Rhode Island Code of Regulations › Title 825 - Housing and Mortgage Finance Corporation › Chapter 30 - Rules Relative to Multifamily Loan Programs › Subchapter 00 - N/A › Part 1 - Rental Housing Production and Rehabilitation Program (825-RICR-30-00-1) › Section 825-RICR-30-00-1.9 - DOCUMENTATION

Current through June 14, 2024
If the Proposal is approved by the Corporation and the Corporation's commitment is accepted by the Housing Sponsor, the Housing Sponsor shall enter into, execute, deliver and provide the Corporation with such documents, instruments and further assurances at the Initial Closing, Final Closing and thereafter as the Corporation deems necessary including, without limitation, a promissory note or notes secured by a mortgage or mortgages on the Development and/or evidencing a security interest in personal property, opinions of counsel to the Housing Sponsor, performance and payment bonds or letters of credit in lieu thereof if acceptable to the Corporation, cost certifications, assignments of construction, architectural and other contracts and rentals, assignments of contracts entered into in connection with the provision of Services for an Assisted Living Facility, and assignments of other contracts which the Corporation deems appropriate, secured or unsecured guarantees, a construction loan agreement and tax regulatory agreement, agreements respecting long term affordability of a Development and use of proceeds from the Targeted Loan Fund and Housing Trust Fund and letters of credit or other pledged cash to cover anticipated losses, if any, in meeting debt service coverage. Any agreement, construction loan agreement and/or related loan documents shall, as applicable, also require the Housing Sponsor to obtain title insurance and to obtain and maintain casualty, liability and builder's risk insurance on the Development in such amounts as the Corporation deems necessary, and may require the Housing Sponsor to hold the Corporation harmless from and against any and all liabilities and claims arising out of the Development. In addition, such agreement and related documents may contain other terms and conditions that the Corporation deems appropriate including, without limitation, provisions respecting the payment of taxes on the Development; provisions requiring a percentage of proceeds to be retained during the construction, development or rehabilitation periods; prepayment provisions, certification, reporting and monitoring requirements with respect to the continued use of Low Income Rental Units and the continuing use of the Development as a multifamily residential housing development; provisions respecting management of the Development; provisions relating to reserves and other operating funds; and the imposition of penalties and/or legal or equitable remedies, including foreclosure against the Development, available to the Corporation in the event of default, fraud or misrepresentation. In connection with Assisted Living Facilities, the Corporation may also require the Housing Sponsor to provide executed copies of all agreements for the provision of Services, all agreements with healthcare providers of all types, all agreements relating to federal and state funding and Medicare and similar programs, all agreements with senior services and social services providers and such other agreements or documentation as the Corporation shall deem to be appropriate.