Guam § 4103 - Authorized Activities of Corporation.

§ 4103. Authorized Activities of Corporation.

The Housing Corporation is authorized to engage in the

following activities when it finds that such activities will further

the purposes of this Chapter and will not conflict with the

encouragement and promotion of private enterprise in the

territory of Guam:

(a) To encourage and promote the investment of

private capital in low and moderate income residential

housing in Guam. The Housing Corporation shall formulate

its policies so as to encourage and promote the investment

of capital owned by residents of Guam.

(b) To engage in land-use planning for residential

housing purposes to the end that the most economic and

socially beneficial use may be made of land, and to

encourage and assist private persons and organizations to

act in accordance with the results of such planning.

(c) To encourage and engage in low and moderate

income housing activities, including development of

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residential subdivisions, construction of housing for rental

or resale, and to make loans to any person for the purchase,

construction, improvement or repair of a home.

(1) All loans shall be of such sound value or so

secured as to assure repayment, taking into

consideration the policy of I Liheslaturan Guåhan that

the lending powers to the Guam Housing Corporation

(“Corporation”) shall be administered as a means of

accomplishing the purposes stated in § 4101 of this

Chapter, and shall bear interest at a rate to be

determined by the Board of Directors of the

Corporation; provided, that such shall not exceed two

percent (2%) over the costs of funds.

(2) Loans shall be made to residents of Guam to

enable them to purchase or construct permanent homes

which are insurable under a standard Guam Home

Owner’s insurance policy to include, but not be limited

to, the perils of tropical cyclones, earthquakes and fire.

(3) All loans for the purchase, construction, or

purchase of land and construction of such home shall

not exceed the Federal Housing Administration loan

limit established by the U.S. Department of Housing

and Urban Development for Guam.

(4) No loan may be used exclusively for the

purchase of land.

(5) The Corporation is authorized to grant loans

which use a portion of the mortgage loan proceeds to

consolidate existing consumer debts with the mortgage

loan, if the consolidation of such consumer debt would

cause the applicant to qualify for the Corporation’s

loan programs.

(6) Loans shall be given only to residents who

have been unable to obtain conventional financing

from mortgage lending institutions, including, but not

limited to, banks and savings and loan associations. At

least one (1) written loan refusal from mortgage

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lending institutions shall be presented upon application

for a Corporation loan.

(d) (1) To encourage and promote the construction of

housing units for rent within the capacity of families of

low and moderate income.

(2) To assist in the development of tourist hotel

facilities as provided in this Chapter.

(e) To make a low interest loan to any homeowner

whose living space in his primary residence was damaged

as a result of the earthquake on Guam on August 8, 1993 to

repair such residence; provided, that the homeowner did not

have insurance to cover the loss and did not qualify for a

loan from the U.S. Small Business Administration sufficient

to complete the earthquake repair, or from any other

financial institution. First priority for such loans shall be

given to those homeowners whose primary residence is

mortgaged to the Housing Corporation.

(f) To encourage and promote the purchase or

construction of affordable, typhoon-resistant, permanent

homes by the residents of Guam who have not previously

been homeowners, by utilizing a special fund to provide

financial grants.