Alaska Administrative Code
Title 15 - Revenue
Chapter 151 - AHFC General Programs
Article 5 - Senior Housing Program
15 AAC 151.419 - Construction loans
Universal Citation: 15 AK Admin Code 15 AAC 151.419
Current through February 27, 2024
(a) The Corporation will consider involvement in construction lending for multi-family, special needs, and congregate housing only as a last alternative and if, in its opinion, the risk to the Corporation has been mitigated to the greatest degree possible.
(b) In determining the feasibility of a construction loan under this section, the Corporation will review the following:
(1) mitigating project
characteristics, such as:
(A) limited land
development. The Corporation will not participate in a construction loan, if in
its opinion, extensive land development is involved, such as, but not limited
to, installing or constructing nonresidential improvements, including water,
sewer, and other utilities, roads, streets, curbs, gutters, sidewalks, storm
drainage facilities, and other installations or works that are necessary to
prepare the land primarily for residential housing construction;
(B) suitable land characteristics - minimal
unknowns that could affect construction, such as water table depths, permafrost
and wetlands;
(C) mainstream type
of structures which are tried and proven, and
(D) mainstream type of construction which is
not on the edge of construction technology.
(2) the financial capacity of the borrower,
developer, contractor and other parties, if applicable; and
(3) the experience of the borrower,
developer, contractor, architect, engineer and other parties, if
applicable.
(c) If the Corporation determines that involvement in a construction loan is feasible, then the extent of the Corporation's participation will be based on the following:
(1) there must be a lead lender
which is acceptable to the Corporation. In determining the acceptability of the
lead lender, the Corporation will consider, at a minimum, the following:
(A) its financial capacity;
(B) its experience in construction
lending;
(C) its account officer's
experience in construction lending;
(D) its construction policies and procedures;
and
(E) its regulatory
limitations;
(2) the
Corporation's maximum participation shall not exceed the lesser of 33% of the
loan amount or $5,000,000;
(3) the
Corporation's participation is either on a pro-rata basis or the last in;
and
(4) lead lender's justification
as to why the Corporation's participation is required and as a last alternative
to assure construction of the project.
Authority:AS 18.56.088
AS 18.56.090
AS 18.56.099
AS 18.56.730
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