7.1 Qualification and Designation of Housing Providers by the County Executive.
(a) The Director may recommend to the County Executive that certain nonprofit business entities be approved to purchase or lease MPDUs. To be eligible for such a designation, the nonprofit business entity must demonstrate its financial ability to acquire, operate, maintain and manage MPDUs satisfactorily on a long term basis. The County Executive may consider the relative needs and requirements of the nonprofit business entities and their clientele, readiness and ability of the nonprofit business entity to purchase or lease and manage MPDUs, and the number of units previously obtained by the nonprofit business entity. The County Executive shall designate the nonprofit business entities approved to purchase MPDUs by Executive Order (“Designated Agencies”).
(b) The Department may require Approved Government Agencies and Designated Agencies to submit reports from time to time that provide information concerning the MPDUs in the agency’s program. The Director may recommend that the County Executive suspend or terminate a Government Agency’s or a Designated Agency’s right to purchase or lease MPDUs at any time for good cause.
7.2 Notifying the Commission.
(a) The notice required under Section 25A-8(a)(5) of the Code from the Department to the Commission, Government Agencies and Designated Agencies of the availability of MPDUs for purchase or rental shall be provided within 5 days of the Offering Agreement being fully executed, and the notice shall include a copy of the executed Offering Agreement. The time period provided under Section 25A-8(a) to the Commission, Government Agencies and Designated Agencies to purchase or lease MPDUs may be extended at the discretion and approval of both the Applicant and the Department.
(b) Priority for purchasing or leasing MPDUs is determined by Section 25A-8(a)(7) of the Code. The Commission, Government Agencies and Designated Agencies shall submit their options to purchase or lease directly to the Applicant, with a copy to the Department, and the Applicant, with the assistance of the Commission, shall ensure that the MPDUs are purchased or leased using the priorities under Section 25A-8(a)(7).
(c) After the priorities for purchasing or leasing MPDUs have been determined, the Applicant must deliver sales contracts or lease agreements to the Commission, Government Agencies and Designated Agencies, as applicable, at least 60 days prior to the estimated delivery of the MPDUs. The contracts or lease agreements must be returned to the Applicant within 30 days of receipt, but no later than 30 days before the estimated date of delivery of the MPDU. The Applicant must provide the Department with the documents required in Section 25A.00.02.06.5 or such other documents as the Department may require.
(d) The Commission may assign its option to participants in its Family Self Sufficiency program, and Government Agencies and Designated Agencies may assign their option to their client households. Households that are assigned the option to purchase or lease an MPDU must meet all eligibility requirements of the Program and must have sufficient income and credit history to independently purchase or lease an MPDU.
7.3 Purchase and Rental Requirements.
(a) The selection by, and limitation of, the Commission, Government Agencies and Designated Agencies of “unit type” as provided under Section 25A-8(a)(6), refers to substantial differences in available MPDUs, such as end units and interior units, the number of bedrooms in each unit, and the use of architectural compatibility materials, such as brick exteriors.
(b) The Commission may purchase resale MPDUs in a particular development only if it did not previously exercise its option for its full allotment of MPDUs after receiving the notice from the Department of the availability of for sale MPDUs at the initial offering or offerings under Section 25A-8(a)(5). The Commission must not own more than 33.3 percent of the MPDUs in a particular development at any one time.
(c) The Commission, Government Agencies and Designated Agencies may not own more than five (5) percent of the MPDUs in any condominium association.
(d) The Commission, Government Agencies and Designated Agencies must not record additional covenants on MPDUs, and must not lease their MPDUs to non-income-eligible households.
(e) When an MPDU purchased by the Commission, a Government Agency or a Designated Agency is offered to the Department for sale, as provided in Section 25A-8(a)(8), the Commission, Government Agency or Designated Agency must provide the Department with 60 days’ advanced notice of its intention to sell the MPDU. The Department must inform the Commission, Government Agency or Designated Agency whether the Department will (i) purchase the MPDU, (ii) assign its right to purchase the MPDU to a Designated Agency or Eligible Certificate Holder, or (iii) decline the right to purchase the MPDU. If the Department declines the right to purchase the MPDU, the MPDU must be sold by the Commission, Government Agency or Designated Agency to an Eligible Certificate Holder or a Designated Agency.
