HAR §15-307-162. Interim financing

(a) Interim loans for approved projects shall be funded in accordance with section 201H-43, HRS, and will be available to developers who qualify in accordance with this chapter. 307-47 (b) A developer shall satisfy the corporation that the developer or contractor is a sound credit risk and has the ability to repay the money borrowed. (c) Upon the report and recommendation of the administrator, the corporation, through board action, may at any time thereafter approve or disapprove the loan. If the corporation accepts a request for an interim 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. (d) The loan amount shall not exceed the actual cost of the project including the land cost, total construction contract price, architectural and engineering fees, interest on the loan, legal and accounting expenses, construction insurance and performance bond premiums, charges for appliances, and such other related expenses and costs as are directly attributable to the development and construction of the project; provided that in no event shall the loan amount exceed a percentage of the total value of the project as determined by the corporation for such project. (e) Mortgage and security requirements shall conform to section 201H-43, HRS, and may 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 permanent financing or other means of repayment covering the project or the individual dwelling units that are for sale. (f) A building and loan agreement and other security agreements, as appropriate, shall be executed on approval of the interim loan upon such terms and conditions as may be required by the corporation. (g) The corporation may participate with private lenders in the provision of interim loans to developers. [Eff 12/04/10; comp 4/28/17; comp 1/15/22] (Auth: HRS §§201H-4, 201H-43) (Imp: HRS §§201H-43, 201H-144) 307-48