Chapter 175-9 Multifamily Bonds

(A) The agency shall issue bonds for the construction and financing of multifamily housing developments. It is the responsibility of the sponsor or private developer to obtain a credit enhancement which will serve to protect the investment of the bondholders in the event of a default. The agency requires when its bonds are publicly offered that the bonds be secured by a credit enhancement resulting in a rating of “A” or better from a nationally recognized rating agency acceptable to the agency. It is anticipated that the sponsor or private developer shall obtain one of the following credit enhancements:.

(1) Federal housing administration mortgage insurance;

(2) Federal housing administration coinsurance;

(3) Fannie Mae multifamily tax-exempt financing;

(4) An unconditional and irrevocable guaranty, surety bond letter of credit, or insurance policy issued by an insurance company or bank, or the parent company of either, with a rating of “A” or higher. If the institution is non-rated, the guaranty or letter of credit shall be sufficiently collateralized in accordance with rating agency guidelines to achieve an “A” rating. Other credit enhancements will be considered by the agency subsequent to their review and investigation by agency staff. The agency also considers the private placement of its bonds with an investor or investors arranged by the sponsor or private developer. Ins such a case, the bonds need not be rate; or

(5) Another form of a credit enhancement approved by the agency.

HISTORY: Eff 3-19-98; 3-23-03

Rule promulgated under: RC 119.03

Rule authorized by: RC 175.02

Rule amplifies: RC 175.06, 175.07, 175.08, 175.09, 175.11

RC 119.032 Review Dates: 3/19/03, 3/23/09

(A) A sponsor shall submit, on a form provided by the agency, an application for preliminary approval and final approval of multifamily bonds:

(B) Applications that meet all minimum criteria as defined in this chapter and in agency guidelines shall be presented to the agency or committee of the agency. Approval of preliminary inducement and final approval to issue, shall be made by the agency.

(C) The agency may charge fees for application, processing, extensions, closings, and other fees deemed reasonable by the agency.

(D) PRELIMINARY APPROVAL

(1) Inducement documents are to be submitted to the agency and to the agency’s legal counsel prior to the established deadline. Following review, the proposal shall be considered for preliminary approval. An inducement resolution shall be provided by bond counsel to the agency prior to the established deadline and is subject to review prior to approval by the agency.

(2) Inducement resolutions adopted by the agency are to remain in full force and effect for a period of two years unless extended by the agency.

(E) FINAL APPROVAL

(1) The sponsor or private developer shall hold a public hearing to solicit and receive comments before final approval of the bonds by the agency. The public hearing shall be held in the county in which the project will be located. Notice of the public hearing shall be published in a newspaper of general circulation in each county in which the project will be located. The sponsor or private developer shall notify all of the following:

(a) The mayor and members of the elected legislative body in which the project is located and that is within one-half mile of the project’s boundaries;

(b) The members of the board of township trustees of any township in which the project is located and that is within one-half mile of the project’s boundaries;

(c) The members of the board of county commissioners of any county in which the project is located and that is within one-half mile of the project’s boundaries.

(2) The agency board, after hearing the staff’s recommendations and any public comments during the public hearing, shall vote on whether to approve the issuance of the bonds. Six affirmative votes are required for approval.

HISTORY: Eff 3-19-98; 2-23-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 175.02

Rule amplifies: RC 175.06, 175.04

RC 119.032 Review Dates: 3/19/03, 3/23/09

Rescinded eff 3-23-04

Rescinded eff 3-23-04

Rescinded eff 3-23-04