[§201H-95]  Eligible project loans. (a)  The corporation shall establish requirements for rental housing projectsto be financed by an eligible project loan, and may consider the location, age,condition, and other characteristics of the project.

(b)  The corporation shall establishrestrictions on the terms, maturities, interest rates, and other requirementsfor eligible project loans.

(c)  The corporation shall establishrestrictions on the prepayment of eligible project loans and on the transfer ofownership of the projects securing eligible project loans.

(d)  The corporation shall require that anysums deferred on land leased at nominal rates by the corporation to the ownerof a rental housing project shall be recovered by the corporation at the timean eligible project loan is prepaid, whether as a result of refinancing of theeligible project loan or otherwise, to the extent that funds are available fromthe refinancing or other method by which the eligible project loan is paid infull prior to its due date.

(e)  The corporation shall enter into anagreement with the owner of a rental housing project to be financed with aneligible project loan which shall provide that in the event that the eligibleproject loan is at any time prepaid for the purpose of converting the rentalunits of such project to ownership units, all tenants at the time of theproposed conversion shall have the first option to purchase their units.

(f)  All eligible project loans shall complywith applicable state and federal laws. [L 2006, c 180, pt of §4]