(1) No Standard
Program.
(a) UHC does not have a standard
financing program for bond financed multifamily rental housing. It is the
developer's responsibility to engage professionals to assist in obtaining
adequate bond credit enhancement and in structuring a sale or placement of the
bonds. UHC, as issuer, reserves the right to approve or disapprove the terms of
any proposed project or the bond financing enhancement or structure.
(b) The sole source of repayment of the
bonds, including all interest and any premiums, for a multifamily rental
housing project shall be the revenue sources related to the project financed by
the bonds. Neither the bonds nor any interest or premium shall constitute a
general indebtedness of UHC.
(c)
One or more national rating services must rate publicly offered bonds issued by
UHC. A minimum rating as determined by UHC is required, unless specifically
waived for good cause. A type of credit enhancement backing the bonds must be
in place to increase the probability that the bond holders will be repaid even
if the project and its underlying mortgage loan defaults. UHC reserves the
right to approve all forms of credit enhancement for the bonds. With certain
restrictions, UHC may permit bonds privately placed with institutional
investors to be unrated.
(d)
Publicly offered bonds issued by UHC shall be sold to underwriters with the
financial backing and capability to generate cash at closing equal to the
amount of the bonds, regardless of whether the bonds have been resold to
investors. UHC may appoint underwriters requested by the developer; however,
UHC reserves the right to approve any underwriter, and may appoint
co-underwriters, as it deems appropriate.
(2) Legal Opinions.
(a) UHC appoints bond counsel to provide any
opinion with respect to the tax exemption of the interest on the
bonds.
(b) Any other opinions
regarding UHC that may be required by other parties to a bond transaction will
be provided by counsel appointed by UHC but paid for by the
developer.
(3) Income
limits of qualifying tenants.
UHC shall establish and may amend maximum income limits for
low and moderate income persons eligible as qualifying tenants of multifamily
developments. UHC's president may establish income limits of UHC's multifamily
programs and such limits shall not exceed 140% of area or state median income
as determined and published by HUD. UHC shall make information concerning the
limits available to interested persons including potential renters and
developers and shall incorporate the limits into appropriate documents. Income
limits may vary based on several factors including loan program, household
size, county, targeted area, source and availability of funds, and risk to
UHC.
(4) Eligible
developers and owners.
(a) To be eligible to
participate in the multifamily financings, the mortgagor or owner may be an
individual, a limited liability company, a partnership or a corporation having
the legal capacity and authority to borrow money for the purposes of
constructing, owning and operating a multifamily development.
(b) UHC may establish criteria relating to
the credit worthiness and the financial, construction and operating capacity of
the developer or owner as UHC deems necessary to maintain a secure program and
to provide decent, safe and sanitary rental housing. Alternatively, in
situations where UHC will be issuing bonds the proceeds of which will be loaned
to the developer or owner, UHC may rely on the due diligence of the
underwriters or purchasers of the bonds or the issuer of the credit enhancement
for the bonds in making the determination that the developer or owner possesses
sufficient creditworthiness and sufficient financial, construction and
operating capacity.
(5)
Fees and Expenses.
The developer shall be responsible for all fees and expenses
incurred in connection with the issuance of any bonds. UHC may charge a
developer a fee for issuing the bonds or for performing any services required
by UHC.
