(a) The board of directors of the Housing Development Fund may create and establish a special revolving fund of moneys made available by appropriation, grant, contribution or loan, to be known as the land development fund and to be governed, administered and accounted for by the directors, officers and managerial staff of the Housing Development Fund as a special purpose account separate and distinct from any other moneys, fund or funds owned and managed by the Housing Development Fund.
(b) The purpose of the land development fund is to provide a source from which the Housing Development Fund may finance development costs and land development in this state by making loans or grants therefrom, such loans to be with or without interest and with such security for repayment as the Housing Development Fund deems reasonably necessary and practicable, or by expending moneys therefrom, for development costs and land development in this state.
(c) The Housing Development Fund may invest and reinvest all moneys in the land development fund in any investments authorized under section six of this article, pending the disbursement thereof in connection with the financing of development costs and land development in this state.
(d) No loans shall be made by the Housing Development Fund from the land development fund except in accordance with a written loan agreement which shall include, but not be limited to, the following terms and conditions:
(1) The proceeds of all such loans shall be used only for development costs and land development;