Developer Loans Sample Clauses

Developer Loans. Moneys held in the Program Fund may be applied to make Single Family Loans to developers to finance, in part, capitalizable predevelopment costs and the acquisition, construction, or renovation of single family residential units that constitute Eligible Housing Units and Residential Housing (“Developer Loans”). Developer Loans may be issued as traditional loans or may be offered as a “guidance line of credit” which shall constitute a perpetual approval to a developer for a predetermined period of time, provided that the project(s) each meet the conditions of the Housing Opportunity Program. Developer Loans shall be subordinated in lien and right of payment to the repayment of other loans to finance or refinance the single family residential unit, provided such other loans are made by lenders that are not Affiliates of the developer. The obligation to repay Developer Loans shall be evidenced by a promissory note, in a form acceptable to the Program Administrator, and shall be secured by a deed to secure debt, in a form acceptable to the Program Administrator. Each single family residential unit that is financed by a Developer Loan that cannot be sold to an income eligible owner occupant may be leased or rented to an income eligible household.
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Related to Developer Loans

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