Mich. Admin. Code R. 125.143 - Authorization of mortgage loans
Current through Register Vol. 21-17, October 1, 2021
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Rule 143. (1) The authority shall review each analysis and recommendation and, if it determines that the application meets the requirements of the act and these rules and is consistent with the authority's processing and underwriting procedures and guidelines, by resolution, it may authorize a mortgage loan to the applicant. The resolution may authorize the executive director to issue a separate authority mortgage loan commitment to the applicant with respect to the proposed housing project.
(2) The resolution shall include all of the following authority determinations:
(a) The applicant is an eligible applicant.
(b) The proposed housing project will provide housing for persons of low and moderate income or will serve and improve the residential area in which authority-financed housing is located or is planned to be located, thereby enhancing the viability of such housing. In the case of a loan being made pursuant to section 44a (2) of the act, such loan may be made without regard to the income of the owner or occupants if the housing project is located in an area of chronic economic distress or if the housing project constitutes moderate cost residential rental property located elsewhere in the state.
(c) The applicant is reasonably expected to be able to achieve successful completion of the proposed housing project.
(d) The proposed housing project will meet a social need in the area in which it is to be located.
(e) The proposed housing project may reasonably be expected to be marketed successfully.
(f) All elements of the proposed housing project, including, without limitation, the ownership, design, construction, occupancy, management, and operation thereof, have been established in a manner consistent with the authority's processing and underwriting procedures and guidelines, except as to any such elements as are the subject of conditions as to the authorization of the mortgage loan as provided in R 125.144.
(g) In light of the estimated project cost of the proposed housing project, the amount of the mortgage loan authorized by such resolution is consistent with the requirements of the act as to the maximum limitation on the ratio of mortgage loan amount to estimated project cost.
(3) If the principal amount of the mortgage loan is less than $250,000.00, the executive director shall review the authority staff's analysis and, if the executive director determines that the applicant is an eligible applicant, that the application meets the requirements of the act and these rules, and that the application is consistent with the authority's processing and underwriting procedures and guidelines as to the proposed housing project, the executive director may issue, on behalf of the authority and pursuant to resolution of the authority, the authority's mortgage loan commitment to the applicant with respect to the proposed housing project. The mortgage loan commitment shall contain terms, conditions, and requirements as deemed necessary by the executive director.
History: 1979 AC; 1981 AACS; 1983 AACS.