(1) Any sale, conveyance, assignment, or
other transfer of interest or the grant of a security interest in all or any
part of the title to the Development other than a superior mortgage shall be
subject to the Corporation's prior written approval. The Board shall consider
the facts and circumstances of each Applicant's request and any credit
underwriting report, if available, prior to determining whether to grant such
request.
(2) The SAIL loan shall be
assumable upon sale or transfer of the Development if the following conditions
are met:
(a) The proposed transferee meets
all specific Applicant identity criteria which were required as conditions of
the original loan;
(b) The proposed
transferee agrees to maintain all set-asides and other requirements of the SAIL
loan for the period originally specified or longer; and,
(c) The proposed transferee and release of
transferor receives a favorable recommendation from the Credit Underwriter and
approval by the Board of Directors of the Corporation.
All assumption requests must be submitted in writing to the
Special Assets Director and contain the specific details of the transfer and
assumption. In addition to any related professional fees, the Corporation shall
charge a non-refundable assumption fee of one-tenth of one percent of the SAIL
loan principal amount. The applicable fee will be determined by the rule in
effect at the time of the assumption request.
(3) If the SAIL loan is not assumed since the
buyer does not meet the criteria for assumption of the SAIL loan, the SAIL loan
(principal and any outstanding interest) shall be repaid from the proceeds of
the sale in the following order of priority:
(a) First mortgage debt service, first
mortgage fees;
(b) SAIL compliance
and loan servicing fees;
(c) An
amount equal to the present value of the compliance monitoring fee for the
periods for which the Development will have a set-aside for Very Low-Income
persons or households beyond the repayment date. Such amount shall be reduced
by the amount of any compliance monitoring fees collected by the Corporation
for the Development for that period, provided:
1. The compliance monitoring fee covers some
or all of the period following the anticipated SAIL repayment date; and,
2. The Development has
substantially equivalent set-asides for Very Low-Income persons or households
mandated through another program of the Corporation for which the compliance
monitoring fee was collected.
(d) Unpaid principal balance of the SAIL
loan;
(e) Any interest due on the
SAIL loan;
(f) Expenses of the
sale;
(g) If there will be
insufficient funds available from the proposed sale of the Development to
satisfy paragraphs (3)(a)-(f), above, the SAIL loan shall not be satisfied
until the Corporation has received:
1. An
appraisal prepared by an appraiser selected by the Corporation or the Credit
Underwriter indicating that the purchase price for the Development is
reasonable and consistent with existing market conditions,
2. A certification from the Applicant that
the purchase price reported is the actual price paid for the Development, as
supported by a copy of the final executed purchase and sale agreement, and that
no other consideration passed between the parties, as supported by a draft and
final closing statement, and that the Development Cash Flow reported to the
Corporation during the term of the SAIL loan was true and accurate,
3. A certification from the Applicant that
there are no Development funds available to repay the SAIL loan, including any
interest due, and the Applicant knows of no source from which funds could or
would be forthcoming to pay the SAIL loan; and,
4. A certification from the Applicant
detailing the information needed to determine the final billing for SAIL loan
interest. Such certification shall require submission of financial statements
and other documents that may be required by the Corporation and its
servicer.
(4)
The Corporation may renegotiate and extend the loan in order to extend or
retain the availability of housing for the target population. Such
renegotiations shall be based upon:
(a)
Performance of the Applicant during the SAIL loan term;
(b) Availability of similar housing stock for
the target population in the area;
(c) Documentation and certification by the
Applicant that funds are not available to repay the Note upon
maturity;
(d) A plan for the
repayment of the loan at the new maturity date;
(e) Assurance that the security interest of
the Corporation will not be jeopardized by the new term(s); and,
(f) Industry standard terms which may include
amortizing loans requiring regularly scheduled payments of principal and
interest.
All loan renegotiation requests must be submitted in
writing to the Special Assets Director and contain the specific details of the
renegotiation. In addition to any related professional fees, the Corporation
shall charge a non-refundable renegotiation fee of one-half of one percent of
the SAIL loan principal amount. The applicable fee will be determined by the
rule in effect at the time of the renegotiation request. All loan extension
requests must be submitted in writing to the Special Assets Director and
contain the specific details of the extension. In addition to any related
professional fees, the Corporation shall charge a non-refundable extension fee
of one-tenth of one percent of the SAIL loan principal amount. The applicable
fee will be determined by the rule in effect at the time of the extension
request.
(5) The
Corporation will recommend that the Board approve requests for mortgage loan
refinancing only if Development Cash Flow is improved, the Development's
economic viability is maintained, the security interest of the Corporation is
not adversely affected, and the Credit Underwriter provides a positive
recommendation.
(6) The Corporation
will recommend that the Board deny any requests for mortgage loan refinancing
which require extension of the SAIL loan term or otherwise adversely affect the
security interest of the Corporation, unless the criteria outlined in
subsection
67-48.0105(5),
F.A.C., are met, the Credit Underwriter recommends that the approval of such a
request is crucial to the economic survival of the Development, or unless the
Board determines that public policy will be better served by the extension as a
result of the Applicant agreeing to further extend the Compliance Period or
provide additional amenities or resident programs suitable for the resident
population. Further, the Corporation will recommend that the Board limit any
approved extension to a minimum term which makes the Development feasible and
which does not exceed an industry standard term.
The Corporation will recommend that the Board deny any
requests to increase the amount of any superior mortgage, unless the criteria
outlined in subsection
67-48.010(15),
F.A.C., are met, the original combined loan to value ratio for the superior
mortgage and the SAIL mortgage is maintained or improved, and a proportionate
amount of the increase in the superior mortgage is used to reduce the
outstanding SAIL loan balance.
All requests which only require subordination of the
regulatory agreements must be submitted in writing to the Special Assets
Director and contain the specific details of the subordination. In addition to
any related professional fees, the Corporation shall charge a non-refundable
subordination fee of $1, 000 for each regulatory agreement to be subordinated.
The applicable fee will be determined by the rule in effect at the time of the
subordination request.
All requests which only require extension of the
affordability period under the regulatory agreements must be submitted in
writing to the Special Assets Director and contain the specific details of the
extension. In addition to any related professional fees, the Corporation shall
charge a non-refundable extension fee of $1, 000 for each extension of the
regulatory agreement. The applicable fee will be determined by the rule in
effect at the time of the extension request.
Notes
Fla. Admin. Code Ann. R. 67-48.0105
Rulemaking Authority
420.507,
420.508 FS. Law Implemented
420.5087
FS.
New 12-23-96, Amended
1-6-98, Formerly 9I-48.0105, Amended 11-9-98, Repromulgated 2-24-00, Amended
2-22-01, 3-17-02, Repromulgated 4-6-03, Amended 3-21-04, Repromulgated 2-7-05,
Amended 1-29-06, 4-1-07, Repromulgated 3-30-08, Amended 8-6-09, Repromulgated
11-22-11, Amended 10-9-13, Amended by
Florida
Register Volume 40, Number 185, September 23, 2014 effective
10/8/2014, Amended by
Florida
Register Volume 42, Number 169, August 30, 2016 effective
9/15/2016,
Repromulgated by
Florida
Register Volume 43, Number 090, May 9, 2017 effective
5/24/2017, Amended
by
Florida
Register Volume 44, Number 124, June 26, 2018 effective
7/8/2018, Amended by
Florida
Register Volume 45, Number 123, June 25, 2019 effective
7/11/2019, Amended
by
Florida
Register Volume 46, Number 112, June 9, 2020 effective
6/23/2020,
Repromulgated by
Florida
Register Volume 47, Number 086, May 4, 2021 effective
5/18/2021, Amended
by
Florida
Register Volume 48, Number 120, June 21, 2022 effective
7/6/2022,
Repromulgated by
Florida
Register Volume 49, Number 114, June 13, 2023 effective
6/28/2023.
New 12-23-96, Amended 1-6-98, Formerly 9I-48.0105,
Amended 11-9-98, Repromulgated 2-24-00, Amended 2-22-01, 3-17-02, Repromulgated
4-6-03, Amended 3-21-04, Repromulgated 2-7-05, Amended 1-29-06, 4-1-07,
Repromulgated 3-30-08, Amended 8-6-09, Repromulgated 11-22-11, Amended 10-9-13,
10-8-14, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, Repromulgated 7-11-19,
6-23-20, 5-18-21, Amended 7-6-22, Repromulgated
6-28-23.