Section 125.133. Determinations of feasibility and authorization of loans.

(1) The authority shall review the analysis and recommendation for applications for a determination that a proposed housing project is feasible and applications for development fund loans in the principal amount of $250,000 or more, and, if it determines that  the  application  meets  the

requirements of the act and these rules and is consistent with the authority's processing and under-writing procedures and guidelines,  by resolution, the authority may determine that the proposed housing project is a feasible housing project or authorize a devel-opment  fund  loan  to  the applicant, or both.

(2)       For applications for a determination that a proposed housing project is feasible, the resolution shall include all of the following determinations by the authority :

(a)       The proposed housing project will provide housing for persons of low and moderate income or will serve and improve the residential area in which author-ity financed housing is located or is planned to be located  thereby enhancing the viability of such housing.

(b)       The applicant is reasonably expected to be able to achieve successful com- pletion of the proposed housing project.

(c)     The proposed housing project will meet a social need in the  area  in which it is to be located.

(d)        A mortgage loan, or a mortgage loan not made by the authority that is a federally-aided mortgage, can reasonably be anticipated to be obtained to pro-vide financing for the proposed housing project.

(e)     The proposed housing project is a feasible housing project.

(3)         For   applications  for  development   fund  loans  in  the  principal  amount     of

$250,000 or more, the    resolution shall include the following    determinations by the authority:

(a)     The applicant is an applicant authorized by the act to receive  a development fund loan.

(b)       The applicant shall use the loan funds in planning for or implementing any activi-ties permitted in the act.

(c)     The applicant is reasonably expected  to  be  able  to  successfully imple-ment the proposal.

(d)     The authority reasonably anticipates that the applicant will receive an authority- aided or a federally-aided mortgage loan, to be obtained to provide financing for the proposed housing project.

(e)     The development fund loan can reasonably be anticipated to be repaid from the proceeds of the authority-aided or a federally-aided mortgage loan.

(4)      The resolution may include such conditions as the authority considers appro- priate with respect to an application for a mortgage loan as to such feasible housing project or the use, disbursement,  and  repayment  of  the devel-opment fund loan.

History: 1979 AC; 1998-2000 AACS.