Housing development loans; terms; repayment.

A. The authority shall receive and review applications for housing development loans. The authority may make loans to housing development partners if: (1) funding is available; (2) the housing development partner meets credit and identification criteria, as determined by the authority; (3) the housing development partner certifies that the proceeds of the loan will be used for a housing development project; and (4) the housing development partner meets any other requirement for a housing development project loan as determined by the authority. B. The housing development partner shall provide the authority with ongoing information requested by the authority. C. Housing development loans shall be made for loan periods of no more than forty years, as determined by the authority. The loans shall bear an annual interest rate of no less than zero percent. D. Receipts from the repayment of housing development loans shall be deposited in the housing development revolving fund. E. No provision in a housing development loan or the evidence of indebtedness of the housing development loan shall include a penalty or premium for prepayment of the balance of the indebtedness. F. The authority may prioritize an application for housing development assistance for a proposed housing development project located in a nonurban community. As used in this subsection, "nonurban community" means a municipality with a population of less than sixty thousand according to the most recent federal decennial census or the unincorporated area of a county.