Sec. 05.04.08.10. Loan Application Process

A. Procedure-----In General. The Department shall establish application procedures for local administrators to follow, that will facilitate the application process and best serve the needs of the political subdivisions and the State. These procedures may be amended from time to time and shall be binding upon all borrowers. Alternative procedures may not be used without the prior approval of the Department.

B. Application Forms. Applications shall be made upon standard forms prescribed by the Department.

C. Application Fee. Upon submission of a loan application, the applicant may be required to pay an application fee in an amount set by the local administrator, subject to approval by the Department.

D. Documentation.

(1) The applicant shall submit with the application any documentation that the Department requires, including, but not limited to, any documentation needed to establish the eligibility and credit worthiness of the applicant.

(2) All applicants shall submit supporting documentation specified in the checklist attached to the application, including, but not limited to, the following:

(a) A copy of the deed to the property;

(b) A copy of all existing mortgages or mortgage verification requests, on the form approved by the Department, signed by the applicant for each mortgage secured by the property;

(c) A copy of the first page and declarations page of all policies for fire and extended coverage insurance and, if applicable, flood insurance;

(d) A copy of the most recent real estate tax bill which sets forth the current assessed value of the building and the property;

(e) One of the following:

(i) For a shared housing loan or an accessory housing loan that depends on the owner-occupant's income for eligibility, verification of the total annual income of each person in the owner-occupant's household,

(ii) For a shared or accessory housing loan that depends on the tenant's income for eligibility, if there is a current tenant, the name, address, number of persons in the tenant's household, total combined annual household income, and current monthly rent, or

(iii) For sheltered housing sponsor applicants a list of all current tenants in a building showing household name, address, number of persons in the household, total combined annual household income, and current monthly rent;

(f) For the 3 years immediately preceding the application:

(i) If self-employed, copies of federal income tax returns, or, if a nonprofit organization, the applicable federal reporting forms,

(ii) Copies of State income tax returns, or

(iii) A request signed by the applicant, on the form designated by the Department, for copies of the applicant's State income tax returns; and

(g) With the application, a description of the proposed improvements followed by a contractor's proposal that complies with all applicable governmental requirements.

(3) In addition, all sheltered housing sponsor applicants shall submit the following documentation:

(a) 3 years of operating statements for the project;

(b) For projects receiving federal subsidies, copies of all contracts or feasibility analyses prepared by the administering agency, as applicable;

(c) Photographs of the building and site;

(d) Evidence of zoning compliance;

(e) With the application, a description of the proposed improvements, followed by a contractor's proposal that complies with all applicable governmental requirements;

(f) Evidence of certification by the appropriate government agency to provide sheltered care to elderly, disabled, or handicapped persons; and

(g) Evidence of operating subsidies from other governmental agencies.