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



(b)  The corporation shall establish
restrictions on the terms, maturities, interest rates, and other requirements
for eligible project loans.



(c)  The corporation shall establish
restrictions on the prepayment of eligible project loans and on the transfer of
ownership of the projects securing eligible project loans.



(d)  The corporation shall require that any
sums deferred on land leased at nominal rates by the corporation to the owner
of a rental housing project shall be recovered by the corporation at the time
an eligible project loan is prepaid, whether as a result of refinancing of the
eligible project loan or otherwise, to the extent that funds are available from
the refinancing or other method by which the eligible project loan is paid in
full prior to its due date.



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



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