Haw. Code R. § 15-307-163 - Permanent financing
(a) Permanent loans
for approved multifamily housing projects with five or more residential units
may be available to developers who qualify in accordance with this chapter;
provided that the project financing does not include a loan or grant from the
corporation's rental housing revolving fund. The corporation may accept or deny
a request for a permanent loan for a project. The corporation may also defer
action on any request for a permanent loan and may request that additional
information be submitted.
(b)
Permanent loans shall be subject to the following underwriting standards and
additional conditions:
(1) A debt coverage
ratio of not less than 1.00x on hard debt service requirements for the duration
of the amortization period of the loan;
(2) A loan-to-value ratio of the total loan
amount to the total appraised value, shall not exceed one hundred per cent;
and
(c) The corporation
shall objectively review each project on a case-by-case basis. The corporation
shall also set forth the terms and conditions of the loan, including the
interest rate, repayment requirements, appropriate security, and the
like.
(d) The corporation shall
take all reasonable steps necessary to ensure that projects funded shall remain
affordable for the economic life of the project or for the full loan
term.
(e) The corporation shall
ensure that loans are secured to safeguard against a change in the use or
ownership of the project, or the project no longer fulfilling the intended
purpose for which the loan was provided. The corporation may also include the
condition that no disbursements of the loan fund will be made by the
corporation until the corporation receives satisfactory evidence that there is
available other means of repayment covering the project. Loans may be secured
through any of the following means:
(1) Use of
a subordinated mortgage;
(2)
Development of a project on government-owned land with conditions attached to
the land;
(3) Use of a regulatory
agreement; or
(4) Any of a
combination of the above.
(f) The corporation shall establish
provisions for monitoring the following:
(1)
The progress of projects receiving permanent loans under these rules;
and
(2) Compliance with the terms
and conditions of the loan.
(g) The corporation may charge a compliance
monitoring fee, which shall be as presented in the exhibit at the end of this
chapter entitled "Fees" dated ________________. The corporation shall have the
right to rescind or recapture moneys loaned if the terms of the contract are
not fulfilled.
(h) If the
corporation accepts a request for a permanent loan for a project, the
corporation must make specific findings that the use and application of program
funds for the project are consistent with the purposes of this
chapter.
(i) The corporation may
participate with private lenders in the provision of permanent loans to
developers.
Notes
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