                                 CODE OF VIRGINIA

POWER TO SUPERVISE HOUSING SPONSORS (§ 36-55.34:1)

Subject to such limitations and conditions as may be agreed to by HDA, HDA shall
have the power to supervise a housing sponsor and its real and personal
property, at all times during which an HDA mortgage loan to such housing sponsor
is outstanding and thereafter as necessary to preserve the federal tax exemption
of the notes or bonds issued by HDA to finance such HDA mortgage loan, in the
following respects:

1. Through its agents or employees, HDA may enter upon and inspect the housing
development or residential housing and any nonhousing buildings, including all
parts thereof, financed by such HDA mortgage loan, for the purpose of
investigating the physical and financial condition thereof, and its
construction, rehabilitation, operation, management and maintenance, and may
examine all books and records with respect to capitalization, income,
expenditures and other matters relating thereto;

2. HDA may supervise the operation and maintenance of the housing development or
residential housing and any nonhousing buildings financed by such HDA mortgage
loan and may order such alterations, changes or repairs as HDA may deem to be
necessary to protect the security of its investment, the public interest, or the
health, safety or welfare of the occupants of such housing development or
residential housing and any nonhousing buildings;

3. HDA may order such housing sponsor, or the management agent or other parties
related to the housing development or residential housing and any nonhousing
buildings financed by such HDA mortgage loan, to perform such actions as may be
necessary to comply with the provisions of all applicable laws or ordinances,
HDA&#8217;s rules and regulations or the terms of any agreement concerning such
housing development or residential housing and any nonhousing buildings, or to
refrain from doing any acts in violation thereof; and in this regard HDA shall
be a proper party to file a complaint and to prosecute thereon for any
violations of laws or ordinances as set forth herein;

4. HDA may prescribe uniform systems of accounts and records for housing
sponsors and may require such housing sponsors to make reports, make
certifications as to expenditures and give answers to specific questions on such
forms and at such times as HDA may deem to be necessary for the purposes of this
chapter;

5. HDA may establish and alter from time to time a schedule of rents and charges
for the housing development or residential housing and any nonhousing buildings
financed by such HDA mortgage loan, and HDA may establish standards for, and may
monitor and regulate, tenant or occupant selection by such housing sponsor;

6. HDA may require such housing sponsor to pay to HDA such fees and charges as
it may prescribe in connection with the examination, inspection, supervision,
auditing or other regulation of the housing development or residential housing
and any nonhousing buildings financed by such HDA mortgage loan or of such
housing sponsor;

7. In its rules and regulations HDA shall specify the categories of cost which
shall be allowable in the construction, rehabilitation, preservation or
improvement of a housing development or residential housing and any nonhousing
buildings, and HDA shall require such housing sponsor to certify the actual
housing development costs upon completion of the housing development or
residential housing and any nonhousing buildings, subject to audit and
determination by HDA, or shall require such housing sponsor to provide such
other assurances of such housing development costs as HDA shall deem necessary
to enable HDA to determine with reasonable accuracy the actual amount of such
housing development costs; and

8. The provisions of any agreements which provide for the regulation and
supervision by HDA of any housing development or residential housing and any
nonhousing buildings shall, when duly recorded among the land records of the
jurisdiction or jurisdictions in which the housing development or residential
housing and any nonhousing buildings are located, run with the land and be
binding on the successors and assigns of the owner thereof until released of
record by HDA.

HISTORY: 1975, c. 536; 1987, c. 164; 1991, c. 447; 2004, c. 187.