Vermont Statutes
Chapter 25 - Vermont Housing Finance Agency
§ 624. Making of loans to housing sponsors

§ 624. Making of loans to housing sponsors
(a) The Agency may:
(1) Make, undertake commitments to make, purchase, undertake commitments to purchase, and participate with mortgage lenders in the making of mortgage loans, and to make grants, loans, and advances to housing sponsors to finance the acquisition, construction, or rehabilitation of residential housing, provided, that this subdivision shall not be construed to include equity loans.
(2) Institute any action or proceeding against any housing sponsor receiving a loan under the provisions of this chapter, or owning any residential housing under this chapter in any court of competent jurisdiction in order to enforce the provisions of this chapter or the terms and provisions of any agreement or contract between the Agency and the recipients of loans under the provisions of this chapter, or to foreclose its mortgage, or to protect the public interest, the occupants of the residential housing, or the stockholders or creditors, if any, of the housing sponsors. In connection with any such action or proceeding it may apply for the appointment of a receiver to take over, manage, operate, and maintain the affairs of the housing sponsor and the Agency, through such agent as it designates, may accept the appointment of the receiver of any housing sponsor when so appointed by a court of competent jurisdiction. In the event of the reorganization of any housing sponsor, to the extent possible under the provisions of law, the reorganization shall be subject to the supervision and control of the Agency and no reorganization may be accomplished without the prior written consent of the Agency. In the event of a judgment against any housing sponsor in any action not pertaining to the foreclosure of a mortgage, there may be no sale of any of the real property included in any residential housing of that housing sponsor except upon 60 days written notice to the Agency. Upon receipt of the notice the Agency shall take such steps as in its judgment may be necessary to protect the rights of all parties.
(3) Make, undertake commitments to make, purchase, undertake commitments to purchase, and participate with mortgage lenders in the making of equity loans.
(b) The Agency shall provide by rules or regulations for the terms and conditions of mortgage loans to housing sponsors of residential housing. Mortgage loans made by the Agency to housing sponsors, in addition to such other terms and conditions as the Agency may by rule or regulation provide, shall be subject to the following:
(1) No application for a mortgage loan may be approved unless the applicant is a housing sponsor as defined in section 601 of this title;
(2) The mortgage loan may be in an amount not to exceed the value of the residential housing as determined by the Agency. The value determined may include the value of additional collateral as deemed appropriate by the Agency;
(3) The mortgage loan shall be secured in such manner and be repaid in such period, not exceeding 40 years, as may be determined by the Agency and shall bear interest at a rate determined by the Agency. The interest rates shall be established by the Agency at the lowest level consistent with the Agency’s cost of operation and its responsibilities to the holders of its bonds, bond anticipation notes, and other obligations. In addition to such interest charges, the Agency may make and collect such fees and charges, including reimbursement of the Agency’s operating expenses, financing costs, service charges, insurance premiums, and mortgage insurance premiums, as the Agency determines to be reasonable;
(4) Each mortgage and promissory note accompanying the mortgage shall contain such terms and provisions and be in such form as approved by the Agency;
(5) Each mortgage loan to a housing sponsor for residential housing shall be subject to an agreement between the agency and the housing sponsor which will subject the housing sponsor and its principals or stockholders, if any, to limitations established by the agency as to sale prices, rental, and other charges, builder’s and developer’s profits and fees, and the disposition of its property and franchise to the extent more restrictive limitations are not provided by the law under which the housing sponsor is incorporated or organized or by this chapter; and
(6) The Agency shall have the power at all times during the construction or rehabilitation of residential housing and its operation:
(A) to enter upon and inspect any residential housing including all parts thereof, for the purpose of investigating the physical and financial condition thereof, and its construction, rehabilitation, operation, management, and maintenance, and to examine all books and records of the housing sponsor with respect to capitalization, income, and other matters relating thereto and to make those charges as may be required to cover the cost of the inspections and examinations;
(B) to order such alterations, changes, or repairs as may be necessary to protect the security of its investment in residential housing or the health, safety, and welfare of the occupants or its users and to ensure that the residential housing is or has been constructed or rehabilitated in conformity with all applicable plans and specifications and building codes; and
(C) to order any managing agent or sponsor of residential housing to do those acts as may be necessary to comply with the provisions of all applicable laws, ordinances, or building codes or any rule or regulation of the Agency or the terms of any agreement concerning the residential housing or to refrain from doing any acts in violation of it, and in this regard the Agency shall be a proper party to file a complaint and to prosecute thereon for any violations of law, ordinances or building codes as set forth in this chapter.
(c) [Repealed.] (Added 1975, No. 176 (Adj. Sess.), § 5, eff. March 26, 1976; amended 1977, No. 47, § 2, eff. April 20, 1977; 1977, No. 199 (Adj. Sess.), § 1; 1987, No. 41, § 5; 1989, No. 77, § 4, eff. June 7, 1989; 2005, No. 189 (Adj. Sess.), §§ 5, 6.)