16.5C - SPECIFIC PROGRAM POWERS.
16.5C SPECIFIC PROGRAM POWERS.
In addition to the general powers of the authority, the authority
shall have all powers convenient and necessary to carry out its
programs, including but not limited to the power to:
1. Make property improvement loans and mortgage loans, including
but not limited to mortgage loans insured, guaranteed, or otherwise
secured by the federal government or by private mortgage insurers, to
housing sponsors to provide financing of adequate housing for low or
moderate income families, elderly families, families which include
one or more persons with disabilities, child foster care facilities,
and health care facilities.
2. Provide down payment grants on behalf of low and moderate
income families to nonprofit sponsors to defray all or part of the
down payment on real property that is transferred by such sponsors to
such families under the terms of the lease-purchase program.
3. Make grants and temporary loans, at interest rates and on
terms as determined convenient and necessary by the authority, to
defray the local contribution requirement for housing sponsors who
apply for rent supplement assistance, to defray temporary housing
costs that result from displacement by natural or other disaster, and
to defray a portion of the expenses required to develop and initiate
housing which deals creatively with housing problems of low or
moderate income families, elderly families, and families which
include one or more persons with disabilities.
4. Make temporary loans, at interest rates and on terms as
determined convenient and necessary by the authority, to defray
development costs for housing for low or moderate income families
including but not limited to payments for options on sites; deposits
on contracts and payments for purchase; legal and organizational
expenses including attorney fees, project manager, clerical, and
other staff salaries, office rent, and other additional expenses;
payment of fees for preliminary feasibility studies and advances for
planning, engineering, and architectural work; expenses for tenant
surveys and market analysis; and necessary application and other
fees.
5. Make or participate in the making of property improvement
loans or mortgage loans for rehabilitation or preservation of
existing dwellings. The authority may issue housing assistance fund
notes payable solely from the housing assistance fund.
6. Renegotiate a mortgage loan or loan to a mortgage lender in
default; waive a default or consent to the modification of the terms
of a mortgage loan or a loan to a mortgage lender; forgive or forbear
all or part of a mortgage loan or a loan to a mortgage lender; and
commence, prosecute, and enforce a judgment in any action, including
but not limited to a foreclosure action, to protect or enforce any
right conferred upon the authority by law, mortgage loan agreement,
contract, or other agreement, and in connection with any such action,
bid for and purchase the property or acquire or take possession of
it, complete, administer, and pay the principal of and interest on
any obligations incurred in connection with the property, and dispose
of and otherwise deal with the property in a manner as the authority
deems advisable to protect its interests.
7. Designate areas of economic distress for purposes of section
103A(k)(3)(A)(i) of the Internal Revenue Code.
8. Purchase, and make advance commitments to purchase,
residential mortgage loans from mortgage lenders at prices and upon
terms and conditions it determines consistent with its goals and
legislative findings. However, the total purchase price for all
residential mortgage loans which the authority commits to purchase
from a mortgage lender at any one time shall not exceed the total of
the unpaid principal balances of the residential mortgage loans
purchased. Mortgage lenders are authorized to sell residential
mortgage loans to the authority in accordance with this section and
the rules of the authority. The authority may charge a mortgage
lender a commitment fee or other fees as set by rule as a condition
for the authority purchasing residential mortgage loans.
9. Sell or make advanced commitments to sell residential mortgage
loans in the organized or unorganized secondary mortgage market. The
authority may issue and sell securities that are secured by
residential mortgage loans held by the authority. The authority may
aggregate the residential mortgage loans sold in the secondary market
or used as security on the mortgage-backed securities. The amount of
mortgage-backed securities sold shall not exceed the principal of the
mortgages retained by the authority as security.
10. File a lien on property where appropriate, convenient, and
necessary in carrying out a program. Section History: Recent Form
2007 Acts, ch 54, §20