Maryland Administrative Code

.07 Loan Terms — General. A. Maximum Loan Amount. A program loan when aggregated with any other debt secured by the group home may not exceed the lesser of: (1) Either: (a) 100 percent of the appraised value of the property after modification, for program loans secured by a first…

.08 Loan Conditions — General. A. Environmental Review. (1) A Project financed by a program loan shall comply with applicable local, State, and federal environmental laws and regulations. (2) Group home sponsors may be required, at the discretion of the Department, to conduct a s…

.09 Subordinate Loans. In addition to the requirements of Regulations .07 and .08 of this chapter, for program loans secured by a subordinate mortgage or deed of trust, the borrower shall obtain from each superior mortgagee a written agreement, in the form acceptable to the Depar…

.10 Deferred Loans. A. In addition to the conditions and requirements of Regulations .07—.09 of this chapter, deferred loans shall comply with the requirements of §§B—D of this regulation. B. Deferrals. The loan documents may provide for deferred payments of principal or interest…

.11 Limited Return on Equity. A. As a condition of any group home loan, the borrower is required to meet the conditions of §B, C, or D of this regulation. B. Equity Participation. (1) Except as provided in §B(2) of this regulation, the borrower shall remit to the Department, an a…

.12 Loan Applications. A. Limitations. (1) The Department may specify, from time to time, the type of applications it will consider, and may limit, during any period, the type of applications it will receive. (2) Applications may be limited on the basis of: (a) The type of sponso…

.13 Loan Processing. A. Eligibility Determination. (1) An application is subject to an initial review to make a preliminary determination of the eligibility of the applicant and the project. (2) If an applicant is eligible, appropriate verification forms shall be distributed, cre…

.14 Contractor Requirements. A. General Requirements. A contractor entering into a contract for a project shall: (1) Meet all applicable State and local licensing requirements; (2) Be of good reputation, financially sound, and fully qualified to perform the required work outlined…

.15 Construction Process. A. General. (1) As required by applicable codes and rehabilitation standards, building permits shall be obtained before loan closing, and are required to be posted at the project before the beginning of construction or modification. (2) Work done, materi…

.16 Loan Payments. A. Payments Generally. (1) Loan funds may not be disbursed if there is any arrearage of interest payments or escrows required by the loan. (2) Loan proceeds designated to finance modification or construction costs shall be held in escrow by the Department and d…

.17 Certification of Income. A. The group home sponsor shall obtain, before initial occupancy and every year after that, a completed income certification form from all persons of lower income who will occupy the group home. Initial certification and periodic certification of inco…

.18 Nondiscrimination; Drug and Alcohol Free Workplace. A. A 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 as permitted …

.19 Books and Accounts. A. Borrowers, contractors, and subcontractors shall maintain such books, accounts, and records, and shall file with the Department such financial and other reports as the Department may require from time to time. B. The books, accounts, and records in §A o…

.20 Program Administration. A. Funding. The Department shall publicize from time to time the availability of moneys to make loans. However, the Department may consider an application for a loan or may establish beginning and ending dates for the receipt of applications. B. Progra…

.21 False Statements. An applicant who knowingly makes or causes to be made a false statement or report for the purpose of influencing any action of the Department on a loan application or for the purpose of influencing any action of the Department affecting a loan already made i…

.01 General. These regulations prescribe the policies, procedures, and authorizations for establishing and administering a program to assist in financing improvements to residential dwellings throughout the State through the purchase of loans from lending institutions or through …

.02 Objective. The objective of the program is to provide financing assistance to encourage improvements to residential dwellings including the installation of property improvements, energy conservation improvements, and solar energy systems to upgrade and improve the livability …

.03 Definitions. A. Terms defined in the Act have the meanings set forth in the Act. In addition, the terms set forth below have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland, a…

.04 Eligible Borrowers. A. For loans made to improve single family properties, each borrower shall meet the following requirements: (1) Be a natural person; (2) Own the property in fee simple or under a ground lease; (3) Occupy or intend to occupy, by the earlier of the date of c…

.05 Eligible Properties. A. All properties for which a borrower receives a loan under the program shall meet the following requirements: (1) The property shall be located in Maryland; (2) The property shall be a permanent structure used primarily for year-round residential use; (…

.06 Eligible Improvements. A. Proceeds of property improvement loans may finance any improvement, alteration, addition, and repair that substantially protects or improves the basic livability of a residential property and that is eligible for financing under the regulations and r…

.07 Loan Insurance Requirements. A. The Administration may require that each loan be subject to a loan insurance policy that provides coverage for the Administration in the case of a loan default with terms and conditions that the Administration approves. B. If loan insurance is …

.08 Loan Terms, Limits, and Requirements. A. Loans originated or purchased by the Administration shall meet the following terms and conditions: (1) The Administration shall establish or determine an interest rate or rates and other charges and fees, if any, for loans that, togeth…

.09 Participation of Lenders. A. Lenders participating in the Program shall be approved as originators in the FHA Title I Property Improvement Program, or the applicable loan insurance program of the MHF, or any other approved loan insurer, and be in compliance with all applicabl…

.10 Participation of Political Subdivision. A. Political subdivisions or public utility companies may be authorized as agents of the Administration if they evidence the staff capacity and capability to evaluate loan applications and monitor rehabilitation undertaken pursuant to t…

.11 Allocation of Funds. A. The Administration may, in its sole discretion, allocate funds in aggregate amounts to lenders, political subdivisions, or the Administration between loans for single family properties and loans for multifamily properties. B. When applicable, funds wil…

.12 Additional Requirements for Multifamily Properties. Loans for multifamily properties insured by the MHF multifamily insurance program shall meet the following requirements: A. The sum of the original principal amount of the loan and total amount of prior outstanding indebtedn…

.13 Loan Applications, Processing, and Purchase Procedures. A. Applications shall be made upon form documents required by the Administration. Sufficient information and documentation shall be provided to determine the extent, if any, to which the project will change the type of u…

.14 Loan Servicing. Loans shall be subject to a loan servicing agreement to be prepared by the Administration. The agreement shall establish the procedures for the servicing of loans and may permit the deduction of a servicing fee by the servicer from the proceeds of loan repayme…

.15 Supplemental Programs. This Program is intended to work in conjunction with local, State, and federal programs to the maximum degree possible.

.16 Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act or the trust indenture if: A. Conformance to the requirement of any federal agency in connection with any rehabilitation with resp…

.01 General. A. Authority. These regulations are adopted under the provisions of the Community Development Administration Act, Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland. B. Purpose. These regulations are intended to promote the pur…

.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 2, Annotated Code of Maryland. (2) “Administration” means the Community Development Administration,…

.03 Eligible Sponsors. Sponsors shall meet all of the following requirements to qualify for a loan: A. Be a nonprofit organization; B. Be in good standing and be qualified to do business in Maryland; C. Have all necessary legal and corporate authority to incur the obligations of …

.04 Eligible Projects. A. The project shall be a special housing facility, as defined in Regulation .02B(11) of this chapter. B. Fifty-one percent of the residents of the project, other than supervisory personnel, shall be families of limited income. C. Upon closing the loan, the…

.05 Income Limits. A. The Secretary shall establish upper income limits for families of limited income taking into consideration factors including: (1) The amount of the total income of the families available for housing needs; (2) The size of the family; (3) The cost and conditi…

.06 Eligible Uses and Costs. A. The Administration may make loans as follows, subject to the requirements of the Internal Revenue Code if the interest on the bonds used to finance the loans is exempt from federal income taxation: (1) Construction mortgage loans in conjunction wit…

.07 Loan Terms—General. A. For acquisition, construction, reconstruction, rehabilitation, and improvement loans, the Administration may lend up to an amount which does not exceed the lesser of: (1) 75 percent of the appraised market value of the project; or (2) The total cost of …

.08 Loan Terms—Public Purpose Restrictions. A. Limited Income Occupancy. The sponsor shall execute a recorded agreement stating that as long as the loan is outstanding, or such longer period of time as the Administration may require, not less than a specified number of occupants …

.09 Loan Conditions. A. Appraisal. (1) The Administration shall order an appraisal or require one to be ordered by the sponsor. (2) The appraisal shall be performed by an appraiser acceptable to the Administration and shall show the current value of the property and the expected …

.10 Loan Documentation. A. The Administration shall prescribe the form and content of all loan documents. The loan documents shall contain any terms and conditions that the Administration considers advisable. Loan documents shall be prepared by the Administration and may not be r…

.11 Application. A. Form and Content of Application. Applications for loans are to be made on forms prescribed by the Administration, and should include all supporting documentation specified in the check list included with the application. B. Rejection of Applications. If the Ad…

.12 Processing Procedures. A. Commitment for Insurance. Before issuing a commitment for a loan, the Administration shall have secured a mortgage insurance commitment. B. Commitment. (1) Except in the case of an emergency when urgent action is required, the Director shall submit a…

.13 Loan Closing Procedures—All Loans. A. The sponsor shall furnish or cause to be furnished to the Administration and the Office of the Attorney General satisfactory evidence of compliance with the terms and conditions of the loan before closing of the loan. B. The Administratio…

.14 Loan Procedures—Construction or Rehabilitation. A. Construction Period Disbursements. If the loan finances construction or rehabilitation, the Administration shall: (1) Conduct on-site inspections of the construction; (2) Make construction loan disbursements on the basis of w…

.15 Fees, Program Guidelines. A. Amounts and time of payment of application fees, construction financing fees, permanent loan commitment fees, closing fees, issuance fees, and other fees as may be required by the Administration shall be as provided in a fee schedule set forth and…

.16 Books and Accounts. A. Borrowers, contractors, and subcontractors shall maintain such books, accounts, and records, and shall file with the Administration such financial and other reports as the Department from time to time may require. B. The books, accounts, and records req…