Incentives offers.

CFR · 2024-01-01 · US · Title 7

(a) The Agency may offer a borrower, who submits a prepayment request meeting the conditions of § 3560.653(d), incentives to agree to the restrictive-use period in § 3560.662 if the following conditions are met: (1) The market value of the housing project is determined by the Agency, based on an appraisal conducted in accordance with subpart P of this part. (2) There are no restrictive-use agreements or prepayment prohibitions in effect. (b) Specific incentives offered will be based on the Agency's assessment of: (1) The value of the housing project as determined by the Agency based on an “as-is” market value appraisal conducted in accordance with subpart P of this part; (2) An incentive amount that will provide a fair return to the borrower; (3) An incentive amount that will not cause basic rents at the housing project to exceed conventional rents for comparable units; except that when determined necessary by the Agency to allow for decent, safe and sanitary housing to be provided in market areas where conventional rents are not sufficient to cover necessary operating, maintenance, and reserve costs. Basic rents may be allowed to exceed comparable rents for conventional units, but in no case by more than 150% of the comparable rent for conventional unit rent level; and (4) An incentive amount that will be the least costly alternative for the Federal Government while being consistent with the Agency's commitment to the preservation of housing for very-low, low, and moderate i

official document · source cfr-2024 · id 7:§ 3560.656