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(i) All of the proceeds of the senior loan, less any transaction <br />costs, are used to provide acquisition, construction and/or <br />permanent financing for the Subject Property. <br />(ii) The proposed lender is a state or federally chartered <br />financial institution, a nonprofit corporation, a charitable <br />foundation, or a public entity that is not affiliated with the <br />developer or any of developer's affiliates, other than as a <br />depositor or a lender. <br />(iii) CONTRACTOR, or Eligible Purchaser, as the case maybe, <br />demonstrates that adequate financing is not available <br />without the proposed subordination. <br />(iv) The subordination agreement minimizes the risk that the <br />County's security interest in the property would be <br />extinguished as a result of a foreclosure by the senior <br />lender or other holder of the senior loan. The condition is <br />satisfied if the County has adequate rights to cure any <br />borrower default. <br />(v) The subordination agreement does not limit the effect of <br />the County's deed of trust before a foreclosure and does not <br />require the consent of the holder of the senior loan before <br />the County can exercise any of its remedies under the loan <br />documents. <br />14. Rental of Rehabilitated Properties. If, after reasonable efforts, <br />including but not limited to a sales price reduction, a sale of the <br />Subject Property to an Eligible Purchaser does not occur, <br />CONTRACTOR may request that the County permit <br />CONTRACTOR to retain ownership of the Subject Property as a <br />rental property until market conditions improve. Any such request <br />must be in writing and must include the following: <br />a. Documentation of CONTRACTOR'S efforts to sell the <br />Subject Property to an Eligible Purchaser. <br />b. CONTRACTOR's assessment of why the Subject Property <br />has not sold. <br />c. A requested conversion date. <br />d. An operating budget and a management plan for the <br />Subject Property as a rental. <br />e. Schedule of rents, to be approved by the Housing Director <br />f. Contractor will ensure that for Phase 1 properties which <br />were targeted to Very Low-Income Households, NSP funds <br />are used to benefit Very Low-Income Households under <br />this scenario as well. <br />g. A financing plan which addresses repayment, restructure or <br />extension of other financing in the Subject Property. <br />25 of 55 <br />