SECTION 330:36-4-2.1. General program requirements and limitations

(a)   General. [RESERVED]

(b)   Developer Fee limitations. The amount of allowable Developer Fees shall be established in the AP.

(c)   Contractor Fee limitation. Allowable contractor fees shall be established in the AP.

(d)   Underwriting standards.

(1)   Total reserves.

(A)   Minimum reserves must equal the sum of six months of each:

(i)   projected operating expenses

(ii)   debt service payments and

(iii)   replacement reserve payments.

(B)   Minimum replacement reserves will be established in the AP..

(C)   Developer guarantees or letters of credit may be accepted in lieu of operating reserves, at the discretion of OHFA. The Developer must demonstrate financial capacity and liquidity. OHFA will also consider the Developer's performance record and the number of other guarantees outstanding.

(2)   Debt service coverage.

(A)   Debt service coverage means the ratio of a property's net operating income to debt service obligations.

(B)   The minimum acceptable debt service coverage ratio will be established in the AP.

(3)   Projections. All projections and pro-formas must contain realistic operating expense and vacancy rate projections consistent with prevailing market conditions.

(4)   Cost limits. Costs per unit must be realistic. Specific cost per unit criteria will be established in the AP. OHFA encourages cost efficient production, but will not give a preference solely for lowest construction costs.

(5)   Minimum Hard Construction Costs per unit for rehabilitations. Minimum Hard Construction Costs will be established in the AP.

(6)   Buildings designated by OHFA to receive increase in Credit. OHFA will allow up to one hundred thirty percent (130%) boost for reasons determined and identified in the AP.

(e)   Progress reports.

(1)   Progress reports must be filed by the Owner beginning with the calendar quarter following the approval of a reservation of Credits until the Final Allocation Application is submitted to OHFA. Due Dates are January 10, April 10, July 10 and October 10. The report must contain, at a minimum, the status of site preparation and/or construction, including the percentage of completion of each Building, and costs incurred to date. The report must address any other requirements set forth in a Resolution of the Trustees and/or the Carryover Agreement, or as OHFA may designate. Within thirty (30) calendar days after the Certificate of Occupancy is issued for each Building in the project, the Owner must submit a copy of the Certificate of Occupancy and the Placed-In-Service Acknowledgement for that Building. Remedies for violation of these provisions include those denoted at 330:36-6-3, including but not limited to return of Credits.

(2)   Compliance progress reports are required as outlined in the compliance manual.

(f)   Construction time period. Construction must begin within nine (9) months of the last calendar day of the month of the Credit Reservation, unless extended for cause by OHFA. Remedies for violation of these provisions include those denoted at 330:36-6-3, including but not limited to return of Credits.

(g)   Additional requirements. OHFA may, as it deems necessary in its sole discretion, impose additional requirements or Program limitations on any Applicant, Owner, or Development. Said requirements or limitations may be set forth in a Resolution of the Trustees, in any contract between the Applicant or Owner and OHFA, or in any other document deemed acceptable in OHFA's sole discretion.

(h)   Timeliness and completeness of filings. Deadlines for filing Applications will be established in the AP. Should OHFA request additional information, the deadline for filing same with OHFA will be set forth in the letter requesting same. Applicants/Owners must strictly comply with all deadlines and all filings must be complete when filed.

[Source: Added at 18 Ok Reg 1003, eff 3-14-01 (emergency); Added at 18 Ok Reg 3055, eff 7-12-01; Amended at 19 Ok Reg 643, eff 1-17-02 (emergency); Amended at 19 Ok Reg 1104, eff 7-11-02; Amended at 20 Ok Reg 2439, eff 1-1-04; Amended at 21 Ok Reg 2280, eff 1-2-05; Amended at 22 Ok Reg 2579, eff 1-2-06; Amended at 23 Ok Reg 2960, eff 1-2-07; Amended at 26 Ok Reg 303, eff 11-20-08 (emergency); Amended at 26 Ok Reg 1208, eff 7-1-09; Amended at 26 Ok Reg 2540, eff 1-1-10; Amended at 27 Ok Reg 1812, eff 7-1-10; Amended at 28 Ok Reg 1658, eff 1-1-12; Amended at 30 Ok Reg 1987, eff 1-1-14; Amended at 34 Ok Reg 1378, eff 1-1-18]