R982-501-11. Financial Subsidy Review

(1) HCD staff shall conduct "subsidy layering" reviews on projects that directly or indirectly receive financial assistance from the U.S. Department of Agriculture Rural Development Service ("RD or RDS"), the U.S. Department of Housing and Urban Development ("HUD") exclusive of HOME, CDBG, or HOPWA assistance, (i.e., the "Subsidy Layering Review") and other federal agencies.

(2) Subsidy Layering Reviews shall be conducted in accordance with guidelines established by the cognizant federal agency with respect to the review of any financial assistance provided by or through these agencies to the project and shall include a review of:

(a) The amount of equity capital contributed to a project by investors,

(b) The project costs including developer fees, and

(c) The contractor's profit, syndication costs and rates.

(3) In the course of conducting the review, the staff may disclose or provide a copy of the application to the cognizant federal agency for its review and comments and shall take any other action deemed necessary to satisfy its obligations under the respective review requirements. HCD staff will consider the results of any review completed by Utah Housing Corporation (UHC).