Rhode Island Code of Regulations Title 825 - Housing and Mortgage Finance Corporation
Here’s a comprehensive overview of Rhode Island Code of Regulations Title 825 – Housing and Mortgage Finance Corporation (RIHMFC), which governs the state's housing finance programs:(rules.sos.ri.gov)
🏛️ Overview of Title 825
Title: Housing and Mortgage Finance Corporation
Chapters:
Chapter 10: Rules Relative to Agency Administration
Chapter 20: Rules Relative to Single-Family Loan Programs
Chapter 30: Rules Relative to Multifamily Loan Programs
Chapter 40: Rules Relative to Other Programs (rules.sos.ri.gov, rules.sos.ri.gov, rules.sos.ri.gov)
These regulations are designed to facilitate affordable homeownership, stimulate housing production, and support the preservation and rehabilitation of housing in Rhode Island.(rules.sos.ri.gov)
🏠 Chapter 20 – Single-Family Loan Programs
Part 1: Mortgage Finance Programs (825-RICR-20-00-1)
This part outlines the procedures for mortgage lenders to participate in RIHMFC's programs, including:
Application Process: Mortgage lenders must submit an application to participate, demonstrating their capability to originate loans responsibly.
Qualifications: Lenders must be approved by FNMA or FHLMC or have the necessary experience and capability as determined by the Corporation.
Mortgage Purchase Agreement: Accepted lenders enter into an agreement detailing the terms of loan purchases, including penalty provisions for non-compliance and repurchase requirements for non-qualifying loans.
Commitments to Borrowers: Lenders cannot commit to borrowers before the Corporation confirms registration and commitment to purchase the loan.
Mortgage Lender's Reserve Account: Lenders retaining servicing rights must establish a non-interest-bearing escrow account to cover potential deficiencies in case of loan defaults.
Fees: Lenders may collect an origination fee upon closing, as specified in the Mortgage Purchase Agreement.(rules.sos.ri.gov)
Part 2: Mortgage Credit Certificate Program (825-RICR-20-00-2)
This program allows qualified borrowers to receive a credit against their federal income tax for a percentage of the mortgage interest paid. Key aspects include:(rules.sos.ri.gov)
Eligibility: Borrowers must meet income and acquisition cost limits, and the property must be their principal residence.
Targeted Areas: Certain areas may have different eligibility criteria, as designated by the Corporation.
Lender Participation: Lenders must apply to participate and enter into an MCC Participation Agreement detailing procedures and obligations.(rules.sos.ri.gov)
🏢 Chapter 30 – Multifamily Loan Programs
Part 1: Rental Housing Production and Rehabilitation Program (825-RICR-30-00-1)
This program supports the development and rehabilitation of rental housing, focusing on affordability and quality.
Part 2: Preservation of Existing Section 8-Assisted Housing Developments (825-RICR-30-00-2)
Aims to maintain the affordability of existing Section 8 housing developments through various preservation strategies.(rules.sos.ri.gov)
Part 3: Proposed Prepayments or Transfers (825-RICR-30-00-3)
Regulates the prepayment of mortgages and transfers of ownership in multifamily housing projects to ensure continued affordability and compliance with program requirements.
Part 4: Allocation of Low-Income Housing Tax Credits (825-RICR-30-00-4)
Details the process for allocating federal Low-Income Housing Tax Credits to developers, including:(rules.sos.ri.gov)
Application Process: Developers must submit applications during designated reservation periods.
Evaluation Criteria: Applications are evaluated based on criteria set forth in the Qualified Allocation Plan.
Non-Profit Set-Aside: A portion of credits is reserved exclusively for non-profit developers.
Reservation and Allocation: The Corporation reserves credits during the application process and allocates them upon project completion.(rules.sos.ri.gov)
📋 Chapter 40 – Other Programs
Part 1: Resident Selection Plan (825-RICR-40-00-1)
Establishes uniform application, waiting list, and tenant selection policies for Section 8 projects financed by RIHMFC, ensuring fair and consistent practices in tenant admissions.(rules.sos.ri.gov)
For detailed information or specific inquiries, you can visit the official Rhode Island Code of Regulations website: rules.sos.ri.gov.
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