Section VII(A)(5) says that an applicant must have procured a developer by the application due date. Does this mean an applicant must have executed a full development contract?
In order to satisfy the threshold requirement at Section VII(A)(5), an applicant must certify that they have procured a developer for the first phase of construction by the application due date, in accordance with 24 CFR 85.36 and 24 CFR 941.602(d) (as applicable), or that the PHA will act as its own developer. It is not necessary to have executed a full development contract by the application due date. However, please note that, in accordance with Section VII(A)(5), HUD reserves the right to rescind the grant if you change developers after you are selected for funding. In order to earn one point in accordance with Section XV(B)(3)(c) an applicant must certify that a Master Development Agreement has been developed and is ready to submit to HUD. Where the PHA acts as its own developer, it must certify that a Master Development Agreement has been developed and is ready to submit to HUD in order to earn the one point.
Related Questions
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- Section VII(A)(5) says that an applicant must have procured a developer by the application due date. Does this mean an applicant must have executed a full development contract?
- May an Applicant or Lender-Applicant file more than one Application under the Section 1705 Program?
