The association shall have the power to supervise housing sponsors, including limited profit housing sponsors, and their real and personal property in the following respects:
(a)The reorganization of any housing sponsor shall be subject to the supervision and control of the association, and no such reorganization shall be had without the consent of the association.
(b)In the event of violation by a housing sponsor of any provisions of a loan, the terms of any agreement between the association and the housing sponsor, the provisions of this act, or of any rules duly promulgated pursuant to this act, the association may remove any or all of the existing directors or officers of such housing sponsor and may appoint such person or persons whom the association in its sole discretion deems adv
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The association shall have the power to supervise housing sponsors, including limited profit housing sponsors, and their real and personal property in the following respects:
(a) The reorganization of any housing sponsor shall be subject to the supervision and control of the association, and no such reorganization shall be had without the consent of the association.
(b) In the event of violation by a housing sponsor of any provisions of a loan, the terms of any agreement between the association and the housing sponsor, the provisions of this act, or of any rules duly promulgated pursuant to this act, the association may remove any or all of the existing directors or officers of such housing sponsor and may appoint such person or persons whom the association in its sole discretion deems advisable as new directors or officers to serve in the places of those removed, notwithstanding the provisions of any other law; provided, however, that any such directors or officers so appointed by the association shall serve only for a period coexistent with the duration of such violation or until the association is assured in a manner satisfactory to it against violations of a similar nature. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate or articles of incorporation, or bylaws, or by other instruments or laws governing such housing sponsor.
(c) The association shall require the housing sponsor receiving a loan or its contractor to post labor and materials, construction performance, surety bonds or make other assurances of completion in amounts related to the housing project cost as established by the association’s rules, and to execute such other assurances and guarantees as the association may deem necessary.
(d) The association shall:
(1) prescribe uniform systems of accounts and records for housing sponsors,
(2) require such housing sponsors to make reports,
(3) make certifications as to expenditures made by such housing sponsors, and
(4) examine all books and records with reference to capital structure, income, expenditures and other payments of a housing sponsor.
(e) The association shall supervise the operation and maintenance of any housing project.
(f) The association shall fix and may alter from time to time a schedule of rents and charges for any housing project.
(g) The association shall determine standards for, and shall control tenant selection by a housing sponsor.
(h) The association may require the housing project sponsor to demonstrate to the association that the housing project will be occupied to the maximum extent feasible by persons whose incomes fall in the lowest twenty-five percent (25%) of all persons who are eligible to occupy the housing project under the income guidelines established by the association for admission to such housing projects.
(i) The association shall prescribe rules specifying the categories of cost which shall be allowable in the construction, reconstruction, remodeling, improvement or rehabilitation of a housing project. The association shall require any housing sponsor to certify the actual housing project costs upon completion of the housing project, subject to audit and determination by the association. Notwithstanding the provisions of this subsection, the association may accept, in lieu of any certification of housing project costs as provided herein, such other assurances of the said housing project costs, in any form or manner whatsoever, as will enable the association to determine with reasonable accuracy the amount of said housing project costs.
(j) The association shall regulate the retirement of any capital investment or the redemption of stock of a limited profit housing sponsor where any such retirement or redemption when added to any dividend or other distribution will exceed in any one (1) fiscal year such percentage as shall be prescribed by rules of the association of such sponsor’s investment or equity in any housing project.
(k) Notwithstanding any other provision of this chapter, the association is not empowered to finance any housing project undertaken by a housing sponsor unless, prior to the financing of any housing project hereunder, the association finds:
(1) That there exists a shortage of decent, safe, and sanitary housing at rentals or prices which persons of low-income can afford within the general housing market area to be served by the proposed housing project.
(2) That private enterprise and investment have been unable, without assistance, to provide the needed decent, safe, and sanitary housing at rentals or prices which persons of low-income can afford or to provide sufficient mortgage financing for residential housing for occupancy by such persons.