Development Information	
Development Name	     	
Development Number	     	
RRDL Amount	     	

NOTE: Starting rehabilitation work prior to loan closing with Minnesota Housing is not allowed.
Instructions: Listed below is an overview of the phases after a Rental Rehabilitation Deferred Loan (RRDL) project has been selected for further processing. The table lists documents and applicable requirements. Submit all documents by uploading them to the project folder in BOX.com. For more information and access to forms and resources, visit the RRDL webpage.
1.	Initial Due Diligence and Architectural Review
2.	Bidding and Contract Awards
3.	End Loan Commitment / Rehabilitation  
4.	Rehabilitation Complete/End Loan Closing

1. Initial Due Diligence and Architectural Review	
Document	Requirements	
A	Organizational Documents	Refer to Ownership Organizational Document Requirements. These requirements indicate which documents need submitting and which document needs to be updated with the Agency provisions. Request the Agency provisions from your Minnesota Housing underwriter.

Note the Certificate of Good Standing listed in the Requirements document will be requested 30-days before closing by the Closing Team.	
			
B 	Owner’s/Borrower’s Certificates of Insurance	Comprehensive Property and General Liability Certificates of Insurance; each must reference property address.

Minnesota Housing Finance Agency must be listed as certificate holder on both certificates, mortgagee/loss payee on property insurance, and additional insured on liability insurance.

Property insurance certificate should state that the rehabilitation work and materials are covered on the existing policy, or an installation floater should be provided to ensure coverage for the work and materials.

Refer to Minnesota Housing’s Multifamily Insurance Requirements. Please forward these requirements directly to your insurance provider.

Certificate Holder requires the full name and address of the agency: 
Minnesota Housing Finance Agency
400 Wabasha Street North, Suite 400
Saint Paul, MN 55102

	

Document	Requirements	
C	SWIFT Vendor ID Number	A SWIFT Vendor ID number will be needed for processing disbursements:
•	If you have a SWIFT Vendor ID number, please call the Helpline at 651.201.8106 to verify that your information (address, bank routing number, and account number) is correct.
•	Contact your RRDL loan processoer and provide your verified SWIFT Vendor ID number.
•	If you do not have a SWIFT Vendor ID number, please complete and submit a W-9 form and an EFT form.
If you are unsure about your SWIFT Vendor ID number, please call the Helpline at 651.201.8106.

D	Professional Services Agreement	Minnesota Housing may require that the owner commission either an architect/professional engineer or a rehabilitation (rehab) specialist (depending upon characteristics of the project) to assist with developing a work scope and performing construction administrative services.

A professional services agreement between the owner and the professional services provider must describe the scope of services to be performed and the cost and duration of those services. If professional services are required, the most current American Institute of Architects (AIA) document “B101 Standard form of Agreement Between Owner – Architect” must be used. Minnesota Housing, at its sole discretion, may approve another format, which must be similar to the AIA document. 

E	Architect Certificate of Insurance	Minnesota Housing requires the architect/professional engineer to provide their certificate of professional liability insurance.

Refer to Minnesota Housing’s Multifamily Insurance Requirements for specifics regarding this certificate of insurance.

F	Environmental Reports	•	Lead Inspection or Risk Assessment (for properties built prior to 1978)
•	Asbestos Inspection and Survey
•	Radon Inspection/Assessment

G	Abbreviated Design Standards	The Abbreviated Design Standards for Limited Scope Rehabilitation Projects Compliance and Agreement Certification form must be completed by the architect/professional engineer or rehab specialist.

H	Sustainability Requirements	The Sustainability Requirements for Limited Scope Rehabilitation Projects Compliance Agreement and Certification must be completed by the architect/professional engineer or rehab specialist.

Document	Requirements	
I	Draft Bid Packet/Construction Documents	Submit the draft bid/construction documents once they have reached 75%-90% completion. It should indicate that only bids from licensed contractors will be considered. A Minnesota Housing staff architect will provide comments and outline requirements during the review process, which must be incorporated in the final (100% complete) construction documents.

J	Relocation Plan	All developments selected for rehabilitation activities must submit a relocation plan that addresses both temporary relocation, including in-place displacement and permanent displacement. 
The relocation plan should detail the number of tenants who will be relocated, the number of days each tenant will be displaced, the daily estimate for lodging and meals, and details of other costs as applicable; e.g., temporary storage costs and transportation costs.
Refer to the Temporary Relocation Principles.	
			
K	Final Bid Packet/Construction Documents	Approval is given by a Minnesota Housing staff architect when all plan review comments and requirements noted during the 90% review are incorporated in the 100% construction documents.

A Minnesota Housing staff architect must also review and approve the scope of work for abatement of lead-based paint or asbestos that will be completed as part of the project.

L	Draft Documents for Other Sources of Funding, if applicable	From other lenders providing funding and closing simultaneously with RRDL. Other sources of funding could include DEED Small Cities Development Program, insurance proceeds, other local grants or loans, weatherization program funds, energy rebates, Federal Home Loan Bank, GMHF, etc. Draft documents will be reviewed for conflicting requirements that may need to be resolved prior to closing such as loan terms, rent and income requirements, use of loan proceeds, etc.

M	Prevailing Wage Certification, if applicable	The state has determined that developments that receive funds from Minnesota Housing that are used for a building that is publicly owned or leased must comply with state prevailing wage requirements under Minnesota Statute 177.41-.43. For all questions related to prevailing wage requirements and documentation, direct questions to karen.bugar@state.mn.us at the Minnesota Department of Labor and Industry.

N	Government Data Practices Act Disclosure Statement with Attachment 3	This form is used to inform tenants that their household composition, income and other information will be reported to Minnesota Housing.  It must be signed and dated by all household members age 18 and older.

2. Bidding and Contract Awards	
Document	Requirements	
A	Bid Activity Report 	General Contractor: A general contractor must be selected either via direct selection or through a competitive bid. Borrowers should follow their organization’s and Rural Development’s bidding and procurement guidelines. If the scope of work is limited to just a few items (generally three or fewer), Minnesota Housing, at its sole discretion, may allow the owner to act as the general contractor, whereby the work is bid/awarded directly from the owner to qualified subcontractors. 

Subcontractors: Regardless of the selection method, an attempt to competitively bid all work to at least three qualified subcontractors must be made, and at least two bids must be obtained for all divisions of work.

B	Accepted bid(s)	Contractor procurement must meet all applicable USDA and Minnesota Housing standards. For more information, review Minnesota Housing’s Contractor’s Guide.

C	Construction Contract	If work is awarded to a general contractor, an agreement between the owner and the general contractor must be executed. The AIA document “A101-2017 Stipulated Sum Agreement” must be used for the agreement. In addition, the AIA Document “A201-2017, General Conditions of the Contract for Construction” must accompany the owner-contractor agreement.

If Minnesota Housing approves the owner to act as the general contractor, the format of the agreement between the owner and the subcontractor(s) is not required to be an AIA form of agreement as long as the form of agreement used specifies accurately the scope, cost, and duration of work. Also note that Minnesota Housing must approve, in advance, any form of agreement other than an AIA form.

D	RD-3560 Documents	Once funding amounts are stable, submit the following three documents to your RD Loan Servicer. They will provide a Loan Commitment Letter addressing the following:

RD3560-1	Junior Lien Approval
RD3560-12	Request/Approval to release a portion of the project reserves
	(if this applies)
RD3560-15	Request for Reamortization     (if this applies)

E	Updated RRDL Workbook	An updated project Workbook including a Development Costs must be completed and resubmitted after a bid is selected and all sources of funding and final project costs have been determined.

F	Equal Employment Opportunity Policy Statement	Minnesota Housing is committed to equal housing and equal employment opportunity. Both the owner and the general contractor must separately submit an Equal Employment Opportunity Policy Statement form.

Refer to the Development Costs tab in your workbook.
Enter the “Total Construction Costs” (line 14) in the “Dollar Amount of Rehab” field
Enter the “Total Development Cost” (line 53) in the “Dollar Amount of Project” field

Document	Requirements	
G	Owners and Encumbrance Report (O & E Report)	Report from a title company identifying the last recorded owner, legal descriptions, and open recorded liens and encumbrances of record. The report should be dated within 120 days of loan closing.

3. End Loan Commitment / Rehabilitation	
Document	Requirements	
A	Change Order(s)	Change orders, architectural supplemental instructions (ASIs,) or any other change directive must be submitted to the Minnesota Housing staff architect for approval prior to the change order being accepted or signed by the applicable parties.

4. Rehabilitation Complete / End Loan Closing	
Document	Requirements	
A	Certificate of Substantial Completion	AIA Document G704 or Certificate(s) of Substantial Completion by the architect/professional engineer or rehab specialist. Submitted by the architect/professional engineer or qualified rehabilitation specialist or other approved consultant. It must be on Form AIA G704 or equivalent. 

B	Final Pay Application	Final AIA G702-703 or Final Pay Application and Schedule of Values.

C	Completed Punch List	Submitted by the architect/professional engineer or qualified rehabilitation specialist.

D	Environmental Clearance Documentation, if applicable	•	Lead Clearance Reports, if applicable
•	Asbestos Waste Manifest Form, if abatement completed
•	Post-rehabilitation Radon Testing, if applicable

E	Certificate of Project Completion	Submitted by the architect/professional engineer or qualified rehabilitation specialist.

F	Closeout RRDL Workbook	Work with your assigned underwriter to update the RRDL Workbook to reflect final project costs, including all change orders and use of construction contingency.

Document	Requirements	
G	Certification of Organizational Documents	Must be certified within 90 days of closing.  The exception is Limited Partnerships; the Certificate of Limited Partnership was submitted earlier and does not need a date stamp within 90 days of closing.
If you are:	See template:
•	HRA	Certification of Bylaws
•	Nonprofit or   	Certification of Organizational Documents & Bylaws
For Profit Corporation
•	LLC	Certification of Organizational Documents

H	Certificate of Good Standing	Certificate of Good Standing issued by the Minnesota Secretary of State dated within 30 days of the transaction/closing date. Needed for borrower, general partners, and, if applicable, LLC members.

I	Borrowing Resolution	Resolution authorizing (1) the transaction, (2) execution of loan and other transaction related documents, and (3) designating the person(s) authorized to execute the documents. The resolution must be dated within 90 days of loan closing.

At closing: The original signed resolution (or a certified copy) must be delivered prior to or at closing.

J	RD-3560 Documents
(RD Loan Commitment Letter)	IF the RD Loan will be reamortized, work with RD to set a closing date based on their reamortization process. The RD Loan Commitment Letter should have been submitted at the time the MH End Loan Commitment was approved. 

	
K	Documents for Other Sources of Funding, if applicable	Final copies of loan documents or grant agreements from other sources. Underwriting will seek advice as to whether the document should be fully executed prior to moving to closing.

	
L	Payoff Letter(s) from Interim Construction Lender(s)	Payoff letter(s) from lender(s) who has/have provided interim loan(s) for the rehabilitation and related costs of the development for which Minnesota Housing funds will be used to pay off said interim loan(s) at the closing.  The payoff letter must include the principal and per diem of interest that is due as of a date of closing of the Minnesota Housing loan.

M	Photos of Completed Work	Digital photos showing a typical sampling of work completed.