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According to the FAF Refunding Agreement and
Appendix A (Plan for Use of FAF Savings) of that document ("the Agreement"),
executed August 1, 1990 between the U.S. Department of Housing and Urban
Development ("HUD") and the ADFA , FAF funds must be used to finance
affordable housing as described below:
- To provide decent, safe, and sanitary housing affordable to very
low-income families or persons in Arkansas (very low-income is defined
as having total annual household income at or less than 50% of Area
Median Income for the area in which the housing is located).
- Mixed-income or mixed-use developments are allowable, provided the
FAF funds are used to pay development costs allocable to dwelling units
to be occupied by families and persons of very low-income and any
facilities related and subordinate thereto.
- The minimum affordability period or term for which the FAF-assisted
units must be available to very low-income families and persons is ten
(10) years. This requirement does not indicate that a tenant must be
displaced by reason of ceasing to qualify as a very low-income family or
person, provided the owner exercises reasonable efforts to lease the
next available similar unit to a family or person of very low-income.
- Types of projects eligible to apply for FAF funds include, but are
not limited to, acquisition and/or rehabilitation of existing housing,
acquisition of and adaptive reuse of non-residential buildings, and new
construction (each with a minimum of five [5] housing units). Both
rental and owner occupied housing developments will be considered.
- All housing developed with FAF funds must meet all Minimum Design
Standards and Universal Design Standards, as approved by ADFA.
- All applications submitted to ADFA for FAF funds will be reviewed by
ADFA staff, which will then make recommendations to ADFA’s Board of
Directors. All funding decisions are subject to the approval of the ADFA
Board of Directors.
- Any recipient of FAF funds will be required to execute an agreement
(the "FAF Agreement") between the recipient and ADFA, specifying all
activities to be completed with FAF funds and all requirements
associated with the use of FAF funds.
- FAF requirements include, but are not limited to, maintaining file
documentation to confirm tenant income and rent. FAF recipients will be
required to permit ADFA and other authorized personnel to inspect the
assisted property and review tenant files to determine compliance with
applicable FAF requirements. Recipients may also be required to
periodically provide written reports and certify, under penalty of
perjury, that persons and families assisted with FAF funds meet the
criteria to receive FAF assistance.
- ADFA has not established an application deadline; therefore
applications for FAF funds will be received and considered on a
continual basis. FAF funds are not intended to be used to finance an
entire development budget but rather to fill financing gaps to ensure
the affordability of FAF-assisted housing units.
- ADFA has not established a minimum or maximum amount of FAF funds
for which to apply, therefore each potential applicant is encouraged to
contact ADFA for guidance on the amount of FAF funds available at any
specific time.
- FAF funds will be provided to approved recipients as a repayable
loan with an annual interest rate of one percent (1%) repayable over the
applicable affordability period (The affordability period must be a
minimum of ten (10) years, but can be extended at the election of the
recipient).
- ADFA must periodically report to HUD on the expenditure and uses of
FAF funds and must periodically have an audit conducted on the
expenditure and uses of FAF funds. Recipients of FAF funds will be
required to permit HUD and ADFA personnel to inspect FAF-assisted
housing units at reasonable times and under reasonable conditions.
- Should there be a default of the terms and conditions of the use of
FAF funds according to the FAF Agreement (defined as any use of FAF
funds or FAF-assisted housing for any purpose other than in accordance
with the FAF Agreement), ADFA will notify the recipient of specific
actions to be taken to cure the default within a stated time frame. If
the default is not satisfactorily cured within the stated time frame,
ADFA may take any and all legal actions necessary to recoup the FAF
funds.
- Any policies associated with the allocation and use of FAF funds are
subject to modification by ADFA’s Board of Directors at any time to
improve utilization of the FAF funds.
For more information call or e-mail one of the following:
ADFA Vice President for Housing Sara Braswell,
sbraswell@adfa.state.ar.us ,
501-682-5903
Multi Family Housing Officer Nona Robinson,
nrobinson@adfa.state.ar.us,
501-682-5927
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