1. (a) The Corporation may make, participate in the making, or purchase mortgage loans to finance the acquisition of nonconforming owner-occupied residences. Each loan must be secured by a single-family residence, duplex, triplex, or four-plex.
2. (b) The mortgage loan interest rate shall be at a rate determined by the corporation and published by the corporation from time to time.

3. (c) As used in this section, "nonconforming housing" means

   1. (1) housing that exhibits one or more characteristics, with respect to design, construction practices, materials, foundation systems, utilities, minimum space requirements, dwelling located on land to which a borrower has agricultural rights, which are not common in the community in which the property is located and would ordinarily preclude financing by private financial institutions; or

   2. (2) housing that

      1. (A) was constructed after June 30, 1992 for which there is no evidence that it was constructed in compliance with the construction standards set out in AS 18.56.300; and,
      2. (B) was constructed after December 31, 1991 that is two years or older with an energy rating of two stars or greater, subject to an acceptable home inspection.
4. (d) The provisions of 15 AAC 151.015 relating to borrower eligibility, except for the first sentence of 15 AAC 151.015(a), apply to mortgage loans under this section.
5. (e) The provisions of 15 AAC 151.020 relating to loan terms apply to mortgage loans under this section.
6. (f) The provisions of 15 AAC 151.910 relating to assumptions of mortgage loans apply to mortgage loans under this section.
7. (g) The provisions of 15 AAC 155.030(a)(5) relating to energy standards apply to mortgage loans under this section.

(Eff. 5/7/93, Register 130; am 9/28/2011, Register 204; am 5/31/2017, Register 223)

Authority: AS 18.56.088, AS 18.56.106, AS 46.11.040, AS 46.11.900