Section 15.152.025. Turnkey III home purchase program.

	(a)  A pilot program to provide financing for the purchase of Turnkey III homes is established. In this section, "Turnkey III homes" means those dwellings developed under the HUD Homeownership Opportunities Program for Low-Income Families (24 C.F.R. 804.101 - 804.121).  
	(b)  In any fiscal year, the Corporation will not finance more than 30 Turnkey III homes.  
	(c)  The executive director may allow a purchaser of a Turnkey III home to apply the assets of a reserve account established by the borrower under the Turnkey III program, such as the Earned Home Payment Account (24 C.F.R. 804.110) or the Nonroutine Maintenance Reserve (24 C.F.R. 804.111), toward satisfaction of the principal amounts or loan-to-value ratio requirements established under AS 18.56.440 or toward payment of other costs in the transaction. However, the executive director shall require each purchaser of a Turnkey III home to demonstrate, to the satisfaction of the executive director, an ability to repay the loan.  
	(d)  If the Corporation originates or purchases a loan for the purchase or renovation of a Turnkey III home, any security interest of a regional housing authority, as established under the terms of the promissory note required by 24 C.F.R. 804.114, must be subordinate to the security interest of the Corporation.  
	(e)  The Corporation may not finance the same property more than one time within the first five-year period of a loan made under this section.  

Authorities

18.56.088;18.56.400

Notes

Authority

AS 18.56.088 AS 18.56.400

History

Eff. 5/7/93, Register 130