Sec. 05.04.13.11. Terms and Conditions of Financing

A. Form of Financing. The Department may offer grants and loans.

B. Maximum Amount of Program Financing.

(1) Except as provided in §B(2) of this regulation, Program financing may not exceed:

(a) $2,000 per dwelling unit for Level I treatment described in Regulation .07 of this chapter;

(b) $4,000 per dwelling unit for Level II treatment described in Regulation .07 of this chapter; or

(c) $6,000 per dwelling unit for Level III or IV treatment described in Regulation .07 of this chapter.

(2) The Program may approve an increase in the per unit cost for a particular project based on site conditions, size of units, or innovative methods.

(3) A project may not receive more than $500,000 of Program financing, except as provided in §B(4) of this regulation.

(4) In the discretion of the Department, a project may receive more than $500,000 of Program funding if:

(a) Other Departmental financing for the project is in default and the Department in its discretion determines that the default workout requires Program funds; or

(b) The Program approves an increase for a particular project based on the size of the project, use of innovative methods, availability of other funding, or other special features of the project.

C. Loan Terms.

(1) Term. The term of a loan may not exceed the term of any other funding for the project provided by the Department.

(2) Interest Rate. In its discretion, the Department may require interest to be paid on a loan at a rate set by the Program. The Department may defer payment of interest.

(3) Repayment. At the discretion of the Department, repayment of principal and interest, or either, may be deferred for a period of time or until the earlier to occur of:

(a) Maturity;

(b) Sale of the project; or

(c) Such time as the project fails to qualify as priority housing.

D. Security for Loans. Program loans shall be secured by a recorded mortgage or deed of trust.