(a) Increase in Benefits to Developers Who Make Funds Available

for Affordable Housing. In order to initiate the immediate construction of affordable housing on Guam, the Board is authorized to recommend to I Maga=lahen Guahan and I Maga=lahen Guahan is authorized to issue to each of those developers of hotels or tourist facilities which qualify a qualifying certificate with a rebate of up to one hundred percent (100%) of all income tax paid to the government of Guam by the Beneficiary on income received from the activities of the hotel or tourist facility identified in the qualifying certificate, which rebate may be authorized for a period not to exceed twenty

(20)consecutive years from the effective date of the qualifying certificate.

(b)Cash Loans by Applicants for Enlarged Benefits. In order to qualify for the increased percentage of rebate of income tax as authorized by this § 70109, an applicant therefor must agree to loan to the affordable housing fund (AHousing Fund@) to be established by the Corporation the sum of Five Million Dollars ($5,000,000) for a period of up to five

(5)years. The applicant shall make such loan to the Housing Fund contemporaneously with the issuance of the qualifying certificate by I Maga=lahen Guahan. Such loan shall be repaid to the applicant without interest, as provided in subparagraph (c), infra. Until such loan is repaid COL120106 CH. 70 HOTEL DEVELOPMENT to the Beneficiary, any interest accrued thereon while the loan is in the Housing Fund is the property of the Housing Fund.

(c)Housing Fund. The Corporation shall establish on its books, separate and apart from its other funds, the Housing Fund described in Subparagraph (b), supra. Utilizing only the interest on the loans in the Housing Fund, the Corporation, working in cooperation with the Guam Housing Corporation (>GHC=), shall design and develop the necessary supporting infrastructure for affordable housing projects, such as, but not limited to, roads, waterlines, sewer lines, power and telephone lines and other utilities. Each loan in the Housing Fund shall be repaid in full without interest to the Beneficiary no later than five

(5)years from the date the loan was deposited in the Housing Fund.

(d)Applicability of Other Provisions of the QC Law. The provisions of Chapter 58 of Title 12 of the Guam Code Annotated, respecting qualifying certificates, shall apply to the qualifying certificates issued under this § 70109, except with respect to the maximum percentage of rebate of income tax permitted. A Beneficiary may be a Subchapter AS@ Corporation, a trust, partnership or limited liability company, and it must otherwise comply with the requirements of that Article with respect to the filing of applications and the publication of notice. A hotel or tourist facility developer which would qualify for assistance under the other provisions of Chapter 70 of this Title can, with respect to a rebate of its income tax, either agree to loan Five Million Dollars ($5,000,000) and obtain a maximum of one hundred percent (100%) rebate for a maximum of twenty

(20)years, or not make any such loan, and receive a maximum rebate of seventy-five percent (75%) for a maximum period of twenty

(20)years.

(e)Affordable Housing Program. The Corporation shall, to the extent feasible, achieve economies of scale in its development of infrastructure for affordable housing, by utilizing as few contractors, architects and engineers as possible, and by utilizing modern construction techniques so as both to speed the construction of such infrastructure and lower its cost.