Section 4 Guarantee Recovery Fund Submission Requirements

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For A Nonprofit Organization

A nonprofit organization may apply to a Financial Institution. The application shall include:

• a description of the assistance needed, including eligible activities;
• a statement of other funds available to finance the eligible activities;
• a certification from the nonprofit organization that the activities to be assisted resulted from an act of arson or terrorism;
• a certification by a Qualified Certification Official (QCO) that the damage or destruction to be remedied resulted from an act of arson or terrorism;
• environmental documentation required under the regulations;
• replacement information on the damaged/destroyed structure;
• construction/rebuilding plans for the new structure; and
• other information required by the Financial Institution.

For A Financial Institution

A Financial Institution shall submit its request for a loan guarantee to HUD. The submission is to include:

• the nonprofit's application;
• a narrative of the Financial Institution's underwriting standards used in underwriting the nonprofit's loan request that includes an analysis of the nonprofit organization's ability to pay loan debt service and the value of the collateral assigned or pledged as security for the repayment of the loan. (In refinancing transactions, advise HUD of any premium or discount to be assessed);
• the interest rate on the loan (which rate shall take into account the value of the HUD guarantee) plus any fees to be charged; and
• the percentage of the loan for which a guarantee is requested.