New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4227 - Child Care Facilities Construction Program
Section 4227.6 - Child care construction revolving loans

Current through Register Vol. 44, No. 38, September 21, 2022

A proposed project shall be eligible for assistance from the corporation in the form of a child care construction revolving loan, provided that:

(a) Eligible project. The proposed project constitutes an eligible project.

(b) Eligible recipient. The applicant for assistance from the corporation shall be an eligible recipient.

(c) Eligible costs. The child care revolving loan shall be used only for the design, construction, improvement or renovation of a child day care center.

(d) Construction and permanent financing. The child care revolving loan shall be used for either construction or permanent financing of eligible costs of an eligible project.

(e) Levels of funding. The maximum amount of assistance from the corporation in the form of a child care construction revolving loan shall not exceed the following:

(1) eighty percent of total project costs, in the case of eligible projects located in highly distressed communities;

(2) sixty-five percent of total project costs, in the case of eligible projects located in economically distressed areas; and

(3) fifty percent of total project costs, in the case of eligible projects that are located in areas that are neither highly distressed nor economically distressed areas.

(f) Terms. Child care construction loans shall be made on the following terms:

(1) Child care construction revolving loans made to provide permanent financing for an eligible project will be preferred. Child care construction revolving loans approved by the corporation for construction financing will not be funded before the applicant has obtained firm commitments for permanent financing.

(2) For each child care construction revolving loan, the directors will determine the applicable interest rate, term, and the required collateral therefor. Such terms shall be designed to facilitate the relative project and will take into consideration all factors relative to the project including, without limitations, prevailing market conditions and the applicant's ability to repay.

(3) The term of a child care construction revolving loan will be further determined in accordance with the following guidelines:
(i) child care construction revolving loans made to provide permanent financing and secured by real property may have a term of up to, but not in excess of, 20 years. In cases where the real property is encumbered by a co-equal mortgage in favor of another lender, the mortgage granted to the corporation will not exceed the term of such other mortgage;

(ii) child care construction revolving loans secured by machinery and equipment may be made for a term of up to, but not in excess of, seven years, or the useful life of the collateral, whichever is less; and

(iii) child care construction revolving loans made to provide construction financing may be made for a term of up to, but not in excess of, two years, irrespective of any collateral pledged therefor.

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