The Housing Corporation is authorized to engage in the following activities when it finds that such activities will further the purposes of this Chapter and will not conflict with the encouragement and promotion of private enterprise in the territory of Guam:

(a) To encourage and promote the investment of private capital in low and moderate income residential housing in Guam. The Housing Corporation shall formulate its policies so as to encourage and promote the investment 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 organizations 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
residential subdivisions, construction of housing for 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 that 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 two percent (2%) over the costs of funds.

(2) Loans shall be made to residents of Guam to enable them to purchase or construct permanent homes which are insurable under a standard Guam Home Owner’s insurance policy to include, but not be limited to, the perils of tropical cyclones, earthquakes and fire.

(3) All loans for the purchase, construction, or purchase of land and construction of such home shall 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 to consolidate existing consumer debts with the mortgage loan, if the consolidation of such consumer debt would 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

lending institutions shall be presented upon application for a Corporation loan.

(d) (1) To encourage and promote the construction of housing units for rent within the capacity of families 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 damaged 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 qualify for a loan from the U.S. Small Business Administration sufficient to complete the earthquake repair, or from any other financial institution. First priority for such loans shall be given to those homeowners whose primary residence is mortgaged to the Housing Corporation.

(f) To encourage and promote the purchase or construction of affordable, typhoon-resistant, permanent homes by the residents of Guam who have not previously been homeowners, by utilizing a special fund to provide 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 further amended by P.L.
22-113:6. Subsection (e) added by P.L. 22-24:6 (8/31/93). Subsection (c)
amended by P.L. 24-45:3. Subsection (c) repealed and reenacted by P.L.
24-82:2. Subsection (f) added by P.L. 24-180:2.Subsection (c) amended by P.L. 26-123:7.

2017 NOTE: Subitem designations added pursuant to the authority of 1
GCA § 1606.