Sec.8-218c-7. Interest subsidies

(a) Applications

The CHDC may use the funds provided pursuant to Sections 8-218a and 8-218b to administer an interest subsidy program. Pursuant to an interest subsidy the CHDC may provide up to 50% of the total financing needed to construct or rehabilitate an eligible project at whatever interest rate is necessary to make the project financially feasible. As part of a preliminary application for funding under this section, the Commissioner may require that the CHDC provide documentation, in addition to that required by Section 8-218c-2, which demonstrates that one or more lenders have agreed in writing to participate in the program, defines the terms and conditions of the lender's participation, and demonstrates that each participating lender will not charge borrowers an interest rate higher than that charged by it for similar non-subsidized loans.

(b) Procedures

The repayment of any loans provided pursuant to this Section shall be in the same manner as that provided for in Section 8-218c-6 (d).

(Effective May 23, 1986)