Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 310 - MULTIFAMILY RENTAL HOUSING MORTGAGE LOAN PROGRAM › Subpart A - GENERAL RULES › Section 310.103 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
As used in this Part, the following words or terms
				  mean:
"Act": The Illinois Housing Development Act [20 ILCS 3805
				  ].
"Application": An application for a Mortgage Loan for a
				  proposed Development.
"Authority": The Illinois Housing Development
				  Authority.
"Bonds": Bonds issued by the Authority from time to time to
				  finance the Program.
"Chairman": The Chairman of the Authority.
"Clearinghouse": A State, regional, or metropolitan agency
				  designated by the Governor of the State or the Authority or established by
				  State statute to provide notice to appropriate State and local agencies of
				  proposed Developments and to review such Developments.
"Code": The Internal Revenue Code of 1986 (26 USC), as
				  amended from time to time, and the regulations promulgated thereunder.
"Commercial Tenant": Any entity leasing commercial facilities
				  in a Development.
"Conduit Bonds": Bonds issued by the Authority for which
				  another party assumes the risk of default, including but not limited to a
				  default arising out of a default on the Mortgage Loan financed with the
				  proceeds of the Bonds.
"Conduit Loan": A Mortgage Loan or other similar financing
				  arrangement made with the proceeds of Conduit Bonds.
"Cost Certification Cutoff Date": The last day of the month
				  in which the Construction Completion Date falls.
"Cost of Development": The costs of the acquisition and the
				  construction or rehabilitation of a Development, including the design
				  architect's fees; engineering fees; the supervisory architect's fees; legal and
				  accounting fees; marketing and consulting fees; land costs; interest and
				  financing charges to be paid during construction; the Authority's origination
				  fee; application fees paid to other lenders; funding of reserves for real
				  estate and other taxes; funding of reserves for replacement and other reserves;
				  title and recording fees; financial contingency and construction contingency; a
				  developer's fee; costs associated with the issuance of Bonds; relocation costs;
				  the cost of landscaping and off-site improvements; carrying charges; and any
				  other costs approved by the Authority, whether or not such costs have been paid
				  in cash or provided in a form other than cash. For an existing Development that
				  is being refinanced or being acquired, the cost of development shall be the
				  appraised value of the Development, as determined on or after the date of the
				  Application for refinancing, and the costs of rehabilitation.
"Cumulative Distribution": A Distribution of Surplus Cash
				  and/or Residual Receipts representing all or part of a Distribution unpaid but
				  cumulated by an Owner in a prior fiscal year.
"Current Distribution": A Distribution of Surplus Cash and/or
				  Residual Receipts representing all or part of a Distribution earned in a
				  current fiscal year.
"Deputy Director": The Deputy Executive Director of the
				  Authority.
"Development": The Real Estate, together with all buildings
				  and other improvements constructed on it, and the equipment, and personal
				  property appurtenant to the Real Estate.
"Development Funds": All cash, rent subsidies, gross
				  Development income, bank accounts, certificates of deposit, trust funds,
				  reserves, escrows, accounts receivable, and other such assets of a
				  Development.
"Director": The Executive Director of the Authority.
"Distribution": Any withdrawal or taking of cash from Surplus
				  Cash and/or Residual Receipts, including segregation of cash for subsequent
				  withdrawal, for payment to or on behalf of an Owner pursuant to the Authority's
				  written authorization of the Distribution.
"Eligible Mortgagor": Any Limited-Profit Entity or Nonprofit
				  Corporation or any Illinois land trust the beneficiary of which is a
				  Limited-Profit Entity or Nonprofit Corporation, but only if the Mortgagor's
				  ownership of the Development (including any partnership interest or stock
				  ownership interest in the Mortgagor), or the beneficiary's interest in an
				  Illinois land trust (including the ownership of any partnership interest or
				  stock ownership interest in the beneficiary), shall not cause any Tax-exempt
				  Bonds used to finance the Development to become taxable for federal income tax
				  purposes. The organizational documents of the Mortgagor or beneficiary referred
				  to in Section
				  310.303
				  of this Part shall at all times be in compliance with the requirements of
				  Section 310.303.
"Equity": The difference between the amount of a Mortgage
				  Loan and all other loans and grants for the Development and the total Cost of
				  Development, except as otherwise provided for in Section
				  310.403(f).
"FAF Funds": Funds received from HUD pursuant to certain
				  refunding agreements between the Authority and HUD as authorized by the Stewart
				  B. McKinney Homeless Assistance Act of 1988, which provided for the sharing of
				  savings resulting from the reduction of HUD subsidies provided to certain
				  Developments financed under the Program.
"Final Closing Date": The date on which the Authority makes
				  the final distribution of the proceeds of a Mortgage Loan.
"HOME Program": The Home Investment Partnerships Program for
				  the State of Illinois established pursuant to Title II of the National
				  Affordable Housing Act of 1990 (
				  42 USC
				  12701 ), as amended from time to time, and
				  the regulations promulgated under that Act.
"HUD": the United States Department of Housing and Urban
				  Development.
"Initial Closing Date": The date on which the Authority
				  determines that funds for a Mortgage Loan may be disbursed for the construction
				  or rehabilitation of the Development.
"Limited-Profit Entity": Any individual, joint venture,
				  partnership, limited partnership, limited liability company, trust, or
				  corporation organized or existing under the laws of the State of Illinois or
				  authorized to do business in the State and having either articles of
				  incorporation, articles of organization or comparable documents of organization
				  or a written agreement with the Authority that, in addition to meeting other
				  requirements of law, meets the requirements of Section 7.2(k) of the
				  Act.
"Low Income": An income adjusted for family size that is less
				  than or equal to 80% of the Median Income.
"Median Income": The median income of the county or the
				  metropolitan statistical area, as applicable, in which the Development is
				  located, adjusted for family size. The median income is determined from time to
				  time by HUD for purposes of Section 8 of the United States Housing Act of 1937
				  (
				  42 USC
				  1437 a ).
"Members": The Members of the Authority.
"Moderate Income": An income adjusted for family size that is
				  less than or equal to 120% of the Median Income.
"Mortgage": The mortgage or other instrument in the nature of
				  a mortgage, together with any supplements, amendments or modifications,
				  executed as security for a Mortgage Loan.
"Mortgage Loan": A loan under the Program from the Authority
				  to a Mortgagor to be used for the acquisition, construction or rehabilitation
				  and permanent financing of a Development or the refinancing of a Mortgage Loan
				  that provided financing for an existing Development.
"Mortgage Note": The document executed as evidence of a
				  Mortgagor's indebtedness under a Mortgage Loan and any supplements,
				  modifications or amendments.
"Mortgagor": The Limited-Profit Entity, Nonprofit
				  Corporation, or Trustee holding title to a Development.
"Nonprofit Corporation": A not-for-profit corporation
				  incorporated pursuant to the provisions of the Illinois General Not-for-Profit
				  Corporation Act of 1986 [805 ILCS 105 ] or the State Housing Act [310 ILCS 5 ]
				  and having articles of incorporation that, in addition to meeting other
				  requirements of law, meet the requirements of Section 7.2(m) of the Act.
"Notes": Notes issued by the Authority from time to time to
				  finance Mortgage Loans under the Program.
"Owner": The Limited-Profit Entity or Nonprofit Corporation
				  holding title to Real Estate or a Development or, when the Real Estate or the
				  Development is held in a Trust, the Limited-Profit Entity or Nonprofit
				  Corporation owning the beneficial interest in the Trust. Under no circumstances
				  shall "owner" mean the Authority or a Trustee.
"Program": The Authority's multifamily rental housing
				  mortgage loan program, including, without limitation, Mortgage Loans made under
				  the HOME Program, Risk Sharing Loans, loans made with FAF Funds and Mortgage
				  Loans insured by HUD (other than Risk Sharing Loans), Ambac Assurance
				  Corporation or any other entity that insures mortgage loans.
"Real Estate": The real property upon which a multifamily
				  housing development is to be or has been constructed.
"Regulatory Agreement": The regulatory agreement or other
				  instrument in the nature of a regulatory agreement, together with any
				  supplements, amendments or modifications, governing a Mortgage Loan or a
				  Conduit Loan. The agreement shall, among other things, establish the income and
				  rental restrictions on the Development and the method of determining the
				  permissible Distribution to the Owner.
"Reserve Fund for Replacements": The account that the owner
				  of a Development must establish to provide a source of funds for capital
				  repairs or improvements for the Development.
"Residual Receipts": That part of Development income
				  remaining at the end of an annual fiscal year after the deduction of the amount
				  of all Distributions.
"Risk Sharing Loans": Mortgage Loans insured by HUD under the
				  Housing Finance Agency Risk-Sharing Program for Insured Affordable Multifamily
				  Project Loans, as authorized by Section 542(c) of the Housing and Community
				  Development Act of 1992 (
				  42 USC
				  3535(d) ) and the
				  regulations promulgated under that Act.
"Rules": The Rules and Regulations of the Authority as
				  supplemented and amended from time to time, including, without limitation, the
				  Rules in this Part.
"Staff": The Director, the Deputy Director and the employees
				  of the Authority.
"State": The State of Illinois.
"Surplus Cash": That part of gross Development income
				  remaining at the end of a fiscal year after Development Funds, if applicable,
				  have been disbursed in accordance with the priorities established in the
				  Regulatory Agreement for the Development.
"Tax-exempt Bonds": Bonds issued under the provisions of the
				  Code, the interest on which is not taxable to the holders of the Bonds.
"Tenant": A person or family leasing a dwelling unit in a
				  Development.
"Tenant Selection Plan": The tenant selection plan approved
				  by the Authority for a Development that sets forth the criteria and procedures
				  for selecting Tenants for a Development.
"Trust": An Illinois land trust of which an Owner is the sole
				  beneficiary and that holds legal title to a Development.
"Trustee": The trustee of an Illinois land trust holding
				  legal title to a Development, the beneficiary of which is a Limited-Profit
				  Entity or a Nonprofit Corporation.
"Very Low Income": An income adjusted for family size that is
				  less than or equal to 50% of the Median Income.