Florida Administrative Code › 67 - FLORIDA HOUSING FINANCE CORPORATION › 67 - Departmental › Chapter 67-39 - FLORIDA AFFORDABLE HOUSING GUARANTEE PROGRAM › Section 67-39.006 - Contractual Provisions of Qualified Obligation Documents

Current through Reg. 50, No. 138; July 16, 2024
The Corporation shall require that supporting documents for
				  each Qualified Obligation contain contractual provisions to ensure payment of
				  the Qualified Obligation. Such provisions shall include, unless otherwise
				  approved by the Board:
(1) Rights of
				foreclosure or other means of obtaining the collateral.
(2) In the case of multifamily Residential
				Property, guarantees of completion, operating deficits and an environmental
				indemnity, effective as of the date of closing, and, if deemed necessary by the
				Credit Underwriter, the Financial Advisor or the Guarantor, a liquidity
				maintenance agreement. In the event an Obligor or Principal elects to satisfy
				such guarantees by means of an irrevocable letter of credit from a banking
				institution, separate letters of credit for each guarantee running
				co-terminously shall be required.
(3) In the case of multifamily Residential
				Property, an unconditional 100% performance and payment bond by a provider
				rated at least "A-" by A. M. Best & Co, with a financial size category of
				at least FSC VI.
(4) In the case of
				multifamily Residential Property financed through the issuance of tax-exempt
				bonds, 50% of the tax credit equity necessary for completion of construction
				being deposited prior to closing with the Qualified Lending Institution or
				Trustee, and all remaining tax credit equity necessary for completion of
				construction being paid in through the Trustee or Qualified Lending
				Institution. All equity required to complete construction must be under the
				control of the tax credit provider or syndicator as of the date of
				closing.
(5) In the case of
				multifamily Residential Property, any single change order in excess of $25, 000
				and all change orders that in the aggregate are in excess of $50, 000 shall be
				subject to the Servicer's and Corporation's approval.
(6) In the case of multifamily Residential
				Property, a schedule of monthly payments of principal and interest due under
				the promissory note and a Guarantee premium schedule.
(7) In the case of multifamily Residential
				Property with respect to Qualified Obligations for which a Guarantee is issued
				beginning in 2002, other than the Qualified Obligations consisting of a loan of
				tax-exempt bond proceeds from the Corporation designated in 2001 by the
				Corporation for funding, a requirement that the amount established as a
				replacement reserve be automatically increased annually beginning in the
				seventh year after closing based on changes in the consumer price index, such
				increase to be subject to waiver or reduction in the event the Obligor provides
				a physical needs study prepared by an independent third party acceptable to the
				Guarantor evidencing such increase as excessive or unnecessary.
(8) The right to name and appoint a receiver
				for the property.
Rulemaking Authority
					 420.507(25),
					 420.5092(4) FS.
					 Law Implemented 420.5092
					 FS.
New 4-5-93, Amended 2-16-94, 2-6-97, Formerly 9I-39.006,
					 Amended 10-21-99, 1-8-02.