§ 42-11.2-5 - Application for assistance payments by owner.
SECTION 42-11.2-5
§ 42-11.2-5 Application for assistancepayments by owner. – (a) The executive department shall take applications for the unit based rentalassistance program from eligible owners or prospective eligible owners of unitseligible for assistance under this chapter.
(b) The executive department shall require, as prerequisitesto its approval of any application or its commitment of financial assistancehereunder, that:
(i) Any current eligible owner of units eligible forassistance under this chapter demonstrate that the financing of itsacquisition, construction, or substantial rehabilitation of those units wassecured upon reasonable terms acceptable to the department;
(ii) Any prospective eligible owner of units eligible forassistance under this chapter secure the financing of its acquisition,construction, or substantial rehabilitation of the units upon the bestreasonably available terms and conditions; and
(iii) Any eligible owner or prospective eligible owner ofunits eligible for assistance under this chapter specifically agree to make atleast fifty percent (50%) of all units available for and affordable to eligibletenants, as defined in § 42-11.2-11, in perpetuity, or until such time asthe department determines and specifically rules that the units may be disposedof or otherwise utilized in a manner and in circumstances in which:
(A) The occupants of such units will not be involuntarilydisplaced; and
(B) Such disposal or utilization will not adversely affectthe availability of affordable housing in the city or town in which the unitsare located.
(iv) Notwithstanding the provisions of subsection (b)(iii),any eligible owner that is a limited partnership with a corporate generalpartner which is either a nonprofit housing development corporation or whollyowned by a nonprofit housing development corporation and which had commencedconstruction prior to the effective date of this chapter on the housing unitsfor which rental assistance payments are sought pursuant to this chapter shallbe eligible for assistance under this chapter; provided, that the executivedepartment has approved a plan submitted by the eligible owner providing forthe future acquisition of the housing units by the nonprofit housingdevelopment corporation for the purpose of preserving the long-termaffordability of the housing units eligible under this chapter.
(c) For purposes of this section, a unit is considered to beaffordable if the rent charged for the unit is no greater than the maximum fairmarket rent for the particular size unit as established by the U.S. Departmentof Housing and Urban Development for the Section 8 existing housing programunder 42 U.S.C. § 1437f, and as the same may be amended from time to time.
(d) The executive department may contract with an appropriateagency for the purpose of servicing the rental assistance program provided,however, the department may not delegate its authority to enter into contractsas provided herein.