[§201H-124]  Rental assistance contracts. (a)  The corporation may enter into a rental assistance contract and aregulatory agreement with the owner of an eligible project, when the owner ofan eligible project is other than the corporation.

(b)  Prior to the execution of a rentalassistance contract, the corporation may execute an agreement to enter into arental assistance contract with an owner.  The agreement shall provide for theexecution of a rental assistance contract upon satisfaction of the terms setforth in the agreement and otherwise established by the corporation.  Eachrental assistance contract heretofore entered into by the corporation thatprovided that rental assistance payments shall be made solely from the earningson the investment of the rental assistance revolving fund shall hereafter,without modification of the contracts, be payable from the aggregate principalsum and the accumulated earnings in the rental assistance revolving fund.

(c)  A rental assistance contract and any subsidyof tenants' rents in projects developed under this subpart shall be for a termnot in excess of thirty-five years and shall be approved by the board ofdirectors of the corporation.  Upon that approval by the corporation, thedirector of finance shall be authorized to guarantee the obligation of thecorporation for the term of the rental assistance contract or the subsidy oftenants' rents in an amount equal to the aggregate obligation of thecorporation to make assistance payments; provided that the aggregate of all ofthe outstanding guarantees shall not exceed $100,000,000.  Pursuant to thatguarantee, the corporation shall make annual rental payments to the owner inaccordance with the approved rental assistance contract or to the tenants inaccordance with the approved subsidy.

(d)  Each rental assistance contract shall setforth a maximum annual rental assistance payment amount.  The corporation shallestablish procedures for determining the maximum annual rental assistancepayment amount and may consider the following:

(1)  The cost of constructing the eligible project;

(2)  The estimated annual operating cost of theeligible project;

(3)  The estimated maximum rentals that may be chargedfor dwelling units in the eligible project;

(4)  The amount of funds available for the funding ofrental assistance contracts;

(5)  The number of eligible projects requiringassistance under this subpart; and

(6)  A restricted rate of return on equity to theowner, which rate shall be established by the corporation by rule. [L 2006, c180, pt of §4]