Florida Administrative Code › 67 - FLORIDA HOUSING FINANCE CORPORATION › 67 - Departmental › Chapter 67-21 - NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC) › Part II - MULTIFAMILY MORTGAGE REVENUE BOND PROGRAM › Section 67-21.008 - Terms and Conditions of MMRB Loans

Current through Reg. 50, No. 138; July 16, 2024
(1)
				  Each Mortgage Loan for a Development made by the Corporation shall:
(a) Be evidenced by a properly executed Note
				  or other evidence of indebtedness and be secured by a recorded
				  Mortgage;
(b) Provide for a fully
				  amortized payment of the Mortgage Loan in full beginning no later than the 37th
				  month after closing and ending no later than the expiration of the useful life
				  of the property, and in any event, no later than 45 years from the date of the
				  Mortgage Loan;
(c) Not exceed 95
				  percent of the Total Development Cost;
(d) If the Mortgage Loan is to provide
				  financing for the construction of a Development, have each advance thereof
				  secured, insured, or guaranteed in such manner as the Corporation determines
				  shall protect its interest and those of the Bond holders;
(e) Have the initial review, approval, and
				  origination process accomplished by a Qualified Lending Institution;
(f) Be serviced by such Qualified Lending
				  Institution or other private entity engaged in the business of servicing
				  mortgage loans in Florida as the Corporation shall approve; and,
(g) Require the submission to the Corporation
				  of an annual audited financial statement for the Development, and for the
				  Applicant if revenue from multiple projects is being pledged. An annual
				  financial statement compiled or reviewed by a licensed Certified Public
				  Accountant may be submitted in lieu of an audited financial statement for the
				  Development prior to the issuance of a certificate of occupancy for any unit in
				  the Development, provided that the subsequent annual audited financial
				  statement shall include all operations since inception.
(h) Unless and until a guarantor's
				  obligations for a MMRB Loan are terminated as approved in writing by the
				  Corporation or its servicer, each guarantor shall furnish to the Corporation or
				  its servicer financial statements as provided in subparagraphs (i)1. through
				  5., below, as the Corporation or its servicer may reasonably request.
(i) The audited financial statements are to
				  be prepared in accordance with accounting principles generally accepted in the
				  United States of America and audited in accordance with auditing standards
				  generally accepted in the United States of America for the 12 month fiscal year
				  period just ended and shall include:
1.
				  Comparative Balance Sheet with prior year and current year balances,
2. Statement of revenue and expenses,
3. Statement of changes in fund
				  balances or equity,
4. Statement of
				  cash flows; and,
5. Notes to the
				  financial statements.
The financial statements referenced above should also be
					 accompanied by a certification of the guarantor(s) as to the accuracy of such
					 financial statements, or
a. If an
				  audited financial statement has not been prepared, a federal income tax return
				  filed for the most recently completed year, or
b. For individual guarantors, if an audited
				  financial statement is not available a financial statement certified as true
				  and complete without qualification by such guarantor and a copy of the most
				  recently filed individual federal income tax
				  return.
(j) If
				  Credit Enhancement is used, a Credit Enhancement instrument of less than ten
				  years must be approved by the Board of Directors.