Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 130 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS FOR MENTALLY DISABLED PERSONS › Section 13VAC10-130-140 - Prepayments

Current through Register Vol. 40, No. 24, July 15, 2024
It shall be the policy of the authority that no prepayment
				  of an M/D loan shall be made without its prior written consent for such period
				  of time set forth in the note evidencing the M/D loan as the executive director
				  shall determine, based upon his evaluation of then existing conditions in the
				  financial and housing markets, to be necessary to accomplish the public purpose
				  of the authority. The authority may also prohibit the prepayment of M/D loans
				  during such period of time as deemed necessary by the authority to assure
				  compliance with applicable note and bond resolutions and with federal laws and
				  regulations governing the federal tax exemption of the notes or bonds, if any,
				  issued to finance such mortgage loans. Requests for prepayment shall be
				  reviewed by the executive director on a case-by-case basis. In reviewing any
				  request for prepayment, the executive director shall consider such factors as
				  he deems relevant, including without limitation the following (i) the proposed
				  use of the M/D development subsequent to prepayment, (ii) any actual or
				  potential termination or reduction of any subsidy or other assistance, (iii)
				  the current and future need and demand for low and moderate housing for
				  mentally disabled persons in the market area of the development, (iv) the
				  financial and physical condition of the M/D development, (v) the financial
				  effect of prepayment on the authority and the notes or bonds, if any, issued to
				  finance the M/D development, and (vi) compliance with any applicable federal
				  laws and regulations governing the federal tax exemption of such notes or
				  bonds. As a precondition to its approval of any prepayment, the authority shall
				  have the right to impose restrictions, conditions and requirements with respect
				  to the ownership, use, operation and disposition of the M/D development,
				  including without limitation any restrictions or conditions required in order
				  to preserve the federal tax exemption of notes or bonds issued to finance the
				  M/D development. The authority shall also have the right to charge a prepayment
				  fee in an amount determined in accordance with the terms of the resolutions
				  authorizing the notes or bonds issued to finance the M/D development or in such
				  other amount as may be established by the executive director in accordance with
				  the terms of the deed of trust note and such resolutions. The provisions of
				  this section shall not be construed to impose any duty or obligation on the
				  authority to approve any prepayment, as the executive director shall have sole
				  and absolute discretion to approve or disapprove any prepayment based upon his
				  judgment as to whether such prepayment would be in the best interests of the
				  authority and would promote the goals and purposes of its programs and
				  policies.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.