This chapter may be cited as the affordable housing ordinance.
(Ordinance 11-03 adopted 2011)
This chapter is adopted to implement the town’s affordable
housing program. In accordance with New Mexico Constitution, article
IX, section 14, the Affordable Housing Act, New Mexico Statutes Annotated
1978, section 6-27-1 et seq. (the “act”), and the MFA
Affordable Housing Act rules, the purpose of this chapter is to:
A.
Establish
procedures to ensure that local housing assistance grantees are qualifying
grantees who meet the requirements of the act and the MFA rules promulgated
pursuant to the act both at the time of the award and throughout the
term of any grant or loan under the program;
B.
Permit
the establishment of an application and award timetable for housing
assistance grants or loans to permit the selection of qualifying grantees
by the town;
C.
Create
an evaluation process for nonhousehold qualifying grantees to determine:
1.
The
financial and management stability of the applicant;
2.
The
demonstrated commitment of the applicant to the community;
3.
A cost-benefit
analysis of the project proposed by the applicant;
4.
The
benefits to the community of a proposed project;
5.
The
type or amount of assistance to be provided;
6.
The
scope of the affordable housing project;
7.
Any
substantive or matching contribution by the applicant to the proposed
project;
8.
A performance
schedule for the qualifying grantee with performance criteria; and
9.
Any
other rules or procedures which the town believes is necessary for
a full review and evaluation of the applicant and the application
or which the MFA believes is necessary for a full review of the town’s
evaluation of the applicant;
D.
Create
an evaluation process for household qualifying grantees to determine
income and other eligibility;
E.
Require
long term affordability of the town’s affordable housing projects
so that a project cannot be sold shortly after completion and taken
out of the affordable housing market to ensure a quick profit for
the qualifying grantee;
F.
Require
that the town enter into a contract with the qualifying grantee consistent
with the act, which contract shall include remedies and default provisions
in the event of the unsatisfactory performance by the qualifying grantee
and which contract shall be subject to the review of the MFA in its
discretion;
G.
Require
that a grant or loan for a project must impose a contractual obligation
on the qualifying grantee that the affording housing units in any
project be occupied by persons of low or moderate income;
H.
Provide
for adequate security against the loss of public funds or property
in the event that the qualifying grantee abandons or otherwise fails
to complete the project;
I.
Require
review and approval of a housing grant project budget by the town
and/or the MFA before any expenditure of grant funds or transfer of
granted property;
J.
Require
that a condition of grant or loan approval be proof of compliance
with all applicable state and local laws, rules and ordinances;
K.
Provide
definitions for “low income and moderate income” and setting
out requirements for verification of income levels; and
L.
Provide
the town with a valid affordable housing program.
(Ordinance 11-03 adopted 2011)
The following words and terms shall have the following meanings:
The Affordable Housing Act, New Mexico Statutes Annotated
1978, section 6-27-1 et seq.
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds that have been awarded,
loaned, donated, or otherwise provided or conveyed to a qualifying
grantee is from one dollar ($1.00) to fourteen thousand nine hundred
ninety-nine dollars ($14,999.00), then the affordability period shall
be not less than five (5) years.
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds provided or conveyed
to a qualifying grantee is from fifteen thousand dollars ($15,000.00)
up to and including forty thousand dollars ($40,000.00), then the
affordability period shall be not less than ten (10) years.
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds provided or conveyed
to a qualifying grantee is from forty thousand dollars ($40,000.00)
up to and including one hundred thousand dollars ($100,000.00), then
the affordability period shall be not less than fifteen (15) years.
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds provided or conveyed
to a qualifying grantee is greater than one hundred thousand dollars
($100,000.00), then the affordability period shall be not less than
twenty (20) years.
Consistent with minimum rent and/or income limitations set
forth in the MFA Act, and in guidelines established by MFA.
Primary residential housing for persons of low or moderate
income.
Any or all funds awarded or to be awarded, loaned or otherwise
distributed under this chapter or the act.
A plan pursuant to an affordable housing program that contemplates
one or more affordable housing projects, which may be developed in
one or more phases.
Any programs the town and/or the MFA establish pursuant to
the act.
Any work or undertaking, whether new construction, acquisition
of existing residential housing, remodeling, improvement, rehabilitation
or conversion, which may be undertaken in one or more phases, as approved
by the town and/or the MFA for the primary purposes as allowed by
the act.
Subject to further qualifications in subsection 2.16.040.B
of this chapter, an individual, a governmental housing agency, a regional
housing authority, a for-profit organization, including a corporation,
limited liability company, partnership, joint venture, syndicate,
or association or a nonprofit organization that has submitted an application
meeting the appropriate criteria of the town and/or the MFA.
An application to participate in one or more affordable housing
programs or affordable housing plans under the act submitted by an
applicant to the town and/or the MFA.
An individual or entity licensed as a general contractor
to construct residential housing in the state and which has been approved
by the town and/or the MFA to participate in an affordable housing
program.
A structure capable of being renovated or converted into
affordable housing or a structure that is to be demolished and is
located on land donated for use in connection with an affordable housing
project.
Residential housing designed for occupancy by more than four
(4) households of low or moderate income living independently of each
other. The facility may contain group dining, recreational, healthcare
or other communal living facilities and each unit in a congregate
housing facility shall contain at least its own living, sleeping,
and bathing facilities.
Any provision of assistance for affordable housing, including
an affordable housing grant or affordable housing funds, made by the
town.
The United States of America and any agency or instrumentality,
corporate or otherwise, of the United States of America.
The United States Department of Housing and Urban Development.
One or more persons occupying a housing unit.
All members of a single household.
The donation, provision, or payment by the town of:
Land upon which affordable housing will be constructed;
An existing building that will be renovated, converted, or demolished
and reconstructed as affordable housing;
The costs of acquisition, design, predevelopment, development,
construction, financing, and operating or owning affordable housing;
The costs of financing or infrastructure necessary to support
affordable housing; or
Reduction or waiver of building permit fees, sewer and water
hook-up fees and other fees with respect to an affordable housing
project.
Infrastructure improvements and infrastructure purposes.
Includes, but is not limited to:
Sanitary sewage systems, including collection, transport, storage,
treatment, dispersal, effluent use and discharge;
Drainage and flood control systems, including collection, transport,
diversion, storage, detention, retention, dispersal, use and discharge;
Water systems for domestic purposes, including production, collection,
storage, treatment, transport, delivery, connection and dispersal;
Areas for motor vehicle use for travel, ingress, egress and
parking;
Trails and areas for pedestrian, equestrian, bicycle or other
nonmotor vehicle use for travel, ingress, egress and parking;
Parks, recreational facilities and open space areas for the
use of residents for entertainment, assembly and recreation;
Landscaping, including earthworks, structures, plants, trees
and related water delivery systems;
Electrical transmission and distribution facilities;
Natural gas distribution facilities;
Lighting systems;
Cable or other telecommunications lines and related equipment;
Traffic-control systems and devices, including signals, controls,
markings and signs;
Inspection, construction management and related costs in connection
with the furnishing of the items listed in this definition; and
Heating, air conditioning and weatherization facilities, systems
or services, and energy efficiency improvements, that are affixed
to real property.
Planning, design, engineering, construction, acquisition or
installation of infrastructure, including the costs of applications,
impact fees and other fees, permits and approvals related to the construction,
acquisition or installation of the infrastructure;
Acquiring, converting, renovating or improving existing facilities
for infrastructure, including facilities owned, leased or installed
by the owner;
Acquiring interests in real property or water rights for infrastructure,
including interests of the owner; and
Incurring expenses incidental to and reasonably necessary to
carry out the purposes specified in this definition.
The New Mexico mortgage finance authority.
The Mortgage Finance Authority Act, enacted as chapter 303
of the Laws of 1975 of the State of New Mexico, as amended.
A mortgage, mortgage deed, deed of trust or other instrument
creating a lien, subject only to title exceptions as may be acceptable
to the town and/or the MFA, on a fee interest in real property located
within the state or on a leasehold interest that has a remaining term
at the time of computation that exceeds or is renewable at the option
of the lessee until after the maturity day of the mortgage loan.
Any bank or trust company, mortgage company, mortgage banker,
national banking association, savings bank, savings and loan association,
credit union, building and loan association and any other lending
institution, and which is authorized to make mortgage loans in the
state.
A financial obligation secured by a mortgage, including a
mortgage loan for a project.
A program involving a congregate housing facility, a multiple-family
housing project or a transitional housing facility.
Residential housing that is designed for occupancy by more
than four (4) households living independently of each other or living
in a congregate housing facility, at least sixty percent (60%) of
whom are persons of low or moderate income, including, without limitation,
persons of low or moderate income who are elderly and handicapped.
Individuals or households whose incomes are at or below eighty
percent (80%) of area median income, defined by the income limits
for Taos County, New Mexico, as approved and published each year by
MFA.
Individuals or households whose incomes are at or below one
hundred twenty percent (120%) of area median income, defined by the
income limits for Taos County, New Mexico, as approved and published
each year by MFA.
Shall include, but are not limited to, any entities that
support affordable housing and which believe that the program or project
proposed by the applicant is worthy and advisable, but which are not
involved, either directly or indirectly, in the affordable housing
program or project for which the applicant is applying.
An individual or entity that satisfies the requirements of
qualifying grantee and has been approved by the town and/or the MFA
to participate in an affordable housing program, who need not be licensed
as a general contractor in the state, provided such individual or
entity contracts with a general contractor licensed in the state to
construct residential housing.
A household consisting of persons of low income or moderate
income as defined in this section that is qualified to receive assistance
pursuant to the act and is approved by the town; or
A governmental housing agency, regional housing authority, tribal
housing agency, corporation, a limited liability company, partnership,
joint venture, syndicate, association or a nonprofit organization
that:
The recertification of applicants and/or qualifying grantees
participating in any affordable housing programs or in any programs
under the act as determined necessary from time to time by the town
and/or the MFA.
The substantial renovation or reconstruction of an existing
single-family residence or a multi-family housing project, which complies
with requirements established by the MFA. Rehabilitation shall not
include routine or ordinary repairs, improvements or maintenance,
such as interior decorating, remodeling or exterior painting, except
in conjunction with other substantial renovation or reconstruction.
Any building, structure or portion thereof that is primarily
occupied, or designed or intended primarily for occupancy, as a residence
by one or more households and any real property that is offered for
sale or lease for the construction or location thereon of such a building,
structure or portion thereof. “Residential housing” includes
congregate housing, manufactured homes and housing intended to provide
or providing transitional or temporary housing for homeless persons.
That the structure or the portion of the structure to benefit
from the affordable housing funds or housing assistance grant, is
designed primarily for use as the principal residence of the occupant
or occupants and shall exclude vacation or recreational homes.
The State of New Mexico.
The Town of Taos, New Mexico, a New Mexico municipal corporation.
Residential housing that is designed for temporary or transitional
occupancy by persons of low or moderate income or special needs.
(Ordinance 11-03 adopted 2011)
The following requirements shall apply to all housing assistance
grants and/or affordable housing funds awarded, loaned or otherwise
distributed by the town under the act to a qualifying grantee. Any
contribution, to be authorized, must be consistent with the town’s
affordable housing plan.
A.
Request
for proposals (RFP).
The town, in its discretion or as
required by law, may issue one or more RFPs to solicit applications
from applicants or shall otherwise identify a qualifying grantee for
the use of any affordable housing funds or housing assistance grants
to be awarded, loaned, donated or otherwise distributed under the
act.
B.
Applicant
eligibility.
The following applicants are eligible under
the act to apply for affordable housing funds or a housing assistance
grant to provide housing or related services to persons of low or
moderate income in their community:
1.
Households
that are qualified to receive assistance pursuant to the act, the
rules, and this chapter that are approved by the town;
2.
Regional
housing authorities and any governmental housing agencies;
3.
For-profit
organizations, including corporations, limited liability companies,
partnerships, joint ventures, syndicates or associations;
4.
Nonprofit
organizations meeting the following requirements:
a.
A
primary mission of the nonprofit organization must be to provide housing
or housing related services to persons of low or moderate income;
b.
The
nonprofit organization must have received its 501(c)(3) designation
prior to submitting an application; and
c.
Have
no part of its net earnings inuring to the benefit of any member,
founder, contributor, or individual;
5.
All
nonhousehold applicants must:
a.
Be
organized under state laws and can provide proof of such organization
and be approved by the town;
b.
Have
a functioning accounting system that is operated in accordance with
generally accepted accounting principles or has designated an entity
that will maintain such an accounting system consistent with generally
accepted accounting principles;
c.
Have
among its purposes significant activities related to providing housing
or services to persons or households of low or moderate income; and
d.
Have
no significant outstanding or unresolved monitoring findings from
the town, the MFA, or its most recent independent financial audit,
or if it has any such findings, it has a certified letter from the
town, the MFA, or auditor stating that the findings are in the process
of being resolved.
C.
Renters.
Renters of multi-family affordable housing units and residents
of transitional housing, who did not receive grants of town affordable
housing funds, shall not be required to be qualifying grantees.
D.
Applications.
Applicants wishing to apply for a housing assistance grant,
including the use of any affordable housing funds, or to participate
in any affordable housing program are required to submit to the town
or its designated agent the following, as applicable:
1.
Household
applicants.
a.
An
application on the form provided by the town or its designated agent,
together with all applicable schedules and such other information
as may be required by the town under this chapter. The income of all
household members who are eighteen (18) years or older shall be used
to determine household income for homebuyers regardless of whether
this income is being used to qualify for financing to purchase the
home. Income and asset determination and inclusion will follow HUD
or other applicable federal or state guidelines.
b.
A
verification signed by the applicant before a notary public that the
information provided, upon penalty of perjury, is true and correct
to the best of the applicant’s information, knowledge, and belief.
c.
The
town may establish additional requirements for household applicants
in ordinances that create specific affordable housing projects or
programs.
2.
Nonhousehold
applicants.
a.
One
original application, together with all required schedules, documents,
or such other information which may be required by the town or in
any RFP which may have been issued by the town, must be included in
the completed application;
b.
A
proposal describing the nature and scope of the affordable housing
project proposed by the applicant and for which the applicant is applying
for funds or a grant under the act, and which describes the type and
amount of assistance which the applicant proposes to provide to persons
of low or moderate income;
c.
Executive
summary and project narrative(s) that address the evaluation criteria
set forth in any RFP issued by the town for the affordable housing
funds or the housing assistance grant for which the applicant is applying;
d.
A
proposed budget for the affordable housing project for which the applicant
is applying for affordable housing funds or for a housing assistance
grant;
e.
Current
independent financial audit;
g.
If
an applicant is a legal entity, including a nonprofit organization:
(1)
A current annual budget for the applicant, including all sources
and uses of funds not just those related to relevant programs and/or
a current annual budget only for the program for which the applicant
is applying for a housing assistance grant, or as otherwise may be
required by the town and/or the MFA in its discretion;
(2)
An approved mission statement that the applicant has among its purposes
significant activities related to providing housing or housing related
services to persons or households of low or moderate income;
(3)
A list of members of the applicant’s current board of directors
or other governing body, including designated homeless participation,
where required by the town;
(4)
Evidence (or a certification as may be allowed by the town) that
the applicant has a functioning accounting system that is operated
in accordance with generally accepted accounting principles, or has
a designated entity that will maintain such an accounting system consistent
with generally accepted accounting principles;
(5)
Evidence that the applicant has no significant outstanding or unresolved
monitoring findings from the town, the MFA, or its most recent independent
financial audit; or if it has any significant outstanding or unresolved
monitoring findings from the town, the MFA, or its most recent independent
financial audit, it has a certified letter from the town, the MFA,
or the auditor stating that the findings are in the process of being
resolved;
(6)
An organizational chart, including job titles and qualifications
for the applicant’s employees who are, or will be, working on
the proposed project. Job descriptions may be submitted as appropriate;
(7)
Documentation that the applicant is duly organized under state, tribal,
or local law and certification that the applicant is in good standing
with any state authorities, including the public regulation commission,
the attorney general, and/or the secretary of state;
h.
Information
as may be required by the town in order for it to determine the financial
and management stability of the applicant;
i.
Information
as may be required by the town in order for it to determine the demonstrated
commitment of the applicant to the community;
j.
Adequate
information describing the affordable housing project proposed by
the applicant. The information provided must clearly evidence the
need for the subsidy, that the value of the housing assistance grant
reduces the housing costs to persons of low or moderate income, and
that there is or will be a direct benefit from the project proposed
by the applicant to the community and/or to the purported beneficiaries
of the project, consistent with the provisions of the act;
k.
Information
to the town supporting the benefits to the community of the affordable
housing project proposed by the applicant;
l.
Proof,
as the town may require, of substantive or matching funds or contributions
and/or in-kind donations to the proposed affordable housing project
in connection with the application for funds under the act. Nothing
contained herein shall prevent or preclude an applicant from matching
or using local, private, or federal funds in connection with a specific
housing assistance grant or a grant of affordable housing funds under
the act;
m.
Any
certifications or other proof which it may require in order for the
town to confirm that the applicant is in compliance with all applicable
federal, state and local laws, rules and ordinances;
n.
A
verification signed by the applicant before a notary public that the
information provided, upon penalty of perjury, is true and correct
to the best of the applicant’s information, knowledge, and belief;
o.
Certifications
as may be required by the town and signed by chief executive officer,
board president, or other authorized official of the applicant;
p.
The
town may set forth criteria for a waiver of the above application
requirements in an ordinance defining and authorizing specific affordable
housing projects, to the extent permitted by the Affordable Housing
Act, the MFA rules, and any other applicable law.
3.
Additional
requirements for multi-family housing projects.
Applicants
who are submitting applications in connection with a multi-family
housing program, the applicant must also submit to the town the following
additional information:
a.
A
verification signed by the applicant before a notary public that the
information provided, upon penalty of perjury, is true and correct
to the best of the applicant’s information, knowledge, and belief
and that, among other things:
(1)
Identifies every multi-family housing program, including every assisted
or insured project of HUD, RHS, FHA and any other state or local government
housing finance agency in which such applicant has been or is a principal;
(2)
Except as shown on such statement, states that:
(A)
No mortgage on a project listed on such statement has ever been
in default, assigned to the federal government or foreclosed, nor
has any mortgage relief by the mortgagee been given;
(B)
There has not been a suspension or termination of payments under
any HUD assistance contract in which the applicant has had a legal
or beneficial interest;
(C)
Such applicant has not been suspended, debarred or otherwise
restricted by any department or agency of the federal government or
any state government from doing business with such department or agency
because of misconduct or alleged misconduct; and
(D)
The applicant has not defaulted on an obligation covered by
a surety or performance bond.
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If such applicant cannot certify to each of the above, such
applicant shall submit a signed statement to explain the facts and
circumstances that such applicant believes will explain the lack of
certification. The town may then determine if such applicant is or
is not qualified;
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b.
The
experience of the applicant in developing, financing and managing
multiple-family housing projects; and
c.
Whether
the applicant has been found by the United States Equal Employment
Opportunity Commission or the New Mexico human rights bureau to be
in noncompliance with any applicable civil rights laws.
4.
Submission
procedure.
a.
Time, place and method of submission delivery.
(1)
If the town has issued an RFP, all applications must be received
by the town no later than the deadline set forth in the RFP; otherwise,
all applications must be received by the town by the deadline the
town has established in connection with the respective award or grant.
(2)
Applications shall be submitted by applicants to the town in the
form required by the town and shall contain all information which
is required by this chapter, any specific project ordinance, and any
RFP which may have been issued.
b.
Additional factors.
The application procedures shall
take into consideration:
(1)
Timely completion and submission to the town of an application or
other appropriate response to any solicitation by the town;
(2)
Timely submission of all other information and documentation related
to the program required by the town as set forth in this chapter or
as set forth in the rules;
(3)
Timely payment of any fees required to be paid to the town at the
time of submission of the application; and
(4)
Compliance with program eligibility requirements as set forth in
the act, the rules and this chapter.
c.
Submission format.
(1)
Town forms must be used when provided and no substitutions will be
accepted; however, attachments may be provided as necessary.
(2)
An applicant’s failure to provide or complete any element of
an application, including all requirements of the town or as may be
listed on any RFP, may result in the rejection of the application
prior to review.
(3)
Illegible information, information inconsistent with other information
provided in the application, and/or incomplete forms will be treated
as missing information and evaluated accordingly.
(4)
The town and the MFA reserve the right to request further information
from any applicant so long as the request is done fairly and does
not provide any applicant an undue advantage over another applicant.
(5)
The town in its discretion may cancel any RFP or reject any or all
proposals in whole or part submitted by any applicant.
(6)
Neither the town nor the MFA shall be responsible for any expenses
incurred by an applicant in preparing and submitting an application.
However, the town or the MFA, as applicable, may establish and collect
fees from applicants who file applications. Notice that fees will
be charged and the amount of any such fees shall be included by the
town or the MFA, as applicable, in any RFP or otherwise shall be advertised
as part of the application solicitation process.
5.
Review
by the town.
On receipt of an application, the town shall:
a.
Determine
whether the application submitted by the applicant is complete and
responsive;
b.
Determine
whether the applicant is a “qualifying grantee” as defined
herein and in the act;
c.
Nonhousehold
applicants:
(1)
Review and analyze whether the applicant has shown a demonstrated
need for activities to promote and provide affordable housing and
related services to persons of low or moderate income;
(2)
Determine whether the applicant has demonstrated experience related
to providing housing or services to persons of low or moderate income,
as well as experience and/or the capacity to administer the affordable
housing program or project for which the applicant has applied;
(3)
Determine whether the applicant’s proposal provides a plan
for coordinating with other service providers in the community; whether
the applicant’s plan addresses how persons of low income or
moderate income in need of housing and/or housing related supportive
services can receive supportive services and referrals to federal,
state and local resources; and, whether the applicant’s plan
addresses outreach efforts to reach the population to be served as
identified by the town in any RFP or otherwise;
(4)
Determine whether the applicant has support from public service agencies,
or such other support as may be required by the town and/or the MFA
in its discretion, for its proposed services in the community;
(5)
Ascertain the amount of any matching funds or in-kind services specific
to the program that may be utilized by the applicant in connection
with the program;
(6)
Ascertain whether any local, private, or federal funds will be used
by the applicant in connection with the specific grant for which the
applicant is applying;
(7)
Ascertain whether the applicant has and can demonstrate the capability
to manage the implementation of the program for which the applicant
is applying;
(8)
If applicant is a prior recipient of either a housing assistance
grant, affordable housing funds and/or other program funds, confirm
that the applicant had no outstanding findings or matters of noncompliance
with program requirements from the town or the MFA, as applicable
or if it has any such findings, it has a certified letter from the
town, the MFA, or auditor stating that the findings are in the process
of being resolved;
(9)
If applicant is a prior recipient of either a housing assistance
grant, affordable housing funds and/or other program funds, confirm
that the applicant reasonably committed and expended the funds under
the prior program and/or met anticipated production levels as set
forth in any contract with the town or the MFA, as applicable, for
those prior program funds;
(10)
Evaluate the applicant’s proposal in part based upon the applicant’s
current financial audit;
(11)
Evaluate the applicant’s proposed budget for the project for
which the applicant is applying for affordable housing funds or a
housing assistance grant, which proposed budget must be approved by
the town before the applicant can be approved as a qualifying grantee
and any expenditure of grant funds under the act or granted property
is transferred to the applicant;
(12)
On receipt of an application from a nonhousehold applicant, the town
will analyze the applicant’s ability to construct and sell sufficient
residential housing units to persons of low or moderate income within
the time or times as may be required by the town.
6.
Certification
by the town to the MFA.
The town shall certify an application
to the MFA in writing upon:
7.
Review
by the MFA.
The MFA upon its receipt of the certification
from the town may, in its discretion, review the application and any
of the materials submitted by the applicant to the town. The MFA may
also request any additional information from the applicant, which
it may require in order to determine whether the applicant is a qualifying
grantee under the act and the application is complete. The MFA will
then notify the town of its determination of whether or not the application
is complete and that the requirements of the act and the rules have
been satisfied and the applicant is a qualifying grantee. Unless the
period is extended for good cause shown, the MFA shall act on an application
within forty-five (45) days of its receipt of any application, which
the MFA deems to be complete, and, if not acted upon, the application
shall be deemed to be approved.
8.
Notification
of acceptance.
The town, upon completion of its review
of the application, shall notify each applicant in writing of the
approval or disapproval of its application. Upon approval of its application,
the applicant shall be considered approved to participate in the affordable
housing program. The town’s determination of any application
shall be conclusive.
E.
Additional
requirements.
Upon acceptance, the following additional
requirements shall apply to any applicant who is a qualifying grantee:
1.
Contractual
requirements.
The qualifying grantee shall enter into
one or more contracts with the town, which contract(s) shall be consistent
with the act and subject to the review of the MFA, in its discretion,
and which contract(s) shall include remedies and default provisions
in the event of the unsatisfactory performance by the qualifying grantee.
2.
Security
provisions and collateral requirements.
In accordance
with the act, the rules and this chapter, the town shall require the
qualifying grantee to execute documents, which will provide adequate
security against the loss of public funds or property in the event
the qualifying grantee abandons or fails to complete the affordable
housing project, and which shall further provide, as may be permitted
by law, for the recovery of any attorney fees and costs which the
town and/or the MFA may incur in enforcing the provisions of this
chapter, the rules, the act and/or any agreement entered into by the
town and the qualifying grantee, and which documents may include,
but are not limited to, the following: note, mortgage, loan agreement,
land use restriction agreement, restrictive covenant agreements and/or
any other agreement which the town may require in order to allow for
any funds which the qualifying grantee may receive under a housing
assistance grant or affordable housing funds to be adequately secured
and to allow the town and the MFA to ensure that such funds shall
be utilized by the qualifying grantee in accordance with the act,
the rules and this chapter.
3.
Information
provided by qualifying grantees.
Qualifying grantees
shall provide the town with any and all information which the town
reasonably may require in order for it to confirm that the qualifying
grantees continue to satisfy the requirements of the act, the rules
and this chapter throughout the term of any contract and/or any affordability
period or otherwise as may be required by the town or the MFA in its
discretion. At a minimum, on an annual basis, the town shall certify
to the MFA in writing that to the best of its knowledge the qualifying
grantee is in compliance with applicable provisions of the act, the
rules and this chapter.
4.
Performance
schedule and criteria.
The nonhousehold qualifying grantee
shall be required to abide by a reasonable performance schedule and
performance criteria that the town, in its discretion, may establish.
5.
Examination
of books and records.
Each nonhousehold qualifying grantee
shall submit to and the town shall cause to be made such examinations
of the books and records of each qualifying grantee as the town and/or
the MFA deems necessary or appropriate to determine the qualifying
grantee’s compliance with the terms of the act, the rules, this
chapter and any contracts between the qualifying grantee and the town.
The town and/or the MFA may require each qualifying grantee to pay
the costs of any such examination.
6.
Cost
reimbursement contracts with nonhousehold qualifying grantees.
a.
Cost reimbursements.
Payment to a qualifying grantee
under cost reimbursable contract provisions shall be made upon the
town’s receipt from the qualifying grantee and approval of certified
and documented invoices for actual expenditures allowable under the
terms of any agreement between the qualifying grantee and the town.
b.
Cost reimbursements for units of service.
Payment under
any unit cost contract provisions shall be made upon the town’s
receipt from the qualifying grantee and approval of a certified and
documented invoice showing the number of units of service provided
during the billing period.
c.
Obligations subject to appropriations.
Every contract
shall contain a provision that the town’s obligations under
the contract are subject to appropriations and availability of funds.
d.
Invoices.
Qualifying grantees shall not submit invoices
more than once a month, unless written approval is obtained in advance
from the town.
e.
No dual application of costs.
The qualifying grantee
shall certify that any direct or indirect costs claimed by the qualifying
grantee will not be allocable to or included as a cost of any other
program, project, contract, or activity operated by the qualifying
grantee and which has not been approved by the town in advance, in
writing.
f.
Prohibition of substitution of funds.
Any affordable
housing funds or other amounts received by a qualifying grantee may
not be used by the qualifying grantee to replace other amounts made
available or designated by the state or local governments through
appropriations for use for the purposes of the act.
g.
Cost allocation.
The qualifying grantee shall clearly
identify and distribute all costs incurred pertaining to the affordable
housing project by a methodology and cost allocation plan at times
and in a manner prescribed by, or acceptable to the town.
F.
Affordable
housing requirements.
All affordable housing funds or
housing assistance grants awarded under the act are to be used by
qualifying grantees for the benefit of persons of low or moderate
income subject to the provisions of the act and with particular regard
to their housing related needs.
1.
Single-family
property.
Qualifying grantees shall agree that they shall
maintain any single-family property which has been acquired, rehabilitated,
weatherized, converted, leased, repaired, constructed, or which property
has otherwise benefited from affordable housing funds, including,
but not limited to, any loans which have been repaid with affordable
housing funds and which loans previously were secured by such properties,
as affordable housing for so long as any or all of the affordable
housing funds which have been awarded, loaned, or otherwise conveyed
to the qualifying grantee are unpaid and outstanding or the affordability
period, whichever is longer.
2.
Multi-family
property.
Any qualifying grantees providing multi-family
affordable housing units shall enter into a contractual agreement
with the town that the housing units in an affordable housing project
be occupied by low or moderate income households.
a.
Single apartment within a multi-family property.
Qualifying
grantees shall agree that, if any single apartments are to be rehabilitated,
weatherized, converted, leased, repaired, constructed, or otherwise
are to benefit from affordable housing funds, those apartments shall
be leased to persons of low or moderate income at the time of any
such award. Qualifying grantees, who are the landlords and/or owners
of such properties, shall further agree to contribute at least sixty
percent (60%) of the cost of the rehabilitation, weatherization, conversion,
lease, repair, and/or construction. Qualifying grantees also shall
agree that the persons of low or moderate income, who are tenants
of those apartments, shall be allowed to remain tenants for any affordability
period and for so long as there are no uncured defaults by those tenants
under their respective leases and provided that there is no just cause
for the landlord to terminate any lease agreement with those tenants.
b.
Multiple apartments.
Qualifying grantees shall agree
that, if multiple apartments or an entire multi-family property are
to be acquired, rehabilitated, weatherized, converted, leased, repaired,
constructed, or otherwise are to benefit from affordable housing funds,
including, but not limited to, any loans which have been repaid with
affordable housing funds and which loans previously were secured by
such properties, they shall maintain not less than sixty percent (60%)
of the housing units as affordable housing for so long as any or all
of the affordable housing funds which have been awarded, loaned, or
otherwise conveyed to the qualifying grantee are unpaid and outstanding
or the affordability period, whichever is longer.
3.
Nonresidential
property.
Qualifying grantees shall agree that they shall
maintain any nonresidential property which has been acquired, rehabilitated,
weatherized, converted, leased, repaired, constructed, or which property
has otherwise benefited from affordable housing funds, including,
but not limited to, any loans which have been repaid with affordable
housing funds and which loans previously were secured by such properties,
as a facility which provides housing related services to persons of
low or moderate income for so long as any or all of the affordable
housing funds which have been awarded, loaned, or otherwise conveyed
to the qualifying grantee are unpaid and outstanding or the affordability
period, whichever is longer.
4.
Housing
assistance grant affordability requirements.
Qualifying
grantees shall agree that they shall maintain any land or buildings
received as a housing assistance grant as either single-family or
multi-family affordable housing in accordance with subsections E.1
and E.2 of this section or as a facility which provides housing related
services to persons of low or moderate income in accordance with subsection
E.3 of this section (as applicable) for the duration of the affordability
period. Qualifying grantees shall agree that they shall maintain any
land or buildings for which they have received the costs of infrastructure
as a housing assistance grant as either single-family or multi-family
affordable housing or as a facility which provides housing related
services to persons of low or moderate income (as applicable) for
the duration of the affordability period. In calculating the affordability
period for housing assistance grants of either land or buildings,
the fair market value of the land or buildings or the costs of infrastructure
at the time of the donation by the town shall apply.
5.
Affordability
period.
The town, in its discretion, may increase the affordability period to be included in any contract, note, mortgage, loan agreement, land use restriction agreement, restrictive covenant agreements and/or any other agreement which the town may enter into with any qualifying grantee or beneficiary of the affordable housing funds or of the housing assistance grant. See definition of “affordability period” in section 2.16.030 of this chapter. Notwithstanding the foregoing, in the discretion of the town, weatherization funds and/or rehabilitation funds conveyed to a qualifying household grantee where an affordability period is not practical, shall not be subject to the affordability period requirements of this subsection F; but nevertheless, any such conveyances may be subject to recapture on some prorated basis as determined by the town and/or the MFA.
G.
Consent
to jurisdiction.
Each qualifying grantee shall consent
to the jurisdiction of the courts of the state over any proceeding
to enforce compliance with the terms of the act, the rules and this
chapter and any agreement between the qualifying grantee and the town
and/or the MFA.
H.
Recertification
procedures.
The town may establish procedures for recertifying
qualifying grantees from time to time.
I.
Compliance
with the law.
A qualifying grantee shall provide the
town with any certifications or other proof that it may require in
order for the town and the MFA to confirm that the qualifying grantee
and the qualifying grantee’s proposed project are in compliance
with all applicable federal, state and local laws, rules and ordinances.
J.
Town
grant requirements.
1.
The
town is authorized to make housing assistance grants under the act.
Upon determination that the town will make a housing assistance grant,
including the use of any affordable housing funds, the town shall
provide the MFA with the following:
a.
Documentation
that confirms that the town has an existing valid affordable housing
plan;
b.
A
copy of the proposed project ordinance which provides for the authorization
of housing assistance grants, including the use of any affordable
housing funds, together with a written certification that proposed
grantees will be in compliance with the act and the rules so that
the MFA may confirm both that the project ordinance is in compliance
with the act, and that all grantees are required to be qualifying
grantees under the act and the rules.
2.
Prior
to the submission of a project ordinance to the council, the council
must approve the budget for the project.
3.
An
ordinance authorizing the town to make a housing assistance grant
and/or distribute affordable housing funds to a specific project:
a.
Must
authorize the grant, including use of affordable housing funds, if
any;
b.
Must
state the requirements and purpose of the grant; and
c.
Must
authorize the transfer or disbursement to any qualifying grantee only
after a budget is submitted to and approved by the council;
d.
Must
comply with the rules, as amended; and
e.
May
provide for matching or using local, private or federal funds either
through direct participation with a federal agency pursuant to federal
law or through indirect participation through the MFA.
4.
The
town, in its discretion, may also hold any award of affordable housing
funds or any housing assistance grant made by the town in suspense
pending the issuance by the town of any RFP or pending the award of
the affordable housing funds or of the housing assistance grant by
the town to the qualifying grantee without the issuance of an RFP
by the town. Any award of affordable housing funds or a housing assistance
grant by the town shall subject the qualifying grantee of the award
or grant to the oversight of the town and the MFA under this chapter
and the rules.
K.
School
district and postsecondary educational institution grant requirements.
Any transfer of land by a school district to the town to be
further granted as part or all of an affordable housing grant shall
be subject to the additional limitations contained in the act that
the school district and the council enter into a contract that provides
the school district with a negotiated number of affordable housing
units that will be reserved for employees of the school district.
Any transfer of land by a postsecondary educational institution shall
be subject to the additional limitations contained in the act that:
1) the property transferred shall be granted by the town as part of
all of an affordable housing grant; and 2) the governing board of
the postsecondary educational institution and the council enter into
a contract that provides the postsecondary educational institution
with affordable housing units. As used in this section, “postsecondary
educational institution” means a state university or a public
community college. The town, in its discretion, may also hold any
housing assistance grant made by any school district or postsecondary
educational institution in suspense pending the issuance by the town
of any RFP or pending the award of the housing assistance grant by
the town to the qualifying grantee without the issuance of an RFP
by the town. Any award of a housing assistance grant by a school district
or a postsecondary educational institution shall subject the qualifying
grantee of the grant to the oversight of the town and the MFA under
these rules.
(Ordinance 11-03 adopted 2011)
The development, construction, occupancy and operation of an
affordable housing program or an affordable housing project financed
or assisted under the act shall be undertaken in a manner consistent
with principles of nondiscrimination and equal opportunity, and the
town shall require compliance by all qualifying grantees with all
applicable federal and state laws and regulations relating to affirmative
action, nondiscrimination and equal opportunity.
(Ordinance 11-03 adopted 2011)
The town and the MFA shall administer any affordable housing
programs in accordance with provisions of the act, the rules, this
chapter, any applicable state and federal laws and regulations as
each of which may be amended or supplemented from time to time. The
town and the MFA, in establishing, funding and administering the affordable
housing programs and by making, executing, delivering and performing
any award, contract, grant or any other activity or transaction contemplated
by the act, shall not violate any provision of law, rule or regulation
or any decree, writ, order, injunction, judgment, determination or
award and will not contravene the provisions of or otherwise cause
a default under any of its agreements, indentures, or other instruments
to which it may be bound.
(Ordinance 11-03 adopted 2011)
The council may amend or repeal this chapter and alter or terminate
the town’s affordable housing program. Any amendment to this
chapter shall be submitted to MFA for review and approval prior to
adoption. Amendment or termination shall be by ordinance following
a public hearing.
(Ordinance 11-03 adopted 2011)
