Section 860-RICR-00-00-1.12 - Program Administration1.12.1ContractingAll contracts shall be submitted to the administrative agency in support of funding requisitions.
1.12.2AdministrationThe Commission shall designate an administrative agency to implement and monitor the funding decisions made by the Commission with review and recommendation of the staff of the administrative agency and the Housing Resources Commission in accordance with these regulations.
1.12.3MonitoringTo ensure compliance with the requirements set forth in these Regulations, the administrative agency and/or the Commission may require information and reports on Developments financed hereunder and may conduct site visits and inspections.
1.12.4The Loan DocumentsIf the Proposal is approved, the Eligible Developer will execute the Loan Documents which shall set forth, among other things, certain terms and conditions of participation in the Program.
1.12.5Financing PolicyA. Each affordable housing development is unique. Each Proposal submitted under the Program will be reviewed independently and with flexibility. With this approach in mind, the administrative agency staff will work with the Eligible Developer to determine the amount of financing appropriate through the Program and other financing sources available to the Eligible Developer for the project.B. Loans, if approved, shall be in the form of deferred loans with the appropriate terms determined by the Commission. The Commission shall base its determination on the financial feasibility of the proposed Development and on the requirements of other financing sources in the development proposal.1.12.6Underwriting Analysis.A. The administrative agency and the Commission shall use the following criteria as part of its underwriting analysis of a Proposal to determine feasibility: 1. Staff may visit the site(s) to determine suitability for the Program.2. Staff may require and commission an independent appraisal that conforms to the Uniform Standards of Professional Appraisal Practice ("USPAP") and in accordance with other State standards to determine project valuation for land and buildings.3. The external and internal design of the building must be approved by the administrative agency and must meet all applicable building code requirements.4. The extent to which the construction budget will be sufficient to support the proposed work on the building.5. The Eligible Developer must provide an estimate of local taxes based on current municipal policy.6. Professional liability insurance is required for the contractor, architect and any other professional(s) for any project which has construction costs in excess of $100,000. Architects must have "errors and omissions" insurance.7. All Developments must have insurance policies providing property, crime, liability and equipment coverage approved by the Commission.8. For those Developments that require moderate rehabilitation as approved by the Commission, the Commission may consider a general contractor's services instead of engaging an architect, so long as all federal, state, and local requirements such as permits will be obtained by the general contractor.1.12.7Recapture and RepaymentsAll funding repaid to the program whether from loan repayment or recapture due to non-compliance, shall be reallocated to eligible developments in accordance with these regulations.
1.12.8Right to Waive RegulationsA. Upon a determination and finding of "Good Cause" shown, the Commission, upon a majority vote, may waive any provision of these Regulations. Good Cause shall include facts, determinations, or circumstances where the granting of a specific case based waiver:1. Is necessary to permit the Development to proceed, 2. Would not pose an undue financial risk to the Commission, regarding the particular project at issue,3. Is necessary to carry out the purposes of the Program, with regards to the project request and,4. Is consistent with the mission of the Commission in regards to affordable housing.B. Each waiver request must be in writing and must be supported by documentation of the pertinent facts and circumstances. A determination and finding of Good Cause shown, shall be made upon thorough review of the request and supporting documentation by Commission staff, recommendation for waiver, and majority vote of the Commission.860 R.I. Code R. 860-RICR-00-00-1.12