§ 5-20-2-5 — Other limitations

Indiana § 5-20-2-5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 20: HOUSING
• Ch. 2: Financing of Housing

Text

(a) Bonds shall not be issued by a county, city,
town, or consolidated city for home mortgages under this chapter if at
the time of issuance and delivery there remains unexpended or
uncommitted more than five percent (5%) of the net proceeds of a prior
bond issued by that county, city, town, or consolidated city under this
chapter.
(b) Bonds shall not be issued under this chapter for home mortgages
in an amount in excess of twenty-five percent (25%) of the average
annual amount of mortgage lending in the county or municipality in the
most recent three (3) year period for which the governing body shall by
ordinance determine from the Home Mortgage Disclosure Act, Public
Law 94-200.
(c) No issue shall be approved by the authority if the amount of the
issue exceeds the total amount of bond issues permissible under this
chapter in the calendar year during which the proposed bonds will be
issued. The total amount of bonds permissible under this chapter in any
calendar year shall be fifty dollars ($50) multiplied by the population
of the state of Indiana as determined by the most recent federal
decennial census.
(d) There is a five percent (5%) down payment requirement. An
issue meets this requirement only if seventy-five percent (75%) or more
of the owner-occupied financing provided by the issue is ninety-five
percent (95%) financing. For purposes of this subsection, financing of
a residence is ninety-five percent (95%) financing if such financing is
ninety-five percent (95%) or more of the acquisition cost of such
residence. A larger down payment is permitted in the case of
alternative mortgage instruments as provided by law.
(e) No mortgage shall be made under this chapter the amount of
which exceeds two and one-half (2 1/2) times the amount of the annual
income of the prospective mortgagor. In addition, no financing shall be
provided under this chapter to a prospective mortgagor who is already
a mortgagor with respect to an existing mortgage financed under this
chapter.
(f) The effective rate of interest on mortgages provided from a
particular bond issue under this chapter may not exceed the yield on the
issue by more than one (1) percentage point. For purposes of this
subsection, the effective rate of mortgage interest and the bond yield
shall be determined in accordance with reasonable procedures adopted
by the authority. However, the authority may waive the restriction in
this subsection if it determines that:
(1) waiver of the restriction with respect to a proposed issue is in
the best interests of the citizens of the issuing jurisdiction and the
state of Indiana; and
(2) the proposed issue is not marketable without waiver of the
restriction.
(g) An issue meets the requirements of this section only if a
preliminary official statement of such issue has been submitted to the
authority, and:
(1) such authority has, within thirty (30) days after the date of
such submission, issued an opinion that such issue meets the
requirements of this section and section 4 of this chapter; or
(2) thirty (30) days have elapsed since such submission and
during this thirty (30) day period the authority has not issued an
opinion that the issue does not meet the requirements of this
section and section 4 of this chapter.
As added by Acts 1979, P.L.47, SEC.1. Amended by Acts 1981,
P.L.62, SEC.4; P.L.1-2006, SEC.107; P.L.181-2006, SEC.22;
P.L.1-2007, SEC.30.