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IL TYPES OF LOANS AND GRANTS <br />Program funds may be used for development loans for the following eligible purposes: <br />(1) The purchase of existing multi -family or other buildings for rent or sale to low- and <br />very low-income households and for the development of congregate housing for rent <br />to low- and very low-income persons with special needs (e.g. homeless individuals <br />and families, elderly, persons with a disability). Except for congregate housing, <br />existing buildings shall consist of four or more units, unless the Housing Division <br />Manager finds that a substantial public benefit will be provided by a project <br />consisting of less than 4 units. <br />(2) The purchase or lease of land and buildings for new construction or rehabilitation of <br />housing that may utilize available State and Federal housing assistance programs <br />such as Low -Income Housing Tax Credits, the Section 202 Supportive Housing for <br />the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing <br />Program, and/or other available State and Federal programs. <br />(3) The development of limited -equity housing cooperatives through either conversion <br />or new construction. <br />(4) The provision of interim loan funds for any of the above purposes prior to the <br />funding of a public or private loan. Eligible development costs for the above uses <br />include, but are not necessarily limited to: <br />a. site acquisition and preparation; <br />b. rehabilitation of dwelling units, common areas and related structures; <br />c. new construction; <br />d. carrying charges and financing fees; <br />e. architectural, legal, and organizational fees; <br />I. temporary or permanent tenant relocation costs; and <br />g. developer fees consistent with the policies described in Section IV below. <br />Affordable Housing Funds Policies and Procedures Page 8 <br />75B-73 <br />