HB654: relative to surety required on construction loans.

CHAPTER 116

HB 654 - FINAL VERSION

19Mar2019... 0939h

8May2019... 1868-EBA

2019 SESSION

19-0796

11/05

HOUSE BILL 654

AN ACT relative to surety required on construction loans.

SPONSORS: Rep. Butler, Carr. 7

COMMITTEE: Commerce and Consumer Affairs

AMENDED ANALYSIS

This bill grants discretion to the housing finance authority to require bonds, bond equivalents, or any other surety to assure performance on contracts awarded.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2019... 0939h

8May2019... 1868-EBA 19-0796

11/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to surety required on construction loans.

Be it Enacted by the Senate and House of Representatives in General Court convened:

116:1 Housing Finance Authority; Bonds by Certain Mortgagors. Amend RSA 204-C:10 to read as follows:

204-C:10 Bonds by Certain Mortgagors. On all construction loans for the construction or rehabilitation of 11 or more dwelling units, as defined by the authority pursuant to adopted rules, the authority shall require bonds to be furnished by the mortgagor, [or] an equivalent escrow or letter of credit arrangement supervised by the authority, or any other surety sufficient to assure performance by the contractor party to the contracts awarded to carry on such work, and to assure payment out of the construction loan funds for all labor and materials for which claimants would be able to claim a mechanic's lien pursuant to RSA 447.

116:2 Area of Operation; Sole Statewide Public Housing Agency. Amend RSA 204-C:11 to read as follows:

204-C:11 Area of Operation; Sole Statewide Public Housing Agency. The area of operation of the authority shall be the entire state. The authority is a public housing agency as defined in the United States Housing Act of 1937. The authority is the only statewide public housing agency and is the sole entity authorized in New Hampshire to undertake any statewide contract administration for section 8 project housing assistance contracts issued under the United States Housing Act of 1937. The authority may subcontract such work to any other entities it determines, in its sole judgment, to be qualified to perform the work.

116:3 Effective Date. This act shall take effect 60 days after its passage.

Approved: June 21, 2019

Effective Date: August 20, 2019