55:14K-86.1 - Certain funds used for acquisition, rehabilitation of certain properties
55:14K-86.1 Certain funds used for acquisition, rehabilitation of certain properties.
4.The agency shall set aside all $10,800,000 of the funds appropriated to the Mortgage and Neighborhood Stabilization Financing Assistance Program Fund to be used for the purpose of financing the acquisition and rehabilitation of eligible properties by qualified entities subject to the following requirements:
a.$8,600,000 of the funds appropriated to the Mortgage and Neighborhood Stabilization Financing Assistance Program Fund shall be used to provide loans or permanent loan capital to Community Development Financial Institutions for such purposes.
b.In order to be eligible to receive funds under this section, a Community Development Financial Institution shall demonstrate to the agency, in such form and manner as the agency shall prescribe:
(1)that it is financially sound;
(2)that it has experience financing the acquisition and rehabilitation of housing in the State of New Jersey;
(3)that it has a plan for the utilization of funds received under this section compliant with the requirements of subsection c. of this section and appropriate to further the acquisition and rehabilitation of eligible properties by qualified entities; and
(4)any other eligibility criteria as the agency may prescribe.
c.A Community Development Financial Institution receiving funds under this section, shall use these funds to provide direct loans, establish lines of credit, or provide credit enhancements for loan pools or loans by third parties as may be appropriate to further the acquisition and rehabilitation of eligible properties by qualified entities.
d.A Community Development Financial Institution receiving funds under this section, shall maximize the extent to which those funds will leverage private financing.
e.All loans made by Community Development Financial Institutions under this section shall be secured by a mortgage on the subject property.
f.Community Development Financial Institutions receiving funds under this section shall adopt written loan criteria as the agency may prescribe for all loans made, which shall take into account the development capacity and financial soundness of the loan recipient, market conditions in the areas in which eligible properties are located, and the reuse potential of such properties.
g.A Community Development Financial Institution receiving funds under this section shall provide semi-annual reports to the agency, in such form and manner as the agency shall prescribe, on activities carried out with those funds and the compliance of the institution with the requirements of this section and the regulations adopted thereunder.
L.2009, c.334, s.4.