(a) The Authority may acquire or contract to acquire any interest in rental housing property from a mortgage lender or developer for: - (i) construction loans for the interim financing of development, construction or rehabilitation of rental housing;
- (ii) loans for the permanent financing of such rental housing, including acquisition; or
- (iii) loans for both interim construction financing and permanent financing of such rental housing.
(b) Applications and processing. - (i) The mortgage lender or developer of the rental housing must submit an application for the financing of rental housing in a form acceptable to the Authority.
- (ii) The Authority, in the processing of applications, may rely upon the Federal Housing Administration, or any other entity which will guaranty or insure the project mortgage or the bonds issued to finance the mortgage, or a third party contractor approved by the Authority, for its review of the following: location, project feasibility, preliminary site plan, marketability and architectural design.
- (iii) Upon approval by the Authority of the application, the mortgage lender and the developer may be required to submit the cost figures for the final construction or rehabilitation, the architectural drawings, the developer's organizational documents and other pertinent information which the Authority determines is necessary.
- (iv) The Authority may require such mortgage purchase and regulatory agreements as it deems necessary to make a commitment for the purchase of a rental housing loan.
(c) Rental housing loans and/or bonds issued to fund such loans shall be insured or guaranteed in the manner and to the extent required by the Act, by the related bond indenture and by the Authority in fulfillment of its public purposes and obligation to act with care and prudence.
(d) As a condition precedent to the initial closing of a rental housing loan, the developer and owner of the project must execute such documents as the Authority finds necessary or appropriate in regulating the acquisition, development, construction or rehabilitation of the proposed rental housing and the operations of the developer and owner, in order to protect the interest of the Authority and to permit fulfillment of the Authority's responsibilities under the Act, these Rules and Regulations and any applicable federal law or agency regulation.