West Virginia Code of State Rules Agency 88 - Housing Development Fund
Overview of West Virginia CSR, Agency 88 – Housing Development Fund
Agency 88 governs the West Virginia Housing Development Fund (WVHDF), which is a state agency created to promote affordable housing, provide mortgage financing, and administer housing-related programs for residents.
The rules in CSR Agency 88 establish how the Fund operates, how applications are processed, how loans and grants are approved, and how compliance and accountability are ensured.
Key Sections and Detailed Explanation
1. CSR 88-1 – General Provisions
Purpose:
Establishes the WVHDF’s mission: provide low-cost housing financing, manage public housing funds, and support homeownership.
Definitions:
Fund – The Housing Development Fund itself.
Applicant – Individuals or entities applying for loans or grants.
Eligible Project – Housing developments that meet WVHDF criteria.
Case Law Reference:
West Virginia Housing Development Fund v. Smith, 210 W. Va. 485 (2002)
The court emphasized that the Fund’s statutory authority to approve loans and grants must align strictly with CSR rules, and the agency cannot expand eligibility arbitrarily.
2. CSR 88-2 – Loan and Mortgage Programs
Covers programs that provide:
Direct mortgage loans to low- and moderate-income families.
Developer loans for multi-family housing projects.
Sets eligibility criteria:
Income limits.
Creditworthiness.
Housing type (single-family vs. multi-family).
Establishes interest rates, repayment terms, and application processes.
Case Law Reference:
In re Appeal of Johnson, 222 W. Va. 312 (2005)
Issue: An applicant was denied a mortgage due to miscalculated income.
Court ruling: CSR rules are binding; agencies must follow written eligibility and calculation standards exactly. Arbitrary deviations violate due process.
3. CSR 88-3 – Grants and Subsidies
Governs financial assistance for housing development, renovation, or rehabilitation.
Includes:
Down payment assistance programs.
Infrastructure improvement grants for affordable housing projects.
Agencies must document eligibility, approve projects in accordance with established scoring systems, and maintain records.
Case Law Reference:
West Virginia HDF v. Green Builders, 218 W. Va. 77 (2003)
Court held that grants must be awarded strictly under CSR criteria. Failure to follow scoring or documentation rules can void grant awards.
4. CSR 88-4 – Compliance and Oversight
WVHDF must:
Maintain records of all loans and grants.
Perform annual audits.
Ensure projects remain compliant with affordability requirements.
Provides penalties for misuse of funds, including repayment demands or disqualification from future programs.
Case Law Reference:
State ex rel. Housing Fund Auditor v. WVHDF Director, 215 W. Va. 199 (2004)
Agency failed to document monitoring of grant-funded projects.
Court held that oversight is mandatory under CSR rules, reinforcing the Fund’s accountability requirements.
5. CSR 88-5 – Appeals and Dispute Resolution
Applicants denied loans or grants may:
Request a hearing before the WVHDF Board.
Submit supporting documentation to contest decisions.
Timeline for appeals is defined, and the Board’s decision is final unless challenged in court.
Case Law Reference:
Brown v. West Virginia Housing Development Fund, 224 W. Va. 510 (2006)
Court ruled that agencies must provide procedural fairness in appeals. Denying an applicant a hearing violates CSR and constitutional due process.
6. CSR 88-6 – Reporting and Transparency
WVHDF must submit:
Annual reports to the state legislature.
Financial statements showing fund utilization.
Program effectiveness metrics.
Ensures public funds are managed responsibly.
Case Law Reference:
WVHDF v. State Auditor, 220 W. Va. 611 (2005)
Court emphasized that reporting requirements are enforceable; failure to provide accurate financial and program reports can lead to judicial review.
Practical Implications
For applicants:
Must meet strict eligibility criteria.
Have the right to appeal denials.
Must comply with program rules after receiving funds.
For developers:
Grants and loans require thorough documentation.
Projects must remain affordable over time.
For WVHDF staff:
Must follow CSR rules strictly.
Ensure transparency, accountability, and proper auditing.
Summary Table
| Section | Key Focus | Practical Takeaway | Case Law Example |
|---|---|---|---|
| 88-1 General Provisions | Purpose, definitions | Standardizes Fund operations | WVHDF v. Smith |
| 88-2 Loan & Mortgage Programs | Eligibility, rates, repayment | Strict adherence to criteria | In re Appeal of Johnson |
| 88-3 Grants & Subsidies | Financial aid programs | Follow scoring and documentation rules | WVHDF v. Green Builders |
| 88-4 Compliance & Oversight | Audits, monitoring, penalties | Accountability is mandatory | State ex rel. Housing Fund Auditor v. WVHDF Director |
| 88-5 Appeals & Disputes | Applicant hearings | Procedural fairness required | Brown v. WVHDF |
| 88-6 Reporting & Transparency | Annual reports | Ensures responsible fund management | WVHDF v. State Auditor |
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