[§201H-125]  Rental assistance program. 
(a)  Prior to the execution of a rental assistance contract and annually
thereafter, the owner shall submit a proposed rental schedule to the
corporation for approval.  The schedule shall list every rental unit in the
project and shall designate which units are to be maintained for eligible
tenants.



(b)  The corporation shall establish procedures
for evaluating the rental schedules submitted pursuant to this section, and may
consider the following:



(1)  The size of and number of bedrooms in the units
comprising the eligible project;



(2)  The location of the project and its type (whether
high‑rise, mid-rise, or low-rise);



(3)  The percentage of units being maintained for
eligible tenants; and



(4)  The rentals prevalent in the open market for
comparable units.



(c)  Annually, following the approval of the
rental schedule submitted pursuant to subsection (a), the corporation shall
determine the amount of rental assistance payments payable to the owner for the
forthcoming year; provided that the amount shall not exceed the maximum annual
rental assistance payment amount determined in accordance with section
201H-124.  The amount determined pursuant to this subsection shall take into
account the estimated amount to be derived by the owner from rentals to be
charged for the forthcoming year and the limited rate of return on equity
permitted in accordance with section 201H-124(d)(6).



(d)  The corporation shall establish standards
and requirements for:



(1)  The awarding of rental assistance contracts and
the allocation of annual rental assistance payments;



(2)  The form of lease to be utilized by the owner in
renting units in an eligible project;



(3)  The marketing and tenant selection and admission
processes to be employed by the owner with respect to an eligible project; and



(4)  The maintenance and operation of eligible
projects.



(e)  The corporation shall establish procedures
for:



(1)  The annual review of rental schedules for
eligible projects;



(2)  The periodic review of the income of tenants
renting units in eligible projects; and



(3)  The periodic inspection of eligible projects to
monitor the owners' compliance with the terms and conditions of their rental
assistance contracts.



(f)  When an eligible project is not owned by
the corporation, the corporation shall be entitled to share in the appreciation
in value of units maintained for eligible tenants within an eligible project
realized at the time of refinancing or prepayment of the eligible project
loan.  The corporation's share shall be calculated by multiplying the
appreciation in value of units maintained for eligible tenants realized upon
refinancing or prepayment by the ratio of the owner's equity to the discounted
value of the aggregate rental assistance payments.  The discount rate shall be
established by rules adopted by the corporation.



The corporation shall exempt projects owned by
a county from the shared appreciation requirement set forth in this subsection
if all of the following requirements are met:



(1)  The funds derived by the county as a result of
appreciation in value of the units are used for housing projects wherein:



(A)  At least sixty per cent of the project is
affordable to families earning one hundred per cent or below of the applicable
area median income; and



(B)  At least half of the foregoing sixty per
cent is affordable to families earning eighty per cent or below of the
applicable area median income; and



(2)  The project from which the appreciation in value
is derived remains as affordable as it was prior to the refinancing or
prepayment of the eligible project loan. [L 2006, c 180, pt of §4]