(1) Insurance on a loan qualifying for mortgage insurance under this article shall be in effect as of the date on which the lender has made a report to the corporation which shall document:
The estimated cost of the rehabilitation work to be done;
In the case of a refinancing loan or acquisition loan, that such loan shall not exceedone hundred percent of the fair market value of the property to be refinanced or acquired after rehabilitation work has been completed;
That the estimated useful life of the housing accommodation, after rehabilitation, inthe case of a rehabilitation loan, is greater than the term of the insurable mortgage;
That the housing facility after purchase or rehabilitation will not contain any substantial violation of housing, building, or sanitary codes which would make the housing so unsafe that it presents a danger to the occupants or the public health or safety.
Source: L. 75: Entire article added, p. 269, § 1, effective June 29.