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 13VAC10-130-40 - Terms of mortgage loans

Current through Register Vol. 40, No. 24, July 15, 2024
The authority may make or finance mortgage loans secured by
				  a lien on real property or, subject to certain limitations in the Act, a
				  leasehold estate in order to finance M/D developments. The term of the mortgage
				  loan shall be equal to (i) if the M/D loan is to finance the construction of
				  the proposed M/D development, the period determined by the executive director
				  to be necessary to:
(1) complete
				construction of the M/D development, and
(2) consummate the final closing of the M/D
				loan; plus (ii) if the M/D loan is to finance the ownership and operation of
				the proposed M/D development, an amortization period set forth in the M/D loan
				commitment but not to exceed 45 years. The executive director may require that
				such amortization period not extend beyond the termination date of any
				assistance or subsidy.
M/D loans may be made to (i) for-profit housing sponsors in
				  original principal amounts not to exceed the lesser of the maximum principal
				  amount specified in the M/D loan commitment (which amount shall in no event
				  exceed 95% of the fair market value of the property as determined by the
				  authority) or such percentage of the housing development costs of the M/D
				  development as is established in such commitment, but in no event to exceed
				  95%, and (ii) nonprofit housing sponsors in original principal amounts not to
				  exceed the lesser of the maximum principal amount specified in the M/D loan
				  commitment (which amount shall in no event exceed 100% of the fair market value
				  of the property as determined by the authority in those cases in which the
				  nonprofit sponsor is the Commonwealth of Virginia or any agency or
				  instrumentality thereof, and which shall in no event exceed 95% of the fair
				  market value of the property as determined by the authority in those cases in
				  which the nonprofit sponsor is not the Commonwealth of Virginia or an agency or
				  instrumentality thereof) or such percentage of the housing development costs of
				  the M/D development as is established in such commitment, but in no event to
				  exceed 100%.
The maximum principal amount and percentage of housing
				  development costs specified or established in the M/D loan commitment shall be
				  determined by the authority in such manner and based upon such factors as it
				  deems relevant to the security of the M/D loan and the fulfillment of its
				  public purpose. Such factors may include the economic feasibility of the
				  proposed M/D development in terms of its ability to pay the projected debt
				  service on the M/D loan and the projected operating expenses of the proposed
				  M/D development.
The categories of cost which shall be allowable by the
				  authority in the acquisition and construction of an M/D development financed
				  under these rules and regulations shall include all reasonable, ordinary and
				  necessary costs and expenses (including, without limitations, those categories
				  of costs set forth in the authority's rules and regulations for multi-family
				  housing developments) which are incurred by the mortgagor in the acquisition
				  and construction of the M/D development. Upon completion of the acquisition and
				  construction of the M/D development, the total of housing development costs
				  shall be certified to the authority in accordance with these rules and
				  regulations, subject to the review and determination of the authority. In lieu
				  of such certification of housing development costs, the executive director may
				  require such other assurances of housing development costs as he shall deem
				  necessary to enable the authority to determine with reasonable accuracy the
				  actual amount of such housing development costs.
The interest rate on the M/D loan shall be established at
				  the closing and may be thereafter adjusted in accordance with the authority's
				  rules and regulations and the terms of the deed of trust note. The authority
				  shall charge a processing fee and a financing fee in such amounts as the
				  executive director determines to be reasonable. Such fees shall be payable at
				  such times as required by the executive director.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.