Title 9 Part 1725

The basic references regarding the financing of a housing company are: (a) building loan agreement; (b) mortgage; and (c) mortgage note. These documents are executed by and between the housing company and the lending agency or banking institution.

This Chapter provides program, policy and technical data and has as its prime objective the adoption and maintenance of proper management standards for housing developments.

Operating personnel should utilize the uniform systems of accounts as prescribed by the division.

Members of the board of directors cannot exceed the authority granted in the certificate of incorporation, nor can they perform acts other than those expressed or implied in such certificate.

The housing company must establish bylaws subject to review and approval by the division. Any amendment or alteration to the bylaws is subject to approval by the division. Where the division does not disapprove such bylaws as submitted to it, it shall be considered approved 90 days after full submission of the bylaws and all additional and supporting documentation that might be requested by the division as part of that review.

Board members also have a responsibility to the local community. They help provide one of the means by which the community meets the challenge of adequate housing for its citizens. Through their intelligent administration, they also serve to alert the community to practical solutions of housing problems. These solutions have combined legislative encouragement with the incentive and initiative of private enterprise. Housing companies may obtain division's approval to rent dwelling units to organizations for group homes for homeless children.

Members of the board of directors have access to a considerable amount of personal information concerning tenants or cooperators. Such information should be held in the strictest confidence and should not be disclosed to any person except insofar as it has a direct bearing on: (a) the business of the company, or (b) the division's efforts to deter fraud in developments under its supervision, and except to persons duly authorized to receive such information.

The board of directors has the responsibility for establishing policy covering administration of property, interests, business and transactions of the corporation and may delegate to officers such authority as it deems necessary. Sound organization dictates that members of the board should not interfere with day-to-day management and operation of project or with its employees or intrude upon management functions. Failure to adhere to this policy reduces the efficiency of the operating staff by creating conflicts in control and in the chain of command.

Notwithstanding the provisions of any law, general or special, a mutual company with the approval of the division, may require a standard form and procedure for the casting of proxies or absentee ballots in any matter requiring a shareholder vote.

A copy of the minutes of each meeting shall be forwarded to the division within 10 days after such meeting.

All files, including applications and electronic automated waiting list records, shall be maintained in a neat, orderly manner and shall be made available for inspection by the division upon request. Files must not be removed by an officer, agent, employee or other person to their office, residence or any other location.

Applicant files, whether active or inactive, should be maintained as close as possible to the tenant files. The active files will consist of those applications determined to be eligible or still being investigated and should be maintained in chronological order with earliest date on top. Active files should be reviewed periodically to determine which applications should be shifted to the inactive files. A form letter inquiring into the applicant's continuing interest may be used for this purpose. Inactive applicant files containing those applications which have been determined to be ineligible or those that have since been withdrawn, along with supporting documentation, should be filed in alphabetical order by applicant surname and retained for five years in accordance with section 1727-1.3(p) of this Title.

No company, association, director, officer, employee, agent or other person shall solicit or receive, directly or indirectly, any commission, bonus, gratuity, fee, contribution, or any other payment not expressly authorized by the division: