Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development, in conjunction with the activities of the Affordable Housing Opportunity Fund, Neighborhood Stabilization Fund or other U.S. Department of Housing and Urban Development (HUD) funds, to partially release its recorded mortgage interests on multi-family and single family residential properties by executing Partial Release of Mortgages on specific individual units, provided the release is in compliance with HUD regulations and provided the funds from the sale of the individual units are fully allocated to paying their proportional share of the recorded mortgage on the entire multi-or single-family residential property.
This legislation further authorizes the Director of the Department of Development to execute Release of Restrictive Covenants, provided the release is otherwise in compliance with HUD regulations, when the mortgages made through the Affordable Housing Opportunity Fund, Neighborhood Stabilization Funds or other U.S. Department of Housing and Urban Development (HUD) funds are fully satisfied or when the proceeds from the sale of an individual unit has been fully allocated to paying its proportional share of the recorded mortgage on the entire multi- or single-family residential property.
Emergency action is requested to expedite authorization so that pending releases may be completed.
FISCAL IMPACT: No funding is required for this legislation. This legislation will not affect the current funding of these programs.
Title
To authorize the Director of the Department of Development, in compliance with HUD regulations, to release recorded mortgage interests resulting from loans granted in conjunction with the Affordable Housing Opportunity Fund, Neighborhood Stabilization Fund or other HUD funds, on individual units of multi- or single-family residential properties by executing a Partial Release of Mortgage; to authorize the Dire...
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