Sec.8-412-7. Contract for financial assistance

(a) The State, acting by and through the Commissioner, may enter into a contract(s) with a developer for financial assistance in the form of a grant or loan.

(b) Such contract(s) shall include but not be limited to the amount and form of financial assistance to be provided and the rights and obligations of the parties under the contract(s).

(c) The terms and conditions of the loan shall be as follows:

(1) repayment of the loan shall be made as soon as practicable and as specified by the loan agreement, but no later than upon receipt of permanent financing by the developer;

(2) the loan shall be interest free; and

(3) the Commissioner may forgive a loan in any case where the borrower has made a good faith effort to obtain permanent financing and has been refused such financing or where the forgiveness is in the best interest of the State.

(d) In addition to whatever remedies exist in the contract, the developer shall, upon demand by the Commissioner, pay back to the State the full amount of any financial assistance provided under this program, if the Commissioner determines that:

(1) reasonable progress in the development of the activity, as submitted pursuant to Section 8-412-4, above, has not been made; or

(2) the construction, rehabilitation, or renovation supported by the State predevelopment grant or loan has resulted in a use other than for housing to benefit families of low and moderate income; or

(3) the developer has amended its purpose or the activity so that it no longer conforms with that originally submitted and approved.

(Effective March 2, 1989)