{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/36-55.33_1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/36-55.33_1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/36-55.33_1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/36-55.33_1.html"}],"law_id":85938,"edition_id":1,"section_id":85938,"structure_id":13116,"section_number":"36-55.33:1","catch_line":"Mortgage loan terms and conditions","history":"1975, c. 536; 1979, c. 374; 1982, c. 176; 1987, c. 164; 1988, c. 556; 1989, c. 161; 1991, c. 447; 2004, c. 187; 2010, c. 794.","full_text":"A\n\nAll mortgage loans made by HDA pursuant to \u00a7 36-55.31 of this chapter shall be subject to the following terms and conditions:1\n\nThe ratio of mortgage loan principal amount to total housing development costs and the amortization period of any mortgage loans made by HDA which are federally insured mortgages, in whole or in part, or which are otherwise assisted or aided, directly or indirectly, by the federal government, shall be governed by the rules and regulations provided in or pursuant to the federal government program under which the HDA mortgage loan or part thereof is insured, guaranteed, assisted or aided; but in no event shall such amortization period exceed 50 years.2\n\nA mortgage loan made by HDA may be prepaid to maturity after a period of years, and on such terms and conditions, as are determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.3\n\nHDA shall have authority to establish and modify from time to time the interest rates at which it shall make mortgage loans and commitments therefor. Such interest rates shall be established by HDA in its sole discretion at the lowest level consistent with HDA’s cost of operation and its responsibilities to the holders of its bonds, bond anticipation notes and other obligations. In addition to such interest charges, HDA may make and collect such fees and charges, including but not limited to reimbursement of HDA’s financing costs, service charges, insurance premiums and mortgage insurance premiums, as HDA determines to be reasonable. No person shall, by way of defense or otherwise, avail himself of any of the provisions of Chapter 3 (§ 6.2-300 et seq.) of Title 6.2 to avoid or defeat the payment of any interest or fee which he shall have contracted to pay on any loan or forbearance of money made, directly or indirectly, or assisted in any manner by HDA under or pursuant to this chapter.B\n\nMortgage loans made by HDA 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, pursuant to subdivision (10) of \u00a7 36-55.31, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:1\n\nThe amount disbursed with respect to an HDA mortgage loan to a limited profit housing sponsor shall not exceed 95 percent of the total housing development costs and to a nonprofit housing sponsor shall not exceed 100 percent of the total housing development costs. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA mortgage loan does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. The amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years.2\n\nThe instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. The aforesaid mortgage and instrument evidencing an HDA mortgage loan may contain exculpatory provisions relieving the housing sponsor or its principal or principals from personal liability if deemed desirable by HDA.3\n\nWith respect to any such HDA mortgage loan made to a limited profit housing sponsor, HDA may require that such limited profit housing sponsor not make distributions in any one year with respect to the housing development or multifamily residential housing financed by such HDA mortgage loan in excess of such percentage of such limited profit housing sponsor’s equity in the housing development or multifamily residential housing as may be determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for such mortgage loan. None of the partners, principals, stockholders or holders of a beneficial interest in such limited profit housing sponsor shall earn, accept or receive a return in any one year with respect to the housing development or multifamily residential housing financed by such HDA mortgage loan greater than his applicable proportion of any such percentage of such limited profit housing sponsor’s equity in the housing development or multifamily residential housing as may be determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan. The right to any such limited distribution or return may be cumulative to the extent provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan. For the purpose of this section, the terms “distribution” and “return” are intended to mean payments on account of the housing development or multifamily residential housing financed by such HDA mortgage loan resulting from the operation thereof. Any payment to a person or entity who is a partner, principal, stockholder or holder of a beneficial interest in such limited profit housing sponsor shall not be deemed a “distribution” or “return” to such person or entity if the funds with which such payment is made are funds paid or contributed to such limited profit housing sponsor by persons or entities purchasing a beneficial interest in such limited profit housing sponsor. At or after the completion of construction, rehabilitation or improvement of the housing development or multifamily residential housing financed by such HDA mortgage loan, such limited profit housing sponsor’s equity in the housing development or multifamily residential housing shall be established in the manner provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for such mortgage loan. Such equity shall be determined by HDA, at its option, as either (i) the difference between the total housing development costs as to the housing development or multifamily residential housing and the final principal amount of such HDA mortgage loan, or (ii) the difference between the fair market value of such housing development and the final principal amount of such HDA mortgage loan. HDA may thereafter from time to time adjust such equity to be equal to the difference, as of the date of adjustment, between the fair market value of such housing development and the outstanding principal balance of such HDA mortgage loan. HDA may review and regulate a proposed retirement of any capital investment in, or redemption of any stock of, such limited profit housing sponsor in the manner provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.4\n\nWith respect to any such HDA mortgage loan, HDA may require the housing sponsor and other parties related to the housing development or multifamily residential housing financed by such HDA mortgage loan to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such housing sponsor and its partners, principals or stockholders to limitations established by HDA as to rentals and other charges, profits, fees, the use and disposition of the real property constituting the site of or relating to the housing development or multifamily residential housing and other property of such housing sponsor, and the use and disposition of franchises of such housing sponsor to the extent more restrictive limitations are not provided by the law under which such housing sponsor is incorporated or organized.5\n\nAs a condition of any such HDA mortgage loan, HDA shall have the power to supervise the housing sponsor in accordance with the provisions of § 36-55.34:1 at all times during which such HDA mortgage loan is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds issued by HDA to finance such HDA mortgage loan.C\n\nMortgage loans made by HDA to persons and families of low and moderate income to finance the purchase or refinancing of single-family residential housing, pursuant to subdivision (11) of \u00a7 36-55.31, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:1\n\nThe amount disbursed with respect to such HDA mortgage loan shall not exceed 100 percent of the sales price or market value of the single-family residential housing, as determined or approved by or on behalf of HDA. HDA may also disburse additional amounts to finance such closing costs and fees as it may deem necessary or appropriate, and all such disbursements and financings of closing costs and fees subsequent to the enactment of this chapter are hereby validated. The amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years. If during the term of the HDA mortgage loan (i) the outstanding principal balance of the HDA mortgage loan is expected to increase to an amount in excess of the original principal balance or (ii) the amount of monthly payments on the HDA mortgage loan will or may be adjusted, HDA shall so notify the applicants prior to the execution of the HDA mortgage loan. Such notice shall describe the terms and conditions under which the outstanding principal balance or the amount of monthly payments, or both, may be so increased or adjusted, and such notice shall be signed by the applicants.2\n\nSuch an HDA mortgage loan shall be made only after a determination that such a mortgage loan is not otherwise available from private lenders upon reasonably equivalent terms and conditions, and the HDA resolution authorizing, or commitment for, such mortgage loan shall contain such a determination.3\n\nThe instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. With respect to any such HDA mortgage loan, HDA may require the person or family of low or moderate income to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such person or family of low or moderate income relating to the use, occupancy, maintenance and sale of the single-family residential housing financed by such HDA mortgage loan and the payment, prepayment and assignment of such HDA mortgage loan.D\n\nMortgage loans made by HDA to housing sponsors or persons or families of low or moderate income to finance the construction, rehabilitation, preservation or improvement of housing developments or 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, pursuant to subdivision (12) of \u00a7 36-55.31 of this chapter, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:1\n\nThe amount disbursed with respect to such an HDA mortgage loan to a limited profit housing sponsor shall not exceed 95 percent of the total housing development costs and to a nonprofit housing sponsor or a person or family of low or moderate income shall not exceed 100 percent of the total housing development costs. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA mortgage loan does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. Without regard as to whether HDA intends to remain the lender in respect to such mortgage loan throughout the amortization period thereof, the amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.2\n\nIn considering any application for such an HDA mortgage loan, HDA shall give first priority to applications relating to housing developments or residential housing which are or will be well-planned and well-designed, and also shall give consideration to:\n\t\t\t\ta. The comparative need for housing for persons and families of low and moderate income in the area proposed to be served by the housing development or residential housing;\n\t\t\t\tb. The ability of the applicant to construct, rehabilitate or improve and market or operate, manage and maintain the housing development or residential housing;\n\t\t\t\tc. The existence of zoning or other regulations to protect adequately the housing development or residential housing against detrimental future uses which could cause undue depreciation in the value of the housing development or residential housing;\n\t\t\t\td. The availability of adequate parks, recreational areas, utilities, schools, transportation and parking; and\n\t\t\t\te. The existence of statewide housing plans.3\n\nWith respect to any such HDA mortgage loan, HDA may require the housing sponsor, person or family of low or moderate income, contractors, architects, marketing agents, management agents and other parties related to the housing development or residential housing financed by such HDA mortgage loan to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such housing sponsor and its partners, principals or stockholders or such person or family of low or moderate income to limitations established by HDA as to rentals and other charges, profits, fees, the use and disposition of the real property constituting the site of or relating to the housing development or residential housing and other property of such housing sponsor, and the use and disposition of franchises of such housing sponsor to the extent more restrictive limitations are not provided by the law under which such housing sponsor is incorporated or organized. HDA shall require the housing sponsor or person or family of low or moderate income receiving such HDA mortgage loan, or the construction contractor, or both, to furnish such assurances of completion of the construction, rehabilitation or improvement as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.4\n\nAs a condition of any such HDA mortgage loan to a housing sponsor, HDA shall have the power to supervise such housing sponsor in accordance with the provisions of § 36-55.34:1 at all times during which such HDA mortgage loan is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds issued by HDA to finance such HDA mortgage loan.5\n\nWith respect to any such HDA mortgage loan, the provisions of subdivisions 2 and 3 of subsection B of this section shall be applicable.E\n\nMortgage loans made by HDA pursuant to subdivision 13 of \u00a7 36-55.31 to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects or portions thereof and, if any such project is within a revitalization area designated in or pursuant to \u00a7 36-55.30:2, any nonhousing buildings that are incidental to such project or are determined by such governing body of the city or county to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:1\n\nThe principal amount of such an HDA mortgage loan shall not exceed 95 percent of the total housing development costs, and the amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or in the commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years.2\n\nSuch an HDA mortgage loan shall be made only if the provisions of § 36-55.30:2 are satisfied.3\n\nThe instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. The aforesaid mortgage and instrument evidencing an HDA mortgage loan may contain exculpatory provisions relieving a housing sponsor, if any, or its principal or principals from personal liability if deemed desirable by HDA.4\n\nThe nonhousing buildings shall be financed by such an HDA mortgage loan only if the HDA shall receive a certification from the housing sponsor that a mortgage loan for the financing of such nonhousing buildings is not otherwise available from private lenders upon reasonably equivalent terms and conditions.","order_by":null,"text":{"0":{"id":307789,"text":"All mortgage loans made by HDA pursuant to \u00a7 36-55.31 of this chapter shall be subject to the following terms and conditions:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":307790,"text":"The ratio of mortgage loan principal amount to total housing development costs and the amortization period of any mortgage loans made by HDA which are federally insured mortgages, in whole or in part, or which are otherwise assisted or aided, directly or indirectly, by the federal government, shall be governed by the rules and regulations provided in or pursuant to the federal government program under which the HDA mortgage loan or part thereof is insured, guaranteed, assisted or aided; but in no event shall such amortization period exceed 50 years.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":307791,"text":"A mortgage loan made by HDA may be prepaid to maturity after a period of years, and on such terms and conditions, as are determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":307792,"text":"HDA shall have authority to establish and modify from time to time the interest rates at which it shall make mortgage loans and commitments therefor. Such interest rates shall be established by HDA in its sole discretion at the lowest level consistent with HDA’s cost of operation and its responsibilities to the holders of its bonds, bond anticipation notes and other obligations. In addition to such interest charges, HDA may make and collect such fees and charges, including but not limited to reimbursement of HDA’s financing costs, service charges, insurance premiums and mortgage insurance premiums, as HDA determines to be reasonable. No person shall, by way of defense or otherwise, avail himself of any of the provisions of Chapter 3 (§ 6.2-300 et seq.) of Title 6.2 to avoid or defeat the payment of any interest or fee which he shall have contracted to pay on any loan or forbearance of money made, directly or indirectly, or assisted in any manner by HDA under or pursuant to this chapter.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":307793,"text":"Mortgage loans made by HDA 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, pursuant to subdivision (10) of \u00a7 36-55.31, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"5":{"id":307794,"text":"The amount disbursed with respect to an HDA mortgage loan to a limited profit housing sponsor shall not exceed 95 percent of the total housing development costs and to a nonprofit housing sponsor shall not exceed 100 percent of the total housing development costs. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA mortgage loan does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. The amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"6":{"id":307795,"text":"The instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. The aforesaid mortgage and instrument evidencing an HDA mortgage loan may contain exculpatory provisions relieving the housing sponsor or its principal or principals from personal liability if deemed desirable by HDA.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"7":{"id":307796,"text":"With respect to any such HDA mortgage loan made to a limited profit housing sponsor, HDA may require that such limited profit housing sponsor not make distributions in any one year with respect to the housing development or multifamily residential housing financed by such HDA mortgage loan in excess of such percentage of such limited profit housing sponsor’s equity in the housing development or multifamily residential housing as may be determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for such mortgage loan. None of the partners, principals, stockholders or holders of a beneficial interest in such limited profit housing sponsor shall earn, accept or receive a return in any one year with respect to the housing development or multifamily residential housing financed by such HDA mortgage loan greater than his applicable proportion of any such percentage of such limited profit housing sponsor’s equity in the housing development or multifamily residential housing as may be determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan. The right to any such limited distribution or return may be cumulative to the extent provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan. For the purpose of this section, the terms “distribution” and “return” are intended to mean payments on account of the housing development or multifamily residential housing financed by such HDA mortgage loan resulting from the operation thereof. Any payment to a person or entity who is a partner, principal, stockholder or holder of a beneficial interest in such limited profit housing sponsor shall not be deemed a “distribution” or “return” to such person or entity if the funds with which such payment is made are funds paid or contributed to such limited profit housing sponsor by persons or entities purchasing a beneficial interest in such limited profit housing sponsor. At or after the completion of construction, rehabilitation or improvement of the housing development or multifamily residential housing financed by such HDA mortgage loan, such limited profit housing sponsor’s equity in the housing development or multifamily residential housing shall be established in the manner provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for such mortgage loan. Such equity shall be determined by HDA, at its option, as either (i) the difference between the total housing development costs as to the housing development or multifamily residential housing and the final principal amount of such HDA mortgage loan, or (ii) the difference between the fair market value of such housing development and the final principal amount of such HDA mortgage loan. HDA may thereafter from time to time adjust such equity to be equal to the difference, as of the date of adjustment, between the fair market value of such housing development and the outstanding principal balance of such HDA mortgage loan. HDA may review and regulate a proposed retirement of any capital investment in, or redemption of any stock of, such limited profit housing sponsor in the manner provided by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"8":{"id":307797,"text":"With respect to any such HDA mortgage loan, HDA may require the housing sponsor and other parties related to the housing development or multifamily residential housing financed by such HDA mortgage loan to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such housing sponsor and its partners, principals or stockholders to limitations established by HDA as to rentals and other charges, profits, fees, the use and disposition of the real property constituting the site of or relating to the housing development or multifamily residential housing and other property of such housing sponsor, and the use and disposition of franchises of such housing sponsor to the extent more restrictive limitations are not provided by the law under which such housing sponsor is incorporated or organized.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"9":{"id":307798,"text":"As a condition of any such HDA mortgage loan, HDA shall have the power to supervise the housing sponsor in accordance with the provisions of § 36-55.34:1 at all times during which such HDA mortgage loan is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds issued by HDA to finance such HDA mortgage loan.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"10":{"id":307799,"text":"Mortgage loans made by HDA to persons and families of low and moderate income to finance the purchase or refinancing of single-family residential housing, pursuant to subdivision (11) of \u00a7 36-55.31, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"C1"},"11":{"id":307800,"text":"The amount disbursed with respect to such HDA mortgage loan shall not exceed 100 percent of the sales price or market value of the single-family residential housing, as determined or approved by or on behalf of HDA. HDA may also disburse additional amounts to finance such closing costs and fees as it may deem necessary or appropriate, and all such disbursements and financings of closing costs and fees subsequent to the enactment of this chapter are hereby validated. The amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years. If during the term of the HDA mortgage loan (i) the outstanding principal balance of the HDA mortgage loan is expected to increase to an amount in excess of the original principal balance or (ii) the amount of monthly payments on the HDA mortgage loan will or may be adjusted, HDA shall so notify the applicants prior to the execution of the HDA mortgage loan. Such notice shall describe the terms and conditions under which the outstanding principal balance or the amount of monthly payments, or both, may be so increased or adjusted, and such notice shall be signed by the applicants.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"12":{"id":307801,"text":"Such an HDA mortgage loan shall be made only after a determination that such a mortgage loan is not otherwise available from private lenders upon reasonably equivalent terms and conditions, and the HDA resolution authorizing, or commitment for, such mortgage loan shall contain such a determination.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"13":{"id":307802,"text":"The instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. With respect to any such HDA mortgage loan, HDA may require the person or family of low or moderate income to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such person or family of low or moderate income relating to the use, occupancy, maintenance and sale of the single-family residential housing financed by such HDA mortgage loan and the payment, prepayment and assignment of such HDA mortgage loan.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"14":{"id":307803,"text":"Mortgage loans made by HDA to housing sponsors or persons or families of low or moderate income to finance the construction, rehabilitation, preservation or improvement of housing developments or 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, pursuant to subdivision (12) of \u00a7 36-55.31 of this chapter, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"D1"},"15":{"id":307804,"text":"The amount disbursed with respect to such an HDA mortgage loan to a limited profit housing sponsor shall not exceed 95 percent of the total housing development costs and to a nonprofit housing sponsor or a person or family of low or moderate income shall not exceed 100 percent of the total housing development costs. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA mortgage loan does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. Without regard as to whether HDA intends to remain the lender in respect to such mortgage loan throughout the amortization period thereof, the amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"16":{"id":307805,"text":"In considering any application for such an HDA mortgage loan, HDA shall give first priority to applications relating to housing developments or residential housing which are or will be well-planned and well-designed, and also shall give consideration to:\n\t\t\t\ta. The comparative need for housing for persons and families of low and moderate income in the area proposed to be served by the housing development or residential housing;\n\t\t\t\tb. The ability of the applicant to construct, rehabilitate or improve and market or operate, manage and maintain the housing development or residential housing;\n\t\t\t\tc. The existence of zoning or other regulations to protect adequately the housing development or residential housing against detrimental future uses which could cause undue depreciation in the value of the housing development or residential housing;\n\t\t\t\td. The availability of adequate parks, recreational areas, utilities, schools, transportation and parking; and\n\t\t\t\te. The existence of statewide housing plans.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"17":{"id":307806,"text":"With respect to any such HDA mortgage loan, HDA may require the housing sponsor, person or family of low or moderate income, contractors, architects, marketing agents, management agents and other parties related to the housing development or residential housing financed by such HDA mortgage loan to execute such agreements, assurances, guarantees and certifications as HDA shall determine to be necessary including, without limitation, agreements between HDA and such housing sponsor and its partners, principals or stockholders or such person or family of low or moderate income to limitations established by HDA as to rentals and other charges, profits, fees, the use and disposition of the real property constituting the site of or relating to the housing development or residential housing and other property of such housing sponsor, and the use and disposition of franchises of such housing sponsor to the extent more restrictive limitations are not provided by the law under which such housing sponsor is incorporated or organized. HDA shall require the housing sponsor or person or family of low or moderate income receiving such HDA mortgage loan, or the construction contractor, or both, to furnish such assurances of completion of the construction, rehabilitation or improvement as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or commitment for, such mortgage loan.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"18":{"id":307807,"text":"As a condition of any such HDA mortgage loan to a housing sponsor, HDA shall have the power to supervise such housing sponsor in accordance with the provisions of § 36-55.34:1 at all times during which such HDA mortgage loan is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds issued by HDA to finance such HDA mortgage loan.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"19":{"id":307808,"text":"With respect to any such HDA mortgage loan, the provisions of subdivisions 2 and 3 of subsection B of this section shall be applicable.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"E"},"20":{"id":307809,"text":"Mortgage loans made by HDA pursuant to subdivision 13 of \u00a7 36-55.31 to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects or portions thereof and, if any such project is within a revitalization area designated in or pursuant to \u00a7 36-55.30:2, any nonhousing buildings that are incidental to such project or are determined by such governing body of the city or county to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area shall be subject to the following terms and conditions in addition to those contained in subsection A of this section:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D5","next_prefix":"E1"},"21":{"id":307810,"text":"The principal amount of such an HDA mortgage loan shall not exceed 95 percent of the total housing development costs, and the amortization period of such an HDA mortgage loan shall be as determined by HDA in its rules and regulations or in the HDA resolution authorizing, or in the commitment for, such mortgage loan; but in no event shall such amortization period exceed 50 years.","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"22":{"id":307811,"text":"Such an HDA mortgage loan shall be made only if the provisions of § 36-55.30:2 are satisfied.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"23":{"id":307812,"text":"The instrument evidencing any such HDA mortgage loan and the mortgage securing any such HDA mortgage loan shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA. The aforesaid mortgage and instrument evidencing an HDA mortgage loan may contain exculpatory provisions relieving a housing sponsor, if any, or its principal or principals from personal liability if deemed desirable by HDA.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"24":{"id":307813,"text":"The nonhousing buildings shall be financed by such an HDA mortgage loan only if the HDA shall receive a certification from the housing sponsor that a mortgage loan for the financing of such nonhousing buildings is not otherwise available from private lenders upon reasonably equivalent terms and conditions.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/36-55.33:1\/","history_text":"

This law was first created in 1975. The record of its establishment is cataloged in chapter 536 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 1975 \u201cActs\u201d aren\u2019t available online. It has been modified 8 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 1979, chapter 374; in 1982, chapter 176; in 1987, chapter 164; in 1988, chapter 556; in 1989, chapter 161; in 1991, chapter 447; in 2004, chapter 187<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":63704,"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","order_by":null,"url":"\/36-55.31\/"},{"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\/"}],"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":63704,"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","order_by":null,"url":"\/36-55.31\/"},{"id":58416,"section_number":"36-55.34:1","catch_line":"Power to supervise housing sponsors","order_by":null,"url":"\/36-55.34_1\/"},{"id":61230,"section_number":"6.2-300","catch_line":"Definitions","order_by":null,"url":"\/6.2-300\/"}],"permalink":{"id":208677,"object_type":"law","relational_id":85938,"identifier":"36-55.33:1","token":"36\/1.2\/36-55.33_1","url":"\/36-55.33_1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/36-55.33_1\/","token":"36\/1.2\/36-55.33_1","dublin_core":{"Title":"Mortgage loan terms and conditions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 36-55.33:1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> All mortgage loans<\/span> made by HDA<\/span> pursuant to \u00a7 36-55.31<\/a> of this chapter shall be subject to the following terms and conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The ratio of mortgage loan<\/span> principal amount to total housing development costs<\/span> and the amortization period of any mortgage loans<\/span> made by HDA<\/span> which are federally insured mortgages<\/span>, in whole or in part, or which are otherwise assisted or aided, directly or indirectly, by the federal government<\/span>, shall be governed by the rules and regulations provided in or pursuant to the federal government<\/span> program under which the HDA<\/span> mortgage loan<\/span> or part thereof is insured, guaranteed, assisted or aided; but in no event shall such amortization period exceed 50 years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A mortgage loan<\/span> made by HDA<\/span> may be prepaid to maturity after a period of years, and on such terms and conditions, as are determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> HDA<\/span> shall have authority to establish and modify from time to time the interest rates at which it shall make mortgage loans<\/span> and commitments therefor. Such interest rates shall be established by HDA<\/span> in its sole discretion at the lowest level consistent with HDA<\/span>’s cost of operation and its responsibilities to the holders of its bonds<\/span>, bond<\/span> anticipation notes and other obligations<\/span>. In addition to such interest charges, HDA<\/span> may make and collect such fees and charges, including but not limited to reimbursement of HDA<\/span>’s financing costs, service charges, insurance premiums and mortgage insurance premiums, as HDA<\/span> determines to be reasonable. No person shall, by way of defense or otherwise, avail himself of any of the provisions of Chapter 3 (§ 6.2-300<\/a> et seq.) of Title 6.2 to avoid or defeat the payment of any interest or fee which he shall have contracted to pay on any loan or forbearance of money made, directly or indirectly, or assisted in any manner by HDA<\/span> under or pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Mortgage loans<\/span> made by HDA<\/span> 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>, pursuant to subdivision (10) of \u00a7 36-55.31<\/a>, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The amount disbursed with respect to an HDA<\/span> mortgage loan<\/span> to a limited profit housing sponsor<\/span> shall not exceed 95 percent of the total housing development costs<\/span> and to a nonprofit housing sponsor<\/span> shall not exceed 100 percent of the total housing development costs<\/span>. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA<\/span> mortgage loan<\/span> does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. The amortization period of such an HDA<\/span> mortgage loan<\/span> shall be as determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>; but in no event shall such amortization period exceed 50 years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The instrument evidencing any such HDA<\/span> mortgage loan<\/span> and the mortgage securing any such HDA<\/span> mortgage loan<\/span> shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA<\/span>. The aforesaid mortgage and instrument evidencing an HDA<\/span> mortgage loan<\/span> may contain exculpatory provisions relieving the housing sponsor<\/span> or its principal or principals from personal liability if deemed desirable by HDA<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> With respect to any such HDA<\/span> mortgage loan<\/span> made to a limited profit housing sponsor<\/span>, HDA<\/span> may require that such limited profit housing sponsor<\/span> not make distributions<\/span> in any one year with respect to the housing development or multifamily residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span> in excess of such percentage of such limited profit housing sponsor<\/span>’s equity<\/span> in the housing development or multifamily residential housing<\/span> as may be determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for such mortgage loan<\/span>. None of the partners, principals, stockholders or holders of a beneficial interest in such limited profit housing sponsor<\/span> shall earn, accept or receive a return<\/span> in any one year with respect to the housing development or multifamily residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span> greater than his applicable proportion of any such percentage of such limited profit housing sponsor<\/span>’s equity<\/span> in the housing development or multifamily residential housing<\/span> as may be determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. The right to any such limited distribution<\/span> or return<\/span> may be cumulative to the extent provided by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. For the purpose of this section, the terms “distribution<\/span>” and “return<\/span>” are intended to mean payments on account of the housing development or multifamily residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span> resulting from the operation thereof. Any payment to a person or entity who is a partner, principal, stockholder or holder of a beneficial interest in such limited profit housing sponsor<\/span> shall not be deemed a “distribution<\/span>” or “return<\/span>” to such person or entity if the funds with which such payment is made are funds paid or contributed to such limited profit housing sponsor<\/span> by persons or entities purchasing a beneficial interest in such limited profit housing sponsor<\/span>. At or after the completion of construction, rehabilitation or improvement of the housing development or multifamily residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span>, such limited profit housing sponsor<\/span>’s equity<\/span> in the housing development or multifamily residential housing<\/span> shall be established in the manner provided by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for such mortgage loan<\/span>. Such equity<\/span> shall be determined by HDA<\/span>, at its option, as either (i) the difference between the total housing development costs<\/span> as to the housing development or multifamily residential housing<\/span> and the final principal amount of such HDA<\/span> mortgage loan<\/span>, or (ii) the difference between the fair market value of such housing development and the final principal amount of such HDA<\/span> mortgage loan<\/span>. HDA<\/span> may thereafter from time to time adjust such equity<\/span> to be equal to the difference, as of the date of adjustment, between the fair market value of such housing development and the outstanding principal balance of such HDA<\/span> mortgage loan<\/span>. HDA<\/span> may review and regulate a proposed retirement of any capital investment in, or redemption<\/span> of any stock of, such limited profit housing sponsor<\/span> in the manner provided by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> With respect to any such HDA<\/span> mortgage loan<\/span>, HDA<\/span> may require the housing sponsor<\/span> and other parties related to the housing development or multifamily residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span> to execute such agreements, assurances, guarantees and certifications as HDA<\/span> shall determine to be necessary including, without limitation, agreements between HDA<\/span> and such housing sponsor<\/span> and its partners, principals or stockholders to limitations established by HDA<\/span> as to rentals and other charges, profits, fees, the use and disposition<\/span> of the real property<\/span> constituting the site of or relating to the housing development or multifamily residential housing<\/span> and other property of such housing sponsor<\/span>, and the use and disposition<\/span> of franchises of such housing sponsor<\/span> to the extent more restrictive limitations are not provided by the law<\/span> under which such housing sponsor<\/span> is incorporated or organized. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> As a condition of any such HDA<\/span> mortgage loan<\/span>, HDA<\/span> shall have the power to supervise the housing sponsor<\/span> in accordance with the provisions of § 36-55.34:1<\/a> at all times during which such HDA<\/span> mortgage loan<\/span> is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds<\/span> issued by HDA<\/span> to finance such HDA<\/span> mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Mortgage loans<\/span> made by HDA<\/span> to persons and families of low and moderate income<\/span> to finance the purchase or refinancing of single-family residential housing<\/span>, pursuant to subdivision (11) of \u00a7 36-55.31<\/a>, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The amount disbursed with respect to such HDA<\/span> mortgage loan<\/span> shall not exceed 100 percent of the sales price or market value of the single-family residential housing<\/span>, as determined or approved by or on behalf of HDA<\/span>. HDA<\/span> may also disburse additional amounts to finance such closing costs and fees as it may deem necessary or appropriate, and all such disbursements and financings of closing costs and fees subsequent to the enactment of this chapter are hereby validated. The amortization period of such an HDA<\/span> mortgage loan<\/span> shall be as determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>; but in no event shall such amortization period exceed 50 years. If during the term of the HDA<\/span> mortgage loan<\/span> (i) the outstanding principal balance of the HDA<\/span> mortgage loan<\/span> is expected to increase to an amount in excess of the original principal balance or (ii) the amount of monthly payments on the HDA<\/span> mortgage loan<\/span> will or may be adjusted, HDA<\/span> shall so notify the applicants prior to the execution of the HDA<\/span> mortgage loan<\/span>. Such notice shall describe the terms and conditions under which the outstanding principal balance or the amount of monthly payments, or both, may be so increased or adjusted, and such notice shall be signed by the applicants. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such an HDA<\/span> mortgage loan<\/span> shall be made only after a determination that such a mortgage loan<\/span> is not otherwise available from private lenders upon reasonably equivalent terms and conditions, and the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span> shall contain such a determination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The instrument evidencing any such HDA<\/span> mortgage loan<\/span> and the mortgage securing any such HDA<\/span> mortgage loan<\/span> shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA<\/span>. With respect to any such HDA<\/span> mortgage loan<\/span>, HDA<\/span> may require the person or family of low or moderate income to execute such agreements, assurances, guarantees and certifications as HDA<\/span> shall determine to be necessary including, without limitation, agreements between HDA<\/span> and such person or family of low or moderate income relating to the use, occupancy, maintenance and sale of the single-family residential housing<\/span> financed by such HDA<\/span> mortgage loan<\/span> and the payment, prepayment and assignment of such HDA<\/span> mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Mortgage loans<\/span> made by HDA<\/span> to housing sponsors<\/span> or persons or families of low or moderate income to finance the construction, rehabilitation, preservation or improvement of housing developments<\/span> or 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>, pursuant to subdivision (12) of \u00a7 36-55.31<\/a> of this chapter, shall be subject to the following terms and conditions in addition to those contained in subsection A of this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The amount disbursed with respect to such an HDA<\/span> mortgage loan<\/span> to a limited profit housing sponsor<\/span> shall not exceed 95 percent of the total housing development costs<\/span> and to a nonprofit housing sponsor<\/span> or a person or family of low or moderate income shall not exceed 100 percent of the total housing development costs<\/span>. Subsequent to the disbursement of such amount, additional amounts may be from time to time disbursed if the sum of the amount to be so disbursed and the then outstanding principal balance of the HDA<\/span> mortgage loan<\/span> does not exceed 95 percent of the market value of the housing development or residential housing as then determined by the Authority. Without regard as to whether HDA<\/span> intends to remain the lender in respect to such mortgage loan<\/span> throughout the amortization period thereof, the amortization period of such an HDA<\/span> mortgage loan<\/span> shall be as determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In considering any application for such an HDA<\/span> mortgage loan<\/span>, HDA<\/span> shall give first priority to applications relating to housing developments<\/span> or residential housing which are or will be well-planned and well-designed, and also shall give consideration to:\n\t\t\t\ta. The comparative need for housing for persons and families of low and moderate income<\/span> in the area proposed to be served by the housing development or residential housing;\n\t\t\t\tb. The ability of the applicant to construct, rehabilitate or improve and market or operate, manage and maintain the housing development or residential housing;\n\t\t\t\tc. The existence of zoning or other regulations to protect adequately the housing development or residential housing against detrimental future uses which could cause undue depreciation in the value of the housing development or residential housing;\n\t\t\t\td. The availability of adequate parks, recreational areas, utilities, schools, transportation and parking; and\n\t\t\t\te. The existence of statewide housing plans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> With respect to any such HDA<\/span> mortgage loan<\/span>, HDA<\/span> may require the housing sponsor<\/span>, person or family of low or moderate income, contractors, architects, marketing agents, management agents and other parties related to the housing development or residential housing financed by such HDA<\/span> mortgage loan<\/span> to execute such agreements, assurances, guarantees and certifications as HDA<\/span> shall determine to be necessary including, without limitation, agreements between HDA<\/span> and such housing sponsor<\/span> and its partners, principals or stockholders or such person or family of low or moderate income to limitations established by HDA<\/span> as to rentals and other charges, profits, fees, the use and disposition<\/span> of the real property<\/span> constituting the site of or relating to the housing development or residential housing and other property of such housing sponsor<\/span>, and the use and disposition<\/span> of franchises of such housing sponsor<\/span> to the extent more restrictive limitations are not provided by the law<\/span> under which such housing sponsor<\/span> is incorporated or organized. HDA<\/span> shall require the housing sponsor<\/span> or person or family of low or moderate income receiving such HDA<\/span> mortgage loan<\/span>, or the construction contractor, or both, to furnish such assurances of completion of the construction, rehabilitation or improvement as determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or commitment for, such mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> As a condition of any such HDA<\/span> mortgage loan<\/span> to a housing sponsor<\/span>, HDA<\/span> shall have the power to supervise such housing sponsor<\/span> in accordance with the provisions of § 36-55.34:1<\/a> at all times during which such HDA<\/span> mortgage loan<\/span> is outstanding and thereafter as necessary to preserve the federal tax exemption of the notes or bonds<\/span> issued by HDA<\/span> to finance such HDA<\/span> mortgage loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> With respect to any such HDA<\/span> mortgage loan<\/span>, the provisions of subdivisions 2 and 3 of subsection B of this section shall be applicable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Mortgage loans<\/span> made by HDA<\/span> pursuant to subdivision 13 of \u00a7 36-55.31<\/a> to finance the construction, rehabilitation, preservation or improvement, or ownership and operation, of economically mixed projects<\/span> or portions thereof and, if any such project is within a revitalization area designated in or pursuant to \u00a7 36-55.30:2<\/a>, any nonhousing buildings<\/span> that are incidental to such project or are determined by such governing body of the city<\/span> or county<\/span> to be necessary or appropriate for the revitalization of such area or for the industrial, commercial or other economic development of such area shall be subject to the following terms and conditions in addition to those contained in subsection A of this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The principal amount of such an HDA<\/span> mortgage loan<\/span> shall not exceed 95 percent of the total housing development costs<\/span>, and the amortization period of such an HDA<\/span> mortgage loan<\/span> shall be as determined by HDA<\/span> in its rules and regulations or in the HDA<\/span> resolution authorizing, or in the commitment for, such mortgage loan<\/span>; but in no event shall such amortization period exceed 50 years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such an HDA<\/span> mortgage loan<\/span> shall be made only if the provisions of § 36-55.30:2<\/a> are satisfied. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The instrument evidencing any such HDA<\/span> mortgage loan<\/span> and the mortgage securing any such HDA<\/span> mortgage loan<\/span> shall be in such form and contain such terms and conditions as shall be prescribed or approved by HDA<\/span>. The aforesaid mortgage and instrument evidencing an HDA<\/span> mortgage loan<\/span> may contain exculpatory provisions relieving a housing sponsor<\/span>, if any, or its principal or principals from personal liability if deemed desirable by HDA<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The nonhousing buildings<\/span> shall be financed by such an HDA<\/span> mortgage loan<\/span> only if the HDA<\/span> shall receive a certification from the housing sponsor<\/span> that a mortgage loan<\/span> for the financing of such nonhousing buildings<\/span> is not otherwise available from private lenders upon reasonably equivalent terms and conditions. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMORTGAGE LOAN TERMS AND CONDITIONS (\u00a7 36-55.33:1)\n\nA. All mortgage loans made by HDA pursuant to \u00a7 36-55.31 of this chapter shall\nbe subject to the following terms and conditions:\n\n 1. The ratio of mortgage loan principal amount to total housing development\n costs and the amortization period of any mortgage loans made by HDA which are\n federally insured mortgages, in whole or in part, or which are otherwise\n assisted or aided, directly or indirectly, by the federal government, shall be\n governed by the rules and regulations provided in or pursuant to the federal\n government program under which the HDA mortgage loan or part thereof is\n insured, guaranteed, assisted or aided; but in no event shall such\n amortization period exceed 50 years.\n\n 2. A mortgage loan made by HDA may be prepaid to maturity after a period of\n years, and on such terms and conditions, as are determined by HDA in its rules\n and regulations or in the HDA resolution authorizing, or commitment for, such\n mortgage loan.\n\n 3. HDA shall have authority to establish and modify from time to time the\n interest rates at which it shall make mortgage loans and commitments therefor.\n Such interest rates shall be established by HDA in its sole discretion at the\n lowest level consistent with HDA’s cost of operation and its\n responsibilities to the holders of its bonds, bond anticipation notes and\n other obligations. In addition to such interest charges, HDA may make and\n collect such fees and charges, including but not limited to reimbursement of\n HDA’s financing costs, service charges, insurance premiums and mortgage\n insurance premiums, as HDA determines to be reasonable. No person shall, by\n way of defense or otherwise, avail himself of any of the provisions of Chapter\n 3 (§ 6.2-300 et seq.) of Title 6.2 to avoid or defeat the payment of any\n interest or fee which he shall have contracted to pay on any loan or\n forbearance of money made, directly or indirectly, or assisted in any manner\n by HDA under or pursuant to this chapter.\n\nB. Mortgage loans made by HDA to housing sponsors to finance the ownership and\noperation of housing developments and multifamily residential housing intended\nfor occupancy by persons and families of low and moderate income, pursuant to\nsubdivision (10) of \u00a7 36-55.31, shall be subject to the following terms and\nconditions in addition to those contained in subsection A of this section:\n\n 1. The amount disbursed with respect to an HDA mortgage loan to a limited\n profit housing sponsor shall not exceed 95 percent of the total housing\n development costs and to a nonprofit housing sponsor shall not exceed 100\n percent of the total housing development costs. Subsequent to the disbursement\n of such amount, additional amounts may be from time to time disbursed if the\n sum of the amount to be so disbursed and the then outstanding principal\n balance of the HDA mortgage loan does not exceed 95 percent of the market\n value of the housing development or residential housing as then determined by\n the Authority. The amortization period of such an HDA mortgage loan shall be\n as determined by HDA in its rules and regulations or in the HDA resolution\n authorizing, or commitment for, such mortgage loan; but in no event shall such\n amortization period exceed 50 years.\n\n 2. The instrument evidencing any such HDA mortgage loan and the mortgage\n securing any such HDA mortgage loan shall be in such form and contain such\n terms and conditions as shall be prescribed or approved by HDA. The aforesaid\n mortgage and instrument evidencing an HDA mortgage loan may contain\n exculpatory provisions relieving the housing sponsor or its principal or\n principals from personal liability if deemed desirable by HDA.\n\n 3. With respect to any such HDA mortgage loan made to a limited profit housing\n sponsor, HDA may require that such limited profit housing sponsor not make\n distributions in any one year with respect to the housing development or\n multifamily residential housing financed by such HDA mortgage loan in excess\n of such percentage of such limited profit housing sponsor’s equity in\n the housing development or multifamily residential housing as may be\n determined by HDA in its rules and regulations or in the HDA resolution\n authorizing, or commitment for such mortgage loan. None of the partners,\n principals, stockholders or holders of a beneficial interest in such limited\n profit housing sponsor shall earn, accept or receive a return in any one year\n with respect to the housing development or multifamily residential housing\n financed by such HDA mortgage loan greater than his applicable proportion of\n any such percentage of such limited profit housing sponsor’s equity in\n the housing development or multifamily residential housing as may be\n determined by HDA in its rules and regulations or in the HDA resolution\n authorizing, or commitment for, such mortgage loan. The right to any such\n limited distribution or return may be cumulative to the extent provided by HDA\n in its rules and regulations or in the HDA resolution authorizing, or\n commitment for, such mortgage loan. For the purpose of this section, the terms\n “distribution” and “return” are intended to mean\n payments on account of the housing development or multifamily residential\n housing financed by such HDA mortgage loan resulting from the operation\n thereof. Any payment to a person or entity who is a partner, principal,\n stockholder or holder of a beneficial interest in such limited profit housing\n sponsor shall not be deemed a “distribution” or\n “return” to such person or entity if the funds with which such\n payment is made are funds paid or contributed to such limited profit housing\n sponsor by persons or entities purchasing a beneficial interest in such\n limited profit housing sponsor. At or after the completion of construction,\n rehabilitation or improvement of the housing development or multifamily\n residential housing financed by such HDA mortgage loan, such limited profit\n housing sponsor’s equity in the housing development or multifamily\n residential housing shall be established in the manner provided by HDA in its\n rules and regulations or in the HDA resolution authorizing, or commitment for\n such mortgage loan. Such equity shall be determined by HDA, at its option, as\n either (i) the difference between the total housing development costs as to\n the housing development or multifamily residential housing and the final\n principal amount of such HDA mortgage loan, or (ii) the difference between the\n fair market value of such housing development and the final principal amount\n of such HDA mortgage loan. HDA may thereafter from time to time adjust such\n equity to be equal to the difference, as of the date of adjustment, between\n the fair market value of such housing development and the outstanding\n principal balance of such HDA mortgage loan. HDA may review and regulate a\n proposed retirement of any capital investment in, or redemption of any stock\n of, such limited profit housing sponsor in the manner provided by HDA in its\n rules and regulations or in the HDA resolution authorizing, or commitment for,\n such mortgage loan.\n\n 4. With respect to any such HDA mortgage loan, HDA may require the housing\n sponsor and other parties related to the housing development or multifamily\n residential housing financed by such HDA mortgage loan to execute such\n agreements, assurances, guarantees and certifications as HDA shall determine\n to be necessary including, without limitation, agreements between HDA and such\n housing sponsor and its partners, principals or stockholders to limitations\n established by HDA as to rentals and other charges, profits, fees, the use and\n disposition of the real property constituting the site of or relating to the\n housing development or multifamily residential housing and other property of\n such housing sponsor, and the use and disposition of franchises of such\n housing sponsor to the extent more restrictive limitations are not provided by\n the law under which such housing sponsor is incorporated or organized.\n\n 5. As a condition of any such HDA mortgage loan, HDA shall have the power to\n supervise the housing sponsor in accordance with the provisions of §\n 36-55.34:1 at all times during which such HDA mortgage loan is outstanding and\n thereafter as necessary to preserve the federal tax exemption of the notes or\n bonds issued by HDA to finance such HDA mortgage loan.\n\nC. Mortgage loans made by HDA to persons and families of low and moderate income\nto finance the purchase or refinancing of single-family residential housing,\npursuant to subdivision (11) of \u00a7 36-55.31, shall be subject to the following\nterms and conditions in addition to those contained in subsection A of this\nsection:\n\n 1. The amount disbursed with respect to such HDA mortgage loan shall not\n exceed 100 percent of the sales price or market value of the single-family\n residential housing, as determined or approved by or on behalf of HDA. HDA may\n also disburse additional amounts to finance such closing costs and fees as it\n may deem necessary or appropriate, and all such disbursements and financings\n of closing costs and fees subsequent to the enactment of this chapter are\n hereby validated. The amortization period of such an HDA mortgage loan shall\n be as determined by HDA in its rules and regulations or in the HDA resolution\n authorizing, or commitment for, such mortgage loan; but in no event shall such\n amortization period exceed 50 years. If during the term of the HDA mortgage\n loan (i) the outstanding principal balance of the HDA mortgage loan is\n expected to increase to an amount in excess of the original principal balance\n or (ii) the amount of monthly payments on the HDA mortgage loan will or may be\n adjusted, HDA shall so notify the applicants prior to the execution of the HDA\n mortgage loan. Such notice shall describe the terms and conditions under which\n the outstanding principal balance or the amount of monthly payments, or both,\n may be so increased or adjusted, and such notice shall be signed by the\n applicants.\n\n 2. Such an HDA mortgage loan shall be made only after a determination that\n such a mortgage loan is not otherwise available from private lenders upon\n reasonably equivalent terms and conditions, and the HDA resolution\n authorizing, or commitment for, such mortgage loan shall contain such a\n determination.\n\n 3. The instrument evidencing any such HDA mortgage loan and the mortgage\n securing any such HDA mortgage loan shall be in such form and contain such\n terms and conditions as shall be prescribed or approved by HDA. With respect\n to any such HDA mortgage loan, HDA may require the person or family of low or\n moderate income to execute such agreements, assurances, guarantees and\n certifications as HDA shall determine to be necessary including, without\n limitation, agreements between HDA and such person or family of low or\n moderate income relating to the use, occupancy, maintenance and sale of the\n single-family residential housing financed by such HDA mortgage loan and the\n payment, prepayment and assignment of such HDA mortgage loan.\n\nD. Mortgage loans made by HDA to housing sponsors or persons or families of low\nor moderate income to finance the construction, rehabilitation, preservation or\nimprovement of housing developments or residential housing intended, upon\ncompletion of such construction, rehabilitation, preservation or improvement,\nfor ownership or occupancy by persons and families of low and moderate income,\npursuant to subdivision (12) of \u00a7 36-55.31 of this chapter, shall be subject to\nthe following terms and conditions in addition to those contained in subsection\nA of this section:\n\n 1. The amount disbursed with respect to such an HDA mortgage loan to a limited\n profit housing sponsor shall not exceed 95 percent of the total housing\n development costs and to a nonprofit housing sponsor or a person or family of\n low or moderate income shall not exceed 100 percent of the total housing\n development costs. Subsequent to the disbursement of such amount, additional\n amounts may be from time to time disbursed if the sum of the amount to be so\n disbursed and the then outstanding principal balance of the HDA mortgage loan\n does not exceed 95 percent of the market value of the housing development or\n residential housing as then determined by the Authority. Without regard as to\n whether HDA intends to remain the lender in respect to such mortgage loan\n throughout the amortization period thereof, the amortization period of such an\n HDA mortgage loan shall be as determined by HDA in its rules and regulations\n or in the HDA resolution authorizing, or commitment for, such mortgage loan.\n\n 2. In considering any application for such an HDA mortgage loan, HDA shall\n give first priority to applications relating to housing developments or\n residential housing which are or will be well-planned and well-designed, and\n also shall give consideration to:\n \t\t\t\ta. The comparative need for housing for persons and families of low and\n moderate income in the area proposed to be served by the housing development\n or residential housing;\n \t\t\t\tb. The ability of the applicant to construct, rehabilitate or improve and\n market or operate, manage and maintain the housing development or residential\n housing;\n \t\t\t\tc. The existence of zoning or other regulations to protect adequately the\n housing development or residential housing against detrimental future uses\n which could cause undue depreciation in the value of the housing development\n or residential housing;\n \t\t\t\td. The availability of adequate parks, recreational areas, utilities,\n schools, transportation and parking; and\n \t\t\t\te. The existence of statewide housing plans.\n\n 3. With respect to any such HDA mortgage loan, HDA may require the housing\n sponsor, person or family of low or moderate income, contractors, architects,\n marketing agents, management agents and other parties related to the housing\n development or residential housing financed by such HDA mortgage loan to\n execute such agreements, assurances, guarantees and certifications as HDA\n shall determine to be necessary including, without limitation, agreements\n between HDA and such housing sponsor and its partners, principals or\n stockholders or such person or family of low or moderate income to limitations\n established by HDA as to rentals and other charges, profits, fees, the use and\n disposition of the real property constituting the site of or relating to the\n housing development or residential housing and other property of such housing\n sponsor, and the use and disposition of franchises of such housing sponsor to\n the extent more restrictive limitations are not provided by the law under\n which such housing sponsor is incorporated or organized. HDA shall require the\n housing sponsor or person or family of low or moderate income receiving such\n HDA mortgage loan, or the construction contractor, or both, to furnish such\n assurances of completion of the construction, rehabilitation or improvement as\n determined by HDA in its rules and regulations or in the HDA resolution\n authorizing, or commitment for, such mortgage loan.\n\n 4. As a condition of any such HDA mortgage loan to a housing sponsor, HDA\n shall have the power to supervise such housing sponsor in accordance with the\n provisions of § 36-55.34:1 at all times during which such HDA mortgage\n loan is outstanding and thereafter as necessary to preserve the federal tax\n exemption of the notes or bonds issued by HDA to finance such HDA mortgage\n loan.\n\n 5. With respect to any such HDA mortgage loan, the provisions of subdivisions\n 2 and 3 of subsection B of this section shall be applicable.\n\nE. Mortgage loans made by HDA pursuant to subdivision 13 of \u00a7 36-55.31 to\nfinance the construction, rehabilitation, preservation or improvement, or\nownership and operation, of economically mixed projects or portions thereof and,\nif any such project is within a revitalization area designated in or pursuant to\n\u00a7 36-55.30:2, any nonhousing buildings that are incidental to such project or\nare determined by such governing body of the city or county to be necessary or\nappropriate for the revitalization of such area or for the industrial,\ncommercial or other economic development of such area shall be subject to the\nfollowing terms and conditions in addition to those contained in subsection A of\nthis section:\n\n 1. The principal amount of such an HDA mortgage loan shall not exceed 95\n percent of the total housing development costs, and the amortization period of\n such an HDA mortgage loan shall be as determined by HDA in its rules and\n regulations or in the HDA resolution authorizing, or in the commitment for,\n such mortgage loan; but in no event shall such amortization period exceed 50\n years.\n\n 2. Such an HDA mortgage loan shall be made only if the provisions of §\n 36-55.30:2 are satisfied.\n\n 3. The instrument evidencing any such HDA mortgage loan and the mortgage\n securing any such HDA mortgage loan shall be in such form and contain such\n terms and conditions as shall be prescribed or approved by HDA. The aforesaid\n mortgage and instrument evidencing an HDA mortgage loan may contain\n exculpatory provisions relieving a housing sponsor, if any, or its principal\n or principals from personal liability if deemed desirable by HDA.\n\n 4. The nonhousing buildings shall be financed by such an HDA mortgage loan\n only if the HDA shall receive a certification from the housing sponsor that a\n mortgage loan for the financing of such nonhousing buildings is not otherwise\n available from private lenders upon reasonably equivalent terms and\n conditions.\n\nHISTORY: 1975, c. 536; 1979, c. 374; 1982, c. 176; 1987, c. 164; 1988, c. 556;\n1989, c. 161; 1991, c. 447; 2004, c. 187; 2010, c. 794.","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}}