Code of Maine Rules › 99 - INDEPENDENT AGENCIES › 346 - MAINE STATE HOUSING AUTHORITY › Chapter 29 - MULTI-FAMILY MORTGAGE LOANS › Section 346-29-9 - Financing Standards

Current through 2024-29, July 17, 2024
Financing of Developments will be subject to the
				  following:
A.
Documents
				Evidencing Obligations of Developer
. The Developer shall execute the
				documents MaineHousing determines are necessary or in its best interest
				including, without limitation and as applicable, promissory notes; mortgage and
				security agreements; financial assistance agreements; declarations of
				covenants, conditions, and restrictions; financing statements; regulatory
				agreements; participation agreements; escrow agreements; and certifications.
B.
Developer and Consultant
				Fees.
MaineHousing may condition financing upon a reduction of developer
				or consultant fees that MaineHousing finds in its discretion are excessive.
C.
Title Insurance
.
				MaineHousing may require a lender's title insurance policy with mechanics' lien
				and survey exceptions deleted.
D.
Property Insurance
. The Developer shall obtain and provide
				evidence of fire, hazard, extended coverage, and liability insurance acceptable
				to MaineHousing and such other insurance as MaineHousing in its discretion may
				reasonably require all containing the standard Maine mortgagee clause.
E.
Authority Legal
				Opinion
. For Developers which are other than individuals, MaineHousing
				shall require a legal opinion regarding the Developer's legal status and
				authority to receive the financing.
F.
Land Use Legal Opinion
.
				MaineHousing shall require a legal opinion regarding compliance of the
				Development with applicable zoning and land use laws.
G.
Real Estate Taxes and Municipal
				Charges
. The Developer shall provide evidence of payment of real estate
				taxes and municipal charges prior to closing.
H.
Escrows
. The Developer shall
				fund escrows in the amount and on terms established by MaineHousing. Such
				escrows may include without limitation operating deficit escrows,
				rehabilitation escrows, replacement reserve escrows, tax and insurance escrows,
				incomplete work escrows, and relocation escrows.
I.
Prepayment
. MaineHousing may
				prohibit prepayment of loans, impose restrictions on prepayments, or impose
				charges in the event of prepayments.
J.
Ownership Transfers
. Any
				grant, sale, assignment or other transfer of an ownership interest in a
				Development or the Developer will be subject to MaineHousing's Transfer of
				Ownership rule.
K.
Fair
				Housing and Accessibility
. The Development must be operated in
				accordance with all applicable fair housing and equal access requirements
				including without limitation the Federal Fair Housing Act, Title VIII of the
				Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of
				1988; the Maine Human Rights Act, Subchapters IV and V; Section 504 of the
				Rehabilitation Act of 1973; and Title II of the Americans with Disabilities Act
				of 1990, and all associated regulations and guidance.
L.
Fees
. MaineHousing may charge
				application fees, commitment fees, financing fees, and escrow administration
				fees provided such fees are described in the applicable Program Guide.
M.
Other
				Requirements
. The Developer shall satisfy requirements of funding
				sources and such other requirements as MaineHousing, in its discretion,
				determines are prudent.
N.
Waivers
. In the event MaineHousing offers a Program under which
				(i) MaineHousing lends money short term for acquisition of real estate or (ii)
				MaineHousing anticipates it will obtain undercollateralized mortgages,
				MaineHousing may waive or substitute less cumbersome requirements than those
				set forth in C., D., E., and F. for that Program.