Minnesota Administrative Rules

4900.1929 ELIGIBLE USES OF LOAN FUNDS.

All expenses must be reimbursable under the sources of financing proposed for the project. The following are eligible uses of loan funds:

A.

architectural, engineering, or related professional services required in the preparation of construction or rehabilitation plans, drawings, or write-ups;

B.

costs of processing and closing the financing for a project such as lender origination fees, credit reports, fees for title insurance, fees for recording and filing legal documents, attorney's fees, and appraisal fees;

C.

costs of contracting with a consultant and in-house staff costs related to the planning, processing, or preparation of a project proposal. Costs must be documentable, directly related to a specific project, and tied to a recoverable source of funds at closing;

D.

studies and analyses of housing needs related to a particular housing project, including market feasibility studies;

E.

earnest money or option deposits on land and buildings;

F.

other activities necessary to finance, design, or plan a specific housing project for low- and moderate-income residents prior to the construction or rehabilitation of the project;

G.

development costs including acquiring land or buildings; and

H.

other activities permitted by statute.

Statutory Authority:

MS s 462A.06

History:

15 SR 12; 29 SR 1479

Published Electronically:

June 11, 2008