Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 310 - MULTIFAMILY RENTAL HOUSING MORTGAGE LOAN PROGRAM › Subpart H - RATE OF RETURN ON EQUITY FOR LIMITED-PROFIT ENTITIES › Section 310.804 - Calculation of Alternate Basic Rate of Return

Current through Register Vol. 48, No. 28, July 12, 2024
a) For Developments that are eligible for an
				alternate basic rate of return in excess of 6%, pursuant to Section
				310.802(a)(1)
				or
				310.803(a)(1),
				the Authority may establish an alternate basic rate of return in an amount not
				to exceed, except as provided in Section
				310.805,
				200% of the yield paid on 30-year Government National Mortgage Association
				(GNMA) mortgage certificates as of the date of the issuance of the conditional
				commitment letter or, if a conditional commitment letter is not issued, a loan
				agreement for that Development. In order for an alternate basic rate of return
				higher than 6% to be approved, it shall be established to the satisfaction of
				the Director or, in his or her absence, the Deputy Director that, but for
				increase in the rate of return, private enterprise would not be attracted to
				acquire, construct, rehabilitate, operate and maintain the Development. The
				Authority will establish an alternate basic rate of return if the Director or,
				in his or her absence, the Deputy Director determines and certifies that, but
				for a higher rate of return, private enterprise would not acquire, construct,
				rehabilitate, operate and maintain housing for Very Low, Low and Moderate
				Income persons. In making the determination and certification whether an
				alternate basic rate of return will be approved and in determining and
				certifying the amount of the rate increase, the Director or, in his or her
				absence, the Deputy Director shall consider, but not be limited to, the
				competing market interest rates, alternative lending sources, financial
				projections based upon anticipated rents, debt service, taxes, utilities and
				other expenses and the comparative severity of the housing needs. The Chief
				Fiscal Officer of the Authority shall certify to the GNMA rate as of the date
				of the conditional commitment letter or the loan agreement, if a conditional
				commitment letter is not issued, for the Development, and the rate shall be
				fixed at that level.
b) For
				Developments that are eligible for an alternate basic rate of return in excess
				of 6% pursuant to Section
				310.802(a)(2)
				or
				310.803(a)(2),
				the Authority may establish an annual alternate basic rate of return that shall
				not exceed, except as provided for in Section 310.805, 200% of the yield paid
				on 30-year GNMA mortgage certificates as of December 1 of the year for which
				the alternate basic rate of return is to be applied. The Chief Fiscal Officer
				of the Authority shall certify to the GNMA rate as of December 1 of the year
				for which the alternate basic rate of return is to be applied and the rate
				shall be fixed at that level.
c)
				Any increase in the basic rate of return approved pursuant to this Section
				shall conform with any relevant federal statutes, rules or
				regulations.