Fla. Admin. Code Ann. R. 67-58.030 - Terms and Conditions of Loans
(1) The
proceeds of all loans shall be used for New Construction or Rehabilitation of
affordable, decent, safe and sanitary housing units.
(2) The CWHIP loan shall be in a first,
second or other subordinated lien position. For purposes of this rule,
mortgages securing a letter of credit as credit enhancement for the bonds
financing the first mortgage shall be considered a contingent liability and
part of the first mortgage lien, provided that the Borrower's counsel furnishes
an opinion regarding the contingent nature of such mortgage satisfactory to the
Corporation and its counsel.
(3)
The loans to Applicants shall have interest rates as follows:
(a) One percent simple interest per annum,
non-amortizing, will accrue on loans to Projects where long term affordability
of 50 years is provided and when at least 80 percent of the units are set aside
for Workforce Housing and at least 50 percent of the units are set aside for
Essential Services Personnel. Such loans, including interest, shall be forgiven
upon successful completion of the Compliance Period.
(b) For CWHIP loans not eligible for
forgiveness, 3 percent fully amortized loans to Projects other than those
identified in paragraph (a), above.
(4) The amount of any superior mortgages
combined with the CWHIP mortgage shall be less than the appraised value of the
Project. Any debt service reserve requirement associated with a superior
mortgage shall be excluded from the amount of the superior mortgage for
purposes of this calculation.
(5)
For CWHIP loans not eligible for forgiveness, the term shall be for a period of
not more than 30 years. The loan term may exceed 30 years as required to be
coterminous with the first mortgage or if otherwise approved by the
Board.
(6) The Corporation shall
require adequate insurance to be maintained on the Project as determined by the
first mortgage lender or the Corporation's servicer, but which shall, in any
case, include fire, hazard and other insurance sufficient to meet the standards
established in Part V, Section 106 of the Fannie Mae DUS Guide, effective
August 10, 2006, which is adopted and incorporated by reference and available
on the Corporation's website.
(7)
The Corporation may intervene and renegotiate terms or take other actions
necessary to further CWHIP goals or avoid default of a CWHIP loan. Such
renegotiations shall be based upon consideration of the following:
(a) Performance of the Borrower during the
CWHIP loan term;
(b) Availability
of similar housing stock for Eligible Persons in the area;
(c) A plan for the repayment of the loan at
the new maturity date;
(d)
Assurance that the security interest of the Corporation will not be jeopardized
by the renegotiation;
(e) Fiscal
goals; and,
(f) The preservation or
advancement of Workforce Housing for Eligible Persons.
(8) After accepting a preliminary commitment,
the Borrower shall not refinance, increase the principal amount, or alter any
terms or conditions of any mortgage superior or inferior to the CWHIP mortgage
without prior approval of the Board. However, a Borrower may reduce the
interest rate on any superior or inferior mortgage loan without the Board's
permission, provided that no other terms of the loan are changed. The
Corporation shall be notified in writing of any such change prior to the
Borrower taking such action.
(a) The Board
shall approve requests for mortgage loan refinancing only if the Project cash
flow is improved; the Project's economic viability is maintained; the security
interest of the Corporation is not adversely affected; and the Credit
Underwriter provides a positive recommendation.
(b) The Board shall deny requests for
mortgage loan refinancing which require extension of the CWHIP loan term or
otherwise adversely affect the security interest of the Corporation, unless the
criteria outlined in the paragraph above are met, the Credit Underwriter
recommends that the approval of such a request is crucial to the economic
survival of the Project or unless the Board determines that public policy will
be better served by the extension as a result of the Borrower agreeing to
further extend the Compliance Period or provide additional amenities or
resident programs suitable for the resident population. Further, the Board
shall limit any approved extension to a minimum term which makes the Project
feasible and which does not exceed an industry standard
term.
(9) All CWHIP loans
shall be in conformance with applicable federal and state statutes, including
the Fair Housing Act as implemented by 24 CFR Part 100, and Titles II and III
of the Americans with Disabilities Act of 1990 as implemented by 28 CFR Part
35, which are adopted and incorporated by reference and are available on the
Corporation's website.
(10) All
Workforce Housing rental units shall be Rent Restricted Units.
(11) The documents creating, evidencing or
securing each CWHIP loan must provide that any violation of the terms and
conditions described in Rule Chapter 67-58, F.A.C., constitutes a default under
the CWHIP loan documents allowing the Corporation to accelerate its loan and to
seek foreclosure as well as any other remedies legally available to
it.
(12) A failure to pay any
principal or interest due under the terms of this section shall constitute a
default on the CWHIP loan.
(13) The
minimum Compliance Period for a CWHIP Project shall be the greater of 20 years
or the term of the CWHIP loan.
Notes
Rulemaking Authority 420.5095 FS. Law Implemented 420.5095 FS.
New 12-17-06, Amended 12-23-07.
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