Alaska Administrative Code
Title 15 - Revenue
Chapter 151 - AHFC General Programs
Article 7 - Miscellaneous Loan Programs
15 AAC 151.670 - Loans-to-sponsors program
Current through February 27, 2024
(a) The Corporation will, in its discretion and in accordance with and subject to the provisions of this section, make loans to sponsors as described in this section. A sponsor may use the proceeds of a loan made under this section only for the purpose of:
(b) The Corporation will make a loan under 15 AAC 151.670(a) only to a non-profit corporation, a regional housing authority, an agency of the state or of a municipality in the state, or a municipality in the state.
(c) Before making a loan to a sponsor under this section, the Corporation will review the sponsor's application, proposed program, collateral, and other factors the Corporation considers relevant. The principal amount of a loan under this section will not exceed the amount the Corporation considers to represent an acceptable risk taking into consideration the factors mentioned in the preceding sentence.
(d) The Corporation will establish the term of a loan made under this section to a sponsor after discussing the loan with the sponsor and after taking into consideration the factors described in 15 AAC 151.670(c), but in no event will the Corporation permit the term to exceed 35 years.
(e) The Corporation will establish the interest rate applicable to a loan made under this section to a sponsor based on factors the Corporation considers relevant, including, but not limited to, the source of money to the Corporation to provide funding for the loan and the size of the loan.
(f) the Corporation will establish collateral requirements with respect to a loan made under this section to a sponsor and will, in its discretion, require the sponsor to obtain collateral in connection with loans made by the sponsor using proceeds of the loan made by the Corporation to the sponsor, taking into consideration the factors described in 15 AAC 151.670(c) and taking into consideration the size of the loan to the sponsor and the size of the loans to be made by the sponsor pursuant to its program. If and to the extent that the Corporation requires collateral as described in this subsection, the Corporation will, in its discretion, require a deed of trust with respect to real property, an assignment of the deeds of trust obtained by the sponsor in connection with loans made by the sponsor under its program, an assignment of other security documents obtained by the sponsor in connection with loans made by the sponsor under its program, a guarantee of the sponsor, an assignment of guarantees obtained by the sponsor in connection with loans made by the sponsor, or other forms of collateral which the corporation considers appropriate under the circumstances. If the Corporation requires collateral as described in this subsection, before the Corporation makes a loan under this section to the sponsor, the sponsor must, at the discretion of the Corporation, have available evidence satisfactory to the Corporation of title, fire, extended coverage, vandalism, optional perils, and other forms of insurance relating to the collateral as required by the Corporation in amounts acceptable to the Corporation or evidence satisfactory to the Corporation that the sponsor's program adequately provides for obtaining insurance as described in this sentence.
(g) The Corporation will not make a loan to a sponsor under this section unless the sponsor demonstrates to the satisfaction of the Corporation that:
(h) To obtain a loan under this section, a sponsor must submit an application to the Corporation. The application must be in writing signed by an authorized officer of the sponsor and must include a loan summary; financial statements of the sponsor and, if applicable, of any guarantor of the loan, including a statement of revenues and expenditures or a similar statement, for the then current and three preceding years, with the financial statements and statement of revenues and expenditures or similar statement for the then current year dated four months or less from the date of application; resumes of key personnel; evidence satisfactory to the Corporation of the sponsor's legal ability to enter into the necessary loan documents and to provide the necessary collateral in connection with a loan under this section, including, as appropriate, but not limited to, a copy of the charter or articles of incorporation of the sponsor, a copy of applicable ordinances, regulations, or bylaws of the sponsor, and an opinion of counsel of the sponsor to the effect that entering into the proposed loan transaction is within the power of the sponsor and will not conflict with or violate any laws or outstanding contracts to which the sponsor is a party; and other information considered necessary by the Corporation to evaluate the application.
(i) The sponsor, upon approval of the Corporation, may be reimbursed for its justifiable reasonable costs of administering its program through a servicing fee approved by the Corporation and paid by the sponsor's borrowers.
(j) The Corporation will, in its discretion, enter into a commitment agreement to make a loan under this section. The maximum commitment period that the Corporation will permit is 18 months. The Corporation will, in its discretion, permit an extension of its commitment for up to 120 days to make a loan if it receives an application showing good cause and receipt of a fee as described in 15 AAC 151.670(k) (4).
(k) The Corporation will charge fees under this section as follows:
for the first $1,000,000 .50%
the next $ 4,000,000 .375%
the next $10,000,000 .25%
amount over $15,000,000 .125%
(l) All loans made under this program require approval of the board of directors.
(m) In this section, "persons of lower and moderate income" means persons earning 100% or less of area median income as established annually by HUD and as adjusted for family size. Sponsors may dispute HUD's income determination by providing area census or other reliable studies to substantiate a higher median income for the area.
Authority:AS 18.56.088
AS 18.56.090(b)(1)