Current through Register Vol. 46, No. 12, March 20, 2024
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.
