(1) A cabinsite lease will be issued for a period not to exceed 15 years unless the cabinsite lessee demonstrates a need for a longer period for loan security purposes, in which case the new lease may be issued in the discretion of the department for a period up to five years longer than the term of the loan up to a maximum lease period of 35 years.
(a) Demonstration of need shall be in the form of a request from the lender asking for the extended lease term.
(b) A cabinsite lease shall expire on February 28, thirty-five years or less from the beginning date of the lease.
(c) Lease terms longer than 15 years are intended for loan security of dwelling improvements, not ancillary improvements such as septic tanks, wells, garages, and outbuildings.
(d) The loan amount shall be a minimum of 15 percent of the value of the dwelling improvements.
(e) The lender shall provide proof of the loan and the loan terms to the department.