HAR §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; 307-45 §15-307-163 (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. [Eff 4/28/17; am and comp IAN 1 'i ?O?? ] (Auth: HRS §§201H-4, 201H-191) (Imp: H~S §2CT1fI-1'"91) SUBCHAPTER 11 DEFAULT