A regulatory agreement carrying the Agency's covenants must be executed at closing and binds for the duration of the guaranteed loan

rd538.financial.regulatory_agreement_covenants_bind_for_the_life_of_the_guaranteed_loan · v1.0.0

As a condition of the guarantee the lender must obtain the borrower's certification that the project complies with local, state and federal laws and programme requirements, and a regulatory agreement between the borrower and lender must be executed at the time of loan closing. That agreement must be binding on the borrower and its successors and assigns, and on the lender and its successors and assigns, for the duration of the guaranteed loan, and must covenant among other things that the borrower maintains the project as affordable housing for the duration defined in the statute, maintains it in good physical and financial condition at all times, keeps complete project books and records, provides the Agency and the lender an annual audited financial statement, prepares and complies with the Affirmative Fair Housing Marketing Plan, operates as a single asset ownership entity unless the Agency approves otherwise, and complies with an approved management plan.

Confidence

high

Effective from

1998-07-22

Last reviewed

2026-08-31