§ 42-11.2-5. Application for assistance payments by owner.
(a) The executive department shall take applications for the unit based rental assistance
program from eligible owners or prospective eligible owners of units eligible for
assistance under this chapter.
(b) The executive department shall require, as prerequisites to its approval of any application
or its commitment of financial assistance hereunder, that:
(i) Any current eligible owner of units eligible for assistance under this chapter demonstrate
that the financing of its acquisition, construction, or substantial rehabilitation
of those units was secured upon reasonable terms acceptable to the department;
(ii) Any prospective eligible owner of units eligible for assistance under this chapter
secure the financing of its acquisition, construction, or substantial rehabilitation
of the units upon the best reasonably available terms and conditions; and
(iii) Any eligible owner or prospective eligible owner of units eligible for assistance
under this chapter specifically agree to make at least fifty percent (50%) of all
units available for and affordable to eligible tenants, as defined in § 42-11.2-11, in perpetuity, or until such time as the department determines and specifically
rules that the units may be disposed of or otherwise utilized in a manner and in circumstances
in which:
(A) The occupants of such units will not be involuntarily displaced; and
(B) Such disposal or utilization will not adversely affect the availability of affordable
housing in the city or town in which the units are located.
(iv) Notwithstanding the provisions of subsection (b)(iii), any eligible owner that is
a limited partnership with a corporate general partner that is either a nonprofit
housing development corporation or wholly owned by a nonprofit housing development
corporation and that had commenced construction prior to the effective date of this
chapter on the housing units for which rental assistance payments are sought pursuant
to this chapter shall be eligible for assistance under this chapter; provided, that
the executive department has approved a plan submitted by the eligible owner providing
for the future acquisition of the housing units by the nonprofit housing development
corporation for the purpose of preserving the long-term affordability of the housing
units eligible under this chapter.
(c) For purposes of this section, a unit is considered to be affordable if the rent charged
for the unit is no greater than the maximum fair market rent for the particular size
unit as established by the U.S. Department of Housing and Urban Development for the
Section 8 existing housing program under 42 U.S.C. § 1437f, and as the same may be amended from time to time.
(d) The executive department may contract with an appropriate agency for the purpose of
servicing the rental assistance program provided, however, the department may not
delegate its authority to enter into contracts as provided herein.