1. (1) Application procedures.

   1. (a) UHC shall provide applicants with the condominium construction loan program guidelines (Guidelines).
   2. (b) The Guidelines shall state the program policies, application procedures, scoring terms, any applicable fees, and any other information UHC deems necessary for the program. The Guidelines may be amended by UHC as needed.
   3. (c) The Guidelines and application form shall be available electronically via UHC's website.
   4. (d) UHC may establish and collect fees payable by applicants to cover the administrative and legal expenses of the program in accordance with the Guidelines.
   5. (e) UHC shall score and rank all applications according to the Guidelines.

2. (2) Loan commitment agreement.

   1. (a) Applicants whose application receive final approval will receive a commitment letter from UHC.
   2. (b) The loan commitment may unilaterally be canceled by UHC as detailed in the Guidelines.
   3. (c) No loan commitment may be transferred by an applicant unless they receive prior written approval by UHC.
   4. (d) UHC is subject to the Government Records Access and Management Act and may disclose the application materials, or any other related documents, to the state or other requestors as required.

3. (3) Loan closing.

   1. (a) Following the issuance of a commitment letter, applicant and UHC shall collaborate to effectuate a closing of the loan in a timely manner in accordance with the Guidelines. Applicant may engage in negotiations with UHC and its legal counsel for changes to the loan documents but is responsible for all legal costs incurred from any negotiation or requested document change.
   2. (b) UHC shall require security for a program loan in a form and amount as UHC determines is reasonably necessary to secure repayment as outlined in the Guidelines.
   3. (c) A land use restriction agreement shall be recorded superior to all other liens in connection with a loan under this program.
   4. (d) The land use restriction agreement shall require every unit in the project to remain owner-occupied for at least 5 years from the date of each unit's first sale.

4. (4) Construction administration.

   1. (a) UHC shall administer the construction draw process in accordance with the Guidelines.
   2. (b) Any significant changes that may impact the value, scope, costs, or schedule of an approved project that results in a change order must be approved in advance by UHC.
   3. (c) UHC will use independent inspectors to confirm work has been completed satisfactorily before any payments.
   4. (d) Draw requests may be made for deposits in ordering materials and equipment for the project.

KEY: housing finance condominium construction affordable

Date of Last Change: May 20, 2026

Notice of Continuation: September 14, 2022

Authorizing, and Implemented or Interpreted Law: 63H-8-301; 63H-8-302; 63H-8-303