10915 16TH AVE SE 2016-01-01 MF Import

� 4571 .1 REV-� '� �._— , CHAPTER 2 ' CIiAPTER 2. ELIGIBILITY I� 2-1. PRIVAfE NONPROFIT BORROWERS. a. Section 885.5 of the Requlatio��s contains definitions applicable to this program. A Borrower is defined as "a private nonprofit corporation or a nonprofit consumer cooperative which must be incorporated at the time it submlts its application for a Section Z02 Fund Reservatien. The purposes of the Borrower must include the promotion of the welfare of elderly or handicapped tamilies. The definition also. provides that a dorrawer "ma�,y not be a public body or the instrumentality of_any public. body." For �purposes only of determining minority participation in tfie program, a minority Borrower is defined as a Borror�er with more tlian half its board composed of minority group members. b. Only a Borrower as defined in Section 885.5 of tfie Regulations is �e�li �ible to submit an application for a Section 0 und reserva- on a� nd to receive a Section 2U2 direct loan. As the legal app11- cant, t e Borrower, se ecte , wou receive the fund r•eservation and the loan and would be responsible for the ronstruction, reliabil- �r,ation, ownership, and operation ot the pr•oject. 2-2. THE SPONSUR. Among the groups which typically qualify as Section 2U2 sponsors are religious organizations, minority organi- zations, fraternal orders, labor unions, teachers' associations, and similar orgranizations, senior citizens' groups, associations representing the physic�lly handicapped, and consumer cooperatives. In contrast to the Borrower the Sponsor is expected to have a history of interest and successtul activity in housing generally, or housing for the elderly or the handicapped (chronic mental illness, physically handicapped, or developmentally disabled); or to have been involved tn one or more other social or community activities or services which provide the background and skills which may be transferable to housing tor the elderly or the handicapped. A 5ponsor w11i De evaluated primarily on the strength of its activities as an organization and not on the individual records of those who constitute the officers or members of tiie board of directors or general membersiilp. For purposes ot determining minority participation in the proyram, a minority Sponsor is defined as a 5ponsor with more than halr its board composed ot minority group members. � .. Page 2-1 3/83