Section 15-311-24 - Loans and grants to nonprofit and governmental entities(a) Loans and grants may be provided to nonprofit or governmental entities for the purposes set forth in section 15-311-21 and shall be subject to the additional conditions set forth in this section.(b) The corporation shall objectively review each project on a case-by-case basis to determine whether a loan or a grant is to be provided, and shall not be predisposed to providing loans over grants. The corporation shall also set forth the terms and conditions of the loan or grant, including the interest rate, repayment requirements, if applicable, appropriate security, and the like. The corporation may waive the repayment of funds used for predevelopment activities if the project fails to materialize through no fault of the recipient.(c) The corporation shall take all reasonable steps necessary to ensure that projects funded shall remain affordable for the economic life of the project or for as long as rental housing revolving fund moneys are invested in the project; provided, however, that upon the request of the project owners, the corporation shall have the authority to waive the conditions of the loan or grant due to extreme hardship or if such modifications are in conformity with the corporation's then existing rules for loans and grants for new projects. For example, the corporation, in conformity with its then existing rules, shall have the authority to subordinate an existing loan or grant to a subsequent rehabilitation mortgage loan.(d) The corporation shall ensure that loans and grants provided for equity gap financing or interim construction purposes are secured to safeguard against a change in the use or ownership of the project, or the project no longer fulfilling the intended purpose for which the grant was provided. Loans and grants may be secured through any of the following means:(1) Use of a forgivable or subordinated mortgage;(2) Development of a project on government-owned land with conditions attached to the land;(3) Use of a regulatory agreement; or(4) Any of a combination of the above.(e) The corporation shall establish provisions for monitoring the following: (1) The progress of nonprofit entities in developing and expanding their development capabilities or proceeding with predevelopment activities if grants or loans are used for capacity building or predevelopment purposes;(2) The progress of projects receiving loans and grants under these rules; and(3) Compliance with the terms and conditions of the loan or grant. The corporation shall have the right to rescind or recapture moneys loaned or granted if the terms of the contract are not fulfilled.
[Eff APR 23 2010] (Auth: HRS § 201H-202) (Imp: HRS § 201H-202, 201H-204)