Florida Administrative Code › 67 - FLORIDA HOUSING FINANCE CORPORATION › 67 - Departmental › Chapter 67-48 - COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS SAIL/HOME/HC › Part II - STATE APARTMENT INCENTIVE LOAN PROGRAM › Section 67-48.010 - Terms and Conditions of SAIL Loans

Current through Reg. 50, No. 138; July 16, 2024
(1)
				  The proceeds of all SAIL loans shall be used for new construction or
				  rehabilitation which creates or preserves affordable, safe and sanitary
				  multifamily rental housing units.
(2) The SAIL loan may 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 Applicant's counsel furnishes an opinion
				  regarding the contingent nature of such mortgage satisfactory to the
				  Corporation and its counsel.
(3)
				  The loans shall be non-amortizing and shall have interest rates as provided in
				  Section 420.507(22),
				  F.S., and specified in an applicable competitive solicitation.
(4) Except as provided in Section
				  420.5087(5),
				  F.S., the amount of any superior mortgages combined with the SAIL mortgage
				  shall be less than the appraised value of the Development. 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) Payment on the loans shall be based upon
				  the Development Cash Flow, as determined pursuant to the financial reporting
				  requirements as provided in a competitive solicitation, or shall be due
				  annually as determined by the Corporation's Board of Directors. Such
				  determination by the Board shall be based upon a written recommendation by the
				  Credit Underwriter which has considered the economic and financial viability of
				  the Development as well as the protection of the Corporation's repayment of
				  principal and interest. Any distribution or payment to the Principal(s) of the
				  Applicant or Developer or any Affiliate of the Principal of the Applicant or
				  Developer or any Affiliate of the Applicant or Developer, whether paid directly
				  or indirectly, which was not expressly disclosed in determining the annual debt
				  service coverage in the Board approved final credit underwriting report, with
				  the exception of payment of the Developer Fee allowable to maximum of 20
				  percent per year, will be added back to the amount of cash available for the
				  SAIL loan interest payment, pursuant to the financial reporting process, for
				  the purpose of determining interest due. Interest may be deferred as set forth
				  in subsection 67-48.010(8),
				  F.A.C., without constituting a default on the loan.
(6) The loans described in subsection
				  67-48.010(3),
				  F.A.C., above, shall be repaid from Development Cash Flow, and if the SAIL loan
				  is not a first mortgage loan, each year, subject to the provisions of
				  subsection 67-48.010(8),
				  F.A.C., below, Development Cash Flow shall be applied to pay the following
				  items in order of priority:
(a) All superior
				  mortgage fees and debt service as calculated and disclosed in the Board
				  approved final credit underwriting report;
(b) Development Expenses for the SAIL
				  Development, plus up to 20 percent of total Developer Fees per year;
(c) Interest payment on SAIL loan balance
				  equal to the percentage specified in the applicable competitive solicitation
				  over the life of the SAIL loan;
(d)
				  Interest payments on the SAIL loan deferred from previous years; and
(e) Mandatory payment on subordinate
				  mortgages.
After the full SAIL loan interest has been paid, the
					 Applicant shall retain all remaining monies, unless the Applicant chooses to
					 prepay a portion of the loan balance.