Section 11-11-157 - Restrictions on profit distribution by housing sponsor receiving loan. - South Dakota Statutes

11-11-157. Restrictions on profit distribution by housing sponsor receiving loan. The authority may provide by rules and regulations, or in the agreement required by § 11-11-156, that a housing sponsor may not make distributions of income or earnings from a housing development or housing project financed by the authority in any one year in excess of such percentage as the authority shall prescribe of such housing sponsor's equity in such development nor shall any of the principals or stockholders of such housing sponsor at any time earn, accept or receive a return greater than such percentage of his investment in any housing development financed by the authority. Projects whose rents or income limits applicable to project residents are established, subsidized or regulated by federal law, or whose loans are insured or guaranteed by the federal government shall be subject to an agreement between the authority and the housing sponsor which will subject said sponsor and its principals or stockholders, if any, to those limitations established by federal law for distributions of income or earnings from a housing development or housing project financed by the authority in any one year or such lesser percent as prescribed by the authority.

Source: SL 1973, ch 180, § 19 (9); SDCL Supp, § 28-19-135; SL 1992, ch 105, § 2; SL 1995, ch 80, § 25.