CHFA LOAN CLOSING - Laserfiche WebLink

Permanent Mortgage Loan and State /Local Permanent Loan to close by the date specified in paragraph 2 above. The following Loan Closing Requirements are of particular importance, and are listed herein for purposes of clarity and emphasis: a. Financing Fee. At or before Permanent Mortgage loan closing, the Borrower /Developer shall pay to the Agency, in cash, the greater of $234,000.00 or 2.5% of the principal amount of the Permanent Mortgage Loan as a financing fee. This financing fee shall be nonrefundable. The Financing Fee may be funded from the Bond Security Deposit. b. Regulatory Agreement. At or before the Permanent Mortgage Loan Closing, the Borrower shall enter into a regulatory agreement substantially in the form of that certain "Regulatory Agreement" attached hereto as Appendix C and incorporated herein by this reference. c. Reserve Accounts. The Borrower /Developer shall establish and maintain the reserve accounts as provided in paragraph 6 of the Regulatory Agreement which shall include the following: 1. Special Reserve Account. At or before the Permanent Mortgage Loan closing, the Borrower /Developer shall be required to establish and maintain a' Special Reserve Account in the amount of $2,000,000.00 as provided in the Regulatory Agreement. 2. Replacement Reserve. Following the Permanent Mortgage Loan closing, the Borrower /Developer shall also be required to establish and maintain a Replacement Reserve to be funded by monthly payments as provided in the Regulatory Agreement. d. Affirmative Action Plan Approval. The Borrower /Developer shall comply with the Agency's Affirmative Action Program Guidelines, as amended and the Affirmative Action Plan previously prepared by the Borrower /Developer and approved by the Agency. Among other things, the guidelines require, subject to monetary penalties for noncompliance, the general contractor to meet certain standards with regard to affirmative action in subcontracting and employment in the construction of the Development. e. Tax Code Compliance. The Borrower /Developer shall provide the Agency with such information as the Agency shall require in order to permit the Agency to comply with any reporting requirements necessary to maintain the tax - exempt status of the bonds issued to finance the Development. Specifically, the Borrower /Developer shall update Agency Form 8038 Questionnaire (TEFRA -- CHFA 58) at Permanent Mortgage Loan closing. CHFA 60 - 3 - 4/5/88