Louisiana Administrative Code › Title 71 - TREASURY-PUBLIC FUNDS › Part III - Bond Commission-Debt Management › Chapter 5 - Housing › Section III-501 - Second Issues of Mortgage Revenue Bonds

Current through Register Vol. 50, No. 6, June 20, 2024
Disbursement of Funds to Mortgage Lenders
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				  commitments should be made to mortgage lenders and mortgage lenders should make
				  commitments only to individuals who qualify as purchasers and who have entered
				  into bona fide purchase agreements, except that commitments may be made to
				  builders, not exceeding 40 percent of the total loanable funds of the
				  program.
Expropriation
- except as may be found to be
				  in conflict with the provisions of any applicable trust indenture of any
				  authority issuing mortgage revenue bonds, any mortgagor having financed a home
				  under a mortgage revenue bond program whose home is expropriated may, at his
				  option, be transferred to a replacement residence at the same interest rate and
				  maturity as his existing mortgage under the mortgage revenue bond
				  program.
Loan Rates
- a process blending the
				  authority funds with the lending institution's conventional funds should be
				  implemented which would provide higher mortgage interest rates to higher income
				  mortgagors, subject to the limitations as set forth in Rules Number 2 and
				  3.
Maximum Income of Mortgagors
- the maximum
				  adjusted gross family income for mortgagors in the programs should not exceed
				  $40,000.
Maximum Mortgage Amount and Maximum Purchase Price
- the maximum mortgage amount should not exceed $75,000 and the
				  maximum purchase price should not exceed $95,000. Where a duplex, triplex, or
				  four-plex is concerned the maximum mortgage amount shall not exceed
				  $150,000.
Participation by Lending Institutions
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				  there should be participation in the program by existing lenders who are
				  qualified and doing business in Louisiana . The allocation of program amounts
				  to these lenders should be basically in proportion to the business they do in
				  the area in which the loans are to be made.
Public Purpose
- the public purposes for
				  which mortgage revenue bonds should be offered are to provide increased home
				  ownership opportunities for low and moderate income persons and for
				  revitalization of declining areas. It is further the intent that individual
				  mortgagors benefiting from mortgage revenue bond programs shall intend to
				  permanently reside in the home financed in order to encourage family
				  residences.
Refinancing of Loans
- no loans should be
				  made for refinancing, except:
1. with
				respect to substantial rehabilitation meeting objective criteria established by
				the issuing authority;
2. if, after
				a final divorce judgment is rendered, a person wishes to buy the interest of an
				ex-spouse under the terms of a community property settlement, or other binding
				division of assets; or
3.
				succession assets are being liquidated after a final judgment of possession is
				rendered.
Special Consideration for Larger Families
-
				  larger families should be encouraged to participate in the program by
				  permitting such families to make mortgage loans irrespective of their income
				  category, provided the maximum permissible income level for that program is not
				  exceeded.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  49:950 et
				  seq.