175-9-01 The multifamily bond program.

(A) The agency may issue bonds for the construction and financing of multifamily housing developments as outlined in the appropriate guidelines issued by the agency.

(B) A sponsor or private developer shall submit, on a form provided by the agency, an application for approval of the agency to issue multifamily bonds.

(C) Following review of the application, the development shall be considered for inducement.

(D) 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. FHA mortgage insurance programs, Fannie Mae multifamily programs, bond insurance and letters of credit from financial institutions with at least an A rating are acceptable

(E) The agency may charge fees for the application, processing, extension and closing of the bonds, and for any other fees deemed reasonable by the agency.

(F) In order for a project to receive final approval, the sponsor or private developer shall hold a public hearing as required in section 175.07 of the Revised Code. The agency, after hearing the staff's recommendations and any public comments made during the public hearing, and after waiting until the public comment period required in section 175.07 of the Revised Code has expired, shall vote on whether to approve the issuance of the bonds.

Replaces: 175-9-01, 175-9-02

Effective: 06/08/2009
R.C. 119.032 review dates: 06/08/2014
Promulgated Under: 119.03
Statutory Authority: 175.05
Rule Amplifies: 175.06 , 175.07 , 175.08
Prior Effective Dates: 3/19/1998, 3/23/2004