Definitions

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  • As used in this chapter, unless the context clearly requires otherwise, the following terms have the following meanings:
    • (a) “Authority” means the Virgin Islands Housing Finance Authority created by section 103 of this chapter, and any reference to the government in this chapter shall be construed to mean the Authority;

    • (b) “construction loan” means an interest-bearing loan to a qualified buyer or qualified borrower for the purpose of construction of low and moderate income housing;

    • (c) “declaration” means a written finding by the Authority pursuant to the powers granted by this chapter;

    • (d) “low and moderate income housing” means a residential structure or structures suitable for a person or persons of low and moderate income, as determined by the Authority pursuant to section 106(b) of this chapter.

    • (e) “low interest” means a rate of interest less than the prevailing rate of interest charged by banks or other commercial lending institutions;

    • (f) “mortgage loan or loan” means an interest-bearing loan to a qualified buyer or qualified borrower for the purpose of construction, rehabilitation, home improvement or purchase of low and moderate income housing, and secured by a mortgage, deed of trust or other security instrument on such property and constituting a first or second lien on residential real property and evidenced by a promissory note or other evidence of indebtedness.

    • (g) “pledged assets” means the assets pledged to pay principal of, redemption premium, if any, and interest on the bonds or notes as provided in the declaration authorizing the bonds or notes;

    • (h) “qualified buyer” means a person or persons meeting the criteria established by the Authority for low or moderate income and who:

      • (1) is a resident of the Virgin Islands but preference to long-term residents of the Virgin Islands may be prescribed by the Authority in its rules; and

      • (2) is purchasing property within the Territory of the Virgin Islands;

    • (i) “qualified home improvement loan” means the financing—

      • (1) of alterations, repairs, and improvements on or in connection with an existing residence by the owner thereof, but

      • (2) only of such items as substantially protect or improve the basic liveability or energy efficiency of the property;

    • (j) “qualified rehabilitation loan” means any owner financing provided in connection with a qualified rehabilitation of the owner's existing principal residence, or the acquisition of a different principal residence with respect to which there has been a qualified rehabilitation, but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation. For the purposes of this subsection (j), the term “qualified rehabilitation” means any rehabilitation of a building if:

      • (1) there is a period of at least 20 years between the date on which the building was first used and the date on which the physical work on such rehabilitation begins,

      • (2) 75 percent or more of the existing external walls of such building are retained in place as external walls in the rehabilitation process, and

      • (3) the expenditures for such rehabilitation are 25 percent or more of the mortgagor's adjusted basis in the residence.

      For purposes of paragraph (3), the mortgagor's adjusted basis shall be determined as of the completion of the rehabilitation or, if later, the date on which the mortgagor acquires the residence;
    • (k) “targeted area” means an area which is either a qualified census tract or an area of chronic economic distress. For the purposes of this subsection (k), the term “qualified census tract” means a census tract in which 70 percent or more of the resident families have income which is 80 percent or less of the territory-wide median family income, based on the most recent decennial census for which data are available. For the purposes of this subsection (k), the term “area of chronic economic distress” means an area designated by the Authority as chronically economically distressed and which is approved as such by the U.S. Secretaries of Treasury and Housing and Urban Development;

    • (l) “bonds” and “notes” means the revenue bonds and notes authorized to be issued by section 104 of this chapter;

    • (m) “loan” means a construction loan, mortgage loan, qualified home improvement loan, qualified rehabilitation loan, or other means of financing permitted under this chapter.

    • (n) “qualified borrower” means a person, persons, corporation, partnership, association or other legal entity meeting the criteria established by the Authority for constructing or rehabilitating low and moderate income housing.

    • (o) “Executive Director” means the Executive Director of the Virgin Islands Housing Finance Authority.


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