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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 14. HOUSING |
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Chapter 14-27. FIRST RIGHT PURCHASE ASSISTANCE PROGRAM |
Section 14-2706. AMOUNTS AND TERMS FOR TENANT ASSOCIATION GAP FINANCING
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2706.1Gap financing assistance available to tenant associations shall be provided in accordance with the provisions of this section.
2706.2Loan guarantees shall be provided to cover up to ninety percent (90%) of the lenders risk for eligible costs.
2706.3Interim loans shall be provided to cover up to ninety-nine percent (99%) of eligible costs.
2706.4Security for interim loans shall be by a recorded lien on the purchased property.
2706.5Interim loans shall be made for a period not to exceed eighteen (18) months from date of settlement on the interim loan. An interim loan shall become due at the time of closing on the permanent financing.
2706.6Tenant associations applying for an interim loan shall demonstrate to the satisfaction of the Department their inability to secure adequate private interim financing and their ability to secure adequate permanent financing.
2706.7Interest shall be assessed to all gap loans at a rate of not less than one percent (1%) nor more than nine percent (9%) per annum to be determined by DHCD based on the tenant association’s ability to repay the loan. A schedule of interest payments may be required during the loan period.