                                 CODE OF VIRGINIA

POWERS RELATIVE TO ACQUISITION, DEVELOPMENT AND OWNERSHIP BY HDA OF MULTI-FAMILY
RESIDENTIAL HOUSING (§ 36-55.33:2)

A. HDA shall have all the powers necessary or convenient to purchase, acquire,
construct, rehabilitate, own, operate, improve, repair, maintain, encumber,
mortgage, lease, sell and transfer or otherwise dispose of multi-family
residential housing or any part or interest therein for occupancy by persons and
families of low and moderate income. For the purposes of this section, HDA may
form corporations, joint ventures, partnerships, trusts or other legal entities
or any combination thereof, on its own behalf or in conjunction with individuals
or other public or private entities, to serve as housing sponsors for
multi-family residential housing developments; may acquire, own, encumber,
pledge, sell, transfer or otherwise dispose of interests in such housing
sponsors; may provide financing and other funding to such housing sponsors; and
may exercise all necessary or convenient rights and powers and perform all
requisite duties and obligations relating thereto. HDA shall not exercise the
powers granted under this section with respect to any multi-family residential
housing development, unless HDA makes the following findings:

   1. That there exists a shortage of decent, safe and sanitary housing at
   rentals or prices which persons and families of low income or moderate income
   can afford within the general housing market area to be served by the proposed
   housing development.

   2. That private enterprise and investment have been unable, without
   assistance, to provide the needed decent, safe and sanitary housing at rentals
   or prices which persons or families of low and moderate income can afford.

   3. That private sponsors would not be willing, without assistance, to
   undertake the proposed housing development upon substantially similar terms
   and conditions.

   4. That HDA has not received notification from both the local housing
   authority having jurisdiction over the area in which the housing development
   would be located and the sponsor of such development that it is the preference
   of both parties that the local housing authority undertake the proposed
   housing development.

   5. That the proposed housing development will provide well-planned,
   well-designed housing for persons or families of low and moderate income.

   6. That the housing development will be of public use and will provide a
   public benefit.

   7. That the housing development will be undertaken within the authority
   conferred by this chapter upon HDA.

B. HDA shall also find, in connection with the new construction or substantial
rehabilitation by HDA of any proposed multi-family residential housing
development, that the governing body of the locality in which such housing
development is to be located has not, within sixty days after written
notification of such proposed construction or substantial rehabilitation has
been sent by HDA to such governing body and to any local housing authority
having jurisdiction in such locality, certified to HDA in writing its
disapproval of the proposed multi-family residential housing development. The
foregoing notwithstanding, no such finding need be made if HDA has received from
the governing body its certified resolution approving the proposed housing
development.

C. At least sixty days prior to purchasing, acquiring, constructing or
rehabilitating any multi-family residential housing development pursuant to this
section, HDA shall publish a notice in a newspaper of general circulation in the
locality in which such development is to be located. Such notice (i) shall state
that HDA intends to purchase, acquire, construct or rehabilitate a multi-family
residential housing development or developments in such locality and shall
solicit proposals from interested parties for such purchase, acquisition,
construction or rehabilitation or (ii) shall identify the multi-family
residential housing development or developments to be purchased, acquired,
constructed or rehabilitated and shall request comments from the general public
with respect to such proposed purchase, acquisition, construction or
rehabilitation.

D. In the event HDA or any legal entity formed by HDA is to construct or
rehabilitate a multi-family residential housing development pursuant to this
section, HDA or such legal entity shall contract with a private firm for the
performance of such construction and rehabilitation, unless HDA determines that
no responsible private firm would be willing and able to contract for such
construction or rehabilitation at a price necessary for the financial
feasibility of such development. HDA or any legal entity formed by HDA shall
contract with a private firm or public body for the performance of management
services for any multi-family residential housing development owned by HDA or
such legal entity pursuant to this section, unless HDA determines that no
responsible private firm and no public body would be willing and able to
contract for the performance of such management services at a price necessary
for the financial feasibility of such development. For the purpose of this
subsection, the term &#8220;private firm&#8221; shall include an individual,
joint venture, partnership, stock corporation, trust or other similar business
entity legally authorized to perform the construction, rehabilitation or
management, as may be applicable, of the proposed multi-family residential
housing development.

HISTORY: 1987, c. 254; 1991, c. 206; 1996, c. 298.