Code of Maine Rules › 99 - INDEPENDENT AGENCIES › 346 - MAINE STATE HOUSING AUTHORITY › Chapter 29 - MULTI-FAMILY MORTGAGE LOANS › Section 346-29-5 - Types of Programs

Current through 2024-29, July 17, 2024
MaineHousing may offer a Program for any of the following,
				  any combination of the following, any subset of the following, or any
				  combination of subsets of the following:
A.
Preservation of
				Affordability
. Programs may provide financing to add or preserve low
				income or use restrictions pertaining to a target population or supportive
				services in existing housing.
B.
New Construction, Rehabilitation, and Creation of Affordability
.
				Programs may finance the creation of rental units for Low-income Persons
				through acquisition, new construction, rehabilitation, refinancing, or
				dedication of existing housing as rental units for Low-income Persons.
C.
Subsequent Loans
.
				Programs may offer financing for the repair, maintenance or expansion of assets
				securing existing mortgages in favor of MaineHousing.
D.
Tax Credits
. Programs may
				offer financing for use in conjunction with low-income housing tax credits
				allocated by MaineHousing pursuant to Section 42 of the Code and any applicable
				rules adopted by MaineHousing pursuant to the Maine Administrative Procedures
				Act.
E.
Construction
				Loans
. Programs may offer construction-period financing for the creation
				of rental units for Low-income Persons subject to the following limitations.
i. Public Instrumentalities and Nonprofit
				Corporations. MaineHousing may provide construction-period financing to
				nonprofit corporations, which are exempt from taxation under Section 501(c)(3)
				of the Code and are not private foundations pursuant to Section 509(a) of the
				Code, and municipal housing authorities, which are established pursuant to the
				Act, for the acquisition, new construction and rehabilitation of housing for
				Low-income Persons. Upon completion of the new construction or rehabilitation
				of such housing, the construction loan shall automatically convert to permanent
				financing.
ii. For-Profit -
				Participation. If less than 60% of the financing of a Development is required
				to be tax-exempt bonds from MaineHousing, and the Developer is a for profit
				entity, then MaineHousing must at a minimum use a financial institution as an
				escrow agent. MaineHousing may use the proceeds of tax-exempt bonds to purchase
				a participation in construction loans made by financial institutions in the
				State for a Development. A financial institution shall not sell any additional
				participation in a construction loan in which MaineHousing is participating
				without MaineHousing's prior written consent.
iii. For-Profit - Whole Loans. If a
				Development's financing requires MaineHousing to participate in the
				construction loan with tax-exempt financing at a level greater than 60%,
				MaineHousing may make the whole construction loan without an escrow agent.
iv. Limitation on Interest.
				MaineHousing and any financial institution making or participating in a
				construction loan in which MaineHousing is participating may charge interest
				rates on the construction loan, or its participation in the construction loan,
				provided that such interest rates are as described in the applicable Program
				Guide and do not exceed the Wall Street Journal Prime Rate plus two percent
				(2%).
v. Limitation on Fees and
				Charges. MaineHousing and any financial institution making or participating in
				a construction loan in which MaineHousing is participating may charge
				application fees, commitment fees, origination or financing fees, document
				preparation fees, legal fees, construction review fees and construction
				management or escrow fees, late charges, and prepayment charges provided the
				fees and charges do not exceed the usual and customary fees and charges imposed
				by financial institutions in the State and are consistent with the applicable
				Program Guide.