Section 825-RICR-20-00-1.4 - ELIGIBILITY CRITERIA1.4.1Qualifications of BorrowersA. Tax Act and Program Requirements. A condition to continued eligibility in the Program is the continued use of the Dwelling as a primary permanent residence. Borrowers and occupants of cooperative housing corporations, as applicable, shall be required to execute an affidavit evidencing an intent to continue to use and occupy the Dwelling as a primary permanent residence throughout the term of the Mortgage Loan and such other affidavits and certifications as may be required by the Corporation in order to provide evidence of compliance with the Tax Act and the requirements of the Program.B. Income Limitations. For each Program, the Corporation shall by Program Bulletin establish limitations with respect to the Aggregate Family Income of Borrowers and occupants of cooperative housing developments. For Mortgage Loans to be financed with tax-exempt Bond Proceeds, the limitations shall be based on percentages of the median family income for the Providence, Rhode Island metropolitan statistical area as established by the Department of Housing and Urban Development or such other limitations as may be permitted under the Tax Act. For all other Mortgage Loans, the limitation shall, at the option of the Corporation, be the higher of: 1. the income limitation established for Mortgage Loans set forth above or2. the limitations based on the average family or household income for the State of Rhode Island as determined annually by the Corporation.C. Program Extension; Reallocation of Set Asides. Notwithstanding any other provision herein contained, if the Corporation has Bond Proceeds or other funds remaining after the expiration of the term of any set aside originally made from such proceeds or funds, the Corporation may, in its sole discretion, cause the Program to be made available to such persons as the Corporation may from time to time determine by Program Bulletin. Funds set aside for Targeted Areas (as defined in the Tax Act) may be reallocated by the Corporation after the expiration of one (1) year from the date such funds are initially available.D. Asset Test. The Corporation may from time to time by Program Bulletin include an asset test as an additional condition to eligibility for receipt of a Mortgage Loan, Special Housing Assistance (as defined in § 1.7(H) of this Part) or for any other type of assistance provided hereunder to a Borrower or any class of Borrowers.1.4.2Eligible PropertiesA. Dwellings. To be eligible under the Program, the Dwelling must be located in the State of Rhode Island, and must be structurally sound and functionally adequate. The Corporation may from time to time impose additional requirements by Program Bulletin with respect to any Dwelling.B. Acquisition Cost Limitations. The acquisition cost of Dwellings may not exceed the Acquisition Cost Limits set forth in the Tax Act. The Corporation shall establish Acquisition Cost Limits by Program Bulletin for each Program.C. Hazard Insurance. All Dwelling improvements shall be covered by a valid and subsisting policy of standard hazard insurance providing fire and extended coverage to an amount equal to the greater of:1. eighty percent (80%) of the Fair Market Value of real estate or2. an amount sufficient to protect the Corporation's interest in such Mortgage Loan.D. Credit Terms. Each Borrower shall be subject to credit review by the Corporation or by a Mortgage Lender or private mortgage insurer. The Corporation may rely on the expertise of the Mortgage Lender and private mortgage insurer and, in the making of direct loans shall employ customary credit verification standards applicable to mortgage loans sold in the secondary mortgage market. It shall be a condition of financing by the Corporation that the Borrower obtain credit approval by the Mortgage Lender, private mortgage insurer or the Corporation's underwriting department, as the case may be.825 R.I. Code R. 825-RICR-20-00-1.4