In accordance with Chapter 86 of Title 29, there is created in the Executive Department a public corporation of perpetual
duration to be called the "Delaware State Housing Authority," hereinafter referred to as "DSHA." Chapter 43 of this title
shall apply to DSHA and to its projects as fully as such provisions apply to a housing authority created by § 4303 of this
title and to its housing projects; provided however, that DSHA shall not be subject to §§ 4303, 4304, 4306, 4307, 4314 and
4317 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4011. DSHA to contract for labor or materials.
DSHA shall contract for labor or materials (except labor or materials used in the maintenance or operation of projects) pursuant
to the manner prescribed in Chapter 69 of Title 29, for departments and other agencies of the state government.
71 Del. Laws, c. 357, § 6.;
§ 4012. Seal of DSHA.
DSHA shall have a corporate seal in the form of a circle bearing the arms of the State in the center and the name of DSHA
in the border. All deeds, contracts or other obligations, certificates or other instruments executed, including bonds which
are provided for in § 4017 of this title, made or issued on behalf of DSHA, shall bear the signature of the Housing Director
and have impressed or imprinted thereupon the seal of DSHA, or facsimile thereof, and when so appearing shall be conclusively
presumed in any judicial action or proceeding the valid act and deed of DSHA. The presumptions set forth in this provision
shall also apply to all bonds executed pursuant to § 4016 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4013. Powers of DSHA.
In addition to its other powers, DSHA is hereby granted, has and may exercise all powers necessary or appropriate to carry
out and effectuate its corporate purposes, including, without limitation, the following:
(1) To sue and be sued in its own name;
(2) To have perpetual succession;
(3) To maintain an office at such place or places within this State as it may designate;
(4) To adopt and from time to time, amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to
carry into effect the powers and purposes of DSHA and the conduct of its business;
(5) To acquire real or personal property, or any interest therein, on either a temporary or long-term basis in the name of
DSHA by gift, purchase, transfer, in the manner prescribed by Chapter 61 of Title 10, foreclosure, lease or otherwise, including
rights or easements; to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property,
or any interest therein, or mortgage lien interest owned by it or under its control, custody or in its possession and release
or relinquish any right, title, claim, lien, interest, easement or demand, however acquired, including any equity or right
of redemption in property foreclosed by it; and to do any of the foregoing by public or private sale, with or without public
bidding, notwithstanding any other law;
(6) To make mortgage loans on such terms and conditions as may be determined by the Housing Director, and in accordance with
this chapter, for the construction, financing, refinancing or rehabilitation of housing for low- and moderate-income persons
and families;
(7) To insure mortgage loans to finance the building or rehabilitation of housing designed and planned to be available by
sale or lease to low- or moderate-income persons and families;
(8) To build or rehabilitate housing designed and planned to be sold or rented at prices which low- and moderate-income persons
and families can afford, and to rent or otherwise dispose of such housing to persons and families of low- and moderate-income
or to housing sponsors for the purpose of renting or selling such property to such persons and families;
(9) To charge rents for the use of residential housing facilities in the amounts sufficient to comply with any agreements
of DSHA, whether in connection with the issuance of bonds or otherwise including, but not limited to, reimbursement of all
costs of financing by DSHA and such service charges as DSHA shall determine to be reasonable, and, in connection with its
authorized programs, to make and collect such charges including, but not limited to, reimbursement of all costs of financing
by DSHA and such service charges and insurance premiums as DSHA shall determine to be reasonable;
(10) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities from private or public
parties to effectuate the purposes of this chapter;
(11) To enter into agreements with the State or any agency thereof, municipalities of the State, the United States, public
corporations or bodies and private corporations or individuals and to make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions including contracts or agreements with qualified mortgage
lenders for the servicing and processing of mortgage loans pursuant to this chapter and to accept grants and the cooperation
of the United States or any agency thereof or of the State or any agency thereof, or any public corporation or municipality
in furtherance of the purposes of this chapter;
(12) To provide, contract or arrange for consolidated processing of any aspect of a housing development in order to avoid
duplication thereof by either undertaking the processing in whole or in part for any department agency, or instrumentality
of the United States or of this State, or, in the alternative, to delegate the processing in whole or in part to any such
department, agency or instrumentality;
(13) To provide advice, technical information (including assistance in obtaining federal and state aid), training and educational
services, as will assist the planning, construction, rehabilitation and operation of housing developments for persons and
families of low- and moderate-income, including, but not limited to, assistance in community development and organization,
home management and advisory services for the residents of housing developments and to encourage community organizations to
assist in developing the same;
(14) To encourage research and demonstration projects in order to develop new and better techniques and methods for increasing
the supply of housing for persons and families of low- and moderate-income, and to engage in such research and demonstration
projects and to receive and accept contributions, grants or aid, from any source, public or private, including, but not limited
to,the United States and this State, for carrying out this purpose;
(15) To employ architects, engineers, attorneys, accountants, housing construction and financial experts and such other advisors,
consultants and agents as may be necessary in its judgment and to fix their compensation;
(16) To procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage
loans, in such amounts and from such insurers as it deems desirable;
(17) To invest any funds not needed for immediate use or disbursement including any funds held in reserve in the following:
a. Any bonds or other obligations which as to principal and interest constitute direct obligations of, or obligations guaranteed
by, the United States or the State;
b. Obligations of the Federal National Mortgage Association;
c. Obligations of the Federal Intermediate Credit Corporation;
d. Obligations of Federal Land Banks;
e. Obligations of Federal Home Loan Banks;
f. Certificates of deposit of banks or trust companies, including the Trustee, organized under the laws of the United States
or any state thereof which have a combined capital and surplus of at least $15,000,000;
g. Bankers Acceptances;
h. Commercial paper, which has been classified for rating purposes by Dunn & Bradstreet, Inc., as Prime-1, or by Standard
& Poor's Corporation as A-1;
i. Bonds, debentures, notes or other obligations issued by any of the following: Bank for Cooperatives, Export-Import Bank
of the United States, Government National Mortgage Association, Federal Financing Bank, Small Business Administration or any
other agency or instrumentality of the United States of America, created by an Act of Congress (substantially similar to the
foregoing in its legal relationship to the United States of America);
j. Contracts for the purchase and sale of obligations described in paragraphs (17)a. through e. and in paragraph (17)i. of
this section;
k. Interest-bearing notes issued by a bank, trust company, national banking association or other depository institution or
by a bank holding company, an insurance company or other financial institution;
l. Shares of any investment company that:
1. Is registered under the Investment Company Act of 1940, as amended [15 U.S.C. § 80a-1 et seq.];
2. Invests substantially all of its assets in short-term high-quality money-market instruments;
3. Maintains a constant net asset value per share; and
4. Maintains a rating at least as high as DSHA's bonds;
m. Other investment arrangements made pursuant to an investment agreement authorized by a resolution of DSHA; and
n. Corporate debt obligations, rated at least as high as DSHA's bonds, which have a fixed par value and/or whose terms promise
a fixed dollar amount at maturity or call date;
(18) To borrow money and issue bonds and notes or other evidence of indebtedness as hereinafter shown without regard to the
treatment of interest thereon for federal income tax purposes; provided however, that DSHA shall not issue bonds and notes
to exceed $350,000,000 without General Assembly approval with respect to bonds and notes subject to the Capital Reserve Fund
established under § 4020 of this title;
(19) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations of
DSHA, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or
interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement
of any kind to which DSHA is a party;
(20) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations,
to enter into contracts with any mortgagor containing provisions enabling such mortgagor to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges where, by reason of other income or payment from any department,
agency or instrumentality of the United States or this State, such reductions can be made without jeopardizing the economic
stability of housing being financed;
(21) To procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds
or notes or any other evidence of indebtedness thereof issued by DSHA including the power to pay premiums on any such insurance;
(22) To acquire, lease, purchase, manage, operate, hold and dispose of real and personal property in the State, take assignments
of leases and rentals, sell and convey such property on any terms, proceed with foreclosure actions, and enter into contracts,
leases and other arrangements necessary or incidental to the performance of its corporate duties;
(23) To exercise any or all of the powers conferred upon it, either generally or with respect to any specific housing project
or projects, through or by an agent or agents which it may designate including any corporation or corporations which are or
shall be formed under the laws of this State, and for such purposes, DSHA may cause 1 or more corporations to be incorporated
under the laws of this State or may acquire the capital stock of any corporation or corporations. Any corporate agent, all
of the stock of which shall be owned by DSHA or its nominee or nominees, may to the extent permitted by the law, exercise
any of the powers conferred by this chapter upon DSHA, or as shall be conferred upon it by DSHA, as agent;
(24) Fund the operation of any agents it may designate or any authority by advancing moneys appropriated pursuant to § 4030
of this title;
(25) To do any act necessary or convenient to the exercise of the powers herein granted or reasonably implied including all
powers presently or hereafter granted to local housing authorities under Chapter 43 of this title;
(26) To agree to make such payments to the State or any political subdivisions thereof (which payments such bodies may accept)
as DSHA finds consistent with the maintenance of the low- and moderate-income rent character of housing projects or the achievement
of the purposes of this chapter;
(27) To establish and implement policies, and to take all actions deemed appropriate to mitigate adverse social conditions
and to eliminate drug and crime problems at DSHA's sites; and
(28) To provide housing assistance as a benefit, not an entitlement, and to require the beneficiaries to recognize their responsibilities
to DSHA and to their neighbors as conditions of continued assistance.
71 Del. Laws, c. 357, § 6.;
§ 4014. Liberal construction.
Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers
which DSHA might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter
shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of bonds, notes
and other obligations and refunding bonds under this chapter need not comply with the requirements of any other state law
applicable to the issuance of bonds, notes and other obligations and contracts for the construction and acquisition of any
housing developments undertaken pursuant to this chapter need not comply with any other state law applicable to contracts
for the construction and acquisition of state-owned property. No proceedings, notice or approval shall be required for the
issuance of any bonds, notes and other obligations or any instrument as security therefor, except as to an issue of bonds
subject to the requirements of § 4020 of this title relating to the Capital Reserve Fund, and the issuing officer of DSHA
shall coordinate any other issuance with the state bond issuing officers.
71 Del. Laws, c. 357, § 6.;
§ 4015. Audit of books and accounts.
The office of Auditor of Accounts shall cause an annual audit of the books and accounts of DSHA. The selection of the firm
to perform the annual audit of the books and accounts of DSHA shall be mutually agreed upon by the office of the Auditor of
Accounts and the Housing Director who shall consult and cooperate with each other in the selection, contract, employment and
scope of professional services to be rendered, provisions in Chapter 29 of Title 29 notwithstanding. The audit shall be performed
by a certified public accountant of recognized national standing and shall conform in all respects to the covenants contained
in all bond resolutions entered into by DSHA for the benefit of its bondholders. DSHA shall transfer funds, as requested by
the office of Auditor of Accounts, to cover the cost of the audit.
71 Del. Laws, c. 357, § 6.;
§ 4016. Bonds.
(a) DSHA may, with the approval of the issuing officer and subject to the authorization (if any) required by § 7402 of Title
29, issue bonds (including refunding bonds for the purpose of paying or retiring bonds previously issued by DSHA) from time
to time in such amounts as it may deem advisable for any of its corporate purposes. DSHA may issue such types of bonds as
it may determine, including bonds on which the principal and interest are payable:
(1) Exclusively from the income and revenues of any undertaking financed in whole or in part with the proceeds of such bonds;
(2) Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole
or in part with the proceeds of such bonds;
(3) From its revenues generally; or
(4) By grants, subsidies or other payments from the federal government.
Any of such bonds may be additionally secured by a pledge of any revenue or by a mortgage of any housing project, projects
or other property of DSHA or any of its agents or designees.
(b) Neither the issuing officer nor any person executing the bonds shall be liable personally on the bonds.
71 Del. Laws, c. 357, § 6.;
§ 4017. Forms and terms of bonds; disposition of proceeds.
(a) All bonds issued under the authority of this chapter shall be dated, shall bear interest at such rate or rates payable
semiannually or at such other time or times as shall be determined by resolution of DSHA, and shall mature at such time or
times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions
as may be fixed by the issuing officer prior to the issuance of the bonds. The principal of and the interest upon such bonds
may be made payable in any lawful medium. The issuing officer shall determine the form of the bonds, including any interest
coupons to be attached thereto, and shall fix the denominations of the bonds. Both principal of and interest on the bonds
shall be payable at such place or places as DSHA may designate.
(b) Bonds shall be signed by manual or facsimile signature of the Housing Director, and the seal of DSHA or a facsimile thereof
shall be affixed thereto or imprinted thereon. In case any person whose signature or facsimile thereof shall appear on any
bonds or coupons shall cease to be the Housing Director before the delivery of such bonds, such signature or facsimile shall,
nevertheless, be valid for all purposes, the same as if the Housing Director had remained in office until delivery.
(c) All bonds issued under this chapter shall have and are declared to have all the qualities and incidents of negotiable
instruments under the Uniform Commercial Code.
(d) Such bonds and the income therefrom shall be exempt from all taxation by this State or by any political subdivision, agency
or authority thereof.
(e) The bonds may be issued in coupon or registered form, or both, as the issuing officer may determine, and provision may
be made for the registration of any coupon bond as to principal alone or as to both principal and interest and for the reconversion
of any bonds registered both as to principal and interest into coupon bonds.
(f) The issuing officer may sell such bonds, either at public or private sale, in such manner and for such price as they may
determine to be for the best interest of DSHA.
(g) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution
of DSHA authorizing the issuance thereof or as set forth in the indenture securing their payment, which purposes may include
redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof and all legal and
other expenses of their issuance and shall be disbursed under such restrictions, if any, as said resolution or trust indenture
may provide.
(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times be
available to DSHA for the aforesaid purposes; provided however, that if the proceeds of the bonds of any issue shall exceed
the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used
for any purpose of DSHA authorized in this chapter or for the payment of the principal of or interest on its outstanding bonds.
(i) Prior to the preparation of definitive bonds, the issuing officer may issue temporary bonds, with or without coupons,
exchangeable for definitive bonds upon the issuance of the latter. The issuing officer may also provide for the replacement
of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings or
conditions which are specified and required by this chapter.
71 Del. Laws, c. 357, § 6.;
§ 4018. Bonds as legal investments for institutions and fiduciaries and as legal deposit.
The bonds issued under the authority of this chapter are declared to be securities in which all state and municipal officers
and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings
and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance
associations and other persons carrying on an insurance business and all administrators, executors, guardians, trustees and
other fiduciaries and all other persons whatsoever who now or may be authorized to invest in bonds or other obligations of
this State, may properly and legally invest any funds, including capital belonging to them or within their control, and such
bonds are declared securities which may properly and legally be deposited with and received by any state, county or municipal
officer or agency of this State for any purpose for which the deposit of bonds or other obligations of this State is now or
may hereafter be authorized by law.
71 Del. Laws, c. 357, § 6.;
§ 4019. Credit of State not pledged.
(a) Bonds issued under this chapter shall be payable exclusively from the revenues and other funds of DSHA and shall contain
the following statement on their face:
"The State of Delaware is not obligated to pay the principal of this bond nor the interest thereon, nor are the faith and
credit of the State pledged to the payment of the principal of, or interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the State to levy or
pledge any form of taxation whatever therefor or to make any appropriation for their payment, and the bonds shall not constitute
an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction; provided also that §
4020 of this title, relative to the Capital Reserve Fund, shall not be deemed to constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction.
71 Del. Laws, c. 357, § 6.;
§ 4020. Capital Reserve Fund.
(a) DSHA shall create and establish a special fund to secure the bonds, herein referred to as Capital Reserve Fund, and shall
pay into the Capital Reserve Fund:
(1) Any moneys appropriated and made available by the State for the purposes of such fund;
(2) Any proceeds of the sale of bonds, to the extent provided in the resolution of DSHA, authorizing the issuance thereof;
and
(3) Any other moneys which may be made available to DSHA for the purpose of such fund from any other source or sources.
All moneys held in the Capital Reserve Fund, except as hereinafter provided, shall be used solely for the payment of the principal
of bonds of DSHA as the same mature, the redemption or purchase of bonds of DSHA, the payment of interest on such bonds of
DSHA or the payment of any redemption premium required to be paid when such bonds are redeemed prior to the maturity. Moneys
in the Capital Reserve Fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of the
Fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on
all bonds of DSHA then outstanding, except for the purpose of paying principal and interest on bonds of DSHA maturing and
becoming due and for the payment of which other moneys of DSHA are not available. Any income or interest earned by, or increment
to, the Capital Reserve Fund due to the investment thereof may be transferred by DSHA to any other fund of DSHA to the extent
it does not reduce the amount of Capital Reserve Fund below the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year on all bonds of DSHA then outstanding.
(b) Except with respect to an issue, or portion of an issue, of bonds designated by resolution of DSHA as not being subject
to the requirements and provisions of this section, DSHA shall not issue bonds at any time if the maximum amount of principal
and interest maturing and becoming due in a succeeding fiscal year on the bonds then to be issued and on all other bonds of
DSHA then outstanding will exceed the amount of the Capital Reserve Fund at the time of issuance unless DSHA, at the time
of issuance of such bonds, shall deposit in the Fund from the proceeds of the bonds so to be issued, or otherwise, an amount
which, together with the amount then in the Fund, will be not less than the maximum amount of principal and interest maturing
and becoming due in any succeeding fiscal year on the bonds then to be issued and on all other bonds of DSHA then outstanding.
(c) To assure the continued operation and solvency of DSHA for the carrying out of the public purposes of this chapter, provision
is made for the accumulation in the Capital Reserve Fund of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any fiscal year on all bonds of DSHA then outstanding. In order to assure further such maintenance
of the Capital Reserve Fund, there may be annually appropriated and paid to DSHA for deposit in the Capital Reserve Fund such
sum, if any, as shall be certified by the Housing Director to the Governor and Director of the Office of Management and Budget,
as necessary to restore the Capital Reserve Fund to an amount equal to the maximum amount of principal and interest maturing
and becoming due in any fiscal year on the bonds of DSHA then outstanding. In any case where a deficiency occurs in the Capital
Reserve Fund, the Housing Director shall promptly make and deliver to the Governor and Director of the Office of Management
and Budget a certificate stating the amount required to restore the Capital Reserve Fund, and the Governor shall, as soon
as practicable during the current fiscal year, request an appropriation of such amount, and the amount so requested may be
appropriated and paid to DSHA for deposit into the Capital Reserve Fund.
(d) In computing the amount of the Capital Reserve Fund for the purposes of this section, securities in which all or a portion
of the fund is invested shall be valued in the manner provided in the resolution authorizing the issuance of the trust indenture
securing such bonds.
(e) Calculations of the amount of principal and interest maturing and becoming due in any succeeding fiscal year shall be
based upon the assumption that bonds of DSHA will, after said date of computation, cease to be outstanding by reason of the
payment of such bonds at their respective maturities or the payment of all moneys required to be paid into a sinking fund
on account of such bonds as may be required by the terms of any resolution or indenture pursuant to which such bonds have
been issued and the application of such sinking fund to the retirement of bonds in accordance with their terms.
(f) For the purposes of this section, the term "bonds" shall mean all obligations of DSHA bearing a maturity date more than
2 years after the date thereof, except any bonds, notes or other obligations of DSHA which are designated by resolution of
DSHA prior to the issuance thereof as being not subject to this section.
71 Del. Laws, c. 357, § 6; 75 Del. Laws, c. 88, § 21(14).;
§ 4021. Provisions of bonds and mortgages.
In connection with the issuance of bonds or the incurring of any obligation under a lease and to secure the payment of such
bonds or obligations, DSHA in addition to its other powers may:
(1) Pledge all or any part of its rents, fees or revenues to which its right then exists or may thereafter come into existence;
(2) Mortgage all or any part of its property, real or personal, then owned or thereafter acquired, including any of the public
domain owned or acquired by it;
(3) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against
permitting or suffering any lien thereon;
(4) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof;
(5) Covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or may thereafter
come into existence or against permitting or suffering any lien thereon;
(6) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise and as to the use and
disposition of the proceeds thereof;
(7) Covenant as to what other or additional debts may be incurred by it;
(8) Covenant that DSHA warrants the title to the premises;
(9) Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees
and other revenues and as to the use and disposition to be made thereof;
(10) Covenant as to the use of any or all of its property, real or personal;
(11) Create or authorize the creation of special funds segregating the proceeds of any loans or grants, the revenues of any
project or projects, reserves for principal and interest on its bonds and for operating contingencies and other reserves and
covenant as to the use and disposal of the moneys held in such funds;
(12) Redeem the bonds and covenant for their redemption and provide the terms and conditions thereof;
(13) Covenant against extending the time for the payment of its bonds or interest thereon;
(14) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the
amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(15) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the
use and disposition of insurance moneys;
(16) Vest in an obligee, in the event of a default by DSHA, the right to cure any such default and to advance any moneys necessary
for such purpose and covenant that the moneys so advanced become an additional obligation of DSHA with such interest, security
and priority as may be provided in any mortgage, lease or contract;
(17) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall
become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences
may be waived;
(18) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or
obligation;
(19) Covenant to surrender possession of a project or projects or parts thereof upon the happening of an event of default
and vest in an obligee the right, upon such default and without judicial proceedings, to take possession and use, operate,
manage and control such projects or any parts thereof and to collect and receive rents, fees and revenues arising therefrom
in the same manner as DSHA itself might do and to dispose of the moneys collected in accordance with the agreement of such
obligee with DSHA;
(20) Vest in a trustee or trustees the right to enforce any covenant to secure or pay the bonds or otherwise relating to such
bonds, provide for the powers and duties of such trustee or trustees, limit the liabilities thereof and provide the terms
and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant;
(21) Vest in a government or in a trustee the right, upon the happening of an event of default, to foreclose the mortgage
securing any bonds held by such government, through judicial proceedings or through the exercise of a power of sale without
judicial proceedings;
(22) Vest in other obligees the right, upon the happening of an event of default, to foreclose any mortgage through judicial
proceedings;
(23) Vest in any obligee the right to foreclose any such mortgage as to all or such part or parts of the property covered
thereby as such obligee shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings or the
sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage
on the parts of the mortgaged property not included in such proceedings or not sold as aforesaid;
(24) Make covenants other than, and in addition to, the covenants expressly authorized in this section of like or different
character and execute all instruments necessary or convenient in the exercise of the powers granted in this chapter or in
the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified,
as the government or any purchaser of the bonds of DSHA may require;
(25) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to
secure its bonds or, in the absolute discretion of DSHA, tend to make the bonds more marketable, notwithstanding that such
covenants, acts or things may not be enumerated in this section.
71 Del. Laws, c. 357, § 6.;
§ 4022. Trust indenture.
(a) At the discretion of the issuing officer each and any issue of such bonds may be secured by a trust indenture by and between
the issuing officer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within
or without this State.
(b) Such trust indenture may pledge or assign the revenues of DSHA but shall not create a security interest in or convey or
mortgage any real property owned, operated or maintained by DSHA. Either the resolution providing for the issuance of the
bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not
in violation of law, include covenants setting forth the duties of DSHA in relation to the acquisition, construction, improvement,
maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application
of all moneys.
(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and
to furnish such indenture bonds or to pledge such securities as may be required by DSHA. Such indenture may set forth the
rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as
is customary in trust indentures securing bonds and debentures of corporation.
(d) In addition to the foregoing, such trust indenture may contain such other provisions as the issuing officer may deem reasonable
and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture
may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related
or may be paid out of the revenues of DSHA.
71 Del. Laws, c. 357, § 6.;
§ 4023. Remedies of bondholders and trustees.
(a) Any holder of bonds issued under this chapter or any of the coupons attached thereto, and the trustee under the trust
indenture, if any, except to the extent the rights given by this chapter may be restricted by resolution passed before the
issuance of the bonds or by the trust indenture, may either at law or in equity by suit, action, mandamus or other proceedings
protect and enforce any and all rights under the laws of the United States or of this State or granted under this chapter
or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this chapter,
or by such resolution or trust indenture, to be performed by DSHA or any officer thereof, including the fixing, charging and
collecting of fares or charges for the use of any facility operated by DSHA.
(b) Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such
trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed
shall have and be entitled to exercise all the rights and powers of DSHA with respect to the facilities operated or maintained
by DSHA and all of the appropriate rights and powers of a receiver in equity.
71 Del. Laws, c. 357, § 6.;
§ 4024. Moneys as trust funds.
All moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or grants or other
contributions from any person corporate or otherwise, or government, or as fees and revenues shall be deemed to be trust funds,
to be held and applied solely as provided in this chapter. The issuing officer shall, in the resolution authorizing the issuance
of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fees and revenues
to be received, to any officer, agency, bank or trust company who shall act as trustee of such funds, and shall hold and apply
the same to the purposes of this chapter, subject to such regulations as this chapter and such resolution or trust indenture
may provide.
71 Del. Laws, c. 357, § 6.;
§ 4025. Subordination of mortgage to agreement with government.
DSHA may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government
of the operation and maintenance of the mortgaged property and the construction of improvements thereon. In such event, any
purchase or purchasers at a sale of the property of DSHA pursuant to a foreclosure of such mortgage or any other remedy in
connection therewith shall obtain title subject to such contract.
71 Del. Laws, c. 357, § 6.;
§ 4026. Powers relative to purchase of and sale to financial institutions of mortgage loans; loans to mortgage lenders.
DSHA shall have all the powers necessary or convenient to carry out and effectuate the purposes of this chapter, including
the following powers in addition to others herein granted:
(1) To invest in, purchase or to make commitments to purchase, and take assignments from mortgage lenders of notes and mortgages
evidencing loans for the construction, rehabilitation, purchase, leasing or refinancing of housing for persons and families
of low- and moderate-income in this State;
(2) To make loans to mortgage lenders upon terms and conditions requiring the proceeds thereof to be used by such mortgage
lenders for the making of new residential mortgages, upon the terms set forth in § 4027 of this title;
(3) To make commitments to purchase, and to purchase, service and sell mortgages insured by any department, agency or instrumentality
of the United States, and to make loans directly upon the security of any such mortgage; provided, that the underlying mortgage
loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation,
purchase or leasing of residential housing for persons and families of low- and moderate-income in this State;
(4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by DSHA;
(5) To enter into mortgage insurance agreements with mortgage lenders in connection with the lending of money by such institutions
to persons and families of low- or moderate-income for the purchase of housing;
(6) Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any
collateral securing its loans to mortgage lenders and acquire or take possession of such collateral and sell the same at public
or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the
interest of DSHA therein.
71 Del. Laws, c. 357, § 6.;
§ 4027. Terms and conditions of the purchase and sale to financial institutions of mortgage loans; loans to mortgage lenders.
(a) DSHA shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of such loans to
mortgage lenders and the application of the proceeds thereof.
Such rules and regulations shall be designed to effectuate the general purposes of this chapter and the following specific
objectives:
1. The expansion of the supply of funds in the State available for new residential mortgages;
2. The provision of the additional housing needed to remedy the shortage of adequate housing in the State and eliminate the
existence of a large number of substandard dwellings; and
3. The effective participation by mortgage lenders in the program authorized by this chapter and the restriction of the financial
return and benefit thereto from such program to that necessary and reasonable to induce such participation.
(b) All new residential mortgages made as required by this section shall comply with the applicable provisions of the laws
of the State, and, where federal law or the law of another jurisdiction governs the affairs of the mortgage lender, shall
comply with applicable provisions of such law.
71 Del. Laws, c. 357, § 6.;
§ 4028. Notification of application for Low Income Housing Tax Credit Program.
(a) Whenever a Low Income Housing Tax Credit Program application is submitted to the Delaware State Housing Authority, the
Housing Director shall notify by certified and regular mail any state senators and representatives in whose districts any
development project will be located. In addition, the Housing Director shall so notify the chief executive officer of any
local government in whose jurisdiction any development project will be located.
(b) Whenever a preliminary ranking of Low Income Housing Tax Credit Program applications is made by the Delaware State Housing
Authority, the Housing Director shall notify by certified and regular mail any state senators and representatives in whose
districts any development project will be located. In addition, the Housing Director shall so notify the chief executive officer
of any local government in whose jurisdiction any development project will be located.
In accordance with Chapter 86 of Title 29, there is created in the Executive Department a public corporation of perpetual
duration to be called the "Delaware State Housing Authority," hereinafter referred to as "DSHA." Chapter 43 of this title
shall apply to DSHA and to its projects as fully as such provisions apply to a housing authority created by § 4303 of this
title and to its housing projects; provided however, that DSHA shall not be subject to §§ 4303, 4304, 4306, 4307, 4314 and
4317 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4011. DSHA to contract for labor or materials.
DSHA shall contract for labor or materials (except labor or materials used in the maintenance or operation of projects) pursuant
to the manner prescribed in Chapter 69 of Title 29, for departments and other agencies of the state government.
71 Del. Laws, c. 357, § 6.;
§ 4012. Seal of DSHA.
DSHA shall have a corporate seal in the form of a circle bearing the arms of the State in the center and the name of DSHA
in the border. All deeds, contracts or other obligations, certificates or other instruments executed, including bonds which
are provided for in § 4017 of this title, made or issued on behalf of DSHA, shall bear the signature of the Housing Director
and have impressed or imprinted thereupon the seal of DSHA, or facsimile thereof, and when so appearing shall be conclusively
presumed in any judicial action or proceeding the valid act and deed of DSHA. The presumptions set forth in this provision
shall also apply to all bonds executed pursuant to § 4016 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4013. Powers of DSHA.
In addition to its other powers, DSHA is hereby granted, has and may exercise all powers necessary or appropriate to carry
out and effectuate its corporate purposes, including, without limitation, the following:
(1) To sue and be sued in its own name;
(2) To have perpetual succession;
(3) To maintain an office at such place or places within this State as it may designate;
(4) To adopt and from time to time, amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to
carry into effect the powers and purposes of DSHA and the conduct of its business;
(5) To acquire real or personal property, or any interest therein, on either a temporary or long-term basis in the name of
DSHA by gift, purchase, transfer, in the manner prescribed by Chapter 61 of Title 10, foreclosure, lease or otherwise, including
rights or easements; to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property,
or any interest therein, or mortgage lien interest owned by it or under its control, custody or in its possession and release
or relinquish any right, title, claim, lien, interest, easement or demand, however acquired, including any equity or right
of redemption in property foreclosed by it; and to do any of the foregoing by public or private sale, with or without public
bidding, notwithstanding any other law;
(6) To make mortgage loans on such terms and conditions as may be determined by the Housing Director, and in accordance with
this chapter, for the construction, financing, refinancing or rehabilitation of housing for low- and moderate-income persons
and families;
(7) To insure mortgage loans to finance the building or rehabilitation of housing designed and planned to be available by
sale or lease to low- or moderate-income persons and families;
(8) To build or rehabilitate housing designed and planned to be sold or rented at prices which low- and moderate-income persons
and families can afford, and to rent or otherwise dispose of such housing to persons and families of low- and moderate-income
or to housing sponsors for the purpose of renting or selling such property to such persons and families;
(9) To charge rents for the use of residential housing facilities in the amounts sufficient to comply with any agreements
of DSHA, whether in connection with the issuance of bonds or otherwise including, but not limited to, reimbursement of all
costs of financing by DSHA and such service charges as DSHA shall determine to be reasonable, and, in connection with its
authorized programs, to make and collect such charges including, but not limited to, reimbursement of all costs of financing
by DSHA and such service charges and insurance premiums as DSHA shall determine to be reasonable;
(10) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities from private or public
parties to effectuate the purposes of this chapter;
(11) To enter into agreements with the State or any agency thereof, municipalities of the State, the United States, public
corporations or bodies and private corporations or individuals and to make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions including contracts or agreements with qualified mortgage
lenders for the servicing and processing of mortgage loans pursuant to this chapter and to accept grants and the cooperation
of the United States or any agency thereof or of the State or any agency thereof, or any public corporation or municipality
in furtherance of the purposes of this chapter;
(12) To provide, contract or arrange for consolidated processing of any aspect of a housing development in order to avoid
duplication thereof by either undertaking the processing in whole or in part for any department agency, or instrumentality
of the United States or of this State, or, in the alternative, to delegate the processing in whole or in part to any such
department, agency or instrumentality;
(13) To provide advice, technical information (including assistance in obtaining federal and state aid), training and educational
services, as will assist the planning, construction, rehabilitation and operation of housing developments for persons and
families of low- and moderate-income, including, but not limited to, assistance in community development and organization,
home management and advisory services for the residents of housing developments and to encourage community organizations to
assist in developing the same;
(14) To encourage research and demonstration projects in order to develop new and better techniques and methods for increasing
the supply of housing for persons and families of low- and moderate-income, and to engage in such research and demonstration
projects and to receive and accept contributions, grants or aid, from any source, public or private, including, but not limited
to,the United States and this State, for carrying out this purpose;
(15) To employ architects, engineers, attorneys, accountants, housing construction and financial experts and such other advisors,
consultants and agents as may be necessary in its judgment and to fix their compensation;
(16) To procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage
loans, in such amounts and from such insurers as it deems desirable;
(17) To invest any funds not needed for immediate use or disbursement including any funds held in reserve in the following:
a. Any bonds or other obligations which as to principal and interest constitute direct obligations of, or obligations guaranteed
by, the United States or the State;
b. Obligations of the Federal National Mortgage Association;
c. Obligations of the Federal Intermediate Credit Corporation;
d. Obligations of Federal Land Banks;
e. Obligations of Federal Home Loan Banks;
f. Certificates of deposit of banks or trust companies, including the Trustee, organized under the laws of the United States
or any state thereof which have a combined capital and surplus of at least $15,000,000;
g. Bankers Acceptances;
h. Commercial paper, which has been classified for rating purposes by Dunn & Bradstreet, Inc., as Prime-1, or by Standard
& Poor's Corporation as A-1;
i. Bonds, debentures, notes or other obligations issued by any of the following: Bank for Cooperatives, Export-Import Bank
of the United States, Government National Mortgage Association, Federal Financing Bank, Small Business Administration or any
other agency or instrumentality of the United States of America, created by an Act of Congress (substantially similar to the
foregoing in its legal relationship to the United States of America);
j. Contracts for the purchase and sale of obligations described in paragraphs (17)a. through e. and in paragraph (17)i. of
this section;
k. Interest-bearing notes issued by a bank, trust company, national banking association or other depository institution or
by a bank holding company, an insurance company or other financial institution;
l. Shares of any investment company that:
1. Is registered under the Investment Company Act of 1940, as amended [15 U.S.C. § 80a-1 et seq.];
2. Invests substantially all of its assets in short-term high-quality money-market instruments;
3. Maintains a constant net asset value per share; and
4. Maintains a rating at least as high as DSHA's bonds;
m. Other investment arrangements made pursuant to an investment agreement authorized by a resolution of DSHA; and
n. Corporate debt obligations, rated at least as high as DSHA's bonds, which have a fixed par value and/or whose terms promise
a fixed dollar amount at maturity or call date;
(18) To borrow money and issue bonds and notes or other evidence of indebtedness as hereinafter shown without regard to the
treatment of interest thereon for federal income tax purposes; provided however, that DSHA shall not issue bonds and notes
to exceed $350,000,000 without General Assembly approval with respect to bonds and notes subject to the Capital Reserve Fund
established under § 4020 of this title;
(19) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations of
DSHA, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or
interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement
of any kind to which DSHA is a party;
(20) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations,
to enter into contracts with any mortgagor containing provisions enabling such mortgagor to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges where, by reason of other income or payment from any department,
agency or instrumentality of the United States or this State, such reductions can be made without jeopardizing the economic
stability of housing being financed;
(21) To procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds
or notes or any other evidence of indebtedness thereof issued by DSHA including the power to pay premiums on any such insurance;
(22) To acquire, lease, purchase, manage, operate, hold and dispose of real and personal property in the State, take assignments
of leases and rentals, sell and convey such property on any terms, proceed with foreclosure actions, and enter into contracts,
leases and other arrangements necessary or incidental to the performance of its corporate duties;
(23) To exercise any or all of the powers conferred upon it, either generally or with respect to any specific housing project
or projects, through or by an agent or agents which it may designate including any corporation or corporations which are or
shall be formed under the laws of this State, and for such purposes, DSHA may cause 1 or more corporations to be incorporated
under the laws of this State or may acquire the capital stock of any corporation or corporations. Any corporate agent, all
of the stock of which shall be owned by DSHA or its nominee or nominees, may to the extent permitted by the law, exercise
any of the powers conferred by this chapter upon DSHA, or as shall be conferred upon it by DSHA, as agent;
(24) Fund the operation of any agents it may designate or any authority by advancing moneys appropriated pursuant to § 4030
of this title;
(25) To do any act necessary or convenient to the exercise of the powers herein granted or reasonably implied including all
powers presently or hereafter granted to local housing authorities under Chapter 43 of this title;
(26) To agree to make such payments to the State or any political subdivisions thereof (which payments such bodies may accept)
as DSHA finds consistent with the maintenance of the low- and moderate-income rent character of housing projects or the achievement
of the purposes of this chapter;
(27) To establish and implement policies, and to take all actions deemed appropriate to mitigate adverse social conditions
and to eliminate drug and crime problems at DSHA's sites; and
(28) To provide housing assistance as a benefit, not an entitlement, and to require the beneficiaries to recognize their responsibilities
to DSHA and to their neighbors as conditions of continued assistance.
71 Del. Laws, c. 357, § 6.;
§ 4014. Liberal construction.
Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers
which DSHA might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter
shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of bonds, notes
and other obligations and refunding bonds under this chapter need not comply with the requirements of any other state law
applicable to the issuance of bonds, notes and other obligations and contracts for the construction and acquisition of any
housing developments undertaken pursuant to this chapter need not comply with any other state law applicable to contracts
for the construction and acquisition of state-owned property. No proceedings, notice or approval shall be required for the
issuance of any bonds, notes and other obligations or any instrument as security therefor, except as to an issue of bonds
subject to the requirements of § 4020 of this title relating to the Capital Reserve Fund, and the issuing officer of DSHA
shall coordinate any other issuance with the state bond issuing officers.
71 Del. Laws, c. 357, § 6.;
§ 4015. Audit of books and accounts.
The office of Auditor of Accounts shall cause an annual audit of the books and accounts of DSHA. The selection of the firm
to perform the annual audit of the books and accounts of DSHA shall be mutually agreed upon by the office of the Auditor of
Accounts and the Housing Director who shall consult and cooperate with each other in the selection, contract, employment and
scope of professional services to be rendered, provisions in Chapter 29 of Title 29 notwithstanding. The audit shall be performed
by a certified public accountant of recognized national standing and shall conform in all respects to the covenants contained
in all bond resolutions entered into by DSHA for the benefit of its bondholders. DSHA shall transfer funds, as requested by
the office of Auditor of Accounts, to cover the cost of the audit.
71 Del. Laws, c. 357, § 6.;
§ 4016. Bonds.
(a) DSHA may, with the approval of the issuing officer and subject to the authorization (if any) required by § 7402 of Title
29, issue bonds (including refunding bonds for the purpose of paying or retiring bonds previously issued by DSHA) from time
to time in such amounts as it may deem advisable for any of its corporate purposes. DSHA may issue such types of bonds as
it may determine, including bonds on which the principal and interest are payable:
(1) Exclusively from the income and revenues of any undertaking financed in whole or in part with the proceeds of such bonds;
(2) Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole
or in part with the proceeds of such bonds;
(3) From its revenues generally; or
(4) By grants, subsidies or other payments from the federal government.
Any of such bonds may be additionally secured by a pledge of any revenue or by a mortgage of any housing project, projects
or other property of DSHA or any of its agents or designees.
(b) Neither the issuing officer nor any person executing the bonds shall be liable personally on the bonds.
71 Del. Laws, c. 357, § 6.;
§ 4017. Forms and terms of bonds; disposition of proceeds.
(a) All bonds issued under the authority of this chapter shall be dated, shall bear interest at such rate or rates payable
semiannually or at such other time or times as shall be determined by resolution of DSHA, and shall mature at such time or
times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions
as may be fixed by the issuing officer prior to the issuance of the bonds. The principal of and the interest upon such bonds
may be made payable in any lawful medium. The issuing officer shall determine the form of the bonds, including any interest
coupons to be attached thereto, and shall fix the denominations of the bonds. Both principal of and interest on the bonds
shall be payable at such place or places as DSHA may designate.
(b) Bonds shall be signed by manual or facsimile signature of the Housing Director, and the seal of DSHA or a facsimile thereof
shall be affixed thereto or imprinted thereon. In case any person whose signature or facsimile thereof shall appear on any
bonds or coupons shall cease to be the Housing Director before the delivery of such bonds, such signature or facsimile shall,
nevertheless, be valid for all purposes, the same as if the Housing Director had remained in office until delivery.
(c) All bonds issued under this chapter shall have and are declared to have all the qualities and incidents of negotiable
instruments under the Uniform Commercial Code.
(d) Such bonds and the income therefrom shall be exempt from all taxation by this State or by any political subdivision, agency
or authority thereof.
(e) The bonds may be issued in coupon or registered form, or both, as the issuing officer may determine, and provision may
be made for the registration of any coupon bond as to principal alone or as to both principal and interest and for the reconversion
of any bonds registered both as to principal and interest into coupon bonds.
(f) The issuing officer may sell such bonds, either at public or private sale, in such manner and for such price as they may
determine to be for the best interest of DSHA.
(g) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution
of DSHA authorizing the issuance thereof or as set forth in the indenture securing their payment, which purposes may include
redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof and all legal and
other expenses of their issuance and shall be disbursed under such restrictions, if any, as said resolution or trust indenture
may provide.
(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times be
available to DSHA for the aforesaid purposes; provided however, that if the proceeds of the bonds of any issue shall exceed
the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used
for any purpose of DSHA authorized in this chapter or for the payment of the principal of or interest on its outstanding bonds.
(i) Prior to the preparation of definitive bonds, the issuing officer may issue temporary bonds, with or without coupons,
exchangeable for definitive bonds upon the issuance of the latter. The issuing officer may also provide for the replacement
of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings or
conditions which are specified and required by this chapter.
71 Del. Laws, c. 357, § 6.;
§ 4018. Bonds as legal investments for institutions and fiduciaries and as legal deposit.
The bonds issued under the authority of this chapter are declared to be securities in which all state and municipal officers
and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings
and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance
associations and other persons carrying on an insurance business and all administrators, executors, guardians, trustees and
other fiduciaries and all other persons whatsoever who now or may be authorized to invest in bonds or other obligations of
this State, may properly and legally invest any funds, including capital belonging to them or within their control, and such
bonds are declared securities which may properly and legally be deposited with and received by any state, county or municipal
officer or agency of this State for any purpose for which the deposit of bonds or other obligations of this State is now or
may hereafter be authorized by law.
71 Del. Laws, c. 357, § 6.;
§ 4019. Credit of State not pledged.
(a) Bonds issued under this chapter shall be payable exclusively from the revenues and other funds of DSHA and shall contain
the following statement on their face:
"The State of Delaware is not obligated to pay the principal of this bond nor the interest thereon, nor are the faith and
credit of the State pledged to the payment of the principal of, or interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the State to levy or
pledge any form of taxation whatever therefor or to make any appropriation for their payment, and the bonds shall not constitute
an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction; provided also that §
4020 of this title, relative to the Capital Reserve Fund, shall not be deemed to constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction.
71 Del. Laws, c. 357, § 6.;
§ 4020. Capital Reserve Fund.
(a) DSHA shall create and establish a special fund to secure the bonds, herein referred to as Capital Reserve Fund, and shall
pay into the Capital Reserve Fund:
(1) Any moneys appropriated and made available by the State for the purposes of such fund;
(2) Any proceeds of the sale of bonds, to the extent provided in the resolution of DSHA, authorizing the issuance thereof;
and
(3) Any other moneys which may be made available to DSHA for the purpose of such fund from any other source or sources.
All moneys held in the Capital Reserve Fund, except as hereinafter provided, shall be used solely for the payment of the principal
of bonds of DSHA as the same mature, the redemption or purchase of bonds of DSHA, the payment of interest on such bonds of
DSHA or the payment of any redemption premium required to be paid when such bonds are redeemed prior to the maturity. Moneys
in the Capital Reserve Fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of the
Fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on
all bonds of DSHA then outstanding, except for the purpose of paying principal and interest on bonds of DSHA maturing and
becoming due and for the payment of which other moneys of DSHA are not available. Any income or interest earned by, or increment
to, the Capital Reserve Fund due to the investment thereof may be transferred by DSHA to any other fund of DSHA to the extent
it does not reduce the amount of Capital Reserve Fund below the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year on all bonds of DSHA then outstanding.
(b) Except with respect to an issue, or portion of an issue, of bonds designated by resolution of DSHA as not being subject
to the requirements and provisions of this section, DSHA shall not issue bonds at any time if the maximum amount of principal
and interest maturing and becoming due in a succeeding fiscal year on the bonds then to be issued and on all other bonds of
DSHA then outstanding will exceed the amount of the Capital Reserve Fund at the time of issuance unless DSHA, at the time
of issuance of such bonds, shall deposit in the Fund from the proceeds of the bonds so to be issued, or otherwise, an amount
which, together with the amount then in the Fund, will be not less than the maximum amount of principal and interest maturing
and becoming due in any succeeding fiscal year on the bonds then to be issued and on all other bonds of DSHA then outstanding.
(c) To assure the continued operation and solvency of DSHA for the carrying out of the public purposes of this chapter, provision
is made for the accumulation in the Capital Reserve Fund of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any fiscal year on all bonds of DSHA then outstanding. In order to assure further such maintenance
of the Capital Reserve Fund, there may be annually appropriated and paid to DSHA for deposit in the Capital Reserve Fund such
sum, if any, as shall be certified by the Housing Director to the Governor and Director of the Office of Management and Budget,
as necessary to restore the Capital Reserve Fund to an amount equal to the maximum amount of principal and interest maturing
and becoming due in any fiscal year on the bonds of DSHA then outstanding. In any case where a deficiency occurs in the Capital
Reserve Fund, the Housing Director shall promptly make and deliver to the Governor and Director of the Office of Management
and Budget a certificate stating the amount required to restore the Capital Reserve Fund, and the Governor shall, as soon
as practicable during the current fiscal year, request an appropriation of such amount, and the amount so requested may be
appropriated and paid to DSHA for deposit into the Capital Reserve Fund.
(d) In computing the amount of the Capital Reserve Fund for the purposes of this section, securities in which all or a portion
of the fund is invested shall be valued in the manner provided in the resolution authorizing the issuance of the trust indenture
securing such bonds.
(e) Calculations of the amount of principal and interest maturing and becoming due in any succeeding fiscal year shall be
based upon the assumption that bonds of DSHA will, after said date of computation, cease to be outstanding by reason of the
payment of such bonds at their respective maturities or the payment of all moneys required to be paid into a sinking fund
on account of such bonds as may be required by the terms of any resolution or indenture pursuant to which such bonds have
been issued and the application of such sinking fund to the retirement of bonds in accordance with their terms.
(f) For the purposes of this section, the term "bonds" shall mean all obligations of DSHA bearing a maturity date more than
2 years after the date thereof, except any bonds, notes or other obligations of DSHA which are designated by resolution of
DSHA prior to the issuance thereof as being not subject to this section.
71 Del. Laws, c. 357, § 6; 75 Del. Laws, c. 88, § 21(14).;
§ 4021. Provisions of bonds and mortgages.
In connection with the issuance of bonds or the incurring of any obligation under a lease and to secure the payment of such
bonds or obligations, DSHA in addition to its other powers may:
(1) Pledge all or any part of its rents, fees or revenues to which its right then exists or may thereafter come into existence;
(2) Mortgage all or any part of its property, real or personal, then owned or thereafter acquired, including any of the public
domain owned or acquired by it;
(3) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against
permitting or suffering any lien thereon;
(4) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof;
(5) Covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or may thereafter
come into existence or against permitting or suffering any lien thereon;
(6) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise and as to the use and
disposition of the proceeds thereof;
(7) Covenant as to what other or additional debts may be incurred by it;
(8) Covenant that DSHA warrants the title to the premises;
(9) Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees
and other revenues and as to the use and disposition to be made thereof;
(10) Covenant as to the use of any or all of its property, real or personal;
(11) Create or authorize the creation of special funds segregating the proceeds of any loans or grants, the revenues of any
project or projects, reserves for principal and interest on its bonds and for operating contingencies and other reserves and
covenant as to the use and disposal of the moneys held in such funds;
(12) Redeem the bonds and covenant for their redemption and provide the terms and conditions thereof;
(13) Covenant against extending the time for the payment of its bonds or interest thereon;
(14) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the
amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(15) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the
use and disposition of insurance moneys;
(16) Vest in an obligee, in the event of a default by DSHA, the right to cure any such default and to advance any moneys necessary
for such purpose and covenant that the moneys so advanced become an additional obligation of DSHA with such interest, security
and priority as may be provided in any mortgage, lease or contract;
(17) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall
become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences
may be waived;
(18) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or
obligation;
(19) Covenant to surrender possession of a project or projects or parts thereof upon the happening of an event of default
and vest in an obligee the right, upon such default and without judicial proceedings, to take possession and use, operate,
manage and control such projects or any parts thereof and to collect and receive rents, fees and revenues arising therefrom
in the same manner as DSHA itself might do and to dispose of the moneys collected in accordance with the agreement of such
obligee with DSHA;
(20) Vest in a trustee or trustees the right to enforce any covenant to secure or pay the bonds or otherwise relating to such
bonds, provide for the powers and duties of such trustee or trustees, limit the liabilities thereof and provide the terms
and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant;
(21) Vest in a government or in a trustee the right, upon the happening of an event of default, to foreclose the mortgage
securing any bonds held by such government, through judicial proceedings or through the exercise of a power of sale without
judicial proceedings;
(22) Vest in other obligees the right, upon the happening of an event of default, to foreclose any mortgage through judicial
proceedings;
(23) Vest in any obligee the right to foreclose any such mortgage as to all or such part or parts of the property covered
thereby as such obligee shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings or the
sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage
on the parts of the mortgaged property not included in such proceedings or not sold as aforesaid;
(24) Make covenants other than, and in addition to, the covenants expressly authorized in this section of like or different
character and execute all instruments necessary or convenient in the exercise of the powers granted in this chapter or in
the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified,
as the government or any purchaser of the bonds of DSHA may require;
(25) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to
secure its bonds or, in the absolute discretion of DSHA, tend to make the bonds more marketable, notwithstanding that such
covenants, acts or things may not be enumerated in this section.
71 Del. Laws, c. 357, § 6.;
§ 4022. Trust indenture.
(a) At the discretion of the issuing officer each and any issue of such bonds may be secured by a trust indenture by and between
the issuing officer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within
or without this State.
(b) Such trust indenture may pledge or assign the revenues of DSHA but shall not create a security interest in or convey or
mortgage any real property owned, operated or maintained by DSHA. Either the resolution providing for the issuance of the
bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not
in violation of law, include covenants setting forth the duties of DSHA in relation to the acquisition, construction, improvement,
maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application
of all moneys.
(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and
to furnish such indenture bonds or to pledge such securities as may be required by DSHA. Such indenture may set forth the
rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as
is customary in trust indentures securing bonds and debentures of corporation.
(d) In addition to the foregoing, such trust indenture may contain such other provisions as the issuing officer may deem reasonable
and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture
may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related
or may be paid out of the revenues of DSHA.
71 Del. Laws, c. 357, § 6.;
§ 4023. Remedies of bondholders and trustees.
(a) Any holder of bonds issued under this chapter or any of the coupons attached thereto, and the trustee under the trust
indenture, if any, except to the extent the rights given by this chapter may be restricted by resolution passed before the
issuance of the bonds or by the trust indenture, may either at law or in equity by suit, action, mandamus or other proceedings
protect and enforce any and all rights under the laws of the United States or of this State or granted under this chapter
or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this chapter,
or by such resolution or trust indenture, to be performed by DSHA or any officer thereof, including the fixing, charging and
collecting of fares or charges for the use of any facility operated by DSHA.
(b) Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such
trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed
shall have and be entitled to exercise all the rights and powers of DSHA with respect to the facilities operated or maintained
by DSHA and all of the appropriate rights and powers of a receiver in equity.
71 Del. Laws, c. 357, § 6.;
§ 4024. Moneys as trust funds.
All moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or grants or other
contributions from any person corporate or otherwise, or government, or as fees and revenues shall be deemed to be trust funds,
to be held and applied solely as provided in this chapter. The issuing officer shall, in the resolution authorizing the issuance
of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fees and revenues
to be received, to any officer, agency, bank or trust company who shall act as trustee of such funds, and shall hold and apply
the same to the purposes of this chapter, subject to such regulations as this chapter and such resolution or trust indenture
may provide.
71 Del. Laws, c. 357, § 6.;
§ 4025. Subordination of mortgage to agreement with government.
DSHA may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government
of the operation and maintenance of the mortgaged property and the construction of improvements thereon. In such event, any
purchase or purchasers at a sale of the property of DSHA pursuant to a foreclosure of such mortgage or any other remedy in
connection therewith shall obtain title subject to such contract.
71 Del. Laws, c. 357, § 6.;
§ 4026. Powers relative to purchase of and sale to financial institutions of mortgage loans; loans to mortgage lenders.
DSHA shall have all the powers necessary or convenient to carry out and effectuate the purposes of this chapter, including
the following powers in addition to others herein granted:
(1) To invest in, purchase or to make commitments to purchase, and take assignments from mortgage lenders of notes and mortgages
evidencing loans for the construction, rehabilitation, purchase, leasing or refinancing of housing for persons and families
of low- and moderate-income in this State;
(2) To make loans to mortgage lenders upon terms and conditions requiring the proceeds thereof to be used by such mortgage
lenders for the making of new residential mortgages, upon the terms set forth in § 4027 of this title;
(3) To make commitments to purchase, and to purchase, service and sell mortgages insured by any department, agency or instrumentality
of the United States, and to make loans directly upon the security of any such mortgage; provided, that the underlying mortgage
loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation,
purchase or leasing of residential housing for persons and families of low- and moderate-income in this State;
(4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by DSHA;
(5) To enter into mortgage insurance agreements with mortgage lenders in connection with the lending of money by such institutions
to persons and families of low- or moderate-income for the purchase of housing;
(6) Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any
collateral securing its loans to mortgage lenders and acquire or take possession of such collateral and sell the same at public
or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the
interest of DSHA therein.
71 Del. Laws, c. 357, § 6.;
§ 4027. Terms and conditions of the purchase and sale to financial institutions of mortgage loans; loans to mortgage lenders.
(a) DSHA shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of such loans to
mortgage lenders and the application of the proceeds thereof.
Such rules and regulations shall be designed to effectuate the general purposes of this chapter and the following specific
objectives:
1. The expansion of the supply of funds in the State available for new residential mortgages;
2. The provision of the additional housing needed to remedy the shortage of adequate housing in the State and eliminate the
existence of a large number of substandard dwellings; and
3. The effective participation by mortgage lenders in the program authorized by this chapter and the restriction of the financial
return and benefit thereto from such program to that necessary and reasonable to induce such participation.
(b) All new residential mortgages made as required by this section shall comply with the applicable provisions of the laws
of the State, and, where federal law or the law of another jurisdiction governs the affairs of the mortgage lender, shall
comply with applicable provisions of such law.
71 Del. Laws, c. 357, § 6.;
§ 4028. Notification of application for Low Income Housing Tax Credit Program.
(a) Whenever a Low Income Housing Tax Credit Program application is submitted to the Delaware State Housing Authority, the
Housing Director shall notify by certified and regular mail any state senators and representatives in whose districts any
development project will be located. In addition, the Housing Director shall so notify the chief executive officer of any
local government in whose jurisdiction any development project will be located.
(b) Whenever a preliminary ranking of Low Income Housing Tax Credit Program applications is made by the Delaware State Housing
Authority, the Housing Director shall notify by certified and regular mail any state senators and representatives in whose
districts any development project will be located. In addition, the Housing Director shall so notify the chief executive officer
of any local government in whose jurisdiction any development project will be located.
In accordance with Chapter 86 of Title 29, there is created in the Executive Department a public corporation of perpetual
duration to be called the "Delaware State Housing Authority," hereinafter referred to as "DSHA." Chapter 43 of this title
shall apply to DSHA and to its projects as fully as such provisions apply to a housing authority created by § 4303 of this
title and to its housing projects; provided however, that DSHA shall not be subject to §§ 4303, 4304, 4306, 4307, 4314 and
4317 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4011. DSHA to contract for labor or materials.
DSHA shall contract for labor or materials (except labor or materials used in the maintenance or operation of projects) pursuant
to the manner prescribed in Chapter 69 of Title 29, for departments and other agencies of the state government.
71 Del. Laws, c. 357, § 6.;
§ 4012. Seal of DSHA.
DSHA shall have a corporate seal in the form of a circle bearing the arms of the State in the center and the name of DSHA
in the border. All deeds, contracts or other obligations, certificates or other instruments executed, including bonds which
are provided for in § 4017 of this title, made or issued on behalf of DSHA, shall bear the signature of the Housing Director
and have impressed or imprinted thereupon the seal of DSHA, or facsimile thereof, and when so appearing shall be conclusively
presumed in any judicial action or proceeding the valid act and deed of DSHA. The presumptions set forth in this provision
shall also apply to all bonds executed pursuant to § 4016 of this title.
71 Del. Laws, c. 357, § 6.;
§ 4013. Powers of DSHA.
In addition to its other powers, DSHA is hereby granted, has and may exercise all powers necessary or appropriate to carry
out and effectuate its corporate purposes, including, without limitation, the following:
(1) To sue and be sued in its own name;
(2) To have perpetual succession;
(3) To maintain an office at such place or places within this State as it may designate;
(4) To adopt and from time to time, amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to
carry into effect the powers and purposes of DSHA and the conduct of its business;
(5) To acquire real or personal property, or any interest therein, on either a temporary or long-term basis in the name of
DSHA by gift, purchase, transfer, in the manner prescribed by Chapter 61 of Title 10, foreclosure, lease or otherwise, including
rights or easements; to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property,
or any interest therein, or mortgage lien interest owned by it or under its control, custody or in its possession and release
or relinquish any right, title, claim, lien, interest, easement or demand, however acquired, including any equity or right
of redemption in property foreclosed by it; and to do any of the foregoing by public or private sale, with or without public
bidding, notwithstanding any other law;
(6) To make mortgage loans on such terms and conditions as may be determined by the Housing Director, and in accordance with
this chapter, for the construction, financing, refinancing or rehabilitation of housing for low- and moderate-income persons
and families;
(7) To insure mortgage loans to finance the building or rehabilitation of housing designed and planned to be available by
sale or lease to low- or moderate-income persons and families;
(8) To build or rehabilitate housing designed and planned to be sold or rented at prices which low- and moderate-income persons
and families can afford, and to rent or otherwise dispose of such housing to persons and families of low- and moderate-income
or to housing sponsors for the purpose of renting or selling such property to such persons and families;
(9) To charge rents for the use of residential housing facilities in the amounts sufficient to comply with any agreements
of DSHA, whether in connection with the issuance of bonds or otherwise including, but not limited to, reimbursement of all
costs of financing by DSHA and such service charges as DSHA shall determine to be reasonable, and, in connection with its
authorized programs, to make and collect such charges including, but not limited to, reimbursement of all costs of financing
by DSHA and such service charges and insurance premiums as DSHA shall determine to be reasonable;
(10) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities from private or public
parties to effectuate the purposes of this chapter;
(11) To enter into agreements with the State or any agency thereof, municipalities of the State, the United States, public
corporations or bodies and private corporations or individuals and to make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions including contracts or agreements with qualified mortgage
lenders for the servicing and processing of mortgage loans pursuant to this chapter and to accept grants and the cooperation
of the United States or any agency thereof or of the State or any agency thereof, or any public corporation or municipality
in furtherance of the purposes of this chapter;
(12) To provide, contract or arrange for consolidated processing of any aspect of a housing development in order to avoid
duplication thereof by either undertaking the processing in whole or in part for any department agency, or instrumentality
of the United States or of this State, or, in the alternative, to delegate the processing in whole or in part to any such
department, agency or instrumentality;
(13) To provide advice, technical information (including assistance in obtaining federal and state aid), training and educational
services, as will assist the planning, construction, rehabilitation and operation of housing developments for persons and
families of low- and moderate-income, including, but not limited to, assistance in community development and organization,
home management and advisory services for the residents of housing developments and to encourage community organizations to
assist in developing the same;
(14) To encourage research and demonstration projects in order to develop new and better techniques and methods for increasing
the supply of housing for persons and families of low- and moderate-income, and to engage in such research and demonstration
projects and to receive and accept contributions, grants or aid, from any source, public or private, including, but not limited
to,the United States and this State, for carrying out this purpose;
(15) To employ architects, engineers, attorneys, accountants, housing construction and financial experts and such other advisors,
consultants and agents as may be necessary in its judgment and to fix their compensation;
(16) To procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage
loans, in such amounts and from such insurers as it deems desirable;
(17) To invest any funds not needed for immediate use or disbursement including any funds held in reserve in the following:
a. Any bonds or other obligations which as to principal and interest constitute direct obligations of, or obligations guaranteed
by, the United States or the State;
b. Obligations of the Federal National Mortgage Association;
c. Obligations of the Federal Intermediate Credit Corporation;
d. Obligations of Federal Land Banks;
e. Obligations of Federal Home Loan Banks;
f. Certificates of deposit of banks or trust companies, including the Trustee, organized under the laws of the United States
or any state thereof which have a combined capital and surplus of at least $15,000,000;
g. Bankers Acceptances;
h. Commercial paper, which has been classified for rating purposes by Dunn & Bradstreet, Inc., as Prime-1, or by Standard
& Poor's Corporation as A-1;
i. Bonds, debentures, notes or other obligations issued by any of the following: Bank for Cooperatives, Export-Import Bank
of the United States, Government National Mortgage Association, Federal Financing Bank, Small Business Administration or any
other agency or instrumentality of the United States of America, created by an Act of Congress (substantially similar to the
foregoing in its legal relationship to the United States of America);
j. Contracts for the purchase and sale of obligations described in paragraphs (17)a. through e. and in paragraph (17)i. of
this section;
k. Interest-bearing notes issued by a bank, trust company, national banking association or other depository institution or
by a bank holding company, an insurance company or other financial institution;
l. Shares of any investment company that:
1. Is registered under the Investment Company Act of 1940, as amended [15 U.S.C. § 80a-1 et seq.];
2. Invests substantially all of its assets in short-term high-quality money-market instruments;
3. Maintains a constant net asset value per share; and
4. Maintains a rating at least as high as DSHA's bonds;
m. Other investment arrangements made pursuant to an investment agreement authorized by a resolution of DSHA; and
n. Corporate debt obligations, rated at least as high as DSHA's bonds, which have a fixed par value and/or whose terms promise
a fixed dollar amount at maturity or call date;
(18) To borrow money and issue bonds and notes or other evidence of indebtedness as hereinafter shown without regard to the
treatment of interest thereon for federal income tax purposes; provided however, that DSHA shall not issue bonds and notes
to exceed $350,000,000 without General Assembly approval with respect to bonds and notes subject to the Capital Reserve Fund
established under § 4020 of this title;
(19) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations of
DSHA, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or
interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement
of any kind to which DSHA is a party;
(20) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations,
to enter into contracts with any mortgagor containing provisions enabling such mortgagor to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges where, by reason of other income or payment from any department,
agency or instrumentality of the United States or this State, such reductions can be made without jeopardizing the economic
stability of housing being financed;
(21) To procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds
or notes or any other evidence of indebtedness thereof issued by DSHA including the power to pay premiums on any such insurance;
(22) To acquire, lease, purchase, manage, operate, hold and dispose of real and personal property in the State, take assignments
of leases and rentals, sell and convey such property on any terms, proceed with foreclosure actions, and enter into contracts,
leases and other arrangements necessary or incidental to the performance of its corporate duties;
(23) To exercise any or all of the powers conferred upon it, either generally or with respect to any specific housing project
or projects, through or by an agent or agents which it may designate including any corporation or corporations which are or
shall be formed under the laws of this State, and for such purposes, DSHA may cause 1 or more corporations to be incorporated
under the laws of this State or may acquire the capital stock of any corporation or corporations. Any corporate agent, all
of the stock of which shall be owned by DSHA or its nominee or nominees, may to the extent permitted by the law, exercise
any of the powers conferred by this chapter upon DSHA, or as shall be conferred upon it by DSHA, as agent;
(24) Fund the operation of any agents it may designate or any authority by advancing moneys appropriated pursuant to § 4030
of this title;
(25) To do any act necessary or convenient to the exercise of the powers herein granted or reasonably implied including all
powers presently or hereafter granted to local housing authorities under Chapter 43 of this title;
(26) To agree to make such payments to the State or any political subdivisions thereof (which payments such bodies may accept)
as DSHA finds consistent with the maintenance of the low- and moderate-income rent character of housing projects or the achievement
of the purposes of this chapter;
(27) To establish and implement policies, and to take all actions deemed appropriate to mitigate adverse social conditions
and to eliminate drug and crime problems at DSHA's sites; and
(28) To provide housing assistance as a benefit, not an entitlement, and to require the beneficiaries to recognize their responsibilities
to DSHA and to their neighbors as conditions of continued assistance.
71 Del. Laws, c. 357, § 6.;
§ 4014. Liberal construction.
Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers
which DSHA might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter
shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of bonds, notes
and other obligations and refunding bonds under this chapter need not comply with the requirements of any other state law
applicable to the issuance of bonds, notes and other obligations and contracts for the construction and acquisition of any
housing developments undertaken pursuant to this chapter need not comply with any other state law applicable to contracts
for the construction and acquisition of state-owned property. No proceedings, notice or approval shall be required for the
issuance of any bonds, notes and other obligations or any instrument as security therefor, except as to an issue of bonds
subject to the requirements of § 4020 of this title relating to the Capital Reserve Fund, and the issuing officer of DSHA
shall coordinate any other issuance with the state bond issuing officers.
71 Del. Laws, c. 357, § 6.;
§ 4015. Audit of books and accounts.
The office of Auditor of Accounts shall cause an annual audit of the books and accounts of DSHA. The selection of the firm
to perform the annual audit of the books and accounts of DSHA shall be mutually agreed upon by the office of the Auditor of
Accounts and the Housing Director who shall consult and cooperate with each other in the selection, contract, employment and
scope of professional services to be rendered, provisions in Chapter 29 of Title 29 notwithstanding. The audit shall be performed
by a certified public accountant of recognized national standing and shall conform in all respects to the covenants contained
in all bond resolutions entered into by DSHA for the benefit of its bondholders. DSHA shall transfer funds, as requested by
the office of Auditor of Accounts, to cover the cost of the audit.
71 Del. Laws, c. 357, § 6.;
§ 4016. Bonds.
(a) DSHA may, with the approval of the issuing officer and subject to the authorization (if any) required by § 7402 of Title
29, issue bonds (including refunding bonds for the purpose of paying or retiring bonds previously issued by DSHA) from time
to time in such amounts as it may deem advisable for any of its corporate purposes. DSHA may issue such types of bonds as
it may determine, including bonds on which the principal and interest are payable:
(1) Exclusively from the income and revenues of any undertaking financed in whole or in part with the proceeds of such bonds;
(2) Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole
or in part with the proceeds of such bonds;
(3) From its revenues generally; or
(4) By grants, subsidies or other payments from the federal government.
Any of such bonds may be additionally secured by a pledge of any revenue or by a mortgage of any housing project, projects
or other property of DSHA or any of its agents or designees.
(b) Neither the issuing officer nor any person executing the bonds shall be liable personally on the bonds.
71 Del. Laws, c. 357, § 6.;
§ 4017. Forms and terms of bonds; disposition of proceeds.
(a) All bonds issued under the authority of this chapter shall be dated, shall bear interest at such rate or rates payable
semiannually or at such other time or times as shall be determined by resolution of DSHA, and shall mature at such time or
times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions
as may be fixed by the issuing officer prior to the issuance of the bonds. The principal of and the interest upon such bonds
may be made payable in any lawful medium. The issuing officer shall determine the form of the bonds, including any interest
coupons to be attached thereto, and shall fix the denominations of the bonds. Both principal of and interest on the bonds
shall be payable at such place or places as DSHA may designate.
(b) Bonds shall be signed by manual or facsimile signature of the Housing Director, and the seal of DSHA or a facsimile thereof
shall be affixed thereto or imprinted thereon. In case any person whose signature or facsimile thereof shall appear on any
bonds or coupons shall cease to be the Housing Director before the delivery of such bonds, such signature or facsimile shall,
nevertheless, be valid for all purposes, the same as if the Housing Director had remained in office until delivery.
(c) All bonds issued under this chapter shall have and are declared to have all the qualities and incidents of negotiable
instruments under the Uniform Commercial Code.
(d) Such bonds and the income therefrom shall be exempt from all taxation by this State or by any political subdivision, agency
or authority thereof.
(e) The bonds may be issued in coupon or registered form, or both, as the issuing officer may determine, and provision may
be made for the registration of any coupon bond as to principal alone or as to both principal and interest and for the reconversion
of any bonds registered both as to principal and interest into coupon bonds.
(f) The issuing officer may sell such bonds, either at public or private sale, in such manner and for such price as they may
determine to be for the best interest of DSHA.
(g) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution
of DSHA authorizing the issuance thereof or as set forth in the indenture securing their payment, which purposes may include
redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof and all legal and
other expenses of their issuance and shall be disbursed under such restrictions, if any, as said resolution or trust indenture
may provide.
(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times be
available to DSHA for the aforesaid purposes; provided however, that if the proceeds of the bonds of any issue shall exceed
the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used
for any purpose of DSHA authorized in this chapter or for the payment of the principal of or interest on its outstanding bonds.
(i) Prior to the preparation of definitive bonds, the issuing officer may issue temporary bonds, with or without coupons,
exchangeable for definitive bonds upon the issuance of the latter. The issuing officer may also provide for the replacement
of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings or
conditions which are specified and required by this chapter.
71 Del. Laws, c. 357, § 6.;
§ 4018. Bonds as legal investments for institutions and fiduciaries and as legal deposit.
The bonds issued under the authority of this chapter are declared to be securities in which all state and municipal officers
and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings
and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance
associations and other persons carrying on an insurance business and all administrators, executors, guardians, trustees and
other fiduciaries and all other persons whatsoever who now or may be authorized to invest in bonds or other obligations of
this State, may properly and legally invest any funds, including capital belonging to them or within their control, and such
bonds are declared securities which may properly and legally be deposited with and received by any state, county or municipal
officer or agency of this State for any purpose for which the deposit of bonds or other obligations of this State is now or
may hereafter be authorized by law.
71 Del. Laws, c. 357, § 6.;
§ 4019. Credit of State not pledged.
(a) Bonds issued under this chapter shall be payable exclusively from the revenues and other funds of DSHA and shall contain
the following statement on their face:
"The State of Delaware is not obligated to pay the principal of this bond nor the interest thereon, nor are the faith and
credit of the State pledged to the payment of the principal of, or interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the State to levy or
pledge any form of taxation whatever therefor or to make any appropriation for their payment, and the bonds shall not constitute
an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction; provided also that §
4020 of this title, relative to the Capital Reserve Fund, shall not be deemed to constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction.
71 Del. Laws, c. 357, § 6.;
§ 4020. Capital Reserve Fund.
(a) DSHA shall create and establish a special fund to secure the bonds, herein referred to as Capital Reserve Fund, and shall
pay into the Capital Reserve Fund:
(1) Any moneys appropriated and made available by the State for the purposes of such fund;
(2) Any proceeds of the sale of bonds, to the extent provided in the resolution of DSHA, authorizing the issuance thereof;
and
(3) Any other moneys which may be made available to DSHA for the purpose of such fund from any other source or sources.
All moneys held in the Capital Reserve Fund, except as hereinafter provided, shall be used solely for the payment of the principal
of bonds of DSHA as the same mature, the redemption or purchase of bonds of DSHA, the payment of interest on such bonds of
DSHA or the payment of any redemption premium required to be paid when such bonds are redeemed prior to the maturity. Moneys
in the Capital Reserve Fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of the
Fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on
all bonds of DSHA then outstanding, except for the purpose of paying principal and interest on bonds of DSHA maturing and
becoming due and for the payment of which other moneys of DSHA are not available. Any income or interest earned by, or increment
to, the Capital Reserve Fund due to the investment thereof may be transferred by DSHA to any other fund of DSHA to the extent
it does not reduce the amount of Capital Reserve Fund below the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year on all bonds of DSHA then outstanding.
(b) Except with respect to an issue, or portion of an issue, of bonds designated by resolution of DSHA as not being subject
to the requirements and provisions of this section, DSHA shall not issue bonds at any time if the maximum amount of principal
and interest maturing and becoming due in a succeeding fiscal year on the bonds then to be issued and on all other bonds of
DSHA then outstanding will exceed the amount of the Capital Reserve Fund at the time of issuance unless DSHA, at the time
of issuance of such bonds, shall deposit in the Fund from the proceeds of the bonds so to be issued, or otherwise, an amount
which, together with the amount then in the Fund, will be not less than the maximum amount of principal and interest maturing
and becoming due in any succeeding fiscal year on the bonds then to be issued and on all other bonds of DSHA then outstanding.
(c) To assure the continued operation and solvency of DSHA for the carrying out of the public purposes of this chapter, provision
is made for the accumulation in the Capital Reserve Fund of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any fiscal year on all bonds of DSHA then outstanding. In order to assure further such maintenance
of the Capital Reserve Fund, there may be annually appropriated and paid to DSHA for deposit in the Capital Reserve Fund such
sum, if any, as shall be certified by the Housing Director to the Governor and Director of the Office of Management and Budget,
as necessary to restore the Capital Reserve Fund to an amount equal to the maximum amount of principal and interest maturing
and becoming due in any fiscal year on the bonds of DSHA then outstanding. In any case where a deficiency occurs in the Capital
Reserve Fund, the Housing Director shall promptly make and deliver to the Governor and Director of the Office of Management
and Budget a certificate stating the amount required to restore the Capital Reserve Fund, and the Governor shall, as soon
as practicable during the current fiscal year, request an appropriation of such amount, and the amount so requested may be
appropriated and paid to DSHA for deposit into the Capital Reserve Fund.
(d) In computing the amount of the Capital Reserve Fund for the purposes of this section, securities in which all or a portion
of the fund is invested shall be valued in the manner provided in the resolution authorizing the issuance of the trust indenture
securing such bonds.
(e) Calculations of the amount of principal and interest maturing and becoming due in any succeeding fiscal year shall be
based upon the assumption that bonds of DSHA will, after said date of computation, cease to be outstanding by reason of the
payment of such bonds at their respective maturities or the payment of all moneys required to be paid into a sinking fund
on account of such bonds as may be required by the terms of any resolution or indenture pursuant to which such bonds have
been issued and the application of such sinking fund to the retirement of bonds in accordance with their terms.
(f) For the purposes of this section, the term "bonds" shall mean all obligations of DSHA bearing a maturity date more than
2 years after the date thereof, except any bonds, notes or other obligations of DSHA which are designated by resolution of
DSHA prior to the issuance thereof as being not subject to this section.
71 Del. Laws, c. 357, § 6; 75 Del. Laws, c. 88, § 21(14).;
§ 4021. Provisions of bonds and mortgages.
In connection with the issuance of bonds or the incurring of any obligation under a lease and to secure the payment of such
bonds or obligations, DSHA in addition to its other powers may:
(1) Pledge all or any part of its rents, fees or revenues to which its right then exists or may thereafter come into existence;
(2) Mortgage all or any part of its property, real or personal, then owned or thereafter acquired, including any of the public
domain owned or acquired by it;
(3) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against
permitting or suffering any lien thereon;
(4) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof;
(5) Covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or may thereafter
come into existence or against permitting or suffering any lien thereon;
(6) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise and as to the use and
disposition of the proceeds thereof;
(7) Covenant as to what other or additional debts may be incurred by it;
(8) Covenant that DSHA warrants the title to the premises;
(9) Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees
and other revenues and as to the use and disposition to be made thereof;
(10) Covenant as to the use of any or all of its property, real or personal;
(11) Create or authorize the creation of special funds segregating the proceeds of any loans or grants, the revenues of any
project or projects, reserves for principal and interest on its bonds and for operating contingencies and other reserves and
covenant as to the use and disposal of the moneys held in such funds;
(12) Redeem the bonds and covenant for their redemption and provide the terms and conditions thereof;
(13) Covenant against extending the time for the payment of its bonds or interest thereon;
(14) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the
amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(15) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the
use and disposition of insurance moneys;
(16) Vest in an obligee, in the event of a default by DSHA, the right to cure any such default and to advance any moneys necessary
for such purpose and covenant that the moneys so advanced become an additional obligation of DSHA with such interest, security
and priority as may be provided in any mortgage, lease or contract;
(17) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall
become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences
may be waived;
(18) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or
obligation;
(19) Covenant to surrender possession of a project or projects or parts thereof upon the happening of an event of default
and vest in an obligee the right, upon such default and without judicial proceedings, to take possession and use, operate,
manage and control such projects or any parts thereof and to collect and receive rents, fees and revenues arising therefrom
in the same manner as DSHA itself might do and to dispose of the moneys collected in accordance with the agreement of such
obligee with DSHA;
(20) Vest in a trustee or trustees the right to enforce any covenant to secure or pay the bonds or otherwise relating to such
bonds, provide for the powers and duties of such trustee or trustees, limit the liabilities thereof and provide the terms
and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant;
(21) Vest in a government or in a trustee the right, upon the happening of an event of default, to foreclose the mortgage
securing any bonds held by such government, through judicial proceedings or through the exercise of a power of sale without
judicial proceedings;
(22) Vest in other obligees the right, upon the happening of an event of default, to foreclose any mortgage through judicial
proceedings;
(23) Vest in any obligee the right to foreclose any such mortgage as to all or such part or parts of the property covered
thereby as such obligee shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings or the
sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage
on the parts of the mortgaged property not included in such proceedings or not sold as aforesaid;
(24) Make covenants other than, and in addition to, the covenants expressly authorized in this section of like or different
character and execute all instruments necessary or convenient in the exercise of the powers granted in this chapter or in
the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified,
as the government or any purchaser of the bonds of DSHA may require;
(25) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to
secure its bonds or, in the absolute discretion of DSHA, tend to make the bonds more marketable, notwithstanding that such
covenants, acts or things may not be enumerated in this section.
71 Del. Laws, c. 357, § 6.;
§ 4022. Trust indenture.
(a) At the discretion of the issuing officer each and any issue of such bonds may be secured by a trust indenture by and between
the issuing officer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within
or without this State.
(b) Such trust indenture may pledge or assign the revenues of DSHA but shall not create a security interest in or convey or
mortgage any real property owned, operated or maintained by DSHA. Either the resolution providing for the issuance of the
bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not
in violation of law, include covenants setting forth the duties of DSHA in relation to the acquisition, construction, improvement,
maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application
of all moneys.
(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and
to furnish such indenture bonds or to pledge such securities as may be required by DSHA. Such indenture may set forth the
rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as
is customary in trust indentures securing bonds and debentures of corporation.
(d) In addition to the foregoing, such trust indenture may contain such other provisions as the issuing officer may deem reasonable
and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture
may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related
or may be paid out of the revenues of DSHA.
71 Del. Laws, c. 357, § 6.;
§ 4023. Remedies of bondholders and trustees.
(a) Any holder of bonds issued under this chapter or any of the coupons attached thereto, and the trustee under the trust
indenture, if any, except to the extent the rights given by this chapter may be restricted by resolution passed before the
issuance of the bonds or by the trust indenture, may either at law or in equity by suit, action, mandamus or other proceedings
protect and enforce any and all rights under the laws of the United States or of this State or granted under this chapter
or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this chapter,
or by such resolution or trust indenture, to be performed by DSHA or any officer thereof, including the fixing, charging and
collecting of fares or charges for the use of any facility operated by DSHA.
(b) Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such
trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed
shall have and be entitled to exercise all the rights and powers of DSHA with respect to the facilities operated or maintained
by DSHA and all of the appropriate rights and powers of a receiver in equity.
71 Del. Laws, c. 357, § 6.;
§ 4024. Moneys as trust funds.
All moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or grants or other
contributions from any person corporate or otherwise, or government, or as fees and revenues shall be deemed to be trust funds,
to be held and applied solely as provided in this chapter. The issuing officer shall, in the resolution authorizing the issuance
of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fees and revenues
to be received, to any officer, agency, bank or trust company who shall act as trustee of such funds, and shall hold and apply
the same to the purposes of this chapter, subject to such regulations as this chapter and such resolution or trust indenture
may provide.
71 Del. Laws, c. 357, § 6.;
§ 4025. Subordination of mortgage to agreement with government.
DSHA may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government
of the operation and maintenance of the mortgaged property and the construction of improvements thereon. In such event, any
purchase or purchasers at a sale of the property of DSHA pursuant to a foreclosure of such mortgage or any other remedy in
connection therewith shall obtain title subject to such contract.
71 Del. Laws, c. 357, § 6.;
§ 4026. Powers relative to purchase of and sale to financial institutions of mortgage loans; loans to mortgage lenders.
DSHA shall have all the powers necessary or convenient to carry out and effectuate the purposes of this chapter, including
the following powers in addition to others herein granted:
(1) To invest in, purchase or to make commitments to purchase, and take assignments from mortgage lenders of notes and mortgages
evidencing loans for the construction, rehabilitation, purchase, leasing or refinancing of housing for persons and families
of low- and moderate-income in this State;
(2) To make loans to mortgage lenders upon terms and conditions requiring the proceeds thereof to be used by such mortgage
lenders for the making of new residential mortgages, upon the terms set forth in § 4027 of this title;
(3) To make commitments to purchase, and to purchase, service and sell mortgages insured by any department, agency or instrumentality
of the United States, and to make loans directly upon the security of any such mortgage; provided, that the underlying mortgage
loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation,
purchase or leasing of residential housing for persons and families of low- and moderate-income in this State;
(4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by DSHA;
(5) To enter into mortgage insurance agreements with mortgage lenders in connection with the lending of money by such institutions
to persons and families of low- or moderate-income for the purchase of housing;
(6) Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any
collateral securing its loans to mortgage lenders and acquire or take possession of such collateral and sell the same at public
or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the
interest of DSHA therein.
71 Del. Laws, c. 357, § 6.;
§ 4027. Terms and conditions of the purchase and sale to financial institutions of mortgage loans; loans to mortgage lenders.
(a) DSHA shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of such loans to
mortgage lenders and the application of the proceeds thereof.
Such rules and regulations shall be designed to effectuate the general purposes of this chapter and the following specific
objectives:
1. The expansion of the supply of funds in the State available for new residential mortgages;
2. The provision of the additional housing needed to remedy the shortage of adequate housing in the State and eliminate the
existence of a large number of substandard dwellings; and
3. The effective participation by mortgage lenders in the program authorized by this chapter and the restriction of the financial
return and benefit thereto from such program to that necessary and reasonable to induce such participation.
(b) All new residential mortgages made as required by this section shall comply with the applicable provisions of the laws
of the State, and, where federal law or the law of another jurisdiction governs the affairs of the mortgage lender, shall
comply with applicable provisions of such law.
71 Del. Laws, c. 357, § 6.;
§ 4028. Notification of application for Low Income Housing Tax Credit Program.
(a) Whenever a Low Income Housing Tax Credit Program application is submitted to the Delaware State Housing Authority, the
Housing Director shall notify by certified and regular mail any state senators and representatives in whose districts any
development project will be located. In addition, the Housing Director shall so notify the chief executive officer of any
local government in whose jurisdiction any development project will be located.
(b) Whenever a preliminary ranking of Low Income Housing Tax Credit Program applications is made by the Delaware State Housing
Authority, the Housing Director shall notify by certified and regular mail any state senators and representatives in whose
districts any development project will be located. In addition, the Housing Director shall so notify the chief executive officer
of any local government in whose jurisdiction any development project will be located.