.430, and 40 C.F.R. Part 745, as authorized by 42 U.S.C. § 4821 - 4846, and 42 U.S.C. §4851 - 4856, and asbestos mitigation rules and regulations, as authorized by R.I. Gen. Laws Chapters 23-19.1 and 23-24.5. Developments must meet accessibility requirements in R.I. Gen. Laws §§ 37-8-15 and 37-8-15.1.B. At the discretion of the Commission, more substantial rehabilitation may be required. Developers will be required to submit a work plan and a preliminary cost estimate for the Development.C. All sites of state historic significance shall be reviewed and approved by the Rhode Island Historic Preservation Commission. Energy efficiency and healthy housing practices are encouraged.1.11.11RelocationIf any sites identified for development in the Proposal are currently occupied, the applicant must provide a relocation plan to address displacement of residents that is satisfactory to the Commission. Such plan should generally comply with requirements outlined in the federal Uniform Relocation and Real Properties Acquisition Act (URA).
1.11.12AccessibilityAll Developments must meet the accessibility standards set forth in 24 C.F.R. Part 41, as authorized by 42 U.S.C. § 4151, R.I. Gen. Laws §§ 37-8-15 and 37-8-15.1 et seq.
1.11.13Fair HousingAll Developments must have an approved marketing plan in conformance with Fair Housing standards in 24 C.F.R. § 200.929a, as authorized by 42 U.S.C. § 3601 - 3619, and R.I. Gen. Laws § 34-37-1.
1.11.14Minority ContractingAll projects shall comply with R.I. Gen. Laws § 37-14.1-6 which states minority business enterprises (MBEs), including woman business enterprises (WBEs), shall be included in all procurements and construction projects and shall be awarded a minimum of ten percent (10%) of the dollar value of the entire procurement or project to such entities.
860 R.I. Code R. 860-RICR-00-00-1.11