Chapter 4

12 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 1 CHAPTER 4 GUAM HOUSING CORPORATION Article 1. General Provisions. Article 2. Community Affordable Housing Action Trus t Act. Article 3. Government Participation Loan Act. Article 4. Guam Housing Mortgage Insurance Corporat ion. Article 5. Requirements and Regulations. Article 6. Home Financing Act. Article 7. First Time Home Owner Assistance Program Act. Article 8. Mortgage Credit Certification Program. Article 9. Lease-To-Own Housing Program. Article 10. Housing Trust Fund Act. ARTICLE 1 GENERAL PROVISIONS § 4101. Creation of Corporation: Name. § 4102. Principal Offices. § 4103. Authorized Activities of Corporation. § 4104. General Powers: Termination Date. § 4105. Bonds as Special Obligations. § 4105.1. Waiver of Recordation and Other Fees. § 4105.2. Bonds as General Obligations of the Housi ng Corporation. § 4106. Trustee for Board and Bondholders. § 4106.1. Validity of Pledge. § 4107. Utilization of Federal Agencies and Instrumentalities. § 4108. Housing Corporation Guarantee Fund. § 4109. Direct Loans to Veterans. § 4110. Corporation’s Use of Funds. § 4111. Appropriations. § 4112. Board of Directors. § 4113.

es and Instrumentalities. § 4108. Housing Corporation Guarantee Fund. § 4109. Direct Loans to Veterans. § 4110. Corporation’s Use of Funds. § 4111. Appropriations. § 4112. Board of Directors. § 4113. Transfer of Functions. § 4114. Rental Housing Guarantee. § 4115. Authorization to Accept Direct Advances fro m the Federal Home Loan Bank. § 4116. Debt to Income Ratio. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 2 § 4101. Creation of Corporation: Name. In order to promote the general welfare of the inh abitants of the Territory of Guam through the improvement of ho using standards, housing supply and housing affordability in Guam, there is created a body corporate to be known as th e Guam Housing Corporation, hereinafter referred to as the 'Housing Corporation.' The Housing Corporation shall be deem ed to be exercising essential government functions and shall be subject to the general direction of the Governor of Guam SOURCE : GC § 20000. Amended by P.L. 24-81:2. § 4102. Principal Offices. The Housing Corporation shall have its principal o ffices in the territory of Guam and shall be deemed to be an inhabitant of this jurisdiction.

0. Amended by P.L. 24-81:2. § 4102. Principal Offices. The Housing Corporation shall have its principal o ffices in the territory of Guam and shall be deemed to be an inhabitant of this jurisdiction. The Housing Corporation may esta blish offices in such place or places as it may deem necessary or appropriate in the conduct of its business. SOURCE : GC § 20001. § 4103. Authorized Activities of Corporation. The Housing Corporation is authorized to engage in the following activities when it finds that such activi ties will further the purposes of this Chapter and will not conflict with the encouragement and promotion of private enterprise i n the territory of Guam: (a) To encourage and promote the investment of private capital in low and moderate income resident ial housing in Guam. The Housing Corporation shall form ulate its policies so as to encourage and promote the inv estment 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 organizati ons to act in accordance with the results of such

urposes to the end that the most economic and socially beneficial use may be made of land, and to encourage and assist private persons and organizati ons 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 COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 3 residential subdivisions, construction of housing f or 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 t hat 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 t wo percent (2%) over the costs of funds. (2) Loans shall be made to residents of Guam to enable them to purchase or construct permanent home s which are insurable under a standard Guam Home Owner’s

t wo percent (2%) over the costs of funds. (2) Loans shall be made to residents of Guam to enable them to purchase or construct permanent home s which are insurable under a standard Guam Home Owner’s insurance policy to include, but not be lim ited to, the perils of tropical cyclones, earthquakes an d fire. (3) All loans for the purchase, construction, or purchase of land and construction of such home shal l 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 t o consolidate existing consumer debts with the mortga ge loan, if the consolidation of such consumer debt wo uld 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 COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

m mortgage lending institutions, including, but not limited to, banks and savings and loan associations . At least one (1) written loan refusal from mortgage COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 4 lending institutions shall be presented upon applic ation for a Corporation loan. (d) (1) To encourage and promote the construction o f housing units for rent within the capacity of famil ies 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 dam aged 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 qualif y for a loan from the U.S. Small Business Administration su fficient to complete the earthquake repair, or from any othe r financial institution. First priority for such loan s shall be given to those homeowners whose primary residence i s mortgaged to the Housing Corporation. (f) To encourage and promote the purchase or construction of affordable, typhoon-resistant, perm anent

l be given to those homeowners whose primary residence i s mortgaged to the Housing Corporation. (f) To encourage and promote the purchase or construction of affordable, typhoon-resistant, perm anent homes by the residents of Guam who have not previou sly been homeowners, by utilizing a special fund to pro vide financial grants. SOURCE : GC § 20002; Subsections (a) and (c) amended by P. L. 16-42; Subsection (c) further amended by P.L. 18-2 and P.L . 18-34. Subsection (c) R/R by P.L. 20-210:13. Subsection (c) was furth er amended by P.L. 22-113:6. Subsection (e) added by P.L. 22-24:6 (8/3 1/93). Subsection (c) amended by P.L. 24-45:3. Subsection (c) repealed an d reenacted by P.L. 24-82:2. Subsection (f) added by P.L. 24-180:2.Subs ection (c) amended by P.L. 26-123:7. 2017 NOTE: Subitem designations added pursuant to the authorit y of 1 GCA § 1606. § 4104. General Powers: Termination Date. The Housing Corporation shall have, and may exercis e, the following general powers in carrying on the activit ies specified in this Chapter: (a) To have perpetual succession. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

ation shall have, and may exercis e, the following general powers in carrying on the activit ies specified in this Chapter: (a) To have perpetual succession. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 5 (b) To adopt, alter and use a corporate seal, whic h shall be judicially noticed. (c) To adopt, amend and repeal by laws governing t he conduct of its business and the performance of the powers and duties granted to or imposed upon it by law. (d) To sue and to be sued in its corporate name. (e) To determine the character of and the necessit y for its obligations and expenditures and the manner in which they shall be incurred, allowed and paid, subject t o the laws applicable specifically to government corporations. (f) To acquire, in accordance with Title VII-A of the Government Code and the laws of Guam, any property, real, personal or mixed, tangible or intangible, to hold, maintain, use and operate the same; and to sell, lease or oth erwise dispose of the same, whenever any of the foregoing transactions are deemed necessary or appropriate to the conduct of the activities authorized by this Chapte r, and on such terms as may be prescribed by the Housing

ame, whenever any of the foregoing transactions are deemed necessary or appropriate to the conduct of the activities authorized by this Chapte r, and on such terms as may be prescribed by the Housing Corporation. (g) To enter into and perform such contracts, leas es, cooperative agreements or other transactions with a ny agency or instrumentality of the United States, or with any state, territory or possession, or with any politic al subdivision thereof, or with any person, firm, asso ciation or corporation, as may be deemed necessary or appropri ate to the conduct of the activities authorized by this Ch apter, and on such terms as may be prescribed by the Housing Corporation. Provided, that in no case shall the Ho using Corporation contract to undertake an activity for a ny agency or instrumentality of the United States, or for any state, territory or possession, or for any political subdi vision thereof, unless the latter is authorized by law to undertake such activity and furnishes the funds for such purp ose. (h) To execute all instruments necessary or appropr iate in the exercise of any of its functions. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

ke such activity and furnishes the funds for such purp ose. (h) To execute all instruments necessary or appropr iate in the exercise of any of its functions. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 6 (i) To appoint, pursuant to the provisions of the personnel rules adopted pursuant to 4 GCA §§ 4105 a nd 4106, such officers, agents, attorneys and employee s, as may be necessary for the conduct of the business of the Housing Corporation; to delegate to them such power s and to prescribe for them such duties as may be deemed appropriate by the Housing Corporation; to fix and pay such compensation to them for their services as the Hous ing Corporation may determine, without regard to the compensation laws and to require bonds from such of them as the Housing Corporation may designate, the premi ums, therefore, to be paid by the Housing Corporation. A ny member of said Board who is found by the Governor o r his representative to be guilty of a violation of this Section shall be removed from office by the Governor and any appo intee of said Board who is found by the Board to be guilt y of a violation of this Section shall be removed from off ice by said

this Section shall be removed from office by the Governor and any appo intee of said Board who is found by the Board to be guilt y of a violation of this Section shall be removed from off ice by said Board. The Housing Corporation shall give due consideration to residents of Guam in the selection and promotion of its officers and employees. (j) To accept gifts or donations of services or of property -- real, personal or mixed, tangible or in tangible -- in aid of any of the activities authorized by this Chapter. (k) To settle and adjust claims held by it against other persons or parties and by other persons or parties against the Housing Corporation. (l) To take such action as may be necessary or appropriate to carry out the powers and duties here in or hereafter specifically granted to or imposed upon i t. (m) To borrow funds required to finance or refinanc e its revenue producing projects or to finance or ref inancing a home financing program under § 4602 by the issuance , from time to time, of bonds under such terms and conditi ons as the Housing Corporation may prescribe, and to pledg e and assign specified revenues and other property of the Housing Corporation to the

rom time to time, of bonds under such terms and conditi ons as the Housing Corporation may prescribe, and to pledg e and assign specified revenues and other property of the Housing Corporation to the repayment of such bonds. SOURCE : GC § 20003 Subsection (f) amended by P.L. 16-124; Subsection (i) amended by P.L. 16-23; Subsection (m ) amended by P.L. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 7 16-42. Subsection (a) amended by P.L. 24-81:4. Subs ection (m) amended by P.L. 24-81:5. § 4105. Bonds as Special Obligations. Every Bond issued by the Housing Corporation pursua nt to this Chapter shall be a special obligation of the H ousing Corporation payable solely from the revenues and ot her property specified in the indenture or resolution providing for the issuance of such bond. Every bond shall recite that it is no t public indebtedness of the Territory of Guam as that term is used in §11 of the Organic Act. SOURCE : GC § 20003.1, as added by P.L. 16-42. Amended by P.L. 24- 81:6. § 4105.1. Waiver of Recordation and Other Fees. (a) All fees charged by the Department of Land Management to any party in the recordation or relea se of any documents pursuant to

ed by P.L. 24- 81:6. § 4105.1. Waiver of Recordation and Other Fees. (a) All fees charged by the Department of Land Management to any party in the recordation or relea se of any documents pursuant to the administration, pledge, a ssignment or collateralization of any loan between the Guam Hous ing Corporation and any of its creditors are hereby wai ved. (b) Any fee charged by the Guam Economic Developmen t Authority for any service rendered in regard to a l oan agreement between the Guam Housing Corporation and the Bank o f Guam is also hereby waived. SOURCE : Added by P.L. 22-113:3. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4105.2. Bonds as General Obligations of the Housi ng Corporation. (a) Notwithstanding the provisions of § 4105 of thi s chapter, the Housing Corporation is authorized to i ssue debt as a general obligation of the Housing Corporation on an unsecured basis, payable from the Housing Corporation’s gener al operating cash inflows. The amount of such general obligation debt outstanding at any one time shall not exceed the Ho using Corporation’s net worth as determined by Generally Accepted Accounting Principles ('GAAP').

flows. The amount of such general obligation debt outstanding at any one time shall not exceed the Ho using Corporation’s net worth as determined by Generally Accepted Accounting Principles ('GAAP'). COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 8 (b) Every such bond or other evidence of such debt shall recite that it is not a public indebtedness of the territory of Guam as the term is used in Section 11 of the Organic Ac t of Guam. SOURCE : Added by P.L. 22-113:5. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4105.3. Definition of Bonds . For purposes of this Chapter the term bonds shall mean any bonds, notes or other evidences of indebtedness of the Housing Corporation issued pursuant to this Chapter. SOURCE : Added by P.L. 24-81:3. § 4106. Appointment of Trustee: Provision of Indent ure or Resolution. (a) The Housing Corporation may appoint a bank or trust company to act as trustee for the Board and the hol ders of the bonds issued hereunder, and the Board may authorize the trustee to act on behalf of the holders of the bonds, or a stated percentage thereof, and to exercise and prosecute o n behalf of the holders

e bonds issued hereunder, and the Board may authorize the trustee to act on behalf of the holders of the bonds, or a stated percentage thereof, and to exercise and prosecute o n behalf of the holders of the bonds such rights and remedies a s may be available to the holders. (b) The indenture or resolution pursuant to which a ny bonds are issued may provide for (1) the deposit of all revenues with the trustee an d for the holding thereof by the trustee in one or more s eparate funds or accounts, and (2) the transfer to such trustee of such portions o f revenues as are provided as security for the bonds and for the holding thereof by such trustee in one (1) or m ore separate funds or accounts. All money in each such fund or account shall be dis bursed only as provided in the indenture or resolution pursuant to which the bonds are issued. (c) Any indenture or resolution pursuant to which bonds of the Housing Corporation are issued may provide for any or all of the following: COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 9 (1) the payment of the principal and interest of t he bonds at one (1) or more places in the Territory or in the United States and in any

2112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 9 (1) the payment of the principal and interest of t he bonds at one (1) or more places in the Territory or in the United States and in any specified coin or currency of the United States; (2) the pledge and assignment of all or any portio n of the revenues or other property of the Housing Corpo ration, including, without limitation, mortgage loans and mortgage-backed securities, to secure the payment o f the bonds, subject to existing agreements with holders; (3) reserves or sinking funds in the hands of trus tees, paying agents and other depositories and the regula tion and disposition thereof; (4) limitations on the purpose to which the procee ds of sale of bonds may be applied; (5) limitations on the issuance of additional bond s, the terms upon which additional bonds may be issued and secured and the refunding of outstanding bonds; (6) the procedure, if any, by which the terms of a ny contract with the holders of bonds may be amended o r abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such conse nt may be given; (7) vesting in a trustee property, rights, powers a nd

may be amended o r abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such conse nt may be given; (7) vesting in a trustee property, rights, powers a nd duties in trust as the Housing Corporation determin es; (8) the specification of the acts or omissions to a ct which shall constitute a default in the obligations and duties of the Housing Corporation to the holders of the bo nds and providing for the rights and remedies of the holder s, and any limitations on such rights and remedies, in the event of such default; and (9) any other matters of like or different characte r which in any way affect the security or protection of the holders of the bonds or the rights of the Housing Corporation. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 10 (d) Bonds of the Housing Corporation issued pursuan t to this Chapter shall: (1) bear such date, (2) mature at such times, (3) bear interest at such fixed or variable rates, (4) be sold at public or private sale at such price s above or below par, (5) be in such denominations, (6) be in such form, (7) carry such registration privileges, (8) be executed in such manner and (9) be

sold at public or private sale at such price s above or below par, (5) be in such denominations, (6) be in such form, (7) carry such registration privileges, (8) be executed in such manner and (9) be subject to such terms of redemption as provi ded in the indenture or resolution authorizing their is suance. SOURCE : GC § 20003.2, as added by P.L. 16-42. Amended by P.L. 24- 81:7. 2015 NOTE: Subsection designations in (b), (c) and (d) were al tered to adhere to the Compiler’s alpha-numeric scheme pursu ant to the authority granted by 1 GCA § 1606. § 4106.1. Validity of Pledge. Any pledge made by the Housing Corporation shall be valid and binding from the time the pledge is made. The r evenues or other property pledged and thereafter received by t he Housing Corporation shall immediately be subject to the lie n of the pledge without any physical delivery thereof or fur ther act. The lien of any pledge shall be valid and binding again st all parties having claims of any kind in tort, contract, or oth erwise against the Housing Corporation, irrespective of whether su ch parties have notice thereof.

shall be valid and binding again st all parties having claims of any kind in tort, contract, or oth erwise against the Housing Corporation, irrespective of whether su ch parties have notice thereof. Neither the resolution, the in denture nor any other instrument by which a pledge is created need be recorded. SOURCE : Added by P.L. 24-81:8. § 4107. Utilization of Federal Agencies and Instrum entalities. The Housing Corporation, in carrying on the activit ies authorized by this Chapter shall utilize, to the ex tent allowed by COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 11 law, the available services and facilities of agenc ies and instrumentalities of the Federal Government or of t he government of Guam; and shall not engage in any und ertaking which substantially duplicates an undertaking previ ously initiated and currently being prosecuted within Gua m by any such agency or instrumentality. SOURCE : GC § 20004. § 4108. Housing Corporation Guarantee Fund. (a) The 'Finance Agency Guarantee Fund' heretofore created and existing pursuant to former §§ 20002, 2 0003 and 20003.1 of the Government Code of Guam is hereby redesignated 'Housing Corporation Guarantee

he 'Finance Agency Guarantee Fund' heretofore created and existing pursuant to former §§ 20002, 2 0003 and 20003.1 of the Government Code of Guam is hereby redesignated 'Housing Corporation Guarantee Fund' a nd the same is hereby transferred to the Housing Corporati on and set aside as a separate and special revolving fund of t his Housing Corporation. (b) The Housing Corporation shall have the power to insure and guarantee, as to principal or interest or both, and upon such conditions, rules and regulations as it may prescri be, but only from the aforesaid Guarantee Fund, the repayment in whole or in part of any loan made by any public or private lend ing agency authorized to do business in Guam. SOURCE : GC § 20005. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4109. Direct Loans to Veterans. To assist in the housing needs of voting residents of Guam who are veterans of the Armed Forces of the United States, who served during the Second World War, during the Kore an Conflict, or during the war in Vietnam, and who wer e honorably discharged from service, the Housing Corporation ma y make direct loans to such veterans.

ring the Second World War, during the Kore an Conflict, or during the war in Vietnam, and who wer e honorably discharged from service, the Housing Corporation ma y make direct loans to such veterans. (a) Such loans shall be made from the Housing Corporation’s Guarantee Fund and upon such terms an d conditions and under such rules and regulations as the Board may prescribe. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 12 (b) It is the intent of the Legislature that such l oans may be made to such veterans whether or not adequat e financing is available on reasonable terms from a l ending agency. (c) No loan in excess of Sixteen Thousand Dollars ($16,000) shall be made for the construction of a n ew home provided that up to Two Thousand Dollars ($2,000) o f such amount may be used to purchase a homesite. SOURCE : GC § 20006. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4110. Corporation’s Use of Funds. (a) The Housing Corporation is authorized to use it s funds, from whatever source derived, in the exercise of it s corporate powers and functions.

of 1 GCA § 1606. § 4110. Corporation’s Use of Funds. (a) The Housing Corporation is authorized to use it s funds, from whatever source derived, in the exercise of it s corporate powers and functions. (b) The Housing Corporation shall contribute to the government of Guam Retirement Fund on the basis of annual billings as determined by the Department of Labor a nd Personnel, for the Government’s share of the cost o f the retirement system applicable to the Housing Corpora tion’s employees and their beneficiaries. The Housing Corp oration shall also contribute to the Workmen’s Compensation Fund on the basis of annual billings, as determined by the Workmen’s Compensation Commissioner, for the benefit payments made from such fund on account of the Housing Corporatio n’s employees. SOURCE : GC § 20007. § 4111. Appropriations. (a) Appropriations are authorized for payment to th e Housing Corporation in the form of a grant, in such amounts as may be estimated in advance in the annual budget as necessary to cover losses to be sustained in the conduct of i ts activities which are included in the annual budget as predomin antly revenue-producing.

e estimated in advance in the annual budget as necessary to cover losses to be sustained in the conduct of i ts activities which are included in the annual budget as predomin antly revenue-producing. The Housing Corporation’s annual budget program shall specifically set forth any loss susta ined in excess of the grant previously made for the last completed fiscal year. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 13 Appropriations are authorized for payment to the Ho using Corporation to cover such additional losses incurre d. (b) Appropriations are also authorized for payment to the Housing Corporation in the form of a grant, to be a ccounted for as general funds of the Housing Corporation, in suc h amounts as may be necessary to meet expenses to be incurred fo r specific programs which are included in the annual budget as not predominantly of a revenue-producing character. Pro vided, however, that (1) in the case of activities of a predominantly no n- revenue-producing character the expenses shall not exceed the amounts of the grants for these activities, and that (2) the funds granted under this Subsection shall b e expended only upon certification by a

-producing character the expenses shall not exceed the amounts of the grants for these activities, and that (2) the funds granted under this Subsection shall b e expended only upon certification by a duly authoriz ed certifying officer designated by the Housing Corpor ation. SOURCE : GC § 20008. § 4112. Board of Directors. (a) The management of the Housing Corporation shal l be vested in a Board of Directors consisting of seven (7) members including a chairman who shall be appointed by the Governor of Guam, with the advice and consent of the Legislatur e. (1) The Directors shall serve for a period of six (6) years, except that (A) any director appointed to fill a vacancy occurring prior to the expiration of the term for w hich his predecessor was appointed, shall be appointed f or the remainder of such term, and (B) the terms of office of the directors first taki ng office after June 30, 1963, shall expire, as design ated by the Governor at the time of appointment, one (1) the end of two (2) years, one (1) at the end of four (4 ) years, one (1) at the end of six (6) years, and one (1) at the end of eight (8) years, after June 30, 1963. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

of two (2) years, one (1) at the end of four (4 ) years, one (1) at the end of six (6) years, and one (1) at the end of eight (8) years, after June 30, 1963. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 14 (2) Qualifications of Board members shall include demonstrated ability, attachment to the public inte rest, impartiality, and diversified experience among its members. (3) The Board shall be responsible for overall pol icy- making and general supervision. (4) The Board shall meet at least quarterly. (5) The Board of Directors shall act only by a maj ority vote of those present at a meeting attended by a qu orum, and such quorum shall consist of four (4) Directors . Subject to the foregoing limitation, vacancies in the membe rship of the Board shall not affect its power to act. (6) Directors shall not participate in any decisio n of the Board which will directly involve or affect the ir personal business affairs. (7) The Directors receive no salary for their serv ices on the Board, but under regulations and in amounts prescribed by the Board, with the approval of the G overnor, may be paid by the Housing Corporation reasonable p er diem fees, and

r their serv ices on the Board, but under regulations and in amounts prescribed by the Board, with the approval of the G overnor, may be paid by the Housing Corporation reasonable p er diem fees, and allowances in lieu of subsistence ex penses, for attendance at meetings of the Board and for tim e spent on official service of the Housing Corporation, and their necessary travel expenses to and from meetings or w hen upon such official service. (b) The administrative functions shall be performed by a full-time staff headed by a president appointed by the Board, subject to approval of the Governor and the consent of the Legislature. (c) The president shall be responsible to the Board for the execution of programs and policies adopted by the B oard and for the day-to-day operations of the Housing Corporatio n. Between meetings of the Board, the president shall see that the Housing Corporation faithfully executes the programs and po licies adopted by the Board. SOURCE : GC § 20009. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 15 2015 NOTE: Subsection designations were added/altered to adher e to the Compiler’s alpha-numeric scheme pursuant to the aut hority

9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 15 2015 NOTE: Subsection designations were added/altered to adher e to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4113. Transfer of Functions. (a) There is transferred to the Housing Corporation the following property: All the assets and property -- real, personal and mixed, tangible and intangible -- of the Guaran tee Fund of the Guam Finance and Development Corporation. The v alue of the property so transferred shall be fixed at the v alue shown on the books of the Guam Finance and Development Corpo ration at the date of transfer. (b) The Housing Corporation shall assume and discha rge all of the liabilities of the Guam Finance and Developm ent Corporation. (c) The servicing of all loans heretofore granted b y the Guam Finance and Development Corporation shall cont inue to be the responsibility of this Housing Corporation. SOURCE : GC § 20010. 2017 NOTE: Subitem designation were removed pursuant to the authority granted by 1 GCA § 1606. § 4114. Rental Housing Guarantee. (a) The Housing Corporation is authorized to guaran tee payment of loans in an amount not to exceed

n were removed pursuant to the authority granted by 1 GCA § 1606. § 4114. Rental Housing Guarantee. (a) The Housing Corporation is authorized to guaran tee payment of loans in an amount not to exceed seventy -five percent (75%) of the total development and construc tion cost of rental housing under all Federal Housing Administra tion multi- family housing programs. Any such project must cons ist of not more than ten (10) rental units. The Housing Corpor ation may pledge its assets in support of any guarantee hereu nder. (b) The Housing Corporation will provide by regulat ion for the implementation of this Section, which regulatio ns shall provide, without limitation, for submission to the Housing Corporation of necessary data in support of an appl ication for guarantee, any charge to be made or security to be furnished with respect to such guarantee and for the procedure to be followed in case of default. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 16 (c) The Governor of Guam, with the concurrence of t he Committee on Rules of the Guam Legislature, is auth orized to execute such documents as may be required to assure the integrity of a guarantee given

The Governor of Guam, with the concurrence of t he Committee on Rules of the Guam Legislature, is auth orized to execute such documents as may be required to assure the integrity of a guarantee given pursuant to this Sec tion, and, to that end, may pledge the full faith and credit of t he government of Guam. (d) In the event of default in payment on any loan guaranteed, in accordance with applicable regulatio ns, it shall be the primary responsibility of the Housing Corporati on to make such payments as may be required in support of its obligation, if the Housing Corporation, for whatever reason, is un able to do so either in whole or in part, any deficiency therein shall be met by appropriation. SOURCE : GC § 20012. § 4115. Authorization to Accept Direct Advances Fro m the Federal Home Loan Bank. The Federal Housing Finance Board has authorized th e Federal Home Loan Bank of Seattle to lend to the Ho using Corporation as a non-member mortgagee. Pursuant to the provisions of the Financial Institution Reform Reco very and Enforcement Act authorizing the Federal Home Loan B anking System to extend advances to state housing finance authorities, the provisions of §10b of the Federal

ncial Institution Reform Reco very and Enforcement Act authorizing the Federal Home Loan B anking System to extend advances to state housing finance authorities, the provisions of §10b of the Federal Home Loan Ban k Act, and the rules and regulations of the Federal Housing Fi nance Board, the Housing Corporation is hereby authorized to per iodically borrow funds from the Federal Home Loan Bank of Sea ttle ('FHLB') as needed to finance the Housing Corporati on’s lending and real estate development activities in t he form of direct FHLB advances under FHLB’s rules regarding n on- member mortgagees without further legislative appro val. The Housing Corporation shall use all such FHLB advance s according to the following preferences: First, to q ualified applicants who have submitted applications to the H ousing Corporation and are awaiting funding, and second, t o all other eligible applicants. SOURCE : Added by P.L. 22-113:4. § 4116. Debt to Income Ratio. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 17 The Guam Housing Corporation is hereby authorized t o increase its debt to income ratio from thirty-eight percent (38%) to forty-one percent (41%) for the

S AGENCIES CH. 4 GUAM HOUSING CORPORATION 17 The Guam Housing Corporation is hereby authorized t o increase its debt to income ratio from thirty-eight percent (38%) to forty-one percent (41%) for the purpose of assis ting more families in qualifying for mortgage loans. The debt to income ratio may be in conformance with other government p rograms, such as the Federal Housing Administration (FHA) an d Veterans Administration residential mortgage loan programs. SOURCE : Added by P.L. 25-12:2. ---------- ARTICLE 2 COMMUNITY AFFORDABLE HOUSING ACTION TRUST ACT SOURCE : This entire Article was added by P.L. 21-99:2. § 4200. Definitions. § 4201. Loans by Financial Institutions. § 4202. Insurance of Dwelling. § 4203. Loans Made Under this Program. § 4204. Interest Free Loan Program. § 4205. Government Participation. § 4206. Limitations on Interest Free Loans. § 4206.1. 3/2 Down Payment Option. § 4206.2. 3/2 Option Qualifications. § 4207. Interest Free Loan Schedules. § 4208. Termination of Interest Free Loan. § 4209. Community Affordable Housing Action Trust. § 4210. Use of Trust Proceeds for Interest Free Loa ns. § 4211. Repayment of Interest Free Loan. § 4212.

§ 4208. Termination of Interest Free Loan. § 4209. Community Affordable Housing Action Trust. § 4210. Use of Trust Proceeds for Interest Free Loa ns. § 4211. Repayment of Interest Free Loan. § 4212. Qualifications for Interest Free Loan Progr am. § 4213. GHC Participation as a Lender. § 4214. Foreclosure Protection Fund. § 4215. Mortgage Insurance or Guarantee. § 4200. Definitions. For purposes of this Article, the following terms a re defined to mean: COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 18 (a) Adjusted annual income means the total family income less five percent (5%) of such total family income less Four Hundred Eighty Dollars ($480) for each dependent. (b) Appraised Value means the value of the home and lot to be purchased or the value of the home and lo t to be constructed or renovated. (c) Board means the board of directors of the Guam Housing Corporation. (d) Dependent means (1) any child or individual under the age of nineteen (19) over which the head of household of s uch child or individual has legal guardianship; and (2) any child or individual under the age of twenty-five (25) over which the head of household o f such child or

r which the head of household of s uch child or individual has legal guardianship; and (2) any child or individual under the age of twenty-five (25) over which the head of household o f such child or individual has legal guardianship, if such child or individual is a full time student, or (3) any individual, child, relative, or parent, regardless of age, over which the head of household of such person has an obligation to provide financial support due to mental or physical incapacity. (e) Down Payment means the equity requirements of the homeowner needed to initiate the mortgage for t he purchase, construction or renovation of a home. (f) Family Income means the total annual income derived from all sources for each member of the fam ily. (g) Family means two (2) or more persons related by blood, adoption or marriage, living together as a h ousehold. (h) FHLMC means the Federal Home Loan Mortgage Corporation, also known as Freddie Mac . (i) Financial Institution means any financial institution authorized to make mortgage loans. (j) First-time Home Owner means any individual or family who has not had any ownership interest in a COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

financial institution authorized to make mortgage loans. (j) First-time Home Owner means any individual or family who has not had any ownership interest in a COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 19 residential dwelling within the five (5) years prec eding the date of application. Families or individuals who ha ve had an ownership interest in residential real property wit hin the five (5) year period preceding the date of applicat ion but such interest was terminated by a decree of divorce or operation of law qualify as First-time Home Owners. (k) FNMA means the Federal National Mortgage Association, also known as Fannie Mae . (l) GHC means the Guam Housing Corporation. (m) Government means the government of Guam. (n) Home means any single family dwelling or single family condominium or town house. (o) Index Rate means the lower of the FNMA or FHLMC rate. (p) Individual means any unmarried person. (q) Interest Free Loan means second mortgages made by the Government that are to be repaid without int erest pursuant to the provisions of this Chapter. (r) Loan means the loan made by the Financial Institution or GHC to a family or individual pursua nt to

Government that are to be repaid without int erest pursuant to the provisions of this Chapter. (r) Loan means the loan made by the Financial Institution or GHC to a family or individual pursua nt to the provisions of this Chapter. (s) Loan to Value Ratio means the percentage derived from the loan amount divided by the Maximum Price Factor. (t) Maximum Price Factor means the lesser of the appraised value or the selling price of a Home purc hased or constructed under this Chapter, including the under lying real estate. (u) Real Estate Owned (REO) means property acquired by a lender through foreclosure and held in invento ry. (v) Residential Real Property means real property consisting of land and a dwelling which has been us ed as a family’s or individual’s place of residence. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 20 (w) Selling Price means for purposes of this Chapter the purchase price of a completed Home or the purch ase price of the lot and the construction cost of the H ome to be built on the lot. 2015 NOTE: Subsection designations in (d) were altered to adhe re to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA §

uction cost of the H ome to be built on the lot. 2015 NOTE: Subsection designations in (d) were altered to adhe re to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4201. Loans by Financial Institutions. Financial Institutions are authorized to make loans under this Article to qualified families or individuals f or the purchase or construction of typhoon-resistant residential Ho mes. § 4202. Insurance of Dwelling. The Financial Institution shall require that each m ortgagor maintain adequate property insurance coverage for a Home financed under this Chapter. § 4203. Loans Made Under this Program. Loans made by Financial Institutions shall be limit ed to First-time Home Owners who have been residents of G uam for a period of not less than five (5) years immediately preceding the date of application. § 4204. Interest Free Loan Program. The Government shall provide Interest Free Loans to qualified individuals or families as second mortgag e loans subordinated to first mortgage loans made by the Fi nancial Institution for the purchase or construction of a H ome.

Interest Free Loans to qualified individuals or families as second mortgag e loans subordinated to first mortgage loans made by the Fi nancial Institution for the purchase or construction of a H ome. Interest Free Loans shall be available to each family or ind ividual based on the family’s or individual’s adjusted income whi ch shall be determined at the time of application and in accord ance with the schedule set forth in § 4207 of this Article. All l oans so made shall be of such sound value, including credit wort hiness, or so secured as to reasonably assure repayment. § 4205. Government Participation. The Government shall provide Interest Free Loans to qualified families or individuals. The Interest Fre e Loans shall be COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 21 given in accordance to the schedule set forth in § 4207 within the income limits and maximum loan amounts as follows: (a) For families or individuals with adjusted incom es up to Forty Five Thousand Seven Hundred Eighty Doll ars ($45,780), the Government’s participation shall be determined under Schedule I of § 4207.

a) For families or individuals with adjusted incom es up to Forty Five Thousand Seven Hundred Eighty Doll ars ($45,780), the Government’s participation shall be determined under Schedule I of § 4207. (b) For families or individuals with adjusted incom es of more than Forty Five Thousand Seven Hundred Eigh ty Dollars ($45,780) up to Fifty Five Thousand Five Hu ndred Ninety Dollars ($55,590), the Government’s particip ation shall be determined under Schedule II of § 4207. (c) For families or individuals with adjusted incom es of more than Fifty Five Thousand Five Hundred Ninet y Dollars ($55,590) up to Sixty Five Thousand Four Hu ndred Dollars ($65,400), the Government’s participation s hall be determined under Schedule III of § 4207. Income limits contained herein shall be adjusted by GHC as needed. § 4206. Limitations on Interest Free Loans. The total of Interest Free Loans and loans and gran ts provided for in § 4206.1 shall not exceed Forty Tho usand Dollars ($40,000) per applicant. The total Loan to Value Ratio of the combined Financial Institution loan and the Int erest Free Loan shall not exceed Ninety-Five Percent (95%) of the lower of the appraised value or the selling

ant. The total Loan to Value Ratio of the combined Financial Institution loan and the Int erest Free Loan shall not exceed Ninety-Five Percent (95%) of the lower of the appraised value or the selling price. 2017 NOTE: Internal reference was altered to reflect the renum bering of 4206a. § 4206.1. 3/2 Down Payment Option. To the extent allowed by the Financial Institution, an applicant may qualify for a grant or an unsecured I nterest Free Loan equal to an amount not exceeding Five Percent (5%) of the lower of the appraised value or the selling price o f a Home financed under the provisions of this Article. The funds for grants or loans under this subsection shall come fr om the Community Affordable Housing Action Trust as define d in § 4209 of this Article. The maximum loan or grant sha ll be five COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 22 percent (5%) of the lower of the appraised value or the selling price of the Home financed not to exceed Five Thous and Dollars ($5,000). The Financial Institution may include the repayment of the unsecured Interest Free Loan in the borrower’s total debt qualifying ratio. SOURCE: Added by P.L. 21-099:2 (Mar.

Thous and Dollars ($5,000). The Financial Institution may include the repayment of the unsecured Interest Free Loan in the borrower’s total debt qualifying ratio. SOURCE: Added by P.L. 21-099:2 (Mar. 31, 1992) as § 4206a. Renumbered by the Compiler to adhere to its general codification scheme pursuant to the authority granted by 1 GCA § 1606. § 4206.2. 3/2 Option Qualifications. (a) Grants and loans under § 4206.1 shall be limite d to the following: Adjusted Income: Qualifies For: Less than $34,335, Outright Grant, $34,335 to $39,240, 5 Year Interest Free Loan, $39,240 to $45,780, 3 Year Interest Free Loan, Over $45,780, No Grant or Loan. (b) Funding under § 4206.1 will be available only i f the Financial Institution is a participant in the 3/2 O ption program. (c) All amounts above shall be reduced to the exten t the applicant has available resources and any family gi fts that may be applied to the Down Payment. SOURCE: Added by P.L. 21-099:2 (Mar. 31, 1992) as § 4206b. Renumbered by the Compiler to adhere to its general codification scheme pursuant to the authority granted by 1 GCA § 1606. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606.

ed by the Compiler to adhere to its general codification scheme pursuant to the authority granted by 1 GCA § 1606. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. Internal reference was altered to reflect the renum bering of 4206a § 4207. Interest Free Loan Schedules. There are hereby established the following Interest Free Loan Schedules to which this Article applies. The m aximum loan amount shall depend in each instance on the Ra te Index at the time a loan is made. (a) Interest Free Loan Schedule I. Index Rate Maximum Interest Free Loan COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 23 12.00% or more 35.00% of Maximum Price Factor 10.00% to 11.99% 32.00% of Maximum Price Factor Less than 10.00% 30.00% of Maximum Price Factor (b) Interest Free Loan Schedule II. Index Rate Maximum Interest Free Loan 12.00% or more 32.00% of Maximum Price Factor 10.00% to 11.99% 30.00% of Maximum Price Factor Less than 10.00% 28.00% of Maximum Price Factor (c) Interest Free Loan Schedule III. Index Rate Maximum Interest Free Loan 12.00% or more 30.00% of Maximum Price Factor 10.00% to 11.99% 28.00% of Maximum Price Factor Less than 10.00%

Price Factor (c) Interest Free Loan Schedule III. Index Rate Maximum Interest Free Loan 12.00% or more 30.00% of Maximum Price Factor 10.00% to 11.99% 28.00% of Maximum Price Factor Less than 10.00% 25.00% of Maximum Price Factor 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4208. Termination of Interest Free Loan. (a) The mortgagor must pay off the balance of the I nterest Free Loan if, during the term of the loan, the Home secured by the mortgage for which the loan was granted is: (1) transferred or conveyed; (2) sold; (3) occupied exclusively by individuals other than the mortgagor(s) or their children; or (4) leased before five (5) years of actual occupanc y by the mortgagor. (b) If the Home is leased prior thereto then the In terest Free Loan shall be reamortized at the rate of the GHC lo an as an interest bearing loan and such interest shall be re mitted to GHC for deposit in the Community Affordable Housing Act ion Trust (the 'Trust'). 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. § 4209. Community Affordable Housing Action Trust.

Affordable Housing Act ion Trust (the 'Trust'). 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. § 4209. Community Affordable Housing Action Trust. There is hereby established a fund to be known as t he Trust, which shall be maintained by GHC separate and apart from any COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 24 other funds of the Government or GHC. All monies re ceived by GHC from the Government for funding of Interest Fre e Loans provided herein shall be deposited in the Trust and shall be used solely for that purpose. GHC shall distribute and m anage the Trust proceeds. NOTE : P.L. 21-099:4 and 5 (Mar. 31 1992), stated: Section 4. All unused funds previously appropriated to the Corporation Subsidy Fund shall be transferred to th e Community Affordable Housing Action Trust. Section 5. Interest earned on the undisbursed proce eds in the Community Affordable Housing Action Trust and the Foreclosure Protection Fund shall be retained by GH C to cover its expenses in managing these funds. P.L. 21-099:7 further stated: Section 7. Authorization for Appropriations.

ng Action Trust and the Foreclosure Protection Fund shall be retained by GH C to cover its expenses in managing these funds. P.L. 21-099:7 further stated: Section 7. Authorization for Appropriations. (a) Fo ur Million Five Hundred Thousand Dollars ($4,500,000) are here by authorized to be appropriated from the General Fund to the Community Affordable Housing Action Trust establish ed in 4209 of Article 2, Chapter 4, Title 12, Guam Code Annotated, and Five Hundred Thousand Dollars ($500, 000) are hereby authorized to be appropriated to the For eclosure Protection Fund established in 4214 of such Article 2, for the purpose of carrying out the provisions of such Arti cle 2. (b) One Million Dollars ($1,000,000) are authorized to be appropriated to the Government Loan Guarantee Fund established in 4403 of Article 4, Chapter 4, Title 12, Guam Code Annotated, for carrying out the provisions of said Article 4. § 4210. Use of Trust Proceeds for Interest Free Loa ns. Proceeds from the Trust shall be used exclusively f or Interest Free Loans and the 3/2 Option provisions i n participation with an underlying mortgage by a part icipating Financial Institution.

a ns. Proceeds from the Trust shall be used exclusively f or Interest Free Loans and the 3/2 Option provisions i n participation with an underlying mortgage by a part icipating Financial Institution. The Interest Free Loan shall be subordinate to the underlying loan by the Financial Institution but shall not be subordinate to any other debt or debenture. § 4211. Repayment of Interest Free Loan. The Interest Free Loan shall be repaid monthly by t he mortgagor in an amount equal to the loan amount div ided by the number of monthly periods until maturity. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 25 (a) The priority for payment of such loan in the ev ent the loan is in arrears is after the Financial Insti tution’s requirements and before other Trust fund obligation s. (b) GHC may establish and charge the mortgagor late fees for all Interest Free Loans that are paid afte r the grace period. (c) Where allowed by the participating lender, GHC may authorize deferral of the Interest Free Loan fo r a period of time not to exceed five (5) years. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4212.

, GHC may authorize deferral of the Interest Free Loan fo r a period of time not to exceed five (5) years. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4212. Qualifications for Interest Free Loan Progr am. (a) Prior to applying at a Financial Institution fo r an Interest Free Loan under this Article, the applicant shall f irst receive an eligibility letter from GHC. (b) To qualify for the Interest Free Loan program, an individual or family must meet the income requireme nts established herein and demonstrate repayment abilit y. (c) Any applicant, who intentionally supplies false information on the application for funds under any of the programs established in this Article shall automati cally be disqualified from such program. In the event that f unds are disbursed by GHC on behalf of such an applicant, th ere shall be penalty interest as set by GHC charged on the amoun t disbursed. § 4213. GHC Participation as a Lender. (a) An applicant who is unable to qualify for a mor tgage loan with at least three (3) commercial lenders und er the program set out in this Article is eligible for a G HC loan under 4103(c) of this Title and may qualify

is unable to qualify for a mor tgage loan with at least three (3) commercial lenders und er the program set out in this Article is eligible for a G HC loan under 4103(c) of this Title and may qualify for an Intere st Free Loan under this Article; provided, such applicant falls within the income guidelines of this Article. (b) The Interest Free Loan levels in Schedules I, I I and III of § 4207 shall correspond with the prevailing GHC rate and not the index rate as is the case with qualified Financ ial Institutions. § 4214. Foreclosure Protection Fund. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 26 There is hereby created the Foreclosure Protection Fund (the 'Fund'). The Fund shall be used by GHC to prot ect the interest of the Trust as the second mortgagee and s hall be used for the purpose of paying off the first mortgage on foreclosure and may also be used to pay any obligation of the C orporation pursuant to any risk sharing arrangement entered in to pursuant to § 4602. SOURCE : Amended by P.L. 24-81:9. § 4215. Mortgage Insurance or Guarantee. If it is necessary to encourage participation in th e program by Financial Institutions, the Corporation may

uant to § 4602. SOURCE : Amended by P.L. 24-81:9. § 4215. Mortgage Insurance or Guarantee. If it is necessary to encourage participation in th e program by Financial Institutions, the Corporation may ente r cooperative programs to obtain mortgage risk insurance or guara ntee loans against losses as a result of default and subsequen t foreclosure. ---------- ARTICLE 3 GOVERNMENT PARTICIPATION LOAN ACT SOURCE : This entire Article was added by P.L. 21-99:3. § 4300. Definitions. § 4301. Loans by the Corporation. § 4302. Insurance of Home. § 4303. Loans Made Under the This Program. § 4304. Interest Free Loan Program. § 4305. Government Participation. § 4306. Limitations on Interest Free Loans. § 4307. Interest Free Loan Schedules. § 4308. Termination of Interest Free Loan. § 4309. Funding From the Trust. § 4310. Use of Trust Proceeds for Interest Free Loa ns. § 4311. Repayment of Interest Free Loan. § 4312. Qualifications for Interest Free Loans. § 4300. Definitions. The definitions set out in § 4200 of Article 2 of t his Chapter shall apply to this Article 3. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 27 § 4301. Loans by the Corporation.

he definitions set out in § 4200 of Article 2 of t his Chapter shall apply to this Article 3. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 27 § 4301. Loans by the Corporation. GHC is authorized to make loans under this Article to low and moderate income families for the purchase or co nstruction of their residential Homes. All loans made by GHC shal l be subject to the following limitation: (a) The maximum Loan to Value Ratio shall not exceed Ninety-Five percent (95%) of the appraised v alue of the Home. § 4302. Insurance of Home. GHC shall require that each mortgagor maintain adeq uate property insurance coverage for a Home financed und er this Article. § 4303. Loans Made Under the This Program. First mortgage loans made by GHC under this program shall bear interest at the prevailing GHC rate. § 4304. Interest Free Loan Program. The Government shall provide Interest Free Loans to qualified individuals or families as second mortgag e loans subordinated to first mortgage loans made by GHC fo r the purchase or construction of a Home. Interest Free L oans shall be available to each family or individual based on the family’s or individual’s adjusted income

irst mortgage loans made by GHC fo r the purchase or construction of a Home. Interest Free L oans shall be available to each family or individual based on the family’s or individual’s adjusted income which shall be determi ned at the time of application and in accordance with the sche dule set out in § 4307 of this Article. All loans so made shall be of such sound value, including credit-worthiness or so secu red as to reasonably assure repayment. § 4305. Government Participation. The Government shall provide Interest Free Loans to qualified families or individuals. The Interest Fre e Loans shall be given in accordance to the schedule set forth in § 4307 within income limits and maximum loan amounts as follows: (a) For families or individuals with adjusted incom es of up to Twenty Six Thousand One Hundred Sixty Doll ars COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 28 ($26,160), the Government’s participation shall be determined under Schedule I of § 4307. (b) For families or individuals with adjusted incom es of more than Twenty Six Thousand One Hundred Sixty Dollars ($26,160) up to Twenty Nine Thousand Four Hundred Thirty Dollars ($29, § 430), the

7. (b) For families or individuals with adjusted incom es of more than Twenty Six Thousand One Hundred Sixty Dollars ($26,160) up to Twenty Nine Thousand Four Hundred Thirty Dollars ($29, § 430), the Government ’s participation shall be determined under Schedule II of § 4307. (c) For families or individuals with adjusted incom es of more than Twenty Nine Thousand Four Hundred Thir ty Dollars ($29, § 430) up to Thirty Two Thousand Seve n Hundred Dollars ($32,700), the Government’s partici pation shall be determined under Schedule III of § 4307. (d) For families or individuals with adjusted incom es of more than Thirty Two Thousand Seven Hundred Doll ars ($32,700) up to Thirty Nine Thousand Two Hundred Fo rty Dollars ($39,240), the Government’s participation s hall be determined under Schedule IV of § 4307. Income limits contained herein shall be adjusted by GHC as needed. § 4306. Limitations on Interest Free Loans. An Interest Free Loan shall not exceed Fifty Thousa nd Dollars ($50,000). The total Loan to Value Ratio of the combined GHC loan and the Interest Free Loan shall not exceed Ninety-Five Percent (95%) of the appraised value of the Home. § 4307.

y Thousa nd Dollars ($50,000). The total Loan to Value Ratio of the combined GHC loan and the Interest Free Loan shall not exceed Ninety-Five Percent (95%) of the appraised value of the Home. § 4307. Interest Free Loan Schedules. There are hereby established the following Interest Free Loan Schedules to which this Article applies. The m aximum loan amount shall depend in each instance on the pr evailing GHC Rate at the time a loan is made. (a) Interest Free Loan Schedule I. GHC Rate Maximum Interest Free Loan 12.00% or more 50.00% of The Appraised Value 10.00% to 11.99% 48.00% of The Appraised Value Less than 10.00% 46.00% of The Appraised Value COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 29 (b) Interest Free Loan Schedule II. GHC Rate Maximum Interest Free Loan 12.00% or more 48.00% of The Appraised Value 10.00% to 11.99% 46.00% of The Appraised Value Less than 10.00% 44.00% of The Appraised Value (c) Interest Free Loan Schedule III. GHC Rate Maximum Interest Free Loan 12.00% or more 46.00% of The Appraised Value 10.00% to 11.99% 44.00% of The Appraised Value Less than 10.00% 42.00% of The Appraised Value (d) Interest Free Loan Schedule IV.

ximum Interest Free Loan 12.00% or more 46.00% of The Appraised Value 10.00% to 11.99% 44.00% of The Appraised Value Less than 10.00% 42.00% of The Appraised Value (d) Interest Free Loan Schedule IV. GHC Rate Maximum Interest Free Loan 12.00% or more 44.00% of The Appraised Value 10.00% to 11.99% 42.00% of The Appraised Value Less than 10.00% 40.00% of The Appraised Value 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 4308. Termination of Interest Free Loan. The mortgagor must pay off the Interest Free Loan i f, during the term of the loan, the Home secured by th e mortgage for which the loan was granted is: (a) transferred or conveyed; (b) sold; (c) occupied exclusively by individuals other than the mortgagor (s) or their children; or (d) leased before five (5) years of actual occupanc y by the mortgagor. If the Home is leased prior thereto then the Interest Free Loan shall be reamortized at the rate of the GHC loan as an interest bearing loan and such inter est shall be remitted to GHC for deposit in the Community Affordable Housing Action Trust (the 'Trust').

an shall be reamortized at the rate of the GHC loan as an interest bearing loan and such inter est shall be remitted to GHC for deposit in the Community Affordable Housing Action Trust (the 'Trust'). Exce ptions to this provision may be afforded by GHC under rule s and regulations adopted in accordance with the provisio ns of the Administrative Adjudication Law. § 4309. Funding From the Trust. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 30 All Interest Free Loans under this Article shall be funded by the Trust established in § 4209 of Article 2 of thi s Chapter. § 4310. Use of Trust Proceeds for Interest Free Loa ns. Proceeds from the Trust shall be for Interest Free Loans in participation with an underlying mortgage by GHC. T he Interest Free Loans shall be subordinate to the underlying f irst mortgage by GHC but shall not be subordinate to any other de bt or debenture. § 4311. Repayment of Interest Free Loan. The Interest Free Loan shall be repaid monthly by t he mortgagor in an amount equal to the loan amount div ided by the number of monthly periods until maturity.

4311. Repayment of Interest Free Loan. The Interest Free Loan shall be repaid monthly by t he mortgagor in an amount equal to the loan amount div ided by the number of monthly periods until maturity. The prior ity for payment of this loan in the event the loan is in ar rears is after GHC’s requirements and before other Trust fund obli gations. GHC may establish and charge the mortgagor late fee s for all Interest Free Loans that are paid after the grace p eriod. § 4312. Qualifications for Interest Free Loans. To qualify for the Interest Free Loan program, an i ndividual 'or family must show evidence of rejection from thr ee (3) commercial mortgage lending institutions and be una ble to qualify on the basis of income for GHC’s regular le nding program. Applicants under this section are not elig ible for the six percent (6%) loan program authorized by Public Law 20-210. ---------- ARTICLE 4 GUAM HOUSING MORTGAGE INSURANCE CORPORATION SOURCE : This entire Chapter was added by P.L. 21-99:6. § 4400. Definitions. § 4401. Creation. § 4402. Qualifications. § 4403. Government Loan Guarantee Fund. § 4404. Operations. § 4405. Exemption From Regulations.

ntire Chapter was added by P.L. 21-99:6. § 4400. Definitions. § 4401. Creation. § 4402. Qualifications. § 4403. Government Loan Guarantee Fund. § 4404. Operations. § 4405. Exemption From Regulations. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 31 § 4400. Definitions. The definitions set out in § 4200, Article 2 of thi s Chapter shall apply to this Article 4. § 4401. Creation. GHC is hereby authorized to create the Guam Housing Corporation Mortgage Insurance Corporation ( GHMIC ). GHMIC shall be a public corporation owned in its en tirety by GHC. The Board shall be the board of directors of G HMIC. The Board shall create by-laws and promulgate rules and regulations for GHMIC under the provisions of the Administrativ e Adjudication Law. § 4402. Qualifications. To qualify for the program set out in this Article, the applicant must be a qualified resident and First-ti me Home Owner as defined in this Chapter. Applicants must d emonstrate that they will not be able to obtain first mortgage loans from mortgage lending institutions on the basis of not h aving sufficient assets to use as a Down Payment for the loans.

ts must d emonstrate that they will not be able to obtain first mortgage loans from mortgage lending institutions on the basis of not h aving sufficient assets to use as a Down Payment for the loans. Those applicants that demonstrate that they will not be a ble to obtain a first mortgage loan but can be approved by a mortga ge lending institution if they obtain a mortgage loan guarante e from GHC are eligible for a loan guarantee under this Articl e; provided, that the mortgage lending institution approves the appli cant contingent upon the approval of a loan guarantee fr om GHC. § 4403. Government Loan Guarantee Fund. There is hereby created a Government Loan Guarantee Fund ( GLGF ). GLGF shall be managed by GHC. Proceeds from GLGF shall be used for the purpose of capitalizing GHMIC. All investment income from GLGF shall remain the proper ty of GHMIC. § 4404. Operations. GHMIC shall be operated as follows: (a) Separate Records Required. GHC shall keep separate records and financial statements and shall in no COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 32 way consolidate the finances of GHMIC with its own finances. (b) Limitations of Program Finances.

al statements and shall in no COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 32 way consolidate the finances of GHMIC with its own finances. (b) Limitations of Program Finances. Administrative support services for GHMIC shall be provided by GHC ; provided, however, that GHMIC, from its operating revenues, shall reimburse GHC for all the cost of administrative support services, inclusive of perso nnel services and cost of materials and supplies. (c) Limits of Liability. GHC shall not be held liab le for policy claims against GHMIC. In the event that the policy claims rate exceeds the projection of the actuarial ly determined funding requirements so as to jeopardize the solvency of the program established in this Article , GHMIC shall request additional appropriations to GLGF. § 4405. Exemption From Regulations. GHMIC shall be exempt from all laws and regulations which give the Director of Revenue and Taxation, as the Commissioner of Banking and Insurance, control over the private insurance industry. Private mortgage insure rs who reinsure policies underwritten by GHMIC shall also be exempt from regulation by the Commissioner of Banking and Insurance; provided,

ver the private insurance industry. Private mortgage insure rs who reinsure policies underwritten by GHMIC shall also be exempt from regulation by the Commissioner of Banking and Insurance; provided, that such insurers are regulated by one o r more regulatory bodies in any state of the United States . 2011 NOTE: Reference to the 'Insurance Commissioner' changed to the 'Commissioner of Banking and Insurance' pursuan t to P.L. 27- 088:10 (May 6, 2004). ---------- ARTICLE 5 REQUIREMENTS AND REGULATIONS SOURCE : This entire Article was added by P.L. 21-99:8. § 4500. Definitions. § 4501. Residency Requirements. § 4502. Assistance Limitations. § 4503. Development of Rules and Regulations. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 33 § 4504. Representation by Public Defender Service Corporation. § 4505. Performance and Payment Bonds. § 4506. Prepayment of Loan. § 4507. No Release of Fund until Conditions Met. § 4500. Definitions. The definitions set out in § 4200 of Article 2 of t his Chapter shall apply to this Article 5. § 4501. Residency Requirements. All applicants for the programs set out in Articles 2, 3 and 4 of this Chapter shall be U.S.

out in § 4200 of Article 2 of t his Chapter shall apply to this Article 5. § 4501. Residency Requirements. All applicants for the programs set out in Articles 2, 3 and 4 of this Chapter shall be U.S. citizens or permanent resident aliens who have been residents of Guam for a period of not less than five (5) years immediately preceding the date of ap plication. An applicant who has not been a five (5) year resident for the period immediately preceding the date of application may q ualify for these programs if the applicant’s residency change was due to active service in the United States Armed Forces or for attendance on a full-time basis at an institution o f higher education; provided, that the applicant was a five (5) year resident for the period immediately preceding the s tart of such active duty or education. § 4502. Assistance Limitations. As the purpose of the programs contained in Article s 2, 3 and 4 of this Chapter is to assist families and ind ividuals who are lacking the necessary resources for the Down Paymen t or loan qualification requirements, the qualifying amount o f the assistance under such programs shall be directly re duced to the extent that the applicant

necessary resources for the Down Paymen t or loan qualification requirements, the qualifying amount o f the assistance under such programs shall be directly re duced to the extent that the applicant has available resources t o use as a Down Payment or to qualify for the mortgage loan. § 4503. Development of Rules and Regulations. GHC shall develop rules and regulations for the pro grams set out in Articles 2, 3 and 4 of this Chapter unde r the provisions of the Administrative Adjudication Law. § 4504. Representation by Public Defender Service Corporation. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 34 The Public Defender Service Corporation is hereby authorized to represent, at no cost notwithstanding the Home buyer’s income, any Home buyer under any programs s et out in this Chapter in any dispute with the Home builder, real estate broker, title insurance company, developer, contrac tor, sub- contractor, material supplier, bonding company, or their agents and employees over a breach of contract, breach of warranty, tort, fraud, or misrepresentation arising out of th e Home purchase, its financing, or its construction. § 4505.

company, or their agents and employees over a breach of contract, breach of warranty, tort, fraud, or misrepresentation arising out of th e Home purchase, its financing, or its construction. § 4505. Performance and Payment Bonds. Contracts for the construction of Homes under the p rograms authorized by this Chapter shall require the builde r to post one hundred percent (100%) performance and payment bond s, or the equivalent in securities, the beneficiaries of whic h shall be the Home Owner, the Financial Institution holding the f irst mortgage on the Home, and the Government, as the case requir es. § 4506. Prepayment of Loan. Any prepayment of a loan, which prepayment shall be at the option of the borrower, under any of the programs a uthorized by this Chapter, shall be applied to the first or seco nd mortgage, at the option of the borrower. § 4507. No Release of Fund until Conditions Met. No funds appropriated towards the program establish ed in this Chapter shall be released by GHC unless one (1 ) of the following conditions are satisfied: (a) Local Financial Institutions submit in writing to GHC their intention to participate in one (1) or mo re of the programs; or (b) Any

GHC unless one (1 ) of the following conditions are satisfied: (a) Local Financial Institutions submit in writing to GHC their intention to participate in one (1) or mo re of the programs; or (b) Any Federal Housing Assistance Agency that may participate in one (1) or more of the programs, exp ress its intention, in writing, to underwrite or purchase th e local Financial Institution’s participation in such progr am. 2015 NOTE: Subsection designations were altered to adhere to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 35 ---------- ARTICLE 6 HOME FINANCING ACT § 4601. Definitions. § 4602. Authorization of Home Financing Program. § 4601. Definitions. As used in this Article: (a) Eligible mortgagors means persons and families eligible under the criteria of §143 of the Internal Revenue Code of 1986 to receive mortgage loans financed wit h the proceeds of bonds the interest on which is excludab le from gross income for Federal income tax purposes, or if such section is no longer effective or is materially mod ified, such criteria as may be established by the Board to furt

which is excludab le from gross income for Federal income tax purposes, or if such section is no longer effective or is materially mod ified, such criteria as may be established by the Board to furt her the purposes of this Article. (b) Home means any single family detached home, townhouse, condominium unit or two, three and four family dwelling that is to be purchased or improved by an eligible mortgagor and that is located in Guam. (c) Home mortgage means an interest-bearing loan that is made to an eligible mortgagor, which financ es the purchase or improvement of a home, is secured by a mortgage, and has an original principal amount not greater than the then current limit for mortgage loans for homes in Guam under the United States Department of Housing and Urban Development mortgage insurance programs authorized under §§ 203(b) or 203(k) of the Nationa l Housing Act, or if such programs are no longer in o peration to insure new mortgages, such limit as may be estab lished by the Board to further the purposes of this Articl e. (d) Lending institution means any public or private entity or governmental agency approved by the Housi ng Corporation and authorized by law to make or

Board to further the purposes of this Articl e. (d) Lending institution means any public or private entity or governmental agency approved by the Housi ng Corporation and authorized by law to make or partic ipate in making residential loans in Guam. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 36 (e) Mortgage means a mortgage, deed of trust or other security instrument which shall constitute a lien o n real property in fee simple or on a leasehold under a le ase having a remaining term of a duration necessary to protect the interest of the mortgagee thereunder, as determ ined by the Housing Corporation. (f) Mortgage-backed security means any security, whether guaranteed or not, backed by one (1) or mor e home mortgages or pools consisting of home mortgages. SOURCE : Added by P.L. 24-81:10. 2015 NOTE: Subsection designations were added to adhere to t he Compiler’s general codification scheme pursuant to the authority granted by 1 GCA § 1606. § 4602. Authorization of Home Financing Program. In addition to the powers of the Housing Corporatio n set forth elsewhere, in this Chapter, and notwithstandi ng any restrictions, requirements or limitations set forth in

of Home Financing Program. In addition to the powers of the Housing Corporatio n set forth elsewhere, in this Chapter, and notwithstandi ng any restrictions, requirements or limitations set forth in Articles 1, 2, 3, 4 and 5 of this Chapter, the Housing Corporation shall have the power to make, purchase, make commitments to pu rchase, and take assignments from lending institutions, of home mortgages and mortgage-backed securities, under ter ms and conditions specified by the Housing Corporation. Th e Housing Corporation may obtain or require mortgagors to obt ain mortgage insurance on home mortgages, and may enter into risk- sharing agreements with the providers of the mortga ge insurance upon terms and conditions determined by the Housing Corporation. Any obligations of the Housing Corpora tion to a mortgage insurer under a risk-sharing agreement sha ll be payable only out of the assets of the Housing Corporation t hat are not pledged to secure other obligations of the Housing Corporation. SOURCE : Added by P.L. 24-81:10. ---------- ARTICLE 7 FIRST -TIME HOMEOWNER ASSISTANCE PROGRAM ACT COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

ed to secure other obligations of the Housing Corporation. SOURCE : Added by P.L. 24-81:10. ---------- ARTICLE 7 FIRST -TIME HOMEOWNER ASSISTANCE PROGRAM ACT COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 37 SOURCE : This article was added by P.L. 24-180:3 as Articl e 6. Amended by P.L. 29-002:VI:28 (May 18, 2007) the nam e, Gross Receipts Tax, changed to Business Privilege Tax, ef fective July 17, 2007. Repealed and reenacted by P.L. 31-166:2 (Jan . 4, 2012). § 4701. Establishment and Title. § 4702. Definitions. § 4703. First-time Homeowner Assistance Program. § 4704. Application for First-time Homeowner Assist ance. § 4705. Administration. § 4706. Funding. § 4701. Establishment and Title. The Guam Housing Corporation (GHC) shall develop, implement, and administer the First-time Homeowner Assistance Program (Program) to provide assistance to first-time homeowners toward the purchase or construction of a home in accordance with this Act. § 4702. Definitions. For purposes of this Act, except as otherwise specifically provided, the following words and phrases, together with all of the common derivatives thereof (i.e.

nce with this Act. § 4702. Definitions. For purposes of this Act, except as otherwise specifically provided, the following words and phrases, together with all of the common derivatives thereof (i.e. verbs, plurals , gender, etc.), shall have the meaning ascribed to them in this Section. (a) Accredited means as recognized by the Council for Higher Education Administration (CHEA); for vocatio nal schools, an accrediting agency as recognized by the United States Department of Education, such as the Accredi ting Commission of Career Schools and Colleges (ACCSC); (b) Applicant means any individual or family who is applying for First-time Homeowner Relief; (c) Commencement date of an eligible transaction: see § 4703(e); (d) Completed for completion of an eligible transaction: see § 4703(f); (e) Comprehensive home building contract means a contract under which a builder undertakes to build a home on land, from the inception of the building work to the point COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 38 where the home is ready for occupation; and if, for any reason, the work to be carried out under such a con tract is not completed, includes any further contract

IES CH. 4 GUAM HOUSING CORPORATION 38 where the home is ready for occupation; and if, for any reason, the work to be carried out under such a con tract is not completed, includes any further contract under which the work is to be completed; (f) Construction cost means the final and total amount paid, or to be paid, by a homeowner for the constru ction of a home, and shall include all monies paid for labor and material, contractor’s fees, fees of an architect a nd engineer, survey costs, utility hook-up costs, broker’s commi ssions, and attorney’s fees; (g) Down payment means the equity requirements of the homeowner needed to initiate the mortgage for t he purchase or construction of a home. It shall include points and fees charged by the financial institution; (h) Eligibility criteria : see § 4703(b); (i) Eligible transaction: see § 4703(d); (j) Family means two (2) or more persons related by blood, adoption, or marriage, living together in a household; (k) First-time Homeowner means any individual or family who has not had any ownership interest in a home within the five (5) years preceding the commencemen t date of an eligible transaction for which the First-time Homeowner is

s any individual or family who has not had any ownership interest in a home within the five (5) years preceding the commencemen t date of an eligible transaction for which the First-time Homeowner is applying; (l) Financial institution means any financial institution authorized to make mortgage loans on Guam, as appro ved by the GHC; (m) Full-time basis means the minimum of twelve (12) or more credit hours per semester or quarter equiva lent to twelve (12) semester hours, for degree-seeking undergraduate or graduate studies; for vocational s chools, the minimum credits or hours or its equivalent per, semester or quarter or equivalent term, necessary for the sc hool to certify full-time status; (n) Home means a permanent, single family dwelling, or single family condominium or town house, but does not COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 39 include semi-permanent dwellings made of wood and t in, and is to be physically occupied by the homeowner o n a regular and continuous basis and in which the homeo wner intends to exclusively reside; (o) Natural Person means a human being.

wood and t in, and is to be physically occupied by the homeowner o n a regular and continuous basis and in which the homeo wner intends to exclusively reside; (o) Natural Person means a human being. (p) Land costs means costs to purchase land toward the construction of a home; (q) Off-island institution of higher education means a United States Department of Education accredited vocational school, or college or university not physically located in Guam; (r) Occupancy requirement means the requirement that an applicant for First-time Homeowner Assistance mu st occupy the home to which the application relates as the applicant’s principal place of residence within six (6) months after the completion of the eligible transac tion; (s) Owner means having absolute dominion (as defined in 21 GCA, Chapter 1, § 1211) over land or a home; (t) Assistance means the financial assistance granted to First-time Homeowners established under this Act; (u) Spouse is the person who is legally married to the applicant. § 4703. First-time Homeowner Assistance Program. (a) Entitlement to Assistance. (1) Assistance is payable on an application under t his Act if: (A) the applicant complies with the

d to the applicant. § 4703. First-time Homeowner Assistance Program. (a) Entitlement to Assistance. (1) Assistance is payable on an application under t his Act if: (A) the applicant complies with the eligibility criteria; and (B) the transaction for which the Assistance is sought is an eligible transaction. (2) Only one (1) First-time Homeowner Assistance is payable for the same eligible transaction. (b) Eligibility Criteria for Applicants. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 40 (1) An applicant for first-time homeowner assistanc e must be a natural person. (2) Applicant must be a United States citizen or permanent resident alien who is a Resident of Guam. However, unless advised otherwise by the Attorney G eneral of Guam, Guam Housing Corporation shall satisfy dem and by U.S. citizens before considering permanent resid ent aliens who are residents of Guam for the program. (A) Subject to Subsection (B), an applicant for first-time homeowner assistance must be a United States citizen or permanent resident alien who has been a resident of Guam for a period of not less than five (5) years immediately preceding the commencement date of the eligible

ce must be a United States citizen or permanent resident alien who has been a resident of Guam for a period of not less than five (5) years immediately preceding the commencement date of the eligible transaction for which the applicant is applying; (B ) An applicant who has not been a five (5) year resident for the period immediately preceding the commencement date of the eligible transaction for which the applicant is applying, may qualify for th ese programs if the applicant’s residency change was du e to active service in the United States Armed Forces or for attendance, on a full-time basis, at an off-isl and institution of higher education; provided, that the applicant was a five (5) year resident for the peri od immediately preceding the start of such active duty or education. (3) Applicant must certify, under penalty of perjur y, of being a First-time Homeowner in accordance with § 4 702 of this Act, and must receive a Certificate of First-t ime Homeownership. (4) Applicant must receive clearance from the Direc tor of Revenue & Taxation that all income tax returns, business privilege tax returns and withholding tax returns w hich are due from the applicant have been filed

st receive clearance from the Direc tor of Revenue & Taxation that all income tax returns, business privilege tax returns and withholding tax returns w hich are due from the applicant have been filed (or an exten sion has been approved or granted thereon by the Director of Revenue & Taxation, which extension has not expired ), and that all taxes thereon have been paid or arrangemen ts have COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 41 been made with the Director for payment thereon and such arrangements are current. (5) Applicant must attend and complete a home ownership education program and/or workshop or othe r similar program, as approved or provided by the GHC . (6) Applicant or (applicant’s spouse) must not have received earlier assistance under this Program: (A) Subject to Subsection (B), an applicant is ineligible if: (i) the applicant or the applicant’s spouse has been a party to an earlier application under this Act; and (ii) assistance was paid on the application. (B) An applicant is not ineligible if the assistanc e was paid but later paid back to the GHC under the conditions on which the assistance was made, unless payment back to the GHC was

he application. (B) An applicant is not ineligible if the assistanc e was paid but later paid back to the GHC under the conditions on which the assistance was made, unless payment back to the GHC was due to fraud or other illegal acts. (c) Occupancy Requirement. Applicant must occupy t he home to which the application relates as the applic ant’s principal place of residence within six (6) months after comp letion of the eligible transaction. Payment of Assistance shall be paid pursuant to § 4705(c) of this Act. (d) Eligible Transactions. An eligible transaction is: (1) a contract made for the purchase of a home in Guam not to exceed Three Hundred Seventy-five Thous and Dollars ($375,000), and shall not include down paym ent and closing costs; (2) a comprehensive home building contract made by the owner of land in Guam, or a person who will on completion of the contract be the owner of land in Guam, to have a home built on the land not to exceed Three H undred Seventy-five Thousand Dollars ($375,000), and shall not include down payment, land, and closing costs; COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

a home built on the land not to exceed Three H undred Seventy-five Thousand Dollars ($375,000), and shall not include down payment, land, and closing costs; COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 42 (3) an eligible transaction shall include all the money paid, or to be paid, by a homeowner or the construc tion cost, inclusive of the land value, for the home. (e) Commencement Date. The commencement date of an eligible transaction is: (1) in the case of an applicant purchasing a home, the date when the contract is signed between the buyer and seller; or (2) in the case of an applicant building a home, th e date when the construction contract for which the home i s to be built is signed. (f) Eligible Transaction. An eligible transaction i s completed when: (1) in the case of an applicant purchasing a home: (A) the purchaser becomes entitled to possession of the home under the contract; and (B) if the purchaser is to obtain a registered titl e to the land on which the home is situated, the necessa ry steps to obtain registration of the purchaser’s tit le have been taken.

e contract; and (B) if the purchaser is to obtain a registered titl e to the land on which the home is situated, the necessa ry steps to obtain registration of the purchaser’s tit le have been taken. (2) in the case of an applicant building a home, th e building is ready for occupation as a place of resi dence as identified by the issuance of a certificate of occu pancy by the Guam Department of Public Works, or the executi on of the contract for the purchase of a home, whichever occurs first. (g) Eligible Transaction Amount Adjustment. The Boa rd shall from time to time, conduct a study to determi ne the cost of the median price of housing on Guam, and shall by r esolution adopted by the Board increase or decrease the amoun t of the eligible transaction to reflect changes in market p rice. SOURCE: Added by P.L. 24-180:3 as 12 GCA § 4603, codified by the Compiler as § 4703. Repealed and reenacted by P.L. 31-166:2 (Jan. 4, 2012). Subsection (d)(1) and (2) amended by P.L. 34 -100:1 (May 16, 2018); and P.L. 36-029:1 (June 11, 2021), effective retroactively to Jan. 1, 2020. Subsection (g) amended by P.L. 36-029:2 (J une 11, 2021), COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

-100:1 (May 16, 2018); and P.L. 36-029:1 (June 11, 2021), effective retroactively to Jan. 1, 2020. Subsection (g) amended by P.L. 36-029:2 (J une 11, 2021), COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 43 effective retroactively to Jan. 1, 2020. 2018 NOTE: Subitem designations altered/added in subsection ( a) pursuant to 1 GCA § 1606. § 4704. Application for First-time Homeowner Assist ance. An application for the First-time Homeowner Assista nce is to be made to the GHC. An application must be in a form approved by the GHC, and must contain the following : (a) whether the applicant intends to purchase or construct a home; (b) the legal description of the property intended for the home; (c) if the applicant intends to construct a home, applicant must submit the following: (1) a certificate of title, policy of title insuran ce, warranty deed or other evidence of fee simple title , or lease to a Chamorro Land Trust lot, to the unimproved land intended for construction; and (2) construction plans and specifications certified by a licensed professional engineer or architect authorized to practice on Guam by the Professional Engineers, Architects, and Land

nstruction; and (2) construction plans and specifications certified by a licensed professional engineer or architect authorized to practice on Guam by the Professional Engineers, Architects, and Land Surveyors Board of Guam; and (3) a completed construction contract with construction cost of the home to be built. (d) If the applicant intends to purchase a home, applicant must submit the following: (1) an executed contract for the purchase of a home with selling price; and (2) certificate of title, warranty deed, policy of title insurance or other evidence of ownership by t he intended seller. (e) An applicant must provide the GHC with any further information the GHC requires to decide on t he application. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 44 (f) Information provided by an applicant in or in relation to an application must, if the GHC so requ ires, be verified and supported by other evidence required b y the GHC. (g) An application can only be made on or after the commencement date of the eligible transaction to wh ich the application relates and before the eligible transac tion is completed.

red b y the GHC. (g) An application can only be made on or after the commencement date of the eligible transaction to wh ich the application relates and before the eligible transac tion is completed. (h) An applicant may, with the GHC’s consent, amend an application. (i) Any applicant who intentionally supplies false information on the application for assistance under this Act shall automatically be disqualified from the First-time Homeowner Assistance Program. In the event that fun ds are disbursed on behalf of such an applicant, the appli cant shall be assessed a penalty of ten percent (10%), in addi tion to repaying the amount disbursed by the GHC. The funds that were disbursed on behalf of such an applicant that are repaid shall be deposited back into the First-time Homeowner Assistance Fund. The funds from the ten percent (10%) penalty shall be deposited into the GHC’s bank account(s) for operational uses. (j) In the case where an applicant is denied assistance, the GHC shall provide the applicant a written denial notice within thirty (30) days of the submis sion of the application. (k) Appeal.

l uses. (j) In the case where an applicant is denied assistance, the GHC shall provide the applicant a written denial notice within thirty (30) days of the submis sion of the application. (k) Appeal. An applicant may appeal a denial of application within thirty (30) days of receipt of t he written denial notice. The applicant shall submit to the GHC Board appropriate documentation disputing the basis of th e denial. The Board shall render a decision within fifteen (15) days after receipt of an appeal, or at the next meeting of the Board following the denial, whichever is sooner. Th e decision of the Board shall be final. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 45 § 4705. Administration. (a) Certificate of First-time Homeownership. GHC shall issue a Certificate of First-time Homeownership (Ce rtificate) to an applicant if the applicant meets all the eligibi lity requirements set forth in this Article. (1) This Certificate shall not be transferable, except between joint holders of an original Certificate, a nd it shall not be transferred to a new and separate home.

ements set forth in this Article. (1) This Certificate shall not be transferable, except between joint holders of an original Certificate, a nd it shall not be transferred to a new and separate home. (2) In case of the death of the holder of an origin al Certificate, the Certificate shall terminate, unless the home covered by the Certificate becomes the home of the decedent’s heirs, and they acquire the title to the property within two (2) years of the death. (b) Amount of Assistance. The amount of the First-t ime Homeowner Assistance is up to Ten Thousand Dollars ($10,000) of the eligible transaction. (c) Payment of Assistance. First-time Homeowner Assistance shall be paid by electronic funds transfer, by check, or in any other way the GHC finds appropriate. (1) First-time Homeowner Assistance shall be paid to the financial institution authorized by the GHC and selected by the applicant to which a mortgage loan or constr uction loan, or both, has been approved for the applicant toward his or her eligible transaction. (2) The GHC shall develop and maintain, on a semi- annual basis, a list of authorized financial instit utions as identified in this Section, and shall be made

toward his or her eligible transaction. (2) The GHC shall develop and maintain, on a semi- annual basis, a list of authorized financial instit utions as identified in this Section, and shall be made readily accessible to the public. (d) Payment in Anticipation of Compliance with Occupancy Requirement. (1) The GHC may authorize payment of First-time Homeowner Assistance in anticipation of compliance with the occupancy requirement. If the occupancy require ment is not complied with, the applicant must, within fifteen (15) days after the relevant date, give written notice o f that fact COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 46 to the GHC and repay the amount of assistance. (2) The relevant date is the earlier of the followi ng: (A) the end of the period allowed for compliance with the occupancy requirement; or (B) the date on which it first becomes apparent that the occupancy requirement will not be complied with during the period allowed for compliance. (3) Where the first-time homeowner fails to comply with the occupancy conditions and does not repay the amount of assistance, the GHC may approve, by resol ution, a Memorandum of Understanding between

3) Where the first-time homeowner fails to comply with the occupancy conditions and does not repay the amount of assistance, the GHC may approve, by resol ution, a Memorandum of Understanding between the GHC and t he Department of Revenue and Taxation to garnish the i ncome tax refunds of recipients of the First-time Homeown ership Assistance. The GHC shall adopt a policy to govern the referral of such tax refund garnishment requests to the Department of Revenue and Taxation. (e) Development of Rules and Regulations. Within n inety (90) days after enactment of this Act, the GHC shall adopt such rules and regulations as may be necessary to implem ent the provisions of this Act and Subsection (f) of § 4103 . (f) Repayment of Assistance. (1) A first-time homeowner shall repay to the First- time Homeowner Assistance Fund an amount equal to t he total assistance received by the homeowner with int erest at the rate of ten percent (10%) per annum if, within five (5) years after receipt of the assistance, the home is: (A) transferred or conveyed; (B) sold; or (C) occupied exclusively by any individual or individuals other than the homeowner or the homeowner’s children.

after receipt of the assistance, the home is: (A) transferred or conveyed; (B) sold; or (C) occupied exclusively by any individual or individuals other than the homeowner or the homeowner’s children. (2) The funds that were disbursed on behalf of such an applicant that are repaid shall be deposited back into the Housing Trust Fund. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 47 (3) The funds from the ten percent (10%) penalty shall be deposited into the GHC’s bank account(s) for ope rational uses. SOURCE: Added by P.L. 24-180:3 as 12 GCA § 4605, codified by the Compiler as § 4705. Repealed and reenacted by P.L. 31-166:2 (Jan. 4, 2012). Subsection (b) amended by P.L. 34-100:2 (May 216, 2018). 2018 NOTE: Subitem designations altered/added pursuant to the authority of 1 GCA § 1606. 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. § 4706. Funding. Funding for the First-time Homeowner Assistance Pro gram shall be provided through the Housing Trust Fund establis hed pursuant to § 41004 (a), Article 10, Chapter 4, Tit le 12 of the Guam Code Annotated.

ng for the First-time Homeowner Assistance Pro gram shall be provided through the Housing Trust Fund establis hed pursuant to § 41004 (a), Article 10, Chapter 4, Tit le 12 of the Guam Code Annotated. ---------- ARTICLE 8 MORTGAGE CREDIT CERTIFICATION PROGRAM SOURCE : This Chapter was added by P.L. 25-111:2. § 4801. Title. § 4802. Legislative Findings and Policy. § 4803. Definitions. § 4804. Mortgage Credit Program; Established. § 4805. Rules and Regulations. § 4806. Severability. § 4801. Title. This Act shall be cited and referred to as 'The Mortgage Credit Certificate Program Act of 2000.' § 4802. Legislative Findings and Policy. (a) In its continuing efforts to create incentives for first-time homeowners, it is the intent of I Liheslaturan Guåhan to create incentives for first-time homeowners to purchase th eir dream homes aimed at enhancing the general welfare of our residents, COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 48 while at the same time, give a much-needed boost to the construction industry. (b) In its diligence to assist first-time homeowner s, I Liheslaturan Guåhan finds that Congress, through the enactment of the 1984 Tax Reform Act,

e a much-needed boost to the construction industry. (b) In its diligence to assist first-time homeowner s, I Liheslaturan Guåhan finds that Congress, through the enactment of the 1984 Tax Reform Act, authorized a Mortgage C redit Certificate Program. More importantly, I Liheslaturan Guåhan finds that the purpose of the Mortgage Credit Certi ficate Program is to provide housing assistance to familie s of low and moderate income. I Liheslaturan Guåhan finds that the intent of the Mortgage Credit Certificate Program is to reduc e the amount of Federal income tax paid by the homeowner, thereb y giving him more available income to qualify for a mortgage loan and assistance with house payments. 2017 NOTE: Subsection designations added/altered pursuant to t he authority of 1 GCA § 1606. § 4803. Definitions. For purposes of this Article, the following words a nd phrases are defined to mean: (a) Eligibility means those persons meeting the following requirements: (1) the buyer’s household income must fall within a specified limit set aside by the Internal Revenue Service; (2) the mortgage loan must be a new loan, not a refinancing; and (3) the home must become the buyer’s principal

ld income must fall within a specified limit set aside by the Internal Revenue Service; (2) the mortgage loan must be a new loan, not a refinancing; and (3) the home must become the buyer’s principal residence within sixty (60) days of closing. (b) First time homebuyer means any individual or family who has not had any ownership interest in a residential dwelling within the five (5) years prec eding the date of application. A family or individual who ha s had an ownership interest in residential real property wit hin the five (5) year period preceding the date of applicat ion, but such interest was terminated by a decree of divorce or operation of law, does qualify as a first-time home owner. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 49 (c) Mortgage credit certificate means the method of providing housing assistance to eligible homebuyers authorized by Congress in the 1984 Tax Reform Act. (d) Recapture or recapture tax means a supplemental Federal income tax to which mortgage credit certifi cate recipients may be subject if they sell the house th ey purchased with mortgage credit certificate assistan ce within nine (9) years of the date of purchase.

tax to which mortgage credit certifi cate recipients may be subject if they sell the house th ey purchased with mortgage credit certificate assistan ce within nine (9) years of the date of purchase. (e) Tax credit means an entitlement authorizing the taxpayer to subtract the amount of credit from his Federal income tax. (f) Tax deduction means that amount subtracted from the adjusted gross income tax before calculating th e Federal income tax. 2015 NOTE: Subsection designations in (a) were altered to ad here to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4804. Mortgage Credit Program; Established. (a) Establishment. There is hereby established with in the Guam Housing Corporation (' Corporation' ) a Mortgage Credit Certificate Program (' Credit Program' ). The expectation of the Credit Program is to provide assistance to qualifie d and eligible first-time homeowners in obtaining an income tax cr edit. The Credit Program reduces the amount of taxes the hold er of the certificate would pay. The objective of the Credit Program is to assist a first time homebuyer qualify for a loan by allowing the lender to reduce the housing expense

ount of taxes the hold er of the certificate would pay. The objective of the Credit Program is to assist a first time homebuyer qualify for a loan by allowing the lender to reduce the housing expense ratio by the a mount of tax savings. (b) Mortgage Credit Certificate. The Corporation s hall issue to first time homebuyers a Mortgage Credit Ce rtificate ('Credit Certificate'). The purpose of the Credit Certificate is to provide housing assistance to eligible first time h omebuyers authorized by Congress in the 1984 Tax Reform Act. (1) Credit Against Taxes. The Mortgage Credit Certificate gives the homebuyer a Federal tax credi t each year the buyer keeps the same mortgage loan and liv es in COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 50 the same house. The qualified homebuyer who is awa rded a Mortgage Credit Certificate may take an annual cred it against their Federal income taxes. The credit is subtracted dollar for dollar from Federal income taxes due. (2) Median Income. (A) For households that are eighty percent (80%) of the area’s median income and below, the credit equal to twenty percent (20%) of the annual interes t paid on the homebuyer’s mortgage.

dian Income. (A) For households that are eighty percent (80%) of the area’s median income and below, the credit equal to twenty percent (20%) of the annual interes t paid on the homebuyer’s mortgage. (B) For households that are above eighty percent (80%) of the area’s median income and not exceeding the Mortgage Credit Certificate income limits, the credit is equal to fifteen percent (15%) of the ann ual interest paid on the homebuyer’s mortgage. (C) The remainder of the mortgage interest is taken as a deduction from gross income on the homebuyer’s income tax return in the usual manner which shall be paid directly to the financial insti tution as part of the down payment and/or closing costs, f or the purpose of reducing the first-time homeowner’s financial requirement to secure a mortgage loan. (3) Relief. The relief shall be available to each f amily or individual in addition to any other grants or lo ans that the family or individual may receive from the Corporati on or other agencies, in accordance with the provisions s et forth in this Article. 2017 NOTE: Subitem designations in (b) were added to adhere to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted

es, in accordance with the provisions s et forth in this Article. 2017 NOTE: Subitem designations in (b) were added to adhere to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4805. Rules, Regulations and Restrictions. The Corporation shall within forty-five (45) days u pon enactment promulgate the necessary rules and regula tions with regard to implementing the Mortgage Credit Certific ate Program and the Corporation’s participation with any financ ial institution, currently licensed and doing business on Guam. The rules shall include the Corporation’s requirements, including, but not COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 51 limited to, qualifying applicants for the mortgage credit certificate program. § 4806. Severability. If any provision of this Law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or app lications of this Law which can be given effect without the invalid p rovisions or application, and to this end the provisions of this Law are severable.

dity shall not affect other provisions or app lications of this Law which can be given effect without the invalid p rovisions or application, and to this end the provisions of this Law are severable. ---------- ARTICLE 9 LEASE -TO-OWN HOUSING PROGRAM SOURCE : This Article was added by P.L. 25-116:2 as 'Artic le 7'. The Compiler has renumbered this Article to 9 since both Articles 7 and 8 have been occupied. § 4901. Title. § 4902. Legislative Findings. § 4903. Legislative Policy. § 4904. Definitions. § 4905. Lease-to-Own Program; Establishment; Authorization to Participate. § 4906. Authorization to Acquire Mortgage Loans. § 4907. Lease-to-Own Contract. § 4908. Tenant-Purchaser Escrow Account. § 4909. Closing of Transfer of Title. § 4910. Rules, Regulations and Restrictions. § 4911. Severability. § 4901. Title. This Article shall be known and shall be cited as 'The Lease-to-Own Housing Program Act of 2000.' § 4902. Legislative Findings. (a) I Liheslaturan Guåhan finds that in 1997, Guam Housing Corporation announced a bid for the design, building COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 52 and financing of infrastructure requirements for La da Estates.

am Housing Corporation announced a bid for the design, building COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 52 and financing of infrastructure requirements for La da Estates. As a result, Maeda Pacific Corporation ('Maeda') th e selected bidder, was granted a contract to design, build and finance the project. The Guam Housing Corporation and Maeda ex ecuted a contract in the amount over Ten Million Dollars to fulfill the project’s scope of work. (b) Furthermore, I Liheslaturan Guåhan finds that Maeda agreed to the terms such that payment would be due from a developer who would finance both the outstanding co ntract with Maeda and the development of the units at Lada Esta tes. To date, Guam Housing Corporation has entertained seve ral bids, but is unable to secure any contract with a develop er. Also, I Liheslaturan Guåhan finds that the infrastructure project was due and payable on or before November 1998. (c) I Liheslaturan Guåhan also finds that while there have been several bid announcements, initiated by the Gu am Housing Corporation, for the construction of the Lada Estat es project which have been advertised in conformance with the procurement laws

have been several bid announcements, initiated by the Gu am Housing Corporation, for the construction of the Lada Estat es project which have been advertised in conformance with the procurement laws of Guam. Unfortunately, no bidder has been able to meet the required terms of the contract due to the provisions requiring substantial up front financial reimbursement to Maeda. As a result of this hindrance, Maeda has agreed to renegotiate some of the terms to allow for easier r epayment criteria. (d) More importantly, I Liheslaturan Guåhan in discussions with the Guam Housing Corporation and t he mortgage community, identified the key problems tha t adversely affected the eligibility of customers and clients t o participate in purchasing of not only the Lada Estates residential project, but also various single family housing development proj ects on Guam. Some of the problems are identified as: (1) most prospective clients have high debt to inco me ratios five (5) year short term debts; (2) most prospective clients are unable to meet the required closing cost and down payment for their fi rst-time home; and COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

os five (5) year short term debts; (2) most prospective clients are unable to meet the required closing cost and down payment for their fi rst-time home; and COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 53 (3) most prospective first-time homebuyers may need the lease-to-own housing program so that they may u tilize the lease term to re-establish their credit and thu s qualify for a typical residential loan at the time of escrow cl osing of the purchase. 2017 NOTE: Subsection designations were added/altered to adh ere to the Compiler’s alpha-numeric scheme pursuant to the authority granted by 1 GCA § 1606. 2015 NOTE: Subsection designations were altered to adhere to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4903. Legislative Policy. (a) I Liheslaturan Guåhan in its continuing effort to promote affordable housing programs for the people finds that for many individuals and families the primary obsta cle to homeownership is their inability to save money for the initial cost of buying a home, such as down payment and clo sing costs.

le finds that for many individuals and families the primary obsta cle to homeownership is their inability to save money for the initial cost of buying a home, such as down payment and clo sing costs. To effectuate additional housing programs, I Liheslaturan Guåhan in its wisdom wishes to hereby establish a 'Lease-to- Own Housing Program'. Said Program shall afford opportunities for the private and government sector to invest in affordable housing developments, particularly those that offer lease to own provisions with options to exercise pu rchase within three (3) to five (5) years. This would encourage public and private collaboration in the search for the suitabl e financing mechanism or mechanisms which could benefit the fam ilies who can afford to purchase homes given financial assist ance for closing costs and down payment. I Liheslaturan Guåhan wishes to encourage the participation of the private secto r working through the authority vested in the Guam Housing Co rporation through this Act. Furthermore, I Liheslaturan Guåhan recognizes the opportunity for certain lending inst itutions and lenders of capital to assist families in purchasing or building their first home on

rough this Act. Furthermore, I Liheslaturan Guåhan recognizes the opportunity for certain lending inst itutions and lenders of capital to assist families in purchasing or building their first home on their lot or purchasing homes a vailable in the market. I Liheslaturan Guåhan also wishes to recognize that the programs contained herein are Community Reinvestmen t Act qualified, and in conformance with various housing programs administered by the Guam Housing Corporation, parti cularly COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 54 those which can accommodate the concept of ' lease-to-own' residential units of various sorts. (b) I Liheslaturan Guåhan encourages the granting of any Guam Economic Development Authority also qualifying certificate benefits to the developers involved in the Lada Estates project, as well as other similar housing projects. In the case where a government entity is the developer, such be nefits may be passed on to the participating contractors provi ded that such incentive would decrease the overall unit cost of h ousing in the respective project.

ent entity is the developer, such be nefits may be passed on to the participating contractors provi ded that such incentive would decrease the overall unit cost of h ousing in the respective project. 2017 NOTE: Subsection designations were added to adhere to t he Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4904. Definitions. For purposes of this Act, the following words and p hrases are defined to mean: (a) ' Affordable housing unit' shall mean a single family dwelling unit inclusive of land, built in ac cordance with the Uniform Building Code or its successor cod es as adopted by Chapter 67 of Title 21, Guam Code Annota ted, and in consonance with the Guam zoning and subdivis ion laws whose selling price meets the criteria set for th in the Guam Economic Development Authority Rules and Regulations pertaining to 'affordable housing' adop ted pursuant to Public Law Number 24-266. (b) ' Corporation ' shall mean the Guam Housing Corporation created pursuant to § 4101 of Title 12 of the Guam Code Annotated. (c) ' Residence ' shall mean a single family home, a condominium housing unit or a housing unit owned by a cooperative housing

ation created pursuant to § 4101 of Title 12 of the Guam Code Annotated. (c) ' Residence ' shall mean a single family home, a condominium housing unit or a housing unit owned by a cooperative housing cooperation. (d) ' Seller ' shall mean the party to the lease-to-own contract who is the seller of the residence. (e) ' Tenant-Purchaser ' shall mean the prospective person who is a party to the lease-to-own contract. SOURCE : Subsection (a) amended by P.L. 30-199:21 (Sept. 2 1, 2010). COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 55 § 4905. Lease-to-Own Program; Establishment; Authorization to Participate. The Guam Housing Corporation ('Corporation') is her eby authorized to participate in lease-to-own programs described in this Act. The purpose of a lease-to-own program is to provide mortgage financing for a residence occupied as a pr imary residence by a prospective mortgagor pursuant to a lease-to-own contract with the owner of such property. The leas e-to-own contract shall provide for the eventual purchase by the resident of the residence and an interim lease of the reside nce prior to the closing of the purchase thereof. § 4906.

perty. The leas e-to-own contract shall provide for the eventual purchase by the resident of the residence and an interim lease of the reside nce prior to the closing of the purchase thereof. § 4906. Authorization to Acquire Mortgage Loans. The Corporation may contract to acquire and may acq uire a mortgage loan or loans made by a bank, or other fin ancial institution, to a seller who has entered a lease-to -own contract with an eligible Tenant-Purchaser for the property which is the subject of and security for such mortgage loan. § 4907. Lease-to-Own Contract. The Corporation is empowered to purchase or build, as well as incur debt to achieve same, residences which the Corporation would own and lease under the Program established h erein. (a) The lease-to-own contract shall contain: (1) a lease of the residence, or in the case of cooperative housing units a sublease, for a term not to exceed five (5) years; (2) provision for a rental payment not less than the sum of: (A an amount sufficient to pay the estimated property taxes and insurance on the residence, or in the case of a cooperative unit, the maintenance charges; (B) the cost of routine maintenance of the residence, unless

ficient to pay the estimated property taxes and insurance on the residence, or in the case of a cooperative unit, the maintenance charges; (B) the cost of routine maintenance of the residence, unless the lease-to-own contract requires the Tenant-Purchaser to perform such maintenance at his own expense; COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 56 (C) an amount sufficient to pay interest on the mortgage loan held by the Corporation on the residence, less the estimated earnings on the escrow fund provided in § 4708 of this Act which is allocable to such mortgage held by the Corporation; (D) an amount to be held in escrow, referred to as the 'Tenant-Purchaser escrow,' which, when accumulated over the period of the lease-to-own contract or no more than five (5) years, will amount to a sum sufficient to pay the Tenant- Purchaser’s required down payment under the lease-to-own contract, plus the estimated closing costs of purchase which will be allocable to the Tenant-Purchaser, including the seller’s closing cost at the initial closing of the mortgage to the seller; and (E) in the case of a condominium unit, common charges; (3) provisions obligating the

he Tenant-Purchaser, including the seller’s closing cost at the initial closing of the mortgage to the seller; and (E) in the case of a condominium unit, common charges; (3) provisions obligating the Tenant-Purchaser to buy and the seller to sell the residence at the end of the lease term, which shall not exceed five (5) years; (A) if Tenant Purchaser seeks to utilize any HUD grants for down payment and closing cost assistance, then Tenant Purchaser shall exercise the purchase option on or before three (3) years; (4) a provision that the default by the Tenant- Purchaser under the provision of the lease-to-own contract shall result in the forfeiture to the sell er of all amount in the Tenant-Purchaser escrow; furthermore, the various escrow funds funded under the Program should be residence specific, such that a default o r other failure of the tenant to purchase the unit wi thin the five (5) years allowed would result in the escr ow being forfeited to the successor Tenant-Purchaser, and not the Corporation; COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 57 (5) a provision that the Tenant-Purchaser shall have the option upon reasonable notice to the selle r

and not the Corporation; COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 57 (5) a provision that the Tenant-Purchaser shall have the option upon reasonable notice to the selle r and the Corporation to elect to close the purchase of t he residence not earlier than one (1) year from the date of execution of the lease-to-own contract; (6) a provision that the rent shall be adjusted under the lease-to-own contract periodically to tak e account of changes in taxes, insurance, escrow earn ing, mortgage interest and other variables intended to b e covered by the tenant’s rental payments; and (7) a provision governing the consequences of default by each of the parties. (b) The provisions of this Act shall not apply to the tenancy of the Tenant-Purchaser under the lease-to- own contract from and after the purchase by the Corpora tion of the mortgage loan on the residence so long as the Corporation holds the mortgage loan. The Corporati on shall not sell the mortgage loan prior to the closing of the transfer of title to the Tenant-Purchaser or defaul t by the Tenant-Purchaser under the lease-to-own contract.

gage loan. The Corporati on shall not sell the mortgage loan prior to the closing of the transfer of title to the Tenant-Purchaser or defaul t by the Tenant-Purchaser under the lease-to-own contract. (c) The Corporation shall adopt procedures to ensur e that the payments contemplated by § 4707(a)(2) of t his Section are in fact applied to those purposes. 2015 NOTE: Subsection designations in (a)(2) and (3) were al tered to adhere to the Compiler’s alpha-numeric scheme pursu ant to the authority granted by 1 GCA § 1606. § 4908. Tenant-Purchaser Escrow Account. (a) (1) The mortgage loan documents, with respect t o a mortgage loan(s) in effect prior to the Tenant-Purchaser’s purchase of their respective units, shall provide t here shall be retained over the Tenant-Purchaser’s lease term an amount held as additional security for such loan(s) called the Tenant-Purchaser Escrow Account. The Tenant- Purchaser Escrow Account will receive a predetermin ed portion of the Tenant-Purchaser’s monthly rental am ount as provided for in § 4707(a)(2)(iv) of this Act, such portion to be determined at commencement of the Tenant-Purchas er’s COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

-Purchaser’s monthly rental am ount as provided for in § 4707(a)(2)(iv) of this Act, such portion to be determined at commencement of the Tenant-Purchas er’s COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 58 lease. The total amount contributed to the Tenant- Purchaser Escrow Account by the Tenant-Purchaser over the lea se term should not be less than ten percent (10%) of the Tenant-Purchaser’s anticipated purchase price. Suc h Tenant-Purchaser Escrow Account shall be held by a Trustee for the benefit of the Corporation and the first mortgagee(s). The Corporation will approve such Tr ustee. At the time of the Tenant-Purchaser’s purchase of t he respective unit, the Trustee shall release and disp erse the Tenant-Purchaser Escrow Account to the unit Seller to meet the Tenant-Purchaser’s down payment requirement. (2) The escrow amounts pertaining to various lease- to- own loans may be commingled for investment purposes . Trustees shall keep separate records showing the am ount in each Tenant-Purchaser Escrow Account. Investment earnings on the Tenant-Purchaser Escrow Account sha ll accrue to the benefit of the Tenant-Purchaser.

all keep separate records showing the am ount in each Tenant-Purchaser Escrow Account. Investment earnings on the Tenant-Purchaser Escrow Account sha ll accrue to the benefit of the Tenant-Purchaser. (b) The Trustee shall periodically advise both the Corporation and the Seller as to the amount and ear nings in each Tenant-Purchaser Escrow Account. (c) In the event a default by the Tenant-Purchaser occurs, as provided for in § 4707(a)(5), the Trustee shall rel ease only that portion of the respective Tenant-Purchaser Escrow A ccount that is needed to meet the following funding requirement s: (1) any costs incurred by the Corporation related t o deferred maintenance of the Tenant-Purchaser’s resp ective housing unit; (2) any costs to the Corporation due to re-advertis ing, administrative financial fees and other liabilities that may be a result of the Tenant-Purchaser caused default; an d (3) all funds remaining in the unit specific Tenant - Purchaser Escrow Account will be retained by the Tr ustee for the benefit of the next prospective Tenant-Purc haser to occupy the defaulted unit, as is intended by and pr ovided for in § 4704(a)(5) of this Act.

scrow Account will be retained by the Tr ustee for the benefit of the next prospective Tenant-Purc haser to occupy the defaulted unit, as is intended by and pr ovided for in § 4704(a)(5) of this Act. 2017 NOTE: Subitem designations added to subsection (a) pursu ant to the authority of 1 GCA § 1606. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 59 2015 NOTE: Subsection designations (c) were altered to adher e to the Compiler’s alpha-numeric scheme pursuant to the aut hority granted by 1 GCA § 1606. § 4909. Closing of Transfer of Title. (a) Disbursement of Escrow Account. At the closing of the transfer of title to the residence to the Tenant-Pu rchaser to the lease-to-own contract, the Corporation shall disbur se the escrow amount to or for the account of the Tenant-Purchase r. (b) Insurance. At such closing the Corporation may require the Tenant-Purchaser to furnish private mortgage in surance if such insurance is required in the case of other mor tgage loans under this Title. If such insurance is not obtainable in the private market at the time of such closing, the Corporation is authorized to issue such insurance. § 4910.

e case of other mor tgage loans under this Title. If such insurance is not obtainable in the private market at the time of such closing, the Corporation is authorized to issue such insurance. § 4910. Rules, Regulations and Restrictions. The Corporation shall establish such requirements w ith regard to lease-to-own contracts, lease-to-own resi dence, the qualifications of Tenant-Purchaser and the Corporat ion’s participation in any lease-to-own program, as may b e deemed appropriate by the Corporation to achieve the objec tives of this Act. The Corporation’s requirements, including, bu t not limited to income limit applicable to the Tenant-Purchaser and the purchase price of the residence, must be satisfied at or before the time the mortgage loan is purchased, and the Tenant -Purchaser must be deemed qualified by the Corporation at that time. § 4911. Severability. If any provision of this Law or its application to an y person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid p rovisions or application, and to this end the provisions of this Law are

such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid p rovisions or application, and to this end the provisions of this Law are severable. ---------- ARTICLE 10 HOUSING TRUST FUND ACT COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 60 SOURCE : This Article was added by P.L. 31-166:3 (Jan. 4, 2012). § 41001. Establishment and Title. § 41002. Purpose. § 41003. Housing Trust Fund Authorized Programs. § 41004. Funding for Authorized Programs. § 41005. Administration. § 41006. Annual Audit. § 41001. Establishment and Title. There is hereby created, separate and apart from an y other funds of the government of Guam, and under the admi nistration and control of the GHC, the Housing Trust Fund (Fund) . § 41002. Purpose. The purpose of the Fund is to support the affordabi lity and accessibility of housing for the residents of Guam, and to finance support services that assist low-income households in obtaining and maintaining affordable housing. § 41003. Housing Trust Fund Authorized Programs. Programs established or planned to be established b y the GHC and funded through the Housing Trust Fund

obtaining and maintaining affordable housing. § 41003. Housing Trust Fund Authorized Programs. Programs established or planned to be established b y the GHC and funded through the Housing Trust Fund shall require appropriate legislative action and authorization. B efore such legislative action and authorization, the GHC shall provide a written report of each program established or plann ed to be established by the GHC to the Speaker of I Liheslaturan Guåhan . Such report shall detail the funding mechanism(s) or source(s) to fund each program, the missions, objec tives, and goals of each program, the annual amount necessary to fund each program, descriptions of the targeted population su ch program intends to assist, use or inclusion of any Chamorro Land Trust properties in achieving the missions, objectives, a nd goals of each program, and any other information I Liheslaturan Guåhan sees fit in determining the viability, feasibility, and necessity of such programs. (a) Authorized Program #1 - the First-time Homeowner Assistance Program established by Article 7, Chapter 4, Title 12 of the Guam Code Annotated is h ereby COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

. (a) Authorized Program #1 - the First-time Homeowner Assistance Program established by Article 7, Chapter 4, Title 12 of the Guam Code Annotated is h ereby COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 61 authorized and approved by I Liheslaturan Guåhan and funded by the Housing Trust Fund established herein . (b) Authorized Program #2 – the Pilot Housing First Program established by the Guam Housing Corporation pursuant to §§ 127115(h) and 127116(g) of Chapter 1 27, Title 11 GCA. SOURCE: Added P.L. 31-166:3 (Jan. 4, 2012). Subsection ( b) added by P.L. 33-231:5 (Jan. 9, 2017). 2017 NOTE: Pursuant to P.L. 33-231:6 (Jan. 9, 2017), the Pi lot Housing First Program established by subsection (b) ' shall come to an end twelve (12) months after the date of its implem entation.' § 41004. Funding for Authorized Programs. Funding for authorized programs shall be identified by the GHC pursuant to § 41003 of the Housing Trust Fund A ct, and is subject to appropriate legislative authorization an d approval. I Liheslatura may, from time to time, make appropriations to the Fund to be used for programs authorized by the GHC Board of Directors, and approved by I

iate legislative authorization an d approval. I Liheslatura may, from time to time, make appropriations to the Fund to be used for programs authorized by the GHC Board of Directors, and approved by I Liheslatura in accordance with this Act. I Liheslatura may enact laws specifically designating revenue sources, which shall be deposited directly into the Fund. (a) Authorized Program #1 - Funding for the First-t ime Homeowner Assistance Program. (1) The GHC shall provide the funding source for the First-time Homeowner Assistance Program within the Fund, pursuant to the Housing Trust Fund Act, from its current operating and/or non-operating revenues and/or income. (2) In the fiscal year of the enactment of the Housing Trust Fund Act, Five Hundred Thousand Dollars ($500,000) is hereby appropriated from the GHC’s annual operating and/or non-operating revenue s and/or income to the Fund as seed capital for the Programs authorized in § 41003 of the Housing Trust Fund Act. (3) If, in the fiscal year of the enactment of the Housing Trust Fund Act, the GHC’s annual operating COL9/7/202112 GCA AUTONOMOUS AGENCIES CH.

ms authorized in § 41003 of the Housing Trust Fund Act. (3) If, in the fiscal year of the enactment of the Housing Trust Fund Act, the GHC’s annual operating COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 62 and/or non-operating revenues and/or income are not sufficient to fully fund the seed capital, such see d capital of Five Hundred Thousand Dollars ($500,000) , or the difference between such amount and what is appropriated from the GHC’s operating and/or non- operating revenues and/or income, is hereby appropriated from the GHC’s fund balance or its equivalent. (4) For the fiscal years thereafter, up to Two Hundred Fifty Thousand Dollars ($250,000) is hereby appropriated from the GHC’s annual operating and/or non-operating revenues as needed to ensure the reserved balance of the Fund required in Subsection (6) is at least Two Hundred Fifty Thousand Dollars ($250,000) at the beginning of each fiscal year thr ough Fiscal Year 2017. For Fiscal Year 2018, the amount appropriated and reserved balance at the beginning of the fiscal year shall be reduced to Fifty Thousand Dollars ($50,000).

ach fiscal year thr ough Fiscal Year 2017. For Fiscal Year 2018, the amount appropriated and reserved balance at the beginning of the fiscal year shall be reduced to Fifty Thousand Dollars ($50,000). The requirements of this Subsect ion shall be repealed on September 30, 2018. (5) If, in the fiscal years thereafter, the GHC’s annual operating and/or non-operating revenues and/ or income are not sufficient to provide the funding necessary to fulfill the requirements set forth in § 41004(a)(4), the difference between what is require d and what is appropriated from the GHC’s annual operating and/or non-operating revenues and/or income, is hereby appropriated from the GHC’s fund balance or its equivalent. The requirements of thi s Subsection shall be repealed on September 30, 2018. (6) The funds authorized for the First-time Homeowner Assistance Program shall be reserved within the Housing Trust Fund, and shall only be authorized for the use of the First-time Homeowner Assistance Program, and for no other program. (b) Continuing Appropriation. The appropriations made to the Fund shall not lapse and shall continue until fully expended for the purposes pursuant to this Ac t.

ce Program, and for no other program. (b) Continuing Appropriation. The appropriations made to the Fund shall not lapse and shall continue until fully expended for the purposes pursuant to this Ac t. COL9/7/202112 GCA AUTONOMOUS AGENCIES CH. 4 GUAM HOUSING CORPORATION 63 (c) The funds transferred to the Fund under this Ac t shall not be subject to I Maga’lahi’s transfer authority. SOURCE: Added by P.L. 31-166:3 (Jan. 4, 2012). Subsection s (a)(4) and (5) amended by P.L. 33-030:6 (June 2, 2015). § 41005. Administration. The Fund shall be administered by the GHC. The GHC shall : (a) Administer the Fund. (b) Develop and implement appropriate rules, procedures, guidelines, and regulations for the pro per operation of the Fund, including the necessary inte rnal controls over the Fund. (c) Review requests for funding from the Fund and make program funding recommendations pursuant to § 41003 of this Act. (d) Prepare and submit an annual report to I Maga’låhen Guåhan and the Speaker of I Liheslaturan Guåhan concerning the administration and activities of th e Fund. § 41006. Annual Audit. An annual audit shall be conducted on the Fund and shall be submitted to I Maga’lahen Guåhan and the

eslaturan Guåhan concerning the administration and activities of th e Fund. § 41006. Annual Audit. An annual audit shall be conducted on the Fund and shall be submitted to I Maga’lahen Guåhan and the Speaker of I Liheslaturan Guåhan within the same period of the Guam Housing Corporation’s annual yearly audit. Such an nual audits shall be conducted or cause to be conducted by the Office of Public Accountability. The funding for each annual audit shall be funded by the GHC in an amount to be approved by the GHC Board of Directors. SOURCE: Added by P.L. 31-166:3 (Jan. 4, 2012), amended by P.L. 33- 030:2 (June 2, 2015). ---------- COL9/7/2021