§ 122A-5.8. Distressed multi-family residential rental housing provisions.
§122A‑5.8. Distressed multi‑family residential rental housingprovisions.
(a) The GeneralAssembly hereby finds and determines that a serious shortage of decent, safeand sanitary multi‑family residential rental housing which persons andfamilies of low and moderate income in the State can afford continues to exist;that it is in the best interests of the State to continue to promote andmaintain the viability of such housing and to encourage private enterprise tosponsor, build and rehabilitate additional multi‑family residentialrental housing for such low and moderate income persons and families; thatcertain multi‑family residential rental housing projects financed by theAgency are currently experiencing financial difficulties due to low occupancylevels; that measures to facilitate higher occupancy levels by extendingoccupancy on a temporary basis to those with incomes in excess of required lowand moderate levels will help to maintain certain multi‑familyresidential rental housing for persons and families of low and moderate incometo prevent foreclosure and the use of such facilities without regard to incomelimitations; and that the Agency in providing such temporary assistance ispromoting the health, welfare and property of all citizens of the State and isserving a public purpose for the benefit of the general public.
(b) "Distressedrental housing project" means any multi‑family residential rentalhousing project heretofore or hereafter financed by the Agency that, asdetermined by resolution of the Board of Directors of the Agency, has anoccupancy level below that required for sustaining operation and as a resultthereof needs to increase its occupancy levels in order to avoid foreclosureand the subsequent use of such facilities without regard to the Agency's incomelimitations. In determining the foregoing, the Board of Directors of theAgency shall take into consideration (1) occupancy rates of the project, (2)market conditions affecting the project, (3) costs of operation of the project,(4) debt service for the project, (5) management of the project and such otherfactors as the Board of Directors may deem relevant.
(c) The Board ofDirectors of the Agency may determine, by resolution, to permit not in excessof ten percent (10%) of the rental units in any distressed rental housingproject to be rented to persons or families without regard to income until theproject's occupancy levels, in the judgment of the Agency, will sustainoperations at a level sufficient to prevent delinquency or default.
(d) The Board ofDirectors may also determine, by resolution, to permit additional rental unitsat any such distressed rental housing project, to be rented to persons orfamilies without regard to income, subject to the restriction contained in subsection(c) of this section, provided that: (1) the units therein that have beenavailable for rental without regard to income have been available for a periodof time not less than three months, (2) the Agency has determined thatpermitting additional units, in excess of ten percent (10%), to be rentedwithout regard to income is necessary in order for such distressed rentalhousing project to avoid foreclosure, and (3) the total number of housing unitsat any distressed rental housing project rented without regard to income shallnot exceed fifteen percent (15%) of the total number of units therein.
(e) Once a distressedrental housing project attains sustaining occupancy at a level satisfactory tothe Agency, the Agency will thereafter require the owners of such distressedrental housing project to rent only to persons and families of low and moderateincome and will require that any units that were leased without regard toincome limitations pursuant to the provisions of this section will next beleased, when such units become vacant, only to persons and families whoseincomes fall within the then current Agency income limitations. (1987,c. 305, s. 1; 1989, c. 454, ss. 1‑3; 1989, c. 454, s. 3.)