Section 23.03 - Eligible Projects/UsesA HIF loan or other form of financial assistance may only be made for a Residential Housing Development which is a Financially Feasible Project and which:
(1) as required by the applicable HIF Legislation, will be subject to a Land Use Restriction for the benefit of DHCD, running with the land on which the Project is located and duly registered/filed, requiring that the land shall be used for the purpose of providing an Alternative Form of Housing (whether rental or ownership housing), which Land Use Restriction shall not be released until either the balance of the principal and interest for such loan shall have been repaid in full (subject to applicable restrictions on prepayment), or a mortgage foreclosure deed on the first-priority mortgage shall have been recorded; and which: (a) in the case of a HIF I, HIF II, or HIF III Project, reserves at least 50% of the housing units for occupancy by Low-Income Persons or Families. DHCD may require that an additional percentage, not to exceed 25%, be reserved for Very Low-Income Persons or Families. In no case may an Eligible Project have fewer than three (3) units reserved for Low-Income Persons or Families and/or Very Low-Income Persons or Families, and, for Projects in which there are different types of units, may require a minimum number of the various types of units;(b) in the case of a HIF IV, HIF V, or M.G.L. c.121E Project, reserves at least 50% of the housing units for occupancy by Low-Income Persons or Families, and of such reserved units reserves at least 50% of the housing units (that is, 25% of the total housing units) for Extremely Low-Income Persons or Families. DHCD may require that an Eligible Project must have, at a minimum, at least three (3) units reserved for Low-Income Persons or Families and/or Extremely Low-Income Persons or Families, and, for Projects in which there are different types of units, may require a minimum number of the various types of units;(2) is in, or upon completion will be in, compliance with the applicable HIF Legislation and all other applicable federal, state or local requirements including the Americans with Disabilities Act of 1990, and M.G.L. c. 79A, and 105 CMR 410.000;(3) is developed and owned by one or more Non-Profit Corporations (or an entity or entities in which one or more Non-Profit Corporations have a controlling interest), a Limited Equity Cooperative Housing Corporation, or for M.G.L. c. 121E a Local Housing Authority;(4) involves the Creation of Housing, the Preservation of Housing or the refinancing of an existing HIF loan if permitted under 760 CMR 23.04(3); and(5) in the case of Housing in Receivership [HIF IV, HIF V, and M.G.L. c.121E], meets the following criteria: (a) the HIF loan is necessary to make repairs required for the housing to comply with the state sanitary code and to maintain its habitability; and(b) the court that has appointed the receiver enters an order: 1. authorizing the receiver to borrow HIF funds up to the amount of the proposed HIF loan, on the anticipated terms, and to assign its priority lien to the lender to secure the HIF loan;2. authorizing the lender, upon the borrower's breach of the conditions of the HIF loan, to foreclose on its interest under the lien and setting forth an adequate process for such a foreclosure; and3. requiring the receiver to repay any balance of the HIF loan in full upon termination of the receivership, unless it has previously been repaid.