Section 15-311-25 - Loans to for-profit entities(a) Loans may be provided to for-profit entities for the purposes set forth in section 15-311-21 and shall be subject to any additional conditions set forth in this section. (b) The corporation shall set forth the terms and conditions of the loan on a case-by-case basis, including the interest rate, repayment requirements, appropriate security, and the like.(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.(d) The corporation shall ensure that loans provided under this section 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 loan was provided. Loans 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 projects receiving loans and grants under this section; and(2) Compliance with the terms and conditions of the loan. The corporation shall have the right to rescind or recapture moneys loaned if the terms of the contract are not fulfilled.
[Eff APR 23 2010] (Auth: HRS § 201H-202) (Imp: HRS § 201H-202)