Sec. 2306.272.  HOUSING SPONSOR INVESTMENTS.  (a)  A principal or stockholder of a housing sponsor may not earn, accept, or receive a per annum return on an investment in a housing development financed by the department greater than that allowed by department rule.
(b)  A housing sponsor's equity in a housing development is the difference between the mortgage loan and the total housing development cost.
(c)  The department shall establish a housing sponsor's equity when the final mortgage advance is made.
(d)  For the purposes of this section, the amount established under Subsection (c) remains constant during the life of the department's mortgage on the development, except for additional equity investment made by the sponsor with the department's approval or at its order.
(e)  In this section, "housing development costs" has the meaning assigned by Section 2306.271(d).
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.