Section 346-29-9 - Financing StandardsFinancing of Developments will be subject to the following:
A.Documents Evidencing Obligations of Developer. The Developer shall execute the documents MaineHousing determines are necessary or in its best interest including, without limitation and as applicable, promissory notes; mortgage and security agreements; financial assistance agreements; declarations of covenants, conditions, and restrictions; financing statements; regulatory agreements; participation agreements; escrow agreements; and certifications. B.Developer and Consultant Fees. MaineHousing may condition financing upon a reduction of developer or consultant fees that MaineHousing finds in its discretion are excessive. C.Title Insurance. MaineHousing may require a lender's title insurance policy with mechanics' lien and survey exceptions deleted. D.Property Insurance. The Developer shall obtain and provide evidence of fire, hazard, extended coverage, and liability insurance acceptable to MaineHousing and such other insurance as MaineHousing in its discretion may reasonably require all containing the standard Maine mortgagee clause. E.Authority Legal Opinion. For Developers which are other than individuals, MaineHousing shall require a legal opinion regarding the Developer's legal status and authority to receive the financing. F.Land Use Legal Opinion. MaineHousing shall require a legal opinion regarding compliance of the Development with applicable zoning and land use laws. G.Real Estate Taxes and Municipal Charges. The Developer shall provide evidence of payment of real estate taxes and municipal charges prior to closing. H.Escrows. The Developer shall fund escrows in the amount and on terms established by MaineHousing. Such escrows may include without limitation operating deficit escrows, rehabilitation escrows, replacement reserve escrows, tax and insurance escrows, incomplete work escrows, and relocation escrows. I.Prepayment. MaineHousing may prohibit prepayment of loans, impose restrictions on prepayments, or impose charges in the event of prepayments. J.Ownership Transfers. Any grant, sale, assignment or other transfer of an ownership interest in a Development or the Developer will be subject to MaineHousing's Transfer of Ownership rule. K.Fair Housing and Accessibility. The Development must be operated in accordance with all applicable fair housing and equal access requirements including without limitation the Federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988; the Maine Human Rights Act, Subchapters IV and V; Section 504 of the Rehabilitation Act of 1973; and Title II of the Americans with Disabilities Act of 1990, and all associated regulations and guidance. L.Fees. MaineHousing may charge application fees, commitment fees, financing fees, and escrow administration fees provided such fees are described in the applicable Program Guide. M.Other Requirements. The Developer shall satisfy requirements of funding sources and such other requirements as MaineHousing, in its discretion, determines are prudent. N.Waivers. In the event MaineHousing offers a Program under which (i) MaineHousing lends money short term for acquisition of real estate or (ii) MaineHousing anticipates it will obtain undercollateralized mortgages, MaineHousing may waive or substitute less cumbersome requirements than those set forth in C., D., E., and F. for that Program. 99-346 C.M.R. ch. 29, § 9