704.12

Grant Funding

Requirements

You must determine whether any Grant Funding Grant FundingFunding for the Property’s construction or renovation given to the Borrower, or to a Borrower Affiliate that in turn loans or grants the funds to the Borrower, with no repayment obligation if specified requirements are met. is received:

  • directly by the Borrower BorrowerPerson who is the obligor per the Note. ; or
  • by any Borrower BorrowerPerson who is the obligor per the Note. Affiliate AffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key… and used to fund any:
    • Third-Party Financing Third-Party FinancingAny loan to, or indebtedness of, a Borrower that: is not a Supplemental Mortgage Loan or Pre-Existing Mortgage Loan; and either: requires repayment by the Borrower; or is forgiven (over time or at maturity) subject to Borrower compliance with certain covenants or conditions. … ; or
    • Grant Funding Grant FundingFunding for the Property’s construction or renovation given to the Borrower, or to a Borrower Affiliate that in turn loans or grants the funds to the Borrower, with no repayment obligation if specified requirements are met. from the Borrower BorrowerPerson who is the obligor per the Note. Affiliate AffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key… to the Borrower BorrowerPerson who is the obligor per the Note. .

If any Grant Funding Grant FundingFunding for the Property’s construction or renovation given to the Borrower, or to a Borrower Affiliate that in turn loans or grants the funds to the Borrower, with no repayment obligation if specified requirements are met. above is subject to clawback, recapture, or other contingent repayment (e.g., upon an event of non-compliance or default), you must:

  • ensure any collateral for the contingent repayment complies with  Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 704.03: Collateral and Credit Support ; and
  • with the Borrower BorrowerPerson who is the obligor per the Note. , the Borrower BorrowerPerson who is the obligor per the Note. Affiliate AffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key… (if applicable), and the grantor, enter into and record the applicable:
    • Subordination Agreement (Affordable) ( Form 6456 ), if the grantor is a Public Entity Public EntityA federal, state, or local government entity, or an entity that: is created by state statute, or one or more governmental entities acting pursuant to applicable statutory authority; has a governing body that is elected by voters in the applicable jurisdiction, or … ; or
    • Subordination Agreement (Conventional) ( Form 6414 ), if the grantor is not a Public Entity Public EntityA federal, state, or local government entity, or an entity that: is created by state statute, or one or more governmental entities acting pursuant to applicable statutory authority; has a governing body that is elected by voters in the applicable jurisdiction, or … .

If any Borrower BorrowerPerson who is the obligor per the Note. Affiliate AffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key… receives Grant Funding Grant FundingFunding for the Property’s construction or renovation given to the Borrower, or to a Borrower Affiliate that in turn loans or grants the funds to the Borrower, with no repayment obligation if specified requirements are met. and, in turn, loans those funds to the Borrower BorrowerPerson who is the obligor per the Note. :