{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/36-55.31.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/36-55.31.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/36-55.31.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/36-55.31.html"}],"law_id":63704,"edition_id":1,"section_id":63704,"structure_id":13116,"section_number":"36-55.31","catch_line":"Powers relative to making mortgage loans and temporary construction loans to housing sponsors and persons and families of low and moderate income","history":"1972, c. 830; 1975, c. 536; 1979, c. 374; 2004, c. 187.","full_text":"The HDA shall have all the powers necessary or convenient to carry out and effectuate the purpose and provisions of this chapter, including the following powers in addition to others herein granted:\n\n1\n\nthrough (3) [Repealed.]4\n\nEnter into agreements and contracts with housing sponsors under the provisions of this section;5\n\nInstitute any action or proceeding against any housing sponsor or persons and families of low or moderate income receiving a loan under the provisions hereof, or owning any housing development hereunder in any court of competent jurisdiction in order to enforce the provisions of this chapter, the terms and provisions of any agreement or contract between HDA and such recipients of loans under the provisions hereof, including without limitation provisions as to rental or carrying charges and income limits as applied to tenants or occupants, or to foreclose its mortgage, or to protect the public interest, persons and families of low and moderate income, stockholders, or creditors of such sponsor. In connection with any such action or proceeding it may apply for the appointment of a trustee or receiver to take over, manage, operate and maintain the affairs of a housing sponsor and HDA through such agent as it shall designate is hereby authorized to accept appointment as trustee or receiver of any such sponsor when so appointed by a court of competent jurisdiction.\n\t\t\tThe reorganization of any housing sponsor shall be subject to the supervision and control of HDA, and no such reorganization shall be had without the consent of HDA. Upon any such reorganization the amount of capitalization, including therein all stocks, income debentures and bonds and other evidence of indebtedness shall be such as is authorized by HDA, but not in excess of the fair value of the property received;6\n\nIn any foreclosure action involving a housing sponsor other than a foreclosure action instituted by HDA, the municipality in which any housing development is situate shall, in addition to other necessary parties, be made parties defendant. HDA and the municipality shall take all steps in such action necessary to protect the interest of the public therein, and no costs shall be awarded against HDA or the municipality.\n\t\t\tSubject to the terms of any applicable agreement, contract or other instrument entered into or obtained pursuant to this chapter, judgment of foreclosure shall not be entered unless the court to which application therefor is made shall be satisfied that the interest of the lienholders or holders of bonds or other obligations cannot be adequately secured or safeguarded except by the sale of the property; and in such proceeding the court shall be authorized to make an order increasing the rental or carrying charges to be charged for the housing accommodations in the housing development involved in such foreclosure, or appoint a member of HDA or any officer of the municipality, as a receiver or trustee of the property, or grant such other and further relief as may be reasonable and proper; and in the event of a foreclosure or other judicial sale, the property shall be sold only to a housing sponsor which will manage, operate and maintain the housing development subject to the provisions of this chapter, unless the court shall find that the interest and principal on the obligations secured by the lien which is the subject of foreclosure cannot be earned under the limitations imposed by the provisions of this chapter and that the proceeding was brought in good faith, in which event the property may be sold free of limitations imposed by this chapter or subject to such limitations as the court may deem advisable to protect the public interest;7\n\nIn the event of a judgment against any housing sponsor in any action not pertaining to the foreclosure of a mortgage, there shall be no sale of any of the real property included in any housing development hereunder of such housing sponsor except upon 60 days’ written notice to HDA. Upon receipt of such notice HDA shall take such steps as in its judgment may be necessary to protect the rights of all parties;8\n\nIn the event of violation by a housing sponsor of any provision of a loan, the terms of any agreement between HDA and the housing sponsor, the provisions of this chapter or of any rules or regulations duly promulgated pursuant to the provisions of this chapter, HDA may remove any or all of the existing directors or officers of such corporate housing sponsor and may appoint such person or persons who HDA in its sole discretion deems advisable as new directors or officers to serve in the places of those removed notwithstanding the provisions of any other law and may designate a managing agent with complete and exclusive power to act on behalf of a defaulting partnership housing sponsor; provided, however, that any such directors or officers or managing agents so appointed by HDA shall serve only for a period coexistent with the duration of such violation or until HDA is assured in a manner satisfactory to it against violations of a similar nature or both. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or by other laws governing such qualified housing sponsor;9\n\nForeclose under deeds of trust by powers of sale pursuant to Title 55.1 and amendments thereto;10\n\nMake, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to housing sponsors to finance the ownership and operation of housing developments and multifamily residential housing intended for occupancy by persons and families of low and moderate income, upon the terms and conditions set forth in subsections A and B of § 36-55.33:1;11\n\nMake, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to persons and families of low and moderate income to finance the purchase or refinancing of single-family residential housing, upon the terms and conditions set forth in subsections A and C of § 36-55.33:1;12\n\nMake, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to housing sponsors and persons and families of low and moderate income to finance the construction, rehabilitation, preservation or improvement of housing developments and residential housing intended, upon completion of such construction, rehabilitation, preservation or improvement, for ownership or occupancy by persons and families of low and moderate income, upon the terms and conditions set forth in subsections A and D of § 36-55.33:1;13\n\nMake, undertake commitments to make and participate in the making of mortgage loans to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects and, if any such project is within a revitalization area designated in or pursuant to § 36-55.30:2, any nonhousing buildings that are incidental to such project or are determined by such governing body to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area, upon the terms and conditions set forth in subsections A and E of § 36-55.33:1.","order_by":null,"text":{"0":{"id":232030,"text":"The HDA shall have all the powers necessary or convenient to carry out and effectuate the purpose and provisions of this chapter, including the following powers in addition to others herein granted:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":232031,"text":"through (3) [Repealed.]","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"4"},"2":{"id":232032,"text":"Enter into agreements and contracts with housing sponsors under the provisions of this section;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"1","next_prefix":"5"},"3":{"id":232033,"text":"Institute any action or proceeding against any housing sponsor or persons and families of low or moderate income receiving a loan under the provisions hereof, or owning any housing development hereunder in any court of competent jurisdiction in order to enforce the provisions of this chapter, the terms and provisions of any agreement or contract between HDA and such recipients of loans under the provisions hereof, including without limitation provisions as to rental or carrying charges and income limits as applied to tenants or occupants, or to foreclose its mortgage, or to protect the public interest, persons and families of low and moderate income, stockholders, or creditors of such sponsor. In connection with any such action or proceeding it may apply for the appointment of a trustee or receiver to take over, manage, operate and maintain the affairs of a housing sponsor and HDA through such agent as it shall designate is hereby authorized to accept appointment as trustee or receiver of any such sponsor when so appointed by a court of competent jurisdiction.\n\t\t\tThe reorganization of any housing sponsor shall be subject to the supervision and control of HDA, and no such reorganization shall be had without the consent of HDA. Upon any such reorganization the amount of capitalization, including therein all stocks, income debentures and bonds and other evidence of indebtedness shall be such as is authorized by HDA, but not in excess of the fair value of the property received;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"4":{"id":232034,"text":"In any foreclosure action involving a housing sponsor other than a foreclosure action instituted by HDA, the municipality in which any housing development is situate shall, in addition to other necessary parties, be made parties defendant. HDA and the municipality shall take all steps in such action necessary to protect the interest of the public therein, and no costs shall be awarded against HDA or the municipality.\n\t\t\tSubject to the terms of any applicable agreement, contract or other instrument entered into or obtained pursuant to this chapter, judgment of foreclosure shall not be entered unless the court to which application therefor is made shall be satisfied that the interest of the lienholders or holders of bonds or other obligations cannot be adequately secured or safeguarded except by the sale of the property; and in such proceeding the court shall be authorized to make an order increasing the rental or carrying charges to be charged for the housing accommodations in the housing development involved in such foreclosure, or appoint a member of HDA or any officer of the municipality, as a receiver or trustee of the property, or grant such other and further relief as may be reasonable and proper; and in the event of a foreclosure or other judicial sale, the property shall be sold only to a housing sponsor which will manage, operate and maintain the housing development subject to the provisions of this chapter, unless the court shall find that the interest and principal on the obligations secured by the lien which is the subject of foreclosure cannot be earned under the limitations imposed by the provisions of this chapter and that the proceeding was brought in good faith, in which event the property may be sold free of limitations imposed by this chapter or subject to such limitations as the court may deem advisable to protect the public interest;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"5":{"id":232035,"text":"In the event of a judgment against any housing sponsor in any action not pertaining to the foreclosure of a mortgage, there shall be no sale of any of the real property included in any housing development hereunder of such housing sponsor except upon 60 days’ written notice to HDA. Upon receipt of such notice HDA shall take such steps as in its judgment may be necessary to protect the rights of all parties;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"6":{"id":232036,"text":"In the event of violation by a housing sponsor of any provision of a loan, the terms of any agreement between HDA and the housing sponsor, the provisions of this chapter or of any rules or regulations duly promulgated pursuant to the provisions of this chapter, HDA may remove any or all of the existing directors or officers of such corporate housing sponsor and may appoint such person or persons who HDA in its sole discretion deems advisable as new directors or officers to serve in the places of those removed notwithstanding the provisions of any other law and may designate a managing agent with complete and exclusive power to act on behalf of a defaulting partnership housing sponsor; provided, however, that any such directors or officers or managing agents so appointed by HDA shall serve only for a period coexistent with the duration of such violation or until HDA is assured in a manner satisfactory to it against violations of a similar nature or both. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or by other laws governing such qualified housing sponsor;","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"7":{"id":232037,"text":"Foreclose under deeds of trust by powers of sale pursuant to Title 55.1 and amendments thereto;","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"8":{"id":232038,"text":"Make, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to housing sponsors to finance the ownership and operation of housing developments and multifamily residential housing intended for occupancy by persons and families of low and moderate income, upon the terms and conditions set forth in subsections A and B of § 36-55.33:1;","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"9":{"id":232039,"text":"Make, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to persons and families of low and moderate income to finance the purchase or refinancing of single-family residential housing, upon the terms and conditions set forth in subsections A and C of § 36-55.33:1;","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"10":{"id":232040,"text":"Make, undertake commitments to make and participate in the making of mortgage loans, including without limitation federally insured mortgage loans, to housing sponsors and persons and families of low and moderate income to finance the construction, rehabilitation, preservation or improvement of housing developments and residential housing intended, upon completion of such construction, rehabilitation, preservation or improvement, for ownership or occupancy by persons and families of low and moderate income, upon the terms and conditions set forth in subsections A and D of § 36-55.33:1;","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"11":{"id":232041,"text":"Make, undertake commitments to make and participate in the making of mortgage loans to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects and, if any such project is within a revitalization area designated in or pursuant to § 36-55.30:2, any nonhousing buildings that are incidental to such project or are determined by such governing body to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area, upon the terms and conditions set forth in subsections A and E of § 36-55.33:1.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12"}},"ancestry":[{"id":13116,"edition_id":1,"name":"Virginia Housing Development Authority Act","identifier":"1.2","label":"chapter","depth":2,"order_by":1,"parent_id":12779,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":208615,"object_type":"structure","relational_id":13116,"identifier":"1.2","token":"36\/1.2","url":"\/36\/1.2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12779,"edition_id":1,"name":"Housing","identifier":"36","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":208257,"object_type":"structure","relational_id":12779,"identifier":"36","token":"36","url":"\/36\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":54925,"structure_id":13116,"section_number":"36-55.24","catch_line":"Short title","url":"\/36-55.24\/","token":"36\/1.2\/36-55.24","metadata":false},{"id":67716,"structure_id":13116,"section_number":"36-55.25","catch_line":"Finding and declaration of necessity","url":"\/36-55.25\/","token":"36\/1.2\/36-55.25","metadata":false},{"id":70563,"structure_id":13116,"section_number":"36-55.26","catch_line":"Definitions","url":"\/36-55.26\/","token":"36\/1.2\/36-55.26","metadata":false},{"id":57123,"structure_id":13116,"section_number":"36-55.27","catch_line":"Virginia Housing Development Authority continued; constituted a public instrumentality","url":"\/36-55.27\/","token":"36\/1.2\/36-55.27","metadata":false},{"id":56888,"structure_id":13116,"section_number":"36-55.27:1","catch_line":"Programs and regulations to implement the Consolidated Plan","url":"\/36-55.27_1\/","token":"36\/1.2\/36-55.27_1","metadata":false},{"id":71487,"structure_id":13116,"section_number":"36-55.28","catch_line":"Appointment and tenure of commissioners; officers; quorum; compensation; liability","url":"\/36-55.28\/","token":"36\/1.2\/36-55.28","metadata":false},{"id":55520,"structure_id":13116,"section_number":"36-55.29","catch_line":"Executive director","url":"\/36-55.29\/","token":"36\/1.2\/36-55.29","metadata":false},{"id":76665,"structure_id":13116,"section_number":"36-55.30","catch_line":"Powers of HDA generally","url":"\/36-55.30\/","token":"36\/1.2\/36-55.30","metadata":false},{"id":75266,"structure_id":13116,"section_number":"36-55.30:1","catch_line":"Repealed","url":"\/36-55.30_1\/","token":"36\/1.2\/36-55.30_1","metadata":false},{"id":54150,"structure_id":13116,"section_number":"36-55.30:2","catch_line":"Housing revitalization areas; economically mixed projects","url":"\/36-55.30_2\/","token":"36\/1.2\/36-55.30_2","metadata":false},{"id":62068,"structure_id":13116,"section_number":"36-55.30:3","catch_line":"Regulations; adoption procedures","url":"\/36-55.30_3\/","token":"36\/1.2\/36-55.30_3","metadata":false},{"id":63704,"structure_id":13116,"section_number":"36-55.31","catch_line":"Powers relative to making mortgage loans and temporary construction loans to housing sponsors and persons and families of low and moderate income","url":"\/36-55.31\/","token":"36\/1.2\/36-55.31","metadata":false},{"id":79161,"structure_id":13116,"section_number":"36-55.31:1","catch_line":"Loans for installation of certain energy-saving devices","url":"\/36-55.31_1\/","token":"36\/1.2\/36-55.31_1","metadata":false},{"id":76634,"structure_id":13116,"section_number":"36-55.32","catch_line":"Powers relative to purchase and sale to mortgage lenders of mortgage loans; loans to mortgage lenders","url":"\/36-55.32\/","token":"36\/1.2\/36-55.32","metadata":false},{"id":70770,"structure_id":13116,"section_number":"36-55.33","catch_line":"Repealed","url":"\/36-55.33\/","token":"36\/1.2\/36-55.33","metadata":false},{"id":85938,"structure_id":13116,"section_number":"36-55.33:1","catch_line":"Mortgage loan terms and conditions","url":"\/36-55.33_1\/","token":"36\/1.2\/36-55.33_1","metadata":false},{"id":64397,"structure_id":13116,"section_number":"36-55.33:2","catch_line":"Powers relative to acquisition, development and ownership by HDA of multi-family residential housing","url":"\/36-55.33_2\/","token":"36\/1.2\/36-55.33_2","metadata":false},{"id":77047,"structure_id":13116,"section_number":"36-55.34","catch_line":"Repealed","url":"\/36-55.34\/","token":"36\/1.2\/36-55.34","metadata":false},{"id":58416,"structure_id":13116,"section_number":"36-55.34:1","catch_line":"Power to supervise housing sponsors","url":"\/36-55.34_1\/","token":"36\/1.2\/36-55.34_1","metadata":false},{"id":61595,"structure_id":13116,"section_number":"36-55.34:2","catch_line":"Power to enter into agreements with owners of housing developments eligible for federal low-income housing credits","url":"\/36-55.34_2\/","token":"36\/1.2\/36-55.34_2","metadata":false},{"id":63859,"structure_id":13116,"section_number":"36-55.35","catch_line":"Terms and conditions of purchase from and sale to mortgage lenders of mortgage loans; loans to mortgage lenders","url":"\/36-55.35\/","token":"36\/1.2\/36-55.35","metadata":false},{"id":76002,"structure_id":13116,"section_number":"36-55.36","catch_line":"Terms and conditions of mortgage insurance","url":"\/36-55.36\/","token":"36\/1.2\/36-55.36","metadata":false},{"id":58720,"structure_id":13116,"section_number":"36-55.36:1","catch_line":"Power to create insurance funds and form corporations for the purpose of insuring HDA mortgage loans","url":"\/36-55.36_1\/","token":"36\/1.2\/36-55.36_1","metadata":false},{"id":76281,"structure_id":13116,"section_number":"36-55.37","catch_line":"Exemption from taxation","url":"\/36-55.37\/","token":"36\/1.2\/36-55.37","metadata":false},{"id":70238,"structure_id":13116,"section_number":"36-55.37:1","catch_line":"Repealed","url":"\/36-55.37_1\/","token":"36\/1.2\/36-55.37_1","metadata":false},{"id":73470,"structure_id":13116,"section_number":"36-55.38","catch_line":"Admission and income limitations relative to housing developments","url":"\/36-55.38\/","token":"36\/1.2\/36-55.38","metadata":false},{"id":70596,"structure_id":13116,"section_number":"36-55.39","catch_line":"Procedure prior to financing of housing developments undertaken by housing sponsors","url":"\/36-55.39\/","token":"36\/1.2\/36-55.39","metadata":false},{"id":59570,"structure_id":13116,"section_number":"36-55.40","catch_line":"Notes and bonds","url":"\/36-55.40\/","token":"36\/1.2\/36-55.40","metadata":false},{"id":60236,"structure_id":13116,"section_number":"36-55.41","catch_line":"Reserve funds and appropriations","url":"\/36-55.41\/","token":"36\/1.2\/36-55.41","metadata":false},{"id":73160,"structure_id":13116,"section_number":"36-55.42","catch_line":"Refunding obligations; issuance","url":"\/36-55.42\/","token":"36\/1.2\/36-55.42","metadata":false},{"id":87248,"structure_id":13116,"section_number":"36-55.43","catch_line":"Same; sale","url":"\/36-55.43\/","token":"36\/1.2\/36-55.43","metadata":false},{"id":55926,"structure_id":13116,"section_number":"36-55.44","catch_line":"Deposit and investment of moneys of HDA","url":"\/36-55.44\/","token":"36\/1.2\/36-55.44","metadata":false},{"id":85356,"structure_id":13116,"section_number":"36-55.44:1","catch_line":"Swap agreements by HDA authorized","url":"\/36-55.44_1\/","token":"36\/1.2\/36-55.44_1","metadata":false},{"id":87234,"structure_id":13116,"section_number":"36-55.45","catch_line":"Agreement with Commonwealth","url":"\/36-55.45\/","token":"36\/1.2\/36-55.45","metadata":false},{"id":64957,"structure_id":13116,"section_number":"36-55.46","catch_line":"Commonwealth not liable on notes and bonds","url":"\/36-55.46\/","token":"36\/1.2\/36-55.46","metadata":false},{"id":78753,"structure_id":13116,"section_number":"36-55.47","catch_line":"Remedies of noteholders and bondholders","url":"\/36-55.47\/","token":"36\/1.2\/36-55.47","metadata":false},{"id":72915,"structure_id":13116,"section_number":"36-55.48","catch_line":"Grants from Commonwealth","url":"\/36-55.48\/","token":"36\/1.2\/36-55.48","metadata":false},{"id":65639,"structure_id":13116,"section_number":"36-55.49","catch_line":"Notes and bonds as legal investments","url":"\/36-55.49\/","token":"36\/1.2\/36-55.49","metadata":false},{"id":67775,"structure_id":13116,"section_number":"36-55.50","catch_line":"Liberal construction","url":"\/36-55.50\/","token":"36\/1.2\/36-55.50","metadata":false},{"id":71544,"structure_id":13116,"section_number":"36-55.51","catch_line":"Reports","url":"\/36-55.51\/","token":"36\/1.2\/36-55.51","metadata":false},{"id":70076,"structure_id":13116,"section_number":"36-55.51:1","catch_line":"Annual audit","url":"\/36-55.51_1\/","token":"36\/1.2\/36-55.51_1","metadata":false},{"id":81339,"structure_id":13116,"section_number":"36-55.52","catch_line":"Inconsistent provisions in other laws superseded","url":"\/36-55.52\/","token":"36\/1.2\/36-55.52","metadata":false}],"previous_section":{"id":62068,"structure_id":13116,"section_number":"36-55.30:3","catch_line":"Regulations; adoption procedures","url":"\/36-55.30_3\/","token":"36\/1.2\/36-55.30_3","metadata":false},"next_section":{"id":79161,"structure_id":13116,"section_number":"36-55.31:1","catch_line":"Loans for installation of certain energy-saving devices","url":"\/36-55.31_1\/","token":"36\/1.2\/36-55.31_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/36-55.31\/","history_text":"

This law was first created in 1972. The record of its establishment is cataloged in chapter 830 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1972 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1975, chapter 536; in 1979, chapter 374; in 2004, chapter 187<\/a>.<\/p>","references":[{"id":85938,"section_number":"36-55.33:1","catch_line":"Mortgage loan terms and conditions","order_by":null,"url":"\/36-55.33_1\/"},{"id":70596,"section_number":"36-55.39","catch_line":"Procedure prior to financing of housing developments undertaken by housing sponsors","order_by":null,"url":"\/36-55.39\/"},{"id":63345,"section_number":"6.2-303","catch_line":"Contracts for more than legal rate of interest","order_by":null,"url":"\/6.2-303\/"}],"refers_to":[{"id":54150,"section_number":"36-55.30:2","catch_line":"Housing revitalization areas; economically mixed projects","order_by":null,"url":"\/36-55.30_2\/"},{"id":85938,"section_number":"36-55.33:1","catch_line":"Mortgage loan terms and conditions","order_by":null,"url":"\/36-55.33_1\/"}],"permalink":{"id":208661,"object_type":"law","relational_id":63704,"identifier":"36-55.31","token":"36\/1.2\/36-55.31","url":"\/36-55.31\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/36-55.31\/","token":"36\/1.2\/36-55.31","dublin_core":{"Title":"Powers relative to making mortgage loans and temporary construction loans to housing sponsors and persons and families of low and moderate income","Type":"Text","Format":"text\/html","Identifier":"\u00a7 36-55.31","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The HDA<\/span> shall have all the powers necessary or convenient to carry out and effectuate the purpose and provisions of this chapter, including the following powers in addition to others herein granted:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> through (3) [Repealed.] <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Enter into agreements and contracts<\/span> with housing sponsors<\/span> under the provisions of this section; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Institute any action or proceeding against any housing sponsor<\/span> or persons and families of low or moderate income receiving a loan under the provisions hereof, or owning any housing development<\/span> hereunder in any court<\/span> of competent jurisdiction<\/span> in order<\/span> to enforce the provisions of this chapter, the terms and provisions of any agreement or contract<\/span> between HDA<\/span> and such recipients of loans under the provisions hereof, including without limitation provisions as to rental or carrying charges and income limits as applied to tenants or occupants, or to foreclose its mortgage<\/span>, or to protect the public interest, persons and families of low and moderate income<\/span>, stockholders, or creditors<\/span> of such sponsor. In connection with any such action or proceeding it may apply for the appointment of a trustee or receiver to take over, manage, operate and maintain the affairs of a housing sponsor<\/span> and HDA<\/span> through such agent as it shall designate is hereby authorized to accept appointment as trustee or receiver of any such sponsor when so appointed by a court<\/span> of competent jurisdiction<\/span>.\n\t\t\tThe reorganization of any housing sponsor<\/span> shall be subject to the supervision and control of HDA<\/span>, and no such reorganization shall be had without the consent of HDA<\/span>. Upon any such reorganization the amount of capitalization, including therein all stocks, income debentures and bonds<\/span> and other evidence<\/span> of indebtedness shall be such as is authorized by HDA<\/span>, but not in excess of the fair value of the property received; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> In any foreclosure action involving a housing sponsor<\/span> other than a foreclosure action instituted by HDA<\/span>, the municipality<\/span> in which any housing development<\/span> is situate shall, in addition to other necessary parties, be made parties defendant<\/span>. HDA<\/span> and the municipality<\/span> shall take all steps in such action necessary to protect the interest of the public therein, and no costs shall be awarded against HDA<\/span> or the municipality<\/span>.\n\t\t\tSubject to the terms of any applicable agreement, contract<\/span> or other instrument entered into or obtained pursuant to this chapter, judgment<\/span> of foreclosure shall not be entered unless the court<\/span> to which application therefor is made shall be satisfied that the interest of the lienholders or holders of bonds<\/span> or other obligations<\/span> cannot be adequately secured or safeguarded except by the sale of the property; and in such proceeding the court<\/span> shall be authorized to make an order<\/span> increasing the rental or carrying charges to be charged for the housing accommodations in the housing development<\/span> involved in such foreclosure, or appoint a member of HDA<\/span> or any officer of the municipality<\/span>, as a receiver or trustee of the property, or grant such other and further relief as may be reasonable and proper; and in the event of a foreclosure or other judicial sale, the property shall be sold only to a housing sponsor<\/span> which will manage, operate and maintain the housing development<\/span> subject to the provisions of this chapter, unless the court<\/span> shall find that the interest and principal on the obligations secured by the lien<\/span> which is the subject of foreclosure cannot be earned under the limitations imposed by the provisions of this chapter and that the proceeding was brought in good faith, in which event the property may be sold free of limitations imposed by this chapter or subject to such limitations as the court<\/span> may deem advisable to protect the public interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> In the event of a judgment<\/span> against any housing sponsor<\/span> in any action not pertaining to the foreclosure of a mortgage<\/span>, there shall be no sale of any of the real property<\/span> included in any housing development<\/span> hereunder of such housing sponsor<\/span> except upon 60 days’ written notice to HDA<\/span>. Upon receipt of such notice HDA<\/span> shall take such steps as in its judgment<\/span> may be necessary to protect the rights of all parties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> In the event of violation by a housing sponsor<\/span> of any provision of a loan, the terms of any agreement between HDA<\/span> and the housing sponsor<\/span>, the provisions of this chapter or of any rules or regulations duly promulgated pursuant to the provisions of this chapter, HDA<\/span> may remove any or all of the existing directors or officers of such corporate housing sponsor<\/span> and may appoint such person or persons who HDA<\/span> in its sole discretion deems advisable as new directors or officers to serve in the places of those removed notwithstanding the provisions of any other law<\/span> and may designate a managing agent with complete and exclusive power to act on behalf of a defaulting partnership housing sponsor<\/span>; provided, however, that any such directors or officers or managing agents so appointed by HDA<\/span> shall serve only for a period coexistent with the duration of such violation or until HDA<\/span> is assured in a manner satisfactory to it against violations of a similar nature or both. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or by other laws<\/span> governing such qualified housing sponsor<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Foreclose under deeds of trust by powers of sale pursuant to Title 55.1 and amendments thereto; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Make, undertake commitments to make and participate in the making of mortgage loans<\/span>, including without limitation federally insured mortgage<\/span> loans, to housing sponsors<\/span> to finance the ownership and operation of housing developments<\/span> and multifamily residential housing<\/span> intended for occupancy by persons and families of low and moderate income<\/span>, upon the terms and conditions set forth in subsections A and B of § 36-55.33:1<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Make, undertake commitments to make and participate in the making of mortgage loans<\/span>, including without limitation federally insured mortgage<\/span> loans, to persons and families of low and moderate income<\/span> to finance the purchase or refinancing of single-family residential housing<\/span>, upon the terms and conditions set forth in subsections A and C of § 36-55.33:1<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> Make, undertake commitments to make and participate in the making of mortgage loans<\/span>, including without limitation federally insured mortgage<\/span> loans, to housing sponsors<\/span> and persons and families of low and moderate income<\/span> to finance the construction, rehabilitation, preservation or improvement of housing developments<\/span> and residential housing intended, upon completion of such construction, rehabilitation, preservation or improvement, for ownership or occupancy by persons and families of low and moderate income<\/span>, upon the terms and conditions set forth in subsections A and D of § 36-55.33:1<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> Make, undertake commitments to make and participate in the making of mortgage loans<\/span> to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects<\/span> and, if any such project is within a revitalization area designated in or pursuant to § 36-55.30:2<\/a>, any nonhousing buildings<\/span> that are incidental to such project or are determined by such governing body to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area, upon the terms and conditions set forth in subsections A and E of § 36-55.33:1<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPOWERS RELATIVE TO MAKING MORTGAGE LOANS AND TEMPORARY CONSTRUCTION LOANS TO\nHOUSING SPONSORS AND PERSONS AND FAMILIES OF LOW AND MODERATE INCOME (\u00a7\n36-55.31)\n\nThe HDA shall have all the powers necessary or convenient to carry out and\neffectuate the purpose and provisions of this chapter, including the following\npowers in addition to others herein granted:\n\n1. through (3) [Repealed.]\n\n4. Enter into agreements and contracts with housing sponsors under the\nprovisions of this section;\n\n5. Institute any action or proceeding against any housing sponsor or persons and\nfamilies of low or moderate income receiving a loan under the provisions hereof,\nor owning any housing development hereunder in any court of competent\njurisdiction in order to enforce the provisions of this chapter, the terms and\nprovisions of any agreement or contract between HDA and such recipients of loans\nunder the provisions hereof, including without limitation provisions as to\nrental or carrying charges and income limits as applied to tenants or occupants,\nor to foreclose its mortgage, or to protect the public interest, persons and\nfamilies of low and moderate income, stockholders, or creditors of such sponsor.\nIn connection with any such action or proceeding it may apply for the\nappointment of a trustee or receiver to take over, manage, operate and maintain\nthe affairs of a housing sponsor and HDA through such agent as it shall\ndesignate is hereby authorized to accept appointment as trustee or receiver of\nany such sponsor when so appointed by a court of competent jurisdiction.\n\t\t\tThe reorganization of any housing sponsor shall be subject to the supervision\nand control of HDA, and no such reorganization shall be had without the consent\nof HDA. Upon any such reorganization the amount of capitalization, including\ntherein all stocks, income debentures and bonds and other evidence of\nindebtedness shall be such as is authorized by HDA, but not in excess of the\nfair value of the property received;\n\n6. In any foreclosure action involving a housing sponsor other than a\nforeclosure action instituted by HDA, the municipality in which any housing\ndevelopment is situate shall, in addition to other necessary parties, be made\nparties defendant. HDA and the municipality shall take all steps in such action\nnecessary to protect the interest of the public therein, and no costs shall be\nawarded against HDA or the municipality.\n\t\t\tSubject to the terms of any applicable agreement, contract or other\ninstrument entered into or obtained pursuant to this chapter, judgment of\nforeclosure shall not be entered unless the court to which application therefor\nis made shall be satisfied that the interest of the lienholders or holders of\nbonds or other obligations cannot be adequately secured or safeguarded except by\nthe sale of the property; and in such proceeding the court shall be authorized\nto make an order increasing the rental or carrying charges to be charged for the\nhousing accommodations in the housing development involved in such foreclosure,\nor appoint a member of HDA or any officer of the municipality, as a receiver or\ntrustee of the property, or grant such other and further relief as may be\nreasonable and proper; and in the event of a foreclosure or other judicial sale,\nthe property shall be sold only to a housing sponsor which will manage, operate\nand maintain the housing development subject to the provisions of this chapter,\nunless the court shall find that the interest and principal on the obligations\nsecured by the lien which is the subject of foreclosure cannot be earned under\nthe limitations imposed by the provisions of this chapter and that the\nproceeding was brought in good faith, in which event the property may be sold\nfree of limitations imposed by this chapter or subject to such limitations as\nthe court may deem advisable to protect the public interest;\n\n7. In the event of a judgment against any housing sponsor in any action not\npertaining to the foreclosure of a mortgage, there shall be no sale of any of\nthe real property included in any housing development hereunder of such housing\nsponsor except upon 60 days’ written notice to HDA. Upon receipt of such\nnotice HDA shall take such steps as in its judgment may be necessary to protect\nthe rights of all parties;\n\n8. In the event of violation by a housing sponsor of any provision of a loan,\nthe terms of any agreement between HDA and the housing sponsor, the provisions\nof this chapter or of any rules or regulations duly promulgated pursuant to the\nprovisions of this chapter, HDA may remove any or all of the existing directors\nor officers of such corporate housing sponsor and may appoint such person or\npersons who HDA in its sole discretion deems advisable as new directors or\nofficers to serve in the places of those removed notwithstanding the provisions\nof any other law and may designate a managing agent with complete and exclusive\npower to act on behalf of a defaulting partnership housing sponsor; provided,\nhowever, that any such directors or officers or managing agents so appointed by\nHDA shall serve only for a period coexistent with the duration of such violation\nor until HDA is assured in a manner satisfactory to it against violations of a\nsimilar nature or both. Officers or directors so appointed need not be\nstockholders or meet other qualifications which may be prescribed by the\ncertificate of incorporation or by other laws governing such qualified housing\nsponsor;\n\n9. Foreclose under deeds of trust by powers of sale pursuant to Title 55.1 and\namendments thereto;\n\n10. Make, undertake commitments to make and participate in the making of\nmortgage loans, including without limitation federally insured mortgage loans,\nto housing sponsors to finance the ownership and operation of housing\ndevelopments and multifamily residential housing intended for occupancy by\npersons and families of low and moderate income, upon the terms and conditions\nset forth in subsections A and B of § 36-55.33:1;\n\n11. Make, undertake commitments to make and participate in the making of\nmortgage loans, including without limitation federally insured mortgage loans,\nto persons and families of low and moderate income to finance the purchase or\nrefinancing of single-family residential housing, upon the terms and conditions\nset forth in subsections A and C of § 36-55.33:1;\n\n12. Make, undertake commitments to make and participate in the making of\nmortgage loans, including without limitation federally insured mortgage loans,\nto housing sponsors and persons and families of low and moderate income to\nfinance the construction, rehabilitation, preservation or improvement of housing\ndevelopments and residential housing intended, upon completion of such\nconstruction, rehabilitation, preservation or improvement, for ownership or\noccupancy by persons and families of low and moderate income, upon the terms and\nconditions set forth in subsections A and D of § 36-55.33:1;\n\n13. Make, undertake commitments to make and participate in the making of\nmortgage loans to finance the construction, rehabilitation, preservation or\nimprovement, or ownership and operation, of economically mixed projects and, if\nany such project is within a revitalization area designated in or pursuant to\n§ 36-55.30:2, any nonhousing buildings that are incidental to such project\nor are determined by such governing body to be necessary or appropriate for the\nrevitalization of such area or for the industrial, commercial or other economic\ndevelopment of such area, upon the terms and conditions set forth in subsections\nA and E of § 36-55.33:1.\n\nHISTORY: 1972, c. 830; 1975, c. 536; 1979, c. 374; 2004, c. 187.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}