LIS

Virginia Law

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
Chapter 30. Rules and Regulations for Single Family Housing Developments
11/21/2024

13VAC10-30-30. Terms of mortgage loans.

The term of the mortgage loan shall be equal to the period determined by the executive director to be necessary to complete construction of the development and to sell and convey the housing units to persons and families of low and moderate income, but in no event shall such period exceed five years.

Mortgage loans may be made in amounts not to exceed the lesser of the maximum principal amount specified in the mortgage loan commitment or such percentage of the estimated housing development costs of the development as is established in such commitment, but in no event shall such percentage exceed 95% in the case of for-profit housing sponsors and 100% in the case of nonprofit housing sponsors.

In determining the estimated total development costs, the categories of costs which shall be includable therein shall be those set forth in the authority's rules and regulations for multi-family housing developments (including a reasonable profit to the mortgagor), to the extent deemed by the executive director to be applicable to the development, and such other costs as the executive director shall deem reasonable and necessary for the sale and conveyance of the units in the proposed development.

The maximum principal amount and percentage of estimated housing development costs specified or established in the mortgage loan commitment shall be determined by the authority in such manner and based upon such factors as it deems relevant to the security of the mortgage loan and the fulfillment of its public purpose.

The board may establish from time to time maximum sales prices which will be applicable to units financed hereunder; provided, that the board may establish, in the resolution authorizing any mortgage loan to finance a development under these rules and regulations, lower maximum sales prices for the units in such development.

The interest rate on the mortgage loan shall be established at the initial closing and may be thereafter adjusted in accordance with the authority's rules and regulations and the terms of the deed of trust note. The authority shall charge a nonrefundable processing fee of $500 and a financing fee equal to 1-½% (less the $500 processing fee) of the mortgage loan amount, unless the executive director shall for good cause require the payment of a different processing or financing fee. Such fee shall be payable at such times as hereinafter provided or at such other times as the executive director shall for good cause require.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0002 § 3, eff. July 1, 1989.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.