In this section the following words have the meanings indicated. “Dam owner” has the meaning stated in § 5–509 of this subtitle. “Eligible cost” means any cost to be incurred by a dam owner for the repair, emergency repair, or permanent breach of a dam. “Eligible cost” includes construction activities, engineering fees, demolition, excavation, stabilization, and related costs. “Fund” means the Private Dam Repair Fund. “Loan” means a private dam repair loan made in accordance with this section. “Private dam” means a dam that is not owned by the federal government, the State government, or a county or municipal government. “Unsafe condition” has the meaning stated in § 5–509 of this subtitle. There is a Private Dam Repair Fund. The purpose of the Fund is to provide financial assistance for the repair, upgrade, or removal of private dams in accordance with this subtitle. The Maryland Water Infrastructure Financing Administration within the Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Dam safety permit fees collected by the Department under § 5–203.2 of this title; Dam owner registration fees collected by the Department under § 5–509.1 of this subtitle; Payments received from borrowers for deposit into the Fund in repayment of loans issued under subsection (h) of this section, including any loan origination fees; Penalties distributed to the Fund under § 5–514(c)(2) of this subtitle; Funds appropriated in the State budget to the Fund; Interest earnings; and Any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for: Providing financial assistance to private dam owners for Department–directed upgrades, repairs, or removals; Making loans in accordance with this section; Funding emergency repairs and removals of private dams performed by the Department; and Reimbursing the administrative cost to the Department of processing and issuing dam safety permits and performing the duties under § 5–509 of this subtitle. The State Treasurer shall invest money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. Beginning July 1, 2028, the Department may provide loans from the Fund to owners of private dams for the purpose of repairing or removing private dams deemed to be in an unsafe condition by the Department. Loans made under this subsection shall be administered by the Maryland Water Infrastructure Financing Administration in accordance with §§ 9–1604 and 9–1606 of this article. The Department may establish criteria for awarding loans under the Fund. Eligible applicants may include dam owners that: Have an approved emergency action plan in accordance with § 5–503.1 of this subtitle; Have had an inspection of the private dam performed by the Department that documents deficiencies in accordance with § 5–509 of this subtitle within the past 24 months; Can demonstrate, with documentation, actions taken to address deficiencies indicated in inspection reports prepared by the Department; and Have demonstrated an ability to repay a loan. Each loan may be in an amount that covers the reasonable and necessary eligible costs of a project, as determined by the Department, for which funds are sought by the applicant and that are not provided by other available sources. A dam owner may use multiple programs or sources to fund the repair or removal costs for a dam in an unsafe condition up to 100% of the costs. A dam owner seeking a loan shall submit a complete loan application to the Department on a form provided by the Department. The repayment period for a loan may not exceed 20 years. The loan shall be made at or below market interest rates. The Department may charge a loan origination fee that may be used for the reasonable cost of administering the loan program. If the Department determines that a dam owner does not have the financial resources to repay a loan granted under this subsection, the Department may, at the Department’s discretion, authorize partial forgiveness of the loan. Full repayment of the loan shall be required on sale or transfer of the property. The Department may establish remedies for loan recipients who fail to meet repayment obligations under the loan terms. In addition to any other action authorized by this subtitle, the Attorney General may bring an action to recover principal, interest, late fees and penalties, attorney’s fees, and costs from any loan recipient that defaults on the loan recipient’s obligations under the loan agreement. In the event of a default on a loan obligation issued under this subsection, the Department may place a lien against the property that, subject to the tax liens of the federal, State, and local governments, shall have the same priority and status as a lien of the State for unpaid taxes under §§ 14–804 and 14–805 of the Tax – Property Article. The Department may exercise the same rights and powers in enforcing the lien and collecting funds for the payment of amounts in default under the loan obligation as the State may exercise in collecting unpaid taxes under Title 14, Subtitle 8 of the Tax – Property Article. The Department shall adopt regulations to carry out this subsection. On or before November 1, 2026, and each November 1 thereafter, the Department shall report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly on: The status of the Fund; Revenues, encumbrances to, and expenditures from the Fund; A description of the projects funded by the Fund; and The number of applications for financial assistance from the Fund that were denied.