HARRY HUGHES, Governor

1537

rehabilitation in that community. AT LEAST 20 PERCENT OF
EACH ALLOCATION OF MONIES FROM THE FUND STATEWIDE FOR
REHABILITATION OF RESIDENTIAL RENTAL BUILDINGS SHALL BE FOR
BUILDINGS PROVIDING FOUR OR LESS DWELLING UNITS.

(7) "Sponsor" means an owner who receives a
loan to rehabilitate a building for residential rental
purposes, for nonresidential purposes, or for both. A
sponsor shall agree that AT LEAST TWO-THIRDS OF all dwelling
units rehabilitated with the proceeds of the loan shall be
occupied by families of limited income for at least five
years after the rehabilitation of those units is completed.
The Secretary shall establish need criteria for the sponsor
and the sponsor must have been denied a loan from at least
two private lending institutions before he can qualify. TO
ENSURE THE MAXIMUM USE OF ANY AVAILABLE PRIVATE
FINANCING , . TO QUALIFY, A SPONSOR MUST HAVE BEEN DENIED A
LOAN BY A PRIVATE LENDING INSTITUTION, OR ELSE HAVE RECEIVED

A COMMITMENT FROM A PRIVATE LENDING INSTITUTION FOR LESS

THAN THE AMOUNT OF FUNDS NECESSARY FOR THE REHABILITATION,

IF THE PROJECT IS FOR RESIDENTIAL REHABILITATION, AND THE

SPONSOR HAS RECEIVED A COMMITMENT FOR LESS THAN THE AMOUNT
OF FUNDS REQUIRED, THE DEPARTMENT SHALL FURTHER DETERMINE

THAT THE PART PRIVATELY FINANCED CANNOT BE SIGNIFICANTLY

INCREASED TO AN EXTENT THAT WOULD IMPAIR THE FEASIBILITY OF

PROVIDING AFFORDABLE HOUSING TO EXISTING. IF A PORTION OF

REHABILITATION IS TO BE FINANCED BY A PRIVATE LENDING
INSTITUTION, THE DEPARTMENT SHALL REQUIRE THAT THE SPONSOR
UTILIZE THE MAXIMUM AMOUNT OF PRIVATE FINANCING WHICH THE
PROJECT CAN SUPPORT WITHOUT IMPAIRING THE FEASIBILITY OF THE
PROJECT AND, IF RESIDENTIAL, OF PROVIDING AFFORDABLE HOUSING
TO LIMITED-INCOME TENANTS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

AN ACT concerning

CHAPTER 530

(House Bill 276)

Health — Respite Care

FOR the purpose of modifying the definition of respite care
used in the determination of the percentage of beds to
be reserved in state—owned public facilities for
respite care.

BY repealing and reenacting, with amendments,