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15 AAC 151.405. Borrower eligibility

The corporation will make, participate in the making, purchase, or participate in the purchase of a loan under 15 AAC 151.400 - 15 AAC 151.440 to individuals, partnerships, joint ventures, for-profit corporations, limited liability companies, limited liability partnerships, regional housing authorities, non-profit corporations, corporations organized under 43 U.S.C. 1601 - 1629h (Alaska Native Claims Settlement Act), as amended, including a listed native village, or any wholly owned subsidiary of those corporations, school districts, regional educational attendance areas, agencies of the state, and municipalities.

History: Eff. 5/7/93, Register 130; am 5/16/2012, Register 204

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.099

AS 18.56.730

Editor's note: Even though the amendment of 15 AAC 151.405 was effective 5/16/2012, it was not published until Register 204, January 2013.

15 AAC 151.410. Senior housing characteristics

Repealed.

History: Eff. 5/7/93, Register 130; repealed 5/16/2012, Register 204

Editor's note: Even though the repeal of 15 AAC 151.410 was effective 5/16/2012, it was not published until Register 204, January 2013.

15 AAC 151.412. Security

(a) A loan under 15 AAC 151.400 - 15 AAC 151.440 shall be secured by residential real estate occupied by an individual meeting the definition of "housing for older persons" contained in 24 C.F.R. 100.300 - 100.308, as amended.

(b) The corporation may condition a loan under 15 AAC 151.400 - 15 AAC 151.440 on an agreement that a covenant will encumber the real estate securing the loan which meets the requirements established in 15 AAC 151.435(c) .

History: Eff. 5/16/2012, Register 204

Authority: AS 18.56.088

AS 18.56.090

AS 18.86.099

AS 18.56.730

Editor's note: Even though the adoption of 15 AAC 151.412 was effective 5/16/2012, it was not published until Register 204, January 2013.

15 AAC 151.415. Maximum loan amounts; loan terms

(a) The total principal amount of a loan under 15 AAC 151.400 - 15 AAC 151.440 for a senior housing project, combined with other acceptable superior or subordinate encumbrances on the senior housing, if any, may not exceed an amount which is an acceptable risk to the corporation as determined by an analysis of the project's current and forecasted cash flows in relationship to covering the project's expenses, reserves, and debt service.

(b) For mortgage loans secured by single-family, duplex, triplex, and four-plex senior housing, the provisions of 15 AAC 151.020 relating to loan terms shall apply to a loan under 15 AAC 151.400 - 15 AAC 151.440.

(c) For the assumption of a mortgage loan under 15 AAC 151.400 - 15 AAC 151.440, the provisions of 15 AAC 151.910 relating to assumptions of mortgage loans shall apply.

History: Eff. 5/7/93; am 4/22/94, Register 130; am 5/16/2012, Register 204

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.099

AS 18.56.730

Editor's note: Even though the amendment of 15 AAC 151.415 was effective 5/16/2012, it was not published until Register 204, January 2013.

15 AAC 151.419. Construction loans

(a) The Corporation will consider involvement in construction lending for multi-family, special needs, and congregate housing only as a last alternative and if, in its opinion, the risk to the Corporation has been mitigated to the greatest degree possible.

(b) In determining the feasibility of a construction loan under this section, the Corporation will review the following:

(1) mitigating project characteristics, such as:

(A) limited land development. The Corporation will not participate in a construction loan, if in its opinion, extensive land development is involved, such as, but not limited to, installing or constructing nonresidential improvements, including water, sewer, and other utilities, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and other installations or works that are necessary to prepare the land primarily for residential housing construction;

(B) suitable land characteristics - minimal unknowns that could affect construction, such as water table depths, permafrost and wetlands;

(C) mainstream type of structures which are tried and proven, and

(D) mainstream type of construction which is not on the edge of construction technology.

(2) the financial capacity of the borrower, developer, contractor and other parties, if applicable; and

(3) the experience of the borrower, developer, contractor, architect, engineer and other parties, if applicable.

(c) If the Corporation determines that involvement in a construction loan is feasible, then the extent of the Corporation's participation will be based on the following:

(1) there must be a lead lender which is acceptable to the Corporation. In determining the acceptability of the lead lender, the Corporation will consider, at a minimum, the following:

(A) its financial capacity;

(B) its experience in construction lending;

(C) its account officer's experience in construction lending;

(D) its construction policies and procedures; and

(E) its regulatory limitations;

(2) the Corporation's maximum participation shall not exceed the lesser of 33% of the loan amount or $5,000,000;

(3) the Corporation's participation is either on a pro-rata basis or the last in; and

(4) lead lender's justification as to why the Corporation's participation is required and as a last alternative to assure construction of the project.

History: Eff. 10/21/98, Register 148

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.099

AS 18.56.730

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