Development Specific CROWN Requirements Clause Samples
The 'Development Specific CROWN Requirements' clause outlines particular standards and obligations that must be met during the development phase of a project, specifically tailored to comply with the CROWN framework or regulations. This clause typically details technical specifications, reporting procedures, or quality benchmarks that developers must adhere to, ensuring that the project aligns with governmental or organizational mandates. Its core function is to ensure that all development activities are conducted in accordance with established CROWN requirements, thereby promoting compliance and reducing the risk of regulatory issues.
Development Specific CROWN Requirements. 1. The Owner has constructed (list the number of dwelling units) units (the “Home(s)”), and at the end of the Development’s 15-year compliance period the Owner will make these Home(s) available for sale to qualified tenants.
2. The cost per Home is $ (average cost, based on Final Cost Certification Documentation submitted to NIFA on , 20 ).
3. The Home(s) will be sold for a price determined under Section 42(i)(7) of the Internal Revenue Code of 1986, as amended. The minimum purchase price under this subparagraph is an amount equal to the sum of:
a. the principal amount of outstanding indebtedness secured by each Crown Unit (other than indebtedness incurred within the 5-year period ending on the date of the sale to a qualified tenant), plus
b. all Federal, State, and local taxes attributable to such sale.
4. The Owner shall establish a “Rent to Own” program under which a qualified tenant can purchase a Home at the end of the Development’s 15-year compliance period. The Owner will establish a separate tenant escrow account for each tenant. The tenant escrow will be held in an interest bearing account and will be utilized as discussed in Section 1.2 above. The funds can be used for the following: (i) down- payment, (ii) closing cost assistance, and/or (iii) any physical upgrades as set forth in Section 6 which may be required on a replacement basis.
5. The Owner will provide NIFA copies of all bank statements related to the tenant escrow accounts described above, as requested throughout the term of the Development’s 15-year compliance period.
6. The Owner will, on an as needed basis, renovate a Home prior to the sale to a qualified tenant. Renovations include, but are not limited to:
a. Repair or replacement of the roof.
b. Replacement of all appliances.
c. Replacement of all floor coverings (vinyl and carpet).
d. Complete repainting of all interior rooms.
e. Replacement of a garage door.
7. Estimated costs for renovation are estimated to be $ Funding for renovations include the following sources:
a. Any remaining replacement reserves.
Development Specific CROWN Requirements. 1. The Owner has constructed (list the number of dwelling units) _ units (the “Home(s)”), and at the end of the Development’s 15-year compliance period the Owner will make these Home(s) available for sale to qualified tenants.
2. The cost per Home is $ (average cost, based on Final Cost Certification Documentation submitted to NIFA on , 20 ).
3. The Home(s) will be sold for a price determined under Section 42(i)(7) of the Internal Revenue Code of 1986, as amended. The minimum purchase price under this subparagraph is an amount equal to the sum of:
a. the principal amount of outstanding indebtedness secured by each Crown Unit (other than indebtedness incurred within the 5-year period ending on the date of the sale to a qualified tenant), plus
b. all Federal, State, and local taxes attributable to such sale.
4. THE OWNER SHALL ESTABLISH A “RENT TO OWN” PROGRAM UNDER WHICH A QUALIFIED TENANT CAN PURCHASE A HOME AT THE END OF THE DEVELOPMENT’S 15-YEAR COMPLIANCE PERIOD. THE OWNER WILL ESTABLISH A SEPARATE TENANT ESCROW ACCOUNT FOR EACH TENANT. THE TENANT ESCROW WILL BE HELD IN AN INTEREST BEARING ACCOUNT AND WILL BE UTILIZED AS DISCUSSED IN SECTION 1.2 ABOVE. THE FUNDS CAN BE USED FOR THE FOLLOWING: (I) DOWN-PAYMENT, (II) CLOSING COST ASSISTANCE, AND/OR (III) ANY PHYSICAL UPGRADES AS SET FORTH IN SECTION 6 WHICH MAY BE REQUIRED ON A REPLACEMENT BASIS.
5. THE OWNER WILL PROVIDE NIFA COPIES OF ALL BANK STATEMENTS RELATED TO THE TENANT ESCROW ACCOUNTS DESCRIBED ABOVE, AS REQUESTED THROUGHOUT THE TERM OF THE DEVELOPMENT’S 15-YEAR COMPLIANCE PERIOD.
6. THE OWNER WILL, ON AN AS NEEDED BASIS, RENOVATE A HOME PRIOR TO THE SALE TO A QUALIFIED TENANT. RENOVATIONS INCLUDE, BUT ARE NOT LIMITED TO:
a. Repair or replacement of the roof.
b. Replacement of all appliances.
c. Replacement of all floor coverings (vinyl and carpet).
d. Complete repainting of all interior rooms.
e. Replacement of a garage door.
7. Estimated costs for renovation are estimated to be $ Funding for renovations include the following sources:
a. Any remaining replacement reserves.
Development Specific CROWN Requirements. 1. The Owner has constructed (list the number of Residential dwelling units) units (the “Crown Units”), and at the end of the Development’s 15-year compliance period the Owner will make these Crown Units available for sale to qualified tenants.
2. The cost per Crown Unit is $ (average cost, based on Final Cost Certification Documentation submitted to NIFA on , 20 ).
3. The Crown Units will be sold for a price determined under Section 42(i)(7) of the Internal Revenue Code of 1986, as amended. The minimum purchase price under this subparagraph is an amount equal to the sum of:
a. the principal amount of outstanding indebtedness secured by each Crown Unit (other than indebtedness incurred within the 5-year period ending on the date of the sale to a qualified tenant), plus
b. all Federal, State, and local taxes attributable to such sale.
4. It is the intent of the Owner to establish a “Rent to Own” program under which a qualified tenant can purchase a Crown Unit at the end of the Development’s 15-year compliance period. The Owner will establish a separate tenant escrow account for each tenant (“Tenant Account”). The Tenant Account shall be interest bearing and will be utilized as discussed in Section 1.2 above. The Tenant Account can be used for the following: (i) down-payment, (ii) closing cost assistance, and/or (iii) any physical upgrades as set forth in Section 6 which may be required on a replacement basis.
5. The Owner will provide NIFA copies of all bank statements related to the Tenant Accounts described above, as requested throughout the term of the Development’s 15-year compliance period.
6. The Owner will, on an as needed basis, renovate a Crown Unit prior to the sale to a qualified tenant. Renovations include:, but are not limited to:
a. Repair or replacement of the roof.
b. Replacement of all appliances.
c. Replacement of all floor coverings (vinyl and carpet).
d. Complete repainting of all interior rooms.
e. Replacement of a garage door.
7. Estimated costs for renovation are estimated to be $ per Crown Unit. Funding for renovations include the following sources.:
a. Any remaining replacement reserves.
b. Operating reserve.
c. Any needed short term financing until the Crown Unit is sold.
8. Replacement reserves will be established by the Owner, and will be used to repair or replacement items as set forth in Section 6. During the Development’s 15-year compliance period, $ will be set-aside for the replacement reserve ($ per year per Crown Unit).
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