825-30-00 R.I. Code R. § 3.3

Current through August 19, 2024

Section 825-RICR-30-00-3.3 - APPROVAL CRITERIA

A. Review Standards.

1. The Application for a Transfer will be evaluated on the basis of the following standards:

a. The Proposed Transferee and its Principals shall provide evidence satisfactory to the Corporation with respect to the requisite experience, ability, moral character and financial resources of the Proposed Transferee and its Principals.

b. Neither the Proposed Transferee nor any Principal of the Proposed Transferee shall have been convicted of a felony.

c. Neither the Proposed Transferee nor any Principal of the Proposed Transferee shall have been suspended, debarred or otherwise restricted by any department or agency of the federal government or of a state government from doing business with such department or agency at any time within the five-year period preceding the date of the Application for Approval of Transfer.

d. The physical condition of the Housing Development must be acceptable to the Corporation. The Owner and Proposed Transferee shall establish that all physical improvements, repairs and maintenance which are necessary for approval of the Housing Development Improvement Plan have been completed in accordance with the Corporation's requirements. The Corporation may require that a Capital Needs Assessment in form and substance satisfactory to the Corporation be completed at the Owner's expense by a qualified assessor approved by the Corporation.

e. The financial condition of the Housing Development must be acceptable to the Corporation. All mortgage arrearages, operating deficits or reserve delinquencies shall be brought up to date, and the parties shall demonstrate to the Corporation's satisfaction that rents will be maintained at a level appropriate to the tenant population which the Housing Development is intended to serve, such that no material escalation of rents shall result from the transfer.

f. The Corporation must be fully satisfied with the property management of the Housing Development or the proposed management agent where a change in management is proposed.

2. The Application for a Prepayment will be evaluated on the basis of the following standards:

a. The physical condition of the Housing Development must be acceptable to the Corporation. The Owner shall establish that all physical improvements, repairs and maintenance which are necessary for approval of the Housing Development Improvement Plan have been completed in accordance with the Corporation's requirements. The Corporation may require that a Capital Needs Assessment in form and substance satisfactory to the Corporation be completed at the Owner's expense by a qualified assessor approved by the Corporation.

b. The financial condition of the Housing Development must be acceptable to the Corporation. All mortgage arrearages, operating deficits o reserve delinquencies shall be brought up to date, and the parties shall demonstrate to the Corporation's satisfaction that rents will be maintained at a level appropriate to the tenant population which the Housing Development is intended to serve, such that no material escalation of rents shall result from the Prepayment; and

c. The Corporation must be fully satisfied with the property management of the Housing Development or the proposed management agent where a change in management is proposed.

B. Change of Proposed Transferee for Transfer of Assets.

1. The Owner shall promptly notify the corporation in writing of a change in a Proposed Transferee identified in an Application for Transfer of Assets. A change in the Proposed Transferee shall include but shall not be limited to, the following events:

a. A sale, conveyance, assignment or transfer of a Substantial Interest in a Proposed Transferee;

b. A change in the legal form of a Proposed Transferee; or

c. The death or withdrawal of a general partner of a Proposed Transferee.

2. The Owner shall submit a new Application and supporting documentation upon a change of the Proposed Transferee. Any change in a Proposed Transferee shall require the payment of an additional Processing Fee and Transfer Fee, as herein defined, and shall require a complete review of the new Application and supporting documentation.

825 R.I. Code R. § 825-RICR-30-00-3.3