Administrative Code

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

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.

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