§ 4010 Creation.
In accordance with Chapter 86 of Title 29, there is created in the Executive Department a public corporation of perpetual duration to be called the "Delaware State Housing Authority," hereinafter referred to as "DSHA." Chapter 43 of this title shall apply to DSHA and to its projects as fully as such provisions apply to a housing authority created by § 4303 of this title and to its housing projects; provided however, that DSHA shall not be subject to §§ 4303, 4304, 4306, 4307, 4314 and 4317 of this title.
§ 4011 DSHA to contract for labor or materials.
DSHA shall contract for labor or materials (except labor or materials used in the maintenance or operation of projects) pursuant to the manner prescribed in Chapter 69 of Title 29, for departments and other agencies of the state government.
§ 4012 Seal of DSHA.
DSHA shall have a corporate seal in the form of a circle bearing the arms of the State in the center and the name of DSHA in the border. All deeds, contracts or other obligations, certificates or other instruments executed, including bonds which are provided for in § 4017 of this title, made or issued on behalf of DSHA, shall bear the signature of the Housing Director and have impressed or imprinted thereupon the seal of DSHA, or facsimile thereof, and when so appearing shall be conclusively presumed in any judicial action or proceeding the valid act and deed of DSHA. The presumptions set forth in this provision shall also apply to all bonds executed pursuant to § 4016 of this title.
§ 4013 Powers of DSHA.
In addition to its other powers, DSHA is hereby granted, has and may exercise all powers necessary or appropriate to carry out and effectuate its corporate purposes, including, without limitation, the following:
(1) To sue and be sued in its own name;
(2) To have perpetual succession;
(3) To maintain an office at such place or places within this State as it may designate;
(4) To adopt and from time to time, amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of DSHA and the conduct of its business;
(5) To acquire real or personal property, or any interest therein, on either a temporary or long-term basis in the name of DSHA by gift, purchase, transfer, in the manner prescribed by Chapter 61 of Title 10, foreclosure, lease or otherwise, including rights or easements; to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property, or any interest therein, or mortgage lien interest owned by it or under its control, custody or in its possession and release or relinquish any right, title, claim, lien, interest, easement or demand, however acquired, including any equity or right of redemption in property foreclosed by it; and to do any of the foregoing by public or private sale, with or without public bidding, notwithstanding any other law;
(6) To make mortgage loans on such terms and conditions as may be determined by the Housing Director, and in accordance with this chapter, for the construction, financing, refinancing or rehabilitation of housing for low- and moderate-income persons and families;
(7) To insure mortgage loans to finance the building or rehabilitation of housing designed and planned to be available by sale or lease to low- or moderate-income persons and families;
(8) To build or rehabilitate housing designed and planned to be sold or rented at prices which low- and moderate-income persons and families can afford, and to rent or otherwise dispose of such housing to persons and families of low- and moderate-income or to housing sponsors for the purpose of renting or selling such property to such persons and families;
(9) To charge rents for the use of residential housing facilities in the amounts sufficient to comply with any agreements of DSHA, whether in connection with the issuance of bonds or otherwise including, but not limited to, reimbursement of all costs of financing by DSHA and such service charges as DSHA shall determine to be reasonable, and, in connection with its authorized programs, to make and collect such charges including, but not limited to, reimbursement of all costs of financing by DSHA and such service charges and insurance premiums as DSHA shall determine to be reasonable;
(10) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities from private or public parties to effectuate the purposes of this chapter;
(11) To enter into agreements with the State or any agency thereof, municipalities of the State, the United States, public corporations or bodies and private corporations or individuals and to make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions including contracts or agreements with qualified mortgage lenders for the servicing and processing of mortgage loans pursuant to this chapter and to accept grants and the cooperation of the United States or any agency thereof or of the State or any agency thereof, or any public corporation or municipality in furtherance of the purposes of this chapter;
(12) To provide, contract or arrange for consolidated processing of any aspect of a housing development in order to avoid duplication thereof by either undertaking the processing in whole or in part for any department agency, or instrumentality of the United States or of this State, or, in the alternative, to delegate the processing in whole or in part to any such department, agency or instrumentality;
(13) To provide advice, technical information (including assistance in obtaining federal and state aid), training and educational services, as will assist the planning, construction, rehabilitation and operation of housing developments for persons and families of low- and moderate-income, including, but not limited to, assistance in community development and organization, home management and advisory services for the residents of housing developments and to encourage community organizations to assist in developing the same;
(14) To encourage research and demonstration projects in order to develop new and better techniques and methods for increasing the supply of housing for persons and families of low- and moderate-income, and to engage in such research and demonstration projects and to receive and accept contributions, grants or aid, from any source, public or private, including, but not limited to, the United States and this State, for carrying out this purpose;
(15) To employ architects, engineers, attorneys, accountants, housing construction and financial experts and such other advisors, consultants and agents as may be necessary in its judgment and to fix their compensation;
(16) To procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage loans, in such amounts and from such insurers as it deems desirable;
(17) To invest any funds not needed for immediate use or disbursement including any funds held in reserve in the following:
a. Any bonds or other obligations which as to principal and interest constitute direct obligations of, or obligations guaranteed by, the United States or the State;
b. Obligations of the Federal National Mortgage Association;
c. Obligations of the Federal Intermediate Credit Corporation;
d. Obligations of Federal Land Banks;
e. Obligations of Federal Home Loan Banks;
f. Certificates of deposit of banks or trust companies, including the Trustee, organized under the laws of the United States or any state thereof which have a combined capital and surplus of at least $15,000,000;
g. Bankers Acceptances;
h. Commercial paper, which has been classified for rating purposes by Dunn & Bradstreet, Inc., as Prime-1, or by Standard & Poor's Corporation as A-1;
i. Bonds, debentures, notes or other obligations issued by any of the following: Bank for Cooperatives, Export-Import Bank of the United States, Government National Mortgage Association, Federal Financing Bank, Small Business Administration or any other agency or instrumentality of the United States of America, created by an Act of Congress (substantially similar to the foregoing in its legal relationship to the United States of America);
j. Contracts for the purchase and sale of obligations described in paragraphs (17)a. through e. and in paragraph (17)i. of this section;
k. Interest-bearing notes issued by a bank, trust company, national banking association or other depository institution or by a bank holding company, an insurance company or other financial institution;
l. Shares of any investment company that:
1. Is registered under the Investment Company Act of 1940, as amended [15 U.S.C. § 80a-1 et seq.];
2. Invests substantially all of its assets in short-term high-quality money-market instruments;
3. Maintains a constant net asset value per share; and
4. Maintains a rating at least as high as DSHA's bonds;
m. Other investment arrangements made pursuant to an investment agreement authorized by a resolution of DSHA; and
n. Corporate debt obligations, rated at least as high as DSHA's bonds, which have a fixed par value and/or whose terms promise a fixed dollar amount at maturity or call date;
(18) To borrow money and issue bonds and notes or other evidence of indebtedness as hereinafter shown without regard to the treatment of interest thereon for federal income tax purposes; provided however, that DSHA shall not issue bonds and notes to exceed $350,000,000 without General Assembly approval with respect to bonds and notes subject to the Capital Reserve Fund established under § 4020 of this title;
(19) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations of DSHA, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which DSHA is a party;
(20) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations, to enter into contracts with any mortgagor containing provisions enabling such mortgagor to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges where, by reason of other income or payment from any department, agency or instrumentality of the United States or this State, such reductions can be made without jeopardizing the economic stability of housing being financed;
(21) To procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or notes or any other evidence of indebtedness thereof issued by DSHA including the power to pay premiums on any such insurance;
(22) To acquire, lease, purchase, manage, operate, hold and dispose of real and personal property in the State, take assignments of leases and rentals, sell and convey such property on any terms, proceed with foreclosure actions, and enter into contracts, leases and other arrangements necessary or incidental to the performance of its corporate duties;
(23) To exercise any or all of the powers conferred upon it, either generally or with respect to any specific housing project or projects, through or by an agent or agents which it may designate including any corporation or corporations which are or shall be formed under the laws of this State, and for such purposes, DSHA may cause 1 or more corporations to be incorporated under the laws of this State or may acquire the capital stock of any corporation or corporations. Any corporate agent, all of the stock of which shall be owned by DSHA or its nominee or nominees, may to the extent permitted by the law, exercise any of the powers conferred by this chapter upon DSHA, or as shall be conferred upon it by DSHA, as agent;
(24) Fund the operation of any agents it may designate or any authority by advancing moneys appropriated pursuant to § 4030 of this title;
(25) To do any act necessary or convenient to the exercise of the powers herein granted or reasonably implied including all powers presently or hereafter granted to local housing authorities under Chapter 43 of this title;
(26) To agree to make such payments to the State or any political subdivisions thereof (which payments such bodies may accept) as DSHA finds consistent with the maintenance of the low- and moderate-income rent character of housing projects or the achievement of the purposes of this chapter;
(27) To establish and implement policies, and to take all actions deemed appropriate to mitigate adverse social conditions and to eliminate drug and crime problems at DSHA's sites; and
(28) To provide housing assistance as a benefit, not an entitlement, and to require the beneficiaries to recognize their responsibilities to DSHA and to their neighbors as conditions of continued assistance.
§ 4014 Liberal construction.
Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which DSHA might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of bonds, notes and other obligations and refunding bonds under this chapter need not comply with the requirements of any other state law applicable to the issuance of bonds, notes and other obligations and contracts for the construction and acquisition of any housing developments undertaken pursuant to this chapter need not comply with any other state law applicable to contracts for the construction and acquisition of state-owned property. No proceedings, notice or approval shall be required for the issuance of any bonds, notes and other obligations or any instrument as security therefor, except as to an issue of bonds subject to the requirements of § 4020 of this title relating to the Capital Reserve Fund, and the issuing officer of DSHA shall coordinate any other issuance with the state bond issuing officers.
§ 4015 Audit of books and accounts.
The office of Auditor of Accounts shall cause an annual audit of the books and accounts of DSHA. The selection of the firm to perform the annual audit of the books and accounts of DSHA shall be mutually agreed upon by the office of the Auditor of Accounts and the Housing Director who shall consult and cooperate with each other in the selection, contract, employment and scope of professional services to be rendered, provisions in Chapter 29 of Title 29 notwithstanding. The audit shall be performed by a certified public accountant of recognized national standing and shall conform in all respects to the covenants contained in all bond resolutions entered into by DSHA for the benefit of its bondholders. DSHA shall transfer funds, as requested by the office of Auditor of Accounts, to cover the cost of the audit.
§ 4016 Bonds.
(a) DSHA may, with the approval of the issuing officer and subject to the authorization (if any) required by § 7402 of Title 29, issue bonds (including refunding bonds for the purpose of paying or retiring bonds previously issued by DSHA) from time to time in such amounts as it may deem advisable for any of its corporate purposes. DSHA may issue such types of bonds as it may determine, including bonds on which the principal and interest are payable:
(1) Exclusively from the income and revenues of any undertaking financed in whole or in part with the proceeds of such bonds;
(2) Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole or in part with the proceeds of such bonds;
(3) From its revenues generally; or
(4) By grants, subsidies or other payments from the federal government.
Any of such bonds may be additionally secured by a pledge of any revenue or by a mortgage of any housing project, projects or other property of DSHA or any of its agents or designees.
(b) Neither the issuing officer nor any person executing the bonds shall be liable personally on the bonds.
§ 4017 Forms and terms of bonds; disposition of proceeds.
(a) All bonds issued under the authority of this chapter shall be dated, shall bear interest at such rate or rates payable semiannually or at such other time or times as shall be determined by resolution of DSHA, and shall mature at such time or times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions as may be fixed by the issuing officer prior to the issuance of the bonds. The principal of and the interest upon such bonds may be made payable in any lawful medium. The issuing officer shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denominations of the bonds. Both principal of and interest on the bonds shall be payable at such place or places as DSHA may designate.
(b) Bonds shall be signed by manual or facsimile signature of the Housing Director, and the seal of DSHA or a facsimile thereof shall be affixed thereto or imprinted thereon. In case any person whose signature or facsimile thereof shall appear on any bonds or coupons shall cease to be the Housing Director before the delivery of such bonds, such signature or facsimile shall, nevertheless, be valid for all purposes, the same as if the Housing Director had remained in office until delivery.
(c) All bonds issued under this chapter shall have and are declared to have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code.
(d) Such bonds and the income therefrom shall be exempt from all taxation by this State or by any political subdivision, agency or authority thereof.
(e) The bonds may be issued in coupon or registered form, or both, as the issuing officer may determine, and provision may be made for the registration of any coupon bond as to principal alone or as to both principal and interest and for the reconversion of any bonds registered both as to principal and interest into coupon bonds.
(f) The issuing officer may sell such bonds, either at public or private sale, in such manner and for such price as they may determine to be for the best interest of DSHA.
(g) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution of DSHA authorizing the issuance thereof or as set forth in the indenture securing their payment, which purposes may include redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof and all legal and other expenses of their issuance and shall be disbursed under such restrictions, if any, as said resolution or trust indenture may provide.
(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times be available to DSHA for the aforesaid purposes; provided however, that if the proceeds of the bonds of any issue shall exceed the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used for any purpose of DSHA authorized in this chapter or for the payment of the principal of or interest on its outstanding bonds.
(i) Prior to the preparation of definitive bonds, the issuing officer may issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter. The issuing officer may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings or conditions which are specified and required by this chapter.
§ 4018 Bonds as legal investments for institutions and fiduciaries and as legal deposit.
The bonds issued under the authority of this chapter are declared to be securities in which all state and municipal officers and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business and all administrators, executors, guardians, trustees and other fiduciaries and all other persons whatsoever who now or may be authorized to invest in bonds or other obligations of this State, may properly and legally invest any funds, including capital belonging to them or within their control, and such bonds are declared securities which may properly and legally be deposited with and received by any state, county or municipal officer or agency of this State for any purpose for which the deposit of bonds or other obligations of this State is now or may hereafter be authorized by law.
§ 4019 Credit of State not pledged.
(a) Bonds issued under this chapter shall be payable exclusively from the revenues and other funds of DSHA and shall contain the following statement on their face:
"The State of Delaware is not obligated to pay the principal of this bond nor the interest thereon, nor are the faith and credit of the State pledged to the payment of the principal of, or interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the State to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment, and the bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction; provided also that § 4020 of this title, relative to the Capital Reserve Fund, shall not be deemed to constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
§ 4020 Capital Reserve Fund.
(a) DSHA shall create and establish a special fund to secure the bonds, herein referred to as Capital Reserve Fund, and shall pay into the Capital Reserve Fund:
(1) Any moneys appropriated and made available by the State for the purposes of such fund;
(2) Any proceeds of the sale of bonds, to the extent provided in the resolution of DSHA, authorizing the issuance thereof; and
(3) Any other moneys which may be made available to DSHA for the purpose of such fund from any other source or sources.
All moneys held in the Capital Reserve Fund, except as hereinafter provided, shall be used solely for the payment of the principal of bonds of DSHA as the same mature, the redemption or purchase of bonds of DSHA, the payment of interest on such bonds of DSHA or the payment of any redemption premium required to be paid when such bonds are redeemed prior to the maturity. Moneys in the Capital Reserve Fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of the Fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on all bonds of DSHA then outstanding, except for the purpose of paying principal and interest on bonds of DSHA maturing and becoming due and for the payment of which other moneys of DSHA are not available. Any income or interest earned by, or increment to, the Capital Reserve Fund due to the investment thereof may be transferred by DSHA to any other fund of DSHA to the extent it does not reduce the amount of Capital Reserve Fund below the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on all bonds of DSHA then outstanding.
(b) Except with respect to an issue, or portion of an issue, of bonds designated by resolution of DSHA as not being subject to the requirements and provisions of this section, DSHA shall not issue bonds at any time if the maximum amount of principal and interest maturing and becoming due in a succeeding fiscal year on the bonds then to be issued and on all other bonds of DSHA then outstanding will exceed the amount of the Capital Reserve Fund at the time of issuance unless DSHA, at the time of issuance of such bonds, shall deposit in the Fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in the Fund, will be not less than the maximum amount of principal and interest maturing and becoming due in any succeeding fiscal year on the bonds then to be issued and on all other bonds of DSHA then outstanding.
(c) To assure the continued operation and solvency of DSHA for the carrying out of the public purposes of this chapter, provision is made for the accumulation in the Capital Reserve Fund of an amount equal to the maximum amount of principal and interest maturing and becoming due in any fiscal year on all bonds of DSHA then outstanding. In order to assure further such maintenance of the Capital Reserve Fund, there may be annually appropriated and paid to DSHA for deposit in the Capital Reserve Fund such sum, if any, as shall be certified by the Housing Director to the Governor and Director of the Office of Management and Budget, as necessary to restore the Capital Reserve Fund to an amount equal to the maximum amount of principal and interest maturing and becoming due in any fiscal year on the bonds of DSHA then outstanding. In any case where a deficiency occurs in the Capital Reserve Fund, the Housing Director shall promptly make and deliver to the Governor and Director of the Office of Management and Budget a certificate stating the amount required to restore the Capital Reserve Fund, and the Governor shall, as soon as practicable during the current fiscal year, request an appropriation of such amount, and the amount so requested may be appropriated and paid to DSHA for deposit into the Capital Reserve Fund.
(d) In computing the amount of the Capital Reserve Fund for the purposes of this section, securities in which all or a portion of the fund is invested shall be valued in the manner provided in the resolution authorizing the issuance of the trust indenture securing such bonds.
(e) Calculations of the amount of principal and interest maturing and becoming due in any succeeding fiscal year shall be based upon the assumption that bonds of DSHA will, after said date of computation, cease to be outstanding by reason of the payment of such bonds at their respective maturities or the payment of all moneys required to be paid into a sinking fund on account of such bonds as may be required by the terms of any resolution or indenture pursuant to which such bonds have been issued and the application of such sinking fund to the retirement of bonds in accordance with their terms.
(f) For the purposes of this section, the term "bonds" shall mean all obligations of DSHA bearing a maturity date more than 2 years after the date thereof, except any bonds, notes or other obligations of DSHA which are designated by resolution of DSHA prior to the issuance thereof as being not subject to this section.
§ 4021 Provisions of bonds and mortgages.
In connection with the issuance of bonds or the incurring of any obligation under a lease and to secure the payment of such bonds or obligations, DSHA in addition to its other powers may:
(1) Pledge all or any part of its rents, fees or revenues to which its right then exists or may thereafter come into existence;
(2) Mortgage all or any part of its property, real or personal, then owned or thereafter acquired, including any of the public domain owned or acquired by it;
(3) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against permitting or suffering any lien thereon;
(4) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any project or any part thereof;
(5) Covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or may thereafter come into existence or against permitting or suffering any lien thereon;
(6) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise and as to the use and disposition of the proceeds thereof;
(7) Covenant as to what other or additional debts may be incurred by it;
(8) Covenant that DSHA warrants the title to the premises;
(9) Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees and other revenues and as to the use and disposition to be made thereof;
(10) Covenant as to the use of any or all of its property, real or personal;
(11) Create or authorize the creation of special funds segregating the proceeds of any loans or grants, the revenues of any project or projects, reserves for principal and interest on its bonds and for operating contingencies and other reserves and covenant as to the use and disposal of the moneys held in such funds;
(12) Redeem the bonds and covenant for their redemption and provide the terms and conditions thereof;
(13) Covenant against extending the time for the payment of its bonds or interest thereon;
(14) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(15) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys;
(16) Vest in an obligee, in the event of a default by DSHA, the right to cure any such default and to advance any moneys necessary for such purpose and covenant that the moneys so advanced become an additional obligation of DSHA with such interest, security and priority as may be provided in any mortgage, lease or contract;
(17) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;
(18) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation;
(19) Covenant to surrender possession of a project or projects or parts thereof upon the happening of an event of default and vest in an obligee the right, upon such default and without judicial proceedings, to take possession and use, operate, manage and control such projects or any parts thereof and to collect and receive rents, fees and revenues arising therefrom in the same manner as DSHA itself might do and to dispose of the moneys collected in accordance with the agreement of such obligee with DSHA;
(20) Vest in a trustee or trustees the right to enforce any covenant to secure or pay the bonds or otherwise relating to such bonds, provide for the powers and duties of such trustee or trustees, limit the liabilities thereof and provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant;
(21) Vest in a government or in a trustee the right, upon the happening of an event of default, to foreclose the mortgage securing any bonds held by such government, through judicial proceedings or through the exercise of a power of sale without judicial proceedings;
(22) Vest in other obligees the right, upon the happening of an event of default, to foreclose any mortgage through judicial proceedings;
(23) Vest in any obligee the right to foreclose any such mortgage as to all or such part or parts of the property covered thereby as such obligee shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings or the sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage on the parts of the mortgaged property not included in such proceedings or not sold as aforesaid;
(24) Make covenants other than, and in addition to, the covenants expressly authorized in this section of like or different character and execute all instruments necessary or convenient in the exercise of the powers granted in this chapter or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of DSHA may require;
(25) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of DSHA, tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated in this section.
§ 4022 Trust indenture.
(a) At the discretion of the issuing officer each and any issue of such bonds may be secured by a trust indenture by and between the issuing officer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without this State.
(b) Such trust indenture may pledge or assign the revenues of DSHA but shall not create a security interest in or convey or mortgage any real property owned, operated or maintained by DSHA. Either the resolution providing for the issuance of the bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not in violation of law, include covenants setting forth the duties of DSHA in relation to the acquisition, construction, improvement, maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application of all moneys.
(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and to furnish such indenture bonds or to pledge such securities as may be required by DSHA. Such indenture may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporation.
(d) In addition to the foregoing, such trust indenture may contain such other provisions as the issuing officer may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related or may be paid out of the revenues of DSHA.
§ 4023 Remedies of bondholders and trustees.
(a) Any holder of bonds issued under this chapter or any of the coupons attached thereto, and the trustee under the trust indenture, if any, except to the extent the rights given by this chapter may be restricted by resolution passed before the issuance of the bonds or by the trust indenture, may either at law or in equity by suit, action, mandamus or other proceedings protect and enforce any and all rights under the laws of the United States or of this State or granted under this chapter or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this chapter, or by such resolution or trust indenture, to be performed by DSHA or any officer thereof, including the fixing, charging and collecting of fares or charges for the use of any facility operated by DSHA.
(b) Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed shall have and be entitled to exercise all the rights and powers of DSHA with respect to the facilities operated or maintained by DSHA and all of the appropriate rights and powers of a receiver in equity.
§ 4024 Moneys as trust funds.
All moneys received pursuant to the authority of this chapter, whether as proceeds from the sale of bonds or grants or other contributions from any person corporate or otherwise, or government, or as fees and revenues shall be deemed to be trust funds, to be held and applied solely as provided in this chapter. The issuing officer shall, in the resolution authorizing the issuance of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fees and revenues to be received, to any officer, agency, bank or trust company who shall act as trustee of such funds, and shall hold and apply the same to the purposes of this chapter, subject to such regulations as this chapter and such resolution or trust indenture may provide.
§ 4025 Subordination of mortgage to agreement with government.
DSHA may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government of the operation and maintenance of the mortgaged property and the construction of improvements thereon. In such event, any purchase or purchasers at a sale of the property of DSHA pursuant to a foreclosure of such mortgage or any other remedy in connection therewith shall obtain title subject to such contract.
§ 4026 Powers relative to purchase of and sale to financial institutions of mortgage loans; loans to mortgage lenders.
DSHA shall have all the powers necessary or convenient to carry out and effectuate the purposes of this chapter, including the following powers in addition to others herein granted:
(1) To invest in, purchase or to make commitments to purchase, and take assignments from mortgage lenders of notes and mortgages evidencing loans for the construction, rehabilitation, purchase, leasing or refinancing of housing for persons and families of low- and moderate-income in this State;
(2) To make loans to mortgage lenders upon terms and conditions requiring the proceeds thereof to be used by such mortgage lenders for the making of new residential mortgages, upon the terms set forth in § 4027 of this title;
(3) To make commitments to purchase, and to purchase, service and sell mortgages insured by any department, agency or instrumentality of the United States, and to make loans directly upon the security of any such mortgage; provided, that the underlying mortgage loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation, purchase or leasing of residential housing for persons and families of low- and moderate-income in this State;
(4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by DSHA;
(5) To enter into mortgage insurance agreements with mortgage lenders in connection with the lending of money by such institutions to persons and families of low- or moderate-income for the purchase of housing;
(6) Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any collateral securing its loans to mortgage lenders and acquire or take possession of such collateral and sell the same at public or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the interest of DSHA therein.
§ 4027 Terms and conditions of the purchase and sale to financial institutions of mortgage loans; loans to mortgage lenders.
(a) DSHA shall from time to time adopt, modify, amend or repeal rules and regulations governing the making of such loans to mortgage lenders and the application of the proceeds thereof.
Such rules and regulations shall be designed to effectuate the general purposes of this chapter and the following specific objectives:
1. The expansion of the supply of funds in the State available for new residential mortgages;
2. The provision of the additional housing needed to remedy the shortage of adequate housing in the State and eliminate the existence of a large number of substandard dwellings; and
3. The effective participation by mortgage lenders in the program authorized by this chapter and the restriction of the financial return and benefit thereto from such program to that necessary and reasonable to induce such participation.
(b) All new residential mortgages made as required by this section shall comply with the applicable provisions of the laws of the State, and, where federal law or the law of another jurisdiction governs the affairs of the mortgage lender, shall comply with applicable provisions of such law.
§ 4028 Notification of application for Low Income Housing Tax Credit Program.
(a) Whenever a Low Income Housing Tax Credit Program application is submitted to the Delaware State Housing Authority, the Housing Director shall notify by certified and regular mail any state senators and representatives in whose districts any development project will be located. In addition, the Housing Director shall so notify the chief executive officer of any local government in whose jurisdiction any development project will be located.
(b) Whenever a preliminary ranking of Low Income Housing Tax Credit Program applications is made by the Delaware State Housing Authority, the Housing Director shall notify by certified and regular mail any state senators and representatives in whose districts any development project will be located. In addition, the Housing Director shall so notify the chief executive officer of any local government in whose jurisdiction any development project will be located.