TITLE XVII
HOUSING AND REDEVELOPMENT
Chapter 204-C
HOUSING FINANCE AUTHORITY
Section 204-C:1
204-C:1 Definitions. –
As used in this chapter unless the context clearly indicates otherwise:
I. "Authority" shall mean the New Hampshire housing finance authority.
II. "Board" shall mean the housing finance board.
III. "Bonds" shall mean bonds of the authority issued under this chapter, including refunding bonds.
IV. "Clerk" shall mean the clerk of the municipality or the officer charged with the duties customarily imposed on such clerk.
V. "Development costs" shall mean the total of all costs incurred in connection with housing, which are approved by the authority as reasonable and necessary, which costs shall include, but not be limited to the following: the value of land and any buildings or improvements on the land, including payments for options, deposits or contracts to purchase properties on the proposed housing site or payments for the purchase of such properties; cost of site preparation, demolition, landscaping, development and off-site improvements; fees for architectural, engineering, legal, accounting and other services paid or payable in connection with the planning, execution and financing of such housing; cost of necessary studies, surveys, plans and permits; cost of insurance, interest, financing, tax assessments and other operating and carrying costs during construction; cost of construction, rehabilitation, reconstruction, fixtures, furnishings, equipment, machinery and apparatus related to such housing; organizational expenses, relocation expenses, reasonable expenses in connection with initial occupancy of such housing, a reasonable builder's and developer's profit and risk fee in addition to job overhead; an allowance established by the authority for working capital, contingency reserves and reserves for any anticipated operating deficits during the early years of occupancy; and the cost of such other items as the authority shall determine to be reasonable and necessary for the development of such housing. Such development costs shall be recognized whether paid in cash or in a form other than cash.
VI. "Economic cost" shall mean cost of operating housing, including debt service, finance charges, management fee, heat, utility, maintenance, replacement reserve, on-site management and janitorial costs and other operating expenses approved by the authority, and, with respect to any rental housing, the maximum annual equity distribution on a cumulative basis permitted by the authority with respect to such housing.
VII. "Elderly" shall mean a person who qualifies to live in housing for older persons, as defined in RSA 354-A:15.
VIII. "Eligible low income persons and families" shall mean those eligible persons and families whose annual income is less than the amount necessary to enable them to obtain and maintain decent, safe and sanitary housing without the expenditure of more than 30 percent of such income for basic shelter cost, including the additional cost, if any, of heat, hot water, and other utilities, except telephone.
IX. "Eligible mortgagor" shall mean any individual, joint venture, partnership, limited partnership, trust, firm, association, corporation, cooperative, condominium association, governmental agency, or other legal entity, or any combination thereof approved by the authority as qualified to own, construct, acquire, rehabilitate, operate, manage or maintain housing whether organized for profit, limited profit or nonprofit purposes, in each case subject to the rules of the authority and the provisions of this chapter.
X. "Eligible persons and families" shall mean a person or persons, and families of 2 or more persons, irrespective of race, creed, national origin, sex, or gender identity, determined by the authority to require assistance under this chapter on account of insufficient personal or family income taking into consideration, without limitation, such factors as follows: (a) the amount of the total income of such persons and families available for housing needs; (b) the size of the family; (c) the cost and condition of housing facilities available; (d) the ability of such persons and families to compete successfully in the normal private housing market and to pay the amounts at which private enterprise is providing decent, safe and sanitary housing; and (e) if appropriate, standards established for various federal programs determining eligibility based on income of such persons and families.
XI. "Federally assisted mortgage" shall mean a mortgage loan for housing, assisted, insured or guaranteed by the United States or a governmental agency or instrumentality of the United States, and shall include a commitment by the United States or a governmental agency or instrumentality of the United States to assist, insure, guarantee or purchase such a mortgage.
XII. "Federal government" shall mean the United States of America, or any agency or instrumentality, corporate or otherwise, of the United States of America.
XIII. "Governing body" shall mean in a city that governing body which is designed as such by the charter of the particular city; in a town, the board of selectmen.
XIV. "Governmental agency" shall mean the United States, the state, any municipality within the state, or any agency, authority, board, commission, department, division, public corporation, public agency or authority, political subdivision or other public instrumentality thereof.
XV. "Housing" shall mean one or more new or existing dwelling units in the state financed pursuant to this chapter, including homes for persons with disabilities, mobile homes, prefabricated homes, any buildings, land, improvements, equipment, facilities or other real or personal properties which are deemed by the authority to be necessary, convenient, ancillary or desirable in connection with such dwelling units, and including, but not limited to, streets, sewers, utilities, parks, site preparation, off-site facilities, landscaping and other nonhousing facilities such as administrative, community, transportation, health, recreational, educational, commercial, retail, welfare and public facilities.
XVI. "Housing project" shall mean any work or undertaking:
(a) To demolish, clear or remove buildings from any slum area; such work or undertaking may embrace the adoption of such area to public purposes, including parks or other recreational or community purposes; or
(b) To provide decent, safe and sanitary urban or rural multi-family housing for persons of low income; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, welfare or other purposes; or
(c) To accomplish a combination of the foregoing. The term "housing project" also may be applied to the planning of multi-family housing and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection with them.
XVII. "Lending institution" shall mean any bank or trust company; Federal National Mortgage Association approved mortgage banker; savings bank; credit union; national banking association; insurance company; financial institution or governmental agency which customarily provides service or otherwise aids in the financing of mortgages located in the state.
XVIII. "Local authority" shall mean a housing authority constituted under the provisions of RSA 203.
XIX. "Mayor" shall mean the mayor of the city or the officer of the city charged with the duties customarily imposed on the mayor or executive head of the city. "Mayor" shall also mean the selectmen in the case of towns.
XX. "Mortgage" shall mean a mortgage deed, deed of trust, or other instrument which shall constitute or create a security interest in tangible personal property constituting housing, or a lien on real property or on a leasehold under a lease having a remaining term, at any time such mortgage is acquired, which does not expire for at least that number of years beyond the maturity date of the obligation secured by such mortgage as is established by the authority as necessary to protect its interest as mortgagee.
XXI. "Mortgage loan" shall mean an interest-bearing obligation secured by a mortgage.
XXII. "Multi-family housing" shall mean housing consisting of 5 or more units.
XXIII. "Municipality" shall mean any city or town in this state.
XXIV. "Obligations" shall mean collectively any bonds, notes, bond anticipation notes, debentures, interim certificates or other evidence of financial indebtedness issued by the authority pursuant to this chapter.
XXV. "Real property" shall mean all land, including appurtenances, improvements and fixtures on the land, and property of any nature appurtenant to the land, or used in connection with the land, and every estate, interest and rights, legal or equitable in the land, including terms of years and liens by way of attachment, judgment, mortgage or otherwise and the indebtedness secured by such liens.
XXVI. "Slum" shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, lack of ventilation, light or sanitary facilities, or any combination of these factors, are detrimental to safety, health or morals.
Source. 1981, 466:2. 1983, 367:2. 1988, 250:4. 1990, 140:2, III, eff. June 18, 1990; 187:5, eff. June 26, 1990. 2014, 323:1, 2, eff. Sept. 30, 2014. 2019, 332:15, eff. Oct. 15, 2019.
Section 204-C:2
204-C:2 Authority Established. –
There is hereby created a body politic and corporate having a distinct legal existence separate from the state and not constituting a department of state government, to be known as the New Hampshire housing finance authority to carry out the provisions of this chapter. The authority is hereby deemed to be a public instrumentality and the exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of public and essential governmental functions of the state. The rights, remedies, security and obligations of any person holding an outstanding bond or note issued by the New Hampshire housing finance agency or the New Hampshire housing commission prior to the effective date of this chapter, and the rights, remedies and obligations of any person party to any agreement with such agency or commission which are in existence on the effective date of this chapter shall not be impaired or affected in any way by this chapter. Any naming of or reference to the New Hampshire housing finance agency or the New Hampshire housing commission in any bond resolution or other document shall be deemed to include the authority, and all of the covenants and agreements contained in any such bond resolution or other document executed or adopted by or on behalf of the New Hampshire housing finance agency or the New Hampshire housing commission shall be binding on, shall inure to the benefit of, and shall be performed by, the authority whether so expressed or not. All right, title and interest in and to all assets and all obligations and liabilities of the New Hampshire housing finance agency and the New Hampshire housing commission vested in or possessed by said agency or commission on the effective date of this chapter shall vest in and be possessed, performed and assumed by the authority. The passing of rights, remedies, duties, covenants, agreements, security and obligations in accordance with this section shall not increase or diminish them.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:3
204-C:3 Housing Finance Board. –
The powers of the authority shall be vested in 9 members, comprised of men and women, to be appointed by the governor with the advice and consent of the council. One member of the board shall be a person having experience in the construction of single-family real estate; one member shall be a person having experience with the business of selling or renting real estate; one member shall be a person having experience in residential mortgage banking; and at least 2 members shall be persons representing the general public who are neither bankers, builders, nor in the business of selling or renting real estate. No more than 5 members shall be of the same political party. The governor shall appoint annually a chairman and the members shall elect annually from among their number a vice-chairman and such officers as they may determine. Terms of board members shall be 5 years, except that all vacancies shall be filled for the unexpired term. In 1986, members shall be appointed to the following terms: one member to a one-year term, 2 members to a 2-year term, 2 members to a 3-year term, 2 members to a 4-year term, and 2 members for a 5-year term. No member may serve more than 2 full consecutive terms. No member of the board shall serve on any other state board, commission, or in any other state agency during his term of office as a member of the housing finance board. A member shall hold office until his successor has been appointed and qualified. Members shall receive no salary for the performance of their duties under this chapter, but each member shall be reimbursed for reasonable expenses incurred in carrying out his duties under this chapter.
Source. 1981, 466:2. 1985, 230:1, eff. July 30, 1985.
Section 204-C:4
204-C:4 Meetings of Board. –
Meetings shall be held at the call of the chairman, executive director or when 3 members so request. Five members of the board shall constitute a quorum and the affirmative vote of 5 members shall be necessary for any action taken by the authority. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:5
204-C:5 Executive Director; Operations. –
Operation of the authority shall be delegated by the board to an executive director who shall be appointed by the board. The executive director shall be a person qualified by training and experience in this field and shall hold office for an indefinite term, at the pleasure of the board. The executive director shall also be the secretary of the authority, shall keep a record of the proceedings of the authority, and shall be the custodian of all books, documents, and papers filed with the authority and of its minute book and seal. He shall have the power to cause copies to be made of all minutes and other records and documents of the authority and to give certificates under the seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates. The executive director shall employ such assistants, clerical and administrative staff as necessary and within limits of funds available for that purpose. The executive director may from time to time establish and maintain such operating divisions within the authority as he shall deem necessary for the proper and efficient conduct of business under this chapter, and may assign such staff members to any such division, consistent with the provisions of RSA 204-C:8, X.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:6
204-C:6 Surety Required. –
Before entering into their duties, the members of the board shall obtain a surety blanket bond covering each member in the penal sum of not less than $50,000, the executive director in the penal sum of not less than $100,000, and the other officers and employees of the authority in the penal sum of not less than $50,000. Such surety bond or bonds shall be conditioned upon the faithful performance of the duties of the office covered, shall be executed by a surety company authorized to transact business in this state as surety and shall be approved by the attorney general and filed in the office of the secretary of state. The cost of each such bond shall be paid by the authority.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:7
204-C:7 Disqualification of Member. –
Notwithstanding any other provision of law to the contrary, it shall not be nor shall it constitute a conflict of interest for a director, officer or employee of any financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architectural firm, insurance company or any other firm, person or corporation to serve as a member of the board. If any member of the board shall be interested either directly or indirectly or shall be a director, officer or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any contract with the authority, including any loan to any eligible mortgagor or loan to or purchase of any loan from any lending institution, such interest shall be disclosed to the board and shall be set forth in the minutes of the board and the member having such interest shall not participate on behalf of the authority in any proceedings relating to the authorization of any such contract.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:8
204-C:8 General Powers. –
The authority may:
I. Sue and be sued in its own name;
II. Have an official seal and alter the same at pleasure;
III. Maintain offices at such place within the state as it may designate;
IV. Explore all sources of federal funding for housing and housing related projects and programs; accept loans, grants, contributions and other financial assistance; acquire, lease, hold, and operate real property; engage in and administer housing and housing related projects and programs including, but not limited to programs and projects under sections 10(c) and 23 of the United States Housing Act of 1937, as amended;
V. Collect and correlate information regarding housing projects and housing laws either within or without the state, and upon request furnish local housing authorities, cities or towns, information and advice in connection with any housing project; conduct studies of housing needs in the state and use information gained thereby in planning how best to carry out the purposes of this chapter; work with other state and federal agencies in such studies and planning; develop such plans with the United States Department of Housing and Urban Development, the office of planning and development and other state agencies; and when in the opinion of the authority it is feasible to do so, select projects to fund consistent with the requirements of the plan;
VI. Enforce any of its authorized orders in the courts of the state;
VII. Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter with any governmental agency, private corporation, lending institution, or other entity, or individual;
VIII. Acquire or contract to acquire real or personal property, or any interest in real or personal property, in fee simple or otherwise, in its own name by gift, purchase, transfer, foreclosure, lease or otherwise, including rights or easements in property; hold, sell, assign, lease, encumber, mortgage, or otherwise dispose of any real or personal property or any interest in real or personal property; hold, sell, assign or otherwise dispose of any loan or mortgage interest owned by it or under its control, custody or in its possession at public or private sale, including, without limitation, sales of mortgages or loans to governmental agencies, and release or relinquish any right, title, claim, lien, interest, easement or demand however acquired, including any equity or right of redemption in property foreclosed by it and do any of the foregoing by public or private sale, with or without public bidding, notwithstanding the provisions of any other law;
IX. Enter into agreements or other transactions with, and accept grants, property loans, financial or other assistance of any governmental agency, lending institution or other source in furtherance of the purposes of this chapter;
X. Employ architects, engineers, attorneys, accountants, financial experts and such other advisors and employees, consultants and agents as may be necessary in its judgment and fix their compensation, provided that no such person shall be a classified state employee;
XI. Provide advice, technical information, training and educational services and conduct research and promote the development of housing, building technology and related fields;
XII. Make mortgage loans upon the terms and conditions set forth in this chapter to eligible mortgagors and eligible persons and families and make loans to lending institutions to finance the acquisition, construction or rehabilitation of housing designed and planned to be made available for eligible persons and families who may include eligible elderly and low income persons and families;
XIII. Purchase mortgages on housing;
XIV. Make and execute contracts with lending institutions for the servicing of mortgages or loans acquired by the authority pursuant to this chapter, and pay the reasonable value of services rendered to the authority pursuant to these contracts;
XV. Procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage loans, in such amounts and from such insurers as it deems desirable;
XVI. Make loans or advances, with or without interest, and whether or not secured by a mortgage, to eligible persons and families for the costs of reconstruction, rehabilitation or other improvements of existing housing owned and occupied by such eligible persons and families and for down payment costs, closing costs and other initial expenses of acquiring, financing or refinancing housing owned and occupied or to be owned and occupied by such eligible persons and families;
XVII. Purchase and make commitments for the purchase of securities or other obligations issued by lending institutions to finance housing, subject to any agreement with bondholders or noteholders;
XVIII. Borrow money and issue bonds and notes or other obligations as it may from time to time determine necessary and convenient to provide sufficient funds for achieving any of its corporate purposes including funds to meet operating expenses for the first 5 years of its existence;
XIX. Invest or deposit moneys of the authority, subject to any agreement with bondholders or noteholders;
XX. Renegotiate, refinance or foreclose, or contract for the foreclosure of, any mortgage or loan in default; waive any default or consent to the modification of the terms of any mortgage or loan; commence any action to protect or enforce any right conferred upon it by any law, mortgage, loan, contract or other agreement, and bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; operate, manage, lease, dispose of, and otherwise deal with such property, in such manner as may be necessary to protect the interest of the authority and the holders of its bonds, notes and other obligations; all subject to any agreement with bondholders or noteholders;
XXI. Institute any action or proceeding against the maker, payor or other party, hereafter referred to as the obligor, who is liable for the payment of any obligation, mortgage or loan held or made by the authority under the provisions of this chapter, or owning any housing under this chapter, in any court of competent jurisdiction in order to enforce the provisions of this chapter, or to foreclose mortgages or loans, or to protect the public interest, the occupants of the housing, or the stockholders or creditors, if any, of such obligor. In connection with any such action or proceeding, the authority may apply for the appointment of a receiver to take over, manage, operate and maintain the affairs of such obligor when so appointed by a court of competent jurisdiction. In the event of the reorganization of any obligor, to the extent possible under the provisions of law, such reorganization shall be subject to the supervision and control of the authority and no such reorganization shall be had without the prior written consent of the authority. In the event of a judgment against any obligor in any action not pertaining to the foreclosure of a mortgage or loan, there shall be no sale of any of the real property included in any residential housing of such obligor except upon 60 days written notice to the authority. Upon receipt of such notice the authority shall take such steps as in its judgment may be necessary to protect the rights of all parties;
XXII. Consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest, security or any other term of any contract, loan, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the authority is a party, subject to any agreement with bondholders or noteholders;
XXIII. Procure or agree to the procurement of insurance or guarantees from any governmental agency or from any private insurance company, of the payment of any obligations issued by the authority or bonds or notes or any other evidences of indebtedness thereof issued by any lending institution, including the power to pay premiums on such insurance;
XXIV. Enter into regulatory and other agreements and contracts with eligible mortgagors under this chapter;
XXV. Charge and collect from eligible mortgagors, eligible persons and families and lending institutions, such fees and charges as the authority may establish from time to time for its lending programs;
XXVI. Create and establish such funds or accounts as may be necessary or desirable for furtherance of the purposes of this chapter;
XXVI-a. Finance, on such terms and conditions as the authority may determine, by the issuance of bonds or otherwise, homes for persons with disabilities without regard to any other requirement of this chapter relating to the making or purchasing of loans or mortgage loans or to the requirements of RSA 204-C:11 if the authority finds that such financing would result in a public benefit;
XXVI-b. Make loans, on such terms and conditions as the authority may determine, by issuance of bonds or otherwise, secured by homes owned by the elderly without regard to any other requirements of this chapter relating to the making or purchasing of loans or mortgage loans if the authority finds that such financing would result in a public benefit;
XXVI-c. Issue bonds, without regard to any other requirements of this chapter, for housing, housing projects, or any other facility located outside of the state that could be financed by the authority if it were located within the state, if the authority finds that such financing would result in a public benefit to the state or its citizens, provided that no such bonds shall be considered an obligation or pledge of the faith and credit of the state; and
XXVII. Do any and all things necessary or convenient to carry out its purposes and exercise, implement and perfect the powers given and granted in this chapter.
Source. 1981, 466:2. 1988, 250:5. 1990, 140:2, III; 187:3. 2003, 319:9. 2004, 257:44, eff. July 1, 2004. 2017, 156:64, eff. July 1, 2017. 2018, 331:14, eff. June 25, 2018. 2021, 91:198, eff. July 1, 2021.
Section 204-C:8-a
204-C:8-a Publication Required. –
The authority shall publish annually such information on maximum restricted rents, utility allowances, vacancy rates, and capitalization rates as necessary to appraise property pursuant to RSA 75:1-a.
Source. 2008, 390:6, eff. July 1, 2008.
Section 204-C:8-b
204-C:8-b Terms and Conditions of Municipal Grants or Loans. –
Prior to making a grant or loan of funds to a municipality and at least 14 days prior to acceptance of such funds by the municipality, the authority shall fully disclose in writing to the governing body of the municipality all terms and conditions associated with acceptance of such funds. Disclosure shall include all terms and conditions associated with any third party that has provided funding to the authority in connection with such financing, including any federal agencies.
Source. 2015, 16:1, eff. July 4, 2015.
Section 204-C:9
204-C:9 Rulemaking Authority. –
The authority may adopt rules pursuant to its own procedures relative to:
I. The conduct of its business;
II. The making, purchasing and sale of loans and mortgage loans under this chapter and the application of proceeds of any sale;
III. The making of loans to lending institutions;
IV. The regulation of mortgagors and eligible elderly and low income persons and families and eligible persons and families;
V. The selection and admission of tenants and other occupants;
VI. The selection of owners;
VII. The uses of housing;
VIII. The establishment of dependency and medical allowances;
IX. The definition of dwelling unit;
X. Lending institutions acting as agents of the authority for the purpose of accepting, reviewing and acting upon applications for mortgage loans and preparing, processing and servicing such loans;
XI. Reasonable fees to be paid to lending institutions for the services described in paragraph X;
XII. The making of loans to or purchasing of securities from lending institutions and the application of the proceeds of the loans, including, without limitation:
(a) The interest rate and terms of loans to be made to lending institutions;
(b) The time within which lending institutions must make commitments and disbursements for mortgages;
(c) The type and amount of collateral security to be pledged by lending institutions to assure repayment of loans from the agency;
(d) Standards as to the construction or rehabilitation for the housing to be financed;
(e) Procedures for the submission of requests or the invitation of proposals for loans to lending institutions;
(f) Certificates of compliance by the lending institution with the terms and conditions governing the making of loans and purchase of securities, and the application of the proceeds of such loans and securities;
(g) Schedules of fees and other charges to be made by the authority and the lending institution in renewing, acting upon, or accepting applications for loans under RSA 204-C:19, and any other matters related to such loans as the authority may deem necessary;
XIII. Such other matters as are necessary to carry out the powers and duties of the agency.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:10
204-C:10 Bonds by Certain Mortgagors. –
On all construction loans for the construction or rehabilitation of 11 or more dwelling units, as defined by the authority pursuant to adopted rules, the authority shall require bonds to be furnished by the mortgagor, an equivalent escrow or letter of credit arrangement supervised by the authority, or any other surety sufficient to assure performance by the contractor party to the contracts awarded to carry on such work, and to assure payment out of the construction loan funds for all labor and materials for which claimants would be able to claim a mechanic's lien pursuant to RSA 447.
Source. 1981, 466:2, eff. July 1, 1981. 2019, 116:1, eff. Aug. 20, 2019.
Section 204-C:11
204-C:11 Area of Operation; Sole Statewide Public Housing Agency. –
The area of operation of the authority shall be the entire state. The authority is a public housing agency as defined in the United States Housing Act of 1937. The authority is the only statewide public housing agency and is the sole entity authorized in New Hampshire to undertake any statewide contract administration for section 8 project housing assistance contracts issued under the United States Housing Act of 1937. The authority may subcontract such work to any other entities it determines, in its sole judgment, to be qualified to perform the work.
Source. 1981, 466:2. 1983, 367:1. 1988, 250:6, eff. April 30, 1988. 2019, 116:2, eff. Aug. 20, 2019.
Section 204-C:11-a
204-C:11-a Financing for Community Providers. –
I. Notwithstanding any other requirement of this chapter relating to the making or purchasing of loans or mortgage loans or to the provisions of RSA 204-C:28, the authority may make loans on such terms, conditions and security, if any, as the authority may determine, to nonprofit corporations to finance, refinance or reimburse all or a portion of the costs of acquiring, constructing, improving or equipping community provider facilities in the state.
II. For purposes of this section, "community provider facilities" means facilities owned and used by a nonprofit corporation, or a nonprofit affiliate of a nonprofit corporation, including, but not limited to, homes for the disabled, residential and day care facilities, administrative facilities, community facilities, transportation facilities, health facilities, recreational facilities, cultural facilities, educational facilities, and welfare facilities, deemed by the authority to be necessary, convenient, ancillary or desirable in connection with the rendering by such nonprofit corporation of services as a community provider to persons in the state.
III. Before making any loan under this section, the authority shall find that such financing, refinancing or reimbursement will result in a public benefit. Loans made by the authority under this section may be made from the proceeds of obligations issued by the authority or from other sources; provided, however, no such obligation shall constitute a general obligation of the authority or a debt or pledge of the faith and credit of the authority.
Source. 1990, 220:1, eff. June 26, 1990.
Section 204-C:12
204-C:12 Exempt from Department of Transportation Supervision. –
Any project or program undertaken under the provisions of this chapter shall be exempt from the provisions of RSA 228.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:13
204-C:13 Repealed by 1988, 240:9, eff. July 1, 1988. –
Section 204-C:14
204-C:14 Bonds Subject to Federal Laws. –
All bonds issued by the authority shall be subject to applicable federal law.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:15
204-C:15 Mortgage Loans. –
Without limiting the generality of the powers granted under RSA 204-C:8, with respect to mortgage loans to be made by the authority, the authority may:
I. Make, undertake commitments to make and participate with governmental agencies, lending institutions and other sources in the making of mortgage loans to eligible mortgagors, for the purpose of acquiring, refinancing, building or rehabilitating housing to provide housing for eligible elderly and low income persons and families and other eligible persons and families in accordance with this chapter in locations where, in the judgment of the authority, there is a need for such housing. Such loans may include acquisition loans, refinancing loans, construction loans and permanent loans.
II. Enter into agreements with lending institutions in the state which shall, pursuant to the rules of the authority, act as the authority's agent for the purpose of accepting, reviewing and acting upon applications for mortgage loans and preparing, processing and servicing such loans. For such activities, the lending institutions shall receive reasonable fees as established by rules of the authority.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:16
204-C:16 Conditions on Mortgage Loans. –
Mortgage loans made by the authority to eligible mortgagors shall be made subject to the following terms and conditions:
I. No application for a mortgage loan shall be approved unless the applicant is an eligible mortgagor.
II. Mortgage loans shall be made at interest rates established by the authority. In connection with the making of mortgage loans and commitments for mortgage loans, and in addition to such interest charges, the authority may charge and collect such fees and charges, including, but not limited to, reimbursement of the authority's financing costs, service charges, insurance premiums and mortgage insurance premiums, as the authority determines to be reasonable.
III. The ratio of mortgage loan to project value and the amortization period of federally insured mortgage loans made under this chapter shall be governed by the mortgage insurance commitment for each project concerned, but such amortization period shall not exceed 50 years. In the case of a mortgage loan which is not federally insured, the ratio of loan to project value and the amortization period of loans shall be determined in accordance with rules adopted by the authority; but, in no event, shall such loan-to-value ratio exceed 95 percent of development cost of the housing financed by such mortgage loan, nor shall the amortization period exceed 50 years, except that, in the case of loans to governmental agencies, nonprofit eligible mortgagors, or eligible mortgagors which are organized as condominium associations or cooperatives, such loan shall not exceed 100 percent of such development cost.
IV. Each mortgage shall be in recordable form and each mortgage and promissory note accompanying such mortgage shall retain such terms and provisions and be in such form as may be approved by the authority.
V. With respect to any rental housing, an eligible mortgagor may not in any one year make distributions of income or earnings from or have equity in, or indebtedness from, housing financed by the authority in excess of the amounts prescribed by the rules of the authority; but, in no event, shall a mortgagor make distributions of income of the mortgagor in any one year or cumulatively in excess of such limits as may be established by the authority in rules adopted pursuant to RSA 204-C:53, of the mortgagor's equity in such housing, which for the purposes of this chapter shall be the development cost of the housing, as determined by the authority at the time of making the final mortgage advance, less the amount of the final advance of the mortgage loan to the eligible mortgagor. Such mortgagor's equity shall remain constant as long as the authority's mortgage shall be outstanding unless otherwise provided for by rules of the authority.
Source. 1981, 466:2. 1983, 468:13, eff. June 30, 1983. 2014, 323:3, eff. Sept. 30, 2014.
Section 204-C:17
204-C:17 Purchase of Mortgage Loans and Loans. –
Without limiting the generality of the powers granted under RSA 204-C:8, the authority may:
I. Invest in, purchase or make commitments to purchase, and take assignments from lending institutions of loans, whether or not secured by a mortgage, mortgage loans and promissory notes accompanying such loans or mortgage loans, including federally insured loans or mortgage loans or participations with lending institutions in such loans, promissory notes and mortgage loans, for the construction, rehabilitation, purchase, leasing or refinancing of housing within the state;
II. Sell, at public or private sale, with or without public bidding, any mortgage loan, loan or other obligation held by the authority; and
III. Adopt, modify or repeal rules governing the purchase and sale of loans and mortgage loans and the application of proceeds thereof.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:18
204-C:18 Conditions on Purchase of Mortgage or Loan. –
At or before the time of purchase of any loan or mortgage loan, the lending institution which made such loan or mortgage loan shall certify to the authority with respect to all loans or mortgage loans transferred to the authority:
I. That the loans or mortgage loans transferred to the authority are primarily for housing for eligible persons and families within the state; or
II. That the proceeds of such purchase will be reinvested in loans or mortgage loans for housing eligible persons and families.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:19
204-C:19 Loans to Lending Institutions. –
Without limiting the generality of the powers granted under RSA 204-C:8, the authority may:
I. Make loans to lending institutions under terms and conditions requiring the proceeds of the loans to be used by such lending institutions for the making of new mortgage loans for housing for eligible persons and families;
II. Purchase securities secured by, or providing financing for, mortgages on housing from lending institutions;
III. Require that loans to, or such securities purchased from, lending institutions shall be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts and consisting of such obligations, securities and mortgage loans as the authority shall by resolution determine to be necessary to assure the payment of such loans or such securities purchased and the interest on them as the same become due. The authority may require in the case of any or all lending institutions that any required collateral be lodged with a bank or trust company located either within or outside the state designated by the authority as custodian for the collateral. In the absence of such requirement, a lending institution shall, if collateral is to be provided for loan of such securities purchased, upon receipt of the proceeds from the authority, enter into an agreement with the authority containing such provisions as the authority shall deem necessary to adequately identify and maintain such collateral and service the same and shall provide that such lending institution shall hold such collateral as an agent for the authority and shall be held accountable as the trustee of an express trust for the application and disposition of and the income from the collateral solely to uses and purposes in accordance with the provisions of such agreement. A copy of each such agreement and any revisions or supplements to the agreement shall be filed with the secretary of state and no further filing or other action under RSA 382-A or any other law of the state shall be required to perfect the security interest of the authority in such collateral or any additions to or substitutions for the collateral; and the lien and trust for the benefit of the authority so created shall be binding from and after the time made against all parties having claims of any kind in tort, contract, or otherwise against such lending institution. The authority may also establish such additional requirements as it deems necessary with respect to the pledging, assigning, setting aside or holding of such collateral and the making of substitutions for or additions to and the disposition of income and receipts from the collateral; and
IV. Collect, enforce the collection of, and foreclose on any collateral securing its loans to, or purchase of securities from, lending institutions and acquire or take possession of such collateral and sell the same at public or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the interest of the authority in the collateral, all subject to any agreement with bondholders or noteholders.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:20
204-C:20 Findings. –
Prior to making any mortgage loan or any loan to a lending institution, or prior to purchasing any loan or mortgage loan under this chapter, the authority shall find with respect to each such commitment:
I. That, with respect to rental multi-family housing, eligible elderly and low income persons and families can afford the adjusted rental or carrying charges set for a reasonable number, as determined by the authority, but in no event fewer than 1/8 of the units in the housing, to be financed pursuant to such commitment without the expenditure of more than 30 percent of their annual income for basic shelter cost, including the additional cost, if any, of heat, hot water, and other utilities, except telephone; provided, however, that, if necessary to make the project financially feasible, such percentage of annual income may be increased to 32 percent; and provided further that, if, in order to meet federal requirements or to obtain federal assistance, a different percentage of annual income shall be required, then such percentage of annual income shall be increased, or based on the federal requirement, if applicable;
II. That with respect to housing other than rental multi-family housing, that the general housing market area, as determined by the authority, to be served by such housing does or shall by reason of the housing to be provided include housing for eligible elderly or low income persons and families, as well as eligible persons and families;
III. That there exists a shortage of decent, safe and sanitary dwelling accommodations at rents or carrying charges which eligible persons and families including eligible elderly and low income persons and families can afford within the general housing market area, as determined by the authority, to be served by such housing;
IV. That without the assistance contemplated by such commitment, private enterprise cannot supply such housing in such general housing market area at rentals or carrying charges which eligible persons and families can afford; and at which eligible elderly and low income persons and families can afford without the expenditure of more than 30 percent of their income for basic shelter cost, including the additional cost, if any, of heat, hot water, and other utilities, except telephone;
V. That as to any loan to a lending institution or purchase of a loan or mortgage loan, an inadequate supply of funds for housing loans or mortgage loans exists in normal banking channels within the state and available to the general housing area;
VI. That such housing either is itself designed to house eligible elderly and low income persons and families and eligible persons and families of varied economic means or shall not create or contribute to an undue concentration of low income families in one neighborhood;
VII. That the housing to be financed by the authority pursuant to such commitment shall increase the supply of or promote the quality of decent, safe and sanitary housing for eligible persons and families, including a reasonable number, as determined by the authority, of eligible elderly and low income persons and families and shall be of public use and provide a public benefit;
VIII. That such housing shall be undertaken, and the eligible mortgagor, eligible person and family or lending institution regulated, pursuant to the rules of the authority and subject to this chapter; and
IX. That the authority's estimate of its revenues from the financing of such housing, together with all subsidies, grants or other financial assistance from governmental agencies or other sources to be received in connection with such housing, shall equal in the aggregate the amount estimated by the authority as necessary for debt service on its bonds and notes to be issued for the purpose of financing such housing.
Source. 1981, 466:2. 1983, 468:10. 1988, 240:6, eff. July 1, 1988. 2014, 323:4, eff. Sept. 30, 2014.
Section 204-C:21
204-C:21 Regulatory Agreements for Mortgage Loans. –
With respect to mortgage loans made by the authority under RSA 204-C:15, each mortgage to an eligible mortgagor of multi-family housing shall be subject to a regulatory agreement between the authority and the mortgagor which subjects the multi-family housing, the mortgagor and principals of the mortgagor to limitations established by the authority as to rentals and charges, builder's and mortgagor's profits and fees, the disposition of the said housing subject to the mortgage and maximum distributions and other matters which in the judgment of the authority are necessary or desirable to carry out the purposes of this chapter.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:22
204-C:22 Rent Levels. –
With respect to mortgage loans made by the authority under RSA 204-C:15, the authority shall, pursuant to rules adopted by it, make the following initial rental determinations for the dwelling units included in rental multi-family housing financed under this chapter:
I. The rent or carrying charge to be charged to eligible persons and families other than elderly and low income persons and families, which together with subsidies, if any, shall not be lower than the economic cost of such housing and be sufficiently high to achieve and maintain a sound development; and
II. The rent or carrying charge to be charged to elderly and low income persons and families which rent shall be sufficiently low in the judgment of the authority for at least a reasonable number of the dwelling units, but in no event fewer than 1/8 of such units, to be provided by such housing to enable such persons and families to occupy such units without the expenditure of more than 30 percent of their annual income for basic shelter cost, including the additional cost, if any, of heat, hot water, and other utilities, except telephone; provided, however, that, if necessary to make the project financially feasible, such percentage of annual income may be increased to 32 percent; and provided further that, if, in order to meet federal requirements or to obtain federal assistance, a different percentage of annual income shall be required, then such percentage of annual income shall be increased or based on the federal requirement, if applicable.
Source. 1981, 466:2. 1983, 468:11, eff. June 30, 1983. 2014, 323:5, eff. Sept. 30, 2014.
Section 204-C:23
204-C:23 Adjustments of Rents. –
After such initial rental determinations, any adjustment in the rents or carrying charges to be charged for housing financed under this chapter shall either be approved by the authority or comply with rules, if any, of the authority in effect at the time which govern such adjustment, subject only to the paramount rights of other governmental agencies, if any.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:24
204-C:24 Tenants and Operations. –
With respect to mortgage loans made by the authority under RSA 204-C:15, before making a loan commitment for multi-family housing, the authority shall approve a tenant or owner selection plan submitted by the eligible mortgagor. The authority shall make and publish rules from time to time governing the terms of such tenant or owner selection plans. Such plans shall include criteria for tenant or owner selection which establish income limits for eligible persons and families in accordance with rules of the authority, but which may vary with the size and circumstances of such person or family. Tenant or owner selection plans shall provide that as between applicants equally in need and eligible for occupancy of a unit, preference shall be given to persons displaced by public action or natural disaster, pursuant to such rules as the authority may adopt.
Source. 1981, 466:2. 1990, 187:6, eff. June 26, 1990.
Section 204-C:25
204-C:25 Repealed by 2014, 323:7, eff. Sept. 30, 2014. –
Section 204-C:26
204-C:26 Bonds of Authority. –
The authority shall have the power, and is hereby authorized to issue its bonds and notes in such principal amount as the authority shall determine to be necessary to provide sufficient funds for achieving any of its corporate purposes, including the making and purchase of mortgage loans, and loans to lending institutions, the payment of interest on notes and bonds of the authority, establishment of reserves to secure such bonds and notes, including the reserve funds created pursuant to RSA 204-C:40, and all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers. Whether or not the bonds and notes are of such form and character as to be negotiable instruments under RSA 382-A:8, they shall be and are deemed to be, for all purposes, negotiable instruments within the meaning of and for all the purposes of RSA 382-A:8 subject only to the provisions of the bonds and notes for registration.
Source. 1981, 466:2. 1987, 120:2, eff. May 7, 1987.
Section 204-C:27
204-C:27 Bonds for Refunding Purposes. –
The authority is authorized to provide for the issuance of its bonds or notes for the purpose of refunding any bonds or notes of the authority then outstanding, including the payment of any redemption premium on such bonds and notes and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity of such bonds or notes, and, if deemed advisable by the authority, for the additional purpose of paying all or any part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any housing, or the making or purchase of any mortgage loan on any housing or the making of any loan to a lending institution. The proceeds of any such bonds or notes issued for the purpose of refunding outstanding bonds or notes, may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds or notes either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority. Any such escrowed proceeds, pending such use, may be invested and reinvested, subject to any agreements with note or bondholders, in such manner as the authority shall determine, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, on the outstanding bonds or notes to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments may be returned to the authority for use by it in any lawful manner.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:28
204-C:28 General Obligations. –
I. Except as may otherwise be expressly provided by resolution of the authority, every issue of its notes and bonds shall be general obligations of the authority payable out of any revenues or moneys of the authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues. The authority shall not at any time have outstanding obligations, other than obligations to which paragraph II applies, the unpaid principal amount of which is in excess of $600,000,000 in the aggregate. In computing the total amount of obligations of the authority which may at any time be outstanding for any purpose under this chapter, the amount of the outstanding obligations refunded or to be refunded from the proceeds of the sale of new obligations or by the exchange of new obligations shall be excluded.
II. In addition to the obligations which the authority may have outstanding under paragraph I, the authority may issue notes and bonds not in excess of $800,000,000 for the purposes specified in this paragraph. Such notes and bonds shall constitute general obligations of the authority payable out of any revenues or moneys of the authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues. The purposes for which such notes and bonds may be issued pursuant to this paragraph shall be to provide sufficient funds for any one or more of the following:
(a) The making of loans and mortgage loans to eligible mortgagors and eligible persons and families and the making of loans to lending institutions in each case to finance the acquisition, construction or rehabilitation of housing designed and planned, or being converted, to consist of not more than 4 family units for occupancy by eligible persons and families and of which at least one unit is occupied or is to be occupied by an eligible person or family owning the housing;
(b) The making of loans or advances with interest and whether or not secured by a mortgage to a single eligible person or family for the costs of reconstruction, rehabilitation or other improvements of existing housing owned by such single person or family and consisting of not more than 4 family units of which one is or is to be occupied by the owner, and for down payment costs, closing costs and other initial expenses of acquiring, financing or refinancing housing owned or to be owned by a single eligible person or family and consisting of not more than 4 family units of which one is or is to be occupied by the owner; the purchase of mortgages on any such housing or securing such loans or advances described above; the establishment of reserves to secure such notes and bonds, including any reserve fund created pursuant to RSA 204-C:40; and
(c) All other expenditures of the authority incident to and necessary or convenient to carry out the issuance of notes and bonds to provide sufficient funds for any one or more of the other purposes enumerated in this paragraph. The provisions of RSA 204-C:41 shall not apply with respect to any bond reserve fund established under RSA 204-C:40 with respect to bonds of the authority to which this paragraph applies.
III. In addition to the obligations which the authority may have outstanding under paragraphs I and II, the authority may issue notes and bonds not in excess of $600,000,000 for the purposes specified in this paragraph. Such notes and bonds shall constitute general obligations of the authority payable out of any revenue or moneys of the authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues. The purposes for which such notes and bonds may be issued shall be to provide sufficient funds for any purpose authorized by this chapter; such notes and bonds may, at the discretion of the authority, be subject to the provisions of RSA 204-C:41 with respect to any bond reserve fund established under RSA 204-C:40 and may, at the discretion of the authority, be subject to the provisions of RSA 204-C:49, II.
Source. 1981, 466:2. 1983, 468:12. 1985, 203:1. 2007, 263:73, eff. July 1, 2007.
Section 204-C:29
204-C:29 Maturity Dates. –
The notes and bonds shall be authorized by resolution of the authority, shall bear such date or dates and shall mature at such time or times in the case of any such note, or any renewals of such note, not exceeding 8 years from the date of issue of the original such note, and in the case of any such bond not exceeding 50 years from the date of its issue as such resolution or resolutions may provide. The bonds may be issued as serial bonds payable in annual installments or as term bonds or as a combination of both. The notes and bonds shall bear interest at such rate or rates, be in such denominations, have such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places within or without the state and be subject to such terms of redemption as such resolution or resolutions may provide. The notes and bonds of the authority may be sold by the authority at public or private sale at such price or prices as the authority shall determine, and the authority may pay all expenses, premiums and commissions which it may deem necessary or advantageous in connection with the issuance and sale of such notes and bonds.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:30
204-C:30 Investment of Authority Money. –
Any moneys of the authority including proceeds from the sale of any bonds or notes, and revenues, receipts and income from any of its mortgages or other assets, may be invested and reinvested in such obligations, securities and other investments as shall be provided in the resolution or resolutions under which such bonds or notes are authorized.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:31
204-C:31 Subordinate Obligations. –
Issuance by the authority of one or more series of bonds or notes for one or more purposes shall not preclude the authority from issuing other bonds or notes in connection with the same purpose or purposes, but the proceedings under which any subsequent bonds or notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes unless in the proceedings authorizing such prior issue the right is reserved to issue subsequent bonds or notes on a parity with such prior issue.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:32
204-C:32 Conditions on Obligations. –
Any resolution authorizing any notes or bonds or any issue of notes or bonds may contain provisions which shall be part of the contract or contracts with the holders of the notes or bonds, as to:
I. Pledging all or any part of the revenues of the authority to secure the payment of such notes or bonds, or of any issue of notes or bonds, subject to such agreements with noteholders or bondholders as may then exist;
II. Pledging all or any part of the assets of the authority, including obligations and mortgages securing the same, to secure the payment of such notes or bonds, or of any issue of notes or bonds, subject to such agreements with noteholders or bondholders as may then exist;
III. The use and disposition of the gross income from mortgages owned by the authority and the payment of principal of mortgages owned by the authority;
IV. The setting aside of reserves, including, but not limited to, reserve funds as provided in RSA 204-C:40, and the regulation and disposition of such reserves;
V. Limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging such proceeds to secure the payment of the notes or bonds or of any issue of notes or bonds;
VI. Limitations on the issuance of additional notes or bonds; the terms upon which additional notes or bonds may be issued and secured; and the refunding of outstanding or other notes or bonds;
VII. The procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which shall consent to such amendment or abrogation, and the manner in which such consent may be given;
VIII. Limitations on the amount of moneys to be expended by the authority for operating expenses of the authority;
IX. Vesting in a trustee or trustees such property, rights, powers and duties in trust as the authority may determine;
X. Defining the acts or omissions to act which shall constitute a default in the obligations and duties of the authority to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in the event of such default, including as a matter of right the appointment of a receiver; provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter; and
XI. Any other matters, of like or different character, which in any way affect the security or protection of the holders of the notes or bonds.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:33
204-C:33 Perfection of Pledge. –
Any pledge made by the authority shall be valid and binding from the time when the pledge is made. The revenues, moneys, or property so pledged and received after the pledge by the authority shall immediately be subject to the lien of such pledge without any physical delivery or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created need be recorded or filed in order to establish and perfect a lien or security interest in the property so pledged.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:34
204-C:34 Personal Liability Limited. –
Neither the members of the board nor the executive director of the authority nor any other person executing such notes or bonds shall be subject to any personal liability or accountability by reason of the issuance of notes or bonds.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:35
204-C:35 Purchase of Obligations by Authority. –
The authority may, out of any funds available for bonds and notes, purchase its own bonds or notes. The authority may hold, pledge, cancel or resell such bonds or notes, subject to and in accordance with agreements with bondholders and noteholders.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:36
204-C:36 Conditions for Approval. –
Bonds or notes may be issued under this chapter without obtaining the consent of the governor and council or of any department, division, commission, board, body, bureau or agency of the state; and without any other proceedings or the happening of any conditions or things except those proceedings or the occurrence of those conditions or things which are specifically required by this chapter and by the provisions of the resolution authorizing the issuance of such bonds or notes or the trust agreement securing the same.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:37
204-C:37 Trust Agreements. –
In the discretion of the authority, any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or outside of the state. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received or proceeds of any mortgage or mortgages pledged and may convey or mortgage the assets of the authority or any portion of such assets. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. Any such trust agreement or resolution may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out such trust agreement or resolution may be treated as a part of the cost of the operation of the authority.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:38
204-C:38 Validity of Signatures. –
In case any of the members, executive director or officers of the authority whose signatures appear on any notes or bonds or coupons shall cease to be such members, executive director or officers before the delivery of such notes or bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such members, executive director or officers had remained in office until such delivery.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:39
204-C:39 Validity of Obligations. –
In any suit, action or proceedings involving the validity or enforceability of any bond or note of the authority or the security for such bond or note, any such bond or note reciting in substance that it has been issued by the authority to aid in financing housing to provide dwelling accommodations for eligible persons and families shall be conclusively deemed to have been issued for housing of such character and said housing shall be conclusively deemed to have been planned, located and constructed in accordance with this chapter.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:40
204-C:40 Reserve Funds. –
I. The authority may create and establish one or more special funds, hereafter referred to as "bond reserve funds", and shall pay into each such bond reserve fund any moneys appropriated and made available by the state for the purpose of such fund; any proceeds of sale of notes or bonds to the extent provided in the resolution or resolutions of the authority authorizing the issuance of such bonds or notes; and any other moneys which may be available to the authority for the purpose of such fund from any other source or sources. All moneys held in any bond reserve fund are hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds with respect to which such bond reserve fund may be established, as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made and the revenues, moneys or property so pledged subject to RSA 204-C:33. The use and disposition of moneys to the credit of such bond reserve fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such bond reserve fund shall be a fund for all such bonds issued to finance housing without distinction or priority of any bond over another; provided the authority in any such resolution or trust agreement may provide that such bond reserve fund shall be the fund for particular housing and for the bonds issued to finance particular housing and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security authorized to other bonds of the authority and, in such case, the authority may create separate or other similar funds in respect of such subordinate lien bonds.
II. Moneys in any bond reserve fund shall not be withdrawn from at any time in such amount as would reduce the amount of such fund to less than the bond reserve fund requirement established for such fund, as provided in paragraph IV, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due of principal, interest, redemption premiums and the sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the authority are not available. Any income or interest earned by any bond reserve fund resulting from the investment of such bond may be transferred by the authority to other funds or accounts of the authority to the extent it does not reduce the amount of that bond reserve fund below the bond reserve fund requirement for such fund.
III. The authority shall not at any time issue bonds, secured in whole or in part by a bond reserve fund, if upon the issuance of such bonds, the amount in such bond reserve fund will be less than the bond reserve fund requirement for such fund, unless the authority at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds issued, or from other sources, an amount which, together with the amount then in such fund, shall not be less than the bond reserve fund requirement for such fund.
IV. In this section, "bond reserve fund requirement" means, as of any particular date of computation, an amount of money, as provided in the resolution of the authority authorizing the bonds or notes with respect to which such fund is established. In computing the amount of the bond reserve funds for the purpose of this section, securities in which all or a portion of such funds shall be invested shall be valued in such manner as the authority by resolution shall determine.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:41
204-C:41 Requests for Appropriations. –
I. To assure the continued operation and solvency of the authority for the carrying out of its corporate purposes, the chairperson of the authority shall, not later than the twentieth legislative day of each session of the general court, submit to the chairperson of the house finance committee a written request for an appropriation for the sum, if any, required to insure that the bond reserve funds established under RSA 204-C:40 equal the bond reserve fund requirement. All sums appropriated by the general court, if any, paid to the authority pursuant to this section shall be deposited by the authority in the bond reserve fund.
II. All amounts paid over to the authority by the state pursuant to this section shall constitute and be accounted for as advances by the state to the authority and, subject to the rights of the holders of any bonds or notes of the authority theretofore or thereafter issued, shall be repaid to the state without interest from all available operating revenues of the authority in excess of amounts required for the payment of obligations of the authority, the bond reserve funds and operating expenses.
Source. 1981, 466:2. 1995, 9:25, eff. June 11, 1995.
Section 204-C:42
204-C:42 Remedies of Bondholders and Noteholders. –
Any holder of notes or bonds issued under this chapter or any of the coupons appertaining to such notes or bonds, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of, or any such trust agreement securing such bonds, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and encourage any and all rights under the laws of the state or granted hereunder or under such resolution or trust agreement, and may enforce and compel the performance of all duties required by this chapter or by such resolution or trust agreement to be performed by the authority or by any officer, employee or agent of the authority, including the fixing, charging and collecting of the rates, rents, fees and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established and collected.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:43
204-C:43 Alteration of Rights of Bondholders and Noteholders. –
The state does hereby pledge to and agree with the holders of any notes or bonds issued under this chapter that the state shall not limit or alter the rights hereby vested in the authority to fulfill the terms of any agreements made with the said holders of such notes or bonds or in any way impair the rights and remedies of such holders until such notes and bonds, together with the interest on them, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The authority is authorized to include this pledge and agreement of the state in any agreement with the holders of such notes or bonds.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:44
204-C:44 Credit of State Not Pledged. –
Obligations issued under this chapter shall not be deemed to constitute a debt or liability or obligation of the state or of any political subdivision of the state, or a pledge of the faith and credit of the state or of any political subdivision of the state, but shall be payable solely from the revenues or assets of the authority. All such obligations issued under this chapter shall contain on their face a statement to the effect that the authority shall not be obligated to pay the same nor the interest on such obligations except from the revenues or assets pledged for them and that neither the faith and credit nor the taxing power of the state or of any political subdivision of the state is pledged to the payment of the principal of or the interest on such notes and bonds. The issuance of obligations under this chapter shall not directly or indirectly or contingently obligate the state or any political subdivision of the state to levy or to pledge any form of taxation whatever for such obligations or to make any appropriation for their payment.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:45
204-C:45 Obligations as Legal Investments. –
The obligations of the authority shall be legal investments in which all public officers and public bodies and authorities of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, banking institutions including savings and loan associations, building and loan associations, trust companies, savings banks and savings associations, credit unions, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds, notes or in other state obligations, may properly and legally invest funds, including capital, in their control or belonging to them. Such obligations of the authority are also hereby made securities which may properly and legally be deposited with and received by all public officers and public bodies of the state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of bonds, notes or other state obligations is now or may hereafter be authorized by law and shall be eligible as collateral with respect to deposits of state moneys, if any, required to be collateralized. This section shall apply notwithstanding any restrictions on investments contained in other laws.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:46
204-C:46 Audit and Annual Reports. –
On or before November 1 annually, the authority shall submit a detailed annual report of its operations and a complete financial audit for the preceding fiscal year to the governor, the executive council, the speaker of the house of representatives, the senate president, the house finance committee, the senate finance committee, and the state library. The audit shall be performed by an independent certified public accountant selected by the authority and conducted in accordance with generally accepted accounting principles. The annual report shall:
I. Provide a complete operating and financial statement of the authority during the previous fiscal year;
II. Identify all housing projects funded during the last fiscal year, including their location, scope, and status; and
III. Describe the authority's progress in increasing housing for the elderly.
Source. 1981, 466:2. 1985, 399:3, I, eff. July 1, 1985. 2015, 16:2, eff. July 4, 2015.
Section 204-C:47
204-C:47 Biennial Housing Plan. –
The authority shall prepare on or before January 1, 1983, and update biennially thereafter a state housing plan to address the housing needs of persons of low and middle income. The plan shall be submitted to the governor and council, the speaker of the house and the president of the senate for review and comment.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:48
204-C:48 Authorization to Accept State Money. –
The authority is authorized to accept such moneys as may be appropriated from time to time by the legislature for carrying out its corporate purpose. The authority shall repay the state all sums which are appropriated to the authority for organizational purposes in 5 annual installments, beginning with the fifth year after the receipt of such funds.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:49
204-C:49 Tax Exemption. –
I. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the state, for their well being and prosperity and for the improvement of their social and economic conditions, and the authority shall not be required to pay any tax or assessment on any property owned by the authority under the provisions of this chapter or upon the income from such property; nor shall the authority be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf. Any obligations issued by the authority under this chapter, their transfer, and the income from such obligations, including any profits made on their sale shall at all times be free from taxation by the state or any political subdivision of the state, excepting inheritance, estate and gift taxes.
II. The authority may covenant and consent that the interest on certain of its bonds shall be includable, under the Internal Revenue Code of 1954 or any subsequent corresponding internal revenue law of the United States, in the gross income of the holders of the bonds to the same extent and in the same manner that the interest on bills, bonds, notes or other obligations of the United States is includable in the gross income of the holders thereof under said Internal Revenue Code or any such subsequent law. The powers herein conferred shall be in addition to the powers conferred by any other law and such powers shall not be subject to the limitations or restrictions of any other law, but nothing contained herein shall be construed to covenant or consent, or to authorize any covenant or consent, to the application of any other provision of any other law, federal or state, to the authority or to such bonds, notes, or other obligations, or to the elimination or modification in any way of any other exemption, including without limitation exemption from taxation under RSA 204-C:49, I, privilege, or immunity thereof.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:50
204-C:50 Statutory Construction. –
This chapter shall not be construed as a restriction or limitation upon any powers which the authority might otherwise have under laws of the state, and this chapter is cumulative to such powers. This chapter does and shall be construed to provide a complete, additional and alternative method for the doing of the things authorized in said chapter and shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of obligations of the authority under this chapter need not comply with the requirements of any other state law applicable to the issuance of bonds, notes and other obligations. Contracts for the acquisition, construction or rehabilitation of any housing undertaken under this chapter need not comply with any other state law applicable to contracts for the construction and acquisition of state owned property and shall be exempt from the provisions of RSA 228. No proceedings, notice or approval shall be required for the issuance of any obligations of the authority or any instrument as security for such obligations, except as is provided in this chapter.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:51
204-C:51 Local Laws and Taxes. –
I. All multi-family housing financed under this chapter shall be subject to the planning, zoning, sanitary and building laws, ordinances and regulations applicable in the municipality in which such multi-family housing is situated. In the planning and location of any multi-family housing, the authority shall take into consideration the relationship of such multi-family housing to any larger plan or long-range program for the development of any such municipality.
II. With the consent of the local governing body of such municipality, the authority may require the eligible mortgagor to enter into an agreement between such municipality and the authority pursuant to which the multi-family housing financed by the authority shall be exempt from local real estate taxes, and the eligible mortgagor shall be required to make payments in lieu of taxes to the state or any political subdivision of the state as the authority finds consistent with the maintenance of the character of such multi-family housing which is occupied by elderly and low income persons and families and for the achievement of the other purposes of this chapter.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:52
204-C:52 Relation to Other Agencies. –
The financial and administrative operations of the authority shall be exempt from the rules of any department, commission, board, bureau or agency of the state except to the extent and in the manner provided in this chapter.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:53
204-C:53 Exemption from Administrative Procedure Act. –
The authority shall be exempt from the provisions of RSA 541-A and may adopt rules in accordance with its own procedures. The authority shall file in the office of legislative services a copy of all existing rules adopted by the authority. Any rule adopted after the effective date of this section or any amendment or repeal of any existing rule shall be filed in the office of legislative services within 7 days of such adoption, amendment or repeal.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:54
204-C:54 Separability. –
If any clause, sentence, paragraph, section or part of this chapter shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered.
Source. 1981, 466:2, eff. July 1, 1981.
Section 204-C:55
204-C:55 Inconsistent Provisions in Other Laws Superseded. –
Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, general or special, the provisions of this chapter shall be controlling.
Source. 1981, 466:2, eff. July 1, 1981.
Affordable Housing Fund
Section 204-C:56
204-C:56 Definitions. –
As used in this subdivision:
I. "Affordable housing" means:
(a) Housing whose combined rental and utility costs or combined mortgage loan debt services, property taxes and required insurance do not exceed 30 percent of the gross income of persons of low or moderate income, as the case may be.
(b) In cases where there is no direct federal or state rental assistance being provided to the unit or the tenant who occupies it, a housing unit may be deemed affordable if the monthly rent does not exceed 1/12 of the tenant's pro rata share of the annual operating expenses, mortgage payments, and real estate taxes for the project; provided that:
(1) In no case shall depreciation of real or personal property be deemed an operating expense; and
(2) The rent does not exceed the applicable fair market rent, as published from time to time by the United States Department of Housing and Urban Development pursuant to the section 8 existing housing or "housing voucher" programs, 42 U.S.C. section 1437f.
(c) Notwithstanding any other provisions of this section, a unit which exceeds the fair market rent as defined in subparagraph I(b)(2) of this section may be deemed affordable by the housing finance authority if the authority makes the following specific findings:
(1) Assistance from the fund is necessary to prevent the displacement of low or moderate income tenants from a project in which the majority of tenants are of low or moderate income; and
(2) The applicant has made all reasonable efforts to obtain rental assistance for low or moderate income tenants who will be forced to pay more than 30 percent of their income for rent; and
(3) The rents proposed by the applicant are as low as the applicant can possibly charge without endangering the financial and physical integrity of the project.
II. "Eligible applicants" means:
(a) Nonprofit corporations which have obtained or are in the process of obtaining tax exempt status pursuant to section 501(c)(3) of the United States Internal Revenue Code. The authority shall not enter into any final grant or loan contract with a nonprofit corporation until the corporation's tax exempt status has been obtained.
(b) Consumer cooperatives created pursuant to RSA 301-A which limit the equity value of cooperative shares.
(c) Local housing authorities created pursuant to RSA 203.
(d) Units of local government.
(e) The New Hampshire housing finance authority.
(f) Regional planning commissions created pursuant to RSA 36.
(g) Limited partnerships, if the general partner is a nonprofit corporation which has obtained or is in the process of obtaining tax exempt status pursuant to section 501(c)(3) of the United States Internal Revenue Code.
(h) For-profit partnerships, corporations, proprietorships, or joint venture enterprises and all other business organizations.
III. "Fund" means the affordable housing fund established by RSA 204-C:57.
IV. "Person of low income" means any single individual or any family whose gross income is greater than 50 percent and less than or equal to 60 percent of the median income of, respectively, all single persons or all families, adjusted for number of members, residing in the applicable geographical area of the state.
V. "Person of moderate income" means any single individual or any family whose gross income is greater than 60 percent and less than or equal to 80 percent of the median income of, respectively, all single persons or all families, adjusted for the number of members, residing in the applicable geographical area of the state.
VI. "Person of very low income" means any single individual or any family whose gross income is less than or equal to 50 percent of the median income of, respectively, all single persons or all families, adjusted for the number of members, residing in the applicable geographical area of the state.
Source. 1988, 240:5, eff. July 1, 1988. 2021, 81:3, eff. Apr. 1, 2022.
Section 204-C:57
204-C:57 Fund Established. –
I. There is hereby established within the authority an affordable housing fund. All revenues collected from the sources described in RSA 204-C:59 or from government appropriations or grants shall be credited to the fund, but such revenues shall not be deemed to be money received on account of the state, and nothing in this subdivision shall be understood as pledging the faith and credit of the state. Such funds shall be used by the authority to facilitate the purchase and rehabilitation or construction of affordable housing primarily for low and moderate income persons and families, as provided in paragraph II, and for pre-construction technical assistance to entities which undertake such efforts.
II. The authority shall enter into contracts for grants and loans with eligible applicants according to standards and rules that the authority shall adopt and publish. The authority shall make a good faith effort to approve applications from both for-profit and nonprofit organizations consistent with the criteria established in this paragraph. However, when entering into contracts pursuant to this section, the authority shall give priority to the affordable housing projects which meet one or more of the following criteria:
(a) Projects containing the highest percentage of housing units which are affordable to low income people;
(b) Projects containing the longest commitment to low-income people;
(c) Limited equity cooperatives, including, but not limited to, manufactured housing parks and apartment buildings, in which the majority of members are of low or moderate income;
(d) Projects containing the maximum number of units for low or moderate income families with children; and
(e) Projects which shall preserve the existing stock of low and moderate income housing.
No application from an eligible applicant shall be rejected solely or primarily because a greater level of assistance will be required to make the proposal feasible due to market conditions prevailing in the geographical area as opposed to other areas of the state.
III. In granting assistance pursuant to paragraph II, the authority shall make all reasonable efforts to assure that all geographic areas from which there are proposals satisfying the criteria of paragraph II shall receive assistance.
IV. The authority shall only provide financial assistance under this subdivision for projects that meet one of the following criteria:
(a) At least 50 percent of the units shall be affordable to persons of very low, low, or moderate income;
(b) At least 40 percent of the units shall be affordable to persons of very low or low income; or
(c) At least 20 percent of the units shall be affordable to persons of very low income.
V. Prior to granting any assistance pursuant to RSA 204-C:57, II, the authority shall find with respect to each such commitment:
(a) That there exists a shortage of decent, safe and sanitary housing available at costs which low or moderate income persons can afford within the general housing market area, as determined by the authority;
(b) That without the assistance contemplated by such commitment, private enterprise cannot supply such housing in such general housing market area at rentals or carrying charges which low or moderate income persons can afford without the expenditure of more than 30 percent of their income; and
(c) That the assistance contemplated shall preserve or increase the supply of decent, safe and sanitary housing for low or moderate income persons and shall be of public use and provide a public benefit.
VI. Loans made from the fund shall be for periods and terms to be determined by the authority. Such loans may include, but shall not be limited to:
(a) Long-term mortgage loans to finance the total cost of a project or to supplement other available financing; and
(b) Short-term loans to supplement use of other funds, including tax-exempt bond proceeds.
VII. Prior to granting any assistance pursuant to 204-C:57, II for new construction, the authority shall hold a public hearing in the community in which the proposed project is to be located.
Source. 1988, 240:5, eff. July 1, 1988. 2021, 81:4, eff. Apr. 1, 2022.
Section 204-C:57-a, 204-C:57-b
204-C:57-a, 204-C:57-b Repealed by 1994, 386:13, I, as amended by 1995, 306:8, eff. July 1, 1996. –
Section 204-C:58
204-C:58 Oversight of Projects. –
During the course of construction or rehabilitation of housing in any approved project, it shall be the duty of the authority to render technical assistance to the entity undertaking the project and to oversee the process so as to assure that it is completed in accordance with design specifications, on schedule and within budgetary limits. In case any such project appears to be deviating from specifications, schedule or budget, the authority shall have the option of terminating the project, continuing the project subject to such conditions as appear to the authority to be in the public interest, or condoning the deviations if the authority concludes that they are acceptable. If the authority determines that the entity in charge of the project is not competent to carry the project forward but that the project is still worth completing, it may oust the entity and complete the project through such other means and agents and under such financial conditions as it determines to be in the public interest.
Source. 1988, 240:5, eff. July 1, 1988.
Section 204-C:59
204-C:59 Capitalization of Fund. –
The affordable housing fund shall be capitalized with donations, transfers, set asides, or appropriations authorized by law, including, but not limited to:
I. Fees paid to the authority from the development of qualified residential rental projects financed by bonds issued under section 142(d) of the Internal Revenue Code of 1986, as amended, including projects in operation as of July 1, 1988, provided, however, that the authority may also allocate such fees as matching funds for federal housing programs such as the Home Investment Partnership Program as established by the National Affordable Housing Act of 1990.
II. Repayment of loans made by the fund.
III. Voluntary donations from private persons and entities.
Source. 1988, 240:5. 1992, 289:32, eff. June 17, 1992.
Section 204-C:60
204-C:60 Investments of Funds. –
Moneys deposited in the fund may be invested by the authority; provided, however, that sufficient funds are made available to grant applications for emergency assistance and the routine flow of regular applications. Income earned from such investment shall be returned to the affordable housing fund; provided, however, that the authority may use up to 8.4 percent of any such investment income to defray the costs of administering this subdivision.
Source. 1988, 240:5, eff. July 1, 1988.
Section 204-C:61
204-C:61 Role of Authority Concerning Funds. –
The fund shall supplement, not supplant, the responsibility of the authority to address the housing needs of persons of low and moderate income.
Source. 1988, 240:5, eff. July 1, 1988.
Section 204-C:62
204-C:62 Rulemaking. –
Pursuant to RSA 204-C:53, the authority shall adopt rules governing the affordable housing fund. Such rules shall include, but shall not be limited to:
I. Eligibility requirements for applicants.
II. Criteria for eligible projects, including, but not limited to, construction and quality standards.
III. Procedures for monitoring the implementation and management of projects.
IV. Reasonable fees to offset the cost of monitoring the operation of projects funded under this subdivision.
V. Requirements for long-term affordability of housing units in projects financed under this subdivision. Such requirements shall ensure that, at a minimum, at least 50 percent of the units in a project shall remain affordable to low and moderate income persons for the period of any loan or 20 years, whichever is longer.
VI. Requirements regarding rents and fees which may be charged for housing units funded under this subdivision.
VII. Restrictions on the ability of loan recipients to convert housing units constructed under this subdivision to uses other than those permitted by this subdivision and provisions for financial penalties and equity sharing if such conversion occurs.
VIII. [Repealed.]
IX. Any other matter necessary for the administration of this subdivision.
Source. 1988, 240:5. 1994, 386:11, eff. June 9, 1994; 386:12, eff. July 1, 1995; 386:13, eff. July 1, 1996.
Low and Moderate Income Housing Loan Program
Section 204-C:63
204-C:63 Purpose. –
The purpose of this subdivision is to assist low and moderate income persons and families to purchase, rehabilitate, and improve housing.
Source. 1988, 240:10, eff. July 1, 1988. 2014, 323:8, eff. Sept. 30, 2014.
Section 204-C:64
204-C:64 Program Established. –
There is hereby established a low and moderate income housing loan program to be administered by the New Hampshire housing finance authority which shall make low interest loans to low and moderate income persons for the purpose of assisting them to make down payments on single family homes, to pay closing costs and fees associated with the purchase of such homes, and to rehabilitate and improve their homes. For purposes of this section, "low and moderate income persons" shall mean individuals and families whose gross annual income is equal to or less than 100 percent of the median income of the geographic area in which they reside as determined by the authority.
Source. 1988, 240:10. 1989, 18:1. 1995, 22:1, eff. June 17, 1995. 2014, 323:8, eff. Sept. 30, 2014.
Section 204-C:65
204-C:65 Loans for Down Payments; Priority. –
I. Such funds as the general court may specifically appropriate from time to time to the authority may be loaned to eligible low and moderate income persons or families for the purpose of making down payments on single family homes, paying closing costs and fees associated with the purchase of such homes, and rehabilitating and improving their homes. The appropriations made for purposes of this section and loan repayments, including interest, together with any funds which the authority may allocate from time to time to this program shall constitute a continuing revolving loan fund. The state's and the authority's interest in such property shall be protected by a lien or in such other manner as is acceptable to the authority. The authority shall require the applicant to invest personal funds, to the extent available, to ensure the applicant's commitment to the property purchased.
II. The interest rate and terms of repayment for loans made under this subdivision shall be determined by rules adopted by the authority under RSA 204-C:68.
Source. 1988, 240:10. 1989, 18:2. 1995, 22:1, eff. June 17, 1995. 2014, 323:9, eff. Sept. 30, 2014.
Section 204-C:66
204-C:66 Sale of Property. –
The authority and the low or moderate income person shall enter into a contract providing that if the property is sold, or no longer owner occupied, the loan provided under this program shall be immediately due and payable.
Source. 1988, 240:10. 1990, 187:1. 1995, 22:1, eff. June 17, 1995.
Section 204-C:67
204-C:67 Public Benefit. –
The authority shall review each request for assistance under this subdivision to objectively determine whether such request is primarily for a public purpose and benefit in accordance with RSA 204-C:20.
Source. 1988, 240:10, eff. July 1, 1988.
Section 204-C:68
204-C:68 Rulemaking. –
Pursuant to RSA 204-C:53, the authority shall adopt rules relative to:
I. Criteria for eligibility for loans made under this subdivision.
II. Application procedures for such loans.
III. Interest rates and amount of loans.
IV. Procedures for repayment of loans made under this subdivision.
V. Any other matter necessary to the administration of this subdivision.
Source. 1988, 240:10. 1990, 187:2. 1995, 22:2, eff. June 17, 1995.
Section 204-C:69
204-C:69 Coordination with Other Programs. –
The authority shall establish procedures to ensure that the loan program established under this subdivision shall be coordinated with programs administered by the authority including but not limited to the other mortgage assistance programs administered by the authority.
Source. 1988, 240:10, eff. July 1, 1988.
Section 204-C:70
204-C:70 Investment of Funds. –
Moneys appropriated under this subdivision and revenues received from interest payments or loan repayments may be invested by the authority. Income earned from such investment and any interest payments received from loan recipients shall be returned to the program; provided, however, that the authority may use up to 10 percent of any such income earned to defray the costs of administering this subdivision.
Source. 1989, 18:3, eff. June 3, 1989.
Child Care Provider Guaranteed Loan Program
Section 204-C:71
204-C:71 Purpose. –
The purpose of this subdivision is to assist nonprofit, for-profit, and business child care providers to develop or expand licensed quality child care centers or programs by establishing a guaranteed loan program for such purpose.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:72
204-C:72 Definitions. –
In this subdivision:
I. "Authority" means the New Hampshire housing finance authority established under this chapter.
II. "Child day care agency" means any person, corporation, partnership, or other organization registered with the state as a nonprofit or for-profit child care organization, or any business organization which, as a service to its employees, regularly receives for child day care one or more children, unrelated to the operator or staff of the agency. The total number of hours in which a child may remain in child day care shall not exceed 13 hours per day, except in emergencies. The types of child day care agencies are defined as follows:
(a) "Family day care home" means an occupied residence in which child day care is provided for less than 24 hours per day, except in emergencies, for up to 6 children from one or more unrelated families. The 6 children shall include any foster children residing in the home and all children who are related to the caregiver, except children who are 10 years of age or older. In addition to the 6 children, up to 3 children attending a full day school program may also be cared for up to 5 hours per day on school days and all day during school holidays.
(b) "Family group day care home" means an occupied residence in which child day care is provided for less than 24 hours per day, except in emergencies, for 7 to 12 children from one or more unrelated families. The 12 children shall include all children related to the caregiver and any foster children residing in the home, except children who are 10 years of age or older. In addition to the 12 children, up to 5 children attending a full day school program may also be cared for up to 5 hours per day on school days and all day during school holidays.
(c) "Group child day care center" means a child day care agency in which child day care is provided for preschool children and up to 5 school-age children, whether or not the service is known as day nursery, nursery school, kindergarten, cooperative, child development center, day care center, center for the developmentally disabled, progressive school, Montessori school, or by any other name.
(d) "Day care nursery" means a child day care agency in which child day care is provided for any part of a day, for 5 or more children under the age of 3 years.
(e) "Preschool program" means a child day care agency providing care and a structured program for children 3 years of age and older who are not attending a full day school program. The total amount of hours a child may be enrolled in a preschool program shall not exceed 5 hours per day.
(f) "School-age program" means a child day care agency providing child day care for up to 5 hours per school day, before or after, or before and after, regular school hours, and all day during school holidays and vacations, and which is not licensed under RSA 485-A, for 6 or more children who are 4 years and 8 months of age or older. The number of children shall include all children present during the period of the program, including those children related to the caregiver.
Source. 1989, 411:3. 1990, 257:10, 11, eff. Jan. 1, 1991.
Section 204-C:73
204-C:73 Rulemaking. –
The authority shall adopt rules, pursuant to its own procedures, relative to:
I. The conduct of its business.
II. The selection and maintenance of eligible lenders.
III. The type of security it shall demand of eligible borrowers.
IV. A schedule of fees to be charged for the issuance of certificates of guarantee or other services.
V. The term of the loans guaranteed pursuant to this subdivision.
VI. Such other matters as are necessary to carry out the powers and duties of the authority under this subdivision.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:74
204-C:74 Administration; Eligibility; Demonstration. –
I. The authority shall make a good faith effort to approve applications from both nonprofit and for-profit child care organizations and business organizations which currently provide or are planning to provide child care services for their employees, consistent with the minimum criteria established in this section. When entering into contracts for guaranteed loans pursuant to this subdivision, the authority shall require that applicants demonstrate that they, at a minimum, meet the requirements of paragraphs II and III.
II. Each applicant shall:
(a) Agree to apply for or hold a child care provider license pursuant to RSA 170-E.
(b) Register with the state as a private, nonprofit or for-profit child care organization or be a registered business organization which provides or plans to provide child care services to its employees.
(c) Address both a geographic and community need for projected service or agree to provide service to infants and toddlers.
(d) Agree to provide service to children who are eligible for Title XX assistance under Public Assistance Manual ITEM 390, sections 3980-3983.
(e) Be fiscally sound as shown in a financial statement.
(f) Agree to comply, if an applicant establishing a center or program, or comply with, if an existing child care provider, state and local public health, fire and life safety codes and zoning requirements.
III. Each applicant shall either:
(a) Seek a loan guarantee in order to renovate a facility or facilities to comply with life safety, fire, health, or other public codes, whether state or local, and shall demonstrate expected costs of such compliance; or
(b) Seek a loan guarantee in order to make capital expenditures necessary to meet licensing requirements related to planned establishment or expansion and shall demonstrate expected costs of such compliance.
IV. Loan guarantee recipients shall demonstrate to the authority the disposition of any moneys provided under the child care provider guaranteed loan program.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:75
204-C:75 Guarantee. –
Upon application from a lender in such form as the authority may require, the authority may issue, or commit itself to issue, payable solely from the funds provided pursuant to 204-C:79, to the lender or its assigns, a certificate of guarantee equal to 50 percent of the outstanding principal due on the loan made to eligible child care agencies or organizations as defined in RSA 204-C:72. In no event shall any loan principal guaranteed under this section exceed the amount of $10,000 per recipient.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:76
204-C:76 Guarantee Certificate Conclusive. –
The certificate of guarantee issued by the authority, in the hands of the original lender to whom the certificate was issued, shall be conclusive evidence of its validity for the purposes of this subdivision, except for fraud.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:77
204-C:77 Subrogation and Order of Payment. –
Whenever the authority pays to a lender any sum in discharge of the state's liability as guarantor under this section, the authority shall be to that extent subrogated to the lender's right, title and interest in any security pledged to the loan. Amounts received by the authority to discharge the state's guarantee shall be returned to the treasury less any costs incurred in collection.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:78
204-C:78 Guarantee Fee. –
The authority shall collect from the lender a guarantee fee. Notwithstanding any provision of law to the contrary, such fee may be assessed by the lender against the borrower as a permitted loan charge. The authority shall segregate such fees into a special account subject to withdrawal in order to discharge any of the authority's personnel and administrative expenses.
Source. 1989, 411:3, eff. July 1, 1989.
Section 204-C:79
204-C:79 Guarantee; Credit of State Pledged. –
The full faith and credit of the state is pledged to support and redeem the certificates of guarantee issued by the authority. In furtherance of that pledge, the state treasurer shall advance to the authority from available cash in the treasury or from proceeds of bonds or notes of the state issued pursuant to this subdivision, such amounts as may be requested from time to time by the authority to enable it to perform all guarantee obligations punctually and in accordance with their terms. The authority shall request such advances from time to time as additional amounts are required for such purpose. The treasurer shall, subject to the approval of the governor and council, issue full faith and credit bonds of the state from time to time in amounts equal to advances made under this subdivision, and borrow in anticipation of the proceeds of such bonds. The obligation of the state under the provision of this section shall at no time exceed the amount of $300,000.
Source. 1989, 411:3, eff. July 1, 1989.
Homeless Prevention Fund
Section 204-C:80
204-C:80 Purpose. –
The purpose of this subdivision is to establish a homeless prevention program and a fund therefor to be used to provide housing assistance on behalf of very low income persons and families in order to help them meet their housing costs, thereby preventing homelessness resulting from their inability to meet such costs, and to maximize the opportunity for homeless families and individuals to obtain housing in the private market. This subdivision is also intended to assist persons and families who are receiving public assistance or have recently graduated from public assistance to low wage jobs and persons with disabilities to enable them to afford decent, safe housing.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:81
204-C:81 Definitions. –
In this subdivision:
I. "Fund" means the homeless prevention fund.
II. "Housing assistance payments" means rent subsidies, security deposit advances, mortgage assistance payments, and any other shelter cost-related payments made on behalf of very low income households.
III. "Minor child" means a person under 18 years of age.
IV. "Severely rent burdened" means a household for which the monthly rent and utility costs exceed 50 percent of the gross monthly income.
V. "Very low income households" means individuals or families whose gross income is 50 percent or less of the median income, adjusted for household size, as published periodically by the United States Department of Housing and Urban Development.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:82
204-C:82 Fund Established. –
I. There is hereby established within the authority a homeless prevention fund. The fund shall be comprised of donations from private persons or entities, grants, set-asides, and other appropriations authorized by law. All sums from government appropriations or grants shall be credited to the fund, but such sums shall not be deemed to be money received on account of the state, and nothing in this subdivision shall be understood as pledging the faith and credit of the state.
II. The authority shall use moneys deposited in the fund for the following purposes:
(a) Direct housing assistance payments to eligible very low income persons or households.
(b) The provision and coordination of services, such as jobs, training, financial counseling, and other supportive services, which are made available to very low income households participating in the homeless prevention program.
(c) The creation of new or rehabilitated dwelling units to be made available to very low income households assisted under this subdivision.
(d) Matching grants to units of local government or local housing authorities established under RSA 203 to support homeless prevention programs for very low income households.
(e) The purchase of existing single family homes by or on behalf of low income households or to prevent the household occupants from becoming homeless.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:83
204-C:83 Program Design. –
The homeless prevention fund shall be administered so as to promote the following goals and objectives:
I. Applications for the benefits provided under this subdivision shall be streamlined so as to enable the authority to provide assistance to the eligible households as quickly as practicable.
II. The program shall be as flexible as possible in order to maximize housing opportunities for very low income people.
III. Give priority to very low income persons or families who are:
(a) At households which include an employed person or a person in an employment training program.
(b) Households which include a minor child or children, and the household is homeless or at risk of homelessness due to severe rent burden.
(c) Households which are actually experiencing homelessness, and are currently residing in homeless or emergency shelters or receiving services as defined in rules adopted pursuant to RSA 204-C:85.
(d) Households which consist of one or more disabled person(s) as defined in 42 United States Code, Section 12102.
IV. Assistance shall only be provided to eligible households for dwelling units located in New Hampshire.
V. Assistance granted to a household under this subdivision shall terminate after 36 consecutive months, provided however that the authority shall extend the assistance beyond this time limit when it is necessary to:
(a) Enable a household member to complete an education, training, or vocational rehabilitation program in which he or she is currently involved when the 36-month time limit expires.
(b) Provide reasonable accommodation for the disability of a household member.
(c) Prevent an employed household member from facing a serious risk of job loss due to inability to obtain affordable housing within a reasonable distance from his or her job.
VI. All households which receive assistance under this subdivision shall, within 60 days of obtaining such assistance, make an application to their local public housing authority or the authority for federal rental assistance.
VII. No public housing authority created pursuant to RSA 203 shall reject an applicant for federal rental assistance or deny such applicant a priority on its waiting list for which such applicant would otherwise qualify, on the basis that such applicant is receiving rental assistance under this subdivision.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:84
204-C:84 Investment of Funds. –
Moneys deposited into the fund may be invested by the authority. Income earned from such investments shall be returned to the fund, provided, however, that the authority may use up to 10 percent of any such investment income to defray the cost of administering this subdivision.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:85
204-C:85 Rulemaking. –
The authority shall adopt rules, pursuant to RSA 204-C:53, governing the homeless prevention fund. Such rules shall include:
I. The nature and extent of the rent subsidy authorized under this subdivision.
II. Qualifications of households eligible to receive direct housing assistance payments.
III. The nature and extent of ancillary payments on behalf of eligible households to prevent homelessness.
IV. The types of supportive services which may be eligible for payment from the fund.
V. The application process for benefits under this subdivision.
VI. The method of distribution of program funds.
VII. Any other matters necessary for the administration of this subdivision.
Source. 1992, 12:1. 2000, 251:2, eff. Jan. 1, 2001.
Section 204-C:86
204-C:86 Coordination with Other Programs. –
The authority shall ensure that the homeless prevention program supported through the fund is coordinated with other housing assistance programs administered by the authority, the federal government, state agencies, local public authorities, and local governments.
Source. 2000, 251:4, eff. Jan. 1, 2001.
Miscellaneous Provisions
Section 204-C:87
204-C:87 Assistance to Applicants. –
When an individual applies for rental assistance, the authority shall provide the individual with application forms and information about the Link-Up New Hampshire and Lifeline Telephone Assistance programs, shall offer to assist the individual to apply for these programs, and shall provide such assistance.
Source. 2007, 263:172, eff. July 1, 2007.
Lead Paint Hazard Remediation Fund
Section 204-C:88
204-C:88 Definitions. –
In this subdivision:
I. "Multi-unit" means more than one dwelling unit.
II. "Property" means a rental or owner-occupied residential property, or a child care facility licensed under RSA 170-E.
III. "Unit" means a single dwelling unit within a structure that contains more than one dwelling unit. "Unit" may also include any dwelling unit within a structure that is otherwise used for non-residential purposes.
Source. 2019, 346:376, eff. July 1, 2019.
Section 204-C:89
204-C:89 Lead Paint Hazard Remediation Fund Established. –
I. There is hereby established within the authority a fund to be used for the purposes of remediating lead paint hazards in housing, to be known as the lead paint hazard remediation fund. The lead paint hazard remediation fund shall be composed of appropriations, gifts, grants, donations, bequests, or other moneys from any public or private source, but such revenues shall not be deemed to be money received from the state, and nothing in this subdivision shall be construed as pledging the faith and credit of the state.
II. The authority may use the lead paint hazard remediation fund to make loans to owners of properties for the costs of remediation of lead paint hazards. The authority may also make loans to owners of licensed child care facilities for remediation of lead in water. Loans may be made provided that such remediation is conducted in accordance with lead-safe practices under applicable laws and regulations.
III. The authority may use up to 5 percent of any funds deposited in the lead paint hazard remediation fund for program administration.
Source. 2019, 346:376, eff. July 1, 2019.
Section 204-C:90
204-C:90 Eligibility. –
For a property to be eligible to use the funding under this subdivision, the property shall be:
I. An owner-occupied single family home occupied by a household with a child under 6 years or a pregnant woman and where household income is no more than 100 percent of the median income adjusted for household size for the metropolitan area or county in which the housing is located as published annually by the United States Department of Housing and Urban Development;
II. A unit in a multi-unit residential property or a renter-occupied single family home where household income is no more than 90 percent of the median income adjusted for household size for the metropolitan area or county in which the housing is located as published annually by the United States Department of Housing and Urban Development; or
III. A child care facility licensed under RSA 170-E.
Source. 2019, 346:376, eff. July 1, 2019.
Section 204-C:91
204-C:91 Use of Federal Funds. –
The lead paint hazard remediation fund shall only be used to supplement, but not supplant, existing federal resources. If a property or unit is eligible for federal funding from a program in operation by the authority, or by any state agency or political subdivision, the owner of the property shall first apply to that program before applying to the lead paint hazard remediation fund.
Source. 2019, 346:376, eff. July 1, 2019.
Section 204-C:92
204-C:92 Rulemaking. –
Pursuant to RSA 204-C:53, the authority shall adopt rules governing the distribution the lead paint hazard remediation fund.
Source. 2019, 346:376, eff. July 1, 2019.