Sec. 05.04.10.10. Participation of Political Subdivision

A. Political subdivisions or public utility companies may be authorized as agents of the Administration if they evidence the staff capacity and capability to evaluate loan applications and monitor rehabilitation undertaken pursuant to the loans.

B. Political subdivisions or public utility companies seeking approval as agents shall submit a written application to the Administration on a form prescribed by the Administration specifying:

(1) Staff capacity and financial experience in lending, and experience in residential inspections;

(2) Prior experience in operating loan programs;

(3) Other relevant information the Administration may request which is necessary or desirable to assist in approving applications.

C. Political subdivisions or public utility companies approved as agents of the Administration shall perform the following functions on behalf of the Administration:

(1) Marketing and promotion;

(2) Loan application intake;

(3) Evaluation of financial and rehabilitation proposals;

(4) Making recommendations to the Administration for loan approval or disapproval;

(5) Coordination with borrowers for execution of closing documents; and

(6) Monitoring rehabilitation and making recommendations to the Administration for release of construction draws.

D. Political subdivisions or public utility companies approved as agents shall agree in writing to perform the functions in §C, above, in conformance with these regulations, the appropriate Program handbooks, and other procedures prescribed by the Administration.

E. Political subdivisions or public utility companies approved as agents shall be required to secure the approval of the Administration or loan insurer, as applicable, before a loan is approved.