Maryland Administrative Code

.01 Scope. A. These regulations apply to major capital improvement projects and public works projects to be funded by the Department or a unit of the Department with State or federal funds. B. These regulations do not apply to any project for which: (1) A valid building permit wa…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Code” means the Annotated Code of Maryland. (2) “Department” means the Department of Housing and Community Development. (3) “Interagency Economic Growth, Resource Protecti…

.03 The State Economic Growth, Resource Protection, and Planning Policy. The State Economic Growth, Resource Protection, and Planning Policy is that: A. Development shall be concentrated in suitable areas; B. Sensitive areas shall be protected; C. In rural areas, growth shall be …

.04 Requirements. The Department may fund a project if it complies with this regulation or Regulation .05 of this chapter. The project shall be determined to be consistent generally with the State Growth Policy, and demonstrate specifically that the project: A. Is located: (1) On…

.05 Extraordinary Projects. The Department may fund a project even if the project cannot meet the requirements in Regulation .04 of this chapter, if the project is determined to: A. Be warranted by extraordinary circumstances, defined as circumstances that: (1) Require emergency …

.06 Procedure. A. The determinations under Regulation .04 or .05 of this chapter shall be: (1) Evidenced by a written project report signed by the unit and the Secretary's designee; and (2) Finalized in accordance with the procedures set forth in this regulation and Regulation .0…

.07 Secretary's Determination. Before issuance of a determination approving a project, the Secretary shall execute a written determination that the project complies with Regulation .04 or .05 of this chapter and that the determination has been finalized under Regulation .06 of th…

.01 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Committee” means the Housing Finance Review Committee established by Housing and Community Development Article, §4-208, Annotated Code of Maryland. (2) “Department” means …

.02 Purpose. The purpose of the Housing Finance Review Committee is to review and make recommendations to the Secretary on certain lending and insurance programs of the Department.

.03 Scope. A. The Housing Finance Review Committee reviews and makes recommendations for, but does not approve, certain loans by the Department's Division of Development Finance as well as mortgage insurance provided by the Maryland Housing Fund, an agency in the Division of Cred…

.04 Composition of Committee. A. Upon recommendation of the Secretary, the Governor appoints seven individuals to serve as the Committee, consisting of: (1) Three employees of the Department which shall include the Deputy Secretary; (2) One employee of the executive branch of Sta…

.05 Committee Procedures. A. The Deputy Secretary shall serve as the Chairman of the Committee. The Chairman is responsible for preparing and distributing the agenda for the Committee meetings. B. Committee meetings generally are held monthly at the time and place set by the Chai…

.06 Committee Functions. The Committee shall review and make recommendations to the Secretary regarding: A. All loans in excess of $250,000 proposed to be made by the: (1) Community Development Administration, (2) Division of Development Finance, and (3) Maryland Housing Fund; B.…

.07 Project and Policy Approval. A. Except as set forth in §B of this regulation, the Secretary, or a designee of the Secretary, shall approve all loans and debt financing after receipt of the recommendation of the Committee. B. The Secretary may approve a specific loan request w…

.01 Purpose. It is the purpose of the Revenue Bond Advisory Board to provide independent advice and expertise to the Department of Housing and Community Development on the issuance of revenue bonds by the Department, or any of its agencies, and the policies and procedures related…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Board” means the Revenue Bond Advisory Board. (2) “Department” means the Department of Housing and Community Development. (3) “Deputy Secretary” means the Deputy Secretary…

.03 Responsibilities of the Board. A. Before the earlier of the public distribution of a preliminary official statement or submission of a preliminary official statement to any rating agency for review, the Board shall review and make recommendations to the Department regarding t…

.04 Composition and Tenure of the Board. A. The Secretary shall appoint seven persons to serve as the Board. The Board shall be composed of: (1) Two representatives from the Department; (2) Two executive branch representatives, with one from an executive agency of State governmen…

.05 Operating Procedures. A. The Deputy Secretary shall serve as the Chairman of the Board. The Chairman is responsible for preparing and distributing the agenda for the Board meetings. B. Board meetings generally shall be held monthly at the time and place set by the Chairman. M…

.06 Approval of Bond Issuance. A. Except as set forth in §B of this regulation, the Secretary, or a designee of the Secretary, shall approve in writing the amount, time, and type of revenue bonds to be issued after receipt of the recommendation of the Board. B. The Secretary may …

.01 General. These regulations set forth the policies, procedures, and authorizations for making preferred interest rate loans to households of limited income.

.02 Scope. A. The Preferred Interest Rate Loan Program is designed to provide: (1) Financing for eligible homebuyers to purchase, or purchase and rehabilitate, a home; (2) Refinancing to eligible homeowners who, because of certain exceptional adverse personal or economic circumst…

.03 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 8, Annotated Code of Maryland, as amended. (2) Adjusted Annual Income. (a) “Adjusted annual income”…

.04 Eligible Residences. A. An eligible residence: (1) Is comprised of one to four residential units; (2) Is real property owned by the borrower in fee simple or under a freely transferable, perpetually renewable, ground lease which permits the lessee to transfer the leasehold in…

.05 Eligible Borrowers. A. In order to be eligible for a loan to finance the purchase, or the purchase and rehabilitation, of an eligible residence comprised of one residential unit, a borrower: (1) Shall be all those persons who will hold title to the eligible residence; (2) Sha…

.06 Eligible Uses. A. The proceeds of a loan made to purchase an eligible residence may be used to pay for: (1) The purchase price of the eligible residence; and (2) Closing costs. B. The proceeds of a loan made under Regulation .05A and B of this chapter to purchase and rehabili…

.07 Short-term Acquisition, Construction, and Rehabilitation Loans. A. For short-term loans to finance the acquisition and construction, or acquisition and rehabilitation together with demolition or lot consolidation, or acquisition and rehabilitation, of residential units, an ap…

.08 Rehabilitation Procedures—Standards and Inspections. A. Standards for Rehabilitation Work. The rehabilitated property shall satisfy: (1) State and local planning, zoning, and building codes and other applicable laws; and (2) Standards established by the Program. B. Rehabilita…

.09 Rehabilitation Procedures—Payment. A. Completion of Work Required. Except as provided in §B of this regulation, payments shall be made only for work completed. Payments may not be made for material delivered to the site but not incorporated into the project. B. Advances. (1) …

.10 Maximum Loan Amounts. A. Secretarial Determination of Maximum Loan Amounts. (1) The Secretary shall determine limits on loan amounts from time to time. (2) In making the determinations in §A(1) of this regulation, the Secretary may consider factors including the following: (a…

.11 General Loan Terms and Requirements. A. Interest Rates. (1) The initial preferred interest rate for a loan shall be: (a) Not higher than the prevailing private market rate as determined by the Program; and (b) A rate, which may be as low as 0 percent, set by the Program in re…

.12 Property Insurance Required. A. Hazard Insurance. The borrower shall maintain fire and extended coverage insurance at the borrower's expense in an amount equal to the lesser of the: (1) Replacement value of the improvements, as determined by the appraisal required under this …

.13 Periodic Review of Household Income; Adjusting the Interest Rate. A. Applicability. This regulation applies to loans made to owners of one-to-four unit properties. B. Adjustable Interest Rates. (1) The initial preferred interest rate on the loan may be adjustable. (2) Loans s…

.14 Loan Processing. A. Applications. (1) To apply for a loan, an applicant shall: (a) Submit a completed application in the form that the Department requires; (b) Supply a copy of the latest income tax return, if appropriate, for each member of the household, or other available …

.15 Forward Commitments to Developers. A. For eligible developers of eligible homes, the Department may enter into forward commitments to reserve, for a fixed period of time, a fixed amount of Program funds. The Program funds reserved in the forward commitment shall be used to fi…

.16 Initiatives and Special Programs. A. The Department, in its discretion, may set aside Program funds for initiatives and special programs, whereby funds may be made available under special terms set by the Administration. B. Forward Commitments. (1) The Department may enter in…

.17 Power of the Department. A. The Department may: (1) Assign a mortgage for value; (2) Release a mortgage; (3) Foreclose a mortgage; (4) Acquire property securing a loan in default; (5) Encumber, sell, or otherwise dispose of property acquired in connection with a loan in defau…

.18 Program Operation and Administration. A. Loan Documentation. Loans shall be made using standard forms prescribed by the Program. B. Program Fund Allocations. (1) The Secretary may reserve all or any portion of the Program funds at any time for any purpose. (2) The Secretary a…

.19 False Statements. A borrower who knowingly makes or causes to be made any 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 Department's action, is subject …

.01 General. These regulations govern the use of proceeds from the issuance of the Community Development Administration's mortgage revenue bonds or from other sources of financing. Proceeds of the bonds and other financing are used to provide mortgages at interest rates below rat…

.02 Scope. The Administration may purchase mortgage loans from lenders, make certain direct mortgage loans for eligible residences, or make forward commitments to make or to purchase permanent mortgage loans for eligible residences to be constructed or rehabilitated by developers…

.03 Definitions. A. Terms appearing in the Act have the meanings defined there and, in addition, the meanings used in this chapter. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland. (2) “Administration” m…

.04 Eligible Borrower. A. To be eligible for a mortgage loan to be financed through the Program, a borrower is required to provide affidavits and other verification of compliance with ownership, occupancy, and financial requirements. B. Ownership and Occupancy Requirements. (1) P…

.05 Eligible Residence. A. The Administration may purchase mortgage loans secured by eligible residences comprised of one to four residential units as described in this regulation. B. Loans Secured by Two to Four Unit Residences. (1) The Administration may purchase a loan secured…

.06 Maximum Mortgage Loan Amount. A. Maximum Mortgage Loan Calculation. (1) The original principal amount of a mortgage loan to be made or purchased by the Administration, less any permitted cost set forth in §A(2) of this regulation, may not exceed the lowest of: (a) The maximum…

.07 Other Loan Terms and Conditions. A. Interest Rate. The interest rate or rates on mortgage loans shall be set from time to time by the Administration taking into account: (1) The interest payable by the Administration on its bonds; (2) Administrative expenses of the Program; (…

.08 Refinancing. A. Tax-Exempt Bond Refinancing. In order to comply with the Code, mortgage loans financed with tax-exempt mortgage revenue bonds may not be used to refinance an existing mortgage or a land installment contract except: (1) In limited circumstances involving constr…