D.C. Mun. Regs. tit. 10, r. 10-B4308
The DHCD may originate interim loans to finance all or a portion of the allowable project costs to develop eligible properties, consistent with this section and §§ 4305 and 4307.
The Department shall provide a leveraged loan for that portion of the project not financed by the private or other public lender, consistent with the policy set forth in § 4307.
Where, to the satisfaction of DHCD, no portion of the development cost may be obtained from an institution or lender other than DHCD, DHCD may provide a loan for the full amount of the project's financing, to the extent allowed in §§ 4308.4 and 4308.5.
Interim loans to not-for-profit applicants, when added to any loan secured by the property which is senior or recorded prior to that of DHCD, shall not exceed one hundred percent (100%) of the post development value of the property as determined by an independent fee appraisal satisfactory to DHCD or by a DHCD staff appraisal where DHCD, in its sole discretion, elects this option.
Interim loans to for-profit applicants, when added to any loan secured by the property which is senior or recorded prior to that of DHCD, shall not exceed ninety percent (90%) of the post development value of the property as determined by an independent fee appraisal satisfactory to DHCD or by a DHCD staff appraisal where DHCD, in its sole discretion, elects this option.
The DHCD may, from time to time, establish maximum loan levels calculated on the basis of cost per dwelling unit or calculated in another manner as determined by DHCD, based on cost data available for the Washington, D.C. area.
The principal amount of an interim loan shall bear interest at an annual rate ranging from zero percent (0%) to five percent (5%), except that for a for-profit applicant the Director may establish an annual rate higher than five percent (5%), so long as such rate is at least one percent (1%) lower than the prevailing private or market interest rate for equivalent loans.
The maximum loan term of the interim loan shall be one (1) year, or until the development has been completed to the satisfaction of DHCD, or until permanent public or private financing can be obtained; Provided, that in no case shall the interim loan have a term in excess of five (5) years.
The interim loan shall be repaid in the following manner:
Interim loans may be subordinated to other existing or new debt secured by the property.
Each interim loan shall be secured by a deed of trust on the property, except that, in the sole discretion of DHCD, a portion of the interim loan funds advanced for pre-development costs in accordance with § 4305.1(a), may be determined to be a grant to the applicant.
D.C. Mun. Regs. tit. 10, r. 10-B4308