Sec. 05.05.02.05. Eligible Uses and Costs

A. The Administration may make loans as follows:

(1) Construction loans;

(2) Rehabilitation loans;

(3) Acquisition and rehabilitation loans;

(4) Home improvement project loans; and

(5) Permanent or refinancing loans.

B. The Administration may participate with other lenders in the making of loans to finance projects.

C. The Administration may purchase securities issued by the Government National Mortgage Association which are backed by loans which comply with the requirements of:

(1) Regulation .03B-D, F, and G;

(2) Regulation .04;

(3) Regulation .06B, E, F, and P(5);

(4) Regulation .08E and F; and

(5) Regulations .11-.14.

D. The Administration may issue revenue bonds, on a pooled or stand-alone basis, which are secured only by a pledge of a housing authority's funding from the United States Department of Housing and Urban Development's Capital Fund Program as amended from time to time or other similar program of the United States Department of Housing and Urban Development. Loans made to housing authorities with the proceeds of revenue bonds shall comply with the requirements of this chapter except:

(1) Regulation .03F;

(2) Regulation .06D, F, K, and L;

(3) Regulation .08D;

(4) Regulation .09D; and

(5) Regulation .13.

E. Before closing a construction loan where the Administration does not provide permanent financing, the sponsor shall provide a permanent loan commitment from a mortgagee approved by the Administration containing terms satisfactory to the Administration or cash or cash equivalent acceptable to the Administration in its sole discretion.

F. Loans may finance the costs associated with undertaking construction or substantial rehabilitation of the project, including without limitation the following:

(1) Costs of appraisals and market studies;

(2) Architectural and engineering costs for design and supervision;

(3) Costs of bonds, permits, and fees;

(4) Carrying costs during construction, including construction interest, real estate taxes, and property insurance;

(5) Financing fees and charges imposed by the Administration, the mortgage insurer, guarantor, letter of credit provider, or any entity servicing or providing credit enhancement with respect to the loan or the bonds financing the loan; and

(6) Legal, processing, packaging, and marketing fees and charges.