(20 ILCS 3805/7.2) (from Ch. 67 1/2, par. 307.2)
Sec. 7.2.
The Authority may make mortgage or other loans to non-profit
corporations and limited-profit entities for the acquisition, construction or
substantial or moderate rehabilitation of such developments as in the
judgement of the Authority
have promise of supplying, on a rental, cooperative, condominium or home
ownership basis, well planned, well designed energy-efficient housing
for low or moderate
income persons or families at low or moderate rentals in locations where
there is a need for such housing. Such loans may be for development costs
and construction financing as well as permanent financing, and
may provide
financing for community facilities to the extent permitted by applicable
Authority regulations. The Authority may also make loans to
individuals, joint ventures, partnerships, limited partnerships, trusts or
corporations, including not-for-profit corporations, for the acquisition,
construction, equipment or rehabilitation of housing related commercial facilities.
When the Authority makes a loan for housing related commercial facilities,
it may require as a condition of the loan that a portion of the borrower's receipts
from the use of the facilities be used for the construction, acquisition,
rehabilitation, operation or maintenance or payment of debt service on a
development to which the facilities relate. The Authority may set from
time to time the interest
rates and other terms and conditions at which it shall make mortgage
and other loans and
may establish other terms and conditions with respect to the making of such
loans, including the charging of fees or penalties for the late payment of
principal and interest on its loans.
When the loan by the Authority is for the purpose of providing housing
on a condominium or home ownership basis, sale of the housing units by the
nonprofit corporation or limited-profit entity shall be to individual
purchasers who are persons or families of low or moderate income and shall
be subject to the approval of the Authority. Upon the sale by the nonprofit
corporation or limited-profit entity of any housing unit to a low or
moderate income person, such housing unit shall be released from the
overall development mortgage running from the nonprofit corporation or
limited-profit entity to the Authority and, as to such housing unit, the
overall development mortgage shall be replaced by an individual mortgage
running from the low or moderate income purchaser to the Authority.
To secure notes or bonds of the Authority
in connection with loans made pursuant to this Section for a development or
other facilities, the Authority may require or obtain for the benefit of itself,
the holders of the notes or bonds or their trustee, mortgages, pledges,
assignments, liens, letters of credit, guarantees or other security
interests or devices from any persons or entities, whether or not the owner
of the development or facilities, and covering any property, real or
personal, tangible or intangible, whether or not pertaining to the
development or facilities.
When the Authority issues Affordable Housing Program Trust Fund Bonds or
Notes in connection with loans made pursuant to this Section for financing low
and very low income residential housing as provided in the Illinois Affordable
Housing Act, to secure such bonds and notes, the Authority, in addition to the
other devices, security interests, mortgages and rights provided by this
Section and other provisions of this Act, may pledge and grant rights in Trust
Fund Moneys as provided in Section 9 of the Illinois Affordable Housing Act.
(Source: P.A. 88-93.)
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