(a) Purpose. The agency may make mortgage loans to mortgagors for such projects as in the judgment of the agency have promise of supplying well planned, well designed apartment units which will provide housing for low and moderate income persons or families or the elderly and others in locations where there is a need for such housing. Such loans may include construction loans as well as permanent loans. The agency shall require the mortgagor receiving a loan or its contractor to post labor and materials, and construction performance, surety bonds in amounts related to the project cost as established by regulation or to execute other assurances and guarantees as the agency may deem necessary and may require its principals or stockholders to also execute such other assurances and guarantees as the agency may deem necessary.

(b) Interest and Charges. The agency shall have authority to set from time to time the interest rates at which it shall make loans, consistent with the agency's cost of borrowing money, cost of operation and its responsibilities to the holders of its bonds. In connection with the making of mortgage loans and commitments therefor, and in addition to such interest charges, the agency may make and collect such fees and charges, including but not limited to reimbursement of the agency's financing costs, service charges, insurance premiums and mortgage insurance premiums, as the agency determines to be reasonable.

(c) Limited Profit. The loan shall be subject to an agreement between the agency and the mortgagor limiting the mortgagor and its principals or stockholders to such rate of return on its investment in the housing project to be assisted with a loan from the agency as shall be fixed from time to time by the agency in its regulations, which shall take into account the prevailing rates of return available for similar investments and the risks associated with the development of the project, together with factors designed to promote the objectives of providing affordable housing throughout the Commonwealth, maintaining and improving the existing housing stock and other objectives of this act. A loan may be in an amount not to exceed one hundred per cent of the project cost as approved by the agency in the case of a nonprofit mortgagor and in an amount not to exceed ninety per cent of the project costs as approved by the agency in all other cases.

(d) Use of Nondistributed Profits. Whenever a mortgagor accumulates earned surplus in addition to such reserves for replacement as the agency may require, in excess of ten per cent of the current annual rent roll for the project, the agency may require rents in the project to be reduced to the extent necessary to lower the earned surplus accumulation to such ten per cent figure in the following fiscal year.

(e) Regulatory Agreement. The loan shall be subject to an agreement between the agency and the mortgagor which will subject said mortgagor and its principals or stockholders to limitations established by the agency as to rentals and other charges, builders' and developers' profits, dividends and fees, and the disposition of its property and franchises to the extent more restrictive limitations are not provided by the law under which the borrower is incorporated or organized.

(f) Nondiscrimination. The agency shall require that occupancy of all housing financed or otherwise assisted under this act be open to all persons regardless of race, national origin, religion, gender, handicap or disability, familial status or creed, subject only to such exceptions allowable by law, and that mortgagors, contractors and subcontractors engaged in the construction, rehabilitation, sale or rental of such housing, shall provide equal opportunity for employment without discrimination as to race, national origin, religion, gender, handicap or disability, familial status or creed, subject only to such exceptions allowable by law.

(g) Amortization and Refinancing. The ratio of loan to project value and the amortization period of loans made under this act which are insured by F.H.A. shall be governed by the F.H.A. mortgage insurance commitment for each project concerned, but shall not exceed fifty years. In the case of a mortgage loan not insured by F.H.A., the ratio of loan to project value and the amortization period of loans shall be determined in accordance with regulations formulated and published by the agency.

(h) Project Cost Certification. No loan shall be made unless the mortgagor agrees (i) to certify upon completion of project construction or rehabilitation, subject to audit and determination by the agency, the actual total project cost as defined herein, and (ii) to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, subject to audit and determination by the agency, of loan proceeds received in excess of the allowable loan based upon the percentage of loan to total project cost authorized by the agency. Notwithstanding the provisions of this subsection, the agency may accept, in lieu of any certification of total project cost as provided herein, such other assurances of the said total project cost, in any form or manner whatsoever, as will enable the agency to determine with reasonable accuracy the amount of said total project cost.