                                 CODE OF VIRGINIA

POWERS RELATIVE TO MAKING MORTGAGE LOANS AND TEMPORARY CONSTRUCTION LOANS TO
HOUSING SPONSORS AND PERSONS AND FAMILIES OF LOW AND MODERATE INCOME (§
36-55.31)

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:

1. through (3) [Repealed.]

4. Enter into agreements and contracts with housing sponsors under the
provisions of this section;

5. 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.
			The 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. 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.
			Subject 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. 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&#8217; 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. 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;

9. Foreclose under deeds of trust by powers of sale pursuant to Title 55.1 and
amendments thereto;

10. 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 &#xA7; 36-55.33:1;

11. 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 &#xA7; 36-55.33:1;

12. 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 &#xA7; 36-55.33:1;

13. 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
&#xA7; 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 &#xA7; 36-55.33:1.

HISTORY: 1972, c. 830; 1975, c. 536; 1979, c. 374; 2004, c. 187.