67-48.041. Terms and Conditions of EHCL Loans  

Effective on Tuesday, June 23, 2020
  • 1(1) The loan shall be in compliance with this rule chapter and the Act, and loan documents shall, at a minimum, contain the following terms and conditions:

    28(a) The loan shall be non-amortizing and shall have an interest rate, as provided in Section 44420.5087(3)(e), F.S. 46The applicable interest rate shall be established in the competitive solicitation;

    57(b) Repayment of principal and interest may be deferred until maturity of the Note, as determined by the Credit Underwriter based on the debt service coverage ratio for the EHCL loan, including all superior mortgages;

    92(c) The loan term shall not exceed 15 years but may be for a shorter period of time as requested by the Applicant or recommended by the Credit Underwriter. However, if the lien of the Corporation’s encumbrance is subordinate to the lien of another mortgage, then the term may be made coterminous with the longest term of the superior lien if requested by the borrower and approved by the Credit Underwriter based on debt service coverage ratio, loan to value ratio, and other factors established in a competitive solicitation.

    181(d) The Applicant shall certify annually to the Corporation that the Development is providing Housing for the Elderly as defined herein.

    202(2) Annually, within 151 Calendar Days following the Applicant’s fiscal year end, the Applicant shall provide an audited financial statement, the fully completed and executed annual reporting form, Financial Reporting Form SR-1, (Rev. 05-14), and any other financial reporting requirements as provided in a competitive solicitation. The Form SR-1, which is incorporated by reference and available from 259http://www.flrules.org/Gateway/reference.asp?No=Ref-10768, 261shall be submitted to the Corporation’s servicer in both PDF format and in electronic form as a Microsoft Excel spreadsheet. T282he initial submission will be due following the fiscal year within which the 12 month anniversary of the EHCL loan closing is observed. 305The audited financial statement is to be prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America for the 12 month fiscal year period just ended and shall include:

    353(a) Comparative Balance Sheet with prior year and current year balances;

    364(b) Statement of revenue and expenses;

    370(c) Statement of changes in fund balances or equity;

    379(d) Statement of cash flows; and,

    385(e) Notes to financial statements.

    390The financial statements referenced above should also be accompanied by a certification of the Applicant as to the accuracy of such financial statements. A late fee of $250 will be assessed by the Corporation for failure to submit the above documents by the stated deadline.

    435(3) The Corporation shall forgive the portion of the loan attributable to the units in a project reserved for Extremely Low Income (ELI) Persons for Non-Profit organizations, not to exceed 25 percent, where the project will provide affordable Housing to the Elderly for 15 years or more.

    482(4) The loan shall not be assumable upon Development sale, transfer or refinancing of the Development, unless approved by HUD.

    502(5) The Corporation shall require adequate insurance to be maintained on the Development as determined by the first mortgage lender, the Corporation, or the Corporation’s servicer, but which shall, in any case, include fire, hazard and other insurance as required by the terms and conditions outlined in a competitive solicitation.

    552(6) If the loan is repaid due to sale, transfer, or refinancing of the Development, all available proceeds shall be applied to pay the following items in order of priority:

    582(a) First mortgage debt service and fees;

    589(b) Any other superior debt service and fees;

    597(c) Expenses of the sale;

    602(d) EHCL loan principal and accrued interest.

    609(7) The Corporation or an authorized representative of the Corporation shall monitor compliance of all terms and conditions of the loan as provided in the loan documents.

    636(8) Any violation of the terms and conditions required by this rule chapter or the loan documents constitutes a default under the loan documents allowing the Corporation to accelerate its loan and to seek foreclosure as well as any other remedies legally available to it.

    681Rulemaking Authority 683420.507, 684420.508 FS. 686Law Implemented 688420.5087(3) FS. 690History–New 10-8-14, 692Repromulgated 9-15-16, 5-24-17, 7-8-18, Amended 7-11-19, Repromulgated 6-23-20700.