R 125.133 Determinations of feasibility and authorization of loans.

Rule 133. (1) The authority shall review the analysis and recommendation for applications for a determination that a proposed housing project is feasible and applications for development fund loans in the principal amount of $350,000.00 or more, and, if the authority determines that the application meets the requirements of the act and these rules and is consistent with the authority’s processing and under-writing procedures and guidelines, by resolution, the authority may determine that the proposed housing project is a feasible housing project or authorize a development fund loan to the applicant, or both. (2) For applications for a determination that a proposed housing project is feasible, the resolution must include all of the following determinations by the authority: (a) The proposed housing project provides housing for individuals of low- and moderate-income or serves and improves the residential area where authority-financed housing is located or is planned to be located that enhances the viability of the housing. (b) The applicant is reasonably expected to be able to achieve successful completion of the proposed housing project. (c) The proposed housing project meets a social need in the area where it will be located. (d) A mortgage loan, or a mortgage loan not made by the authority that is a federally- aided mortgage, can reasonably be anticipated to be obtained to provide financing for the proposed housing project. (e) The proposed housing project is a feasible housing project. (3) For applications for development fund loans in the principal amount of $350,000.00 or more, the resolution must include the following determinations by the authority: (a) The applicant is an applicant authorized by the act to receive a development fund loan. (b) The applicant shall use the loan funds in planning for or implementing any activities allowed in the act. (c) The applicant is reasonably expected to successfully implement the proposal. (d) The authority staff reasonably anticipates that the applicant will receive an authority-aided or a federally-aided mortgage loan that provides financing for the proposed housing project. (e) The development fund loan can reasonably be anticipated to be repaid from the proceeds of the authority-aided or a federally-aided mortgage loan. (4) The resolution may include conditions that the authority considers appropriate with respect to an application for a mortgage loan as to the feasible housing project or the use, disbursement, and repayment of the development fund loan.