NAC319.690. Loans for projects.

     1. If appropriate, the Division shall issue bonds or a letter of credit, or make a mortgage loan for:

     (a) The interim financing of the development, construction or rehabilitation of a project;

     (b) The permanent financing of a project; or

     (c) Both interim and permanent financing of a project.

     2. A bond issuance or mortgage loan pursuant to subsection 1 must be:

     (a) Fully or partially insured or guaranteed with a credit facility from a governmental agency other than the Division or by a private source of mortgage insurance, bond insurance, guarantee or other credit instrument that is acceptable to the Division; and

     (b) Secured by a deed of trust on a project in this State.

     3. As a condition precedent to the initial closing of a bond issuance or mortgage loan pursuant to this section, the sponsor must execute any documents which the Administrator deems necessary or appropriate to regulate the acquisition, development, construction or rehabilitation of the proposed project and the operations of the sponsor, in order to protect the interest of the Division and to fulfill the Division’s duties.

     4. A mortgage loan may only be assigned, transferred, conveyed or pledged by a sponsor or direct lending institution subject to terms and conditions which are approved in writing by the Division before the assignment, transfer, conveyance or pledge. Upon the execution of an agreement for the assumption of the mortgage loan, the sponsor shall pay to the Division a fee of up to 1 percent of the unpaid principal balance of the mortgage loan.

     5. The obligation of the Division to finance a project is subject to the issuance of a letter of credit from the Division or sale of bonds or other obligations of the Division in an amount sufficient to permit financing.

     6. Upon the issuance of a letter of conditional commitment and inducement and the acceptance by the sponsor of the terms and conditions of the letter, the sponsor shall submit to the Division, within 10 days after the letter is issued, a fee which is in an amount equal to the Division’s cost for issuing bonds, a mortgage loan or letter of credit and which is in accordance with the Internal Revenue Code of 1986, as amended.

     7. If the sponsor notifies the Division in writing that it does not wish to proceed with the financing, the Division shall retain a portion of the fee to cover the costs incurred. The Division shall return the remainder of the fee to the sponsor within 10 days after the date the Division conclusively determines the total costs incurred.

     [Housing Division, Loans for Multifamily Homes Reg. § 4 subsecs. a, c, & I, eff. 12-5-78; A and renumbered as § 3, 7-23-80]—(NAC A 12-16-82; 10-26-83; 4-13-88; R093-00, 11-20-2000)