§ 42-55-6 Powers relative to making loans.– The corporation shall have all of the powers necessary or convenient to carryout and effectuate the purpose and provisions of this chapter, including thefollowing powers in addition to others granted in this chapter:
(1) Make, undertake commitments to make, and participate inthe making of mortgage loans, including without limitation federally insuredmortgage loans, and to make temporary loans and advances in anticipation ofpermanent mortgage loans to housing sponsors or health care sponsors to financethe construction or rehabilitation of, or installation of energy savingimprovements to, residential housing designed and planned for occupancyprimarily by persons and families of low and moderate income or health carefacilities upon the terms and conditions set forth in § 42-55-9;
(2) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income who maypurchase residential housing or who own and occupy residential housing used assecurity for loans where the proceeds may be dispersed at such time or timesthat the corporation may determine, including without limitation persons andfamilies of low and moderate income who are eligible or potentially eligiblefor federally insured mortgage loans or federal mortgage loans. These loansshall be made only after a determination by the corporation that mortgage loansare not otherwise available, wholly or in part, from private lenders uponreasonably equivalent terms and conditions;
(3) Make, undertake commitments to make, and participate inthe making of loans to persons of low or moderate income for the purpose ofmaking energy saving improvements to residential housing. Any loan madepursuant to this paragraph may be secured by a mortgage or otherwise, shall berepaid, shall bear interest and shall be upon any terms and conditions that maybe determined by the corporation;
(4) Make and publish rules and regulations respecting thegrant of mortgage loans pursuant to this chapter, the regulation of borrowers,the admission of tenants and other occupants to housing developments pursuantto this chapter, and the construction of ancillary commercial facilities;
(5) Enter into agreements and contracts with housing sponsorsor health care sponsors under the provisions of this chapter;
(6) Institute any action or proceeding against any housingsponsor or health care sponsor or persons and families of low and moderateincome receiving a loan under the provisions hereof, or owning any housingdevelopment hereunder in any court of competent jurisdiction in order toenforce the provisions of this chapter or the terms and provisions of anyagreement or contract between the corporation and the recipients of loans underthe provisions hereof, or to foreclose its mortgage, or to protect the publicinterest, the occupants of the housing development, or the stockholders orcreditors, if any, of the sponsor. In connection with an action or proceedingit may apply for the appointment of a receiver to take over, manage, operate,and maintain the affairs of the housing sponsor or health care sponsor and thecorporation, through the agent it shall designate, is hereby authorized toaccept the appointment of the receiver of a sponsor when so appointed by acourt of competent jurisdiction. In the event of the reorganization of anyhousing sponsor or health care sponsor to the extent possible under theprovisions of law, the reorganization shall be subject to the supervision andcontrol of the corporation, and no reorganization shall be had without theprior written consent of the corporation. In the event of a judgment againstany housing sponsor or health care sponsor in any action not pertaining to theforeclosure of a mortgage, there shall be no sale of any of the real propertyincluded in any housing development, housing project, or health care facilitieshereunder of a sponsor except upon sixty (60) days' written notice to thecorporation. Upon receipt of that notice, the corporation shall take thosesteps that in its judgment may be necessary to protect the rights of allparties;
(7) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income for thepurpose of improving septic systems and wells on their residential property tosubstantially comply with standards as set by the department of environmentalmanagement and/or the department of health. Any loan made pursuant to thissubdivision may be secured by a mortgage or otherwise shall be repaid, shallbear interest, and shall be upon those terms and conditions that may bedetermined by the corporation;
(8) Make and participate in the making of grants to assist inthe construction, rehabilitation, or operation of residential housing;
(9) Make and publish rules and regulations respecting themaking of grants to assist in the construction, rehabilitation, or operation ofresidential housing;
(10) Provide grants to any existing private nonprofit housingprogram sponsor for the following use and purpose:
(i) Establish or expand an existing revolving loan fund, ifthe housing program sponsor matches the funds, those grants not to exceed onehundred thousand dollars ($100,000).
(ii) Provided, however, that grants shall not be made morefrequently than once per year and that the grants be made from funds held inthe corporation's reserve fund.
(iii) In the event that the private non-profit housingprogram sponsor should cease its operations, all unexpended funds shall revertback to the corporation;
(11) Guaranty "homeowners notes".
(i) A "homeowners note" is the promissory note secured by asecond mortgage of any eligible home buyer made payable to any person, firm,corporation or other entity loaning money to the eligible home buyer topurchase his or her principal residence. The homeowners note shall be in aform, at an interest rate, in denominations and upon other terms and conditionsestablished in rules and regulations promulgated by the corporation. Homeownersnotes may be used solely to assist in the financing of the purchase of aprincipal residence by eligible home buyers.
(ii) An eligible home buyer is a first-time buyer (defined asone who has not had an ownership interest in his or her principal residence forat least three (3) years) whose current income, as defined by federalregulation, does not exceed the median family income of Rhode Island residents,as determined annually by the U.S. Department of Housing and Urban Development.
(iii) The corporation shall qualify eligible borrowers andissue a commitment to guaranty the homeowners note upon the terms andconditions set forth in the commitment. The commitment of guaranty will bevalid for four (4) months after the date of issuance by the corporation.
(iv) The principal face amount of the homeowners note to beguaranteed shall be determined by a formula to be developed and recalculated bythe corporation, within thirty (30) days after new figures are determined bythe U.S. Department of Housing and Urban Development, as follows:
(A) The maximum principal amount for which eligible homebuyers may qualify for a guarantee is twenty percent (20%) of the median homeprice in the state of Rhode Island, as determined by the U.S. TreasuryDepartment.
(B) The formula shall provide for eligibility by incrementsof five hundred dollars ($500) with eligibility being rounded up to the nextincrement.
(C) The formula shall provide that a prospective home buyer'seligibility shall be for a principal amount determined by multiplying: twentypercent (20%) of the median home price in the state of Rhode Island times (X)thrice the percentage by which the home buyer falls below the Rhode Islandmedian family income, up to the maximum amount for which homeowners areeligible.
(v) The guaranty shall become effective at the time ofacquisition of the real estate; provided, that the eligible home buyer hascomplied with the terms and conditions of the commitment; the eligible homebuyer has granted to the payee of the note a mortgage on the residence subjectonly to a purchase money mortgage and real estate taxes not yet due andpayable; and a confirmed copy of the homeowners note and a certified copy ofthe recorded mortgage securing the note has been delivered to the corporation.
(vi) A homeowners note shall mature at the end of seven (7)years from the date of endorsement or upon the sale or transfer of the title tothe real estate securing the note, whichever shall first occur. Interest shallaccrue, in arrears, from the date of endorsement and become due and payable atmaturity of the homeowners note.
(vii) The corporation may promulgate any rules andregulations as may be necessary to implement the homeowners notes program.
(12) Establish the Environmentally Compromised HomeOpportunity (ECHO) loan program.
(i) The corporation may make, undertake commitments to make,and participate in the making of loans to persons owning residential property,the value of which has been significantly reduced by contamination.
(ii) Any loan made pursuant to this paragraph may be made onproperties which have been certified by the department of environmentalmanagement as (a) within the boundaries, or directly abutting a site, known tobe impacted by the release of hazardous materials or petroleum, or (b) withinthe boundaries, or directly abutting a site, listed on the National PrioritiesList as determined by the federal Comprehensive Environmental ResponseCompensation and Liability Act (CERCLA, as may from time to time be amended).
(iii) Any loan made pursuant to this paragraph may be securedby a mortgage or otherwise, shall be repaid, shall bear interest and shall beupon any terms and conditions that may be determined by the corporation; theprincipal amount of such loan shall not exceed twenty-five thousand dollars($25,000), but such loan shall not in any way limit any other loan or grantassistance which may otherwise be available.
(iv) The corporation shall have no liability under anyenvironmental statute or regulation due to any loan made pursuant to thisparagraph.
§ 42-55-6 Powers relative to making loans.– The corporation shall have all of the powers necessary or convenient to carryout and effectuate the purpose and provisions of this chapter, including thefollowing powers in addition to others granted in this chapter:
(1) Make, undertake commitments to make, and participate inthe making of mortgage loans, including without limitation federally insuredmortgage loans, and to make temporary loans and advances in anticipation ofpermanent mortgage loans to housing sponsors or health care sponsors to financethe construction or rehabilitation of, or installation of energy savingimprovements to, residential housing designed and planned for occupancyprimarily by persons and families of low and moderate income or health carefacilities upon the terms and conditions set forth in § 42-55-9;
(2) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income who maypurchase residential housing or who own and occupy residential housing used assecurity for loans where the proceeds may be dispersed at such time or timesthat the corporation may determine, including without limitation persons andfamilies of low and moderate income who are eligible or potentially eligiblefor federally insured mortgage loans or federal mortgage loans. These loansshall be made only after a determination by the corporation that mortgage loansare not otherwise available, wholly or in part, from private lenders uponreasonably equivalent terms and conditions;
(3) Make, undertake commitments to make, and participate inthe making of loans to persons of low or moderate income for the purpose ofmaking energy saving improvements to residential housing. Any loan madepursuant to this paragraph may be secured by a mortgage or otherwise, shall berepaid, shall bear interest and shall be upon any terms and conditions that maybe determined by the corporation;
(4) Make and publish rules and regulations respecting thegrant of mortgage loans pursuant to this chapter, the regulation of borrowers,the admission of tenants and other occupants to housing developments pursuantto this chapter, and the construction of ancillary commercial facilities;
(5) Enter into agreements and contracts with housing sponsorsor health care sponsors under the provisions of this chapter;
(6) Institute any action or proceeding against any housingsponsor or health care sponsor or persons and families of low and moderateincome receiving a loan under the provisions hereof, or owning any housingdevelopment hereunder in any court of competent jurisdiction in order toenforce the provisions of this chapter or the terms and provisions of anyagreement or contract between the corporation and the recipients of loans underthe provisions hereof, or to foreclose its mortgage, or to protect the publicinterest, the occupants of the housing development, or the stockholders orcreditors, if any, of the sponsor. In connection with an action or proceedingit may apply for the appointment of a receiver to take over, manage, operate,and maintain the affairs of the housing sponsor or health care sponsor and thecorporation, through the agent it shall designate, is hereby authorized toaccept the appointment of the receiver of a sponsor when so appointed by acourt of competent jurisdiction. In the event of the reorganization of anyhousing sponsor or health care sponsor to the extent possible under theprovisions of law, the reorganization shall be subject to the supervision andcontrol of the corporation, and no reorganization shall be had without theprior written consent of the corporation. In the event of a judgment againstany housing sponsor or health care sponsor in any action not pertaining to theforeclosure of a mortgage, there shall be no sale of any of the real propertyincluded in any housing development, housing project, or health care facilitieshereunder of a sponsor except upon sixty (60) days' written notice to thecorporation. Upon receipt of that notice, the corporation shall take thosesteps that in its judgment may be necessary to protect the rights of allparties;
(7) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income for thepurpose of improving septic systems and wells on their residential property tosubstantially comply with standards as set by the department of environmentalmanagement and/or the department of health. Any loan made pursuant to thissubdivision may be secured by a mortgage or otherwise shall be repaid, shallbear interest, and shall be upon those terms and conditions that may bedetermined by the corporation;
(8) Make and participate in the making of grants to assist inthe construction, rehabilitation, or operation of residential housing;
(9) Make and publish rules and regulations respecting themaking of grants to assist in the construction, rehabilitation, or operation ofresidential housing;
(10) Provide grants to any existing private nonprofit housingprogram sponsor for the following use and purpose:
(i) Establish or expand an existing revolving loan fund, ifthe housing program sponsor matches the funds, those grants not to exceed onehundred thousand dollars ($100,000).
(ii) Provided, however, that grants shall not be made morefrequently than once per year and that the grants be made from funds held inthe corporation's reserve fund.
(iii) In the event that the private non-profit housingprogram sponsor should cease its operations, all unexpended funds shall revertback to the corporation;
(11) Guaranty "homeowners notes".
(i) A "homeowners note" is the promissory note secured by asecond mortgage of any eligible home buyer made payable to any person, firm,corporation or other entity loaning money to the eligible home buyer topurchase his or her principal residence. The homeowners note shall be in aform, at an interest rate, in denominations and upon other terms and conditionsestablished in rules and regulations promulgated by the corporation. Homeownersnotes may be used solely to assist in the financing of the purchase of aprincipal residence by eligible home buyers.
(ii) An eligible home buyer is a first-time buyer (defined asone who has not had an ownership interest in his or her principal residence forat least three (3) years) whose current income, as defined by federalregulation, does not exceed the median family income of Rhode Island residents,as determined annually by the U.S. Department of Housing and Urban Development.
(iii) The corporation shall qualify eligible borrowers andissue a commitment to guaranty the homeowners note upon the terms andconditions set forth in the commitment. The commitment of guaranty will bevalid for four (4) months after the date of issuance by the corporation.
(iv) The principal face amount of the homeowners note to beguaranteed shall be determined by a formula to be developed and recalculated bythe corporation, within thirty (30) days after new figures are determined bythe U.S. Department of Housing and Urban Development, as follows:
(A) The maximum principal amount for which eligible homebuyers may qualify for a guarantee is twenty percent (20%) of the median homeprice in the state of Rhode Island, as determined by the U.S. TreasuryDepartment.
(B) The formula shall provide for eligibility by incrementsof five hundred dollars ($500) with eligibility being rounded up to the nextincrement.
(C) The formula shall provide that a prospective home buyer'seligibility shall be for a principal amount determined by multiplying: twentypercent (20%) of the median home price in the state of Rhode Island times (X)thrice the percentage by which the home buyer falls below the Rhode Islandmedian family income, up to the maximum amount for which homeowners areeligible.
(v) The guaranty shall become effective at the time ofacquisition of the real estate; provided, that the eligible home buyer hascomplied with the terms and conditions of the commitment; the eligible homebuyer has granted to the payee of the note a mortgage on the residence subjectonly to a purchase money mortgage and real estate taxes not yet due andpayable; and a confirmed copy of the homeowners note and a certified copy ofthe recorded mortgage securing the note has been delivered to the corporation.
(vi) A homeowners note shall mature at the end of seven (7)years from the date of endorsement or upon the sale or transfer of the title tothe real estate securing the note, whichever shall first occur. Interest shallaccrue, in arrears, from the date of endorsement and become due and payable atmaturity of the homeowners note.
(vii) The corporation may promulgate any rules andregulations as may be necessary to implement the homeowners notes program.
(12) Establish the Environmentally Compromised HomeOpportunity (ECHO) loan program.
(i) The corporation may make, undertake commitments to make,and participate in the making of loans to persons owning residential property,the value of which has been significantly reduced by contamination.
(ii) Any loan made pursuant to this paragraph may be made onproperties which have been certified by the department of environmentalmanagement as (a) within the boundaries, or directly abutting a site, known tobe impacted by the release of hazardous materials or petroleum, or (b) withinthe boundaries, or directly abutting a site, listed on the National PrioritiesList as determined by the federal Comprehensive Environmental ResponseCompensation and Liability Act (CERCLA, as may from time to time be amended).
(iii) Any loan made pursuant to this paragraph may be securedby a mortgage or otherwise, shall be repaid, shall bear interest and shall beupon any terms and conditions that may be determined by the corporation; theprincipal amount of such loan shall not exceed twenty-five thousand dollars($25,000), but such loan shall not in any way limit any other loan or grantassistance which may otherwise be available.
(iv) The corporation shall have no liability under anyenvironmental statute or regulation due to any loan made pursuant to thisparagraph.
§ 42-55-6 Powers relative to making loans.– The corporation shall have all of the powers necessary or convenient to carryout and effectuate the purpose and provisions of this chapter, including thefollowing powers in addition to others granted in this chapter:
(1) Make, undertake commitments to make, and participate inthe making of mortgage loans, including without limitation federally insuredmortgage loans, and to make temporary loans and advances in anticipation ofpermanent mortgage loans to housing sponsors or health care sponsors to financethe construction or rehabilitation of, or installation of energy savingimprovements to, residential housing designed and planned for occupancyprimarily by persons and families of low and moderate income or health carefacilities upon the terms and conditions set forth in § 42-55-9;
(2) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income who maypurchase residential housing or who own and occupy residential housing used assecurity for loans where the proceeds may be dispersed at such time or timesthat the corporation may determine, including without limitation persons andfamilies of low and moderate income who are eligible or potentially eligiblefor federally insured mortgage loans or federal mortgage loans. These loansshall be made only after a determination by the corporation that mortgage loansare not otherwise available, wholly or in part, from private lenders uponreasonably equivalent terms and conditions;
(3) Make, undertake commitments to make, and participate inthe making of loans to persons of low or moderate income for the purpose ofmaking energy saving improvements to residential housing. Any loan madepursuant to this paragraph may be secured by a mortgage or otherwise, shall berepaid, shall bear interest and shall be upon any terms and conditions that maybe determined by the corporation;
(4) Make and publish rules and regulations respecting thegrant of mortgage loans pursuant to this chapter, the regulation of borrowers,the admission of tenants and other occupants to housing developments pursuantto this chapter, and the construction of ancillary commercial facilities;
(5) Enter into agreements and contracts with housing sponsorsor health care sponsors under the provisions of this chapter;
(6) Institute any action or proceeding against any housingsponsor or health care sponsor or persons and families of low and moderateincome receiving a loan under the provisions hereof, or owning any housingdevelopment hereunder in any court of competent jurisdiction in order toenforce the provisions of this chapter or the terms and provisions of anyagreement or contract between the corporation and the recipients of loans underthe provisions hereof, or to foreclose its mortgage, or to protect the publicinterest, the occupants of the housing development, or the stockholders orcreditors, if any, of the sponsor. In connection with an action or proceedingit may apply for the appointment of a receiver to take over, manage, operate,and maintain the affairs of the housing sponsor or health care sponsor and thecorporation, through the agent it shall designate, is hereby authorized toaccept the appointment of the receiver of a sponsor when so appointed by acourt of competent jurisdiction. In the event of the reorganization of anyhousing sponsor or health care sponsor to the extent possible under theprovisions of law, the reorganization shall be subject to the supervision andcontrol of the corporation, and no reorganization shall be had without theprior written consent of the corporation. In the event of a judgment againstany housing sponsor or health care sponsor in any action not pertaining to theforeclosure of a mortgage, there shall be no sale of any of the real propertyincluded in any housing development, housing project, or health care facilitieshereunder of a sponsor except upon sixty (60) days' written notice to thecorporation. Upon receipt of that notice, the corporation shall take thosesteps that in its judgment may be necessary to protect the rights of allparties;
(7) Make, undertake commitments to make, and participate inthe making of mortgage loans to persons of low or moderate income for thepurpose of improving septic systems and wells on their residential property tosubstantially comply with standards as set by the department of environmentalmanagement and/or the department of health. Any loan made pursuant to thissubdivision may be secured by a mortgage or otherwise shall be repaid, shallbear interest, and shall be upon those terms and conditions that may bedetermined by the corporation;
(8) Make and participate in the making of grants to assist inthe construction, rehabilitation, or operation of residential housing;
(9) Make and publish rules and regulations respecting themaking of grants to assist in the construction, rehabilitation, or operation ofresidential housing;
(10) Provide grants to any existing private nonprofit housingprogram sponsor for the following use and purpose:
(i) Establish or expand an existing revolving loan fund, ifthe housing program sponsor matches the funds, those grants not to exceed onehundred thousand dollars ($100,000).
(ii) Provided, however, that grants shall not be made morefrequently than once per year and that the grants be made from funds held inthe corporation's reserve fund.
(iii) In the event that the private non-profit housingprogram sponsor should cease its operations, all unexpended funds shall revertback to the corporation;
(11) Guaranty "homeowners notes".
(i) A "homeowners note" is the promissory note secured by asecond mortgage of any eligible home buyer made payable to any person, firm,corporation or other entity loaning money to the eligible home buyer topurchase his or her principal residence. The homeowners note shall be in aform, at an interest rate, in denominations and upon other terms and conditionsestablished in rules and regulations promulgated by the corporation. Homeownersnotes may be used solely to assist in the financing of the purchase of aprincipal residence by eligible home buyers.
(ii) An eligible home buyer is a first-time buyer (defined asone who has not had an ownership interest in his or her principal residence forat least three (3) years) whose current income, as defined by federalregulation, does not exceed the median family income of Rhode Island residents,as determined annually by the U.S. Department of Housing and Urban Development.
(iii) The corporation shall qualify eligible borrowers andissue a commitment to guaranty the homeowners note upon the terms andconditions set forth in the commitment. The commitment of guaranty will bevalid for four (4) months after the date of issuance by the corporation.
(iv) The principal face amount of the homeowners note to beguaranteed shall be determined by a formula to be developed and recalculated bythe corporation, within thirty (30) days after new figures are determined bythe U.S. Department of Housing and Urban Development, as follows:
(A) The maximum principal amount for which eligible homebuyers may qualify for a guarantee is twenty percent (20%) of the median homeprice in the state of Rhode Island, as determined by the U.S. TreasuryDepartment.
(B) The formula shall provide for eligibility by incrementsof five hundred dollars ($500) with eligibility being rounded up to the nextincrement.
(C) The formula shall provide that a prospective home buyer'seligibility shall be for a principal amount determined by multiplying: twentypercent (20%) of the median home price in the state of Rhode Island times (X)thrice the percentage by which the home buyer falls below the Rhode Islandmedian family income, up to the maximum amount for which homeowners areeligible.
(v) The guaranty shall become effective at the time ofacquisition of the real estate; provided, that the eligible home buyer hascomplied with the terms and conditions of the commitment; the eligible homebuyer has granted to the payee of the note a mortgage on the residence subjectonly to a purchase money mortgage and real estate taxes not yet due andpayable; and a confirmed copy of the homeowners note and a certified copy ofthe recorded mortgage securing the note has been delivered to the corporation.
(vi) A homeowners note shall mature at the end of seven (7)years from the date of endorsement or upon the sale or transfer of the title tothe real estate securing the note, whichever shall first occur. Interest shallaccrue, in arrears, from the date of endorsement and become due and payable atmaturity of the homeowners note.
(vii) The corporation may promulgate any rules andregulations as may be necessary to implement the homeowners notes program.
(12) Establish the Environmentally Compromised HomeOpportunity (ECHO) loan program.
(i) The corporation may make, undertake commitments to make,and participate in the making of loans to persons owning residential property,the value of which has been significantly reduced by contamination.
(ii) Any loan made pursuant to this paragraph may be made onproperties which have been certified by the department of environmentalmanagement as (a) within the boundaries, or directly abutting a site, known tobe impacted by the release of hazardous materials or petroleum, or (b) withinthe boundaries, or directly abutting a site, listed on the National PrioritiesList as determined by the federal Comprehensive Environmental ResponseCompensation and Liability Act (CERCLA, as may from time to time be amended).
(iii) Any loan made pursuant to this paragraph may be securedby a mortgage or otherwise, shall be repaid, shall bear interest and shall beupon any terms and conditions that may be determined by the corporation; theprincipal amount of such loan shall not exceed twenty-five thousand dollars($25,000), but such loan shall not in any way limit any other loan or grantassistance which may otherwise be available.
(iv) The corporation shall have no liability under anyenvironmental statute or regulation due to any loan made pursuant to thisparagraph.
