Title 15 . Revenue

Chapter 151 . (Repealed)

Section 542. Multi-family loan purchase program

15 AAC 151.542. Multi-family loan purchase program

(a) The Corporation will, in its discretion, purchase or participate in the purchasing of loans to acquire, rehabilitate or refinance multi-family housing. Loans purchased, in whole or in part, under this section must be originated and serviced by multi-family lenders approved by the Corporation. Loans under this section shall satisfy the requirements of 15 AAC 151.500 - 15 AAC 151.545 except as otherwise provided in this section. Loans made under this section are not subject to the requirements of 15 AAC 151.510(a) (1), (a)(4) and 15 AAC 151.530. Any loan application made under this section that is $1,500,000 or less is not subject to 15 AAC 151.545.

(b) A multi-family lender may participate in a loan, subject to (c)(6) of this section, in an amount as it determines. The term and interest rate of the participation lender's share of the loan may vary from that of the Corporation's share at the discretion of the Corporation.

(c) The total principal amount of a participation loan may not exceed the lesser of 80% of the appraised value of the property or:

(1) for an acquisition: 80% of the acquisition price;

(2) for an acquisition with rehabilitation: the total of 80% of the acquisition price, 100% of the allowable costs to rehabilitate and 100% of other transaction costs approved by the Corporation;

(3) for an existing debt refinancing: 100% of the amount necessary to pay the outstanding principal amount of the debt being refinanced and any refinancing costs approved by the Corporation;

(4) for an existing debt refinancing with rehabilitation: the total of 100% of the allowable costs to rehabilitate, the amount of the debt being refinanced and any other refinancing costs approved by the Corporation;

(5) for a construction loan refinancing: 100% of the allowable developmental costs to construct; and

(6) for a refinancing with cash-out to the borrower: 80% of the appraised value of the property; however, the lender must participate in the loan in an amount at least equal to the amount of the cash-out to the borrower. However, if any of the cash-out is used for the acquisition and/or improvement of another multi-family property, or to pay down the balance of a loan on a property to be refinanced under 15 AAC 151.500 or 15 AAC 152, the lender is not required to participate for that amount, provided the cash-out is disbursed in accordance with requirements imposed by the Corporation.

(d) The Corporation will, in its discretion, enter into a commitment agreement to participate in a loan for a maximum commitment period of one year. The Corporation shall have the option to extend such commitment periods as it determines necessary.

(e) A loan made under this section must be in a first lien position of real property in fee simple or on an acceptable leasehold estate which must run a minimum of ten years beyond the expiration of the loan. Any subordinate financing must be approved by the Corporation.

(f) Loans made under this section shall be for housing consisting of buildings with at least five dwelling units. Buildings need not be located on contiguous property.

(g) The Corporation shall charge a fee of $1,000 for review of a participation loan application which shall be credited towards the commitment fee if a commitment is issued. The commitment fee shall be .5% of the committed loan amount. An extension fee of .5% shall be charged for each 90-day extension of the commitment period.

History: Eff. 9/22/94, Register 132; am 8/21/96, Register 139; am 9/16/98, Register 148; am 2/24/99, Register 149

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.099