§201H-202  Rental housing trust fund.  (a) 
There is established the rental housing trust fund to be administered by the
corporation.



(b)  An amount from the fund, to be set by the
corporation and authorized by the legislature, may be used for administrative
expenses incurred by the corporation in administering the fund; provided that
fund moneys may not be used to finance day-to-day administrative expenses of
projects allotted fund moneys.



(c)  The following may be deposited into the
fund: appropriations made by the legislature, private contributions, repayment
of loans, interest, other returns, and moneys from other sources.



(d)  The fund shall be used to provide loans or
grants for the development, pre-development, construction, acquisition,
preservation, and substantial rehabilitation of rental housing units.  Permitted
uses of the fund may include but are not limited to planning, design, land
acquisition, costs of options, agreements of sale, downpayments, equity
financing, capacity building of nonprofit housing developers, or other housing
development services or activities as provided in rules adopted by the
corporation pursuant to chapter 91.  The rules may provide for a means of
recapturing loans or grants made from the fund if a rental housing project
financed under the fund is refinanced or sold at a later date.  The rules may
also provide that moneys from the fund shall be leveraged with other financial
resources to the extent possible.



(e)  Moneys available in the fund shall be used
for the purpose of providing, in whole or in part, loans or grants for rental
housing projects in the following order of priority:



(1)  Projects or units in projects that are allocated
low‑income housing credits pursuant to the state housing credit ceiling
under section 42(h) of the Internal Revenue Code of 1986, as amended, or
projects or units in projects that are funded by programs of the United States
Department of Housing and Urban Development and United States Department of
Agriculture Rural Development wherein:



(A)  At least fifty per cent of the available
units are for persons and families with incomes at or below eighty per cent of
the median family income of which at least five per cent of the available units
are for persons and families with incomes at or below thirty per cent of the
median family income; and



(B)  The remaining units are for persons and
families with incomes at or below one hundred per cent of the median family
income;



provided that the corporation may establish rules
to ensure full occupancy of fund projects; and



(2)  Mixed-income rental projects or units in a mixed‑income
rental project wherein all of the available units are for persons and families
with incomes at or below one hundred forty per cent of the median family
income.



(f)  The corporation shall submit an annual
report to the legislature no later than twenty days prior to the convening of
each regular session describing the projects funded and, with respect to rental
housing projects targeted for persons and families with incomes at or below
thirty per cent of the median family income, its efforts to develop those
rental housing projects, a description of proposals submitted for this target
group and action taken on the proposals, and any barriers to developing housing
units for this target group.



(g)  For the purposes of this subpart, the
applicable median family income shall be the median family income for the
county or standard metropolitan statistical area in which the project is
located as determined by the United States Department of Housing and Urban
Development, as adjusted from time to time.



(h)  The corporation may provide loans and
grants under this section; provided that the corporation shall establish
loan-to-value ratios to protect the fund from inordinate risk and that under no
circumstances shall the rules permit the loan‑to-value ratio to exceed
one hundred per cent; and provided further that the underwriting guidelines
include a debt-coverage ratio of not less than 1.0 to 1.



(i)  For the period commencing July 1, 2005,
through June 30, 2009, the fund may be used to provide grants for rental
units set aside for persons and families with incomes at or below thirty per
cent of the median family income in any project financed in whole or in part by
the fund in proportion of those units to the total number of units in the
project.  At the conclusion of the period described in this subsection, the
corporation shall report to the legislature on the number and use of grants
provided and whether the grants were an effective use of the funds for purposes
of developing rental housing for families at or below thirty per cent of the
median family income. [L 2006, c 180, pt of §4; am L 2007, c 249, §33]