Sec. 05.12.01.13. Advance Payment Loans

The Department may make advance payment loans under the following conditions:

A. The recipient shall be a nonprofit entity, which is not a CHDO;

B. The nonprofit recipient shall demonstrate the intention and capacity to complete the project;

C. Repayment of the loan is secured by a mortgage or deed of trust;

D. The loan funds are for payment of early eligible costs under Regulation .07 of this chapter;

E. The nonprofit recipient shall demonstrate that:

(1) There are no other funding alternatives,

(2) There are no other resources available to the nonprofit recipient to pay the costs,

(3) The payment of the costs cannot be deferred until closing of an operating or capital assistance loan; and

F. The loan is due and payable in full if the project terminates before the project's completion.

G. The loan complies with all federal requirements related to environmental review pursuant to 24 CFR §92.352 and 24 CFR Part 58.