1. (a) The Corporation will, in its discretion, originate or purchase loans related to real property in Alaska under 15 AAC 152.010 - 15 AAC 152.100 for housing located in small communities. Loans may be applied to:

   1. (1) the purchase of housing;
   2. (2) the purchase of building materials for renovations or improvements of existing housing;
   3. (3) the renovation or improvement, including the cost of labor and services, of existing housing;
   4. (4) new construction of housing; and
   5. (5) the refinancing of housing.

2. (b) The Corporation may originate and purchase a building materials loan under 15 AAC 152.010 - 15 AAC 152.100 for housing in small communities, if

   1. (1) the loan amount does not exceed $100,000;
   2. (2) the collateral for the loan is acceptable to the Corporation; and
   3. (3) the proceeds of the loan are used to improve the structural integrity, energy efficiency, safety to the residents, or basic livability of the housing.
3. (c) No loan under this section may be applied to pay for any compensation for the labor and services of the borrower.

(Eff. 5/7/93, Register 130; am 8/3/94, Register 132; am 9/28/95, Register 136; am 4/2/97, Register 142; am 9/25/2002, Register 164; am 8/13/2004, Register 178; am 5/25/2011, Register 204)

Authority: AS 18.56.088, AS 18.56.400, AS 18.56.420, AS 18.56.580