TITLE
330:
CHAPTER 60.
SUBCHAPTER 1. GENERAL PROVISIONS
330:60-1-1. Purpose
The purpose of the Oklahoma Housing Trust Fund (“OHTF”) is to address
declining affordable housing resources at the federal, state, and local levels,
which act as an impediment to economic development and business expansion
within the state. The intent of the OHTF is to assist moderate and low-income
citizens in obtaining safe, decent and affordable housing with priority for
such housing being given to low-income citizens by the addition of new
affordable housing units in accordance with local market- based demands.
330:60-1-2. Authority
The OHTF is authorized by Senate Bill number 786/74 OS Supp 1997, Sections
2901.1 and 2901.2 as amended. Oklahoma Housing Finance Agency (“OHFA”) has been
designated as the State's administrative agency for purposes of administering the
State's Housing Trust Fund.
330:60-1-3. Scope
During each year, financial assistance will be made available to eligible
persons and entities presenting project proposals to the Housing Development
Team at Oklahoma Housing Finance Agency. These eligible persons and entities
include, but are not limited to for-profit and nonprofit developers, builders, Native
American Tribes, units of local government, and political subdivisions.
330:60-1-4. Definitions
The following words and terms, when used in this chapter, shall have the
following meanings unless the context clearly indicates otherwise. Additional
capitalized terms used in these Chapter 60 Rules are defined in Senate Bill
number 786/74 O.S. Supp 1997, Sections 2901.1 and 2901.2, as amended. When a
conflict exists between the following definitions and the State Statutes, the
State Statutes shall control.
"Contractor" means any eligible entity or person receiving OHTF financial assistance through OHFA.
“Eligible Applicants” means
political subdivisions (including, but not limited to, incorporated towns,
cities, and counties, their trusts and authorities, and state trusts),
nonprofit organizations, for-profit developers, and Native American Tribes.
"For-profit Developer or Builder" means a legal
entity or an individual in the business of residential housing construction or
land preparation for such construction.
"Low-income" means a family or household whose
total annual income from all sources does not exceed 80% of the area median
income as set forth by the most recent U.S. Department of Housing and Urban
Development (“HUD”) published income limits.
"Moderate-income" means a family or household
whose total annual income from all sources does not exceed 100% of the area
median income as set forth by the most recent HUD published income limits.
"Non-profit Developer or Builder" means an incorporated
IRS recognized not-for-profit entity engaged in residential housing
construction or land preparation for such construction.
"State Statute" means 74 O.S.
Supp 1997, Sections 2901.1 and 2901.2, as amended.
"Target Populations" means moderate and low-income
families or households that are end-users of assisted housing units. For rental
projects, assisted units must serve target populations at or below eighty
percent (80%) of the HUD published area median family income for the county in
which the project is located. For home ownership projects, assisted units must
serve target populations at or below one hundred percent (100%) of the area
median family income for the county in which the project is located.
"Term of Affordability" means the length of time
assisted housing must remain in service to meet the needs of target
populations.
"Unit of Local Government" means an incorporated
town, city, or county.
“
330:60-1-5. Technical assistance
OHFA will designate staff members who shall be available to provide general
technical assistance regarding proposed project concepts and OHTF Program implementation.
The names of staff members designated to provide technical assistance may be
obtained by contacting OHFA's Housing Development Team.
330:60-1-6. Compliance
The Applicant, the owners of the development, the Development Team, and the affiliate of each must comply with all federal, state, and local laws, rules, regulations and ordinances, including but not limited to, State Statute, regulations promulgated there under, the Oklahoma Landlord Tenant Act, Titles VI and VII of the Civil Rights Act of 1964 as amended, and Title VIII of the Civil Rights Act of 1968 as amended. OHFA will verify that the owner of the affordable housing project is maintaining records for each qualified affordable housing unit in the project. OHFA will inspect 100% of the OHTF projects according to HUD standards and will inspect the Copy of the HUD income limits used for selection of the occupant/buyer, copy of the deed restrictions, covenant running with land or other forms approved by an OHFA trustee signifying the five (5) year affordability period, documentation recognizing occupant/buyer income at time of selection, and copy of certificate of occupancy. For rental projects only, the owner must allow OHFA to perform an on-site inspection of any low-income building in the project through the end of the compliance period. OHFA will promptly notify the owner in writing if OHFA is not permitted to inspect and review, or if staff discovers that the project does not comply with the OHTF Rules. In such event, the owner will be allowed a correction period to supply missing documentation or to correct noncompliance.
SUBCHAPTER 3. FUNDS
330: 60-3-1. Funds distribution
(a) Allocation by OHFA shall be awarded to eligible applicants through a
formal application process. Submission requirements for project applications
will be developed annually by OHFA and described in the published OHTF
Application Packet.
(b) OHTF Financial assistance will be awarded according to the State
Statute, Program Rules, and Application Packet.
(c) Application materials and guidelines shall be made available to
eligible applicants and interested parties upon request. Requests for
application materials and guidelines should be directed to OHFA.
330:60-3-2. Funding activities
(a) Funds made available shall be divided into four broad activities Eligible
funding activities shall include:
(1) New construction of rental and home ownership units
(2) Conversion of non-residential buildings or structures into rental or home
ownership units
(3) Acquisition and/or rehabilitation
(4) Infrastructure development, when it is part of a total affordable housing
development project
330:60-3-3. Allocation of funds
OHFA will make awards of OHTF Program funds throughout the State. A minimum
of sixty-five percent (65%), but not more than seventy-five percent (75%) of
all financial assistance awards shall be made to projects located in counties
with populations of less than four hundred ninety thousand (490,0000) according
to the most recent U.S. Census.
330:60-3-4. Application fees
All eligible applicants seeking financial assistance shall be charged a
non-refundable fee of $250.00. All application fees will be used by OHFA to pay
for overall program delivery and operation activities.
330:60-3-5. Forms of assistance
Financial assistance shall be in the form of collaterized loans, intended
to provide construction financing. either grants or collateralized below
market rate loans. The maximum loan amount provided to any one multi-family
rental application and/or project proposal shall not exceed twenty five
percent (25%) of the total development costs, or five hundred thousand dollars
($500,000), whichever is less. In a home ownership project, OHTF may provide up
to one hundred percent (100%) of the total development costs of the project. The
maximum loan amount for homeownership shall not exceed five hundred thousand
dollars ($500,000). OHFA staff reserves the right to adjust loan maximums and
terms based on the availability of funds and the most efficient and practical utilization
of available resources.
330:60-3-6. Maximum loan terms and interest rates
The maximum term for all loans made shall be subject to the specific
requirements of any given project proposal. For rental projects, the term of
any loan shall be fifteen (15) years, for housing infrastructure, seven (7)
years, and for home ownership, three (3) years Interest rates shall be set at
below-market rates for a comparable period. Any requests for exceptions to the
terms and conditions shall be reviewed on a case by case basis. Requests for
extensions and/or loan modifications shall be subject to a fee established at
3% of the total outstanding balance at the time of request.
330:60-3-7. Conditions of financial assistance
Any housing unit receiving financial assistance must remain affordable to
target populations for a period of not less than five (5) years. Affordability
periods must be assured by deed restrictions, covenants running with the land,
or other forms approved by the OHTF Program.
330:60-3-8. Reallocation of Trust Program Funds
(a) From time to time funds may become available as the result of:
(1) Project cancellations;
(2) Projects completed under original cost estimates;
(3) loan pay-off;
(4) Other circumstances;
(b) In keeping with the State Statute, Program rules, and Application Packet,
OHFA shall reallocate these funds to eligible project proposals.
SUBCHAPTER 5. APPLICATIONS AND SELECTION
330:60-5-1. Project application cycle
Applications for financial assistance shall be accepted on a continuous
basis subject to funds availability, the time of financial needs, and fully
satisfying all key evaluation criteria. The OHTF Program reserves the right to
suspend acceptance of applications at any time.
330:60-5-2. Project applications
Eligible applicants seeking financial assistance must submit a written application in the form prescribed in the Application Packet. All applications will be required to contain sufficient information to permit OHFA to conduct a review, assessment, and selection as described in the application packet.
330:60-5-3. Application packets
(a) Continually OHFA will make available upon request, application packets,
which shall comply with the current State Statutes and these Chapter 60 Rules.
(b) The application packets shall provide information to assist applicants
in the preparation of submissions for loan requests.
(c) Application packets shall include, but not be limited to information
such as eligible project descriptions, required time frames, project evaluation
criteria, and project budgets.
(d) Application packets shall be required for all financial assistance
requests.
330:60-5-4. Applicant selection
For the purpose of selecting applicants for financial assistance, OHFA shall
use evaluation criteria. These evaluation criteria include, but are not limited
to the following:
(1) Project description: Clear and concise description of the project and
its characteristics.
(2) Organizational Structure/Capacity: Loan applicants for OHTF assistance
are required to demonstrate expertise related to the type of proposed housing
activity.
(3) Financial Management: Detailed explanation of the overall financial
management policies and procedures as they relate to any given project’s
financial management.
(4) Market Analysis/Study: Projects consisting of twenty-one (21) units or
more must provide an independent third party market analysis that supports
demand for the multi-family project being proposed that is dated no later than twelve
(12) months prior to the date of the application for assistance. Home
ownership or multi-family projects of less than twenty-one (21) units, should
provide a locally produced market study that supports demand for the
single-family or multi-family project and must be dated no later than twelve (12)
months prior to the date of application for assistance. Such studies must fully
describe the methodology used and sources of all data and information.
(5) Project Management Control: Applicants are expected to provide
production oversight that will ensure project completion.
(6) Financial Feasibility and Viability: Applicants must detail the exact
activities and cost associated with each activity using OHTF funds. Applicant
must provide a detail explanation regarding the method of repayment of the loan.
(7) Partnerships: Loan applicants are expected to describe all partners both
financial and non-financial. Documentation should clearly identify the partners
and the role(s) they will be assuming.
(8) Project Readiness: Projects must
be ready to begin construction within one hundred and eighty (180) days of loan
closing.
(9)Prior Contract Performance: Applicant’s history and prior performance
with public and private funding will be assessed over a period of twenty-four (24)
months.
SUBCHAPTER 7. PROGRAM ADMINISTRATION
330:60-7-1. Program violations
The following are violations of the Housing Trust Fund Program policies and
procedures:
(1) The filing of false information in an application and/or project report;
(2) Failure of a contractor to meet requirements of the State Statute, and/or
Chapter 60 Rules;
(3) Deviation from written agreement, loan agreement, and/or promissory
note;
(4) Notice by OHFA that significant corrective actions are necessary to
protect the integrity of the project funds, and that those corrective actions
are not or cannot be effected within a reasonable time, in the judgment of OHFA
staff;
(5) An administrative or judicial determination that the contractor has
committed fraud, waste, or mismanagement in any current or prior activity.
330:60-7-2. Corrective and remedial actions
(a) Under any of the circumstances previously described as violations during
the application stage or contract execution OHFA may take the following
actions:
(1) Condition written agreements and/or loan agreements;
(2) Withhold funds;
(3) Reduce the total amount of the financial award;
(4) Require immediate return of unexpended funds;
(5) Require immediate repayment of all financial assistance provided by the OHTF
Program;
(6) Cancel a contract and recover all funds expended in an ineligible manner
prior to the date of notice of cancellation;
(7) Deny future program applications and participation for a specified period
of time as determined by OHFA;
(8) Debarment from program;
(b) Additionally, OHFA reserves the right under circumstances of possible
program violations to request information regarding:
(1) The administrative, planning, budgeting,
management, and evaluation function actions being taken to correct or remove
the cause of the program violation(s);
(2) Any activities undertaken that were not in conformance with the approved
program or application process, or that are in non-compliance with applicable
laws or rules;
(3) The contractor's capacity to carry out the approved or proposed program in
a timely manner; and,
(4) Progress schedules for completing approved or proposed activities.
Prior to taking any corrective and/or remedial
actions, a notice of show cause hearing shall be issued by OHFA. The contractor
shall have ten (10) working days to appear and show cause as to why the
corrective and/or remedial actions should not be taken.
330:60-7-3. Contractor responsibilities
A contractor under the OHTF Program shall be responsible for:
(1) Taking all actions necessary to enforce the terms of the written
agreement, loan agreement, and promissory note against any private or public
participant that fails to comply with applicable provisions of the written
agreement, loan agreement, promissory note, or any subcontract or documents resulting
from it, and to recover on behalf of OHFA, any liabilities that may arise as a
result of a breach of the written agreement, loan agreement, or promissory note
by any participant. Nothing in this sub section shall restrict OHFA's right to
independently enforce the terms of any contract agreement or any subcontracts
or documents resulting from it, or to recover any sums that may become due as
the result of a breach of such contract.
(2) Complying with all State Statutes, these OHTF rules, the written agreement,
loan agreement, and promissory note between the contractor may be released by
OHFA from time to time.
(3) Maintaining records and accounts, including, but not limited to
property, personnel, and financial records that properly document and account
for all project funds. OHFA may require specific types and forms of records.
All such records and accounts shall be made available upon request by OHFA for
the purpose of inspection and use in carrying out its responsibilities for
administration of the funds.
(4) OHFA may require the contractor to provide special narrative and
financial reports related to the elements of a written agreement in the forms
and at such times as may be necessary or required by OHFA.
(5) Retaining all books, documents, papers, records, and other materials
involving all activities and transactions related to its contract for at lease
three (3) years from the date of the final expenditure report, or until any
audit findings have been resolved, whichever is later. Contractor shall, as
often as deemed necessary by OHFA, permit authorized representatives to have
full access to and the right to fully examine all such materials.
(6) Promptly returning to OHFA, any funds received under its written
agreement that are not obligated as of the final date of the contract period.
Funds shall be obligated only if goods and services have been received as of
the final date of the written agreement period.
(7) Complying with OHFA’s audit policy including the single audit Act of
1984 (P.L.98-502, 31 U.S.C., 7501 et seq.), as applicable to the contractor.
Providing OHFA timely copies of reports on any audits that include funds
received from OHFA.
(a) A public accountant or public accounting firm licensed no later than
(b) The audit shall be performed in accordance with Government Auditing
Standards; Compliance Supplement for Single Audits or State and Local
Governments; generally accepted auditing standards established by the American
Institute of Certified Public Accountants; and OHFA.
(8) Complying with all applicable State requirements.
330:60-7-4. Review and appeals process
(a) Applicants for OHTF financial assistance may review their applications
and OHFA's application review documents any time after OHFA has publicly
released funding decisions.
(b) Appeals cannot introduce new documentation that would change the basis
on which a funding decision was made. Additionally, requests for appeals shall
be made within thirty (30) days after the applicant has been notified that the
application was not funded.