67-38.007. Terms of the PLP Loan

(1) The PLP Loan shall bear an interest rate of 1%.

(2) The PLP Loan shall be secured by such customary documents and collateral as are necessary to ensure repayment in accordance with the terms and conditions approved by the Corporation.

(3) The PLP Loan shall be non-amortizing with principal and interest deferred until the Maturity Date. The Corporation is authorized to forgive such loan and thereby make a grant to the Applicant for any monies that are unable to be repaid due to the Applicant’s inability to obtain construction or permanent financing for the Development. The Corporation shall not forgive the portion of the PLP Loan, which is collateralized by a mortgage, pledged capital funds or other collateral approved to the Corporation to the extent such loan could be repaid from the sale of the mortgaged property or from other collateral securing the loan.

(4) The mortgage securing the PLP Loan shall be in a first or second lien position and shall not share priority with any other liens unless approved by the Board.

(5) With respect to rental Developments, the PLP Loan’s Maturity Date shall be on the earlier of:

(a) The date of closing on the first source of permanent or construction loan for the Development, or

(b) The date of closing on the tax credit partnership and receipt of the initial disbursement, or

(c) Three years from the date of execution of the loan documents by the Corporation or other such extended loan Maturity Date approved by the Board.

(6) With respect to home ownership Developments, the PLP Loan’s Maturity Date shall be on the earlier of:

(a) On a prorated basis upon the sale of each home, upon the recommendation of the Credit Underwriter or Technical Assistance Provider and a partial release payment in an amount acceptable to the Credit Underwriter or Technical Assistance Provider and the Corporation, or

(b) Three years from the date of execution of the loan documents by the Corporation or other such extended loan maturity date approved by the Board.

(7) The Corporation shall extend the term of the PLP Loan for an additional period if circumstances exist and if such extension would not jeopardize the Corporation’s security interest. Submission and approval of a request for an extension of the term of a PLP Loan shall be subject to the following:

(a) For an extension up to one year, the Developer shall submit, along with the TAP a written request detailing the progress of the Development, barriers to the Development’s progress and a revised timeline.

(b) An additional extension of up to one year requested at the conclusion of the initial approved one year extension shall require the recommendation of the Credit Underwriter or the Technical Assistance Provider as directed by the Corporation that an extension of the PLP Loan is likely to result in the successful completion of the Development; and,

(c) Submission of:

1. A revised Development Plan, approved by the Technical Assistance Provider, reflecting the reasons for the extension and the tasks and activities to be completed during the extension period,

2. Evidence of the Applicant’s ability to complete the Development, and,

3. An alternate financing plan in the event the original financing source(s) withdraws.

(8) Prepayment of the PLP Loan shall be permitted without penalty.

(9) The Corporation may renegotiate and extend the PLP Loan.  Such renegotiations shall be based upon:

(a) Documentation and certification by the Applicant that funds are not available to repay the Note upon maturity;

(b) A plan for the repayment of the loan at the new Maturity Date;

(c) Assurance that the security interest of the Corporation will not be jeopardized by the new term(s); and,

(d) Industry standard terms which may include amortizing loans requiring regularly scheduled payments of principal and interest. All loan renegotiation requests, including requests for extension, must be submitted in writing to the Director of Special Assets and contain the specific details of the renegotiation.

(10) Upon determination by the Board that other remedies are ineffectual or non-existent and that the best interest of the Corporation is served by acceleration of the PLP Loan. The PLP Loan shall be accelerated if any of the following occurs:

(a) Proceeds of the PLP Loan are used for any purpose not specified in the Development Plan, the documents evidencing or securing the PLP Loan, the Act or this rule chapter, or

(b) Sale, transfer, or conveyance of the Development without the prior written approval of the Corporation, as set forth in Rule 67-38.012, F.A.C.

(11) The Applicant shall submit electronic progress reports evidencing successful completion of the requisite tasks and activities set forth in the Development Plan to the Technical Assistance Provider twice annually as determined by the Corporation. The Technical Assistance Provider shall submit the reports to the Corporation. Reports are due to the Corporation by the 15th day of July and January for so long as funds are outstanding.

(12) The Corporation reserves the right to require an audit of Applicant’s accounts and records relating to the PLP Loan funds. If the Applicant is required to perform an audit of its accounts and records, a copy of the same shall be delivered to the Corporation within ten (10) days of receipt of thereof by the Applicant.

(13) The Applicant shall maintain all documents related to the Development, including copies of all contracts and performance bonds, during the term of the loan and for three years following the maturity of the PLP Loan as the same may be extended pursuant to this rule chapter.

(14) With respect to home ownership Developments, in order to assure that such Developments serve the target population the Credit Underwriter or the Corporation shall, prior to release of an individual lot within the Development Site, review appropriate documentation as necessary to determine the unit is being sold to an eligible purchaser.

(15) With respect to rental Developments, in order to assure that such Developments serve the target population and maintain the minimum Set-Aside requirements, in addition to the execution and recordation of the Land Use Restriction Agreement (LURA), all deeds conveying title to real estate that is improved with rental units shall contain restrictive covenants that encompass all of the units in the Development and that provide for the continued rental of the units to persons within the target population for the Compliance Period. For those Developments which have occupied units, or will have occupied units, prior to closing of the construction or permanent financing, the Servicer or the Corporation shall conduct a review and physical inspection prior to closing of the construction or permanent financing to assure that the Development meets the minimum Set-Aside requirements and provides the intended benefit to the target population pursuant to the Act. The Corporation reserves the right to monitor each Development funded under the Predevelopment Loan Program at any time after completion of the Development to assure continued compliance with the applicable provisions of this rule chapter.

(16) The loan shall not be assumable upon the sale, transfer or refinancing of the Development without the prior approval from the Board, which approval shall be conditioned upon a positive recommendation by the Technical Assistance Provider or Credit Underwriter.

Rulemaking Authority 420.528 FS. Law Implemented 420.507, 420.521-.529 FS. History–New 3-23-93, Amended 1-16-96, Formerly 9I-38.007, Amended 3-26-98, 7-17-00, 7-21-03, 2-3-05, 11-21-07, 11-22-09.