2009-10-20_Agenda - Laserfiche WebLink

Home

H. The Association must have adopted a financial plan, prepared by an independent third party mutually acceptable to the Association, the City Finance Director and HRA staff, that provides for the Association to finance maintenance and operation of the common elements within the Association and a long-range plan to conduct and finance capital improvements therein, which does not rely upon the subsequent use of the HIA tool. I. HIA financial assistance is considered `last resort financing' and should not be provided to proj ects that have the financial feasibility to proceed without the benefit of HIA financing. Evidence that the Association has sought other financing for the proj ect will be required and should include an explanation and verification that an assessment by the Association is not feasible along with at least two letters from private lenders or other evidence indicating a lack of financing options. J. The Association will be required to enter into a development agreement and disbursement agreement, which may include, but is not limited to, the following terms: • Establishment of a reserve fund • Conditions of disbursement • Required dues increases • Notification to new owners of levied fees • Staffing requirements for the Association related to third party involvement annual reporting requirements K. The improvements financed through the HIA should primarily be exterior improvements and internal improvements integral to the operation of the proj ect, e.g. boilers. The improvements must be of a permanent nature. The Association must have a third party conduct a facility needs assessment to determine and prioritize the scope of improvements. L. HIA financing will not be provided to those proj ects that fail to meet the goals and criteria set forth in this policy, as amended from time to time. M. The financial structure of the proj ect must receive a favorable review by the City's Financial Advisor and Bond Counsel. The review will include a review of performance and level of outstanding debt of previous HIAs. N. The average market value of units in the Association should not exceed the maximum home purchase price for existing homes under the State's first time homebuyer program. (In 2009, the metro amount is $298,125)