There is a non-lapsing Housing Investment Trust Fund ("HIT Fund" or "Fund").

In general. The purposes of the Fund are to: develop effective strategies to strengthen County neighborhoods impacted by foreclosures consistent with the adopted Prince George's County Five-Year Consolidated Housing and Community Development Plan; provide for gap financing to enable the County to support the development of new construction and preservation of existing workforce and affordable housing; provide for housing counseling, rental, down payment, closing cost, and other financial assistance for: eligible persons to retain or purchase vacant, abandoned, and foreclosed properties; and critical public service workers to ensure that these workers are able to live in the communities that they serve; acquire, rehabilitate, resell or lease-purchase of all for sale properties in Prince George's County to include: vacant, abandoned and foreclosed properties to eligible persons, not-for-profit organizations and for-profit affordable housing providers; provide for land banking of vacant, abandoned and foreclosed properties in the County; and to otherwise reduce and minimize the occurrence of foreclosures by coordination and use of County, State and Federal resources and programs; and to increase and preserve the supply of safe and affordable homeownership opportunities for the purpose of growing the County's tax base revenue. Financial assistance. The Fund may provide financial assistance in the form of loans and grants to finance programs to meet the goals of this Division for the benefit of existing and potential homeowners or renters, not-for-profit organizations and for-profit affordable housing providers in Prince George's County. Homeownership Equity Program; establishment, funding, administration. The purpose of the Homeownership Equity Program is to finance the costs to increase access to affordable homeownership among County residents who are moderate-income buyers located within designated ZIP codes or neighborhoods inside I-495 the Capital Beltway. Funding for the Homeownership Equity Program shall be financed pursuant to Section 10-296 of this Division. The Homeowner Equity Program shall be administered by the Prince George's County Department of Housing and Community Development in partnership with the County Council and certified nonprofit housing counseling agencies. Eligibility, terms, funding, property requirements. Subject to funding, moderate-income buyers who are County residents shall be offered zero percent (0%) interest, forgivable down payment assistance loans. They shall be deferred payment second mortgage loans. The loan amount shall be up to $30,000 per qualifying buyer. The term shall be deferred for 5 years and shall be forgiven at 20% per year (fully forgiven after 5 years if owner-occupied). Eligible properties shall be single-family homes, townhomes, or condominiums located inside the I-495 Capital Beltway. The buyer's income shall be ≤ 120% Area Median Income (AMI). The minimum buyer contribution shall be $1,000 and the buyer shall complete an eight-hour buyer education course. The buyer shall use the home as a primary residence. The initial funding for the Program shall be Two Million ($2,000,000). The property shall be an owner-occupied single-family home, townhouse, or condominium located within designated ZIP codes or neighborhoods inside the Capital Beltway I-495, and shall pass a standard home inspection. Select groups. Moderate-income is a requirement for this loan. First-time buyers shall be eligible for this loan. Buyers that are County residents are eligible for this loan, as well as County residents that are public sector workers, former renters in the Capital Beltway I-495, and households with multigenerational caregivers are eligible for this loan. Application intake; underwriting; closing support; post-purchase follow-up. Application intake shall be coordinated by the Department of Housing and Community Development through certified nonprofit housing counseling agencies and lenders. The Department of Housing and Community Development shall verify income, eligibility, and home inspection. Funds provided at closing shall be recorded as a second mortgage lien. The Department of Housing and Community Development shall receive verification by the buyer that the property remains owner-occupied. Approval of administrative rules and program guidelines. The Department of Housing and Community Development shall provide administrative rules and Homeownership Equity Program guidelines to be approved by the County Council.

Sources. The Fund shall be financed from: current expense funds; any contributions, donations, or appropriations by the United States, the State of Maryland, any other political jurisdiction, or any private entity; interest income; fees or other charges levied on loan or grant recipients; 20% of the recordation tax collected or no less than $10 million; and any other funds designated and provided by the County. Treatment. Monies provided by the County to the Fund under Subsection (a) of this Section shall be treated as a transfer to the Fund. Repayments and Recapitalization of the Fund. The Director of Finance, subject to the written agreement or contract under Section 10-304(f), shall deposit in the Fund all program income collected for principal and interest on the loans and any authorized loan charges and fees on transactions authorized under this Division. Non-lapsing. The Fund shall continue from year to year. Recordation Tax Contribution. The County Council may decrease the 20% amount from the recordation tax collected when there is a national recession declared by the federal government. Annual Report. The Director of the Department of Housing and Community Development ("Director"), or designee, shall prepare and provide an annual status report for presentation to the County Council by January 1 st of each year.

Administration. The Director of the Department of Housing and Community Development ("Director"), or his designee, shall administer the Fund according to accepted principles of sound accounting, underwriting guidelines, and fiscal management. The Director: may utilize up to fifteen (15%) of the Fund to administer the programs funded; shall develop criteria to designate specific target areas within the County for focus of the Fund assistance, including but not limited to: areas identified with high rates of foreclosure, vacant or abandoned properties in the County; percentage of low and moderate income populations; the strength of the residential market; proximity to a planned economic development and revitalization areas. shall develop such criteria, rules and regulations to administer the Fund programs. Coordination. The Director shall work with County, State and Federal agencies and departments, including the Prince George's County Redevelopment and Revenue Authority, to coordinate use of the Fund and may utilize the Fund to supplement existing County, State or Federal programs and policies that meet the goals of this Division. Determination of accounting methods. The Director, or his designee, shall work with the Director of Finance to determine the terms of and the method and procedures for accounting for: financial assistance from the Fund; payments by or charges against the Fund; repayments on accounts, subject to the terms and conditions contained in the financial assistance agreements; and maintenance of records in accordance with generally accepted accounting principals. The Director, or his designee, shall develop and provide established loan servicing guidelines for evaluating compliance with loan terms and conditions. The Office of Management and Budget shall regularly review the performance of financial assistance awards and grants from the Fund for compliance with the terms and conditions negotiated by the Director.

Application. An applicant for loans or grants shall apply on an application form required by the Director of the Department of Housing and Community Development, or his designee. Application Information Required. The loan or grant application form shall require an applicant to supply information necessary to evaluate the requested financial assistance including: a full description of the program, including staffing, outreach, budget, goals and past history of experience and performance; financial ability of the applicant to successfully operate a program to meet the goals of this Division; any County, State or Federal certifications and authorizations; and any other information that may be appropriate or useful in evaluating the application. Process. The Director shall utilize a public and competitive bidding process for grants to not-for-profit organizations. Approval criteria. The criteria for approval of loan or grant from the Fund shall include, but not be limited to, the following: the expected benefit to, or impact on, the County's housing conditions; the estimated number of County residents to be served; the ability to serve designated target areas established under this Division: previous performance of the applicant; and the ability of the prospective applicant to leverage financial assistance with other funds. Review and approval by the Director. The Director or his designee shall review loan or grant applications for completeness, need, financial ability of the applicant to meet established underwriting guidelines and goals of this Division. Notifications, awards and contracts. The Director shall: provide written notice to all applicants upon a determination on the application; provide written notice to an applicant approved for a loan and grant; and enter into a written contract or agreement with an approved applicant for a grant or enter into a written contract or agreement with an approved applicant for a loan, with terms and conditions for repayment of the loan into the Fund.

Application. An applicant for down payment and closing cost assistance shall apply for the program on an application form required by the Director of the Department of Housing and Community Development, or his designee. Application Information Required. The down payment and closing cost assistance application form shall require an applicant to supply information necessary to evaluate the requested financial assistance including: financial need and income of the applicant up to 120% of the area median income in the Washington, D.C. region; financial ability of applicant to retain or purchase all for sale properties in Prince George's County including: vacant, abandoned and foreclosed properties in the targeted areas of the County; documentation that the applicant has completed housing counseling service, training or classes; and any other information that may be appropriate or useful in evaluating the application. Review and approval by the Director. The Director or his designee shall review down payment and closing cost assistance applications for completeness, need, financial ability of the applicant and such other eligibility criteria established under this Division.

Program established. There is within the Housing Investment Trust Fund a Critical Workforce Homebuying Assistance Program to ensure that County workers critical to the education and safety of County residents are able to purchase homes in the communities that they serve. Eligibility. A participant in the Program must: be employed as: a teacher employed full-time by Prince George's County Public Schools; a nurse employed full-time in a medical office or hospital located in Prince George's County; or a firefighter, emergency medical technician, correctional officer, police officer, public safety dispatcher, or deputy sheriff employed full-time by a public safety agency of Prince George's County Government; and have a household income not exceeding 120 percent of the median income for the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area. Assistance. Assistance under the Program shall consist of zero percent or interest-deferred loans, subject to the following conditions: Maximum loan amount shall not exceed $50,000, or 25% of the purchase price, whichever is less; Homes must be located in Prince George's County; Homes must be the applicant's primary residence and only property in Prince George's County to remain eligible for the Program; Loans will be secured by a second mortgage on the property; Loans may be paid off or payments made toward principal with no penalty; and Any other conditions set forth in regulations adopted paragraph (d)(3) of this section. Administration. The Program shall be administered by the Director of the Department of Housing and Community Development, or their designee. An applicant for assistance under the Program shall apply on an application form required by the Director of the Department of Housing and Community Development, or their designee. The Director or their designee shall review applications for assistance submitted pursuant to this subsection and provide assistance to eligible applicants subject to the availability of Program funds. The Director of the Department of Housing and Community Development may adopt such regulations as may be necessary for the administration of the Program. Funding. The County Council may provide additional funding for the Program to be used in accordance with parameters established by the County Council.

Report to Council. The Director or his designee, shall provide each member of the County Council with a semi-annual report that outlines the financial assistance, loans and grants that have been provided and the overall performance of the Fund. The report prepared by the Director shall include information about the compliance of the award recipient with the terms and conditions of the Fund and the provisions of this Division. County Auditor Reviews for Compliance. The County Auditor may regularly review the performance of financial assistance awards from the Fund for compliance with the terms and conditions negotiated by the Director.