24 NCAC 01O .0203. ADMINISTRATION

(a)  The agency shall enter into a funding agreement with each program recipient.  The agreement shall address:

(1)           Time of performance;

(2)           Program funding;

(3)           Program management; and

(4)           General conditions.

(b)  Program recipients shall service loans made to borrowers.  Loan repayment requirements shall include:

(1)           The loans will be non interest-bearing.

(2)           The loans will be secured only by a promissory note.

(3)           Program recipients must explain to borrowers that the funds provided through the program are a loan, not a grant.

(4)           Program recipients shall collect loan repayments from borrowers and remit them to the agency at least quarterly.

(5)           Loan terms shall be flexible so that repayment is affordable to borrowers.

(6)           Program recipients will not be liable to the agency for repayment of loans made to borrowers but shall make an effort to collect loan repayments from borrowers.

(c)  The agency shall periodically review the performance of recipient organizations according to the funding agreement.  This shall be done at least annually.

(d)  Program recipient shall submit periodic reports required by the agency to facilitate the monitoring process.  The reports shall include,progress on the accomplishment of program objectives such as:

(1)           Demographic information on borrowers;

(2)           Information on the characteristics of housing units obtained;

(3)           Descriptions of the support services provided to borrowers; and

(4)           Audited financial statements.

(e)  If the agency finds there has been substantial nonperformance under the funding agreement and the situation is not corrected after notice to the recipient of such finding, the agency may terminate or modify the agreement after written notice is provided.

 

History Note:        Authority G.S. 122A‑5; 122A‑5.1; S.L. 1991, c. 582, s. 1;

Eff. November 30, 1992.