04 NCAC 19L .1803          ELIGIBILITY REQUIREMENTS

(a)  Applications for Development Loan Funds must show that:

(1)           All activities are eligible under state and federal regulations; and

(2)           Development Loan Funds proposed for each activity meet a national objective as specified by HUD regulations incorporated by prior reference; and

(3)           The applicant has the capacity to administer a Development Loan Fund project.

(b)  The Division must make the following findings prior to an award:

(1)           A loan loss reserve is in place equal to 10% of the amount of the outstanding balance.

(2)           The approved loan may not take the total amount of outstanding obligations under the Development Loan Fund to more than twice the amount of the annual CDBG allocation.

 

History Note:        Authority G.S. 143B-431; 24 C.F.R. 570 Subpart M;

Eff. August 1, 1998.