Maryland Administrative Code

.08 Availability of Future Funding. The Department shall establish the maximum dollar amount of equity payments authorized for disbursement to each borrower for each fiscal year. Because Program funding is appropriated annually by the legislature, there is no assurance that an ap…

.09 Loan Closing. A. Time and Place. The loan closing shall be scheduled at a time and place acceptable to the borrower and the Program and conducted in a manner acceptable to the Program. B. Title Insurance. The borrower shall provide at closing a standard American Land Title As…

.10 Program Administration. A. Forms and Documentation. The application and the loan documents shall be made upon standard forms prescribed by the Program. B. Application Fee. The Program may require an application fee for processing the loan. C. Program Fund Allocations. It is t…

.11 False Statements. A borrower who knowingly makes or causes to be made any material misstatement or material omission of fact, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Department's action, in any state…

.12 Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if: A. Conformance to the requirements of any federal, State, or local programs in connection with a loan necessitates waiver or v…

.13 Severability. The provisions of these regulations are severable. A judgment by any court of competent jurisdiction finding or declaring that any provisions of these regulations or the application of any provision to any person or circumstance is invalid does not affect the va…

.01 General. A. These regulations prescribe the policies, procedures, and authorizations to make or purchase loans financed through the Special Purpose Investment Fund (SPIF) of the Community Development Administration. B. The Special Purpose Investment Fund was created and estab…

.02 Scope. These regulations apply to mortgage loans financed through the Mortgage Yield Account of the Fund. The loans: A. Are not subject to the Internal Revenue Code; B. Are mortgage investments under the General Bond Certificate as described in Regulation .03B(13) of this cha…

.03 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development, Title 4, Subtitle 2, Annotated Code of Maryland. (2) “Administration” means the Community Development Administration, an agen…

.04 Purposes. A. The Administration may use funds available under the Program for any of the purposes set forth in this regulation. B. Preferred Uses. (1) In the event of limited funds, the uses described in §§B(2)—(5) of this regulation may be given preference over the standard …

.05 Eligible Borrower. An eligible borrower shall: A. Be one or more members of a household that owns or is purchasing, and shall hold title to, an eligible residence as set forth in Regulation .06 of this chapter; B. Be 18 years old or older, unless married to a joint borrower w…

.06 Eligible Property. A. Requirements. An eligible property shall: (1) Contain one to four residential units, one of which is intended to be occupied by the borrower as the borrower's primary residence; (2) Be real property owned by the borrower in fee simple or under a freely t…

.07 Eligible Uses. A. Subject to the limitations of Regulation .08B of this chapter, the proceeds of a loan made under the Program may be used for payment of: (1) Purchase price of the eligible residence; (2) Down payment and settlement costs; (3) Rehabilitation costs described i…

.08 Loan Terms—Loan Amount. A. Limits. (1) The maximum loan amounts under the program shall be within limits set from time to time by the Secretary. (2) For a residence containing one dwelling unit the limit, as of April 1, 1991, is 150 percent of the maximum loan amount for a ne…

.09 Loan Terms and Requirements—General. A. Each loan financed by the Fund shall comply with the conditions of this regulation. B. Security. (1) Each loan shall be secured by a mortgage or deed of trust that shall be: (a) In a lien position required by the Administration; and (b)…

.10 Operations and Administration. A. Forms and Documentation. (1) The application and the loan shall be made upon form documents prescribed by the Administration. (2) If application is being made for a forward commitment of permanent take-out financing by a developer, sufficient…

.11 False Statements. A borrower who knowingly makes or causes to be made any false material statement or material misstatement of fact, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Administration's action, s…

.12 Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if: A. Conformance to the requirements of any federal, State, or local programs or of the General Bond Certificate in connection w…

.01 General. This chapter is adopted under Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland, to implement a program of community development projects in the State to be known as the Live Near Your Work (LNYW) Program. The LNYW Program is …

.02 Objectives. The objectives of the Program are to: A. Stimulate homeownership in designated neighborhoods; B. Promote public/private partnerships to strengthen communities; C. Support State transportation policy by promoting shorter commuting times; and D. Support employer com…

.03 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) Closing Costs. (a) “Closing costs” means costs incurred in connection with purchasing an eligible residence. (b) “Closing costs” include: (i) Credit report fee; (ii) Apprai…

.04 Application and Approval Process for Local Jurisdictions. A. Application Process. (1) The Department may set periodic deadlines for applications from local jurisdictions. (2) The local jurisdiction shall submit an application to the Department in the form and containing the i…

.05 Eligible Employers. A. To be eligible to participate in the LNYW project operated by the local jurisdiction, an employer shall: (1) Complete any application required by the local jurisdiction or the Department; (2) Except as provided in §F(2) of this regulation, provide a min…

.06 Eligible Employees. A. An eligible employee shall: (1) Comply with the Program requirements and terms for receiving an LNYW grant; and (2) Respond to periodic surveys for Program evaluation purposes including a survey to be completed at settlement. B. Only one person per hous…

.07 Eligible Uses of Program Grants and LNYW Grants. A. Program grants from the Department to the local jurisdiction shall be used solely to fund $1,000 of an LNYW grant to an eligible employee. B. Program grants from the Department to the local jurisdiction may not be used to: (…

.08 Funding Procedures and Reporting Requirements. A. At the closing on an eligible residence, the local jurisdiction shall provide funds for the local jurisdiction's contribution and the Department's contribution to the LNYW grant. B. Before agreeing to fund an LNYW grant to an …

.09 Program Administration. A. The Department may establish operational handbooks or manuals governing matters relating to the Program including descriptive statements of Program procedures and policies. B. The Secretary may delegate to the Assistant Secretary for Neighborhood Re…

.01 General. These regulations prescribe the policies, procedures, and authorizations for making construction loans and providing credit enhancement for the construction of net-zero homes and low-energy homes.

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 4, Subtitle 20, Annotated Code of Maryland. (2) “Administration” means the Community Development Administration…

.03 Eligible Borrowers. To qualify as an eligible borrower under the program, an applicant shall: A. If a nonprofit organization, corporation, or partnership, be in good standing and qualified to do business in Maryland; B. Have the legal capacity and all necessary authorization …

.04 Eligible Projects. Eligible projects shall be: A. A low-energy or net-zero home upon completion; B. Properly zoned for residential use; C. Rehabilitated or constructed in accordance with the applicable federal, State, and local building, zoning, environmental, health, and hou…

.05 Loan Terms and Requirements. A. Proceeds of the loan may be used for the: (1) Acquisition of a project; (2) Construction and development costs of a project; and (3) Closing and settlement costs associated with the financing and acquisition of the project. B. The Department sh…

.06 Liability and Other Insurance. A. The Department may require the borrower to obtain any of the following types of insurance, issued by a company that is approved by the State Insurance Commissioner, depending on the size of the project and risks to the Department: (1) Owner's…

.07 Additional Requirements. A. In addition to a promissory note and deed of trust, the Department may require the borrower to execute or provide any of the following documents: (1) A loan agreement; (2) An agreement and declaration of covenants and restrictions; (3) A disburseme…

.08 Loan Application and Processing Procedures. A. The Department may accept applications on a first-come, first-served basis or through competitive rounds to be announced by the program periodically. B. A loan application shall be made upon standard forms prescribed by the Depar…

.09 Credit Enhancement. A. The Department may provide credit enhancement on a loan made by a lender for a project that meets the requirements of Regulation .04 of this chapter. B. A project financed by a loan that is credit-enhanced by the Department shall: (1) Be a net-zero home…

.10 Participation with Private Lenders. A. The Department may participate with a lender to collectively lend money for the construction of net-zero and low-energy homes by: (1) Making loans on a project, including subordinate loans; (2) Pooling loan funds; (3) Entering into loan …

.11 Post-Construction Verification. A. Each project shall pass an inspection and verification test that the home was constructed to the standards to achieve the level of energy usage approved by the Department. B. The Department may require a third party to inspect and verify tha…

.12 Minority Business Enterprises. A. It is the goal of the Department to increase program participation by minority business enterprises certified under State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland. B. To increase participation by minor…

.13 Nondiscrimination; Drug and Alcohol Free Workplace. A. An applicant, borrower, or contractor may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age …

.14 Program Administration. A. Program Handbook. The Department may establish from time to time program guidelines or manuals containing internal underwriting standards and loan processing requirements. B. Fees. The Department may charge an applicant, borrower, or lender customar…

.01 General. These regulations prescribe the policies, procedures, and authorizations for making loans for the rehabilitation of residential buildings with four or fewer units under Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland.

.02 Objective. The basic objectives of the Program are to: A. Make loans to families of limited income or sponsors to finance the rehabilitation of buildings with four or fewer units to eliminate health, safety, and property maintenance deficiencies and ensure compliance with app…

.03 Definitions. A. The terms appearing in Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, have the meanings defined there and, in addition, the meanings used in these regulations. B. Terms Defined. (1) “Accessory dwelling unit” means a…

.04 Eligible Borrowers. A. To qualify as an eligible borrower under the Program, the requirements set forth in §§B and C of this regulation shall be met jointly and separately if more than one individual is applying for a loan. B. Single family owner-occupants shall: (1) Be a “fa…

.05 Eligible Uses. A. Buildings shall meet the following requirements: (1) Be located within the State; (2) Contain not more than four residential units or shared living unit facilities for more than four households; (3) Be properly zoned for the proposed use; (4) Be in need of r…

.06 Loan Terms and Conditions — General. A. Loans shall be made on terms conforming to the requirements in §§B—K of this regulation. B. Interest Rate. (1) The interest rate to be paid on loans may be at preferred rates set by the Department from time to time, as required by the A…

.07 Loan Terms and Conditions — Deferred Loans. A. In addition to the conditions and requirements of Regulation .06 of this chapter, deferred loans for residential buildings of four or fewer units shall meet the requirements in §§B—E of this regulation. B. Eligibility. The Depart…

.08 Loan Terms and Conditions — Secured Loans. A. In addition to the conditions and requirements of Regulations .06 and .07 of this chapter, secured loans shall meet the requirements of §§B—F of this regulation. B. Deed of Trust. A mortgage or deed of trust shall secure repayment…

.09 Loan Application. A. Application Procedure Generally. The Department shall establish application processes and procedures for local administrators that will facilitate the application process and best serve the needs of the political subdivisions and the State. These procedur…