Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 20 - RULES AND REGULATIONS FOR MULTI-FAMILY HOUSING DEVELOPMENTS › Section 13VAC10-20-120 - Prepayments

Current through Register Vol. 40, No. 24, July 15, 2024
It shall be the policy of the authority that no prepayment
				  of a mortgage loan shall be made without its prior written consent for such
				  period of time set forth in the note evidencing the mortgage 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 prohibit the prepayment
				  of mortgage 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 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
				development subsequent to prepayment;
(ii) any actual or potential termination or
				reduction of any federal subsidy or other assistance;
(iii) the current and future need and demand
				for low and moderate housing in the market area of the development;
(iv) the financial and physical condition of
				the development;
(v) the financial
				effect of prepayment on the authority and the notes or bonds issued to finance
				the 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 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 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
				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. The provisions of this section shall be
				subject to modification pursuant to
				13VAC10-20-130 hereof.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.