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Sample Peer Policy for Ramsey Review <br />has units that meet the requirements of the GROW Fund, they will not exclude from <br />consideration -qualified families receiving assistance through the Section 8 Fund. <br />Section X —Structure of GROW Fund Awards: Loan Limits & Terms (Housing Proposals) <br />A GROW Fund award to developer may be structured as either a: <br />1. Term Loan - Repayable given flexible terms and low interest rate <br />2. Deferred Loan - Repayable at a future date or on sale of property <br />3. Loan Guarantee - GROW funds may be escrowed in a third party account as a credit <br />enhancement for a private or public lender. <br />4. Forgivable Loan - Loan that is not repaid unless conditions of the agreement are not <br />met. <br />The first three options will be the most common with the forgivable loan considered under <br />exceptional circumstances or special needs projects. <br />1. Limits: The maximum available to projects serving the eligible population may not <br />exceed $10,000 per unit or a maximum of $250,000 per project. <br />In the case of multifamily projects, Authority staff will underwrite projects according to <br />criteria in Section XI of this Policy to ensure GROW funds are needed to make the <br />project financially feasible. <br />2. Terms: Funding awarded from the GROW Fund will be in the form of a term loan, <br />deferred loan or forgivable loan. Terms of the loan will be based on the length of <br />affordability and the ability of the developer to repay. <br />Repayment of a GROW FUND loan will be required on the date or dates on which any of <br />the following occur: <br />1.) Any transfer or sale of the development (assignment may be considered); <br />2.) The date of any refinancing of any aspect of a project including bonds, loans, <br />deferred loans or any other source of permanent financing; <br />3.) Upon occurrence of an event of default; or <br />4.) Upon prepayment of the loan as a result of foreclosure or the granting of a deed <br />in lieu of foreclosure. <br />The owner shall pay to the Authority, as repayment in full of the GROW Fund loan <br />and/or the aggregate amount of all advances made by the Authority or the GROW Fund <br />loan amount. <br />Additional Terms: Where possible or feasible loans will be structured for partial <br />repayment based on sharing of after tax cash flow. For downpayment assistance the <br />Authority may choose to recoup some of the appreciation (e.g. "Shared Appreciation <br />Model") of single family homes to recapitalize the Fund. <br />7 <br />