Section 15.151.435. Loan guidelines.

	(a)  The corporation will not make, participate in the making, purchase, or participate in the purchasing of a loan under 15 AAC 151.400 - 15 AAC 151.440 unless the corporation determines that the following conditions have been met:  
		(1) the loan meets the requirements of 15 AAC 150.080 or (3) of this subsection;  
		(2) the loan meets the requirements of 15 AAC 151.500 - 15 AAC 151.542 and (3) of this subsection; or  
		(3) the loan does not meet the requirements of (1) or (2) of this subsection but the loan proceeds will be used to finance amenities above the value of the real estate, and  
			(A) a covenant encumbers the real estate securing the loan that complies with the requirements of (c) of this section; and  
			(B) the application for a loan under this program is made by directly contacting the corporation.  
	(b)  Repealed 5/16/2012.  
	(c)  A covenant described in (a)(3)(A) of this section must satisfy the following requirements:  
		(1) for a senior housing project, the covenant must remain in effect, at a minimum, for 30 years or for the term of the senior housing loan, whichever is greater; and  
		(2) unless the covenant is waived by the Corporation, for single-family, duplex, triplex, or four-plex senior housing, the covenant must remain in effect for the term of the senior housing loan.  
	(d)  If the borrower is under economic hardship that is tied directly to the borrower's inability to repay the loan, the borrower may request that the Corporation agree to modify the covenant described in 15 AAC 151.435(c). In consideration of the information provided, the Corporation will make a decision that is in the best interest of the Corporation. A request under this subsection must:  
		(1) be in writing and specifically describe the economic hardship requiring the modification;  
		(2) be accompanied by specific financial and market information supporting the borrower's request;  
		(3) provide any other information and reasons in support of the request; and  
		(4) provide proposed solutions to alleviate the economic hardship of the borrower.  
	(e)  The corporation may modify the requirements set out in this section for any specific loan if it determines additional credit enhancements have been added which more than offset any potential increased risk to the corporation.  
	(f)  The corporation may not require an appraisal report for a loan under (a)(3) of this section.  

Authorities

18.56.088;18.56.090;18.56.099;18.56.730;18.56.760

Notes

Reference

15 AAC 151.412
15 AAC 151.435
15 AAC 151.440

Authority

AS 18.56.088 AS 18.56.090 AS 18.56.099 AS 18.56.730 AS 18.56.760 Editor's note: Even though the amendment of 15 AAC 151.435(a) was effective 5/16/2012, it was not published until Register 204, January 2013.

History

Eff. 5/7/93, Register 130; am 5/16/2012, Register 204

References

15.151.435