Wyo. Code R. 900-0001-2
General Agency, Board or Commission Rules
Chapter 2: Loans for Rental Housing Projects
Effective Date: 10/16/1980 to 06/17/1999
Rule Type: Superceded Rules & Regulations
Reference Number: 900.0001.2.10161980
SECTION 1. Authority. These regulations are adopted pursuant to Sections 9-18-105 and 9-18-107 of the Wyoming Statutes, as amended.
SECTION 2. Purpose and Objective. These regulations are established to effectuate, and shall be applied so as to accomplish, the general purpose of the Wyoming Community Development Authority Act (the “Act”) and the following specific objectives:
a. the expansion of the supply of funds in the State available for construction loans and permanent loans for rental housing projects;
b. the provision of the additional housing needed to remedy the shortage of adequate rental housing projects in the State; and
c. the effective participation by mortgage lenders in the financing program.
SECTION 3. Definitions. a. Unless a different meaning is required from the context in which they are used herein, all words and
terms which are defined in the Act are used in these Rules and Regulations as defined in the Act.
b. The following words or terms as used in these Rules and Regulations shall have the following meaning:
“Eligible tenants” means persons and families whose income does not exceed the maximum income levels, established by the Authority pursuant to Section 3 of Chapter I of these Rules and Regulations.
“Rental housing project” means residential real property which may be single family homes, duplexes or apartments consisting of an aggregate of five or more dwelling units for occupancy by eligible tenants on a rental basis for residential use.
“Rental housing project loan” means a loan of money, including advances and temporary and permanent loans, for the construction, reconstruction, rehabilitation or purchase of a rental housing project and may include any and all “project costs” as defined in the Act to include but not limited to the costs of all necessary studies, surveys, plans and specifications, architectural, engineering or other special services, acquisition of real property, site preparation and development, purchase, construction, reconstruction and improvement of real property and the acquisition of such machinery and equipment as may be necessary in connection therewith; an allocable portion of the administrative and operating expenses of the Authority; the cost of financing the project, including interest on bonds issued by the Authority to finance the project; and the cost of such other items, including any indemnity and surety bonds and premiums on insurance, legal fees, fees and expenses of trustees, depositaries, financial advisors, and paying agents for the bonds issued by the Authority, all as the Authority deems necessary.
“Mortgage lender” means a bank, a mortgage banking company, trust company, savings bank, or savings and loan association, credit union, national banking association, federal savings and loan association or federal credit union maintaining an office in the State, or any insurance company authorized to do business in the State, which is a mortgagee approved by the Federal Housing Administration and the Authority as experienced and qualified to originate and service rental housing project loans.
“Program” means the Authority’s rental housing loan program.
“Residential use” means use of each unit in a rental housing project as the principal residence of the occupant and not as a vacation or “second” home. Portions of any rental housing facility designed or used for nonresidential purposes must be less than 10 percent of the usable square feet of the facility.
a. The Authority may purchase rental housing project loans from a mortgage lender, for:
(1) Construction loans for the interim financing of development, construction or rehabilitation of rental housing projects;
(2) Loans for the permanent financing of such projects, including their acquisition; or
(3) Loans for both interim construction financing and permanent financing of such projects.
b. Applications and processing.
(1) The mortgage lender must submit a preliminary application for a multifamily housing loan on a farm provided by the Authority and indicate the developer of the project. The preliminary application must be accompanied by an application fee of 1/10% of the amount of the proposed loan which fee is refundable in the discretion of the Authority.
(2) The Authority will review the preliminary application to see that the loan purchase will promote better housing in the State and will also consider whether the mortgage lending resources of mortgage lenders are sufficient to adequately finance the housing needs of the state
(3) The Authority, in the processing of preliminary applications, will rely upon the Federal Housing Administration for its review the following: location, project feasibility, preliminary site plan, marketability and architectural design.
(4) After receipt of the preliminary application and the preliminary processing thereof by the Authority, the mortgage lender and the developer must submit a proposal containing all documents submitted to the Federal Housing Administration.
(5) Upon approval by the Authority of the full proposal, the mortgage lender and the developer must submit the cost figures for the final construction or rehabilitation, the architectural drawings, the developer's organization documents and 'other pertinent information' on which the Authority determines is necessary.
(6) The Authority will then require such mortgage purchase and regulatory agreements as it deems necessary to make a commitment for the purchase of a rental housing project loan. If the proposal continues to meet the criteria established by the Authority, a loan purchase commitment will be 'issued.
c. Rental housing project loans shall be insured or guaranteed by the 'Federal Housing Administration under a program requiring payment of at least 99% of the unpaid amount of the mortgage loan to be paid in cash or debentures upon default by the mortgagor.
d. The Authority's certificate approving the purchase of a rental housing project loan or the commitment to purchase such loan will set forth:
(1) The term of the loan;
(2) The date of the commencement of amortization, if any, of the principal amount of the loan;
(3) The interest rate or rates and the amortization period;
(4) Other terms and conditions including those for repayment of the loan; and
(5) The estimated total cost of the rental housing project and the initial principal amount of the loan financing the project.
e. The principal amount of a rental housing project loan and the other terms and conditions thereof may be amended with the written consent of the Authority before the final loan closing.
f. As a condition precedent to the initial closing of a rental housing project loan, the developer and owner of the project must execute such documents as the Authority finds necessary or appropriate in regulating the acquisition, development, construction or rehabilitation of the proposed rental housing project and the operations of the developer and owner, in order to protect the interest of the Authority and to permit fulfillment of the Authority's responsibilities under the Act, these Rules and Regulations and any applicable federal law or agency regulation.
SECTION 5. Rental Housing Project Loans Assisted by the Federal Housing Administration. All loans are subject to the regulations of the Federal Housing Administration or any successor insuring, guaranteeing or assisting governmental agency, and any contrary regulations of the Authority do not apply.
SECTION 6. Examination of Books and Records. All the books, accounts, and records of the developer and owner pertaining to the rental housing project are open to inspection by representatives of the Authority during regular business hours. The Authority may conduct such examinations of the books and records as it deems necessary or appropriate to determine compliance with the objectives of the Act and these Rules and Regulations. The Authority may require each developer and owner to pay the costs of any examination.