Maryland Administrative Code

.03 Eligible Grantees. To qualify as an eligible grantee under the Program, single family owner-occupants shall: A. Be a “family of limited income” as defined in Regulation .02B of this chapter; B. Own the eligible property in fee simple or under a freely transferable ground rent…

.04 Eligible Buildings. A. Buildings shall meet the following requirements: (1) Be located within the State; (2) Contain not more than four residential units; (3) Be properly zoned for the proposed use; (4) Be in need of modifications considered eligible under this chapter; (5) B…

.05 Eligible Uses. A. Grant proceeds may only be used for the cost, labor and materials for modifications to an eligible building. B. Grant proceeds may not be used to pay for taxes, insurance, mortgage payments, or nonessential repairs. C. If a building contains between 2—4 dwel…

.06 Grant Terms and Conditions — General. A. The Department shall enter into a grant agreement with each grantee. B. The Department may establish other terms and conditions in the grant agreement, and any other documents related to the grant, which the Department considers reason…

.07 Grant Application. A. The Department may operate the Program or establish procedures that allow a local administrator to accept applications and approve grants under the Program. B. Application Forms. Grant applications shall be made upon standard forms prescribed by the Depa…

.08 Grant Approval and Disapproval. A. Initial Eligibility Determination. (1) Each application shall be submitted to the Department or local administrator, as applicable, for initial review to make a preliminary determination of the eligibility of the applicant and the project. (…

.09 Grant Closing. A. The grant closing shall be scheduled by the Department or the local administrator. B. Grant Documents. (1) Grant document forms shall be provided by the Program and may not be altered. (2) Grant documents shall be executed on behalf of the Department by an A…

.10 Work Requirements. A. Contractors and their subcontractors shall meet the requirements of COMAR 05.04.01.13. B. Work done, materials supplied, and construction procedures employed shall comply with all contract documents, applicable codes and standards, including those set fo…

.11 Contract Documents. A. There shall be no modification of any contract documents without the prior written consent of the Department or the local administrator, as evidenced by an approved change order, executed by: (1) The contractor; and (2) The grantee. B. Contract document…

.12 Grant Disbursements. A. Monitoring of Disbursements. (1) The local administrator or Department shall monitor grants and disbursement of grant funds during rehabilitation to assist grantees and to assure that grant funds are properly used. (2) The local administrator or Depart…

.13 Nondiscrimination. A. A contractor, local administrator, or subcontractor may not discriminate against any person on the basis of race, color, religion, national origin, sex, sexual orientation, gender, marital status, physical or mental handicap, or age, except with regard t…

.14 Books and Accounts. A. Grantees, 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 from time to time require. B. The books, accounts, and records shall be…

.15 General Provisions. A. The Department may establish from time to time Program guidelines containing underwriting standards, grant processing requirements, and other requirements or matters relating to the financing of grants or to Program requirements. B. The Department shall…

.01 Scope. A. This chapter prescribes the policies, procedures, and authorizations for making loans from and administering the Rental Housing Program. B. This chapter is applicable to the Maryland HOME Program (rental housing development only) as set forth under COMAR 05.12.01. C…

.02 Objectives. The basic objectives of the Rental Housing Program are to: A. Increase or preserve the supply of decent, safe, and sanitary rental housing in the State for occupancy by households of limited income by providing financial assistance for certain costs of acquiring, …

.03 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Annotated Code of Maryland, as amended. (2) “Administration” means the Community Development Administration, a unit o…

.04 Eligible Sponsors. Sponsors shall meet the following minimum requirements to qualify for a loan: A. Be in good standing and qualified to do business in the State; B. Have the legal capacity and all necessary legal authorization to incur the obligations of the loan; and C. Mee…

.05 Eligible Uses. A. Loan funds may be used for: (1) Capital assistance loans to sponsors for financing development costs of projects; (2) Loans to finance acquisition only of existing or completed: (a) Vacant projects; or (b) Occupied projects, if: (i) The rental units are not …

.06 Eligible Projects. A. Land and Improvements. (1) Land and improvements comprising a project shall meet the following minimum requirements: (a) Be located within the State; (b) When the project is complete, be in compliance with zoning requirements and applicable codes and sta…

.07 Political Subdivisions; Notice and Contribution. A. Notice. (1) For each project for which an application is received under this chapter, the Department shall provide written notice and reasonable opportunity to comment on the project to the chief executive officer or the equ…

.08 Geographic Distribution of Funds. A. It is the intent of the Department that Program funds be distributed and made available Statewide. B. The Department shall undertake best efforts to ensure some Program funds are distributed Statewide, including the following geographic ar…

.09 Sponsor’s Equity Contribution. A. For income-restricted projects, the Department may establish requirements for the amount of equity a sponsor must contribute to a project which may vary for different types of sponsors, including nonprofit sponsors. B. Sponsors of office and …

.10 Limit on Return of Equity. A. Projects may be subject to a limitation on return of equity or an equity participation agreement, at the discretion of the Department. B. Periodically, at the convenience and discretion of the Department, residual receipts held by the Department …

.11 Income Limits. A. The Secretary shall establish income limits for households of limited income and may revise the limits from time to time. The Secretary may establish different limits for different areas of the State and may establish lower limits within any area or for a pa…

.12 Restrictions on Ownership and Occupancy. A. Change of Ownership. During the loan term, the sponsor of the project may not sell, cease to own, assign, transfer, or dispose of all or any part of the sponsor’s interest in the project or the real property on which it is situated,…

.13 Prepayment. A. For an income-restricted project, if the prepayment operates to terminate the occupancy covenants for households of limited income, with the prior written approval of the Department, a sponsor may prepay a loan subject to any prohibition on prepayment contained…

.14 Loan Terms. A. Interest Rates. (1) Interest rates for each loan shall be established based on the underwriting of each project. (2) The maximum interest rate on a loan shall be a rate which does not impair the financial viability of the project or the capability of the sponso…

.15 Insurance Requirements. A. Mortgage Insurance. Mortgage insurance is not required for loans made from the Program. B. Property, Liability, and Other Insurance. (1) At or before closing of a loan, and at such other times as required by the Department, the sponsor shall provide…

.16 Environmental Review. A. Each project shall comply with applicable local, State, and federal environmental laws and regulations. B. Sponsors may be required, at the discretion of the Department, to conduct a screening of the proposed site for environmental conditions, includi…

.17 Reserves and Security. A. Reserve for Replacement. The Department may require the sponsor to make periodic payments to the Department or a senior lender for a reserve for replacement account for future repairs, maintenance, and improvement of the project. B. Appraisal. The sp…

.18 Additional Requirements for Certain Loans. A. Capital assistance loans shall meet the following additional requirements: (1) Loans shall be secured by a mortgage lien, which may be subordinate to other mortgage liens; and (2) The Department shall require the sponsor to provid…

.19 Application Submission. A. Applications for income-restricted projects shall be accepted: (1) In one or more competitive rounds to be announced by the Department annually in accordance with the procedures established in Regulation .20 of this chapter; and (2) At any time, sub…

.20 Application Review. A. Each application for an income-restricted project competing in a funding round pursuant to Regulation .19A(1) of this chapter shall be reviewed in accordance with Regulations .21 through .23 of this chapter. B. Each application for an income-restricted …

.21 Project Priority Categories. A. The Department may establish project priority categories which must be satisfied prior to review of a project for threshold criteria pursuant to Regulation .22 of this chapter. B. The project priority categories under §A of this regulation shal…

.22 Threshold Criteria. A. The Department shall establish detailed threshold criteria, including the following categories: (1) Development team requirements; (2) Occupancy requirements; (3) Marketing requirements; (4) Tenant services; (5) Provisions for persons with disabilities …

.23 Project Evaluation Criteria; State Bonus Points. A. All projects in a round which meet the requirements of Regulations .21 and .22 of this chapter shall be evaluated on a point basis, which may include the following criteria: (1) Capacity of the development team; (2) Communit…

.24 Recommendation and Approval. A. For income-restricted projects competing in a competitive round, after considering the scores under the project evaluation criteria of Regulation .23 of this chapter and the availability of resources, the Program staff shall select projects for…

.25 Reservation and Commitment. A. Reservations. All projects competing in a funding round and approved by the Secretary pursuant to Regulation .24 of this chapter shall be issued a reservation letter by the Department. The reservation letter shall include basic proposed loan ter…

.26 Rejection, Reconsideration, Modification, and Withdrawal. A. Rejection. If a loan application is rejected, the Department shall notify the sponsor in writing. The rejection letter shall state the reason the loan is rejected. B. Reconsideration. (1) A sponsor of an office and …

.27 Loan Closing and Processing. A. Initial Loan Closing. The sponsor shall furnish to the Department and its counsel satisfactory evidence of compliance with the terms and conditions of the loan before the closing of the loan. When all procedures and requirements are completed, …

.28 Signs. If requested by the Department, each sponsor shall install a sign identifying the Department as a lender on the project. The sign, at the discretion of the Department, may be supplied by the Department, but in any case shall comply with the design specifications of the…

.29 Books and Accounts. A. Sponsors, contractors, and subcontractors shall maintain the books, accounts, and records, and shall file with the Department the financial and other reports that the Department may from time to time require. B. The books, accounts, and records in §A of…

.30 Certification of Income. A. Income-restricted projects are subject to the requirements set forth in §§B—F of this regulation. B. The sponsor shall obtain signed certificates of annual income from all tenants occupying a project and shall certify annual incomes of all tenants …

.31 Nondiscrimination; Drug and Alcohol Free Workplace. A. A sponsor 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 u…

.32 Affirmative Fair Housing Marketing Plan. Each project shall submit for review and approval by the Department an affirmative fair housing marketing plan in accordance with the requirements of the Program Guide. The Department shall monitor the project’s compliance with the app…

.33 False Statements. A sponsor who knowingly makes or causes to be made a false statement or report, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Department’s action, is subject to immediate acceleration of …

.34 Waiver and Delegation. A. Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is consistent with the Act, if: (1) In the determination of the Secretary, the application of a regulation in a specific case, or in an e…

.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, as amended. B. Purpose. These regulations are intended to pro…

.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, as amended. (2) “Administration” means the Community Development Adm…

.03 Eligible Sponsors. A. Each sponsor shall meet all of the applicable requirements set forth in §§ B—I of this regulation. B. If the sponsor is a business entity, the entity shall be in good standing and be qualified to do business in Maryland. C. The sponsor shall own the prop…