Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 365 - AFFORDABLE HOUSING BOND PROGRAM › Subpart G - RETURN ON EQUITY › Section 365.702 - Equity and Distributions

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Right to Distributions. An Owner may have the right, commencing as provided in
				subsection (b) below, to make annual Distributions following the completion of
				a Development's fiscal year in an amount not to exceed a sum equal to the
				product of the Equity in the Development multiplied by a factor equal to two
				hundred percent (200%) of the yield paid on 30-year GNMA mortgage certificates,
				or such lesser sum as the Authority may determine, set and fixed as of the date
				of the conditional commitment letter to the Development. The Chief Financial
				Officer of the Authority shall certify to the GNMA rate as of such date. If a
				Distribution cannot be made as provided in subsections (c) and (d) below, an
				Owner may cumulate the right to make a Distribution. In any partial fiscal year
				following the Cumulation Date, the amount of a Distribution shall be cumulated
				pro rata. If GNMA mortgage certificates cease to be issued for 30-year terms,
				the annual Distributions shall be calculated based on the yield paid on the
				instrument most nearly comparable in character and credit to such GNMA mortgage
				certificate, as determined by the Authority.
b) Cumulation Date. An Owner's right to a
				Distribution shall begin to cumulate on the Initial Closing Date.
c) Source of Distributions. An Owner may make
				Current and Cumulative Distributions only out of Surplus Cash and/or Residual
				Receipts. If Surplus Cash or Residual Receipts are unavailable in a given
				fiscal year, an Owner shall make no Current Distribution, but the right to make
				such Distribution shall cumulate. If Surplus Cash and/or Residual Receipts are
				insufficient in a given fiscal year to make the approved Distribution for the
				Development, an Owner may distribute all available Surplus Cash and/or Residual
				Receipts and cumulate the right to make the remainder of the Distribution in
				future years when and if Surplus Cash and/or Residual Receipts are
				available.
d) Timing of
				Distributions. No Distribution shall be made until after the Final Closing
				Date. Even if Surplus Cash and/or Residual Receipts are available, the initial
				and all subsequent Distributions, including Cumulative Distributions, may be
				made only after: the Authority has approved the Development's annual financial
				report (pursuant to Section
				365.505
				of this Part); the Development has an approved Development budget for the next
				fiscal year; the Owner has complied with all outstanding notices of
				requirements for proper maintenance and operation of the Development; the Owner
				has cured any defaults or breaches of applicable Authority Rules, contracts and
				agreements; and the Authority has issued its written authorization of such
				Distribution.
e) Amount of Equity.
				As required by the Act, the Authority shall establish Equity in a Development
				at the time of making the final Loan advance. In no event shall the amount of
				such Equity be calculated to include any grants or other funds not originating
				with the Owner. Any Equity in a Development arising out of the sale or purchase
				of Low-Income Housing tax credits (including bona fide notes which are not in
				default executed by tax credit purchasers in favor of an Owner) shall be deemed
				to constitute funds originating with the Owner. Once established by the
				Authority, the amount of an Owner's Equity shall remain constant so long as the
				Mortgage Note and Mortgage are outstanding on the Development; provided
				however, the Authority shall reduce the Equity amount by any amount which is
				not timely invested in the Development.