<section article="ghs" article_name="Housing and Community Development" number="4-101" title_number="4" title_name="Division of Development Finance" subtitle_number="1" subtitle_name="Division Established; Units in Division"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Administration” means the Community Development Administration.</text> </level> <level label="c"> <text>“Division” means the Division of Development Finance.</text> </level> <level label="d"> <text>“Elderly household” means, except as provided in § 4–2901 of this title, one or more individuals who occupy a residential dwelling unit, at least one of whom meets the age limit specified by the Secretary that:</text> <level label="1"> <text>is greater than or equal to age 55; and</text> </level> <level label="2"> <text>may vary for different programs or types of projects.</text> </level> </level> <level label="e"> <text>“Nonprofit sponsor” means a sponsor that is:</text> <level label="1"> <text>a nonprofit organization; or</text> </level> <level label="2"> <text>a limited partnership, if:</text> <level label="i"> <level label="1"> <text>each general partner is a nonprofit organization; or</text> </level> <level label="2"> <text>each general partner is a wholly owned subsidiary of a nonprofit organization;</text> </level> </level> <level label="ii"> <text>the limited partnership is formed to undertake a project that is eligible as a whole or in part for a federal program or incentive, including low–income housing tax credits; and</text> </level> <level label="iii"> <text>a nonprofit organization manages the project or will receive the net cash flow or residual sale proceeds on the sale of the project.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-102" title_number="4" title_name="Division of Development Finance" subtitle_number="1" subtitle_name="Division Established; Units in Division"> <text>There is a Division of Development Finance.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-103" title_number="4" title_name="Division of Development Finance" subtitle_number="1" subtitle_name="Division Established; Units in Division"> <text>The Division includes:</text> <level label="1"> <text>the Community Development Administration;</text> </level> <level label="2"> <text>the Disaster Relief Housing Program;</text> </level> <level label="3"> <text>the Down Payment and Settlement Expense Loan Program;</text> </level> <level label="4"> <text>federal and State weatherization programs;</text> </level> <level label="5"> <text>the Group Home Financing Program;</text> </level> <level label="6"> <text>the Lead Hazard Reduction Grant Program;</text> </level> <level label="7"> <text>the Lead Hazard Reduction Loan Program;</text> </level> <level label="8"> <text>the local government infrastructure program;</text> </level> <level label="9"> <text>the Maryland Home Financing Program;</text> </level> <level label="10"> <text>the Maryland Housing Rehabilitation Program;</text> </level> <level label="11"> <text>the Neighborhood Housing Services Fund;</text> </level> <level label="12"> <text>the Operating Assistance Grants Demonstration Projects;</text> </level> <level label="13"> <text>the Partnership Rental Housing Program;</text> </level> <level label="14"> <text>the Radium Grant Program;</text> </level> <level label="15"> <text>the Rental Allowance Program, the Statewide Rental Assistance Voucher Program, and other rental assistance programs;</text> </level> <level label="16"> <text>the Rental Housing Program; and</text> </level> <level label="17"> <text>the Self–Help Homeownership Technical Assistance Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-104" title_number="4" title_name="Division of Development Finance" subtitle_number="1" subtitle_name="Division Established; Units in Division"> <text>The Division shall conduct outreach to facilitate the investment by qualified opportunity funds, as defined in § 1400Z–2 of the Internal Revenue Code, in urban, suburban, and rural neighborhoods in the State.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-201" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Business project” means a project that qualifies under § 4–223 of this subtitle.</text> </level> <level label="c"> <text>“Commercial building” means any building that:</text> <level label="1"> <text>is used primarily to carry on a business whether or not for profit;</text> </level> <level label="2"> <text>is not a residential building; and</text> </level> <level label="3"> <text>is not used primarily to manufacture or produce raw materials, products, or agricultural commodities.</text> </level> </level> <level label="d"> <text>“Commercial energy audit” means:</text> <level label="1"> <text>an energy audit performed for purposes of Title VII of the National Energy Conservation Policy Act, 42 U.S.C. §§ 6201 through 6422; or</text> </level> <level label="2"> <text>an onsite inspection of a commercial building that includes a determination of, and provides information on:</text> <level label="i"> <text>the type, quantity, and rate of energy consumption of the building;</text> </level> <level label="ii"> <text>the maintenance and operation procedures to reduce the energy consumption of the building; and</text> </level> <level label="iii"> <text>the cost of implementing an appropriate energy conservation project, a solar energy project, or both, and the savings in energy costs likely to result from the project.</text> </level> </level> </level> <level label="e"> <text>“Community development project” means a project that qualifies under § 4–217 of this subtitle.</text> </level> <level label="f"> <level label="1"> <text>“Development costs” means the costs that the Department considers reasonable and necessary to carry out:</text> <level label="i"> <text>a community development project;</text> </level> <level label="ii"> <text>an energy conservation project;</text> </level> <level label="iii"> <text>a home improvement project;</text> </level> <level label="iv"> <text>an infrastructure project;</text> </level> <level label="v"> <text>a public purpose project;</text> </level> <level label="vi"> <text>a solar energy project;</text> </level> <level label="vii"> <text>a special housing facility; or</text> </level> <level label="viii"> <text>a business project.</text> </level> </level> <level label="2"> <text>“Development costs” includes:</text> <level label="i"> <text>the costs of:</text> <level label="1"> <text>studies, surveys, plans and specifications, and architectural, engineering, or other special services;</text> </level> <level label="2"> <text>acquisition of land and any buildings on the land;</text> </level> <level label="3"> <text>site preparation and development, construction, reconstruction, rehabilitation, and improvement; and</text> </level> <level label="4"> <text>acquisition of machinery, equipment, and furnishings;</text> </level> </level> <level label="ii"> <text>expenses incurred in connection with initial occupancy or operation of the project;</text> </level> <level label="iii"> <text>an allocable portion of the administrative and operating expenses of the Department;</text> </level> <level label="iv"> <text>the cost of financing the project, including interest on bonds and notes issued to finance the project from the date issued to the date the Department determines that the project is substantially occupied or substantially in operation;</text> </level> <level label="v"> <text>the cost of other items, including indemnity and surety bonds, premiums on insurance, fees, relocation costs, and charges and expenses of trustees, depositories, and paying agents for bonds and notes issued; and</text> </level> <level label="vi"> <text>operating and expansion costs for business projects.</text> </level> </level> </level> <level label="g"> <text>“Director” means the Director of the Administration.</text> </level> <level label="h"> <text>“Energy conservation project” means a project that qualifies under § 4–218 of this subtitle.</text> </level> <level label="i"> <text>“Family of limited income” means a family or individual whose income does not exceed the upper income limits established by the Secretary under § 4–212 of this subtitle.</text> </level> <level label="j"> <text>“Home improvement project” means a project that qualifies under § 4–219 of this subtitle.</text> </level> <level label="k"> <text>“Infrastructure project” means a project that qualifies under § 4–220 of this subtitle.</text> </level> <level label="l"> <text>“Limited dividend corporation” means a corporation that:</text> <level label="1"> <text>qualifies as a limited dividend corporation under the Moderate–Income Rental Program of the National Housing Act, Title 12, Chapter 13 of the United States Code; and</text> </level> <level label="2"> <text>is operated only to further a community development project.</text> </level> </level> <level label="m"> <text>“Local development agency” means the governmental unit of a political subdivision that the chief executive officer of the political subdivision designates to carry out community development under this subtitle.</text> </level> <level label="n"> <text>“Local development entity” means a corporation or foundation, no part of the net earnings of which inures to the benefit of a private shareholder or individual, that is organized and operated primarily to foster, encourage, and assist community development in the State.</text> </level> <level label="o"> <text>“Local obligation” means a bond, note, or other obligation of a political subdivision or a governmental unit of a political subdivision.</text> </level> <level label="p"> <text>“Public purpose project” means a project that qualifies under § 4–221 of this subtitle.</text> </level> <level label="q"> <text>“Residential building” means a single family or multifamily structure that is used primarily for human dwelling and that has a system for heating, cooling, or both.</text> </level> <level label="r"> <text>“Residential energy audit” means:</text> <level label="1"> <text>an inspection or energy audit of a residential building or a dwelling unit in a residential building performed for purposes of Title II or Title VII of the National Energy Conservation Policy Act, Title 42, Chapter 91 of the United States Code; or</text> </level> <level label="2"> <text>an onsite inspection of a residential building or a dwelling unit in a residential building that includes a determination of and provides information on:</text> <level label="i"> <text>the type, quantity, and rate of energy consumption of the building or dwelling unit;</text> </level> <level label="ii"> <text>maintenance and operating procedures to reduce the energy consumption of the residential building or dwelling unit; and</text> </level> <level label="iii"> <text>the cost of implementing an appropriate energy conservation project, solar energy project, or both, and the savings in energy costs that are likely to result from the project.</text> </level> </level> </level> <level label="s"> <text>“Residential mortgage loan” means a loan, including a temporary loan or advance, that is secured by a mortgage of real property in the State that is:</text> <level label="1"> <text>improved by a residential building; or</text> </level> <level label="2"> <text>unimproved, if the loan proceeds are to be used to construct a residential building.</text> </level> </level> <level label="t"> <text>“Solar energy project” means a project that qualifies under § 4–222 of this subtitle.</text> </level> <level label="u"> <text>“Special housing facility” means a project or undertaking for the refinancing, acquisition, rehabilitation, improvement, renovation, or construction of a building that:</text> <level label="1"> <text>will be occupied in substantial part by families of limited income;</text> </level> <level label="2"> <text>will provide common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities;</text> </level> <level label="3"> <text>may include supportive services or supervisory live–in personnel for individuals with specialized housing needs;</text> </level> <level label="4"> <text>may include nonresidential facilities to serve individuals with special needs who need not be residents of the project or undertaking; and</text> </level> <level label="5"> <text>is not subject to § 4–213(b) of this subtitle.</text> </level> </level> <level label="v"> <text>“Sustainable community” has the meaning stated in § 6–201 of this article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-202" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>The General Assembly finds that:</text> <level label="1"> <text>in this era of rapid population growth and expansion and of increasing urbanization, there is a need in many areas of the State to promote sound community development;</text> </level> <level label="2"> <text>the political subdivisions do not have adequate resources to deal effectively with all of the problems of sound community development, and the ordinary operations of private enterprise cannot deal with them without State assistance;</text> </level> <level label="3"> <text>there is a need to coordinate and concentrate federal, State, regional, and local public and private community development efforts and resources;</text> </level> <level label="4"> <text>there is a shortage of adequate, safe, and sanitary housing for families of limited income, and increasing the housing supply for families of limited income will ease the shortage and promote sound community development;</text> </level> <level label="5"> <text>increasing opportunities for homeownership is desirable and promotes sound community development;</text> </level> <level label="6"> <text>reducing energy consumption and increasing the use of solar energy by providing financial assistance to encourage energy conservation and solar energy improvements to residential buildings and commercial buildings promote sound community development and the public interest;</text> </level> <level label="7"> <text>the public infrastructure maintained by political subdivisions, including streets, sidewalks, curbs, sewer and water systems, bridges, and public buildings, needs rehabilitation and construction;</text> </level> <level label="8"> <text>the resources necessary for financing infrastructure projects have become scarcer in recent years;</text> </level> <level label="9"> <text>providing an additional, accessible, and uncomplicated mechanism to finance infrastructure projects promotes sound community development, is vital to a strong economy, improves the quality of the environment, and otherwise promotes the health, safety, and welfare of the residents of the State;</text> </level> <level label="10"> <text>promoting sound community development is a proper public purpose and State use, for which public money may be spent and property may be acquired; and</text> </level> <level label="11"> <text>the functions and responsibilities of the Administration set forth in this subtitle are necessary to achieve the ends listed in this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-203" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>To attract and retain teachers in the State by increasing homeownership opportunities, the General Assembly finds that there is a need to authorize the Department to develop a program to dedicate up to $25,000,000 over 5 years to provide mortgage loans to teachers at interest rates below the prevailing interest rate for similar programs.</text> </level> <level label="b"> <level label="1"> <text>A mortgage loan under this section shall be available to a teacher who is a first–time home buyer.</text> </level> <level label="2"> <text>The loan shall be conditioned on an agreement by the teacher to teach in the State for at least 3 years if work is available for the teacher.</text> </level> <level label="3"> <text>The loan shall be used to purchase property in a priority funding area as defined in §§ 5–7B–02 and 5–7B–03 of the State Finance and Procurement Article.</text> </level> </level> <level label="c"> <text>The Administration shall develop the program in consultation with:</text> <level label="1"> <text>the State Department of Education, to ensure that the program is consistent with the State’s strategy to attract and retain teachers; and</text> </level> <level label="2"> <text>local boards of education, to ensure that the program is properly marketed.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-204" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>There is a Community Development Administration.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-205" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>The Administration is created to:</text> <level label="1"> <text>coordinate activities and programs that contribute to sound community development;</text> </level> <level label="2"> <text>encourage and facilitate the development of new and existing communities by reducing the costs of development through grants, loans, and other forms of financial assistance;</text> </level> <level label="3"> <text>encourage and facilitate energy conservation and the use of solar energy in residential buildings and commercial buildings through grants, loans, and other forms of financial assistance;</text> </level> <level label="4"> <text>make land available for sound community development; and</text> </level> <level label="5"> <text>assist the efforts of private enterprise, political subdivisions, local public agencies, local development entities, and nonprofit organizations.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-206" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>Except as provided in subsection (b) of this section, a grant of land or money may be made only to a political subdivision, a local development entity, a local development agency, or a nonprofit organization.</text> </level> <level label="b"> <level label="1"> <text>This section does not apply to grants that may be awarded to the Administration under federal law.</text> </level> <level label="2"> <text>The Administration may award grants to home buyers for settlement expenses as provided by the Department under this title.</text> </level> <level label="3"> <text>The Administration may award grants under § 4–235(b)(1)(ii) of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-207" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>With the approval of the Governor, the Secretary shall appoint the Director.</text> </level> <level label="b"> <text>The Director serves at the pleasure of the Secretary.</text> </level> <level label="c"> <text>The position of Director is in the executive service or management service of the State Personnel Management System.</text> </level> <level label="d"> <text>The Director shall operate and exercise the powers of the Administration under the direction of the Secretary and in accordance with this subtitle.</text> </level> <level label="e"> <text>The Director is entitled to:</text> <level label="1"> <text>compensation as provided in the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.</text> </level> </level> <level label="f"> <text>The Director shall have a staff and professional consultants as provided in the State budget.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-208" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>There is a Housing Finance Review Committee.</text> </level> <level label="b"> <text>The Housing Finance Review Committee consists of seven members appointed by the Governor on recommendation of the Secretary as follows:</text> <level label="1"> <text>three employees of the Department, one of whom may be the Secretary;</text> </level> <level label="2"> <text>one employee of the Executive Branch of State government who is not employed by the Department; and</text> </level> <level label="3"> <text>three members of the public.</text> </level> </level> <level label="c"> <level label="1"> <text>The term of a public member is 4 years and begins on July 1.</text> </level> <level label="2"> <text>At the end of a term, a public member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="3"> <text>A public member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="d"> <level label="1"> <text>The Housing Finance Review Committee shall review and make recommendations to the Secretary about:</text> <level label="i"> <text>specific loan requests or categories of loan requests; and</text> </level> <level label="ii"> <text>the investment and project financing policies of the Administration.</text> </level> </level> <level label="2"> <text>The Secretary may approve a specific loan request without a recommendation of the Housing Finance Review Committee if the request requires urgent action.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-211" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration shall:</text> <level label="1"> <text>assist the Governor in coordinating the activities of governmental units of the State that affect the solution of community development problems and the implementation of community plans;</text> </level> <level label="2"> <text>encourage and assist political subdivisions to develop mutual and cooperative solutions to their common problems;</text> </level> <level label="3"> <text>serve as a clearinghouse for information and other materials that may be pertinent to sound community development, including information on available federal, State, and private financial and technical assistance;</text> </level> <level label="4"> <text>carry out continuing studies and analyses of sound community development in cooperation with the Department of Planning;</text> </level> <level label="5"> <text>make recommendations, in cooperation with the Department of Planning, for administrative or legislative action, paying particular attention to the problems of metropolitan, suburban, and other areas;</text> </level> <level label="6"> <text>implement model or demonstration programs and projects, contract to administer functions or services in a political subdivision, or otherwise provide a program of practical research in community development;</text> </level> <level label="7"> <text>promote community development by giving to political subdivisions, local development agencies, local development entities, or nonprofit organizations:</text> <level label="i"> <text>technical assistance and advisory, consultative, training, and educational services; and</text> </level> <level label="ii"> <text>grants and loans to pay for:</text> <level label="1"> <text>the services and technical assistance; and</text> </level> <level label="2"> <text>any development costs;</text> </level> </level> </level> <level label="8"> <level label="i"> <text>contract for and accept from the federal government a grant, contribution, or loan of money, property, or other aid in any form for community development; and</text> </level> <level label="ii"> <text>do all things necessary to qualify for the grant, contribution, or loan, including those things necessary to qualify for assistance as a local public agency or public housing agency under a federal housing or renewal program;</text> </level> </level> <level label="9"> <text>contract for and accept from any governmental unit of the State or other source a gift, grant, contribution, or loan of money, property, or other aid in any form for community development and comply with the terms and conditions of the gift, grant, contribution, or loan;</text> </level> <level label="10"> <text>attach to a sale or lease of property or to a loan or grant the terms and conditions that the Director determines and the Secretary approves;</text> </level> <level label="11"> <text>enter into agreements to make annual payments instead of assessments, charges, or property taxes to a political subdivision in respect to real property that the Administration owns; and</text> </level> <level label="12"> <text>provide money to programs eligible to receive funding from the Neighborhood Business Development Fund under § 6–310 of this article.</text> </level> </level> <level label="b"> <text>To implement community development projects and public purpose projects in accordance with Part V of this subtitle, and subject to §§ 4–213(b) and 4–214 of this subtitle, the Administration may:</text> <level label="1"> <level label="i"> <text>acquire, own, and hold land that is open, mainly open, or undeveloped, or any interest in the land;</text> </level> <level label="ii"> <text>install access and interior streets and roads and sewer and water lines in or to the land and otherwise improve the land; or</text> </level> <level label="iii"> <text>transfer, lease, mortgage, or otherwise dispose of or encumber the land;</text> </level> </level> <level label="2"> <level label="i"> <text>acquire, own, and hold land that is not open, mainly open, or undeveloped, as well as personal or mixed property;</text> </level> <level label="ii"> <text>manage and operate the property;</text> </level> <level label="iii"> <text>clear, improve, construct, or rehabilitate the property;</text> </level> <level label="iv"> <text>transfer, lease, mortgage, or otherwise dispose of or encumber the property; or</text> </level> <level label="v"> <text>take assignments of rentals or leases for the property;</text> </level> </level> <level label="3"> <text>arrange or contract with a political subdivision or private party in connection with a community development project or public purpose project for:</text> <level label="i"> <text>planning, replanning, zoning, or rezoning;</text> </level> <level label="ii"> <text>opening, grading, or closing streets, roads, alleys, or other places;</text> </level> <level label="iii"> <text>furnishing facilities;</text> </level> <level label="iv"> <text>acquiring property or property rights by the political subdivision; or</text> </level> <level label="v"> <text>furnishing property or services; and</text> </level> </level> <level label="4"> <text>spend Administration money for an undertaking that the Secretary approves.</text> </level> </level> <level label="c"> <text>The Administration shall develop and implement a weatherization program to provide money for insulation materials and insulation costs to households that qualify based on income and the program eligibility guidelines that the Secretary establishes.</text> </level> <level label="d"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Covered building” has the meaning stated in § 2–1601 of the Environment Article.</text> </level> <level label="iii"> <text>“Energy conservation project” means a project that qualifies under § 4–218 of this subtitle.</text> </level> </level> <level label="2"> <text>For the purpose of reducing direct greenhouse gas emissions from multifamily residential buildings in accordance with the standards adopted under § 2–1602 of the Environment Article, the Administration shall develop and implement a program to provide grants and loans for energy conservation projects and projects to install renewable energy generating systems in covered buildings that house primarily low– to moderate–income households.</text> </level> <level label="3"> <text>Grants and loans provided under this subsection may not be used for a project to install new equipment that uses fossil fuels or improve the efficiency of existing equipment that uses fossil fuels.</text> </level> <level label="4"> <text>In each of fiscal years 2024 through 2026, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Department for the purpose of providing grants and loans under this subsection.</text> </level> <level label="5"> <text>On or before December 1, 2023, and each December 1 thereafter, the Administration shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the projects funded under this subsection.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-212" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>In establishing the upper income limits for a family of limited income, the Secretary shall consider factors including:</text> <level label="1"> <text>the income of the family available for housing;</text> </level> <level label="2"> <text>the size of the family;</text> </level> <level label="3"> <text>the cost and condition of available housing;</text> </level> <level label="4"> <text>the ability of the family to compete in the private housing market; and</text> </level> <level label="5"> <text>standards and definitions established for federal housing programs.</text> </level> </level> <level label="b"> <text>The limits established under subsection (a) of this section may vary for different:</text> <level label="1"> <text>types of housing;</text> </level> <level label="2"> <text>programs of the Administration; and</text> </level> <level label="3"> <text>areas of the State.</text> </level> </level> <level label="c"> <text>A limit established under subsection (a) of this section may be supplemented for a particular project.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-213" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>In accordance with regulations that the Secretary adopts, an agreement that the Administration makes to carry out its functions and responsibilities under §§ 4–211, 4–214, and 4–225 through 4–235 of this subtitle shall be approved by:</text> <level label="1"> <text>the Secretary; and</text> </level> <level label="2"> <text>the Board of Public Works, if its approval is required by law.</text> </level> </level> <level label="b"> <text>The Administration shall provide written notice and a reasonable opportunity to comment to the chief executive officer or the equivalent officer and the head or president of the legislative body of the political subdivision in which a proposed community development project or a public purpose project is located.</text> </level> <level label="c"> <text>If the proposed project is located in a municipal corporation, the notice required under subsection (b) of this section shall be sent to the chief executive officer and head or president of the legislative body of the municipal corporation and not to the county.</text> </level> <level label="d"> <text>A project that the Administration finances is subject to applicable zoning and building codes.</text> </level> <level label="e"> <level label="1"> <text>This subsection applies notwithstanding any other provision of this subtitle or other State law.</text> </level> <level label="2"> <text>In exercising its functions and responsibilities, the Administration may sell or lease for a term not exceeding 99 years all or part of the real, mixed, or personal property constituting a community development project.</text> </level> <level label="3"> <text>A sale or lease under this section may be made:</text> <level label="i"> <text>without public bidding or public sale; and</text> </level> <level label="ii"> <text>on terms and conditions that make housing in that development economically feasible for families of limited income.</text> </level> </level> <level label="4"> <text>A sale or lease under this section shall conform with a plan for community development that the Secretary approves at a public hearing held after notice is published in at least one newspaper of general circulation in the political subdivision in which the development is located.</text> </level> <level label="5"> <text>The plan for community development presented at the hearing shall be in accordance with regulations that the Secretary adopts, requiring:</text> <level label="i"> <text>a description of the property;</text> </level> <level label="ii"> <text>a statement of the identity of the proposed purchaser or lessee and the proposed use or reuse of the property;</text> </level> <level label="iii"> <text>the price or rental to be paid by the purchaser or lessee; and</text> </level> <level label="iv"> <text>the conditions of the sale or lease that ensure that the community development purposes of this subtitle will be carried out.</text> </level> </level> </level> <level label="f"> <text>In carrying out this subtitle, the Administration shall comply with local laws applicable to the community development project.</text> </level> <level label="g"> <level label="1"> <text>In carrying out this subtitle, the Administration shall:</text> <level label="i"> <text>foster local initiative and participation in community development activities; and</text> </level> <level label="ii"> <text>consider local and regional goals and policies as expressed in urban renewal, community renewal, and local comprehensive land use plans and regional plans.</text> </level> </level> <level label="2"> <text>Wherever possible, the Administration shall carry out community development projects together with and through the use of:</text> <level label="i"> <text>private enterprise;</text> </level> <level label="ii"> <text>limited dividend corporations;</text> </level> <level label="iii"> <text>local development agencies; and</text> </level> <level label="iv"> <text>local development entities.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-214" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>The Administration has the power of eminent domain, but may not exercise it in a political subdivision without the consent of the political subdivision given by ordinance of its governing body for a specific community development project.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-215" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration shall administer a home buyer assistance program that:</text> <level label="1"> <text>assists home buyers to receive low–interest mortgage loans, with down payment and closing cost assistance options, for the purchase of homes near their place of employment; and</text> </level> <level label="2"> <text>coordinates with, and matches where appropriate, similar programs offered by private employers and county and municipal governments so as to maximize the total amount that home buyers can receive under the program.</text> </level> </level> <level label="b"> <text>With reference to loans under this program, the Administration shall:</text> <level label="1"> <text>allow home buyers to utilize the loans for the purchase of newly constructed or existing homes; and</text> </level> <level label="2"> <text>require a home purchased under this program to be occupied by the home buyer as a principal residence.</text> </level> </level> <level label="c"> <text>The Administration shall facilitate the marketing of the program with private employers and county and municipal governments, and, where appropriate, other units of State government and nonprofit organizations.</text> </level> <level label="d"> <text>The Administration shall adopt regulations to implement the program established under this section.</text> </level> <level label="e"> <text>The Department shall report to the General Assembly on or before December 31 each year, in accordance with § 2–1257 of the State Government Article, on the program established under this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-215.1" effective_note="EFFECTIVE UNTIL SEPTEMBER 30, 2030 PER CHAPTER 265 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Current student” means an individual who:</text> <level label="i"> <text>attends a public institution of higher education in the State; and</text> </level> <level label="ii"> <text>is a degree–seeking, full–time equivalent student in an undergraduate level, graduate level, or professional degree program.</text> </level> </level> <level label="3"> <text>“Public institution of higher education” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="4"> <text>“Recent graduate” means an individual who, within 5 years before applying for assistance under this section, graduated from a public institution of higher education in the State with at least:</text> <level label="i"> <text>120 credits in an undergraduate level program; or</text> </level> <level label="ii"> <text>30 credits in a graduate level or professional degree program.</text> </level> </level> </level> <level label="b"> <text>The Administration may administer a home buyer assistance program that:</text> <level label="1"> <text>assists current students and recent graduates to receive low–interest mortgage loans, with down payment and closing cost assistance options, for the purchase of homes near the school attended by the student or graduate;</text> </level> <level label="2"> <text>coordinates with, and matches where appropriate, similar programs offered by public institutions of higher education, private employers, and county and municipal governments to maximize the total amount that current students and recent graduates can receive under the program;</text> </level> <level label="3"> <text>authorizes a public institution of higher education to provide matching funds to a home buyer who receives assistance under this section; and</text> </level> <level label="4"> <text>utilizes available funding sources.</text> </level> </level> <level label="c"> <text>With reference to loans under this program, the Administration may:</text> <level label="1"> <text>allow home buyers to utilize the loans for the purchase of newly constructed or existing homes;</text> </level> <level label="2"> <text>require a home purchased under the program to be occupied by the home buyer as a principal residence; and</text> </level> <level label="3"> <text>utilize available funding sources.</text> </level> </level> <level label="d"> <text>The Administration may facilitate the marketing of the program with public institutions of higher education, private employers, county and municipal governments, and, where appropriate, other units of State government and nonprofit organizations with existing funding for the marketing of current programs of the Department, if available.</text> </level> <level label="e"> <text>The Administration shall adopt regulations to carry out this section.</text> </level> <level label="f"> <text>On or before December 31 each year, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the program established under this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-216" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>For fiscal year 2018 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $3,000,000 from general funds or the proceeds from the sale of State general obligation bonds for the Shelter and Transitional Housing Facilities Grant Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-217" future_version_removed="true" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project, undertaking, or a part of a project or undertaking, including the real, personal, and mixed property involved, qualifies as a community development project if it is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved to promote sound community development.</text> </level> <level label="b"> <text>A community development project shall provide for:</text> <level label="1"> <text>new or existing housing:</text> <level label="i"> <text>that is or will be occupied in substantial part by families of limited income; or</text> </level> <level label="ii"> <text>at least 20% of which is or will be occupied by families of limited income, if the project is financed with bonds, notes, or other evidences of indebtedness issued by the Administration, the income from which being includable in the holder’s gross income under the Internal Revenue Code as determined by the Administration at the time of issue;</text> </level> </level> <level label="2"> <text>any improvements, such as streets, roads, sewer lines, and water lines that are needed to support the housing; and</text> </level> <level label="3"> <text>the public or private commercial, educational, cultural, recreational, community, or civic facilities that are needed to support the housing.</text> </level> </level> <level label="c"> <text>A community development project may include public or private commercial, educational, cultural, recreational, community, or civic facilities that are not needed to support the housing, if:</text> <level label="1"> <text>they are less than a substantial part of the project; or</text> </level> <level label="2"> <text>the Secretary finds that they will promote sound community development.</text> </level> </level> <level label="d"> <level label="1"> <text>The Administration shall administer community development projects that:</text> <level label="i"> <text>are in sustainable communities approved under § 6–305 of this article; and</text> </level> <level label="ii"> <text>provide employees with financial assistance in the form of grants to buy homes near their workplaces.</text> </level> </level> <level label="2"> <text>A community development project administered under this subsection is not subject to the provisions of subsection (b)(1) of this section that require part of the housing to be occupied by families of limited income.</text> </level> <level label="3"> <text>The community development projects administered under this subsection shall be known as the “Live Near Your Work” program.</text> </level> <level label="4"> <text>The Secretary shall adopt regulations to implement the “Live Near Your Work” program established under this subsection.</text> </level> <level label="5"> <level label="i"> <text>In fiscal year 2007 and fiscal year 2008, the Governor may include in the State budget $250,000 for the “Live Near Your Work” program established under this subsection.</text> </level> <level label="ii"> <text>In fiscal year 2009 and every fiscal year thereafter, the Governor may include in the State budget no less than $250,000 and no more than $500,000 for the “Live Near Your Work” program established under this subsection.</text> </level> </level> </level> <level label="e"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Current student” means an individual who:</text> <level label="1"> <text>attends a public institution of higher education in the State; and</text> </level> <level label="2"> <text>is a degree–seeking, full–time equivalent student in an undergraduate level, graduate level, or professional degree program.</text> </level> </level> <level label="iii"> <text>“Public institution of higher education” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="iv"> <text>“Recent graduate” means an individual who, within 5 years before applying for assistance under this section, graduated from a public institution of higher education in the State with at least:</text> <level label="1"> <text>120 credits in an undergraduate level program; or</text> </level> <level label="2"> <text>30 credits in a graduate level or professional degree program.</text> </level> </level> </level> <level label="2"> <text>The Administration may administer community development projects that:</text> <level label="i"> <text>are in sustainable communities approved under § 6–305 of this article; and</text> </level> <level label="ii"> <text>provide current students and recent graduates with financial assistance in the form of grants to buy homes near the school of the student or graduate.</text> </level> </level> <level label="3"> <text>A community development project administered under this subsection is not subject to the provisions of subsection (b)(1) of this section that require part of the housing to be occupied by families of limited income.</text> </level> <level label="4"> <text>The community development projects administered under this subsection shall be known as the Live Near Your School program.</text> </level> <level label="5"> <text>The Administration shall adopt regulations to implement the Live Near Your School program established under this subsection.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-218" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project for a residential building qualifies as an energy conservation project if it consists of:</text> <level label="1"> <text>the purchase or installation of:</text> <level label="i"> <text>caulking or weather stripping;</text> </level> <level label="ii"> <text>a clock thermostat;</text> </level> <level label="iii"> <text>ceiling, attic, wall, floor, or duct insulation;</text> </level> <level label="iv"> <text>water heater insulation;</text> </level> <level label="v"> <text>a storm window or door, multiglazed window or door, or heat–absorbing or heat–reflecting window or floor material;</text> </level> <level label="vi"> <text>a device associated with load management techniques;</text> </level> <level label="vii"> <text>an automatic energy control system;</text> </level> <level label="viii"> <text>machinery, equipment, or a facility that uses groundwater as a heat source for a heating system or as a heat sink for an air conditioning system;</text> </level> <level label="ix"> <text>a furnace efficiency modification, including:</text> <level label="1"> <text>a replacement burner, furnace, or boiler or any combination of them that increases the energy efficiency of the heating system;</text> </level> <level label="2"> <text>a device for modifying a flue opening that increases the energy efficiency of the heating system; and</text> </level> <level label="3"> <text>an electrical or mechanical furnace ignition system that replaces a standing gas pilot light; and</text> </level> </level> <level label="x"> <text>any other energy conservation improvement that the Administration determines by regulation to be appropriate and consistent with this subtitle; or</text> </level> </level> <level label="2"> <text>a planning or technical service, a residential energy audit, or a conversion from a master utility meter to individual utility meters if the service, audit, or conversion is related to or undertaken with the installation of an item specified in item (1) of this subsection.</text> </level> </level> <level label="b"> <text>A project for a commercial building qualifies as an energy conservation project if it consists of:</text> <level label="1"> <text>the purchase, installation, or modification of an installation that is designed primarily to reduce the consumption of energy, including:</text> <level label="i"> <text>caulking or weather stripping;</text> </level> <level label="ii"> <text>insulating the building structure or a system in the building;</text> </level> <level label="iii"> <text>a storm window or door, a multiglazed window or door, a heat–absorbing or heat–reflecting window or door system, glazing, a reduction in glass area, or another window or door system modification;</text> </level> <level label="iv"> <text>an automatic energy control system;</text> </level> <level label="v"> <text>equipment that is associated with an automatic energy control system and that is required to operate a variable steam, hydraulic, or ventilation system;</text> </level> <level label="vi"> <text>the replacement or modification of a lighting system to increase energy efficiency without increasing the overall illumination, unless the increase in illumination is necessary to conform to State or local law;</text> </level> <level label="vii"> <text>an energy recovery system;</text> </level> <level label="viii"> <text>a cogeneration system;</text> </level> <level label="ix"> <text>machinery, equipment, or a facility that uses groundwater as a heat source for a heating system or as a heat sink for an air conditioning system;</text> </level> <level label="x"> <text>a modification of a furnace or utility plant and distribution system including:</text> <level label="1"> <text>a replacement burner, furnace, or boiler or any combination of them that increases the energy efficiency of the heating system;</text> </level> <level label="2"> <text>a device for modifying a flue opening that increases the energy efficiency of the heating system; and</text> </level> <level label="3"> <text>an electrical or mechanical furnace ignition system that replaces a standing gas pilot light; or</text> </level> </level> <level label="xi"> <text>any other energy conservation improvement that the Administration determines by regulation to be appropriate and consistent with this subtitle; or</text> </level> </level> <level label="2"> <text>a planning or technical service or a commercial energy audit, if the service or audit is related to or undertaken with the installation, or the modification of an installation, of an item specified in item (1) of this subsection.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-219" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project or undertaking qualifies as a home improvement project if, by improvement, alteration, addition, or repair, it substantially protects or improves the basic liveability of a residential building that will be occupied in substantial part by families of limited income.</text> </level> <level label="b"> <text>A home improvement project for a residential building that contains more than four dwelling units is subject to the provisions of this subtitle that apply to a community development project.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-220" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>This section does not apply to a facility if a local obligation that finances the facility is a private activity bond under § 141 of the Internal Revenue Code, for which an allocation under § 146 of the Internal Revenue Code is required.</text> </level> <level label="b"> <level label="1"> <text>A project, undertaking, or facility qualifies as an infrastructure project if it is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by or on behalf of a political subdivision to provide the essential physical elements that are the basis of the public service system.</text> </level> <level label="2"> <text>Infrastructure projects include streets, sidewalks, curbs, sewer and water systems, bridges, and public buildings that are owned by a political subdivision or a governmental unit of a political subdivision.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-221" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project or undertaking, including the real, personal, and mixed property involved, qualifies as a public purpose project if it is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved with the financial assistance of the Administration or the assistance of federal low-income housing credits authorized by the Internal Revenue Code, and it is:</text> <level label="1"> <text>eligible wholly or partly for federal low-income housing credits; or</text> </level> <level label="2"> <text>located in a distressed area designated under subsection (e) of this section.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, a public purpose project:</text> <level label="1"> <text>shall provide in substantial part for existing or new housing; and</text> </level> <level label="2"> <text>may include:</text> <level label="i"> <text>any improvements, such as streets, roads, sewer lines, and water lines; and</text> </level> <level label="ii"> <text>public or private commercial, educational, cultural, recreational, community, or civic facilities.</text> </level> </level> </level> <level label="c"> <text>A public purpose project may include a greater proportion of public or private facilities if the Secretary determines that to do so would promote sound community development.</text> </level> <level label="d"> <text>All or part of the housing portion of a public purpose project shall be occupied by families of limited income.</text> </level> <level label="e"> <text>At the request of a political subdivision, the Secretary may designate a distressed area of the political subdivision after considering factors including:</text> <level label="1"> <text>the availability, cost, and condition of housing and neighborhood facilities, including the age and number of abandoned and substandard structures;</text> </level> <level label="2"> <text>the incomes of residents relative to State or area-wide regional median incomes, including the number of individuals who are welfare recipients, unemployed, or living in poverty;</text> </level> <level label="3"> <text>the need to finance housing or public or private facilities to upgrade the social and economic conditions of the distressed area;</text> </level> <level label="4"> <text>the plans and financial commitment of the political subdivision to undertake improvements in the distressed area; and</text> </level> <level label="5"> <text>other standards and criteria that the Secretary considers relevant, including standards established for other State or federal programs.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-222" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project qualifies as a solar energy project if it:</text> <level label="1"> <text>is an addition, alteration, or improvement to a residential building or a commercial building; and</text> </level> <level label="2"> <text>is designed to reduce the energy requirements of the building by using:</text> <level label="i"> <text>wind energy;</text> </level> <level label="ii"> <text>energy from a wood-burning appliance; or</text> </level> <level label="iii"> <text>solar energy of:</text> <level label="1"> <text>the active type based on mechanically forced energy transfer;</text> </level> <level label="2"> <text>the passive type based on convective, conductive, or radiant energy transfer; or</text> </level> <level label="3"> <text>a combination of these types.</text> </level> </level> </level> </level> <level label="b"> <text>A solar energy project may include:</text> <level label="1"> <text>a solar process heat device;</text> </level> <level label="2"> <text>a solar electric device; and</text> </level> <level label="3"> <text>an earth–sheltered building in which the sheltering substantially reduces the consumption of energy by the building.</text> </level> </level> <level label="c"> <text>A solar energy project may not include a fireplace, unless the fireplace is an integral part of a system designed to use passive solar energy.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-223" future_version_removed="true" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A project qualifies as a business project if the project is:</text> <level label="1"> <text>located in:</text> <level label="i"> <text>an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or</text> </level> <level label="ii"> <text>a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles County, Garrett County, Howard County, Montgomery County, Prince George’s County, Somerset County, or Wicomico County; and</text> </level> </level> <level label="2"> <level label="i"> <text>acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by a person or an entity for the purposes of carrying on a business whether or not for profit; or</text> </level> <level label="ii"> <text>eligible for funding from the Neighborhood Business Development Fund under § 6–310 of this article.</text> </level> </level> </level> <level label="b"> <text>Repayment of principal and interest for a business project may be secured by:</text> <level label="1"> <text>real property;</text> </level> <level label="2"> <text>personal property;</text> </level> <level label="3"> <text>bank accounts;</text> </level> <level label="4"> <text>certificates of deposit, stocks, and bonds;</text> </level> <level label="5"> <text>credit enhancement, assurance, or guaranty; or</text> </level> <level label="6"> <text>any other collateral acceptable to the Administration.</text> </level> </level> <level label="c"> <text>Financial assistance for a business project may be provided as:</text> <level label="1"> <text>a loan;</text> </level> <level label="2"> <text>a reduction in the principal obligation of or interest rate on a loan or portion of a loan;</text> </level> <level label="3"> <text>a prepayment of interest on a subordinate or superior loan or portion of a loan;</text> </level> <level label="4"> <text>an assurance;</text> </level> <level label="5"> <text>a guarantee or other form of credit enhancement; or</text> </level> <level label="6"> <text>a promissory note that may be converted to an equity ownership interest and liquidated at the earliest opportunity to realize the highest market value for the Administration.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-225" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration shall administer a program of financial assistance for:</text> <level label="1"> <text>community development projects;</text> </level> <level label="2"> <text>energy conservation projects;</text> </level> <level label="3"> <text>home improvement projects;</text> </level> <level label="4"> <text>public purpose projects;</text> </level> <level label="5"> <text>solar energy projects;</text> </level> <level label="6"> <text>special housing facilities; and</text> </level> <level label="7"> <text>business projects.</text> </level> </level> <level label="b"> <text>The Administration shall provide financial assistance for projects and facilities under this section with money that the Administration can get for them from any source, including:</text> <level label="1"> <text>payments under federal law;</text> </level> <level label="2"> <text>bonds or notes issued by the Administration;</text> </level> <level label="3"> <text>bonds or notes issued by the State; and</text> </level> <level label="4"> <text>mortgage-backed securities and proceeds of investments in them.</text> </level> </level> <level label="c"> <text>A loan for a home improvement project having a principal balance exceeding $5,000 shall be secured by a mortgage.</text> </level> <level label="d"> <text>Subject to an agreement with noteholders or bondholders, the Administration may consent that a loan, loan commitment, or agreement to which the Administration is a party be modified as to:</text> <level label="1"> <text>the interest rate;</text> </level> <level label="2"> <text>the time of payments of an installment of principal or interest;</text> </level> <level label="3"> <text>security; or</text> </level> <level label="4"> <text>any other term.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-226" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>In connection with property on which it holds a mortgage, the Administration may:</text> <level label="i"> <text>foreclose on the property;</text> </level> <level label="ii"> <text>begin an action to protect or enforce a right conferred on the Administration by law or any agreement;</text> </level> <level label="iii"> <text>bid for and purchase the property at a foreclosure or other sale; and</text> </level> <level label="iv"> <text>acquire and take possession of the property.</text> </level> </level> <level label="2"> <text>In an action under this subsection, the Administration may:</text> <level label="i"> <text>complete, administer, and pay the principal of and interest on an obligation incurred in connection with the property; and</text> </level> <level label="ii"> <text>dispose of and otherwise deal with the property, so as to protect the interests of the Administration.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>This subsection does not apply to a lien held in connection with a public purpose project.</text> </level> <level label="2"> <text>The Administration may not lend money on the security of property unless the lien on the property is superior to all other liens, except for:</text> <level label="i"> <text>a lien for taxes owed to the State or a political subdivision; or</text> </level> <level label="ii"> <text>an earlier mortgage lien.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>At public or private sale and with or without public bidding, the Administration may sell a mortgage or other obligation that the Administration holds.</text> </level> <level label="2"> <text>The Administration may retain the servicing rights and charge servicing fees for any mortgage or other obligation the Administration sells.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-227" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration shall coordinate the promotion of its programs of financial assistance for energy conservation projects with the energy conservation promotion programs of the Maryland Energy Office.</text> </level> <level label="b"> <level label="1"> <text>The Administration shall adopt regulations to establish and implement programs of financial assistance for energy conservation projects and solar energy projects.</text> </level> <level label="2"> <text>These regulations shall be consistent with the provisions of this subtitle that generally concern the powers of the Administration to award financial assistance for energy conservation projects and solar energy projects.</text> </level> </level> <level label="c"> <text>The regulations shall include provisions about:</text> <level label="1"> <text>eligibility and application requirements;</text> </level> <level label="2"> <text>interest rates, maximum loan amounts, and the terms of loans;</text> </level> <level label="3"> <text>allocations of money among classes of eligible buildings;</text> </level> <level label="4"> <text>credit and underwriting requirements; and</text> </level> <level label="5"> <text>warranties, representations, forms of security, certifications, inspections, audits, and any other means of ensuring compliance with and enforcing the terms of financial assistance awarded under this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-228" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>To finance infrastructure projects, the Administration may:</text> <level label="1"> <text>make, purchase, and participate in making loans;</text> </level> <level label="2"> <text>purchase local obligations issued to finance such projects; and</text> </level> <level label="3"> <text>provide any other form of financial assistance other than grants.</text> </level> </level> <level label="b"> <text>All transactions under subsection (a) of this section shall be evidenced by instruments containing the terms and conditions necessary to secure payment of all obligations and charges due to the Administration.</text> </level> <level label="c"> <text>Subject to an agreement with holders of its bonds, notes, or other obligations, the Administration may consent that a loan, local obligation, commitment, instrument, or agreement that the Administration holds or to which it is a party may be modified as to:</text> <level label="1"> <text>interest rate;</text> </level> <level label="2"> <text>time of payment of any installment of principal or interest;</text> </level> <level label="3"> <text>security; or</text> </level> <level label="4"> <text>any other term.</text> </level> </level> <level label="d"> <level label="1"> <text>In connection with any security that it receives or owns, including a local obligation, the Administration may:</text> <level label="i"> <text>sue to protect or enforce its rights under any law or agreement; or</text> </level> <level label="ii"> <text>acquire or take possession of the security.</text> </level> </level> <level label="2"> <text>If the Administration begins such an action, it may:</text> <level label="i"> <text>administer the security;</text> </level> <level label="ii"> <text>pay the principal and interest on any obligation incurred in connection with the security;</text> </level> <level label="iii"> <text>dispose of the security; and</text> </level> <level label="iv"> <text>otherwise deal with the security so as to protect the Administration’s interests.</text> </level> </level> </level> <level label="e"> <text>The Administration may sell a loan, agreement, local obligation, or other obligation that it holds at public or private sale with or without public bidding.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-229" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>If the Administration purchases a local obligation, the procedures and requirements for the issuance or sale of the local obligation shall be as provided in §§ 4–230 through 4–233 of this subtitle.</text> </level> <level label="2"> <text>Notwithstanding any other public general law or public local law, charter, or ordinance, an issuer of a local obligation may sell a local obligation to the Administration to finance an infrastructure project:</text> <level label="i"> <text>at private or public sale, with or without public bidding;</text> </level> <level label="ii"> <text>without limitation on the denomination of the local obligation; and</text> </level> <level label="iii"> <text>at any interest rate, cost, or price that the issuer considers necessary or desirable.</text> </level> </level> <level label="3"> <text>The issuer of a local obligation may pay any fee or charge necessary for the Administration to:</text> <level label="i"> <text>sell bonds, notes, or other obligations of the Administration;</text> </level> <level label="ii"> <text>provide the financial assistance authorized by § 4–228 of this subtitle;</text> </level> <level label="iii"> <text>provide any other guarantee, credit enhancement, or additional security for a note, bond, or obligation of the Administration; or</text> </level> <level label="iv"> <text>insure obligations of the issuer or of the Administration.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Notwithstanding any other public general law, public local law, charter, or ordinance, to enhance the security or the marketability of the bonds, notes, or obligations of the Administration that are sold to finance an infrastructure project:</text> <level label="i"> <text>a political subdivision may agree with the Administration to pledge any money, including a share of income tax, that the political subdivision is entitled to receive from the State; and</text> </level> <level label="ii"> <text>if a political subdivision is a county, the county may agree with the Administration to pledge, on behalf of a municipal corporation located in the county, any money, including a share of income tax, that the county is entitled to receive from the State.</text> </level> </level> <level label="2"> <text>In accordance with a pledge under paragraph (1) of this subsection, the Comptroller and the State Treasurer shall cause the money pledged to be paid to the Administration or a trustee that the Administration designates.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-230" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>Notwithstanding any other public general law, or public local law, charter, or ordinance, a political subdivision or a governmental unit of a political subdivision may issue a local obligation to be purchased by the Administration for infrastructure projects.</text> </level> <level label="2"> <text>A local obligation shall be issued in accordance with this section.</text> </level> <level label="3"> <text>Each local obligation must be authorized by resolution or ordinance of the governing body of the issuer.</text> </level> </level> <level label="b"> <level label="1"> <text>Before a local obligation is issued under this section:</text> <level label="i"> <text>the issuer shall publish a notice of the proposed issuance in a newspaper of general circulation in the jurisdiction of the issuer; and</text> </level> <level label="ii"> <text>the governing body of the issuer shall hold a public hearing on the proposed issuance.</text> </level> </level> <level label="2"> <text>The notice shall include the proposed amount of the issue, the nature of the infrastructure project to be financed, the time and place of the public hearing, and the name and address of the governing body where written comments may be sent.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-231" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A resolution or ordinance that authorizes a local obligation shall contain:</text> <level label="1"> <text>a statement of the public purpose for which the proceeds of the local obligation are to be spent;</text> </level> <level label="2"> <text>the form of the local obligation, including:</text> <level label="i"> <text>each place and time of payment;</text> </level> <level label="ii"> <text>each interest rate or maximum interest rate;</text> </level> <level label="iii"> <text>the titles of the officials whose signatures shall be on it;</text> </level> <level label="iv"> <text>a reference to this part as the authority for issuing it; and</text> </level> <level label="v"> <text>the taxes or special revenues from which the principal and interest will be payable;</text> </level> </level> <level label="3"> <text>a provision for the disposition of the proceeds of sale of the local obligation;</text> </level> <level label="4"> <text>a provision that the principal and interest shall be payable to the Administration or its designee;</text> </level> <level label="5"> <text>a provision for payment of the principal and interest that specifies each source of payment;</text> </level> <level label="6"> <text>a provision that the local obligation is a valid and binding obligation of the issuer in accordance with its terms even if an official whose signature appears on the local obligation:</text> <level label="i"> <text>ceases to be an official before the local obligation is delivered; or</text> </level> <level label="ii"> <text>becomes an official after the date of the issue; and</text> </level> </level> <level label="7"> <text>any other provision that is not inconsistent with this subsection and that the governing body of the issuer considers appropriate, including a provision that:</text> <level label="i"> <text>the chief elected official of the issuer may modify the forms adopted by the resolution or ordinance without altering the substance of the forms;</text> </level> <level label="ii"> <text>the official signatures and seals to be affixed to a local obligation may be imprinted in facsimile, except for the signature of the clerk or secretary of the issuer, which shall be affixed manually;</text> </level> <level label="iii"> <text>subject to terms that the Administration specifies, if the local obligation contains a statement of redemption provisions that is acceptable to the Administration all or a portion of a local obligation is redeemable at the option of the issuer at any time before maturity at the price, at or above the par value of the local obligation, that is acceptable to the Administration and set in the enabling resolution or ordinance; and</text> </level> <level label="iv"> <text>a local obligation may be in any denomination that is acceptable to the Administration and shall be in fully registered form.</text> </level> </level> </level> <level label="b"> <text>A provision under subsection (a)(5) of this section is a covenant binding the issuer to provide the money from the specified source or sources when principal and interest become due and payable.</text> </level> <level label="c"> <level label="1"> <text>A local obligation that an issuer issues under this part shall have all the attributes of a negotiable instrument under § 19–224 of the Local Government Article.</text> </level> <level label="2"> <text>The principal of and interest on a local obligation in the hands of its owner are exempt from taxation by the State or a political subdivision.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-232" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>Each ordinance or resolution enacted under this section:</text> <level label="i"> <text>shall be adopted by the governing body of the issuer;</text> </level> <level label="ii"> <text>shall be approved by the chief executive officer, if any, of the issuer; and</text> </level> <level label="iii"> <text>shall have the force of law.</text> </level> </level> <level label="2"> <text>Except as provided in subsection (b) of this section, an ordinance, a resolution, or the question of the issuance of local obligations authorized by an ordinance or resolution need not be submitted to a referendum of the qualified voters of the issuer.</text> </level> </level> <level label="b"> <text>The qualified voters of a political subdivision may petition to referendum an ordinance or resolution that authorizes the issuance of local obligations, if:</text> <level label="1"> <text>the charter of the political subdivision authorizes the voters to do so; and</text> </level> <level label="2"> <text>the petition is filed not later than 20 days after the ordinance or resolution is adopted by the governing body of the political subdivision.</text> </level> </level> <level label="c"> <text>An ordinance or resolution authorizing the issuance of local obligations:</text> <level label="1"> <text>may be adopted at the public hearing required under § 4-230(b) of this subtitle or at another regular or special session of the governing body; and</text> </level> <level label="2"> <text>shall be effective on the date adopted and approved.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-232.1" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>Each issuance by a municipal corporation of a local obligation under § 4–230 of this subtitle may be secured by a pledge from the county in which the municipal corporation is located.</text> </level> <level label="b"> <text>To secure a local obligation under § 4–230 of this subtitle, a county may pledge on behalf of a municipal corporation located in the county:</text> <level label="1"> <text>the faith and credit of the county; or</text> </level> <level label="2"> <text>specific revenue of the county.</text> </level> </level> <level label="c"> <level label="1"> <text>A pledge by a county under this section shall be authorized by an ordinance or a resolution of the county.</text> </level> <level label="2"> <text>Each ordinance or resolution enacted under this section shall:</text> <level label="i"> <text>be adopted by the governing body of the county;</text> </level> <level label="ii"> <text>be approved by the chief executive officer, if any, of the county; and</text> </level> <level label="iii"> <text>have the force of law.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, if a local obligation is secured under this section by a pledge of the faith and credit of a county to make prompt payment from the tax and other revenues described in the enabling resolution or ordinance:</text> <level label="i"> <text>the pledge is a covenant to levy taxes sufficient to pay the principal of and interest on the local obligation when due:</text> <level label="1"> <text>on all real and tangible personal property that is within the corporate limits of the county and subject to assessment for unlimited ad valorem taxation; and</text> </level> <level label="2"> <text>in each year in which the local obligation is outstanding; and</text> </level> </level> <level label="ii"> <text>if at the time of issuance of a local obligation there is a charter or statutory limit on the power of the county to levy property taxes, the pledge is a covenant to levy ad valorem taxes, within that limit, sufficient to pay the principal of and interest on the local obligation:</text> <level label="1"> <text>on all real and tangible personal property that is within the corporate limits of the county and subject to assessment for ad valorem taxation; and</text> </level> <level label="2"> <text>in each year in which the local obligation is outstanding.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>A county may not make a pledge under this section if the pledge would cause the county to exceed any limit set, by the charter of the county or by statute, on the power of the county to make the pledge.</text> </level> <level label="ii"> <text>Notwithstanding subparagraph (i) of this paragraph, a limit on the power of a county to make a pledge that is imposed after the issuance of a local obligation that is secured by a pledge under this section does not affect that local obligation.</text> </level> </level> </level> <level label="e"> <text>If a local obligation is secured under this section by a pledge of specific revenue of a county, the specific revenue of the county may include:</text> <level label="1"> <text>payments to the issuer from the State or federal government;</text> </level> <level label="2"> <text>special benefit assessments, taxes, fees, or service charges that the county has authority to impose, levy, or charge; and</text> </level> <level label="3"> <text>revenue of the county expected to be generated by the infrastructure project to be financed.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-233" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>Each issuance of a local obligation under § 4-230 of this subtitle shall be secured by, at the discretion of the Administration, a pledge of the faith and credit of the issuer or a pledge of specific revenue of the issuer or the facility being financed as designated and described in the authorizing ordinance or resolution.</text> </level> <level label="b"> <text>If a local obligation is secured by a pledge of the faith and credit of the issuer to make prompt payment from the tax and other revenues described in the enabling resolution or ordinance:</text> <level label="1"> <text>the pledge is a covenant to levy taxes sufficient to pay the principal of and interest on the local obligation when due:</text> <level label="i"> <text>on all real and tangible personal property that is within the issuer’s corporate limits and subject to assessment for unlimited ad valorem taxation; and</text> </level> <level label="ii"> <text>in each year in which the local obligation is outstanding;</text> </level> </level> <level label="2"> <text>if at the time of issuance of a local obligation there is a charter or statutory limit on the power of the issuer to levy property taxes, the pledge is a covenant to levy ad valorem taxes, within that limit, sufficient to pay the principal of and interest on the local obligation:</text> <level label="i"> <text>on all real and tangible personal property that is within the issuer’s corporate limits and subject to assessment for ad valorem taxation; and</text> </level> <level label="ii"> <text>in each year in which the local obligation is outstanding;</text> </level> </level> <level label="3"> <text>a local obligation may not be issued if the issuance would cause the issuer to exceed any limit set by the charter of the issuer or by statute on the power of the issuer to incur indebtedness; and</text> </level> <level label="4"> <text>notwithstanding item (3) of this subsection:</text> <level label="i"> <text>a limit on the power to incur indebtedness imposed after the issuance of a local obligation does not affect that obligation; and</text> </level> <level label="ii"> <text>outstanding local obligations of an issuer are not affected by the issuance of a new local obligation if the new obligation is consistent with an increase in or the elimination of a limit on the power to incur indebtedness.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>An issuer of a local obligation under § 4-230 of this subtitle may secure payment by the pledge of specific revenues of the issuer.</text> </level> <level label="2"> <text>If a local obligation issued under § 4-230 of this subtitle is secured by the pledge of specific revenue, the specific revenue may include:</text> <level label="i"> <text>payments to the issuer from the State or federal government;</text> </level> <level label="ii"> <text>special benefit assessments, taxes, fees, or service charges that the issuer has authority to impose, levy, or charge; or</text> </level> <level label="iii"> <text>revenue expected to be generated by the facility to be financed.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-233.1" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Capital reserve fund” means a reserve fund created under this section.</text> </level> <level label="3"> <text>“Minimum capital reserve requirement” means the minimum capital reserve amount established by the Administration for a capital reserve fund in connection with the issuance of bonds, notes, or other obligations of the Administration in connection with the financing of one or more infrastructure projects.</text> </level> </level> <level label="b"> <text>The Administration may establish one or more capital reserve funds in connection with the financing of one or more infrastructure projects.</text> </level> <level label="c"> <text>Money in a capital reserve fund shall be used solely to pay the principal of, and premium and interest on, the bonds, notes, or other obligations of the Administration:</text> <level label="1"> <text>secured by the capital reserve fund; and</text> </level> <level label="2"> <text>issued in connection with financing infrastructure projects.</text> </level> </level> <level label="d"> <text>A capital reserve fund may consist of:</text> <level label="1"> <text>money appropriated in the State budget for the purposes of the capital reserve fund;</text> </level> <level label="2"> <text>proceeds of a sale of bonds, notes, or other obligations of the Administration or the State;</text> </level> <level label="3"> <text>investment earnings of the capital reserve fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of a capital reserve fund.</text> </level> </level> <level label="e"> <level label="1"> <text>If the balance of a capital reserve fund is less than the minimum capital reserve requirement established by the Administration for that fund, the Administration:</text> <level label="i"> <text>may not use money from the fund for the optional purchase or redemption of a bond, note, or other obligation of the Administration; and</text> </level> <level label="ii"> <text>shall replenish the fund from available operating revenue generated by infrastructure projects or funds provided by the State.</text> </level> </level> <level label="2"> <text>If available operating revenue generated by infrastructure projects and funds provided by the State are insufficient to replenish a capital reserve fund as required under paragraph (1) of this subsection, the Administration shall request that the Comptroller advance the contingent funding to replenish the capital reserve fund as provided in the Local Government Infrastructure Financing Program Capital Reserve Fund Loan of 2009 (Chapter 719 (S.B. 932/H.B. 1330) of the Acts of the General Assembly of 2009) or any other bond bill enabling act for this purpose.</text> </level> </level> <level label="f"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Administration may not issue bonds, notes, or other obligations secured in whole or in part by a capital reserve fund if on issuance the amount in the capital reserve fund will be less than the minimum capital reserve requirement.</text> </level> <level label="2"> <text>The limitation under paragraph (1) of this subsection does not apply if at the time of issuance an amount is deposited in the capital reserve fund so that on issuance the total amount in the capital reserve fund will be at least equal to the minimum capital reserve requirement.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-234" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>In this section, “government–sponsored enterprise” means the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, or other agency or instrumentality of or chartered by the federal government that has similar powers.</text> </level> <level label="b"> <level label="1"> <text>To finance community development projects, public purpose projects, or residential mortgage loans, the Administration may purchase or issue securities that are backed by mortgage loans and guaranteed by the Government National Mortgage Association or a government–sponsored enterprise.</text> </level> <level label="2"> <text>To finance business projects, the Administration may purchase or issue securities that are backed by loans or other obligations.</text> </level> </level> <level label="c"> <level label="1"> <text>Notwithstanding inconsistent provisions of this subtitle relating to bonds or notes that the Administration purchases or issues, the issuance, terms, and conditions of a security that the Administration issues under this section may be as the Administration finds necessary or desirable for guaranty by:</text> <level label="i"> <text>the Government National Mortgage Association or a government–sponsored enterprise, for projects or loans described under subsection (b)(1) of this section; or</text> </level> <level label="ii"> <text>the Maryland Housing Fund, a private entity, or a government–sponsored enterprise, for projects described under subsection (b)(2) of this section.</text> </level> </level> <level label="2"> <text>Except as provided by paragraph (1) of this subsection, the provisions of this subtitle that relate to bonds or notes issued by the Administration apply to securities purchased or issued under this section.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-235" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Mortgage loan” includes a loan to:</text> <level label="i"> <text>finance or refinance the purchase of stock or membership in a cooperative ownership housing corporation; or</text> </level> <level label="ii"> <text>rehabilitate units in a cooperative ownership housing corporation.</text> </level> </level> <level label="3"> <text>“Reverse equity mortgage loan” includes a loan that uses the equity in a home as collateral.</text> </level> </level> <level label="b"> <level label="1"> <text>The Administration may make, participate in making, and undertake a commitment for:</text> <level label="i"> <text>a residential mortgage loan to a family of limited income:</text> <level label="1"> <text>for a family that has a disabled family member who will reside in the dwelling;</text> </level> <level label="2"> <text>for an emergency housing need as determined by the Secretary;</text> </level> <level label="3"> <text>for settlement and down payment costs; or</text> </level> <level label="4"> <text>that is made in conjunction with a loan funded with State appropriated funds if the State appropriated funded loan comprises at least 20% of the total amount loaned;</text> </level> </level> <level label="ii"> <text>financial assistance to a family of limited income:</text> <level label="1"> <text>for maintaining or modifying its existing residential mortgage loan; or</text> </level> <level label="2"> <text>that is made in conjunction with a new residential mortgage loan to enable a homeowner to refinance an existing residential mortgage loan;</text> </level> </level> <level label="iii"> <text>the refinancing of a residential mortgage loan of a homeowner if the loan was made by the Department or Administration; and</text> </level> <level label="iv"> <text>financial assistance to a homeowner for:</text> <level label="1"> <text>purchasing the homeowner’s primary residence and making payments on the homeowner’s student loan debt; or</text> </level> <level label="2"> <text>making payments on the homeowner’s student loan debt in conjunction with the homeowner obtaining separate financial assistance from a source other than the Administration for purchasing the homeowner’s primary residence.</text> </level> </level> </level> <level label="2"> <text>The Secretary shall determine the terms and qualifications for financial assistance under paragraph (1) of this subsection.</text> </level> </level> <level label="c"> <level label="1"> <text>In accordance with § 4–213 of this subtitle, the Administration may make, participate in making, purchase, and undertake a commitment for:</text> <level label="i"> <text>a mortgage loan or other financial assistance secured by a mortgage lien for a community development project or public purpose project; and</text> </level> <level label="ii"> <text>a reverse equity mortgage loan secured by a mortgage lien that is for housing related expenses of an elderly household that qualifies as a family of limited income.</text> </level> </level> <level label="2"> <text>Financial assistance to purchase a dwelling unit in a community development project or public purpose project under paragraph (1)(i) of this subsection may include a temporary loan or advance and a permanent direct mortgage loan to a family of limited income, if otherwise required by law.</text> </level> <level label="3"> <text>Housing related expenses under paragraph (1)(ii) of this subsection include personal expenses that enable the owner to continue to occupy the owner’s home.</text> </level> </level> <level label="d"> <level label="1"> <text>A commitment, mortgage, bond, or secured note shall contain terms and conditions necessary to secure repayment of its loan, the interest on it, and other charges in connection with the loan.</text> </level> <level label="2"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, a mortgage loan for a community development project or a public purpose project and a reverse equity mortgage loan may bear interest at a rate or rates that the Administration finds will make the project economically feasible.</text> </level> <level label="ii"> <text>The Administration may not increase the interest rate originally charged on a permanent direct mortgage loan to a family for the purchase of a dwelling unit in a community development project or a public purpose project.</text> </level> </level> <level label="3"> <text>Subject to any agreement with noteholders or bondholders, the Administration may consent to the modification of the interest rate, time of payment of any installment of principal or interest, security, or any other term, of a mortgage, mortgage loan, reverse equity mortgage loan, mortgage loan commitment, or reverse equity mortgage loan commitment, contract, or agreement to which the Administration is a party.</text> </level> </level> <level label="e"> <text>In connection with property on which it holds a mortgage loan or reverse equity mortgage loan:</text> <level label="1"> <text>the Administration may:</text> <level label="i"> <text>foreclose on the property or begin an action to protect or enforce a right that is conferred on the Administration by law, a mortgage contract, or other agreement;</text> </level> <level label="ii"> <text>bid for and purchase the property at a foreclosure or other sale; or</text> </level> <level label="iii"> <text>acquire or take possession of the property; and</text> </level> </level> <level label="2"> <text>in a manner to protect the interests of the Administration, the Administration may:</text> <level label="i"> <text>complete, administer, and pay the principal of and interest on an obligation incurred in connection with the property;</text> </level> <level label="ii"> <text>dispose of the property; and</text> </level> <level label="iii"> <text>otherwise deal with the property.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to a lien held in connection with a public purpose project.</text> </level> <level label="2"> <text>The Administration may not lend money on the security of property unless the lien on the property is superior to all other liens, except for:</text> <level label="i"> <text>liens for taxes owed to the State or a political subdivision; or</text> </level> <level label="ii"> <text>earlier mortgage liens.</text> </level> </level> </level> <level label="g"> <text>The Administration may:</text> <level label="1"> <text>sell any mortgage or other obligation that it holds, at public or private sale, with or without public bidding; and</text> </level> <level label="2"> <text>retain the servicing rights and charge servicing fees for any mortgage or other obligation the Administration sells.</text> </level> </level> <level label="h"> <text>The Administration may purchase securities backed by mortgages to provide financial assistance to community development projects and public purpose projects and to finance residential mortgage loans with the proceeds of the securities or with investment earnings on the securities.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-236" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>In carrying out this section and §§ 4-237 through 4-241 of this subtitle, the Administration may not make a loan to a mortgage lender or purchase a mortgage loan from a mortgage lender unless the mortgage lender is:</text> <level label="1"> <text>a bank, trust company, savings institution, savings and loan association, national bank association, mortgage banker, or other financial institution that:</text> <level label="i"> <text>has an office in the State; and</text> </level> <level label="ii"> <text>makes or originates residential mortgage loans;</text> </level> </level> <level label="2"> <text>an insurance company authorized to do business in the State; or</text> </level> <level label="3"> <text>the Maryland Home Financing Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-237" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration may:</text> <level label="1"> <text>purchase or commit to purchase, from a mortgage lender that is eligible under § 4–236 of this subtitle, a note, mortgage, or partial interest in a note or mortgage that evidences:</text> <level label="i"> <text>a residential mortgage loan to a family of limited income;</text> </level> <level label="ii"> <text>a mortgage loan to a sponsor of a community development project or a public purpose project;</text> </level> <level label="iii"> <text>a residential mortgage loan to a homeowner for the purchase or rehabilitation of the homeowner’s primary residence if the primary residence is located in a sustainable community;</text> </level> <level label="iv"> <text>a residential mortgage loan for the refinancing of a residential mortgage loan made by the Department or Administration; or</text> </level> <level label="v"> <text>a residential mortgage loan to a homeowner for:</text> <level label="1"> <text>purchasing the homeowner’s primary residence and making payments on the homeowner’s student loan debt; or</text> </level> <level label="2"> <text>purchasing the homeowner’s primary residence in conjunction with the homeowner obtaining separate financial assistance from the Administration for making payments on the homeowner’s student loan debt;</text> </level> </level> </level> <level label="2"> <text>make a loan to an eligible mortgage lender in accordance with this subtitle;</text> </level> <level label="3"> <text>finance, with proceeds of its revenue bonds or notes, all or part of a mortgage purchase program or a loan to a mortgage lenders program; and</text> </level> <level label="4"> <text>take any action necessary or convenient to carry out this subsection, including:</text> <level label="i"> <text>settling or compromising an obligation or debt to the Administration, subject to any agreement with bondholders;</text> </level> <level label="ii"> <text>acquiring an interest in real or personal property by gift, purchase, foreclosure, or otherwise, and selling or otherwise disposing of the property;</text> </level> <level label="iii"> <text>obtaining insurance against loss in connection with its property and other assets, including mortgage loans, in the amount and from the insurer that the Administration considers desirable;</text> </level> <level label="iv"> <text>contracting for servicing of a mortgage loan or an interest in a mortgage loan that the Administration holds or takes as collateral; and</text> </level> <level label="v"> <text>making a contract or commitment that relates to the exercise of any of the powers listed in this subsection.</text> </level> </level> </level> <level label="b"> <text>The Administration may adopt regulations or program directives, as appropriate, to carry out this section, including:</text> <level label="1"> <text>procedures to submit requests for the purchase or sale of mortgage loans or for loans to the eligible mortgage lenders;</text> </level> <level label="2"> <text>restrictions as to the number of family units, locations, or other qualifications or characteristics of dwellings to be financed by residential mortgage loans;</text> </level> <level label="3"> <text>restrictions as to:</text> <level label="i"> <text>the interest rates on loans made from the proceeds of purchases of mortgage loans or from the proceeds of loans to eligible mortgage lenders; or</text> </level> <level label="ii"> <text>returns realized by eligible mortgage lenders;</text> </level> </level> <level label="4"> <text>restrictions on maturities and other terms of loans made from the proceeds of purchases of mortgage loans or from the proceeds of loans to eligible mortgage lenders;</text> </level> <level label="5"> <text>requirements as to the application by eligible mortgage lenders of the proceeds of the purchases or loans;</text> </level> <level label="6"> <text>schedules of fees and charges necessary to provide for expenses and reserves of the Administration;</text> </level> <level label="7"> <text>standards for allocating money among areas of the State and among eligible mortgage lenders; and</text> </level> <level label="8"> <text>provisions on warranties, representations, certifications, rights of inspection and audit, program sanctions, and other methods of ensuring compliance with the terms of purchase commitments and loans.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-238" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>New mortgage loans that the Administration purchases shall be loans to:</text> <level label="i"> <text>families of limited income;</text> </level> <level label="ii"> <text>sponsors of community development projects; or</text> </level> <level label="iii"> <text>homeowners:</text> <level label="1"> <text>with primary residences located in sustainable communities;</text> </level> <level label="2"> <text>who refinance a residential mortgage loan made by the Department or Administration; or</text> </level> <level label="3"> <text>who use the loan proceeds to:</text> </level> <level label="A"> <text>purchase the homeowner’s primary residence and make payments on the homeowner’s student loan debt; or</text> </level> <level label="B"> <text>purchase the homeowner’s primary residence in conjunction with the homeowner obtaining separate financial assistance from the Administration for making payments on the homeowner’s student loan debt.</text> </level> </level> </level> <level label="2"> <text>A commitment that the Administration makes to purchase new mortgage loans shall specify:</text> <level label="i"> <text>the interest rate on loans eligible for purchase, which may not exceed the prevailing interest rate on comparable mortgage loans available in the State, independent of public assistance or purchase; and</text> </level> <level label="ii"> <text>the numbers or volumes of loans under the commitment to be made in specific geographic areas.</text> </level> </level> <level label="3"> <text>For any residential mortgage loans to be used to acquire homes for families of limited income, the commitment shall be limited to loans of a specified amount per dwelling unit, based on the current average sale price of new homes in the area, as determined by the Administration.</text> </level> </level> <level label="b"> <text>A commitment that the Administration makes to purchase existing mortgages shall require that the proceeds of the purchase be:</text> <level label="1"> <text>reinvested, within specified time limits, in new mortgage loans to:</text> <level label="i"> <text>families of limited income; or</text> </level> <level label="ii"> <text>sponsors of community development projects; or</text> </level> </level> <level label="2"> <text>invested in short-term obligations pending the purchase or making of the mortgages.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-239" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>A loan from the Administration to an eligible mortgage lender shall require the eligible mortgage lender to make mortgage loans in principal amounts that add up to at least the amount of the loan from the Administration to:</text> <level label="i"> <text>families of limited income; or</text> </level> <level label="ii"> <text>sponsors of community development projects.</text> </level> </level> <level label="2"> <text>After receiving the loan from the Administration, the eligible mortgage lender shall commit the amount of the mortgage loans required by paragraph (1) of this subsection within the time the Administration sets.</text> </level> </level> <level label="b"> <level label="1"> <text>A loan from the Administration to a mortgage lender is a general obligation of the mortgage lender as to repayment of principal and interest.</text> </level> <level label="2"> <text>Repayment of principal and interest shall be secured by a pledge of and lien on collateral security in an amount that the Administration by regulation determines to be necessary to secure the loan.</text> </level> </level> <level label="c"> <level label="1"> <text>The collateral security shall consist of:</text> <level label="i"> <text>obligations of or guaranteed by the United States, the State, or a political subdivision;</text> </level> <level label="ii"> <text>obligations issued by a unit of the federal government that are satisfactory to the Administration;</text> </level> <level label="iii"> <text>certificates of deposit, time deposits, or similar banking arrangements secured by obligations of or guaranteed by the United States or the State;</text> </level> <level label="iv"> <text>mortgages insured or guaranteed entirely or partly by the Maryland Housing Fund, a unit of the federal government, or a private insurer that the Administration approves; or</text> </level> <level label="v"> <text>other mortgages that the Administration finds to be of reasonably comparable security.</text> </level> </level> <level label="2"> <text>The Administration shall require that:</text> <level label="i"> <text>the collateral be held by a bank or trust company as independent custodian; or</text> </level> <level label="ii"> <text>the mortgage lender enter into a security agreement containing provisions that the Administration considers necessary to identify, maintain, and service the collateral.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The security agreement shall:</text> <level label="i"> <text>provide that the mortgage lender:</text> <level label="1"> <text>holds the collateral as an agent for the Administration; and</text> </level> <level label="2"> <text>is accountable as the trustee of an express trust for the application and disposition of the collateral; and</text> </level> </level> <level label="ii"> <text>require that the income from the collateral be applied only in accordance with the agreement.</text> </level> </level> <level label="2"> <text>A copy of each security agreement shall be filed with the Secretary of State.</text> </level> <level label="3"> <text>Further filing or other action under the Commercial Law Article or any other law of the State is not required to perfect the security interest of the Administration in the collateral or its proceeds or in any addition to or substitution for the collateral or its proceeds.</text> </level> <level label="4"> <text>Once filed, liens and trusts created for the benefit of the Administration under this subsection are binding against each person with a claim against the mortgage lender.</text> </level> <level label="5"> <text>The Administration may establish additional requirements for pledging, assigning, setting aside, or holding the collateral, and making substitutions for or additions to it, and disposing of interest and income from it.</text> </level> <level label="6"> <text>Notwithstanding any other law, a loan to a mortgage lender and the collateral for it are not subject to §§ 17–101 and 17–102 of the Local Government Article or to § 6–202, § 6–205, § 6–206, § 6–209, or § 6–210 of the State Finance and Procurement Article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-240" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>Except as provided in subsection (c) of this section, a mortgage lender shall make a certificate under this section for every residential mortgage loan that the lender makes under a purchase commitment by the Administration with:</text> <level label="1"> <text>the proceeds of purchase of a mortgage loan by the Administration; or</text> </level> <level label="2"> <text>the proceeds of a loan from the Administration.</text> </level> </level> <level label="b"> <text>The certificate shall state that in the mortgage lender’s opinion, based on information given by the mortgagor and on the lender’s knowledge of the prevailing terms and standards of mortgage lending in the area, the mortgagor could not get a mortgage loan on the property in the unassisted private lending market.</text> </level> <level label="c"> <text>The Secretary may waive the requirement for the mortgage lender’s certificate for a residential mortgage loan to a homeowner:</text> <level label="1"> <text>if the homeowner’s primary residence is located in a sustainable community, for the purchase or rehabilitation of the homeowner’s primary residence;</text> </level> <level label="2"> <text>for the refinancing of a residential mortgage loan of the homeowner if the loan was made by the Department or Administration; or</text> </level> <level label="3"> <text>for either of the purposes specified in § 4–237(a)(1)(v) of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-241" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>Except as required to qualify for insurance or guaranty by the federal government, a residential mortgage loan may not be assigned to or assumed by a person not qualified under the appropriate Administration program if the residential mortgage loan is:</text> <level label="1"> <text>a new loan that the Administration purchases or in which the Administration purchases an interest;</text> </level> <level label="2"> <text>a loan made with the proceeds of purchase by the Administration of a residential mortgage; or</text> </level> <level label="3"> <text>a loan made with the proceeds of a loan from the Administration to a mortgage lender.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-242" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>In providing financial assistance to a homeowner that includes the purchase of the homeowner’s primary residence and payments on the homeowner’s student loan debt, the Administration shall give priority to selling residential property that is owned by the Administration. </text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-244" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>The Administration may provide financial assistance, meet any development cost, or carry out any other of its purposes by spending:</text> <level label="1"> <text>money appropriated by the General Assembly;</text> </level> <level label="2"> <text>the proceeds of a State loan to the extent provided by the General Assembly or a governmental unit authorized to issue bonds;</text> </level> <level label="3"> <text>the proceeds of the bonds, notes, or other evidences of indebtedness that the Administration issues, payable solely from revenues of the Administration as provided in this part; or</text> </level> <level label="4"> <text>any other money available to the Administration for community development under this subtitle:</text> <level label="i"> <text>from its own operations;</text> </level> <level label="ii"> <text>from investment of the proceeds of its bonds, notes, or other indebtedness; or</text> </level> <level label="iii"> <text>from any other public or private source.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as otherwise provided in a determination made under this section, the Administration shall deposit with the State Treasurer any money that it does not need to meet current expenses and obligations.</text> </level> <level label="2"> <text>The State Treasurer shall:</text> <level label="i"> <text>credit the money to the Administration;</text> </level> <level label="ii"> <text>invest the money as provided by statute; and</text> </level> <level label="iii"> <text>credit earnings from the money to the Administration.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-245" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>The Administration may:</text> <level label="i"> <text>borrow money and issue bonds or notes; and</text> </level> <level label="ii"> <text>use the proceeds or the earnings from the investment of the proceeds to provide money to:</text> <level label="1"> <text>make, purchase, or participate in making mortgage loans or other loans;</text> </level> <level label="2"> <text>purchase securities backed by mortgage loans or other loans;</text> </level> <level label="3"> <text>purchase local obligations;</text> </level> <level label="4"> <text>meet any development cost; or</text> </level> <level label="5"> <text>achieve any other purpose of the Administration.</text> </level> </level> </level> <level label="2"> <text>Bonds or notes may be issued only if:</text> <level label="i"> <text>the Director, or a person that the Secretary designates, determines that the issuance is necessary to achieve one or more purposes of the Administration; and</text> </level> <level label="ii"> <text>the Secretary approves the determination.</text> </level> </level> <level label="3"> <text>Without any other proceeding, action, or approval, the determination is effective when approved by the Secretary and is conclusive.</text> </level> </level> <level label="b"> <text>For bonds or notes of any issue, the Administration has absolute discretion to determine:</text> <level label="1"> <text>the date, amount, and manner of issue, including private sale;</text> </level> <level label="2"> <text>the date of maturity, which:</text> <level label="i"> <text>for a bond, may not be more than 50 years after the bond is issued; and</text> </level> <level label="ii"> <text>for a note, including renewals, may not be more than 5 years after the note is originally issued;</text> </level> </level> <level label="3"> <text>the price to be paid, whether above, at, or below par, the interest rate to be paid, and the dates of payment;</text> </level> <level label="4"> <text>the form, denomination, and manner of execution, which may be by facsimile;</text> </level> <level label="5"> <text>the place of payment, which may be any bank or trust company in or out of the State;</text> </level> <level label="6"> <text>whether they are redeemable before maturity and, if so, the terms, conditions, and prices of the redemption; and</text> </level> <level label="7"> <text>any other matter relating to the form, terms, conditions, security, issuance, sale, delivery, replacement, and indemnification in connection with replacement or payment.</text> </level> </level> <level label="c"> <text>A bond or note issued under this section is a negotiable instrument under State law notwithstanding any other provision of the Code or any recital in the bond or note.</text> </level> <level label="d"> <text>The manual or facsimile signature of an officer or employee of the Administration that appears on a bond, note, or coupon is valid even if the individual leaves office or employment before delivery of the bond, note, or coupon.</text> </level> <level label="e"> <text>The Administration may:</text> <level label="1"> <text>issue its bonds or notes in coupon or registered form or both; and</text> </level> <level label="2"> <text>provide for:</text> <level label="i"> <text>registration of coupon bonds or notes as to principal only or as to both principal and interest;</text> </level> <level label="ii"> <text>reconversion into coupon form of bonds or notes registered as to both principal and interest; and</text> </level> <level label="iii"> <text>interchange of coupon and registered bonds or notes.</text> </level> </level> </level> <level label="f"> <text>A bond or note issued under this section is exempt from §§ 8-206, 8-208, and 8-213 through 8-221 of the State Finance and Procurement Article.</text> </level> <level label="g"> <text>The Administration may issue a bond or note without:</text> <level label="1"> <text>the consent of another governmental unit of the State; or</text> </level> <level label="2"> <text>a proceeding, or the occurrence of a condition, other than those that this section expressly requires.</text> </level> </level> <level label="h"> <text>The Secretary and any other person executing a bond or note under this section are not personally liable or accountable because the bond or note is issued.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-246" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>By written determination, the Administration may provide for the issuance of notes to renew its notes, and bonds to pay its notes or to fund or refund its bonds, whether or not the bonds to be refunded have matured, including the payment of any redemption premium and any interest accrued or to accrue on the notes or bonds to be renewed, paid, or refunded.</text> </level> <level label="b"> <text>The issuance and incidents of renewal notes and refunding bonds are governed by applicable provisions of this part.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-247" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>Bonds or notes that the Administration issues may be secured by a trust agreement between the Administration and a trustee that is in or out of the State.</text> </level> <level label="2"> <text>A trustee shall be a trust company or a bank with trust powers.</text> </level> </level> <level label="b"> <text>A trust agreement or a determination authorizing the issuance of bonds or notes may contain:</text> <level label="1"> <text>subject to then–existing agreements with bondholders or noteholders, provisions to secure payment of bonds or notes by pledging or assigning:</text> <level label="i"> <text>any of the revenues of the Administration;</text> </level> <level label="ii"> <text>a mortgage that the Administration holds, a loan that the Administration has made, or security for the mortgage or loan;</text> </level> <level label="iii"> <text>the proceeds of a bond or note of the Administration; or</text> </level> <level label="iv"> <text>any combination of these and other assets of the Administration;</text> </level> </level> <level label="2"> <text>provisions to protect and enforce rights and remedies of bondholders or noteholders, and covenants stating the duties of or restrictions on the Administration;</text> </level> <level label="3"> <text>provisions restricting the rights of bondholders or noteholders;</text> </level> <level label="4"> <text>provisions that appoint one or more trust companies or banks with trust powers to act as depositaries of the proceeds of bonds or notes or of any revenues or money of the Administration, with any indemnifying bonds or securities required by the Administration allowed to be given or pledged by any depositary bank or trust company incorporated in the State;</text> </level> <level label="5"> <text>provisions on the custody, safeguarding, and application of money of the Administration;</text> </level> <level label="6"> <text>provisions on investments of money of the Administration as the Administration provides, notwithstanding §§ 17–101 and 17–102 of the Local Government Article and §§ 6–202, 6–205, 6–206, 6–209, and 6–210 of the State Finance and Procurement Article;</text> </level> <level label="7"> <text>provisions that establish and control all aspects of reserves, including debt service reserves;</text> </level> <level label="8"> <text>provisions for funding or refunding bonds or notes, including redemption premiums and interest; and</text> </level> <level label="9"> <text>any other provisions that are reasonable and proper for the security of bondholders or noteholders.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-248" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <level label="1"> <text>The interest rate or rates on and the terms of any loans and the revenues from the terms of any other assets that are financed from the proceeds of bonds or notes of the Administration, any fees that the Administration charges, and any other available revenues shall be at least sufficient to ensure repayment in full of the principal of and interest on the bonds or notes as and when due.</text> </level> <level label="2"> <text>Any pledge that the Administration makes is valid and binding from the time the pledge is made.</text> </level> </level> <level label="b"> <text>The lien of the pledge:</text> <level label="1"> <text>immediately attaches, without any physical delivery or further act, to revenues or property so pledged and later received by the Administration; and</text> </level> <level label="2"> <text>is valid and binding against each person having a claim against the Administration whether or not:</text> <level label="i"> <text>the person has notice of the lien of the pledge; or</text> </level> <level label="ii"> <text>the determination or any other instrument has been recorded or filed.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-249" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>Subject to agreements with noteholders or bondholders, the Administration may purchase its notes or bonds with any money available for the purchase.</text> </level> <level label="b"> <text>The purchase price may not exceed:</text> <level label="1"> <text>the redemption price at the time of the purchase, plus accrued interest to the next interest payment date, if the note or bond is redeemable, at the time of the purchase; or</text> </level> <level label="2"> <text>the redemption price on the first date after the purchase on which the note or bond becomes redeemable, plus accrued interest to that date, if the note or bond is not redeemable at the time of the purchase.</text> </level> </level> <level label="c"> <text>When the Administration purchases its note or bond, the note or bond shall be canceled.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-250" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A bond or note issued by the Administration under this part is a legal and proper investment for:</text> <level label="1"> <text>a public officer, a political subdivision, or a governmental unit;</text> </level> <level label="2"> <text>a bank, trust company, savings and loan association, investment company, or other person doing a banking business;</text> </level> <level label="3"> <text>an insurance company, insurance association, or other person doing an insurance business;</text> </level> <level label="4"> <text>a personal representative, guardian, trustee, or other fiduciary; or</text> </level> <level label="5"> <text>any other person.</text> </level> </level> <level label="b"> <text>For any purpose for which the deposit of a bond or other obligation of the State is authorized by law, a bond issued by the Administration under this part is a security that may legally and properly be deposited with and received by a public officer, a political subdivision, or a governmental unit.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-251" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A bond or note issued under this part:</text> <level label="1"> <text>is not a debt of and does not pledge the faith, credit, or taxing power of the State, the Administration, or a political subdivision; but</text> </level> <level label="2"> <text>is payable only from the revenues and property provided for in this subtitle.</text> </level> </level> <level label="b"> <text>Each bond or note shall state on its face the provisions of subsection (a) of this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-252" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>The following are exempt at all times from taxation of every kind and nature whatsoever by the State, a political subdivision, or a governmental unit of any kind:</text> <level label="1"> <text>a bond or note that the Administration issues under this part;</text> </level> <level label="2"> <text>the transfer of, interest payable on, or income derived from the bond or note; and</text> </level> <level label="3"> <text>profit realized by the sale or exchange of the bond or note.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-253" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <text>To improve the management of debt issued under the provisions of this part or to reduce the cost of servicing the debt, the Administration may enter into interest rate exchange agreements or contracts providing for payments based on levels of or changes in interest rates.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-255" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Administration by an agreement relating to a loan.</text> </level> <level label="b"> <text>A person applying for a loan may not knowingly make or cause to be made a false statement or report to influence the action of the Administration on a loan application or to influence an action of the Administration affecting a loan already made.</text> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-301" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Eligible homebuyer” means an individual who meets the qualifications under § 4-305 of this subtitle.</text> </level> <level label="c"> <text>“Fund” means the Homeownership Programs Fund.</text> </level> <level label="d"> <level label="1"> <text>“Homebuyer education” means instruction in preparing for homeownership, shopping for a home, getting a mortgage loan, loan closing, and life as a homeowner.</text> </level> <level label="2"> <text>“Homebuyer education” includes housing counseling.</text> </level> </level> <level label="e"> <text>“Program” means the Down Payment and Settlement Expense Loan Program.</text> </level> <level label="f"> <text>“Program loan” means a loan that the Department makes under this subtitle.</text> </level> <level label="g"> <level label="1"> <text>“Settlement expenses” means money that must be paid at the time of the purchase of real estate.</text> </level> <level label="2"> <text>“Settlement expenses” includes:</text> <level label="i"> <text>fees and premiums for title examination, title insurance, and similar expenses;</text> </level> <level label="ii"> <text>fees for preparing deeds, settlement statements, and other documents;</text> </level> <level label="iii"> <text>payments owed at settlement for property taxes and hazard insurance coverage;</text> </level> <level label="iv"> <text>escrows for future payments of taxes and hazard insurance;</text> </level> <level label="v"> <text>fees for notarizing deeds and other documents;</text> </level> <level label="vi"> <text>appraisal fees;</text> </level> <level label="vii"> <text>fees for credit reports;</text> </level> <level label="viii"> <text>transfer and recordation taxes and fees;</text> </level> <level label="ix"> <text>fees and premiums for mortgage insurance; and</text> </level> <level label="x"> <text>loan discount points and origination fees.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-302" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <text>There is a Down Payment and Settlement Expense Loan Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-303" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <text>The purpose of the Program is to provide financing for down payment and settlement expenses to enable eligible homebuyers to purchase homes.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-304" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <level label="a"> <text>The Department may:</text> <level label="1"> <text>charge an application fee or other fee to a Program loan applicant or lender;</text> </level> <level label="2"> <text>purchase or make commitments to purchase Program loans made by mortgage lenders;</text> </level> <level label="3"> <text>make contracts with third parties to make or service mortgage Program loans made for the Department;</text> </level> <level label="4"> <text>acquire any property that secures a Program loan under this subtitle by gift, purchase, foreclosure, or otherwise, and sell or otherwise dispose of the property or an interest in the property;</text> </level> <level label="5"> <text>delegate to a political subdivision any administrative or operational element of the Program not assigned to the Department under subsection (b) of this section;</text> </level> <level label="6"> <text>take any other action necessary or convenient to operate the Program; and</text> </level> <level label="7"> <text>require a political subdivision that administers its own down payment and settlement expense loan program to inform the Department of the political subdivision’s homebuyer education requirements.</text> </level> </level> <level label="b"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>attach to a Program loan the terms needed to carry out the Program;</text> </level> <level label="3"> <text>establish eligibility standards for Program loans, considering State, regional, and county housing costs, median incomes, and household sizes;</text> </level> <level label="4"> <text>establish guidelines to determine what parts of the down payment and settlement expenses may be covered by the Program loan; and</text> </level> <level label="5"> <text>adopt regulations to carry out the Program.</text> </level> </level> <level label="c"> <text>The sale or purchase of property that the Department acquires or disposes of under this section need not be approved or executed by the Board of Public Works or the Department of General Services.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-305" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <text>An individual qualifies as an eligible homebuyer if the individual:</text> <level label="1"> <text>will purchase and occupy a single-unit principal residence and has household income not exceeding upper limits that the Secretary establishes; or</text> </level> <level label="2"> <text>will purchase and occupy a residential building with no more than four units and agrees to rent all units other than the owner’s unit to households with income not exceeding upper limits that the Secretary establishes.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-306" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <text>The Program shall be operated with money in the Fund.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-307" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <level label="a"> <text>Proceeds of a Program loan shall be used only to make a down payment or pay settlement expenses for an eligible homebuyer to purchase a personal residence.</text> </level> <level label="b"> <text>A Program loan shall be secured by a mortgage lien that:</text> <level label="1"> <text>may be subordinate to other mortgage liens; and</text> </level> <level label="2"> <text>may include terms, including deferred payment of principal and interest, that the Department considers necessary to make housing purchases affordable to eligible homebuyers.</text> </level> </level> <level label="c"> <text>In reviewing an application for a Program loan, the Department shall:</text> <level label="1"> <text>consider the eligible homebuyer’s financial resources, including savings available to make a down payment or pay settlement expenses, in relation to:</text> <level label="i"> <text>the purchase price of the home; and</text> </level> <level label="ii"> <text>the down payment requirements of the lender; and</text> </level> </level> <level label="2"> <text>give high priority to eligible homebuyers of low income within the income limits established under § 4-304(b)(3) of this subtitle.</text> </level> </level> <level label="d"> <text>Notwithstanding any other law, the Department may require that Program loans become due and payable on the later sale or transfer of the property, but the Department may allow an eligible homebuyer who purchases the property to assume the Program loan.</text> </level> <level label="e"> <text>If a borrower defaults, the Department may modify the interest rate, the time or amount of payment, or any other term of a Program loan to facilitate repayment of the Program loan and to achieve the purpose of the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-308" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <level label="a"> <text>Subject to subsection (b) of this section, a recipient of a Program loan shall complete homebuyer education that meets the requirements of the Department.</text> </level> <level label="b"> <text>The Department’s homebuyer education requirements shall:</text> <level label="1"> <text>allow a Program loan recipient to use the online homebuyer education for a HUD–approved product and contact a HUD–approved counseling agency to receive a certificate; and</text> </level> <level label="2"> <text>enable one political subdivision’s certificate to be used in another political subdivision.</text> </level> </level> <level label="c"> <text>This subtitle does not alter or preempt the authority of a political subdivision to establish homebuyer education or counseling requirements for a down payment assistance program operated by the political subdivision.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-309" title_number="4" title_name="Division of Development Finance" subtitle_number="3" subtitle_name="Down Payment and Settlement Expense Loan Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department under an agreement relating to a Program loan.</text> </level> <level label="2"> <text>A loan applicant may not knowingly make or cause to be made any false statement or report to influence an action of the Department on a Program loan application or a Program loan already made.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-401" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Rental Housing Fund established under § 4–504 of this title.</text> </level> <level label="c"> <text>“Household of limited income” means one or more individuals who occupy the same residential dwelling unit and whose total household income does not exceed the upper income limits established by the Secretary for the Program under § 4–404 of this subtitle.</text> </level> <level label="d"> <text>“Office or other commercial space conversion” means the conversion to rental housing of a building that:</text> <level label="1"> <text>is in a sustainable community as defined in § 6–301 of this article;</text> </level> <level label="2"> <text>was built more than 30 years before an application is submitted to the Department to finance the conversion;</text> </level> <level label="3"> <text>consists of at least two floors at or above ground level; and</text> </level> <level label="4"> <text>was last used as office or other commercial space.</text> </level> </level> <level label="e"> <text>“Program” means the Rental Housing Program.</text> </level> <level label="f"> <text>“Rental housing project” means a project eligible for financial assistance under § 4–407 of this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-402" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <text>There is a Rental Housing Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-403" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <text>The purposes of the Program are to:</text> <level label="1"> <text>stimulate the production and preservation of rental housing;</text> </level> <level label="2"> <text>increase and improve the supply of decent, safe, and sanitary rental housing at costs that are affordable to households of limited income;</text> </level> <level label="3"> <text>use available resources efficiently to serve the households that are in need of quality affordable housing opportunities, including families, the elderly, and persons with disabilities or special needs;</text> </level> <level label="4"> <text>support economic growth and activity by financing, in whole or in part, the construction or substantial rehabilitation of rental housing projects; and</text> </level> <level label="5"> <text>revitalize sustainable communities, as defined in § 6–301 of this article, through office or other commercial space conversion.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-404" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>adopt policies to ensure that rental housing is made available to households of limited income;</text> </level> <level label="3"> <text>develop procedures to ensure that the projects receiving financial assistance from the Program are in compliance with applicable occupancy restrictions;</text> </level> <level label="4"> <text>use federal and State programs to help carry out the Program; and</text> </level> <level label="5"> <text>encourage the assistance or participation of local political subdivisions.</text> </level> </level> <level label="b"> <text>The Secretary shall set income guidelines by considering:</text> <level label="1"> <text>the median income for the area;</text> </level> <level label="2"> <text>the minimum income needed to afford available standard rental units in the area;</text> </level> <level label="3"> <text>federal income guidelines, including the requirements of the Federal Low–Income Housing Tax Credit Program; and</text> </level> <level label="4"> <text>any other relevant factor.</text> </level> </level> <level label="c"> <text>In administering the Program under this subtitle, the Department may act either directly or through the Administration.</text> </level> <level label="d"> <text>The Department shall provide written notice and a reasonable opportunity to comment to the chief executive officer or the equivalent officer and the head or president of the legislative body of the political subdivision in which a proposed project is located.</text> </level> <level label="e"> <text>If the proposed project is located in a municipal corporation, the notice required under subsection (d) of this section shall be sent to the chief executive officer and head or president of the municipal corporation and not to the county.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-405" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <text>To achieve the purposes of the Program, the Department shall, from time to time, ask the State to increase or replace amounts deposited with the State Treasurer in the Fund.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-406" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>The Department shall adopt regulations to carry out the Program.</text> </level> <level label="b"> <text>The regulations shall provide for:</text> <level label="1"> <text>applications for money from the Fund;</text> </level> <level label="2"> <text>standards of eligibility, terms, and fees;</text> </level> <level label="3"> <text>charges that shall be imposed on Program loans; and</text> </level> <level label="4"> <text>the recapture of money of the Fund from a borrower that does not use the money in a timely manner.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-407" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>A project qualifies as a rental housing project under this subtitle if:</text> <level label="1"> <text>its purpose is to acquire, construct, or rehabilitate real property or all or part of a building or improvements that will be occupied by households of limited income as provided in this subsection; and</text> </level> <level label="2"> <text>a portion of the rental units in the project are set aside for households of lower income for the greater of:</text> <level label="i"> <text>15 years; or</text> </level> <level label="ii"> <text>the number of years required by federal law.</text> </level> </level> </level> <level label="b"> <text>The minimum number of rental units set aside under subsection (a)(2) of this section shall be the greater of:</text> <level label="1"> <text>the number that bears the same ratio to the whole number of rental units in the project as the amount of the Program loan bears to the whole financing of the undertaking; or</text> </level> <level label="2"> <text>the number of rental units chosen by the sponsor to satisfy federal occupancy requirements, if the project receives federal low–income housing tax credits or is financed in part with government–issued, federally tax–exempt revenue bonds.</text> </level> </level> <level label="c"> <text>Rental units restricted for occupancy to meet other federal, State, or local occupancy requirements may be counted toward the minimum number required under this section.</text> </level> <level label="d"> <text>A rental unit that continues to meet applicable federal occupancy restrictions under subsection (b)(2) of this section shall be deemed to continue to meet the applicable restrictions for purposes of this subtitle.</text> </level> <level label="e"> <text>A project qualifies as a rental housing project under this subtitle and is not subject to the income restrictions specified in this section if it will:</text> <level label="1"> <text>effect an office or other commercial space conversion into market rate rental housing; and</text> </level> <level label="2"> <text>provide substantial economic development to a sustainable community as defined in § 6–301 of this article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-408" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>The Department shall review applications for loans submitted by private or nonprofit sponsors, political subdivisions, or local housing authorities established under Division II of this article on behalf of sponsors of proposed rental housing projects.</text> </level> <level label="b"> <text>In reviewing an application for a Program loan under this subtitle, the Department shall consider:</text> <level label="1"> <text>the extent to which households of limited income will be assisted by the proposed project;</text> </level> <level label="2"> <text>the number and percentage of households of limited income currently living in the community where the project is proposed;</text> </level> <level label="3"> <text>the quantity, condition, and affordability of residential property in the community where the project is proposed;</text> </level> <level label="4"> <text>the economic feasibility of the proposed project;</text> </level> <level label="5"> <text>the degree of local government incentive and support provided to the proposed project, including contribution of land, abatement of taxes or fees, direct or indirect rental subsidies, and grants; and</text> </level> <level label="6"> <text>any other relevant factors.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-409" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>Money in the Fund may be used to make loans to an approved applicant to:</text> <level label="1"> <text>acquire, construct, or rehabilitate a rental housing project;</text> </level> <level label="2"> <text>convert an existing building or buildings to a rental housing project; or</text> </level> <level label="3"> <text>provide operating assistance to reduce the operating costs of a project by depositing the proceeds of the Program loan in an interest bearing account that is under the control of the Department and is used to pay the operating costs, including the principal and interest when due, on any prior mortgage loan securing the project.</text> </level> </level> <level label="b"> <text>A Program loan may:</text> <level label="1"> <text>be secured by a mortgage lien;</text> </level> <level label="2"> <text>be subordinate to other financing;</text> </level> <level label="3"> <text>have an interest rate as low as zero percent;</text> </level> <level label="4"> <text>be payable out of surplus cash;</text> </level> <level label="5"> <text>be a deferred payment loan;</text> </level> <level label="6"> <text>provide for an equity participation by the Department or contingent interest payable out of surplus cash or net equity; or</text> </level> <level label="7"> <text>have any other terms the Department may require.</text> </level> </level> <level label="c"> <text>To facilitate repayment of the Program loan and achieve the purposes of the Program, the Department may modify:</text> <level label="1"> <text>the interest rate;</text> </level> <level label="2"> <text>the time or amount of payment; or</text> </level> <level label="3"> <text>any other term of the Program loan.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-410" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <text>If a Program loan is secured by a mortgage, the Department may:</text> <level label="1"> <text>enforce the mortgage;</text> </level> <level label="2"> <text>foreclose on the mortgage and take title to the mortgaged property or take deed in lieu of foreclosure;</text> </level> <level label="3"> <text>convey title to a purchaser;</text> </level> <level label="4"> <text>obtain and enforce a deficiency judgment;</text> </level> <level label="5"> <text>allow assumption of the mortgage; and</text> </level> <level label="6"> <text>contract with a private mortgage servicer to perform on behalf of the Department any functions a servicer ordinarily performs.</text> </level> </level> <level label="b"> <text>Without approval or execution by the Board of Public Works, the Department may:</text> <level label="1"> <text>assign a mortgage for value; or</text> </level> <level label="2"> <text>convey property after acquisition.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-411" title_number="4" title_name="Division of Development Finance" subtitle_number="4" subtitle_name="Rental Housing Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department under an agreement relating to a Program loan.</text> </level> <level label="2"> <text>A loan applicant may not knowingly make or cause a false statement or report to be made to influence the action of the Department on a Program loan application or to influence action of the Department affecting a Program loan already made.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-501" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <level label="1"> <text>Each fund established under this subtitle is a continuing, nonlapsing special fund that is not subject to § 7-302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold and the Comptroller shall account for each fund established under this subtitle.</text> </level> </level> <level label="b"> <text>Money in a fund established under this subtitle shall be invested in the same way as other State money.</text> </level> <level label="c"> <level label="1"> <text>In the State budget, the State may appropriate to the Rental Housing Programs Fund and the Special Loan Programs Fund all or part of the money received as repayment of principal or payment of interest on a loan made by the Maryland Housing Rehabilitation Program.</text> </level> <level label="2"> <text>The appropriation may be increased by budget amendment.</text> </level> <level label="3"> <text>The amount of repayments appropriated to make loans under the Maryland Housing Rehabilitation Program may not exceed $12,000,000 annually.</text> </level> <level label="4"> <text>The State may not appropriate repayment of principal and payment of interest to the Maryland Housing Rehabilitation Program to the extent that loans expected to be made with the money appropriated would cause the principal amount of loans outstanding to exceed $100,000,000.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-501.1" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>The Department shall attempt to use to the greatest extent feasible minority business enterprises to provide brokerage and investment management services to the Department for the funds established under this subtitle consistent with minority business purchasing standards applicable to units of State government under the State Finance and Procurement Article and consistent with the fiduciary duties of the Department.</text> </level> <level label="b"> <text>For purposes of this section, brokerage and investment management services shall include services relating to all allocated asset classes.</text> </level> <level label="c"> <level label="1"> <text>To assist the Department in achieving the goal described under subsection (a) of this section, the Department shall undertake measures to remove any barriers that limit full participation by minority business enterprises in brokerage and investment management services opportunities afforded by the Department for the funds established under this subtitle.</text> </level> <level label="2"> <text>The measures undertaken by the Department shall include the use of a wide variety of media, including the Department’s website, to provide notice to a broad and varied range of potential providers about the brokerage and investment management services opportunities afforded by the Department for the funds established under this subtitle.</text> </level> </level> <level label="d"> <text>In conjunction with the Governor’s Office of Small, Minority, and Women Business Affairs, the Department shall develop guidelines to assist it in identifying and evaluating qualified minority business enterprises in order to help the Department achieve the objective for greater use of minority business enterprises for brokerage and investment management services for the funds established under this subtitle.</text> </level> <level label="e"> <text>On or before September 1 each year, the Department shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government Article, the General Assembly on:</text> <level label="1"> <text>the identity of the minority business enterprise brokerage and investment management services firms used by the Department in the immediately preceding fiscal year;</text> </level> <level label="2"> <text>the percentage and dollar value of the assets in the funds established under this subtitle that are under the investment control of minority business enterprise brokerage and investment management services firms in each allocated asset class; and</text> </level> <level label="3"> <text>the measures the Department undertook in the immediately preceding fiscal year in accordance with subsection (c)(2) of this section.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-502" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Homeownership Programs Fund.</text> </level> <level label="b"> <text>There is a Homeownership Programs Fund.</text> </level> <level label="c"> <text>As provided in the State budget, the Department shall use the Fund to:</text> <level label="1"> <text>pay expenses of the Maryland Home Financing Program, including reserves for anticipated future losses directly related to the Maryland Home Financing Program;</text> </level> <level label="2"> <text>make loans under the Maryland Home Financing Program; and</text> </level> <level label="3"> <text>make loans and pay expenses of the Down Payment and Settlement Expense Loan Program.</text> </level> </level> <level label="d"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated by the State for homeownership programs, including the Maryland Home Financing Program under Subtitle 8 of this title and the Down Payment and Settlement Expense Loan Program under Subtitle 3 of this title;</text> </level> <level label="2"> <text>money from the sale of the State’s general obligation bonds;</text> </level> <level label="3"> <text>repayments or prepayments of principal and payments of interest on loans made under the Maryland Home Financing Program, the Homeowners’ Emergency Mortgage Assistance Program, the Reverse Equity Program, or the Down Payment and Settlement Expense Loan Program, formerly the Settlement Expense Loan Program;</text> </level> <level label="4"> <text>money transferred to the Fund in accordance with §§ 4–503(d), 4–504(f), and 4–505(h) of this subtitle and §§ 3–203(i) and 6–310(g) of this article; and</text> </level> <level label="5"> <text>investment earnings of the Fund.</text> </level> </level> <level label="e"> <text>Subject to § 7–209 of the State Finance and Procurement Article and except as otherwise provided in the State budget, after the first 8 months of a fiscal year, the Department may transfer unencumbered money in the Fund to any other fund established under this title.</text> </level> <level label="f"> <text>Money received as repayment of principal or payment of interest on a loan made under the Maryland Home Financing Program that is not appropriated in the State budget may be credited to the Annuity Bond Fund and used to pay the principal of or interest on money borrowed by the State and appropriated to the Maryland Home Financing Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-503" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Partnership Rental Housing Fund.</text> </level> <level label="b"> <text>There is a Partnership Rental Housing Fund.</text> </level> <level label="c"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated by the State to the Partnership Rental Housing Program;</text> </level> <level label="2"> <text>money made available to the Partnership Rental Housing Program from the sale of general obligation or other bonds including the proceeds of the sale of bonds authorized by Chapter 625 of the Acts of the General Assembly of 1988 and Chapter 97 of the Acts of the General Assembly of 1989;</text> </level> <level label="3"> <text>investment earnings of the Fund; and</text> </level> <level label="4"> <text>repayment of loans from the Fund except to the extent any State or federal law governing the proceeds of bonds prohibits the recycling of money.</text> </level> </level> <level label="d"> <text>Subject to the approval of the Legislative Policy Committee and § 7–209 of the State Finance and Procurement Article, after the first 8 months of a fiscal year, the Department may transfer unencumbered money in the Fund among the Partnership Rental Housing Fund, the Rental Housing Programs Fund, the Homeownership Programs Fund, and the Special Loan Programs Fund, if the Secretary determines that demand is:</text> <level label="1"> <text>less than anticipated for the fund from which money is being transferred; and</text> </level> <level label="2"> <text>greater than anticipated for the fund to which money is being transferred.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-504" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Rental Housing Fund.</text> </level> <level label="b"> <text>There is a Rental Housing Fund.</text> </level> <level label="c"> <text>The Department shall use the Fund to operate, make loans, and pay expenses of the Rental Housing Program, including reserves for anticipated future losses directly related to the Rental Housing Program, as provided in the State budget.</text> </level> <level label="d"> <text>The Department shall administer the Fund either directly or through the Administration.</text> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated by the State for the Rental Housing Program under § 4–402 of this title;</text> </level> <level label="2"> <text>repayments and prepayments of loans made under the Rental Housing Program and from loan programs under this title that have been repealed;</text> </level> <level label="3"> <text>money appropriated under § 4–501(c) of this subtitle;</text> </level> <level label="4"> <text>money transferred to the Fund in accordance with §§ 4–502(e), 4–503(d), and 4–505(h) of this subtitle and § 3–203(i) of this article;</text> </level> <level label="5"> <text>funds received by the Department or the Administration from the federal government or other public or private sources;</text> </level> <level label="6"> <text>investment earnings of the Fund; and</text> </level> <level label="7"> <text>revenue distributed to the Fund under § 2–605.2 of the Tax – General Article.</text> </level> </level> <level label="f"> <level label="1"> <text>When the Department issues a binding commitment to make a loan, the Department shall withdraw from the Fund an amount equal to the commitment.</text> </level> <level label="2"> <text>Subject to § 7–209 of the State Finance and Procurement Article and except as otherwise provided in the State budget, after the first 8 months of a fiscal year the Department may transfer unencumbered money in the Fund to any other fund established under this title.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-505" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Special Loan Programs Fund.</text> </level> <level label="b"> <text>There is a Special Loan Programs Fund.</text> </level> <level label="c"> <text>As provided in the State budget and subject to subsection (d) of this section, the Department shall use the Fund to:</text> <level label="1"> <text>operate, pay expenses of, and make loans under the Group Home Financing Program;</text> </level> <level label="2"> <text>operate, pay expenses of, and make grants and loans under the Lead Hazard Reduction Grant Program and the Lead Hazard Reduction Loan Program;</text> </level> <level label="3"> <text>operate, pay expenses of, and make loans and grants under the Maryland Housing Rehabilitation Program, including reserves for anticipated future losses directly related to the Maryland Housing Rehabilitation Program;</text> </level> <level label="4"> <text>make loans and grants under the Regular Rehabilitation Program; and</text> </level> <level label="5"> <text>make loans and grants under the special loan programs.</text> </level> </level> <level label="d"> <text>During the first 6 months of each fiscal year the Department shall reserve at least 25% of the appropriation for the Fund to make loans to rehabilitate buildings with four or fewer dwelling units.</text> </level> <level label="e"> <level label="1"> <text>The Department annually shall allocate money in the Fund to the Lead Hazard Reduction Grant Program and the Lead Hazard Reduction Loan Program.</text> </level> <level label="2"> <text>If the number of eligible applications under the Lead Hazard Reduction Grant Program, or the Lead Hazard Reduction Loan Program is insufficient to commit all money allocated to that Program within 6 months after the allocation, the Department may reallocate the uncommitted money to other programs of the Fund.</text> </level> </level> <level label="f"> <text>The Fund shall be administered in accordance with this section.</text> </level> <level label="g"> <level label="1"> <text>The Fund consists of:</text> <level label="i"> <text>money appropriated by the State for special loan programs, including:</text> <level label="1"> <text>the Special Rehabilitation Program under § 4–906(b) of this title;</text> </level> <level label="2"> <text>the Regular Rehabilitation Program under § 4–906(b) of this title;</text> </level> <level label="3"> <text>the Group Home Financing Program under § 4–602 of this title;</text> </level> <level label="4"> <text>the Lead Hazard Reduction Grant Program under § 4–708 of this title and the Lead Hazard Reduction Loan Program under § 4–709 of this title; and</text> </level> <level label="5"> <text>the Accessible Homes for Senior Homeowners Grant Program under § 4–931 of this title;</text> </level> </level> <level label="ii"> <text>repayments of principal and payments of interest on loans made under these programs;</text> </level> <level label="iii"> <text>repayments of grants from the Fund;</text> </level> <level label="iv"> <text>repayments of principal and payments of interest on loans from the Fund;</text> </level> <level label="v"> <text>money transferred to the Fund in accordance with §§ 4–502(e), 4–503(d), and 4–504(f) of this subtitle and §§ 3–203(i) and 6–310(g) of this article; and</text> </level> <level label="vi"> <text>investment earnings of the Fund.</text> </level> </level> <level label="2"> <text>The State, under § 4–501(c) of this subtitle, may appropriate to the Fund money received as repayment of principal or payment of interest on a loan made by the Maryland Housing Rehabilitation Program.</text> </level> </level> <level label="h"> <text>Subject to § 7–209 of the State Finance and Procurement Article and except as otherwise provided in the State budget, after the first 8 months of a fiscal year, the Department may transfer unencumbered money in the Fund to any other fund established under this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-506" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Workforce Housing Fund.</text> </level> <level label="b"> <text>There is a Workforce Housing Fund.</text> </level> <level label="c"> <text>As provided in the State budget, the Department shall use the Fund to operate and provide funds under the Workforce Housing Grant Program.</text> </level> <level label="d"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated by the State;</text> </level> <level label="2"> <text>repayments of principal and payments of interest on loans made under the Workforce Housing Grant Program;</text> </level> <level label="3"> <text>amounts paid in connection with transfers of homeownership workforce housing units;</text> </level> <level label="4"> <text>money transferred to the Fund in accordance with this subtitle; and</text> </level> <level label="5"> <text>investment earnings of the Fund.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-507" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Housing Counseling and Foreclosure Mediation Fund.</text> </level> <level label="b"> <text>There is a Housing Counseling and Foreclosure Mediation Fund.</text> </level> <level label="c"> <text>The purposes of the Fund are to:</text> <level label="1"> <text>support nonprofit and government housing counselors and other nonprofit entities with providing:</text> <level label="i"> <text>legal assistance to homeowners or occupants who are trying to avoid foreclosure or manage foreclosure proceedings; and</text> </level> <level label="ii"> <text>homebuyer education, housing advice, or financial counseling for homeowners, prospective homeowners, and low– and moderate–income households;</text> </level> </level> <level label="2"> <text>support the establishment and operation of nonprofit housing counseling entities;</text> </level> <level label="3"> <text>support efforts by the Department and the Maryland Department of Labor to:</text> <level label="i"> <text>contact and provide advice and assistance to homeowners or occupants facing financial difficulty or foreclosure; and</text> </level> <level label="ii"> <text>provide advice and assistance to prospective homeowners; and</text> </level> </level> <level label="4"> <text>assist in funding the costs of foreclosure mediations provided by the Office of Administrative Hearings under § 7–105.1 of the Real Property Article.</text> </level> </level> <level label="d"> <text>The Department shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under § 7–105.1 of the Real Property Article;</text> </level> <level label="2"> <text>investment earnings of the Fund;</text> </level> <level label="3"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <text>The Fund may be used only for the purposes described in subsection (c) of this section.</text> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any investment earnings of the Fund shall be paid into the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-508" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Strategic Demolition and Smart Growth Impact Fund.</text> </level> <level label="b"> <text>There is a Strategic Demolition and Smart Growth Impact Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide grants and loans to assist in predevelopment activities, including interior and exterior demolition, land assembly, architecture and engineering, site development, and credit enhancement for revitalization projects in designated areas of the State.</text> </level> <level label="d"> <text>The Department shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>repayments of loans made from the Fund;</text> </level> <level label="3"> <text>interest earnings of the Fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The Fund may be used only to provide grants and loans to government agencies and community development organizations for interior and exterior demolition, land assembly, architecture and engineering, site development, and credit enhancement for revitalization projects in an area designated as:</text> <level label="i"> <text>a Sustainable Community; or</text> </level> <level label="ii"> <text>a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.</text> </level> </level> <level label="2"> <level label="i"> <text>For fiscal years 2017 through 2019, to be eligible for a grant or loan from the Fund, a government agency or community development organization shall provide evidence of a matching fund that is equal to $1 for every $4 in State funding that the agency or organization is applying for from the Fund.</text> </level> <level label="ii"> <text>The matching fund required under subparagraph (i) of this paragraph may include:</text> <level label="1"> <text>money from the federal government, local government, or any other public or private source;</text> </level> <level label="2"> <text>real property;</text> </level> <level label="3"> <text>in–kind contributions; and</text> </level> <level label="4"> <text>funds expended before the date the grant or loan is awarded.</text> </level> </level> </level> <level label="3"> <text>For fiscal year 2020 and each fiscal year thereafter, to be eligible for a grant or loan from the Fund, a government agency or community development organization is not required to provide evidence of a matching fund.</text> </level> <level label="4"> <text>The Department shall award grants and loans from the Fund on a competitive basis.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="j"> <level label="1"> <text>For fiscal year 2018, the Governor shall include in the annual budget bill or capital budget bill an appropriation of $25,625,000 from general funds or the proceeds from the sale of State general obligation bonds to the Fund, which shall be allocated as follows:</text> <level label="i"> <text>$22,125,000 for projects in Baltimore City; and</text> </level> <level label="ii"> <text>$3,500,000 for projects throughout the State.</text> </level> </level> <level label="2"> <text>For fiscal year 2019, the Governor shall include in the annual budget bill or capital budget bill an appropriation of $28,500,000 from general funds or the proceeds from the sale of State general obligation bonds to the Fund, which shall be allocated as follows:</text> <level label="i"> <text>$25,000,000 for projects in Baltimore City; and</text> </level> <level label="ii"> <text>$3,500,000 for projects throughout the State.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-509" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Anchor institution” means:</text> <level label="i"> <text>an institution of higher education in the State, including departments, foundations, and other entities of the institution; or</text> </level> <level label="ii"> <text>a hospital institution in the State, including departments, foundations, and other entities of the institution, that:</text> <level label="1"> <text>has a group of at least five physicians who are organized as a medical staff for the institution;</text> </level> <level label="2"> <text>maintains facilities to provide, under the supervision of the medical staff, diagnostic and treatment services for two or more unrelated individuals; and</text> </level> <level label="3"> <text>admits or retains the individuals for overnight care.</text> </level> </level> </level> <level label="3"> <text>“Blighted area” means an area in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance.</text> </level> <level label="4"> <text>“Fund” means the Seed Community Development Anchor Institution Fund.</text> </level> <level label="5"> <text>“Sustainable community” means an area designated as a sustainable community under § 6–205 of this article.</text> </level> </level> <level label="b"> <text>There is a Seed Community Development Anchor Institution Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide grants and loans to anchor institutions for community development projects in sustainable communities and blighted areas of the State.</text> </level> <level label="d"> <text>The Department shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>interest earnings of the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The Fund may be used only to provide grants and loans to anchor institutions for community development projects in sustainable communities and blighted areas of the State.</text> </level> <level label="2"> <text>To be eligible for a grant or loan, an anchor institution shall provide evidence of matching funds.</text> </level> <level label="3"> <text>The Department shall award grants and loans from the Fund on a competitive basis.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="j"> <level label="1"> <text>For fiscal year 2019, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $4,000,000 to the Fund.</text> </level> <level label="2"> <text>For fiscal year 2020, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $5,000,000 for the Fund.</text> </level> <level label="3"> <level label="i"> <text>For fiscal year 2021, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $5,000,000 for the Fund.</text> </level> <level label="ii"> <text>For fiscal year 2022 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $10,000,000 for the Fund.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-511" future_version_removed="true" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Continuing the CORE Partnership Fund.</text> </level> <level label="b"> <text>There is a Continuing the CORE Partnership Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to assist the Department, in conjunction with the Maryland Stadium Authority, the West North Avenue Development Authority, and Baltimore City, in expeditiously removing blighted property within Baltimore City.</text> </level> <level label="d"> <text>The Secretary shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under subsection (j) of this section;</text> </level> <level label="2"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <text>The Fund may be used for:</text> <level label="1"> <text>the purpose outlined in subsection (c) of this section; and</text> </level> <level label="2"> <text>administrative expenses.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="j"> <level label="1"> <text>For fiscal year 2020, the Governor may include in the annual budget bill an appropriation of $30,000,000 to the Fund.</text> </level> <level label="2"> <text>For fiscal years 2021 through 2024, the Governor may include in the annual budget bill an appropriation of $25,000,000 to the Fund.</text> </level> <level label="3"> <text>For fiscal year 2026 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $50,000,000 to the Fund.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-512" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="5" subtitle_name="Funds"> <level label="a"> <text>In this section, “Fund” means the Housing Innovation Fund.</text> </level> <level label="b"> <text>There is a Housing Innovation Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide loans for local housing authorities, county governments, municipal corporations, and county boards of education to develop mixed–income, cross–subsidized housing, including educator workforce housing.</text> </level> <level label="d"> <text>The Department shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="2"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>Subject to paragraph (2) of this subsection and subsection (j) of this section, the Fund may be used only to provide low– or no–interest loans to local housing authorities, county governments, municipal corporations, or county boards of education partnering with housing developers through the Housing Innovation Pilot Program in accordance with Subtitle 30 of this title.</text> </level> <level label="2"> <text>The Fund may be used for projects where a county, municipal corporation, or county board of education, in conjunction with a local housing authority or a housing developer, acquires existing private sector housing.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="j"> <level label="1"> <level label="i"> <text>For fiscal year 2025, an allocation to the Fund shall be committed to projects before July 1, 2026, subject to applicants being afforded a reasonable period of time to complete the application.</text> </level> <level label="ii"> <text>For fiscal year 2026 and each fiscal year thereafter, an allocation to the Fund in a fiscal year shall be committed to projects before the end of that fiscal year, subject to applicants being afforded a reasonable period of time to complete the application.</text> </level> </level> <level label="2"> <text>If an allocation of funds to the Fund under paragraph (1) of this subsection has not been committed to projects before the end of the fiscal year when they were allocated, the funds shall be eligible for use in support of projects that apply to the Rental Housing Program established under Subtitle 4 of this title.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-601" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Group home” means a housing facility that offers:</text> <level label="i"> <text>supportive services or supervisory personnel to individuals with special housing needs who are not related to the group home sponsor; and</text> </level> <level label="ii"> <text>common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities.</text> </level> </level> <level label="2"> <text>“Group home” need not include all of the facilities listed in paragraph (1)(ii) of this subsection if it provides emergency and temporary housing for homeless individuals.</text> </level> </level> <level label="c"> <text>“Group home sponsor” means a person who qualifies for a Program loan under § 4-607 of this subtitle.</text> </level> <level label="d"> <text>“Person of lower income” means an individual or family whose income does not exceed the upper income limit that the Secretary sets.</text> </level> <level label="e"> <text>“Program” means the Group Home Financing Program.</text> </level> <level label="f"> <text>“Program loan” means a loan that the Department makes under this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-602" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>There is a Group Home Financing Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-603" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>The purpose of the Program is to provide loans to group home sponsors to finance or refinance the costs of acquiring, constructing, or modifying buildings as group homes for persons of lower income, elderly households, individuals with disabilities, and other residents of the State with special housing needs.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-604" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>The Department may establish:</text> <level label="1"> <text>eligibility standards for group home sponsors;</text> </level> <level label="2"> <text>Program loan fees and charges;</text> </level> <level label="3"> <text>maximum Program loans for group homes based on their size, use, and location; and</text> </level> <level label="4"> <text>a process for selecting group homes to be financed under the Program that promotes statewide distribution of money.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-605" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>adopt policies that encourage the establishment of group homes for persons of lower income throughout the State;</text> </level> <level label="3"> <text>attach to a purchase, sale, or lease of a group home or land for a group home the terms needed to carry out the Program;</text> </level> <level label="4"> <text>establish guidelines for monitoring the group homes to ensure that, aside from dwelling room for supervisory individuals and their families, group homes receiving financing under the Program are occupied in substantial part by persons of lower income; and</text> </level> <level label="5"> <text>establish guidelines to determine the ability of a group home sponsor to manage a group home, provide necessary services, and repay the Program loan.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-606" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>The Department shall adopt regulations to carry out the Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-607" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>To qualify for a Program loan, a group home sponsor shall own and operate a group home and be:</text> <level label="1"> <text>a nonprofit organization;</text> </level> <level label="2"> <text>an individual; or</text> </level> <level label="3"> <text>a limited partnership if:</text> <level label="i"> <level label="1"> <text>each general partner qualifies as a nonprofit organization; or</text> </level> <level label="2"> <text>each general partner is a wholly owned subsidiary of a nonprofit organization;</text> </level> </level> <level label="ii"> <text>the limited partnership is formed to undertake a group home project that is totally or partly eligible for a federal low income housing tax credit program or any other federal program or incentive; and</text> </level> <level label="iii"> <text>a nonprofit organization manages the project or receives the net cash flow from or the residual sale proceeds on sale of the group home.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-608" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>The Program shall be operated with money in the Special Loan Programs Fund under § 4-505 of this title.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-609" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>In reviewing an application for a Program loan, the Department shall consider:</text> <level label="1"> <text>the economic feasibility of the group home; and</text> </level> <level label="2"> <text>the ability of the group home sponsor to manage the group home, provide necessary services, and repay the Program loan.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-610" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <level label="a"> <level label="1"> <text>A Program loan shall be secured by a mortgage lien and may include the terms that the Department considers necessary to make the group home affordable to persons of lower income.</text> </level> <level label="2"> <text>In exceptional circumstances, the terms may include:</text> <level label="i"> <text>deferred payment of principal and interest; and</text> </level> <level label="ii"> <text>interest rates as low as 0%.</text> </level> </level> </level> <level label="b"> <text>Each loan shall require that all unpaid principal and accrued interest, including principal or interest that was deferred, be paid at the earliest of:</text> <level label="1"> <text>a stated date, which may be the maturity date of the Program loan;</text> </level> <level label="2"> <text>the date of the sale or other transfer of the group home or a controlling interest in the group home; and</text> </level> <level label="3"> <text>the date when the project ceases to be used as a group home.</text> </level> </level> <level label="c"> <level label="1"> <text>Each Program loan shall provide for:</text> <level label="i"> <text>a limit on the return on equity allowed to a group home sponsor;</text> </level> <level label="ii"> <text>equity participation between the Department and the group home sponsor; or</text> </level> <level label="iii"> <text>an amount of accrued and deferred interest that the Department finds can reasonably be expected to be paid from profit resulting from the sale of the group home.</text> </level> </level> <level label="2"> <text>The Department may forgive any accrued and deferred interest described in paragraph (1)(iii) of this subsection that exceeds the profit from the sale of the group home.</text> </level> <level label="3"> <text>The Department may allow the group home sponsor to earn a reasonable return before the group home sponsor pays accrued and deferred interest.</text> </level> </level> <level label="d"> <text>If a Program loan is in default or is at risk of being in default, the Department may modify the interest rate, the time or amount of payment, or any other term to facilitate repayment and achieve the purposes of the Program.</text> </level> <level label="e"> <text>A Program loan may finance:</text> <level label="1"> <text>the site acquisition, construction costs, and permanent mortgage for a group home;</text> </level> <level label="2"> <text>the purchase of an existing building to provide a group home;</text> </level> <level label="3"> <text>a modification to a building purchased with a Program loan, if the modification improves, repairs, renovates, or rehabilitates the building to:</text> <level label="i"> <text>make it suitable as a group home; or</text> </level> <level label="ii"> <text>eliminate housing, building, fire, safety, health, or other code violations;</text> </level> </level> <level label="4"> <text>the refinancing of an existing mortgage loan on a group home;</text> </level> <level label="5"> <text>closing costs associated with the construction, purchase, or refinance of a group home;</text> </level> <level label="6"> <text>engineering, legal, title, survey, or architectural fees associated with financing real property development; and</text> </level> <level label="7"> <text>other development costs that the Department considers reasonable.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-611" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <text>Subject to the approval and permitting procedures of the local zoning authority, a group home that houses four or more individuals may provide for nonresidential uses that:</text> <level label="1"> <text>are in a minor part of the building;</text> </level> <level label="2"> <text>conform with local zoning requirements; and</text> </level> <level label="3"> <text>although not directly related to the housing facility, offer goods or services for persons of lower income or other disadvantaged individuals.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-612" title_number="4" title_name="Division of Development Finance" subtitle_number="6" subtitle_name="Group Home Financing Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department under an agreement relating to a Program loan.</text> </level> <level label="2"> <text>A loan applicant may not knowingly make or cause to be made any false statement or report to influence the Department’s action on a Program loan application or a Program loan already made.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-701" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Child care center” has the meaning stated in § 9.5–401(c) of the Education Article.</text> </level> <level label="c"> <text>“Family of limited income” means a family that meets the qualifications under § 4–707 of this subtitle.</text> </level> <level label="d"> <text>“Fund” means the Special Loan Programs Fund under Subtitle 5 of this title.</text> </level> <level label="e"> <text>“Grant Program” means the Lead Hazard Reduction Grant Program.</text> </level> <level label="f"> <level label="1"> <text>“Lead hazard reduction activity” means measures to reduce or eliminate lead–based paint hazards in accordance with State or federal standards.</text> </level> <level label="2"> <text>“Lead hazard reduction activity” includes:</text> <level label="i"> <text>removing lead–based paint and lead–contaminated dust, containing or encapsulating lead–based paint, and replacing or removing surfaces or fixtures painted with lead–based paint;</text> </level> <level label="ii"> <text>meeting the risk reduction standards under § 6–815 of the Environment Article or the modified risk reduction standards under § 6–817 of the Environment Article;</text> </level> <level label="iii"> <text>temporarily reducing human exposure or probable exposure to lead–based paint hazards, including specialized cleaning, repairing, maintaining, painting, temporarily containing, and ongoing monitoring of lead–based paint hazards or potential hazards;</text> </level> <level label="iv"> <text>associated testing, preparing, cleaning, protecting workers, disposing, and post–lead hazard reduction clearance testing; and</text> </level> <level label="v"> <text>testing an innovative or unproven method of lead hazard reduction.</text> </level> </level> </level> <level label="g"> <text>“Loan Program” means the Lead Hazard Reduction Loan Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-702" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <text>The General Assembly finds that:</text> <level label="1"> <text>lead paint is present in a large percentage of residential properties in the State, particularly residential rental properties constructed before 1950;</text> </level> <level label="2"> <text>lead paint on the friction surfaces of windows is a leading cause of lead poisoning;</text> </level> <level label="3"> <text>lead poisoning harms the health and well-being of children and pregnant women and causes substantial long-term public costs for medical expenses and additional education; and</text> </level> <level label="4"> <text>reduction or elimination of lead in the environment will reduce:</text> <level label="i"> <text>the risk of lead poisoning of children and pregnant women;</text> </level> <level label="ii"> <text>the incidence of learning disabilities and behavioral problems in children who live in older housing; and</text> </level> <level label="iii"> <text>the cost of publicly financed medical care.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-703" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <text>The purpose of the Grant Program and the Loan Program is to make grants and loans to owners of residential property or child care centers for financing lead hazard reduction activities, especially replacing windows containing lead-based paint on friction surfaces.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-704" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>The Department may establish:</text> <level label="1"> <text>loan fees and charges;</text> </level> <level label="2"> <text>maximum loan or grant amounts for lead hazard reduction activities; and</text> </level> <level label="3"> <text>guidelines that give financing priority to lead hazard reduction activities that include replacing windows containing lead-based paint on friction surfaces.</text> </level> </level> <level label="b"> <level label="1"> <text>On application of a political subdivision, the Department may provide money from the Fund allocated to the Grant Program or the Loan Program to the political subdivision to make a grant or loan, on behalf of the Department, to an eligible owner of residential property or a child care center in the political subdivision.</text> </level> <level label="2"> <text>The Department may limit the amount of money that a political subdivision may request under paragraph (1) of this subsection.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-705" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <text>The Department shall:</text> <level label="1"> <text>administer the Grant Program and the Loan Program; and</text> </level> <level label="2"> <text>establish eligibility guidelines for grants and loans.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-706" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <text>The Department shall adopt regulations to carry out the Grant Program and the Loan Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-707" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>An individual or family, including an elderly household, qualifies as a family of limited income if the income of the individual or family does not exceed the limits that the Secretary sets.</text> </level> <level label="b"> <text>The factors that the Secretary shall consider in setting limits under subsection (a) of this section shall include:</text> <level label="1"> <text>the family income deemed available for housing;</text> </level> <level label="2"> <text>the size of the family;</text> </level> <level label="3"> <text>the ability of the family to compete successfully in the private housing market;</text> </level> <level label="4"> <text>the cost and condition of available housing; and</text> </level> <level label="5"> <text>relevant standards and definitions under federal and State housing programs.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-708" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>There is a Lead Hazard Reduction Grant Program.</text> </level> <level label="b"> <text>The Department may make a grant solely to finance a lead hazard reduction activity that:</text> <level label="1"> <text>is a program that tests innovative or unproven methods of lead hazard reduction; or</text> </level> <level label="2"> <text>is in a residential property in an area designated by the Department to have a concentration of:</text> <level label="i"> <text>families of limited income; and</text> </level> <level label="ii"> <level label="1"> <text>residential property constructed before 1950; or</text> </level> <level label="2"> <text>children diagnosed with elevated blood lead, which is a quantity of lead in their blood, expressed in micrograms per deciliter (�g/dl), that exceeds a specified threshold level.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>The Department may establish standards to determine the eligibility of a lead hazard reduction activity for a grant under the Grant Program.</text> </level> <level label="2"> <text>The standards may call for consideration of:</text> <level label="i"> <text>the extent to which the lead hazard reduction activity benefits families of limited income;</text> </level> <level label="ii"> <text>the need and circumstances of the owner–occupants or tenants of the residential property in which the proposed lead hazard reduction activity will be undertaken; and</text> </level> <level label="iii"> <text>whether the grant finances research into innovative or unproven methods for lead hazard reduction.</text> </level> </level> </level> <level label="d"> <text>In determining whether to make a grant under the Grant Program, the Department shall require that the owner of the residential property or child care center submit evidence that the owner cannot undertake lead hazard reduction activity without a grant.</text> </level> <level label="e"> <text>The Department may require that all or part of a grant under the Grant Program be repaid when conditions specified by the Department occur.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-709" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>There is a Lead Hazard Reduction Loan Program.</text> </level> <level label="b"> <text>The Department may make a loan to finance lead hazard reduction activity.</text> </level> <level label="c"> <text>A loan under the Loan Program:</text> <level label="1"> <text>may be secured by a mortgage lien or other security interest acceptable to the Department; and</text> </level> <level label="2"> <text>may include terms that the Department considers appropriate.</text> </level> </level> <level label="d"> <text>For a loan made under the Loan Program, the Department may:</text> <level label="1"> <text>defer payment of principal and interest; and</text> </level> <level label="2"> <text>establish interest rates as low as 0%.</text> </level> </level> <level label="e"> <text>Each loan shall require repayment of all unpaid principal and payment of accrued interest, including deferred interest, but the loan terms may allow the Department to forgive all or part of the principal and interest.</text> </level> <level label="f"> <text>If a loan is in default, the Department may modify the interest rate, the time or amount of payment, or any other term to facilitate repayment and achieve the purposes of the Loan Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-710" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <text>In reviewing an application for a loan or grant, the Department shall consider:</text> <level label="1"> <text>the needs of the beneficiaries of the proposed lead hazard reduction activity;</text> </level> <level label="2"> <text>the capacity of the applicant to repay a loan;</text> </level> <level label="3"> <text>the overall public benefit;</text> </level> <level label="4"> <text>the impact on the surrounding neighborhood or community; and</text> </level> <level label="5"> <text>any other factor that the Department finds relevant.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-711" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <text>In this section, “Committee” means the Lead Hazard Advisory Committee.</text> </level> <level label="b"> <text>There is a Lead Hazard Advisory Committee.</text> </level> <level label="c"> <text>The Committee consists of the following seven members:</text> <level label="1"> <text>the Secretary of Housing and Community Development, or the Secretary’s designee;</text> </level> <level label="2"> <text>the Secretary of the Environment, or the Secretary’s designee;</text> </level> <level label="3"> <text>the Secretary of Health, or the Secretary’s designee; and</text> </level> <level label="4"> <text>four members appointed by the Governor:</text> <level label="i"> <text>a member of the Lead Poisoning Prevention Commission;</text> </level> <level label="ii"> <text>a representative of owners of residential rental property built before 1950;</text> </level> <level label="iii"> <text>a representative of a child, youth, or health advocacy group; and</text> </level> <level label="iv"> <text>a member of the public who has an interest in lead in the environment.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The term of an appointed member of the Committee is 4 years.</text> </level> <level label="2"> <text>The terms of the appointed members are staggered as required by the terms provided for members of the Committee on October 1, 2005.</text> </level> <level label="3"> <text>At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>An appointed member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="e"> <text>The Secretary or the Secretary’s designee is the chair of the Committee.</text> </level> <level label="f"> <text>Each member of the Committee is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> <level label="g"> <text>In consultation with the Committee, the Department shall develop regulations, policies, and guidelines to carry out the Grant Program and the Loan Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-712" title_number="4" title_name="Division of Development Finance" subtitle_number="7" subtitle_name="Lead Hazard Reduction Grant Program and Lead Hazard Reduction Loan Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department relating to a grant or loan.</text> </level> <level label="2"> <text>A grant or loan applicant may not knowingly make or cause to be made any false statement or report to influence the action of the Department on a grant or loan application or a grant or loan already made.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-801" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Adjusted annual income” means gross income from all sources with adjustments, as determined by the Department, made for unusual or temporary income items and long-term unusual expenses such as medical, rehabilitation, or special education expenses.</text> </level> <level label="2"> <text>“Adjusted annual income” includes:</text> <level label="i"> <text>wages;</text> </level> <level label="ii"> <text>investment income;</text> </level> <level label="iii"> <text>Social Security payments;</text> </level> <level label="iv"> <text>retirement payments;</text> </level> <level label="v"> <text>disability payments; and</text> </level> <level label="vi"> <text>unemployment insurance payments.</text> </level> </level> </level> <level label="c"> <text>“Fund” means the Homeownership Programs Fund under Subtitle 5 of this title.</text> </level> <level label="d"> <text>“Household of limited income” means one or more individuals whose aggregate adjusted annual income does not exceed the upper income limits that the Secretary sets under § 4-807 of this subtitle.</text> </level> <level label="e"> <text>“Lot consolidation” means the acquisition of real property adjacent to and in connection with a residence financed by the Program to include the real property as part of the residence.</text> </level> <level label="f"> <text>“Median annual family income” means the median annual family income for the State, county, or area, whichever is greatest, as shown in the latest Census Bureau Report of the United States Department of Commerce.</text> </level> <level label="g"> <text>“Preferred interest rate” means an interest rate that the Department sets under § 4-806(c) of this subtitle.</text> </level> <level label="h"> <text>“Program” means the Maryland Home Financing Program.</text> </level> <level label="i"> <text>“Region” means an area of the State that the Department establishes comprising one or more counties.</text> </level> <level label="j"> <text>“Short-term loan” means a loan that, under the loan documents, is expected to be taken out by other financing within 7 years.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-802" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>This subtitle applies only to loans that the Department makes under this subtitle or that were made before July 1, 1989, under the Maryland Home Financing Program, the Reverse Equity Loan Program, or the Homeowners’ Emergency Mortgage Assistance Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-803" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>There is a Maryland Home Financing Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-804" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>The purposes of the Program are to make, participate in making, and purchase:</text> <level label="1"> <text>preferred interest rate loans to acquire, acquire and rehabilitate with or without demolition or lot consolidation, or refinance a primary residence by:</text> <level label="i"> <text>households of limited income that will occupy single–unit primary residences; or</text> </level> <level label="ii"> <text>owner–occupants of residential buildings with not more than four units, if each unit other than the owner’s will be occupied by a household of limited income;</text> </level> </level> <level label="2"> <text>short–term construction loans to developers or nonprofit sponsors to construct or rehabilitate dwelling units that households of limited income can afford;</text> </level> <level label="3"> <text>short–term loans to nonprofit sponsors, as defined in Departmental regulations, to acquire and construct or acquire and rehabilitate, with or without demolition or lot consolidation, dwelling units that households of limited income can afford to buy under a purchase or lease–purchase contract;</text> </level> <level label="4"> <text>emergency assistance loans to households of limited income who, because of unemployment or other extraordinary hardship, cannot make current mortgage payments on their homes and risk forfeiting the title to their homes;</text> </level> <level label="5"> <text>reverse equity loans to elderly households of limited income for housing–related expenses or personal expenses that enable the owner to continue to occupy the home; and</text> </level> <level label="6"> <text>preferred interest rate loans to households that meet income standards set by the Department for the redemption of ground leases on their principal residence, including the transactional costs associated with the redemption.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-805" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>The Department may:</text> <level label="1"> <text>contract for services related to the Program;</text> </level> <level label="2"> <text>contract with private mortgage servicers to perform on behalf of the Department functions the servicers ordinarily perform, including foreclosure and employment of counsel;</text> </level> <level label="3"> <text>require payment of a nonrefundable application fee;</text> </level> <level label="4"> <text>purchase or commit to purchase from mortgage lenders notes or mortgages that meet the requirements of this subtitle, any regulations adopted under it, and appropriate Program directives; and</text> </level> <level label="5"> <text>without approval or execution by the Board of Public Works:</text> <level label="i"> <text>assign a mortgage for value;</text> </level> <level label="ii"> <text>release a mortgage;</text> </level> <level label="iii"> <text>foreclose a mortgage;</text> </level> <level label="iv"> <text>acquire property that secures a loan in default;</text> </level> <level label="v"> <text>encumber, sell, or otherwise dispose of property acquired in connection with a loan in default;</text> </level> <level label="vi"> <text>sell a loan at a discount or on other terms acceptable to the Department;</text> </level> <level label="vii"> <text>transfer to the Fund money received on the sale of a loan under item (vi) of this item; and</text> </level> <level label="viii"> <text>repurchase or pay the cost of servicing a loan that has been sold under item (vi) of this item with money in the Fund and on terms acceptable to the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-806" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>manage the Program in a manner that:</text> <level label="i"> <text>serves all areas of the State; and</text> </level> <level label="ii"> <text>does not create or aggravate low-income concentrations that adversely affect communities;</text> </level> </level> <level label="2"> <text>periodically set upper limits on adjusted annual income;</text> </level> <level label="3"> <text>use federal or State programs that complement or facilitate carrying out the Program; and</text> </level> <level label="4"> <text>adopt regulations to carry out the Program.</text> </level> </level> <level label="b"> <text>The Department shall adopt policies to ensure that each loan made under the Program is made only to:</text> <level label="1"> <text>a household that:</text> <level label="i"> <text>when the loan is made, has an adjusted annual income at or below the applicable upper limit that the Secretary sets under § 4-807 of this subtitle; and</text> </level> <level label="ii"> <text>cannot qualify for conventional or other available departmental financing to enable the owner to continue to occupy the home, or to acquire, acquire and rehabilitate with or without demolition or lot consolidation, or refinance a home;</text> </level> </level> <level label="2"> <text>a developer that the Department reasonably believes can build or rehabilitate housing that a household of limited income can afford; and</text> </level> <level label="3"> <text>an owner-occupant of a residential building with not more than four units if each unit other than the owner’s will be occupied by a household of limited income.</text> </level> </level> <level label="c"> <level label="1"> <text>For each type of loan described in § 4–804 of this subtitle, the Department periodically shall set:</text> <level label="i"> <text>appropriate terms, including deferred payments on principal and interest; and</text> </level> <level label="ii"> <text>a preferred interest rate that may be as low as 0.0% or as high as is reasonable in light of the incomes of the proposed occupants.</text> </level> </level> <level label="2"> <text>In setting these terms and interest rates, the Department shall take into account rates available in the conventional private housing market and the adjusted annual income and assets of prospective borrowers.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-807" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>In setting upper limits on adjusted annual income, the Department shall consider factors including:</text> <level label="1"> <text>the total income of each individual expected to live in the home;</text> </level> <level label="2"> <text>the size of the household;</text> </level> <level label="3"> <text>the cost of available housing facilities;</text> </level> <level label="4"> <text>the ability of the household to compete successfully in the conventional private housing market; and</text> </level> <level label="5"> <text>pertinent standards and definitions established for federal housing programs.</text> </level> </level> <level label="b"> <text>Upper limits on adjusted annual income may vary for different:</text> <level label="1"> <text>types of housing;</text> </level> <level label="2"> <text>types of financing offered by the Program; and</text> </level> <level label="3"> <text>regions.</text> </level> </level> <level label="c"> <text>Within the upper limits on adjusted annual income, lower income limit ranges and lower interest rates may be established for loans to households with adjusted annual incomes in the lower ranges.</text> </level> <level label="d"> <text>Except for loans made under § 4–804(4) and (6) of this subtitle, the upper limits on adjusted annual income established under subsection (a) of this section may not exceed the median annual family income.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-808" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>The Program shall be operated with the money in the Fund.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-809" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>To apply for a loan under this subtitle, an applicant shall submit:</text> <level label="1"> <text>a completed application in a form that the Department requires;</text> </level> <level label="2"> <text>a copy of the applicant’s latest State income tax return or other available verification of income, unless the application is for a loan under § 4-804(1)(i) or (2) of this subtitle; and</text> </level> <level label="3"> <text>any other information or documentation that the Department considers necessary to make a determination on the loan.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-810" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>To qualify for a loan under § 4-804(1)(i), (4), or (5) of this subtitle, an applicant:</text> <level label="1"> <text>shall be a member of a household of limited income;</text> </level> <level label="2"> <text>on closing of the loan, shall intend to reside in the home to be financed;</text> </level> <level label="3"> <text>may not own other property used as the applicant’s personal residence; and</text> </level> <level label="4"> <text>in the estimation of the Department, shall lack the financial resources to obtain a private conventional mortgage or to qualify for other departmental loan programs.</text> </level> </level> <level label="b"> <text>To qualify for a loan under § 4-804(1)(ii) of this subtitle, an applicant:</text> <level label="1"> <text>shall agree in writing to live as an owner-occupant in one of the units of a residential building with no more than four units;</text> </level> <level label="2"> <text>shall agree in writing to rent each unit other than the applicant’s unit to a household of limited income; and</text> </level> <level label="3"> <text>in the estimation of the Department, shall lack the financial resources to obtain a private conventional mortgage or qualify for other departmental loan programs.</text> </level> </level> <level label="c"> <text>To qualify for a loan under § 4-804(2) of this subtitle, an applicant shall agree to sell or rent each dwelling unit constructed or rehabilitated with the proceeds of the loan to a household of limited income.</text> </level> <level label="d"> <text>To qualify for a loan under § 4–804(6) of this subtitle, an applicant shall:</text> <level label="1"> <text>own and occupy the home as the applicant’s principal residence; and</text> </level> <level label="2"> <text>meet the income requirements set by the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-811" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>To qualify for an emergency assistance loan made under § 4-804(4) of this subtitle, an applicant:</text> <level label="1"> <text>shall be unable to keep payments current on the applicant’s home mortgage because of unforeseeable adverse personal or economic circumstances;</text> </level> <level label="2"> <text>shall be at risk of forfeiting title to the applicant’s home; and</text> </level> <level label="3"> <text>reasonably may be expected to resume regular mortgage payments within 24 months after the first mortgage assistance payment is provided.</text> </level> </level> <level label="b"> <text>For an emergency assistance loan under § 4-804(4) of this subtitle:</text> <level label="1"> <text>the Department shall consider the amount of equity in the property; and</text> </level> <level label="2"> <text>the loan may not exceed an amount equal to 36 payments of principal and interest on all superior liens, plus:</text> <level label="i"> <text>late fees;</text> </level> <level label="ii"> <text>taxes;</text> </level> <level label="iii"> <text>insurance payments; and</text> </level> <level label="iv"> <text>other payments needed for the loan to be current.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-812" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>To qualify for a reverse equity loan under § 4-804(5) of this subtitle, an applicant shall:</text> <level label="1"> <text>be at least 62 years old when the loan closes; and</text> </level> <level label="2"> <text>need financial assistance with housing-related expenses or personal expenses that enable the owner to continue to occupy the home.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-813" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>To qualify for a short-term construction loan under § 4-804(2) of this subtitle, a developer or nonprofit sponsor shall:</text> <level label="1"> <text>provide construction costs, marketing data, and other information the Department requires; and</text> </level> <level label="2"> <text>have a commitment from the Department under § 4-815(j) of this subtitle for permanent financing for the sale of each residence to be built or rehabilitated with the short-term construction loan.</text> </level> </level> <level label="b"> <text>To qualify for a short-term loan under § 4-804(3) of this subtitle, a nonprofit sponsor:</text> <level label="1"> <text>shall provide:</text> <level label="i"> <text>information on the costs of the proposed undertaking;</text> </level> <level label="ii"> <text>marketing data; and</text> </level> <level label="iii"> <text>other information the Department requires; and</text> </level> </level> <level label="2"> <text>shall have:</text> <level label="i"> <text>a commitment from the Department for permanent financing for the sale of each residence built or rehabilitated with the short-term loan; or</text> </level> <level label="ii"> <text>approval from the Department to rent the residence subject to a lease purchase agreement acceptable to the Department.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-814" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <text>To qualify for a preferred interest rate loan to refinance an existing home under § 4-804(1) of this subtitle, an applicant shall:</text> <level label="1"> <text>be unable to keep payments current on the applicant’s home mortgage because of exceptional adverse personal or economic circumstances; and</text> </level> <level label="2"> <text>risk forfeiting title to the applicant’s home.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-815" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>As to each loan, the Department may set:</text> <level label="1"> <text>the principal amount, subject to subsection (f) of this section;</text> </level> <level label="2"> <text>the term of the loan, not to exceed 40 years except in the case of a reverse equity loan made under subsection (b)(3) of this section;</text> </level> <level label="3"> <text>the interest rate, which may be adjustable under subsection (g) of this section;</text> </level> <level label="4"> <text>the principal repayment terms, subject to subsections (b) and (c) of this section; and</text> </level> <level label="5"> <text>other terms that the Department considers necessary to achieve the purposes of the Program.</text> </level> </level> <level label="b"> <level label="1"> <text>A loan may provide for immediate acceleration if the borrower violates § 4-816 of this subtitle or if the loan is in default.</text> </level> <level label="2"> <text>In the case of a preferred interest rate loan under § 4-804(1) of this subtitle, a loan may provide for full acceleration of principal after 5 years if the borrower:</text> <level label="i"> <text>no longer qualifies as a household of limited income; and</text> </level> <level label="ii"> <text>can qualify for conventional mortgage financing.</text> </level> </level> <level label="3"> <text>In the case of a reverse equity loan made under § 4-804(5) of this subtitle, a loan may provide for:</text> <level label="i"> <text>full or partial deferral on payment of interest and principal until sale, conveyance in accordance with a will or trust instrument, or other transfer of the mortgaged property or a beneficial interest in the property; and</text> </level> <level label="ii"> <text>forgiveness of accrued interest in excess of the available equity in the mortgaged property when the conveyance occurs.</text> </level> </level> <level label="4"> <text>In the case of an emergency assistance loan under § 4-804(4) of this subtitle, a loan may provide for full or partial deferral of payment of interest and principal until a stated date when the Department reasonably anticipates that the borrower will be able to make full or partial payments.</text> </level> </level> <level label="c"> <text>A mortgage shall include the right of the Department to:</text> <level label="1"> <text>foreclose the mortgage and take title to the foreclosed property or convey title to a buyer; and</text> </level> <level label="2"> <text>obtain a deficiency judgment.</text> </level> </level> <level label="d"> <level label="1"> <text>Repayment of a loan shall be secured by a recorded lien on the real property.</text> </level> <level label="2"> <text>The lien may be a subordinate lien.</text> </level> <level label="3"> <text>A lien securing an emergency assistance loan may be released if the release is in the interest of the Department.</text> </level> </level> <level label="e"> <text>The Department may require a mortgage to be insured at the borrower’s expense by a federal, State, or private instrumentality.</text> </level> <level label="f"> <level label="1"> <text>For a preferred interest loan under § 4–804(1) of this subtitle, the amount of the loan and any prior recorded liens outstanding may not exceed the value of the secured property, as determined by the Department when the loan is closed, plus settlement expenses.</text> </level> <level label="2"> <text>For a reverse equity loan under § 4–804(5) of this subtitle, the principal amount of the loan and any prior liens outstanding may not exceed the value of the secured property as determined by the Department from time to time.</text> </level> <level label="3"> <text>For a short–term loan under § 4–804(2) of this subtitle, the amount of the loan may not exceed the total commitments for permanent financing for buyers, including any commitments of federal, State, or local money to subsidize the cost of the dwelling units.</text> </level> <level label="4"> <text>For a preferred interest rate loan under § 4–804(6) of this subtitle, the Department may set the maximum amount of the loan, including the maximum amount that may be used for the transactional costs associated with the redemption.</text> </level> </level> <level label="g"> <text>After full disclosure to the borrower when the loan is made, the Department may take as security an adjustable interest rate mortgage under which any rate adjustment must:</text> <level label="1"> <text>follow written notice to the borrower; and</text> </level> <level label="2"> <text>be based on an increase or decrease in household income.</text> </level> </level> <level label="h"> <text>On default, the Department may modify the interest rate, the time or amount of payment, or any other term of the loan to facilitate repayment of the loan and achieve the purposes of the Program.</text> </level> <level label="i"> <text>For a mortgage securing a loan under this subtitle, the Department may allow:</text> <level label="1"> <text>the transfer of the mortgaged property or an interest in the property without monetary consideration:</text> <level label="i"> <text>to a spouse, child, or other immediate family member; or</text> </level> <level label="ii"> <text>in connection with the death of a borrower, a divorce decree, or a legal separation agreement; and</text> </level> </level> <level label="2"> <text>assumption of the mortgage by a transferee described in item (1)(i) of this subsection for monetary consideration and by any other transferee with or without consideration if the transferee qualifies as a household of limited income and satisfies all other Program requirements.</text> </level> </level> <level label="j"> <text>For the developer of housing that will be priced so as to be affordable to households of limited income, the Department may commit to reserve for a fixed period a fixed amount of Program money to be available to finance preferred interest rate mortgage loans for households of limited income who seek to purchase from the developer fully constructed or rehabilitated homes.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-816" title_number="4" title_name="Division of Development Finance" subtitle_number="8" subtitle_name="Maryland Home Financing Program"> <level label="a"> <text>A person may not knowingly make or cause to be made any material misstatement of fact, including an understatement or overstatement of financial condition, in a statement or report that:</text> <level label="1"> <text>is in or relates to a loan application under this subtitle; or</text> </level> <level label="2"> <text>affects a loan already made under this subtitle.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-901" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Cooperative housing corporation” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article.</text> </level> <level label="c"> <text>“Cooperative interest” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article.</text> </level> <level label="d"> <level label="1"> <text>“Family of limited income” means a family or individual whose income does not exceed the limits that the Secretary establishes under § 4–915 of this subtitle.</text> </level> <level label="2"> <text>“Family of limited income” includes a trust described in 42 U.S.C. § 1396p(d)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with assets that were never owned or controlled by the beneficiary, if:</text> <level label="i"> <text>the income of the trust does not exceed the upper income limits established by the Secretary under § 4–915 of this subtitle; and</text> </level> <level label="ii"> <text>the beneficiary of the trust is an individual who resides in the residential building owned by the trust.</text> </level> </level> </level> <level label="e"> <text>“Local rehabilitation program” means a rehabilitation program that uses Program loans and is administered by a political subdivision or a nonprofit sponsor.</text> </level> <level label="f"> <text>“Member” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article.</text> </level> <level label="g"> <text>“Minimum livability code” means a regulation, statute, or ordinance that establishes minimum property maintenance standards that the State or a political subdivision adopts under § 12–203 of the Public Safety Article.</text> </level> <level label="h"> <text>“Nonprofit sponsor” means:</text> <level label="1"> <text>a nonprofit organization;</text> </level> <level label="2"> <text>a political subdivision; or</text> </level> <level label="3"> <text>a limited partnership formed to undertake a rehabilitation project that is eligible wholly or partly for federal programs or incentives, if:</text> <level label="i"> <text>each general partner is a nonprofit organization or a political subdivision; or</text> </level> <level label="ii"> <level label="1"> <text>each general partner is a wholly owned subsidiary of a nonprofit organization or political subdivision; and</text> </level> <level label="2"> <text>a nonprofit organization or political subdivision manages the rehabilitation project or will receive net cash flow or the residual sale proceeds on the sale of the rehabilitation project.</text> </level> </level> </level> </level> <level label="i"> <text>“Program” means the Maryland Housing Rehabilitation Program.</text> </level> <level label="j"> <text>“Program loan” means a loan or grant under the Maryland Housing Rehabilitation Program or a special loan program.</text> </level> <level label="k"> <text>“Regular Rehabilitation Program” means the Program when used to fund a loan for a single family project.</text> </level> <level label="l"> <level label="1"> <text>“Rehabilitation project” means a project to repair, reconstruct, renovate, redevelop, improve, modify, or add to a building for a purpose listed in § 4–923 of this subtitle.</text> </level> <level label="2"> <text>“Rehabilitation project” includes providing utility submetering for dwellings in a residential rental building.</text> </level> </level> <level label="m"> <text>“Special loan program” means:</text> <level label="1"> <text>the Accessory, Shared, and Sheltered Housing Program;</text> </level> <level label="2"> <text>the Indoor Plumbing Program;</text> </level> <level label="3"> <text>the Lead Paint Abatement Program;</text> </level> <level label="4"> <text>the Migratory Worker Housing Program;</text> </level> <level label="5"> <text>the Radon and Asbestos Abatement Pilot Program; and</text> </level> <level label="6"> <text>the Accessible Homes for Senior Homeowners Grant Program.</text> </level> </level> <level label="n"> <text>“Special Rehabilitation Program” means the Program when used to fund a loan under a special loan program.</text> </level> <level label="o"> <text>“Sponsor” means an owner who receives a loan to rehabilitate a building for residential rental purposes or nonresidential purposes.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-902" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>This subtitle applies to buildings that, after rehabilitation, provide:</text> <level label="1"> <text>traditional dwellings;</text> </level> <level label="2"> <text>single room occupancy;</text> </level> <level label="3"> <text>shared living dwellings in which two or more households can live and share some or all of the living, dining, kitchen, or sanitary facilities; or</text> </level> <level label="4"> <text>congregate or group housing and related services or temporary shelters and related services that serve:</text> <level label="i"> <text>individuals with disabilities or low-income, elderly households, homeless, or other disadvantaged individuals; or</text> </level> <level label="ii"> <text>the nonresidential commercial, business, or social needs of the community where the building is located, so as to enhance the economic feasibility of housing rehabilitation in that community.</text> </level> </level> </level> <level label="b"> <text>This subtitle does not apply to a building that provides group housing unless the group housing is provided by an owner-occupant or a nonprofit sponsor.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-903" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The General Assembly finds that:</text> <level label="1"> <level label="i"> <text>many residents of the State live in dwellings that do not conform to building, health, safety, fire, occupancy, or other codes and standards applicable to housing;</text> </level> <level label="ii"> <text>many communities or political subdivisions in the State do not have a minimum livability code; and</text> </level> <level label="iii"> <text>these conditions impede the development and maintenance of healthy, safe, and viable communities;</text> </level> </level> <level label="2"> <text>private sector financing is often unavailable for rehabilitation because:</text> <level label="i"> <text>owner–occupants of housing in need of rehabilitation often have low incomes; and</text> </level> <level label="ii"> <text>nonoccupant owners often incur high risks in owning and managing the housing;</text> </level> </level> <level label="3"> <text>rehabilitating suitable housing:</text> <level label="i"> <text>increases the economic life of the housing;</text> </level> <level label="ii"> <text>is often more economical and less disruptive than replacing the housing and relocating its occupants;</text> </level> <level label="iii"> <text>can better promote community development when it is done through organized housing rehabilitation programs;</text> </level> <level label="iv"> <text>is essential for sound community development; and</text> </level> <level label="v"> <text>can be helped by rehabilitating commercial buildings serving communities where housing rehabilitation is desirable;</text> </level> </level> <level label="4"> <text>it is a proper public purpose for which public money may be spent and property acquired to:</text> <level label="i"> <text>rehabilitate housing;</text> </level> <level label="ii"> <text>develop healthful, safe, and viable communities;</text> </level> <level label="iii"> <text>rehabilitate commercial buildings to help rehabilitate and develop housing; and</text> </level> <level label="iv"> <text>provide healthful and safe housing for migratory workers to maintain and expand the agricultural activities that are dependent on the labor of these workers; and</text> </level> </level> <level label="5"> <text>it is a proper public purpose for which public money may be spent to:</text> <level label="i"> <text>improve, modify, and add to housing to increase the supply of special housing for special populations, such as elderly households, individuals with disabilities, and other disadvantaged residents of the State;</text> </level> <level label="ii"> <text>prevent lead poisoning by modifying older housing to provide a lead–safe environment, as lead paint in older housing is a major source of lead poisoning in children;</text> </level> <level label="iii"> <text>provide adequate indoor plumbing, water supply, and sewage disposal systems for dwellings; and</text> </level> <level label="iv"> <text>reduce or eliminate radon and asbestos, which are major detriments to the health and safety of residents, on a pilot program basis.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-904" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>There is a Maryland Housing Rehabilitation Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-905" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The Maryland Housing Rehabilitation Program includes:</text> <level label="1"> <text>the Accessory, Shared, and Sheltered Housing Program;</text> </level> <level label="2"> <text>the Indoor Plumbing Program;</text> </level> <level label="3"> <text>the Migratory Worker Housing Program;</text> </level> <level label="4"> <text>the Radon and Asbestos Abatement Pilot Program; and</text> </level> <level label="5"> <text>the Accessible Homes for Senior Homeowners Grant Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-906" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>The Department shall operate the Program and make Program loans.</text> </level> <level label="2"> <text>As much as possible, the Program shall be administered:</text> <level label="i"> <text>in conjunction with federal programs assisting rehabilitation of housing, to ensure maximum use of available federal money; and</text> </level> <level label="ii"> <text>consistently with locally approved plans or programs of concentrated neighborhood revitalization.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except for Program loans made under a special loan program, the Regular Rehabilitation Program consists of Program loans to rehabilitate residential buildings providing four or fewer dwellings.</text> </level> <level label="2"> <text>The Special Rehabilitation Program consists of Program loans made under a special loan program.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-907" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>The Regular Rehabilitation Program and the Special Rehabilitation Program shall operate with money in the Special Loan Programs Fund and other money available to the Department for these programs.</text> </level> <level label="b"> <text>If the applications that qualify for a Program loan under the Regular Rehabilitation Program or a special loan program do not commit all money appropriated to that loan program within 6 months after the appropriation, the Department may reallocate the remaining appropriated money to any other program financed by the Special Loan Programs Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-908" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The Department may:</text> <level label="1"> <text>limit the return on equity allowed to, or enter into equity participation agreements with, sponsors and nonprofit sponsors;</text> </level> <level label="2"> <text>require and obtain appraisals, credit and title information, and other information related to making Program loans;</text> </level> <level label="3"> <text>contract for services relating to any aspect of the operation of the Program under the procedures required by law for State contracts;</text> </level> <level label="4"> <text>charge and collect:</text> <level label="i"> <text>reasonable application and processing fees; and</text> </level> <level label="ii"> <text>other charges, fees, or reimbursements incidental to Program loans; and</text> </level> </level> <level label="5"> <text>if necessary, limit the cumulative outstanding debt for Program loans made to a trust described in 42 U.S.C. § 1396p(d)(4) to preserve the ongoing financial viability of the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-909" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>If Program loans are secured by first or junior mortgages, the Department may:</text> <level label="1"> <text>enforce the mortgages;</text> </level> <level label="2"> <text>foreclose on the mortgages and take title to the mortgaged properties, or take deeds in lieu of foreclosure;</text> </level> <level label="3"> <text>convey title to purchasers;</text> </level> <level label="4"> <text>obtain and enforce deficiency judgments;</text> </level> <level label="5"> <text>allow assumption of mortgages; and</text> </level> <level label="6"> <text>contract with private mortgage servicers to perform on behalf of the Department any functions the servicers ordinarily perform.</text> </level> </level> <level label="b"> <text>Without approval or execution by the Board of Public Works, the Department may:</text> <level label="1"> <text>assign mortgages for value;</text> </level> <level label="2"> <text>release mortgages when paid;</text> </level> <level label="3"> <text>foreclose on mortgages;</text> </level> <level label="4"> <text>take deeds in lieu of foreclosure; or</text> </level> <level label="5"> <text>convey property after acquisition.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-909.1" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>If a Program loan to a member of a cooperative housing corporation is secured by a security interest in the member’s cooperative interest, the Department may:</text> <level label="1"> <text>foreclose on the security interest or otherwise enforce the security interest as permitted under Title 9 of the Commercial Law Article;</text> </level> <level label="2"> <text>take possession of the premises in lieu of foreclosure;</text> </level> <level label="3"> <text>obtain and enforce deficiency judgments;</text> </level> <level label="4"> <text>transfer the cooperative interest;</text> </level> <level label="5"> <text>allow assumption of the security agreement; and</text> </level> <level label="6"> <text>contract with private loan servicers to perform on behalf of the Department any functions the private loan servicers ordinarily perform.</text> </level> </level> <level label="b"> <text>Without approval or execution by the Board of Public Works, the Department may:</text> <level label="1"> <text>assign a security interest for value;</text> </level> <level label="2"> <text>release a security interest when paid;</text> </level> <level label="3"> <text>foreclose on a security interest;</text> </level> <level label="4"> <text>take possession of the premises in lieu of foreclosure; or</text> </level> <level label="5"> <text>transfer a cooperative interest after acquisition.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-910" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The Department may adopt regulations to carry out the Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-911" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>To ensure that all areas of the State are served, the Department shall allocate at least annually among the counties the money appropriated for making Program loans under the Regular Rehabilitation Program.</text> </level> <level label="b"> <text>When allocating money to a county, the Department shall consider:</text> <level label="1"> <text>the number of families of limited income in the county;</text> </level> <level label="2"> <text>the need to rehabilitate buildings in the county;</text> </level> <level label="3"> <text>the capability of the county to administer a local rehabilitation program; and</text> </level> <level label="4"> <text>other standards that the Department considers relevant to ensure fair and equitable distribution of money among counties.</text> </level> </level> <level label="c"> <text>The Department may:</text> <level label="1"> <text>allocate on a countywide basis first and then make suballocations among participating municipal corporations and nonprofit sponsors within counties;</text> </level> <level label="2"> <text>allocate up to 25% of the total money available in the Special Loan Programs Fund to a reserve; and</text> </level> <level label="3"> <text>from time to time, reallocate the money held in the reserve.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-912" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>Money that is received as repayment of principal or payment of interest on loans under the Program and that is not appropriated in the State budget may be credited to the Annuity Bond Fund, to be used to pay the principal of or interest on money borrowed by the State and appropriated to the Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-913" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The Department shall include in its request for appropriations for the Program:</text> <level label="1"> <text>an estimate of the interest rates at which Program loans may be made in the next fiscal year;</text> </level> <level label="2"> <text>the total principal amount of Program loans expected to be made at those interest rates in the next fiscal year; and</text> </level> <level label="3"> <text>any other information that the Secretary of Budget and Management requests about Program loans.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-914" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>If the Department certifies a political subdivision or nonprofit sponsor as capable of administering a local rehabilitation program, the political subdivision or nonprofit sponsor may originate and administer Program loans under regulations of the Department.</text> </level> <level label="b"> <level label="1"> <text>By regulation, the Department shall establish standards for determining the capability of a political subdivision or nonprofit sponsor to administer a local rehabilitation program.</text> </level> <level label="2"> <text>The standards shall include provisions on:</text> <level label="i"> <text>the size, training, and experience of the professional staff that would administer the Program; and</text> </level> <level label="ii"> <text>the capability of the professional staff to:</text> <level label="1"> <text>determine rehabilitation needs;</text> </level> <level label="2"> <text>establish rehabilitation programs;</text> </level> <level label="3"> <text>evaluate applications for Program loans; and</text> </level> <level label="4"> <text>monitor Program loans and the rehabilitation work done with them.</text> </level> </level> </level> </level> <level label="c"> <text>If the Department determines that a political subdivision or nonprofit sponsor cannot or does not want to administer a local rehabilitation program, the Department may originate and administer Program loans from the allocation or suballocation to that political subdivision.</text> </level> <level label="d"> <text>The Department may:</text> <level label="1"> <text>help train employees of political subdivisions and nonprofit sponsors to administer local rehabilitation programs under the standards that the Department sets; and</text> </level> <level label="2"> <text>provide political subdivisions and nonprofit sponsors advice and technical assistance on the administration of their local rehabilitation programs, including loan packaging, contractor and bid selection, zoning, marketing, engineering, and related services.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-915" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>The Secretary shall set upper limits on the income that a family or individual may have to qualify as a family of limited income.</text> </level> <level label="2"> <text>In setting the limits, the Secretary shall consider factors that include:</text> <level label="i"> <text>the portion of the total family income available for housing;</text> </level> <level label="ii"> <text>the size of the family;</text> </level> <level label="iii"> <text>the cost and condition of available housing;</text> </level> <level label="iv"> <text>the ability of the family to compete successfully in the private housing market; and</text> </level> <level label="v"> <text>relevant standards and definitions established for federal and State housing programs.</text> </level> </level> </level> <level label="b"> <text>The Secretary may waive income limits for a borrower or occupant seeking a Program loan to rehabilitate a building that the State historical preservation officer finds historically or architecturally significant.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-916" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>The Department may make Program loans for housing on terms that the Department considers necessary to make the housing affordable to families of limited income.</text> </level> <level label="2"> <text>The Department may make Program loans in the form of a grant to a family of limited income if:</text> <level label="i"> <text>the family of limited income owns and occupies the dwelling; and</text> </level> <level label="ii"> <text>the Department determines the family of limited income cannot undertake the rehabilitation project without a grant.</text> </level> </level> <level label="3"> <text>The terms may include:</text> <level label="i"> <text>deferred payment of principal and interest until the maturity date or the date of any sale or other transfer of the building or an interest in the building;</text> </level> <level label="ii"> <text>an interest rate as low as 0% or as high as is reasonable, given the incomes of the proposed occupants, if the interest rate does not violate any federal regulation governing the borrowing of money by the State;</text> </level> <level label="iii"> <text>increased interest rates or accelerated payments of principal and interest, if the borrower no longer qualifies for the Program loan; and</text> </level> <level label="iv"> <text>advance payments to a nonprofit sponsor for certain development costs, including architectural, engineering, and attorneys’ fees.</text> </level> </level> </level> <level label="b"> <text>Within the maximum income limits for families of limited income, the Secretary may establish:</text> <level label="1"> <text>lower income ranges;</text> </level> <level label="2"> <text>interest rates to be available on Program loans serving occupants with incomes within those lower ranges; and</text> </level> <level label="3"> <text>any preference or reservation of money for applications for Program loans to finance housing to serve occupants in those lower income ranges.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-917" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>A Program loan:</text> <level label="1"> <text>may not be made if the Department determines that comparable private financing is available to the prospective borrower; and</text> </level> <level label="2"> <text>may not exceed an amount the Secretary establishes by regulation.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided under paragraphs (2), (3), (4), and (5) of this subsection, a Program loan of more than $5,000 shall be secured wholly or partly by a recorded mortgage or deed of trust on real property.</text> </level> <level label="2"> <text>A Program loan to a political subdivision may be secured by a recorded mortgage, deed of trust on real property, or other security device acceptable to the Department.</text> </level> <level label="3"> <text>A Program loan to a trust described in 42 U.S.C. § 1396p(d)(4) may be secured by a recorded mortgage, deed of trust on real property, or other security device acceptable to the Department.</text> </level> <level label="4"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a Program loan to a member of a cooperative housing corporation may be secured by a perfected security interest in the member’s cooperative interest.</text> </level> <level label="ii"> <text>Before a Program loan is secured by a perfected security interest in the member’s cooperative interest, the Department shall enter into an agreement with the cooperative housing corporation that establishes the rights and obligations of the Department and the cooperative housing corporation with respect to the secured cooperative interest.</text> </level> </level> <level label="5"> <text>A Program loan in the form of a grant may be unsecured or secured by a mortgage, deed of trust, or other security device acceptable to the Department.</text> </level> </level> <level label="c"> <text>Program loans shall be made to:</text> <level label="1"> <text>families of limited income owning and occupying the building to be rehabilitated; or</text> </level> <level label="2"> <text>sponsors or nonprofit sponsors.</text> </level> </level> <level label="d"> <text>The Department may require that Program loans be insured.</text> </level> <level label="e"> <text>A Program loan may cover:</text> <level label="1"> <text>costs of a rehabilitation project, including implementation costs such as appraisal, architectural, and engineering fees; and</text> </level> <level label="2"> <text>closing costs of the Program loan.</text> </level> </level> <level label="f"> <text>The Department may modify the interest rate, the time or amount of payment, or any other term of a Program loan that is in default to facilitate repayment of the Program loan and achieve the purposes of the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-918" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>When the Department makes a Program loan to finance a residential rehabilitation project, the sponsor or nonprofit sponsor shall restrict some dwellings for occupancy by families of limited income for at least the greater of 15 years and the number of years required by federal law.</text> </level> <level label="2"> <text>The number of dwellings restricted under paragraph (1) of this subsection shall be at least the greater of:</text> <level label="i"> <text>the number that bears the same ratio to the total number of dwellings in the project as the amount the Program loan bears to the total financing of the undertaking; and</text> </level> <level label="ii"> <text>the number of dwellings required for a community development project under § 4–217(b)(1)(ii) of this title or the number of dwellings that the issuer of the bonds chooses, whichever is greater, if a portion of the costs of the residential rehabilitation project is financed by government–issued, federally tax–exempt revenue bonds.</text> </level> </level> </level> <level label="b"> <text>Dwellings restricted for occupancy to meet other federal or State occupancy requirements may be counted toward the number required under subsection (a) of this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-919" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>The Secretary shall establish standards to promote the maximum use of private financing.</text> </level> <level label="b"> <text>If a portion of a rehabilitation project is to be financed by a private lending institution, the Department shall require that the sponsor use all the private financing that the rehabilitation project can support without impairing:</text> <level label="1"> <text>the rehabilitation project; or</text> </level> <level label="2"> <text>affordable housing for families of limited income, if the rehabilitation project is residential.</text> </level> </level> <level label="c"> <text>As long as the State complies with all applicable federal treasury regulations governing borrowing money by the State, a Program loan shall be at an interest rate that at least covers:</text> <level label="1"> <text>the administrative and other expenses of the Program; and</text> </level> <level label="2"> <text>reasonably expected losses from defaults on Program loans.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-920" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>The Department shall establish a maximum percentage or amount of Program loans from the Rental Housing Programs Fund that may be used for nonresidential rehabilitation.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-921" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <text>Rehabilitation loans under the Regular Rehabilitation Program and special loan programs shall be financed by the Special Loan Programs Fund.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-922" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>In addition to making loans for rehabilitation projects to sponsors, nonprofit sponsors, or families of limited income from the Rental Housing Programs Fund and the Special Loan Programs Fund, the Department may use money from any other authorized source, including federal programs of assistance for rehabilitation, to make:</text> <level label="1"> <text>grants for rehabilitation projects to families of limited income or nonprofit sponsors; and</text> </level> <level label="2"> <text>loans for rehabilitation projects to sponsors, nonprofit sponsors, or families of limited income.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department:</text> <level label="i"> <text>shall use federal programs of assistance for rehabilitation to the maximum extent consistent with the purposes of this subtitle; and</text> </level> <level label="ii"> <text>may do all things necessary to qualify for participation in those programs.</text> </level> </level> <level label="2"> <text>The terms and conditions of loans and grants made under this section shall be in accordance with the legislation or other authority by which the money is made available to the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-923" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>The purpose of a rehabilitation project is:</text> <level label="1"> <text>to bring a building to a decent, safe, and sanitary condition in accordance with applicable codes and standards, including those for construction, health, safety, fire, and occupancy;</text> </level> <level label="2"> <text>to maintain the building in that condition;</text> </level> <level label="3"> <text>to make the building more useful and attractive;</text> </level> <level label="4"> <text>to conform the building to the appropriate minimum livability code;</text> </level> <level label="5"> <text>to provide, under applicable special loan programs:</text> <level label="i"> <text>lead paint abatement;</text> </level> <level label="ii"> <text>indoor plumbing; or</text> </level> <level label="iii"> <text>shared, accessory, or sheltered housing;</text> </level> </level> <level label="6"> <text>in the case of a loan or grant to an elderly household or a disabled homeowner, to modify or improve a dwelling to make it more accessible or functional for the occupants, if the building is, or after improvements will be, structurally sound and free of health and safety hazards; or</text> </level> <level label="7"> <text>to provide, under applicable special loan pilot programs, radon abatement or asbestos abatement.</text> </level> </level> <level label="b"> <level label="1"> <text>The applicable codes and standards under subsection (a)(1) of this section are:</text> <level label="i"> <text>those in force in the political subdivision where the building is located; or</text> </level> <level label="ii"> <text>those that the Department sets by regulation for that political subdivision solely for purposes of this subtitle, if the political subdivision lacks codes and standards that the Secretary considers sufficient to promote the objectives of this subtitle.</text> </level> </level> <level label="2"> <text>With the approval of the local enforcement authority, the Secretary may allow exceptions to a code or standard to preserve the historic or architectural value of a building undergoing rehabilitation under this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-926" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Accessory housing” means a dwelling with complete and independent sleeping, cooking, and living facilities that is:</text> <level label="i"> <text>within, attached to, or on the same parcel as a single-family, owner-occupied dwelling; and</text> </level> <level label="ii"> <text>subordinate to but under the same ownership as the single-family, owner-occupied dwelling.</text> </level> </level> <level label="3"> <text>“Shared housing” means a single-family, owner-occupied dwelling adapted for common and shared living use by the owner-occupant and another family of limited income.</text> </level> <level label="4"> <text>“Sheltered housing” means a single-family, owner-occupied dwelling that:</text> <level label="i"> <text>accommodates the owner-occupant; and</text> </level> <level label="ii"> <text>provides sleeping and living facilities, meals, and assistance with daily activities for a rental fee to not more than 15 elderly individuals or individuals with disabilities.</text> </level> </level> </level> <level label="b"> <text>There is an Accessory, Shared, and Sheltered Housing Program.</text> </level> <level label="c"> <text>The Department shall operate the Accessory, Shared, and Sheltered Housing Program and make loans for rehabilitation costs for accessory, shared, and sheltered housing from the Special Loan Programs Fund under this subtitle.</text> </level> <level label="d"> <text>The terms for accessory, shared, and sheltered housing loans shall satisfy the requirements of § 4-916(b) of this subtitle.</text> </level> <level label="e"> <text>To qualify for an accessory housing loan, an applicant shall:</text> <level label="1"> <text>own the property for which the loan is made and agree to live in the property after the rehabilitation is completed; and</text> </level> <level label="2"> <level label="i"> <text>agree to use the loan proceeds to implement a rehabilitation project to provide an accessory dwelling for a family of limited income for a fixed minimum term that the Department determines; or</text> </level> <level label="ii"> <text>be a family of limited income when the loan is made and agree to use the loan proceeds to provide an accessory dwelling for a fixed minimum term that the Department determines.</text> </level> </level> </level> <level label="f"> <text>To qualify for a shared housing loan, an applicant shall:</text> <level label="1"> <text>be a family of limited income;</text> </level> <level label="2"> <text>own the property for which the loan is made and agree to live in the property after the rehabilitation is completed; and</text> </level> <level label="3"> <text>agree to use the loan proceeds to implement a rehabilitation project to provide shared housing or an accessory dwelling for a family of limited income.</text> </level> </level> <level label="g"> <text>To qualify for a sheltered housing loan, an applicant shall:</text> <level label="1"> <text>own the property for which the loan is made and agree to live in the property after the rehabilitation is completed;</text> </level> <level label="2"> <text>agree to provide shelter, meals, and assistance with daily activities to not more than 15 elderly individuals or individuals with disabilities who qualify as families of limited income; and</text> </level> <level label="3"> <text>demonstrate that the property will be certified by the appropriate governmental unit to provide sheltered care to elderly individuals or individuals with disabilities.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-927" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>There is an Indoor Plumbing Program.</text> </level> <level label="b"> <text>The Department shall:</text> <level label="1"> <text>operate the Indoor Plumbing Program; and</text> </level> <level label="2"> <text>make loans for rehabilitation projects that provide for adequate indoor plumbing from the Special Loan Programs Fund under this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <text>The terms for indoor plumbing loans shall meet the requirements of §§ 4-917 through 4-919 of this subtitle.</text> </level> <level label="2"> <text>The Department may forgive all or part of a deferred payment loan, if:</text> <level label="i"> <text>the loan is made to a family of limited income that owns and occupies the dwelling and whose income is within a lower income range established under § 4-916(b) of this subtitle; and</text> </level> <level label="ii"> <text>the Secretary determines that the family of limited income does not have enough income to repay the principal amount of the loan.</text> </level> </level> </level> <level label="d"> <text>To qualify for an indoor plumbing loan, an applicant shall:</text> <level label="1"> <text>own a building that is otherwise structurally sound, or for which the applicant provides a commitment from a lender to finance improvements needed to make the building structurally sound, and that:</text> <level label="i"> <text>has no or incomplete indoor plumbing or a failing septic system; and</text> </level> <level label="ii"> <text>needs indoor plumbing pipes, equipment, wells, septic tanks or other on-site sewer system, or a connection to a community water or sewer system;</text> </level> </level> <level label="2"> <text>live in the building and be a family of limited income, or rent at least two-thirds of the dwellings in the building to families of limited income; and</text> </level> <level label="3"> <text>submit to the Department a proposal for installing an adequate indoor plumbing system for water supply and sewage disposal, including any needed septic system, well, or connection to a community sewer or water system that meets the requirements of the Department of the Environment and every other governmental unit that has jurisdiction over the system.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-928" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Migratory labor camp” means one or more structures, buildings, tents, barracks, trailers, vehicles, mobile homes, converted buildings, or unconventional enclosures of living space that are established, operated, or used as living quarters for four or more migratory workers engaged in agricultural activities, including related food processing.</text> </level> <level label="ii"> <text>“Migratory labor camp” includes appurtenant land.</text> </level> </level> <level label="3"> <text>“Migratory Housing Program” means the Migratory Worker Housing Program.</text> </level> <level label="4"> <text>“Migratory worker” means an individual from within or outside the State who:</text> <level label="i"> <text>is not a year-round employee but moves seasonally from one place to another for work; and</text> </level> <level label="ii"> <text>during a period of work, occupies living quarters that are not the individual’s permanent home.</text> </level> </level> </level> <level label="b"> <text>There is a Migratory Worker Housing Program.</text> </level> <level label="c"> <text>The Department shall:</text> <level label="1"> <text>operate the Migratory Housing Program;</text> </level> <level label="2"> <text>make migratory worker housing loans from the Special Loan Programs Fund under this subtitle to a qualified owner of a migratory labor camp to make migratory worker housing safer and more healthful; and</text> </level> <level label="3"> <text>to the extent determined by the Secretary, administer the Migratory Housing Program in conjunction with any appropriate federal program.</text> </level> </level> <level label="d"> <text>To the extent applicable, migratory worker housing loans shall satisfy the requirements of § 4-916(b) of this subtitle.</text> </level> <level label="e"> <text>To qualify for a migratory housing loan, the owner of a migratory labor camp shall:</text> <level label="1"> <text>live or have a principal place of business in the State;</text> </level> <level label="2"> <text>have been denied a loan by a private lending institution or have received a commitment from a private lending institution for less than the amount of money required to finance the necessary health and safety improvements; and</text> </level> <level label="3"> <text>submit to the Department a plan for the necessary health and safety improvements that has been approved by the Department of the Environment.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-930" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>There is a Radon and Asbestos Abatement Pilot Program.</text> </level> <level label="b"> <text>The Department shall:</text> <level label="1"> <text>operate the Radon and Asbestos Abatement Pilot Program; and</text> </level> <level label="2"> <text>make loans for rehabilitation projects for radon and asbestos abatement.</text> </level> </level> <level label="c"> <text>The terms of loans shall meet the requirements under §§ 4-917 through 4-919 of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>To qualify for a loan, an applicant shall:</text> <level label="i"> <text>own a building in need of radon or asbestos abatement:</text> <level label="1"> <text>that is otherwise structurally sound; or</text> </level> <level label="2"> <text>for which the applicant provides a commitment from a lender to finance improvements to make the building structurally sound; and</text> </level> </level> <level label="ii"> <text>make a proposal to the Department for treatment that complies with the requirements and procedures of the Department of the Environment for radon or asbestos abatement.</text> </level> </level> <level label="2"> <text>In addition to the requirements in paragraph (1) of this subsection, the applicant shall:</text> <level label="i"> <text>live in the building and be a family of limited income;</text> </level> <level label="ii"> <text>agree to rent at least two-thirds of the dwellings in the building to families of limited income; or</text> </level> <level label="iii"> <text>agree to provide congregate or group housing or temporary shelters to families of limited income.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-931" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>In this section, “Grant Program” means the Accessible Homes for Senior Homeowners Grant Program.</text> </level> <level label="b"> <text>There is an Accessible Homes for Senior Homeowners Grant Program.</text> </level> <level label="c"> <text>The Department may make a grant to finance an accessibility–related renovation or repair activity for an elderly homeowner.</text> </level> <level label="d"> <text>The Department may establish standards to determine the eligibility of an applicant under the Grant Program.</text> </level> <level label="e"> <text>In determining whether to make a grant under the Grant Program, the Department shall require that an applicant submit evidence that the applicant cannot undertake the renovation and repairs without a grant.</text> </level> <level label="f"> <text>Grants under the Grant Program may be used in conjunction with other:</text> <level label="1"> <text>accessible housing for seniors loans; and</text> </level> <level label="2"> <text>special loan programs under this subtitle.</text> </level> </level> <level label="g"> <text>The Department may require that all or part of the grant under the Grant Program be repaid if conditions specified by the Department occur.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-933" title_number="4" title_name="Division of Development Finance" subtitle_number="9" subtitle_name="Maryland Housing Rehabilitation Program"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement of material fact, including an overstatement or understatement of financial condition, to influence the action of the Department on a grant or loan or an application for a grant or loan under this subtitle.</text> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.</text> </level> <level label="c"> <text>If a borrower violates this section, the Department may immediately accelerate the loan, whether or not a criminal prosecution has begun and regardless of the status of the prosecution.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1001" title_number="4" title_name="Division of Development Finance" subtitle_number="10" subtitle_name="Neighborhood Housing Services Fund"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Neighborhood Housing Services Fund.</text> </level> <level label="c"> <text>“Neighborhood corporation” means a neighborhood housing services corporation established in connection with the Neighborhood Reinvestment Corporation.</text> </level> <level label="d"> <level label="1"> <text>“Operating budget” means the money necessary to operate a neighborhood corporation, including money to pay:</text> <level label="i"> <text>administrative, technical, legal, or other expenses; and</text> </level> <level label="ii"> <text>expenses incurred by an umbrella corporation in operating programs.</text> </level> </level> <level label="2"> <text>“Operating budget” does not include money allocated to revolving or other loan funds.</text> </level> </level> <level label="e"> <text>“Program” means a program that a neighborhood corporation establishes and supervises to achieve its goals and to provide services within a specific neighborhood.</text> </level> <level label="f"> <text>“Umbrella corporation” means a neighborhood corporation that establishes and supervises at least two programs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1002" title_number="4" title_name="Division of Development Finance" subtitle_number="10" subtitle_name="Neighborhood Housing Services Fund"> <level label="a"> <text>There is a Neighborhood Housing Services Fund.</text> </level> <level label="b"> <text>The Department shall administer the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1003" title_number="4" title_name="Division of Development Finance" subtitle_number="10" subtitle_name="Neighborhood Housing Services Fund"> <text>The Department may adopt regulations to carry out this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1004" title_number="4" title_name="Division of Development Finance" subtitle_number="10" subtitle_name="Neighborhood Housing Services Fund"> <level label="a"> <text>To be eligible for a grant under this subtitle, a neighborhood corporation or umbrella corporation shall:</text> <level label="1"> <text>submit a timely application in the form that the Secretary prescribes;</text> </level> <level label="2"> <text>create a board of directors composed of:</text> <level label="i"> <text>a member of the General Assembly;</text> </level> <level label="ii"> <text>neighborhood residents;</text> </level> <level label="iii"> <text>representatives of local financial institutions; and</text> </level> <level label="iv"> <text>representatives of local political subdivisions, if not inconsistent with local law;</text> </level> </level> <level label="3"> <text>be authorized to establish and administer a revolving loan fund by lending money at flexible rates and terms to neighborhood homeowners who cannot obtain mortgage financing on reasonable terms through normal lending channels to preserve or revitalize neighborhoods and encourage homeownership; and</text> </level> <level label="4"> <text>be authorized to establish and administer, in cooperation with appropriate officials of the political subdivision, a housing program to bring neighborhood dwellings to acceptable levels of health and safety.</text> </level> </level> <level label="b"> <text>The Secretary or the Secretary’s designee shall be a voting member of each neighborhood corporation receiving grants from the Department.</text> </level> <level label="c"> <text>An application for a grant under subsection (a)(1) of this section shall contain:</text> <level label="1"> <text>a description of the boundaries of the area that the neighborhood corporation or Program serves;</text> </level> <level label="2"> <text>certification that the applicant is registered with the Neighborhood Reinvestment Corporation;</text> </level> <level label="3"> <text>certification of incorporation under State law;</text> </level> <level label="4"> <text>certification of receipt of a ruling from the Internal Revenue Service that the applicant is exempt from federal income taxation;</text> </level> <level label="5"> <text>certification that the portion of the applicant’s annual operating budget that will not be covered by the grant sought has been provided exclusively from political subdivisions or private sources; and</text> </level> <level label="6"> <text>any other information that the Secretary requires.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1005" title_number="4" title_name="Division of Development Finance" subtitle_number="10" subtitle_name="Neighborhood Housing Services Fund"> <level label="a"> <level label="1"> <text>Each eligible neighborhood corporation may apply for a grant in an amount up to $50,000 that does not exceed one-third of its annual operating budget.</text> </level> <level label="2"> <text>Each umbrella corporation may apply for a grant for each program under its supervision in an amount up to $50,000 that does not exceed one-third of the annual operating budget of the program.</text> </level> </level> <level label="b"> <text>If the amount requested by eligible applicants in a fiscal year exceeds the amount of the Fund, the Secretary shall reduce each grant pro rata so that the Fund amount appropriated for that fiscal year is not exceeded.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1101" title_number="4" title_name="Division of Development Finance" subtitle_number="11" subtitle_name="Operating Assistance Grants"> <level label="a"> <text>The Department shall award operating assistance grants to nonprofit organizations to increase their capacity to participate in housing projects and activities authorized by the programs that are financed through the Homeownership Programs Fund under § 4-502 of this title, the Rental Housing Programs Fund under § 4-504 of this title, the Special Loan Programs Fund under § 4-505 of this title, or otherwise financed totally or partly by the Department.</text> </level> <level label="b"> <text>To be eligible for an operating assistance grant under this section, a nonprofit organization must have limited expertise or no recent experience participating in projects or activities financed wholly or partly by the Department.</text> </level> <level label="c"> <text>A nonprofit organization may receive a grant or grants under this section for up to 3 years to increase its capacity to participate in each of the housing development areas of rental housing programs, homeownership programs, and special loan programs.</text> </level> <level label="d"> <text>A grant under this section may be for a term of up to 3 years if the Department finds that:</text> <level label="1"> <text>the performance of the nonprofit organization in the prior year was acceptable; and</text> </level> <level label="2"> <text>money is appropriated and available to pay the grant.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1102" title_number="4" title_name="Division of Development Finance" subtitle_number="11" subtitle_name="Operating Assistance Grants"> <level label="a"> <text>The Department shall award operating assistance grants to nonprofit organizations to further the production or rehabilitation of limited income housing by those organizations or by individuals they help.</text> </level> <level label="b"> <text>A nonprofit organization is eligible for a grant if it meets the performance and other standards that the Department sets and:</text> <level label="1"> <text>makes an application that:</text> <level label="i"> <text>describes the housing project;</text> </level> <level label="ii"> <text>includes evidence of acceptable performance in the prior year, if the nonprofit organization received a grant in the prior year; and</text> </level> <level label="iii"> <text>is acceptable to the Department;</text> </level> </level> <level label="2"> <text>has helped individuals to apply for loans from the Department; or</text> </level> <level label="3"> <text>was responsible for originating applications, as certified by a political subdivision approved by the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1103" title_number="4" title_name="Division of Development Finance" subtitle_number="11" subtitle_name="Operating Assistance Grants"> <text>A nonprofit organization may use an operating assistance grant for predevelopment, operating, and overhead costs, including:</text> <level label="1"> <text>staff costs;</text> </level> <level label="2"> <text>organizational costs; and</text> </level> <level label="3"> <text>for a grant under § 4-1102 of this subtitle, costs relating to applying for loans or helping individuals to apply for loans.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1104" title_number="4" title_name="Division of Development Finance" subtitle_number="11" subtitle_name="Operating Assistance Grants"> <level label="a"> <text>Operating assistance grants under this subtitle may not exceed the amounts that the Department sets.</text> </level> <level label="b"> <text>During a fiscal year, all operating assistance grants under this subtitle shall be made from:</text> <level label="1"> <text>up to 1% of the total amount of budgeted money in the Homeownership Programs Fund under § 4-502 of this title, the Rental Housing Programs Fund under § 4-504 of this title, and the Special Loan Programs Fund under § 4-505 of this title; and</text> </level> <level label="2"> <text>money appropriated from any other source.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1105" title_number="4" title_name="Division of Development Finance" subtitle_number="11" subtitle_name="Operating Assistance Grants"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1201" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Partnership Rental Housing Fund.</text> </level> <level label="c"> <text>“Household of lower income” means a household that qualifies under § 4-1206 of this subtitle.</text> </level> <level label="d"> <text>“Housing authority” means a housing authority authorized under Division II of this article.</text> </level> <level label="e"> <text>“Partnership project” means an undertaking that the Program finances to acquire, construct, reconstruct, renovate, or rehabilitate a building or improvement, or a part of a building or improvement.</text> </level> <level label="f"> <level label="1"> <text>“Partnership rental housing” means rental housing financed under this subtitle.</text> </level> <level label="2"> <text>“Partnership rental housing” includes apartments, condominium units, cooperatives, town houses, town homes, single room occupancy and shared living unit facilities, and single-family homes.</text> </level> </level> <level label="g"> <text>“Program” means the Partnership Rental Housing Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1202" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <text>The General Assembly finds that:</text> <level label="1"> <text>there is a shortage of decent, safe, and sanitary rental housing for households of lower income;</text> </level> <level label="2"> <text>the private sector often cannot develop, improve, operate, and maintain housing for households of lower income; and</text> </level> <level label="3"> <text>to address this shortage, a partnership is needed among the State, political subdivisions, housing authorities, the private sector, and households of lower income to develop, operate, and maintain housing for households of lower income.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1203" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <text>There is a Partnership Rental Housing Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1204" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <text>The purposes of the Program are to:</text> <level label="1"> <text>provide decent, safe, and sanitary rental housing for households of lower income;</text> </level> <level label="2"> <text>provide financial assistance to political subdivisions or housing authorities to acquire, construct, reconstruct, renovate, or rehabilitate rental housing affordable to households of lower income;</text> </level> <level label="3"> <text>stimulate the development and ownership of rental housing for households of lower income by political subdivisions, housing authorities, or partnerships that include political subdivisions or housing authorities;</text> </level> <level label="4"> <text>provide financial assistance to private sector entities to acquire, construct, reconstruct, renovate, or rehabilitate housing units:</text> <level label="i"> <text>for sale to political subdivisions, housing authorities, or partnerships that include political subdivisions or housing authorities, as affordable rental housing for households of lower income; or</text> </level> <level label="ii"> <text>for occupancy by households of lower income that include one or more individuals with disabilities or special needs;</text> </level> </level> <level label="5"> <text>promote affordable housing programs and increased contributions to the production of affordable rental housing by political subdivisions, housing authorities, and the private sector, including for profit and nonprofit entities;</text> </level> <level label="6"> <text>encourage households of lower income that live in partnership rental housing to contribute actively to the operation or maintenance of the housing or the community;</text> </level> <level label="7"> <text>finance rental housing that is:</text> <level label="i"> <text>to be occupied by households of lower income;</text> </level> <level label="ii"> <text>to be owned by political subdivisions or housing authorities or partnerships that include political subdivisions or housing authorities; and</text> </level> <level label="iii"> <text>expected to be financially self-sufficient, without further governmental financing for maintenance, renovation, or operating subsidies; and</text> </level> </level> <level label="8"> <text>encourage the private sector to provide rental housing for households of lower income that include one or more individuals with disabilities or special needs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1205" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>adopt policies and procedures that encourage partnership rental housing throughout the State; and</text> </level> <level label="3"> <text>adopt regulations to carry out the Program, including regulations that specify criteria for local contributions to the cost of partnership projects undertaken by a political subdivision or housing authority.</text> </level> </level> <level label="b"> <text>The Department may establish:</text> <level label="1"> <text>maximum limits for financing that it will provide to:</text> <level label="i"> <text>individual partnership rental housing units;</text> </level> <level label="ii"> <text>any one partnership project; or</text> </level> <level label="iii"> <text>any political subdivision or housing authority;</text> </level> </level> <level label="2"> <text>a process for approving financing for partnership projects that encourages a broad geographic distribution of money; and</text> </level> <level label="3"> <text>the time that a household may occupy the partnership rental housing after the annual income of the household exceeds the continuing occupancy income limits for households of lower income.</text> </level> </level> <level label="c"> <text>In administering the Program, the Department may make loans either directly or through the Administration.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1206" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <text>A household qualifies as a household of lower income:</text> <level label="1"> <text>for initial occupancy, if the gross annual income of the household does not exceed:</text> <level label="i"> <text>50% of the statewide median income for a household of like size; or</text> </level> <level label="ii"> <text>a lower income level that the Secretary establishes for a particular partnership project or for a unit of partnership rental housing to be occupied by one or more individuals with disabilities or special needs; and</text> </level> </level> <level label="2"> <text>for continuing occupancy, if the gross annual income for the household does not exceed the greater of:</text> <level label="i"> <text>an income level that the Secretary establishes; and</text> </level> <level label="ii"> <text>an applicable federal requirement.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1207" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <level label="a"> <text>Except as provided in subsection (c) of this section, the Department may approve an application for a proposed partnership project only if:</text> <level label="1"> <text>the application is authorized by the chief elected official of the political subdivision or, if there is no chief elected official, by the governing body of the political subdivision in which the project is located;</text> </level> <level label="2"> <text>the political subdivision or housing authority:</text> <level label="i"> <text>contributes from non–State sources the land for the partnership rental housing;</text> </level> <level label="ii"> <text>funds the part of the acquisition cost of the property that is attributable to the value of the land; or</text> </level> <level label="iii"> <text>makes a contribution under § 4–1208(d)(2) of this subtitle that equals or exceeds the value of the land;</text> </level> </level> <level label="3"> <text>the political subdivision or housing authority is to have an ownership interest in the partnership project or in the rental units financed by the Program and sold to the political subdivision or housing authority or to a partnership that includes the political subdivision or housing authority;</text> </level> <level label="4"> <text>the political subdivision or housing authority directly or indirectly manages the partnership project;</text> </level> <level label="5"> <text>the rental units financed by the Program are to be occupied on completion of the acquisition, construction, reconstruction, renovation, or rehabilitation by households of lower income;</text> </level> <level label="6"> <text>unless prohibited by any applicable federal requirement, the households of lower income occupying the partnership project or the part financed by the Program are required to contribute services to enhance or maintain the partnership project or the community in a way that the political subdivision or housing authority accepts; and</text> </level> <level label="7"> <text>it is reasonable to anticipate that:</text> <level label="i"> <text>more State subsidies will not be needed for long–term occupancy by households of lower income; and</text> </level> <level label="ii"> <text>rental income, including any contribution to allow for more affordable rents under § 4–1208(d) of this subtitle, will be enough to pay the operating costs of the partnership project and to build an adequate reserve for the long–term maintenance and renovation of the partnership project.</text> </level> </level> </level> <level label="b"> <text>The rental units financed by the Program may include, as among those that must be occupied by households of lower income, rental units restricted for occupancy to meet other federal or State occupancy requirements.</text> </level> <level label="c"> <text>The Department may approve the use of partnership rental housing funds for a unit of partnership rental housing that does not comply with each requirement set forth in subsection (a) of this section if:</text> <level label="1"> <text>the unit will be occupied by a household of lower income that includes one or more individuals with disabilities or special needs; and</text> </level> <level label="2"> <text>the project in which the unit is located complies with the requirements of the other State housing programs financing the project, if any.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1208" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <level label="a"> <text>A political subdivision, housing authority, or other eligible borrower may participate in the Program and do all things necessary or convenient to its participation, including:</text> <level label="1"> <text>developing, acquiring, improving, owning, operating, and managing rental housing;</text> </level> <level label="2"> <text>borrowing money; and</text> </level> <level label="3"> <text>mortgaging, pledging, and granting a security interest in real or personal property related to a particular partnership project.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (g) of this section, the Department may not require a borrower to repay money made available under the Program, unless the borrower:</text> <level label="1"> <text>sells the partnership project; or</text> </level> <level label="2"> <text>fails to operate the partnership project for the benefit of households of lower income in accordance with agreements between the Department and the political subdivision or housing authority.</text> </level> </level> <level label="c"> <text>The Department shall secure the obligations of the borrower by using a mortgage, deed of trust, or other security device that the Department accepts on the property or on revenues derived from the property.</text> </level> <level label="d"> <level label="1"> <text>To allow for more affordable rents, a political subdivision or housing authority may contribute local money, including locally administered federal money or federal rental assistance.</text> </level> <level label="2"> <text>The contributions of political subdivisions or housing authorities under § 4–1207(a)(2)(iii) of this subtitle may include the costs of:</text> <level label="i"> <text>necessary studies, surveys, tests, plans, and specifications;</text> </level> <level label="ii"> <text>architectural, design, engineering, and other special services;</text> </level> <level label="iii"> <text>site preparation;</text> </level> <level label="iv"> <text>indemnity and surety bonds and premiums on title and hazard insurance; and</text> </level> <level label="v"> <text>other costs of development.</text> </level> </level> </level> <level label="e"> <text>To participate in the Program and to receive loans, a political subdivision or housing authority may not be required to pledge its full faith and credit.</text> </level> <level label="f"> <text>For rental housing financed from the Fund and owned or managed by a housing authority, this subtitle supersedes:</text> <level label="1"> <text>§§ 12–401, 12–402, and 12–405 of this article; and</text> </level> <level label="2"> <text>all other restrictions on tenant income under Division II of this article.</text> </level> </level> <level label="g"> <text>If necessary to comply with, or receive the benefit of, federal or other financial assistance, funds provided under the Program may be made available as a deferred payment loan repayable on the later of:</text> <level label="1"> <text>the occurrence of one of the events set forth in subsection (b) of this section; or</text> </level> <level label="2"> <text>a maturity date set by the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1209" title_number="4" title_name="Division of Development Finance" subtitle_number="12" subtitle_name="Partnership Rental Housing Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be given to the Department in connection with the Program.</text> </level> <level label="2"> <text>A person may not knowingly make or cause to be made a false statement or report to influence the action of the Department in connection with the Program.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1301" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>In this subtitle, “Program” means the Radium Grant Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1302" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>There is a Radium Grant Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1303" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>The purpose of the Program is to provide financial assistance to residential well owners who incur the cost of adding a water treatment system to remove radium or gross alpha from well water.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1304" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>A county may participate in the Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1305" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <level label="a"> <text>A county that participates in the Program shall process grant applications and award grants to residential well owners in accordance with this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The Department may award a grant under the Program only to a residential well owner who resides in a county that participates in the Program.</text> </level> <level label="2"> <text>The Department shall award a grant equal to the grant awarded by the county.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1306" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>A residential well owner is eligible for a grant under this subtitle if the residential well owner:</text> <level label="1"> <text>tests a well and finds that it contains radium or gross alpha levels above the levels recommended by the federal Environmental Protection Agency;</text> </level> <level label="2"> <text>installs a water treatment system to remove excess levels of radium or gross alpha from well water; and</text> </level> <level label="3"> <text>does not earn more than 110% of the statewide or Washington, D.C. Metropolitan statistical area median income.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1307" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <level label="a"> <text>The Department shall establish for participating counties a sliding scale formula, based on income, under which residential well owners with lower incomes are eligible for larger grants and those with higher incomes are eligible for smaller grants.</text> </level> <level label="b"> <text>The combined county and State grants shall equal at least 10% but not more than 25% of the cost of the water treatment system that the residential well owner installs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1308" title_number="4" title_name="Division of Development Finance" subtitle_number="13" subtitle_name="Radium Grant Program"> <text>The Department may adopt regulations to carry out this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1401" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <text>In this subtitle, “programs” means rental assistance programs other than the Rental Allowance Program established under § 4–1403 of this subtitle and the Statewide Rental Assistance Voucher Program established under Subtitle 29 of this title.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1402" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <text>There are the Rental Allowance Program and other programs in the Department.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1403" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <level label="a"> <text>The Department shall administer the Rental Allowance Program to assist low–income households that are homeless or at risk of being homeless by providing housing assistance payments to or on behalf of eligible households.</text> </level> <level label="b"> <text>The Secretary shall establish:</text> <level label="1"> <text>income limits for eligibility of low–income households not exceeding 30% of the State or area median income, whichever is higher; and</text> </level> <level label="2"> <text>minimum standards for eligible dwelling units.</text> </level> </level> <level label="c"> <text>The Secretary shall establish the amount of payments made through the Rental Allowance Program, taking into account factors identified in § 4–1405(d) of this subtitle.</text> </level> <level label="d"> <text>Eligible uses of payments may include rent, security deposits, utilities, and other housing–related expenses.</text> </level> <level label="e"> <text>The Department may administer the Rental Allowance Program by providing monthly housing assistance payments to or on behalf of eligible households directly or through political subdivisions, their local housing agencies or departments, or nonprofit organizations.</text> </level> <level label="f"> <text>Funds appropriated to serve low–income households through the Rental Allowance Program may not be used for other programs authorized under this subtitle.</text> </level> <level label="g"> <text>The Department may adopt regulations to carry out the Rental Allowance Program, including time frames for assistance and other criteria the Secretary considers appropriate.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1404" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <text>The Department may establish and administer programs, including programs to assist households that:</text> <level label="1"> <text>are homeless or at risk of homelessness;</text> </level> <level label="2"> <text>include an individual with a disability or special need;</text> </level> <level label="3"> <text>have been displaced or otherwise impacted by disaster; or</text> </level> <level label="4"> <text>have a critical or emergency housing need.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1405" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <level label="a"> <text>The Department may administer the programs by providing monthly housing assistance payments to or on behalf of eligible households directly or through political subdivisions, their local housing agencies or departments, or nonprofit organizations.</text> </level> <level label="b"> <text>In establishing the programs, the Department shall consult with, as appropriate:</text> <level label="1"> <text>the Department of Human Services;</text> </level> <level label="2"> <text>the Department of Disabilities; or</text> </level> <level label="3"> <text>any other unit of State or local government.</text> </level> </level> <level label="c"> <text>The Secretary shall establish criteria for the programs, including:</text> <level label="1"> <text>income limits for eligibility of households;</text> </level> <level label="2"> <text>time frames for assistance;</text> </level> <level label="3"> <text>monthly assistance amounts;</text> </level> <level label="4"> <text>standards for eligible dwelling units, including types of units, inspection standards, and rent limits;</text> </level> <level label="5"> <text>eligible uses of assistance payments which may include security deposits, utilities, and other housing related expenses; and</text> </level> <level label="6"> <text>any other criteria the Secretary considers appropriate.</text> </level> </level> <level label="d"> <text>In establishing the program criteria, the Secretary may consider factors that include:</text> <level label="1"> <text>household size and expected average income;</text> </level> <level label="2"> <text>regional variations throughout the State;</text> </level> <level label="3"> <text>typical housing costs and expenses;</text> </level> <level label="4"> <text>relevant standards and definitions established for State and federal housing programs;</text> </level> <level label="5"> <text>housing needs of eligible households and the expected duration of the housing needs; and</text> </level> <level label="6"> <text>equitable distribution of funds statewide.</text> </level> </level> <level label="e"> <text>The Secretary may establish different criteria for different programs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1406" title_number="4" title_name="Division of Development Finance" subtitle_number="14" subtitle_name="Rental Assistance Programs"> <text>The Department may adopt regulations to carry out the programs.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1601" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Covered county” means:</text> <level label="1"> <text>a county that has adopted home rule powers under Article XI-F of the Maryland Constitution; or</text> </level> <level label="2"> <text>Anne Arundel County, Calvert County, Frederick County, Howard County, or Washington County.</text> </level> </level> <level label="c"> <text>“Family of low or moderate income” means a family or individual that a covered county determines cannot afford a price or rent sufficient to induce private enterprise in the covered county to build enough adequate, safe, and sanitary housing without the assistance of a program.</text> </level> <level label="d"> <text>“Program” means a residential mortgage program under this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1602" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>in many areas of covered counties, including areas that contain presently stable neighborhoods and middle class residential housing, families of low or moderate income cannot purchase, rehabilitate, or maintain decent, safe, and sanitary housing, and so do not have an opportunity for home ownership directly or through a condominium or cooperative;</text> </level> <level label="2"> <text>the inability of families of low or moderate income under item (1) of this subsection is the result of continuing increases in:</text> <level label="i"> <text>the cost of construction or rehabilitation;</text> </level> <level label="ii"> <text>county taxes;</text> </level> <level label="iii"> <text>heating and electricity expenses;</text> </level> <level label="iv"> <text>maintenance and repair expenses;</text> </level> <level label="v"> <text>inflation;</text> </level> <level label="vi"> <text>the cost of land;</text> </level> <level label="vii"> <text>the cost of energy conservation; and</text> </level> <level label="viii"> <text>borrowing costs, including interest;</text> </level> </level> <level label="3"> <text>the inability of families of low or moderate income to purchase and hold housing in covered counties results in the decline of new housing, the decay of existing housing and neighborhoods, and increased costs for welfare, police, and fire protection;</text> </level> <level label="4"> <text>the decline in new housing construction and the decay of existing housing have produced a critical shortage of adequate housing, harming the economy of covered counties and the well-being of residents;</text> </level> <level label="5"> <text>private enterprise cannot construct or rehabilitate adequate housing for families of low or moderate income without the assistance of a program; and</text> </level> <level label="6"> <text>forcing families of low or moderate income to live in substandard housing is undesirable because it decreases the interest of the families in their communities and the maintenance of their property and their neighborhoods.</text> </level> </level> <level label="b"> <text>The General Assembly finds that:</text> <level label="1"> <text>it will be hard for many residents in covered counties to find decent, safe, and sanitary housing unless housing is constructed or rehabilitated;</text> </level> <level label="2"> <text>unless the supply of housing and the ability of families of low or moderate income to get mortgage financing are increased significantly and expeditiously, many residents of covered counties may have to live in unsanitary, overcrowded, or unsafe conditions to the detriment of the health, welfare, and well-being of these individuals and of the whole community of which they are a part; and</text> </level> <level label="3"> <text>increasing the housing supply in covered counties and the ability of families of low or moderate income to get mortgage financing will:</text> <level label="i"> <text>help in the clearance, replanning, development of, and redevelopment of blighted areas;</text> </level> <level label="ii"> <text>reduce the critical shortage of adequate housing; and</text> </level> <level label="iii"> <text>greatly enhance the maintenance and use of existing housing and neighborhoods.</text> </level> </level> </level> <level label="c"> <text>The General Assembly finds that:</text> <level label="1"> <text>a major cause of the housing crisis is a lack of:</text> <level label="i"> <text>money that can be borrowed at a cost low enough to enable families of low or moderate income to afford to own and maintain decent, safe, and sanitary housing; and</text> </level> <level label="ii"> <text>money with which private mortgage lenders can finance housing; and</text> </level> </level> <level label="2"> <text>the lack of money has frustrated the maintenance, sale, and purchase of existing housing in covered counties.</text> </level> </level> <level label="d"> <text>The General Assembly finds that covered counties have a basic public interest in:</text> <level label="1"> <text>providing a supplemental source of single-family residential mortgage money for families of low or moderate income at a cost lower than otherwise prevailing for residential mortgages; and</text> </level> <level label="2"> <text>stimulating a steady flow of money for residential housing for families of low or moderate income and for low and middle class residential housing to help maintain:</text> <level label="i"> <text>a well-balanced society;</text> </level> <level label="ii"> <text>existing housing;</text> </level> <level label="iii"> <text>established neighborhoods; and</text> </level> <level label="iv"> <text>a sound tax base.</text> </level> </level> </level> <level label="e"> <text>The General Assembly finds that the power given by this subtitle and the spending of public money as needed to carry out a program serve a public purpose, and this subtitle is in the public interest.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1603" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <text>The purposes of this subtitle are to:</text> <level label="1"> <text>help remedy the conditions described in § 4-1602 of this subtitle;</text> </level> <level label="2"> <text>make residential mortgage loans available to families of low or moderate income at borrowing costs lower than those otherwise prevailing for residential mortgages;</text> </level> <level label="3"> <text>help reduce the shortage of adequate housing; and</text> </level> <level label="4"> <text>help maintain housing and neighborhoods.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1604" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>To accomplish the purpose of this subtitle and notwithstanding any other law, a covered county may borrow money by issuing revenue bonds, notes, or other evidences of obligation.</text> </level> <level label="b"> <text>Money under subsection (a) of this section shall be made available for residential mortgage loans to families of low or moderate income, only through mortgage lending institutions by:</text> <level label="1"> <text>forward commitment mortgage purchase;</text> </level> <level label="2"> <text>existing mortgage purchase;</text> </level> <level label="3"> <text>loans to lenders;</text> </level> <level label="4"> <text>revolving mortgage fund; or</text> </level> <level label="5"> <text>any other means that the legislative body of the covered county considers appropriate.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1605" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <text>A covered county may collect from borrowers in a program the charges that the legislative body of the covered county considers proper for:</text> <level label="1"> <text>loan processing;</text> </level> <level label="2"> <text>loan administration;</text> </level> <level label="3"> <text>mortgage insurance; and</text> </level> <level label="4"> <text>other costs and expenses of the program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1606" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>The legislative body of a covered county that undertakes a program shall adopt an ordinance or resolution that specifies:</text> <level label="1"> <text>the proposed program;</text> </level> <level label="2"> <text>the amount of bonds to be issued;</text> </level> <level label="3"> <text>the interest rate or rates that the bonds will bear or the method to determine the rate or rates; and</text> </level> <level label="4"> <text>other provisions consistent with this subtitle that the legislative body considers appropriate to finance mortgage loans.</text> </level> </level> <level label="b"> <text>An ordinance or resolution that authorizes the issuance of bonds shall include findings about:</text> <level label="1"> <text>the appropriate ranges of income of families of low or moderate income;</text> </level> <level label="2"> <text>the need for the financing that is allowed under this subtitle;</text> </level> <level label="3"> <text>the types of housing available and needed in the covered county; and</text> </level> <level label="4"> <text>other factors that the legislative body of the covered county finds appropriate to establish a program.</text> </level> </level> <level label="c"> <text>A finding by the legislative body of a covered county about the qualification of an individual or family as a family of low or moderate income, or about any other matter connected with a program is conclusive in a suit, action, or proceeding that involves the validity or enforceability of a bond issued under this subtitle or the security for the bond.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1607" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>The legislative body of a covered county that issues bonds under this subtitle shall determine:</text> <level label="1"> <text>the time or times when interest is to be paid on the bonds;</text> </level> <level label="2"> <text>the time or times when the bonds are to be executed, issued, and delivered;</text> </level> <level label="3"> <text>the form, denomination, and tenor of the bonds;</text> </level> <level label="4"> <text>the time or times when the principal of the bonds is to be paid, which may not be more than 40 years after the bonds are issued; and</text> </level> <level label="5"> <text>the place or places where the bonds are to be paid.</text> </level> </level> <level label="b"> <text>The bonds may be secured by:</text> <level label="1"> <text>a pledge of mortgages or notes secured by deeds of trust on any type of interest in real or other property, including the real property or other interests held by stock cooperatives or condominiums and their unit owners;</text> </level> <level label="2"> <text>servicing agreements;</text> </level> <level label="3"> <text>condemnation proceeds;</text> </level> <level label="4"> <text>private, governmental, or other mortgage insurance proceeds;</text> </level> <level label="5"> <text>casualty or special hazard insurance proceeds; or</text> </level> <level label="6"> <text>any other security that the legislative body of the covered county finds appropriate.</text> </level> </level> <level label="c"> <text>The bonds may provide that, at the option of the covered county, the bonds or any one of them may be called for redemption before maturity, at a price and under the terms and conditions that the legislative body of the covered county fixed before issuing the bonds.</text> </level> <level label="d"> <text>The following are exempt at all times from taxation of every kind and nature whatsoever by the State or a county:</text> <level label="1"> <text>the principal of a bond;</text> </level> <level label="2"> <text>the transfer of, interest payable on, or income derived from a bond; and</text> </level> <level label="3"> <text>profit made by the sale or transfer of a bond.</text> </level> </level> <level label="e"> <text>A bond issued under this subtitle is a negotiable instrument.</text> </level> <level label="f"> <text>A covered county may:</text> <level label="1"> <text>issue its bonds in coupon form; or</text> </level> <level label="2"> <text>provide for registration of the bonds as to principal alone or principal and interest.</text> </level> </level> <level label="g"> <level label="1"> <text>The bonds shall be signed by a commissioner or other chief executive officer of the covered county.</text> </level> <level label="2"> <text>The seal of the covered county shall be affixed to the bond and attested to by the clerk or the officer exercising the functions of a clerk.</text> </level> <level label="3"> <text>An officer’s signature or countersignature that appears on bonds or coupons is valid even if the officer leaves office before delivery of the bonds.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1608" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <level label="1"> <text>The bonds shall be sold at public or private sale on the terms that the legislative body of the covered county sets.</text> </level> <level label="2"> <text>The bonds are not subject to §§ 19–205 and 19–206 of the Local Government Article.</text> </level> </level> <level label="b"> <level label="1"> <text>The bonds and the interest on them shall be limited obligations of the covered county.</text> </level> <level label="2"> <text>The principal and interest on the bonds shall be payable only from:</text> <level label="i"> <text>the revenue derived from:</text> <level label="1"> <text>interest;</text> </level> <level label="2"> <text>mortgage insurance;</text> </level> <level label="3"> <text>casualty or special hazard insurance or other insurance proceeds; or</text> </level> <level label="4"> <text>condemnation proceeds;</text> </level> </level> <level label="ii"> <text>other revenue derived from mortgage loans or property securing the loans; or</text> </level> <level label="iii"> <text>other payments or revenues derived from or relating to the making of the loans.</text> </level> </level> <level label="3"> <text>The bonds or coupons issued under this subtitle:</text> <level label="i"> <text>are not an indebtedness or a charge against the general credit or taxing powers of the issuing county within the meaning of a constitution, county code provision, or statutory limit; and</text> </level> <level label="ii"> <text>are not and do not give rise to a monetary liability of the issuing county.</text> </level> </level> <level label="4"> <text>On the advice of counsel, the face of each bond may plainly state that the bond was issued under this subtitle and is not an indebtedness to which the faith and credit of the county is pledged.</text> </level> </level> <level label="c"> <text>Money received from bonds issued under this subtitle shall be applied solely:</text> <level label="1"> <text>to make money available through mortgage lending institutions only for residential mortgage loans to families of low or moderate income;</text> </level> <level label="2"> <text>to establish reserves;</text> </level> <level label="3"> <text>to pay the necessary expenses of financing; or</text> </level> <level label="4"> <text>to advance the payment of interest on the bonds during the first 3 years after the date of the bonds.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1609" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>A covered county may issue new bonds to pay outstanding bonds in accordance with procedures of this subtitle and § 19–207 of the Local Government Article.</text> </level> <level label="b"> <text>New bonds shall be secured to the same extent and shall have the same source of payment as the bonds refunded.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1610" title_number="4" title_name="Division of Development Finance" subtitle_number="16" subtitle_name="Residential Mortgage Programs for Certain Counties"> <level label="a"> <text>A program may provide for loan agreements, security agreements, loan servicing agreements, forms of mortgages, notes and deeds of trust, and other security, documents, agreements, provisions, and other matters as the covered county may find appropriate to implement the financing of the program.</text> </level> <level label="b"> <text>A transaction under this subtitle is not a capital project within the meaning of a charter or statutory provision.</text> </level> <level label="c"> <text>A transaction under this subtitle shall be authorized by ordinance or resolution without a referendum or other procedure not applicable to all ordinances or resolutions enacted in the covered county.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1701" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Family of limited income” means a family or individual that qualifies under § 4-1706 of this subtitle.</text> </level> <level label="c"> <text>“Owner-builder” means an individual or family that provides all, or a substantial amount, as the Department determines, of the labor to build a dwelling that will be the principal residence of the individual or family.</text> </level> <level label="d"> <text>“Program” means the Self-Help Homeownership Technical Assistance Program.</text> </level> <level label="e"> <text>“Project” means six or more dwellings near one another that are built or rehabilitated by owner-builders or self-help rehabilitators who use self-help methods and work as a team on each other’s dwellings.</text> </level> <level label="f"> <text>“Self-help rehabilitator” means an individual or family that provides all, or a substantial amount, as the Department determines, of the labor to rehabilitate, renovate, or improve the principal residence of the individual or family.</text> </level> <level label="g"> <text>“Technical assistance grant” means a grant under the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1702" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>The General Assembly finds that:</text> <level label="1"> <text>homeownership is a stabilizing factor for communities and families and is the best way for families of limited income to build equity and move out of poverty;</text> </level> <level label="2"> <text>homeownership has become less affordable over time because incomes have not kept pace with the rising costs of homeownership;</text> </level> <level label="3"> <text>self-help housing helps families of limited income to become homeowners, increasing their financial stability;</text> </level> <level label="4"> <text>families working together in groups to build their homes help to create stronger communities; and</text> </level> <level label="5"> <text>there have been three successful federally financed self-help programs in the State, and modeling a State self-help ownership program on a well-tested federal program will increase homeownership opportunities for families of limited income across the State.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1703" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>There is a Self-Help Homeownership Technical Assistance Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1704" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>The purpose of the Program is to make technical assistance grants to expand:</text> <level label="1"> <text>the production of decent and affordable housing for families of limited income through self-help in rehabilitation and construction;</text> </level> <level label="2"> <text>homeownership opportunities for those who would not have these opportunities without the cost savings achieved by self-help; and</text> </level> <level label="3"> <text>self-reliance, pride of ownership, and sense of community for participants.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1705" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>establish guidelines to determine eligibility of applicants for technical assistance grants; and</text> </level> <level label="3"> <text>adopt regulations to carry out the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1706" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <level label="a"> <text>A family or individual qualifies as a family of limited income if the income of the family or individual does not exceed the upper income limit that the Secretary establishes.</text> </level> <level label="b"> <text>Factors that the Secretary shall consider in setting the upper income limit under subsection (a) of this section include:</text> <level label="1"> <text>the total amount of family or individual income deemed available for housing;</text> </level> <level label="2"> <text>the size of the family;</text> </level> <level label="3"> <text>the ability of the family or individual to compete successfully in the private housing market;</text> </level> <level label="4"> <text>the cost and condition of available housing; and</text> </level> <level label="5"> <text>standards and definitions under related federal and State housing programs.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1707" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>The Department may establish standards to determine eligibility for a technical assistance grant, which may include:</text> <level label="1"> <text>the number of families of limited income that the requested grant will serve;</text> </level> <level label="2"> <text>the extent to which the applicant will use federal, State, and local programs and resources in the project;</text> </level> <level label="3"> <text>the organizational ability of the applicant to carry out the project;</text> </level> <level label="4"> <text>the feasibility of the project;</text> </level> <level label="5"> <text>the cost in self–help housing fund money per unit of the project; and</text> </level> <level label="6"> <text>the extent to which project participants will use self–help labor.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1708" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <level label="a"> <text>The Department may award a technical assistance grant to a political subdivision or nonprofit organization to help families of limited income that are owner–builders or self–help rehabilitators.</text> </level> <level label="b"> <text>A technical assistance grant under this section shall be used to:</text> <level label="1"> <text>help, train, and supervise owner–builders and self–help rehabilitators in self–help construction activities and techniques;</text> </level> <level label="2"> <text>help in project development, including:</text> <level label="i"> <text>preparing plans for self–help housing;</text> </level> <level label="ii"> <text>preparing contracts for professional services;</text> </level> <level label="iii"> <text>applying for financing;</text> </level> <level label="iv"> <text>packaging applications for assistance;</text> </level> <level label="v"> <text>preparing subdivision maps;</text> </level> <level label="vi"> <text>reviewing engineering plans and specifications for construction and rehabilitation projects; and</text> </level> <level label="vii"> <text>complying with the requirements of political subdivisions and funding entities; and</text> </level> </level> <level label="3"> <text>pay the administrative costs of providing technical assistance for the activity that the Department finances.</text> </level> </level> <level label="c"> <text>A technical assistance grant may not be:</text> <level label="1"> <text>used to purchase land, materials, tools, or construction equipment or to pay for construction costs; or</text> </level> <level label="2"> <text>awarded for a project of fewer than six dwellings.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1709" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <text>The Department may award a technical assistance grant to a political subdivision, public entity, or nonprofit organization to provide owner–builders and self–help rehabilitators with information and technical assistance about any topic that the Department finds will further the purpose of the Program, including:</text> <level label="1"> <text>cost savings by owner–builders in constructing a principal residence and by self–help rehabilitators in rehabilitating, renovating, or improving a principal residence;</text> </level> <level label="2"> <text>construction materials and methods;</text> </level> <level label="3"> <text>local material sources;</text> </level> <level label="4"> <text>local technical resources;</text> </level> <level label="5"> <text>financing requirements and opportunities;</text> </level> <level label="6"> <text>site acquisition;</text> </level> <level label="7"> <text>insurance and legal requirements;</text> </level> <level label="8"> <text>building and housing codes and standards; and</text> </level> <level label="9"> <text>other available housing alternatives.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1710" title_number="4" title_name="Division of Development Finance" subtitle_number="17" subtitle_name="Self-Help Homeownership Technical Assistance Program"> <level label="a"> <text>The Department may award a technical assistance grant only if the applicant agrees to:</text> <level label="1"> <text>a budget that states the types and amounts of expenditures that may be made with the grant;</text> </level> <level label="2"> <text>the manner, timing, and conditions for disbursement of money to the grantee;</text> </level> <level label="3"> <text>a timetable to complete each stage of the project and for final project completion; and</text> </level> <level label="4"> <text>terms to ensure compliance with regulations, special conditions imposed by grant approval, and any other terms or conditions that the Department specifies.</text> </level> </level> <level label="b"> <text>The amount of a technical assistance grant may not exceed 20% of the average purchase price, over the last 3 fiscal years for which data are available, of a home:</text> <level label="1"> <text>financed by a mortgage loan that the Administration purchased under § 4–239 of this title; and</text> </level> <level label="2"> <text>located in the region where the technical assistance grant is to be awarded.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a technical assistance grant recipient shall complete the project within 2 years after the effective date of the grant.</text> </level> <level label="2"> <text>The Department may extend the term of a technical assistance grant because of delays beyond the reasonable control of the recipient.</text> </level> </level> <level label="d"> <text>The Department may require that all or part of a technical assistance grant be repaid when conditions that the Department specifies occur.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1801" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affordable” means that housing costs do not exceed 30% of a household’s income.</text> </level> <level label="c"> <text>“Area median income” means the median household income for the area adjusted for household size as published and annually updated by the United States Department of Housing and Urban Development.</text> </level> <level label="d"> <text>“Development costs” means costs related to acquisition, site clearance and preparation, relocation, construction, renovation, financing, refinancing, engineering, or architectural plans.</text> </level> <level label="e"> <text>“Fund” means the Workforce Housing Fund.</text> </level> <level label="f"> <text>“Household of low or moderate income” means a household that a qualifying local government determines cannot afford a sales price or rent sufficient to induce private enterprise in the area of the qualifying local government to develop enough adequate and safe housing without the assistance of a program.</text> </level> <level label="g"> <text>“Housing costs” means:</text> <level label="1"> <text>rent for a rental housing unit; or</text> </level> <level label="2"> <text>mortgage principal and interest, real property taxes, and insurance for a housing unit that is for sale.</text> </level> </level> <level label="h"> <text>“Net proceeds of transfer” means all amounts paid to the original buyer or obligations of the original buyer assumed by a purchaser of a workforce housing unit minus:</text> <level label="1"> <text>reasonable costs paid by the original buyer;</text> </level> <level label="2"> <text>the combined amount of Program funds and qualifying local government matching funds used to develop the workforce housing unit; and</text> </level> <level label="3"> <text>other liens as permitted by regulation by the Department.</text> </level> </level> <level label="i"> <text>“Priority funding area” has the meaning stated in § 5–7B–02 of the State Finance and Procurement Article.</text> </level> <level label="j"> <text>“Program” means the Workforce Housing Grant Program.</text> </level> <level label="k"> <text>“Qualifying local government” means a county or municipal corporation that qualifies for participation in the Program under § 4–1803 of this subtitle.</text> </level> <level label="l"> <text>“Workforce housing” means:</text> <level label="1"> <text>rental housing that is affordable for a household with an aggregate annual income between 50% and 100% of the area median income; or</text> </level> <level label="2"> <text>homeownership housing that:</text> <level label="i"> <text>except as provided in item (ii) of this item, is affordable to a household with an aggregate annual income between 60% and 120% of the area median income; or</text> </level> <level label="ii"> <text>in target areas that are recognized by the Secretary for purposes of administering the Maryland Mortgage Program, is affordable to a household with an aggregate annual income between 60% and 150% of the area median income.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1802" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>There is a Workforce Housing Grant Program.</text> </level> <level label="b"> <text>The Program provides flexible funds to qualifying local governments for workforce housing programs, including programs that finance development costs.</text> </level> <level label="c"> <text>The Program shall be operated with money in the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1803" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>A local government qualifies for participation in the Program if:</text> <level label="1"> <text>the local government has:</text> <level label="i"> <text>a 5–year consolidated plan approved by the United States Department of Housing and Urban Development; or</text> </level> <level label="ii"> <text>a comprehensive plan;</text> </level> </level> <level label="2"> <text>the plans listed in item (1) of this subsection:</text> <level label="i"> <text>have a workforce housing element;</text> </level> <level label="ii"> <text>assess workforce housing needs; and</text> </level> <level label="iii"> <text>contain goals, objectives, and policies to preserve or develop workforce housing; and</text> </level> </level> <level label="3"> <text>the local government provides a statement to the Department indicating:</text> <level label="i"> <text>a desire to participate in the Program; and</text> </level> <level label="ii"> <text>a reasonable expectation of the local government’s ability to provide the matching funds required under § 4–1804 of this subtitle.</text> </level> </level> </level> <level label="b"> <text>The workforce housing element in the 5–year consolidated plan or the comprehensive plan of a qualifying local government may include:</text> <level label="1"> <text>preservation and renovation of existing housing stock;</text> </level> <level label="2"> <text>redevelopment of existing residential areas;</text> </level> <level label="3"> <text>streamlined regulatory processes and reduced regulatory fees for construction or renovation;</text> </level> <level label="4"> <text>financial incentives for construction and renovation including local property tax credits;</text> </level> <level label="5"> <text>special zoning regulations for construction and renovation including inclusionary zoning;</text> </level> <level label="6"> <text>efforts to preserve workforce housing stock for subsequent first–time homebuyers and renters;</text> </level> <level label="7"> <text>coordination with neighboring jurisdictions;</text> </level> <level label="8"> <text>coordination with private sector employers; and</text> </level> <level label="9"> <text>leveraging of federal financial assistance.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1804" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>A qualifying local government shall provide a dollar–for–dollar match for Program funds used to develop workforce housing units under this subtitle.</text> </level> <level label="b"> <text>In determining whether a local government has met the match requirement under subsection (a) of this section, the Department may consider the local government’s:</text> <level label="1"> <text>costs to administer a program under this subtitle; and</text> </level> <level label="2"> <text>financial commitments to other affordable or workforce housing initiatives.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1805" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>The Department shall proportionately distribute the annual appropriation of Program funds as follows:</text> <level label="1"> <text>if a county is a qualifying local government, and no municipal corporation in the county is a qualifying local government, the Department shall distribute Program funds to the county based on the county’s share of the State population;</text> </level> <level label="2"> <text>if a county is a qualifying local government, and a municipal corporation in the county is also a qualifying local government, the Department shall:</text> <level label="i"> <text>determine the county’s proportionate share of Program funds based on the county’s share of the State population; and</text> </level> <level label="ii"> <text>from the amount of Program funds determined under item (i) of this item, distribute:</text> <level label="1"> <text>to each qualifying local government in the county that is a municipal corporation, an amount of Program funds based on the municipal corporation’s share of the county population; and</text> </level> <level label="2"> <text>to the county, the balance of the county’s share of Program funds; or</text> </level> </level> </level> <level label="3"> <text>if a county is not a qualifying local government, but a municipal corporation in the county is a qualifying local government, the Department shall:</text> <level label="i"> <text>determine the county’s proportionate share of Program funds based on the county’s share of the State population; and</text> </level> <level label="ii"> <text>distribute to each qualifying local government in the county that is a municipal corporation, a proportionate share of the amount of Program funds determined under item (i) of this item based on the municipal corporation’s share of the county’s population.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1806" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>Before drawing down any Program funds, a qualifying local government shall:</text> <level label="1"> <text>provide evidence satisfactory to the Department that the Program funds will be matched by the qualifying local government on a dollar-for-dollar basis; and</text> </level> <level label="2"> <text>meet other Program criteria adopted by the Secretary.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1807" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>The Department shall redistribute among qualifying local governments the Program funds that have not been drawn down by other local governments within a 2–year period.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1808" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>A qualifying local government shall use Program funds for development costs associated with a workforce housing development located in a priority funding area in accordance with the 5–year consolidated plan or comprehensive plan of the qualifying local government.</text> </level> <level label="b"> <text>A qualifying local government may request that its program funds or match be expended by the Department through the Department’s existing housing programs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1809" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>With the consent of the Department, in appropriate circumstances, a qualifying local government may extend the income eligibility limits for a workforce housing unit developed with Program funds to include a household of low or moderate income.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1810" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>The Secretary shall establish annually the maximum amount of Program funds that a qualifying local government may use to develop a workforce housing unit.</text> </level> <level label="b"> <text>The per unit maximum established by the Secretary shall take into account the regional average construction costs applicable to the qualifying local government for a comparable workforce housing unit.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1811" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <level label="a"> <text>Rental units developed under this subtitle shall remain affordable as workforce housing for a period of at least 25 years.</text> </level> <level label="b"> <text>If an original buyer of a homeownership workforce housing unit developed through the Program transfers title to the unit at any time, the original buyer shall pay to the Department 100% of the combined amount of Program funds and qualifying local government matching funds used to develop the unit.</text> </level> <level label="c"> <text>If an original buyer of a homeownership workforce housing unit developed through the Program transfers title to the unit:</text> <level label="1"> <text>within 5 years of the date of purchase, the original buyer shall pay the lesser of 20% of the net proceeds of transfer to the Department or a 5% annual return on the Program funds provided for the unit;</text> </level> <level label="2"> <text>during the period that is more than 5 years but less than 15 years from the date of purchase, the original buyer shall pay to the Department the lesser of a percentage of the net proceeds of transfer that begins at 20% and declines by 2% for each subsequent year of ownership or a 5% annual return on the Program funds provided for the unit; and</text> </level> <level label="3"> <text>during the period that is 15 years or more from the date of purchase, the original buyer is not required to pay any portion of the net proceeds of transfer to the Department.</text> </level> </level> <level label="d"> <text>The Department shall distribute to the qualifying local government:</text> <level label="1"> <text>of the funds paid by the original buyer to the Department under subsection (b) of this section, an amount equal to the matching funds provided by the qualifying local government for the homeownership workforce housing unit; and</text> </level> <level label="2"> <text>of the funds paid by the original buyer to the Department under subsection (c) of this section, a proportionate share based on the amount of matching funds provided by the qualifying local government for the homeownership workforce housing unit.</text> </level> </level> <level label="e"> <text>The Department and the qualifying local governments shall use the funds received under this section to develop workforce housing under the Program.</text> </level> <level label="f"> <text>The contract of sale to the original buyer shall disclose all the requirements for repayment to the Department under this section in the event of a transfer of title, including the combined amount of Program funds and qualifying local government matching funds.</text> </level> <level label="g"> <level label="1"> <text>The amounts owed to the Department in the event of a transfer of title of a homeownership workforce housing unit under this section shall be secured by a recorded lien on the homeownership workforce housing unit.</text> </level> <level label="2"> <text>The lien created under this subsection may be a subordinate lien.</text> </level> <level label="3"> <text>The Department may charge a fee for servicing a lien created under this subsection.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1812" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>A qualifying local government shall report annually to the Department on or before January 1 of each year on the use of Program funds.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1813" title_number="4" title_name="Division of Development Finance" subtitle_number="18" subtitle_name="Workforce Housing Grant Program"> <text>The Secretary shall adopt regulations to carry out the purposes of the Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1901" title_number="4" title_name="Division of Development Finance" subtitle_number="19" subtitle_name="Disaster Relief Housing Program"> <text>There is a Disaster Relief Housing Program within the Department of Housing and Community Development.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1902" title_number="4" title_name="Division of Development Finance" subtitle_number="19" subtitle_name="Disaster Relief Housing Program"> <level label="a"> <text>The purpose of the Program is to provide financial assistance in an area covered by a state of emergency declared under § 14–107 of the Public Safety Article or in a federally declared disaster area to rehabilitate or replace a primary residence to:</text> <level label="1"> <text>a family whose primary residence was damaged or destroyed by the disaster; and</text> </level> <level label="2"> <text>a nonprofit entity that assists a family in rehabilitating and replacing a primary residence destroyed by the disaster.</text> </level> </level> <level label="b"> <text>The Department may continue to provide financial assistance under this subtitle after the expiration of a state of emergency declared under § 14–107 of the Public Safety Article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1903" title_number="4" title_name="Division of Development Finance" subtitle_number="19" subtitle_name="Disaster Relief Housing Program"> <level label="a"> <text>The Department may provide financial assistance under the Program utilizing funds from:</text> <level label="1"> <text>any fund or program under Division I of this article; or</text> </level> <level label="2"> <text>any other source of funds available to the Department.</text> </level> </level> <level label="b"> <text>The Department may provide any type of financial assistance permitted by Division I of this article to recipients under the Program.</text> </level> <level label="c"> <text>In addition to the type of financial assistance allowed under subsection (b) of this section, the Department may provide financial assistance under a buy–down program that reduces the amount a borrower pays on a loan obtained from the private market or from the Department for a defined period of time.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1904" title_number="4" title_name="Division of Development Finance" subtitle_number="19" subtitle_name="Disaster Relief Housing Program"> <level label="a"> <level label="1"> <text>The Secretary shall adopt regulations, guidelines, and eligibility requirements for implementing the Program.</text> </level> <level label="2"> <text>The guidelines and eligibility requirements may be different for each disaster.</text> </level> </level> <level label="b"> <text>The Secretary shall establish income limits for the Program in connection with each disaster.</text> </level> <level label="c"> <text>The eligibility requirements of any State fund or program from which funds are utilized for providing financial assistance, including maximum income limits, may not apply to financial assistance provided to recipients under the Program.</text> </level> <level label="d"> <text>Repayments of financial assistance under the Program shall be paid to the source of funds that was used to provide the financial assistance.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-1905" title_number="4" title_name="Division of Development Finance" subtitle_number="19" subtitle_name="Disaster Relief Housing Program"> <level label="a"> <text>The Department shall issue to the General Assembly, in accordance with § 2–1257 of the State Government Article:</text> <level label="1"> <text>a preliminary report 6 months after the Program is initially activated for each disaster; and</text> </level> <level label="2"> <text>a final report on or before 18 months after the Program is initially activated for each disaster.</text> </level> </level> <level label="b"> <text>The reports shall include:</text> <level label="1"> <text>the amount and type of assistance provided;</text> </level> <level label="2"> <text>the counties in which the assistance was provided; and</text> </level> <level label="3"> <text>the names of any financial institutions that provided assistance under the Program.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2001" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Energy–Efficient Homes Construction Fund.</text> </level> <level label="c"> <text>“Low–energy home” means a home that achieves a Home Energy Rating System (HERS) Index rating:</text> <level label="1"> <text>of 50 or lower; or</text> </level> <level label="2"> <text>as determined by the Department in regulations.</text> </level> </level> <level label="d"> <text>“Net–zero home” means a home that is designed to produce an amount of energy in 1 year that is equal to the amount of energy that the home uses in 1 year.</text> </level> <level label="e"> <text>“Program” means the Energy–Efficient Homes Construction Loan Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2002" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <text>There is an Energy–Efficient Homes Construction Loan Program.</text> </level> <level label="b"> <text>The purpose of the Program is to provide construction loans to persons to construct low–energy homes and net–zero homes.</text> </level> <level label="c"> <text>The Program shall be operated with money in the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2003" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>administer the Program;</text> </level> <level label="2"> <text>attach to a Program loan the terms needed to carry out the Program;</text> </level> <level label="3"> <text>establish eligibility standards for Program loans;</text> </level> <level label="4"> <text>establish interest rates that may be as low as 0% or as high as is reasonable to make the project viable; and</text> </level> <level label="5"> <text>adopt regulations to carry out the Program, including regulations designed to increase participation of minority business enterprises in the Program.</text> </level> </level> <level label="b"> <text>In setting the terms and interest rates for Program loans, the Department may:</text> <level label="1"> <text>offer preferred interest rates and terms for loans used to finance net–zero homes; and</text> </level> <level label="2"> <text>establish different interest rates based on the projected energy efficiency of the home to be constructed.</text> </level> </level> <level label="c"> <text>The Department may:</text> <level label="1"> <text>contract for services related to the Program;</text> </level> <level label="2"> <text>contract with private mortgage servicers to perform on behalf of the Department functions the servicers ordinarily perform, including foreclosure and employment of counsel;</text> </level> <level label="3"> <text>charge a nonrefundable application fee and other customary loan fees;</text> </level> <level label="4"> <text>enter into agreements with lenders or other entities to provide credit enhancement or collectively lend money for the construction of net–zero and low–energy homes;</text> </level> <level label="5"> <text>purchase or commit to purchase from mortgage lenders notes or mortgages that meet the requirements of this subtitle, any regulations adopted under this subtitle, and appropriate Program directives;</text> </level> <level label="6"> <text>modify the interest rate, the time or amount of payment, or any other term of a Program loan to facilitate repayment of the Program loan and to achieve the purpose of the Program; and</text> </level> <level label="7"> <text>without approval or execution by the Board of Public Works:</text> <level label="i"> <text>assign a mortgage for value;</text> </level> <level label="ii"> <text>release a mortgage;</text> </level> <level label="iii"> <text>foreclose a mortgage;</text> </level> <level label="iv"> <text>acquire property that secures a loan in default; and</text> </level> <level label="v"> <text>encumber, sell, or otherwise dispose of property acquired in connection with a loan in default.</text> </level> </level> </level> <level label="d"> <text>On or before January 1 each year, the Department shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on regulations adopted under subsection (a)(5) of this section to increase participation of minority businesses in the Program and the outcome of that effort.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2004" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <text>Proceeds of a Program loan shall be used only for:</text> <level label="1"> <text>property acquisition and development costs for the construction of a net–zero home or low–energy home; and</text> </level> <level label="2"> <text>settlement and closing costs.</text> </level> </level> <level label="b"> <text>A Program loan shall be secured by a mortgage lien that:</text> <level label="1"> <text>may be subordinate to other mortgage liens; and</text> </level> <level label="2"> <text>may include terms, including deferred payment of principal and interest, that the Department considers necessary to make the project viable.</text> </level> </level> <level label="c"> <text>To apply for a loan under this subtitle, an applicant shall submit:</text> <level label="1"> <text>a completed application in a form that the Department requires;</text> </level> <level label="2"> <text>information on projected energy usage, project design, and marketing data; and</text> </level> <level label="3"> <text>any other information or documentation that the Department considers necessary to make a determination on the loan.</text> </level> </level> <level label="d"> <level label="1"> <text>The Department may give a preference to an application for:</text> <level label="i"> <text>a net–zero home; or</text> </level> <level label="ii"> <text>a project that includes financing from other sources in addition to the Program loan.</text> </level> </level> <level label="2"> <text>In providing assistance under the Program for a net–zero home, the Department shall give preference to applications that will use the services of small, minority, women–owned, and veteran–owned businesses in the State in the clean energy industry, particularly businesses that provide employment for individuals trained through workforce development programs supported by the Strategic Energy Investment Fund under § 5–1501 of the Economic Development Article and through the Clean Energy Workforce Account under § 11–708.1 of the Labor and Employment Article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2005" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department under an agreement relating to a Program loan.</text> </level> <level label="2"> <text>A loan applicant may not knowingly make or cause to be made any false statement or report to influence an action of the Department on a Program loan application or a Program loan already made.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2006" title_number="4" title_name="Division of Development Finance" subtitle_number="20" subtitle_name="Energy-Efficient Homes Construction Loan Program"> <level label="a"> <text>There is an Energy–Efficient Homes Construction Fund.</text> </level> <level label="b"> <text>The Department shall administer the Fund.</text> </level> <level label="c"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="d"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>repayments or prepayments of principal and payments of interest on loans made under the Energy–Efficient Homes Construction Loan Program;</text> </level> <level label="3"> <text>investment earnings of the Fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="e"> <text>The Department may use the Fund only to:</text> <level label="1"> <text>pay expenses of the Program;</text> </level> <level label="2"> <text>provide credit enhancement under the Program; and</text> </level> <level label="3"> <text>make or purchase loans under the Program.</text> </level> </level> <level label="f"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any investment earnings of the Fund shall be paid into the Fund.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2101" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Continuum of Care” means a regional or local planning body that coordinates housing and services funding for homeless families and individuals.</text> </level> <level label="c"> <text>“Council” means the Interagency Council on Homelessness.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2102" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <text>There is an Interagency Council on Homelessness.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2103" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <level label="a"> <text>The Council consists of the following members:</text> <level label="1"> <text>the Secretary of Aging, or the Secretary’s designee;</text> </level> <level label="2"> <text>the Secretary of Budget and Management, or the Secretary’s designee;</text> </level> <level label="3"> <text>the Secretary of Health, or the Secretary’s designee;</text> </level> <level label="4"> <text>the Secretary, or the Secretary’s designee;</text> </level> <level label="5"> <text>the Secretary of Human Services, or the Secretary’s designee;</text> </level> <level label="6"> <text>the Secretary of Labor, or the Secretary’s designee;</text> </level> <level label="7"> <text>the Secretary of Public Safety and Correctional Services, or the Secretary’s designee;</text> </level> <level label="8"> <text>the State Superintendent of Schools, or the State Superintendent’s designee;</text> </level> <level label="9"> <text>the Secretary of Transportation, or the Secretary’s designee;</text> </level> <level label="10"> <text>the Secretary of Veterans and Military Families, or the Secretary’s designee;</text> </level> <level label="11"> <text>the Secretary of Juvenile Services, or the Secretary’s designee;</text> </level> <level label="12"> <text>the Secretary of Disabilities, or the Secretary’s designee; and</text> </level> <level label="13"> <text>the following members, appointed by the Governor:</text> <level label="i"> <text>one representative of the Governor’s Office for Children;</text> </level> <level label="ii"> <text>three representatives of local Continuums of Care;</text> </level> <level label="iii"> <text>nine representatives from diverse geographical regions of the State engaged in homeless advocacy with a focus on housing, employment, and access to health care; and</text> </level> <level label="iv"> <text>one community representative who has personally experienced homelessness.</text> </level> </level> </level> <level label="b"> <text>The Governor may remove a member for incompetence or misconduct.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2104" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <text>The Secretary, or the Secretary’s designee, shall serve as chair of the Council.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2105" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <level label="a"> <text>A majority of the members then serving on the Council is a quorum.</text> </level> <level label="b"> <text>The Council shall determine the times and places of its meetings.</text> </level> <level label="c"> <text>Except as provided in subsection (d) of this section, a member of the Council:</text> <level label="1"> <text>may not receive compensation as a member of the Council; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>A member of the Council appointed under § 4–2103(a)(13)(iii) or (iv) of this subtitle who is currently experiencing homelessness or has lived experience of homelessness is entitled to:</text> <level label="1"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget; and</text> </level> <level label="2"> <text>reasonable compensation for the member’s services as determined by a compensation policy administered by the Department.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2106" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <text>The Department shall provide staff for the Council.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2107" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <text>The Council shall: </text> <level label="1"> <text>coordinate State policy and working relationships among State, local, and nonprofit agencies concerning efforts to remedy and prevent homelessness;</text> </level> <level label="2"> <text>coordinate data sharing between local Continuums of Care;</text> </level> <level label="3"> <text>coordinate outreach to each Continuum of Care to develop joint strategies that impact State and federal funding efforts to remedy and prevent homelessness;</text> </level> <level label="4"> <text>determine comprehensive and effective collaborative strategies and best practices for remediation and prevention of homelessness in the State, in particular addressing the differing needs of the State’s geographic areas;</text> </level> <level label="5"> <text>review and analyze the need for and availability of affordable and accessible housing resources to address the needs of homeless individuals throughout the State;</text> </level> <level label="6"> <text>recommend changes necessary to alleviate or prevent homelessness, including making recommendations annually to the General Assembly, in accordance with § 2–1257 of the State Government Article, and appropriate State agencies and organizations regarding effective policies, effective distribution of resources, and access to available services and programs;</text> </level> <level label="7"> <text>identify supportive services for special populations, including veterans, youth, families, and individuals with behavioral health problems;</text> </level> <level label="8"> <text>disseminate information and educate the public about the prevalence and causes of and responses to homelessness;</text> </level> <level label="9"> <text>solicit input from the advocacy community, the business community, the faith community, and consumers regarding policy and program development; and</text> </level> <level label="10"> <text>determine best practices and models for providing emergency shelter and shelter diversion, including ensuring the health, safety, and security of shelter residents, providing client–centered and trauma–informed support services, and ensuring equal access to protected classes under applicable federal, State, and local civil rights laws.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2108" title_number="4" title_name="Division of Development Finance" subtitle_number="21" subtitle_name="Interagency Council on Homelessness"> <text>The Department shall adopt regulations to govern the development, implementation, and evaluation of policies and programs to make homelessness rare and, if it occurs, of brief duration.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2201" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Client” means an individual or a family who is in need of housing and is not eligible for other available housing services.</text> </level> <level label="c"> <text>“Program” means the Crisis Shelter Home Program for the Homeless.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2202" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>The General Assembly finds and declares that:</text> <level label="1"> <text>an increasing number of people in the State are homeless;</text> </level> <level label="2"> <text>homeless people have been ignored by State units;</text> </level> <level label="3"> <text>current State–operated programs do not adequately address the problem; and</text> </level> <level label="4"> <text>as a result, there is a lack of quality emergency public or private housing available for homeless people.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2203" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <level label="a"> <text>There is a Crisis Shelter Home Program for the Homeless in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to provide crisis shelter homes, meals, and counseling to clients.</text> </level> <level label="c"> <text>At least one crisis shelter home shall be located in a major population center of the State to facilitate the use of the shelter by clients living in the region surrounding the shelter.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2204" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>The Maryland Department of Health may not use a shelter home as part of its discharge service plan.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2205" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <level label="a"> <text>A shelter home:</text> <level label="1"> <text>shall provide clients with a temporary residence and necessary counseling to link clients to appropriate community services to stabilize the clients’ living conditions;</text> </level> <level label="2"> <text>shall accept, from the police and other referral sources in the community, clients for temporary shelter;</text> </level> <level label="3"> <text>shall conform to applicable State and local fire codes, health codes, and zoning ordinances; and</text> </level> <level label="4"> <text>is subject to the regulations adopted by the Department.</text> </level> </level> <level label="b"> <text>The Department shall:</text> <level label="1"> <text>establish standards of care and admission policies for shelter homes;</text> </level> <level label="2"> <text>monitor the operation of the shelter homes; and</text> </level> <level label="3"> <text>annually evaluate the effectiveness of the shelter homes.</text> </level> </level> <level label="c"> <text>The Department may contract with private nonprofit organizations to operate the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2206" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>Clients shall have cooperative responsibility for housekeeping duties in a shelter home.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2207" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>The Maryland Department of Health shall:</text> <level label="1"> <text>give a client evaluated by a shelter home priority access, as appropriate, to an institution that the Maryland Department of Health supervises; and</text> </level> <level label="2"> <text>supply appropriate mental health services to the client.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2208" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>Housing may not be provided under this subtitle to an applicant for housing who is not a resident of the State at the time the application is made.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2209" title_number="4" title_name="Division of Development Finance" subtitle_number="22" subtitle_name="Crisis Shelter Home Program for the Homeless"> <text>Funds to operate the Program shall be as provided in the State budget.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2301" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>In this subtitle, “Program” means the Housing Navigator and Aftercare Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2302" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>There is a Housing Navigator and Aftercare Program in the Department.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2303" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>The purpose of the Program is to assist families and individuals who are experiencing, or who are in imminent danger of, a housing crisis in obtaining and maintaining permanent housing.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2304" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>A family may apply for Program services if the family is the recipient of or is in the process of applying for temporary cash assistance, as defined in § 5–301 of the Human Services Article.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2305" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>A housing navigator shall assist a family or an individual client with securing and maintaining permanent, affordable housing by:</text> <level label="1"> <text>assisting the client with searching for and obtaining permanent, affordable housing;</text> </level> <level label="2"> <text>developing a comprehensive, current list of housing resources and expanding the list of housing resources to include new resources;</text> </level> <level label="3"> <text>establishing a working relationship with the client and advocating for the client with landlords, property managers, realty companies, and other sources of low–income housing;</text> </level> <level label="4"> <text>working with a client’s case manager, when applicable, to coordinate services to the client;</text> </level> <level label="5"> <text>assisting the client, as needed, with issues that contribute to chronic housing problems, such as budgeting and household management; and</text> </level> <level label="6"> <text>performing other duties as assigned by the Department.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2306" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <level label="a"> <text>Program funds may be used for:</text> <level label="1"> <text>salary and FICA for housing navigators and aftercare case managers;</text> </level> <level label="2"> <text>client–related expenses, including:</text> <level label="i"> <text>first and final months’ rent;</text> </level> <level label="ii"> <text>transportation for housing searches;</text> </level> <level label="iii"> <text>moving expenses;</text> </level> <level label="iv"> <text>essential furnishings;</text> </level> <level label="v"> <text>storage;</text> </level> <level label="vi"> <text>arrearages;</text> </level> <level label="vii"> <text>credit checks and housing application fees;</text> </level> <level label="viii"> <text>security deposits;</text> </level> <level label="ix"> <text>utility deposits; and</text> </level> <level label="x"> <text>other identified needs; and</text> </level> </level> <level label="3"> <text>other items that the Department designates.</text> </level> </level> <level label="b"> <text>A local administrative agency shall be designated by the Department or a local government to manage the Program in a particular subdivision, provide services, and provide funds for additional costs, including operating costs, related to the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2307" title_number="4" title_name="Division of Development Finance" subtitle_number="23" subtitle_name="Housing Navigator and Aftercare Program"> <text>Subject to the limitations of the State budget, beginning in fiscal year 2019 and for each fiscal year thereafter, the Governor shall include in the annual budget an appropriation for the Program of $516,828.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2401" title_number="4" title_name="Division of Development Finance" subtitle_number="24" subtitle_name="Homeless Women and Youth -- Feminine Hygiene Products"> <level label="a"> <level label="1"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Feminine hygiene products” means tampons and sanitary napkins for use in connection with the menstrual cycle.</text> </level> <level label="3"> <text>“Local administering agency” means the agency designated by the Department or a local government to manage the programs for transitional housing services, including the Homeless Women – Crisis Shelter Home Program, and to provide a service directly or by contract with a service provider.</text> </level> <level label="4"> <text>“Service provider” means a public or private nonprofit that contracts with the Department or a local administering agency to provide shelter services for homeless individuals.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department shall make available to:</text> <level label="i"> <text>service providers and local administering agencies for service providers a supply of feminine hygiene products sufficient to meet the needs of female residents in shelters; and</text> </level> <level label="ii"> <text>county boards of education a supply of feminine hygiene products sufficient to meet the needs during the normal school year of female students who are determined to be homeless children or youth under the federal McKinney–Vento Homeless Assistance Act.</text> </level> </level> <level label="2"> <text>The feminine hygiene products provided under paragraph (1) of this subsection shall be made available free to:</text> <level label="i"> <text>service providers, local administering agencies for service providers, and female residents in shelters; and</text> </level> <level label="ii"> <text>county boards of education and qualifying female students in schools.</text> </level> </level> </level> <level label="c"> <text>Each county board of education, through school nurses, shall make available to female students who are determined to be homeless children or youth under the federal McKinney–Vento Homeless Assistance Act a free supply of feminine hygiene products, as provided under subsection (b) of this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2501" title_number="4" title_name="Division of Development Finance" subtitle_number="25" subtitle_name="Qualified Workforce Housing Tax Credit"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code.</text> </level> <level label="c"> <text>“Qualified workforce housing project” means a workforce housing project in an opportunity zone that meets requirements for eligibility for the State tax credit as specified in regulations that the Secretary adopts under § 4–2502 of this subtitle.</text> </level> <level label="d"> <text>“State tax credit” means the income tax credit allowed under § 10–749 of the Tax – General Article.</text> </level> <level label="e"> <text>“Workforce housing” has the meaning stated in § 4–1801 of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2502" title_number="4" title_name="Division of Development Finance" subtitle_number="25" subtitle_name="Qualified Workforce Housing Tax Credit"> <level label="a"> <text>The owner of a qualified workforce housing project or the developer of a proposed project that will become a qualified workforce housing project may apply to the Secretary for allocation to the project of a portion of the State tax credit.</text> </level> <level label="b"> <text>An application under this section shall be made in the form and manner and contain any information that the Secretary requires by regulation.</text> </level> <level label="c"> <level label="1"> <text>The Secretary may require that the owner of a qualified workforce housing project, as a condition to receiving an allocation of the State tax credit, enter into a written regulatory agreement with the Secretary under terms and conditions set by the Secretary, regarding the use of the project.</text> </level> <level label="2"> <text>The Secretary may require that any agreement required by the Secretary under this subsection be filed in the official land records of the county where the project is located.</text> </level> <level label="3"> <text>The Secretary and any local agency or authority designated by the Secretary may enforce an agreement required by the Secretary under this section in the event the owner fails to satisfy any of the requirements of the agreement.</text> </level> <level label="4"> <text>The Secretary may not require that the owner of a qualified workforce housing project, as a condition to receiving an allocation of the State tax credit, use the bonding authority of the State.</text> </level> </level> <level label="d"> <text>The Secretary shall adopt:</text> <level label="1"> <text>regulations or policies establishing criteria by which the State tax credit will be allocated among qualified workforce housing projects; and</text> </level> <level label="2"> <text>any other regulations necessary to administer the provisions of this subtitle.</text> </level> </level> <level label="e"> <text>Any project that receives an allocation of a portion of the State tax credit shall be restricted in occupancy as specified in the regulations adopted by the Secretary under subsection (d) of this section for a period of at least 30 years beginning with the first taxable year in which a State tax credit is claimed by the owner.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2503" title_number="4" title_name="Division of Development Finance" subtitle_number="25" subtitle_name="Qualified Workforce Housing Tax Credit"> <level label="a"> <level label="1"> <text>The maximum aggregate available State tax credit that may be allocated for each fiscal year equals the lesser of:</text> <level label="i"> <text>the amount appropriated for the Qualified Workforce Housing Tax Credit Reserve Fund for that fiscal year in the State budget as approved by the General Assembly; or</text> </level> <level label="ii"> <text>$4,000,000.</text> </level> </level> <level label="2"> <text>The Secretary may allocate the aggregate available State tax credit for a fiscal year among projects to be qualified workforce housing projects to be placed in service during or after that fiscal year.</text> </level> <level label="3"> <text>Any part of the aggregate available State tax credit for any fiscal year that is not allocated by the Secretary in that fiscal year may be carried over and allocated for any subsequent fiscal year.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “Reserve Fund” means the Qualified Workforce Housing Tax Credit Reserve Fund established under paragraph (2) of this subsection.</text> </level> <level label="2"> <level label="i"> <text>There is a Qualified Workforce Housing Tax Credit Reserve Fund.</text> </level> <level label="ii"> <text>The Reserve Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="iii"> <text>The money in the Reserve Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State.</text> </level> </level> <level label="3"> <level label="i"> <level label="1"> <text>Except as otherwise provided in this subparagraph, for any fiscal year, the Secretary may not allocate tax credits under this subtitle in the aggregate totaling more than the amount appropriated for the Reserve Fund for that fiscal year in the State budget as approved by the General Assembly.</text> </level> <level label="2"> <text>If the aggregate credit amounts allocated in a fiscal year total less than the amount appropriated for the Reserve Fund for that fiscal year, any excess amount shall remain in the Reserve Fund and may be allocated for the next fiscal year.</text> </level> <level label="3"> <text>For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than paragraph (4) of this subsection, the maximum credit amounts in the aggregate that the Secretary may allocate shall be reduced by the amount transferred.</text> </level> </level> <level label="ii"> <text>For each fiscal year, the Governor may include in the budget bill an appropriation for the Reserve Fund.</text> </level> <level label="iii"> <text>Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation for the Reserve Fund in the State budget as approved by the General Assembly.</text> </level> </level> <level label="4"> <level label="i"> <text>Except as provided in this paragraph, money appropriated for the Reserve Fund shall remain in the Reserve Fund.</text> </level> <level label="ii"> <level label="1"> <text>Within 15 days after the end of each calendar quarter, as to each qualified workforce housing project for which a final credit certificate was issued during the quarter, the Department shall notify the Comptroller of:</text> </level> <level label="A"> <text>the maximum credit amount initially allocated to the project; and</text> </level> <level label="B"> <text>the final certified credit amount for the project.</text> </level> <level label="2"> <text>On notification that the final credit for a project has been certified, the Comptroller shall transfer an amount equal to the credit amount initially allocated to the project from the Reserve Fund to the General Fund of the State.</text> </level> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2504" title_number="4" title_name="Division of Development Finance" subtitle_number="25" subtitle_name="Qualified Workforce Housing Tax Credit"> <level label="a"> <text>On or before the last day of the taxable year in which a qualified workforce housing project that has been allocated a part of the State tax credit under this subtitle is placed in service, the owner shall:</text> <level label="1"> <text>notify the Secretary that the project has been placed in service; and</text> </level> <level label="2"> <text>certify that the project is a qualified workforce housing project eligible for the State tax credit.</text> </level> </level> <level label="b"> <text>Within 15 days after notification that a project has been placed in service, the Secretary shall issue to the owner a final credit certificate for the project stating the final credit amount for the project, not to exceed the credit amount initially allocated to the project.</text> </level> <level label="c"> <text>The Secretary shall:</text> <level label="1"> <text>determine whether any event has occurred in violation of this subtitle or regulations adopted under this subtitle that makes the project ineligible for the State tax credit or otherwise triggers the recapture of any State tax credit as provided under § 10–749 of the Tax – General Article; and</text> </level> <level label="2"> <text>promptly notify the Comptroller of the occurrence of the event.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2505" title_number="4" title_name="Division of Development Finance" subtitle_number="25" subtitle_name="Qualified Workforce Housing Tax Credit"> <text>On or before December 31 each year, the Secretary shall report, in accordance with § 2–1257 of the State Government Article, to the General Assembly:</text> <level label="1"> <text>the number of qualified workforce housing projects that received a tax credit allocation during the year;</text> </level> <level label="2"> <text>the number of housing units supported by each qualified workforce housing project that received a tax credit allocation during the year;</text> </level> <level label="3"> <text>a description of each qualified workforce housing project that includes:</text> <level label="i"> <text>the geographic location of the project;</text> </level> <level label="ii"> <text>demographic information on and income levels of the residents intended to be served by the project; and</text> </level> <level label="iii"> <text>the rent that is authorized to be charged for a unit in the project; and</text> </level> </level> <level label="4"> <text>housing market and demographic information that demonstrates how each qualified workforce housing project is addressing the need for workforce housing within the communities that the project is intended to serve.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2601" title_number="4" title_name="Division of Development Finance" subtitle_number="26" subtitle_name="Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence"> <text>In this subtitle, “Program” means the Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2602" title_number="4" title_name="Division of Development Finance" subtitle_number="26" subtitle_name="Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence"> <level label="a"> <text>There is a Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence.</text> </level> <level label="b"> <text>The purpose of the Program is to provide grants for housing voucher funds to counties for use to house homeless veterans and survivors of domestic violence.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2603" title_number="4" title_name="Division of Development Finance" subtitle_number="26" subtitle_name="Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence"> <text>The Department shall:</text> <level label="1"> <text>distribute grants to counties that may apply under the Program for rapid or permanent housing voucher funds for homeless veterans and survivors of domestic violence;</text> </level> <level label="2"> <text>establish procedures for receiving and evaluating grant applications from counties under the Program;</text> </level> <level label="3"> <text>monitor the operation of the grants; and</text> </level> <level label="4"> <text>adopt regulations to carry out this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2604" title_number="4" title_name="Division of Development Finance" subtitle_number="26" subtitle_name="Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence"> <level label="a"> <text>For fiscal year 2020 and each fiscal year thereafter, the Governor may include funding in the annual budget for the Program.</text> </level> <level label="b"> <text>Money expended from the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated by the Department to address homelessness.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2605" title_number="4" title_name="Division of Development Finance" subtitle_number="26" subtitle_name="Local Housing Grant Program for Homeless Veterans and Survivors of Domestic Violence"> <text>The Department may establish preferences under the Program for counties that:</text> <level label="1"> <text>enact an ordinance that prohibits discrimination in housing on the basis of source of income;</text> </level> <level label="2"> <text>adopt a Housing First policy, as defined by the Department; or</text> </level> <level label="3"> <text>provide an additional 25% county dedicated funding or voucher match.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2701" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Service provider” means a public or private nonprofit organization that provides shelter and supportive services to unaccompanied minors in need of shelter.</text> </level> <level label="2"> <text>“Service provider” includes a host home program.</text> </level> </level> <level label="c"> <text>“Supportive services” means interventions, services, or resources necessary to assist unaccompanied minors in need of shelter in acquiring or maintaining:</text> <level label="1"> <text>stable housing;</text> </level> <level label="2"> <text>permanent connections, including ongoing attachments to families, communities, schools, and other positive social networks;</text> </level> <level label="3"> <text>education and employment, including high performance in completion of education and training activities, especially for younger youth, and starting and maintaining adequate and stable employment, particularly for older youth; or</text> </level> <level label="4"> <text>social and emotional well–being, including the development of key competencies, attitudes, and behaviors that equip a young person to succeed across multiple domains of daily life, including school, work, relationships, and community.</text> </level> </level> <level label="d"> <text>“Unaccompanied minor in need of shelter” means a minor:</text> <level label="1"> <text>who is not in the physical custody of a parent or legal guardian; and</text> </level> <level label="2"> <level label="i"> <text>who lacks a fixed, regular, and adequate nighttime residence as defined in the McKinney–Vento Homeless Assistance Act; or</text> </level> <level label="ii"> <text>whose status or circumstances indicate a significant danger of experiencing homelessness in the near future.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2702" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <text>An unaccompanied minor in need of shelter may consent to shelter and supportive services if the service provider reasonably believes that:</text> <level label="1"> <text>the unaccompanied minor understands the significant benefits, responsibilities, risks, and limits of the shelter and services and can communicate an informed consent;</text> </level> <level label="2"> <text>the unaccompanied minor understands the requirements and rules of the shelter and services; and</text> </level> <level label="3"> <text>the shelter and services are necessary to ensure the unaccompanied minor’s safety and well–being.</text> </level> </level> <level label="b"> <text>An unaccompanied minor in need of shelter who is a parent may consent to shelter and supportive services for the minor’s child.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2703" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <level label="1"> <text>Before providing shelter and supportive services to an unaccompanied minor in need of shelter, a service provider shall:</text> <level label="i"> <text>register with the Department;</text> </level> <level label="ii"> <text>develop and implement a procedure to screen each staff member who works with minors, including through a State and national criminal history records check or a private agency background check conducted in accordance with § 4–2708 of this subtitle; and</text> </level> <level label="iii"> <text>obtain written consent from the unaccompanied minor in need of shelter.</text> </level> </level> <level label="2"> <text>The written consent from the unaccompanied minor in need of shelter shall state the minor’s:</text> <level label="i"> <text>age;</text> </level> <level label="ii"> <text>guardianship status, if known; and</text> </level> <level label="iii"> <text>living situation.</text> </level> </level> </level> <level label="b"> <text>A service provider may not provide shelter to a minor if the service provider has knowledge that the minor:</text> <level label="1"> <text>knowingly provided false information in the written consent required under subsection (a) of this section; or</text> </level> <level label="2"> <text>does not meet the definition of an unaccompanied minor in need of shelter under this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2704" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <text>After providing shelter to an unaccompanied minor in need of shelter, a service provider shall:</text> <level label="1"> <level label="i"> <text>as soon as possible and within 72 hours, contact a parent, a guardian, or an adult relative of the minor; or</text> </level> <level label="ii"> <text>if the service provider suspects abuse or neglect by the parent, guardian, or adult relative of the minor, immediately notify the appropriate authorities of the suspected abuse or neglect in accordance with § 5–704 of the Family Law Article; and</text> </level> </level> <level label="2"> <text>if the service provider suspects any abuse or neglect of the unaccompanied minor in need of shelter, immediately notify the appropriate authorities of the suspected abuse or neglect in accordance with § 5–704 of the Family Law Article.</text> </level> </level> <level label="b"> <level label="1"> <text>If a service provider is unable to contact, and does not suspect abuse by, a parent, a guardian, or an adult relative of an unaccompanied minor in need of shelter, the service provider shall:</text> <level label="i"> <text>notify the minor of the requirements of this section; and</text> </level> <level label="ii"> <text>after providing the notice required under item (i) of this paragraph, contact the National Center for Missing and Exploited Children to determine if the minor has been reported missing by a legal guardian.</text> </level> </level> <level label="2"> <text>If a service provider receives information indicating that an unaccompanied minor in need of shelter is missing from foster care, the service provider shall contact the local department of social services.</text> </level> <level label="3"> <text>If a service provider receives information indicating that an unaccompanied minor in need of shelter has been reported missing by a legal guardian other than the local department of social services, the service provider shall contact local law enforcement.</text> </level> </level> <level label="c"> <text>A service provider shall document efforts and communications made under subsection (b) of this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2705" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <text>A service provider that provides shelter and supportive services to an unaccompanied minor in need of shelter in accordance with this subtitle is not civilly or criminally liable or subject to a disciplinary penalty based solely on the provider’s reasonable determination to provide the shelter and supportive services.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2706" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <text>The Department shall establish and maintain a registry of all service providers that register under § 4–2703 of this subtitle to provide shelter and supportive services to unaccompanied minors in need of shelter.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2707" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </level> <level label="b"> <text>The regulations shall include:</text> <level label="1"> <text>a prohibition against a service provider knowingly hiring or retaining an individual who has been convicted of a crime involving:</text> <level label="i"> <text>an offense under § 3–307 or § 3–308 of the Criminal Law Article or an offense under the laws of another state that would constitute a violation of § 3–307 or § 3–308 of the Criminal Law Article if committed in the State;</text> </level> <level label="ii"> <text>child abuse under § 3–601 of the Criminal Law Article or an offense under the laws of another state that would constitute child abuse under § 3–601 of the Criminal Law Article if committed in the State;</text> </level> <level label="iii"> <text>child sexual abuse under § 3–602 of the Criminal Law Article or an offense under the laws of another state that would constitute child sexual abuse under § 3–602 of the Criminal Law Article if committed in the State;</text> </level> <level label="iv"> <text>child neglect under § 3–602.1 of the Criminal Law Article or an offense under the laws of another state that would constitute neglect under § 3–602.1 of the Criminal Law Article if committed in the State; or</text> </level> <level label="v"> <text>a crime of violence as defined in § 14–101 of the Criminal Law Article or an offense under the laws of another state that would be a violation of § 14–101 of the Criminal Law Article if committed in the State; and</text> </level> </level> <level label="2"> <text>a requirement that each service provider provide training for each staff member who serves minors regarding mandatory reporting of suspected abuse or neglect in accordance with § 4–2704 of this subtitle and § 5–704 of the Family Law Article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2708" title_number="4" title_name="Division of Development Finance" subtitle_number="27" subtitle_name="Unaccompanied Minors in Need of Shelter and Supportive Services"> <level label="a"> <text>In this section, “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.</text> </level> <level label="b"> <text>For each staff member who works with unaccompanied minors, a service provider shall:</text> <level label="1"> <text>apply to the Central Repository for a State and national criminal history records check; or</text> </level> <level label="2"> <text>request a private agency to conduct a background check.</text> </level> </level> <level label="c"> <level label="1"> <text>As part of an application to the Central Repository for a State and national criminal history records check, the service provider shall submit to the Central Repository:</text> <level label="i"> <text>one complete set of legible fingerprints of the staff member taken in a format approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;</text> </level> <level label="ii"> <text>the fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to State criminal history records; and</text> </level> <level label="iii"> <text>the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.</text> </level> </level> <level label="2"> <text>In accordance with Title 10, Subtitle 2 of the Criminal Procedure Article, the Central Repository shall forward to the service provider and the staff member the criminal history record information of the staff member.</text> </level> <level label="3"> <text>Information obtained from the Central Repository under this subsection:</text> <level label="i"> <text>is confidential and may not be redisseminated; and</text> </level> <level label="ii"> <text>may be used only for the screening purposes authorized by this subtitle.</text> </level> </level> <level label="4"> <text>A person who is the subject of a criminal history records check under this subsection may contest the contents of the printed statement issued by the Central Repository as provided in §10–223 of the Criminal Procedure Article.</text> </level> </level> <level label="d"> <text>If a service provider requests a private agency to conduct a background check:</text> <level label="1"> <text>the private agency shall:</text> <level label="i"> <text>conduct a background check in each state where the service provider knows or has reason to believe the staff member worked or resided during the past 7 years; and</text> </level> <level label="ii"> <text>issue a statement of the private agency’s findings to:</text> <level label="1"> <text>on request, the staff member; and</text> </level> <level label="2"> <text>the service provider; and</text> </level> </level> </level> <level label="2"> <text>the staff member shall have an opportunity to contest the findings of the private agency.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2801" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affordable” means that monthly housing costs are affordable to a family of limited income as determined under § 4–212 of this title.</text> </level> <level label="c"> <text>“Appraisal gap” means the amount by which the total cost of eligible construction expenses exceeds the contract sales price of a qualified property when it is initially sold to an owner–occupant.</text> </level> <level label="d"> <level label="1"> <text>“Eligible construction expenses” means any amount that is expended on the construction or substantial rehabilitation of a qualified property.</text> </level> <level label="2"> <text>“Eligible construction expenses” includes any amount expended on:</text> <level label="i"> <text>acquisition costs;</text> </level> <level label="ii"> <text>roof repair and replacement;</text> </level> <level label="iii"> <text>chimney repair and lining;</text> </level> <level label="iv"> <text>internal and external doors;</text> </level> <level label="v"> <text>windows;</text> </level> <level label="vi"> <text>masonry;</text> </level> <level label="vii"> <text>floor joists;</text> </level> <level label="viii"> <text>finished flooring;</text> </level> <level label="ix"> <text>framing;</text> </level> <level label="x"> <text>structural repairs;</text> </level> <level label="xi"> <text>foundation repairs;</text> </level> <level label="xii"> <text>plumbing, electrical, and mechanical systems;</text> </level> <level label="xiii"> <text>architectural and engineering consulting fees;</text> </level> <level label="xiv"> <text>tools and equipment rental;</text> </level> <level label="xv"> <text>new construction;</text> </level> <level label="xvi"> <text>infrastructure; and</text> </level> <level label="xvii"> <text>other expenses as determined by the Secretary.</text> </level> </level> </level> <level label="e"> <text>“Financial assistance” includes:</text> <level label="1"> <text>a grant;</text> </level> <level label="2"> <text>a loan;</text> </level> <level label="3"> <text>a reduction in the principal obligation of or rate of interest payable on a loan or portion of a loan;</text> </level> <level label="4"> <text>a prepayment of interest on a subordinate or superior loan or portion of a loan;</text> </level> <level label="5"> <text>an assurance;</text> </level> <level label="6"> <text>a guarantee; and</text> </level> <level label="7"> <text>any other form of credit enhancement.</text> </level> </level> <level label="f"> <text>“Fund” means the Appraisal Gap From Historic Redlining Financial Assistance Fund established under this subtitle.</text> </level> <level label="g"> <text>“Qualified project” means the construction or substantial rehabilitation of a qualified property if the eligible construction expenses do not exceed $500,000.</text> </level> <level label="h"> <text>“Qualified property” means residential real property that is:</text> <level label="1"> <text>newly constructed or a formerly vacant structure that has been substantially rehabilitated;</text> </level> <level label="2"> <text>located in:</text> <level label="i"> <level label="1"> <text>A low–income census tract as defined by the U.S. Department of Housing and Urban Development; and</text> </level> <level label="2"> <text>an area designated as a sustainable community; or</text> </level> </level> <level label="ii"> <text>an area that meets criteria established by the Department for the identification neighborhoods that:</text> <level label="1"> <text>have been historically redlined; or</text> </level> <level label="2"> <text>have undergone urban renewal; and</text> </level> </level> </level> <level label="3"> <text>constructed or rehabilitated with the purpose of being sold to an owner–occupant at an affordable sales price.</text> </level> </level> <level label="i"> <text>“Sustainable community” means an area designated as a sustainable community under § 6–205 of this article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2802" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <level label="a"> <text>There is an Appraisal Gap From Historic Redlining Financial Assistance Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to help close appraisal gaps that occur in historically redlined neighborhoods by making financial assistance available to:</text> <level label="1"> <text>affordable housing developers working in low–income census tracts and sustainable communities; and</text> </level> <level label="2"> <text>individuals who purchase a qualified property:</text> <level label="i"> <text>after a qualified project is completed;</text> </level> <level label="ii"> <text>at an affordable sales price as determined by regulations adopted by the Department; and</text> </level> <level label="iii"> <text>as an owner–occupant.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2803" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <level label="a"> <text>In the fiscal year in which a qualified project is proposed, an individual or business entity may apply to the Department for financial assistance to cover the appraisal gap for the project in accordance with this section.</text> </level> <level label="b"> <text>The Department shall develop by regulation an application form and a process for the distribution of financial assistance under this section.</text> </level> <level label="c"> <text>Financial assistance provided under this section may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing.</text> </level> <level label="d"> <text>Financial assistance provided under this section may be used in conjunction with other State, federal, or local funding sources.</text> </level> <level label="e"> <text>A qualified project receiving financial assistance under this section shall be in compliance with local development and land use plans.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2804" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <level label="a"> <text>Subject to § 4–2805 of this subtitle and the regulations of the Department, the Department shall accept an application for financial assistance from:</text> <level label="1"> <text>an individual or business entity that proposes to develop a qualified project; and</text> </level> <level label="2"> <text>an individual that proposes to purchase a qualified property.</text> </level> </level> <level label="b"> <text>The application shall be in the form and shall contain any information that the Department requires by regulation.</text> </level> <level label="c"> <text>The Department shall approve all applications that qualify for financial assistance under this subtitle in a timely manner.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2805" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <level label="a"> <text>There is an Appraisal Gap From Historic Redlining Financial Assistance Fund.</text> </level> <level label="b"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The money in the Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>Except as otherwise provided in this paragraph, for any fiscal year, the Department may not provide financial assistance under this subtitle in the aggregate totaling more than the amount appropriated for the Fund for that fiscal year in the State budget as approved by the General Assembly.</text> </level> <level label="ii"> <text>If the aggregate financial assistance amounts provided in a fiscal year total less than the amount appropriated for the Fund for that fiscal year, any excess amount shall remain in the Fund and may be allocated for the next fiscal year.</text> </level> <level label="iii"> <text>For any fiscal year, if funds are transferred from the Fund under the authority of any provision of law other than subsection (d) of this section, the maximum financial assistance amounts in the aggregate that the Department may provide shall be reduced by the amount transferred.</text> </level> </level> <level label="2"> <text>Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation for the Fund in the State budget as approved by the General Assembly.</text> </level> </level> <level label="d"> <text>Money in the Fund may be used only for the purpose of providing financial assistance in accordance with this subtitle.</text> </level> <level label="e"> <text>On or before January 1 each year, each county shall submit a report to the Department that details the targeted areas for homeownership that would qualify for financial assistance provided under this subtitle.</text> </level> <level label="f"> <text>On or before March 1 each year, the Department shall submit a report, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Committee on Ways and Means on the number of funds deployed to census tracts with a majority racial minority population.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2806" title_number="4" title_name="Division of Development Finance" subtitle_number="28" subtitle_name="Appraisal Gap from Historic Redlining Financial Assistance Program"> <text>The Department shall adopt: </text> <level label="1"> <text>regulations to specify criteria for the application for and approval of the financial assistance under this subtitle; and</text> </level> <level label="2"> <text>any other regulations necessary to carry out the provisions of this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2901" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Disability” means a physical or mental impairment that substantially limits a major life activity.</text> </level> <level label="c"> <text>“Elderly” means an individual that is at least 62 years old.</text> </level> <level label="d"> <level label="1"> <text>“Family” means an individual or group of individuals eligible for assistance under the State Program.</text> </level> <level label="2"> <text>“Family” includes a preference category established under § 4–2906 of this subtitle.</text> </level> </level> <level label="e"> <text>“Housing assistance payment” means the monthly assistance payment paid for a family under the State Program.</text> </level> <level label="f"> <text>“Housing Choice Voucher Program” means the program established under 24 C.F.R. Part 982.</text> </level> <level label="g"> <text>“Live–in aide” means an individual that:</text> <level label="1"> <text>meets the requirements under 24 C.F.R. § 5.403; and</text> </level> <level label="2"> <text>resides with an elderly or disabled individual who receives assistance under the State Program.</text> </level> </level> <level label="h"> <text>“Payment standard” means the maximum monthly housing assistance payment for a family assisted under the State Program.</text> </level> <level label="i"> <level label="1"> <text>“Public housing agency” means an entity authorized by the U.S. Department of Housing and Urban Development to administer the federal Housing Choice Voucher Program in the State.</text> </level> <level label="2"> <text>“Public housing agency” does not include the Department.</text> </level> </level> <level label="j"> <text>“State Program” means the Statewide Rental Assistance Voucher Program established under this subtitle.</text> </level> <level label="k"> <text>“Voucher” means a document issued by the Department or a public housing agency to a family that is selected to receive assistance under the State Program, which describes the State Program and procedures under the State Program.</text> </level> <level label="i"> <text>“Public housing agency” means an entity authorized by the U.S. Department of Housing and Urban Development to administer the federal Housing Choice Voucher Program in the State.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2902" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>There is a Statewide Rental Assistance Voucher Program in the Department.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2903" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>The purpose of the State Program is to provide vouchers and housing assistance payments for low–income families that are currently on a waiting list under the federal Housing Choice Voucher Program for housing in units approved by the Department or a public housing agency, in accordance with guidelines under the federal Housing Choice Voucher Program. </text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2904" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <level label="1"> <text>In political subdivisions without a local administrator under the federal Housing Choice Voucher Program, the Department shall administer the State Program and issue vouchers and housing assistance payments to assist low–income households that are eligible for but are not currently receiving housing choice vouchers under the federal Housing Choice Voucher Program.</text> </level> <level label="2"> <text>In political subdivisions with a public housing agency–administrator under the federal Housing Choice Voucher Program, the public housing agency:</text> <level label="i"> <text>shall administer the State Program and issue vouchers and housing assistance payments to assist low–income households that are eligible for but are not currently receiving housing choice vouchers under the federal Housing Choice Voucher Program; and</text> </level> <level label="ii"> <text>may, subject to subsection (b) of this section, administer the State Program in accordance with the local administrative plan of the public housing agency.</text> </level> </level> <level label="3"> <text>The Department may project–base up to 100% of its authorized voucher units if necessary to administer the State Program, including in political subdivisions without a local administrator under the federal Housing Choice Voucher Program.</text> </level> </level> <level label="b"> <text>Except as otherwise provided in this subtitle, the State Program shall be administered in accordance with federal guidelines under the federal Housing Choice Voucher Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2905" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>To be eligible for a housing assistance payment under the State Program, a family shall:</text> <level label="1"> <text>reside in the State;</text> </level> <level label="2"> <text>be on a federal housing choice voucher waiting list; and</text> </level> <level label="3"> <text>meet low–income eligibility limits under the federal Housing Choice Voucher Program or income requirements as determined by the public housing agency.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2906" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>Each public housing agency shall prioritize vouchers and housing assistance payments for families that include:</text> <level label="1"> <text>a child who is under the age of 18 years;</text> </level> <level label="2"> <text>a foster child who is:</text> <level label="i"> <text>at least 18 years old; but</text> </level> <level label="ii"> <text>under the age of 24 years;</text> </level> </level> <level label="3"> <text>a veteran;</text> </level> <level label="4"> <text>an individual experiencing homelessness;</text> </level> <level label="5"> <text>a disabled individual; or</text> </level> <level label="6"> <text>an elderly individual.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2907" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>When an offer of assistance is made, a family has 30 days to provide documentation to verify their income with the Department or the public housing agency.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2908" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <text>The Department or a public housing agency shall calculate payment standards and housing assistance payments under the State Program in accordance with guidelines for the federal Housing Choice Voucher Program.</text> </level> <level label="b"> <text>A family assisted under the State Program shall be expected to pay not more than 30% of its monthly adjusted gross income for rent and utilities, as determined by the public housing agency at the time the family initially receives assistance under the State Program, except as otherwise provided in the federal Housing Choice Voucher Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2909" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>Housing assistance payments for a family shall continue for up to 5 years or until a federal housing choice voucher under the federal Housing Choice Voucher Program becomes available, whichever occurs first. </text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2910" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <text>A family may request that the Department or a public housing agency approve a live–in aide to provide necessary supportive services for a family member who is a person with a disability.</text> </level> <level label="b"> <text>The Department or a public housing agency shall reasonably modify its policies, procedures, and rules to allow a family that includes a person with a disability to have a live–in aide.</text> </level> <level label="c"> <text>The Department or a public housing agency may not include a live–in aide’s income when determining a family’s income eligibility under the State Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2911" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <level label="1"> <text>A public housing agency shall conduct an initial inspection and periodic inspections thereafter of each unit rented using housing assistance payments to ensure the continued compliance with federal housing quality standards under 24 C.F.R. § 982.401 or 24 C.F.R. § 5.703, as applicable.</text> </level> <level label="2"> <text>Inspections shall occur on or before the initial lease date and at least biennially thereafter in accordance with the public housing agency’s administrative plan.</text> </level> </level> <level label="b"> <text>For a unit located in a building with 3 to 49 units, the property owner shall provide the public housing agency with a certificate of occupancy that has been completed within 1 year.</text> </level> <level label="c"> <text>For a unit located in a building with 50 units or more, the property owner shall provide the public housing agency with an inspection certificate.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2912" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>The Department shall ensure that subsidy standards for unit selection comply with federal guidelines under the Housing Choice Voucher Program, including the mandate to provide for the smallest number of bedrooms needed to house a family without overcrowding.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2913" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <level label="1"> <text>The Department or a public housing agency may deny assistance under the State Program by:</text> <level label="i"> <text>denying a voucher under the State Program;</text> </level> <level label="ii"> <text>withdrawing a State Program voucher;</text> </level> <level label="iii"> <text>refusing to enter into a contract for housing assistance payments; or</text> </level> <level label="iv"> <text>refusing to approve a lease under the State Program.</text> </level> </level> <level label="2"> <text>The Department or a public housing agency shall deny assistance under the State Program to sex offenders who are subject to a lifetime registration requirement under a State sex offender registration program.</text> </level> <level label="3"> <text>The Department or a public housing agency may deny assistance under the State Program if the Department or a public housing agency finds that any individual residing in a unit rented using assistance from the State Program has been convicted of:</text> <level label="i"> <text>a drug–related crime under State law; or</text> </level> <level label="ii"> <text>a violent crime.</text> </level> </level> <level label="4"> <text>If the Department or public housing agency denies assistance under the State Program, the Department or the public housing agency shall promptly provide the applicant with a notice explaining the denial and indicating that the applicant may request an informal review.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department or a public housing agency may terminate assistance under the State Program by:</text> <level label="i"> <text>refusing to enter into a State Program contract;</text> </level> <level label="ii"> <text>refusing to approve a lease under the State Program; or</text> </level> <level label="iii"> <text>terminating housing assistance payments under a State Program contract.</text> </level> </level> <level label="2"> <text>The Department or a public agency shall terminate assistance under the State Program for:</text> <level label="i"> <text>families who were evicted under the State program for serious violations of the lease;</text> </level> <level label="ii"> <text>families who fail to sign any forms from the Department or a public housing agency indicating consent to obtain information; and</text> </level> <level label="iii"> <text>sex offenders subject to a lifetime registration requirement under a State sex offender registration program.</text> </level> </level> </level> <level label="c"> <text>When determining the denial or termination of assistance under the State Program, the Department may consider all relevant circumstances, including the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure if a family member:</text> <level label="1"> <text>violates any obligations under the State Program;</text> </level> <level label="2"> <text>has been evicted from federally assisted housing for violent criminal activity that threatened the health, safety, or welfare of other residents within the preceding 3 years;</text> </level> <level label="3"> <text>has committed fraud, bribery, or any other corrupt or criminal act in connection with the State Program;</text> </level> <level label="4"> <text>owes a financial obligation to the Department or public housing agency in connection with another housing or rental assistance program;</text> </level> <level label="5"> <text>breaches a repayment agreement to pay amounts owed to the Department or public housing agency;</text> </level> <level label="6"> <text>has engaged in or threatened abusive or violent behavior toward Department or public housing agency employees, the property owner or property management staff, or other residents; or</text> </level> <level label="7"> <text>receives assistance under the State Program and is absent from the unit for more than 180 consecutive days.</text> </level> </level> <level label="d"> <level label="1"> <text>The Department or a public housing agency may prohibit other family members who participated in or were culpable for actions specified under this section from residing in a unit rented using assistance from the State Program.</text> </level> <level label="2"> <text>In making the determination under paragraph (1) of this subsection, the Department or a public housing agency may consider:</text> <level label="i"> <text>the seriousness of the case;</text> </level> <level label="ii"> <text>the extent of participation by or culpability of individual family members;</text> </level> <level label="iii"> <text>mitigating circumstances related to the disability of a family member; and</text> </level> <level label="iv"> <text>the effects of the prohibition on other family members who were not involved in the action or failure.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2914" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <text>A family that receives a voucher under the State Program shall:</text> <level label="1"> <text>supply any information to the Department or the public housing agency necessary for the administration of the State Program;</text> </level> <level label="2"> <text>notify the Department or the public housing agency before vacating the unit;</text> </level> <level label="3"> <text>use the unit only as a principal place of residence; and</text> </level> <level label="4"> <text>maintain all utilities that are not paid through the housing assistance payment.</text> </level> </level> <level label="b"> <text>A family that receives a voucher under the State Program may not:</text> <level label="1"> <text>own the unit that the assistance is provided for;</text> </level> <level label="2"> <text>commit fraud in connection with the State Program;</text> </level> <level label="3"> <text>sublease or assign the lease or transfer the unit; or</text> </level> <level label="4"> <text>allow anyone not on the unit lease to reside in the unit.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2915" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>The Department or a public housing agency shall give each family that receives assistance under the State Program a written description of:</text> <level label="1"> <text>the family’s obligations under the State Program;</text> </level> <level label="2"> <text>the grounds on which the Department or the public housing agency may deny or terminate assistance under the State Program; and</text> </level> <level label="3"> <text>the process to request an informal hearing.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2916" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>The Department or a public housing agency shall recertify a family for continued admission under the State Program, in accordance with federal guidelines under the federal Housing Choice Voucher Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2917" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>If the head of household who was receiving assistance under the State Program dies, a surviving family member may continue to receive the assistance if the household is solely occupied by remaining family members in accordance with this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2918" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>Any guidelines on the termination of assistance or on evictions established by the Department or a public housing agency under this subtitle shall be at least as protective of tenants’ rights as guidelines established under the federal Housing Choice Voucher Program. </text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2919" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <level label="a"> <level label="1"> <text>For fiscal years 2025, 2026, and 2027, the Governor shall include in the annual budget bill an appropriation of $10,000,000 to the Department for the State Program.</text> </level> <level label="2"> <text>For fiscal year 2028 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation sufficient to fund at least the same number of vouchers issued in the prior fiscal year.</text> </level> </level> <level label="b"> <text>The Department shall distribute the greater of the federal de minimis rate of the public housing agency’s modified total direct costs as established in 2 C.F.R. § 200.414(f) or 15% of the amount specified under subsection (a) of this section each year to each public housing agency to help defray staffing expenses related to the administration of the federal Housing Choice Voucher Program and the State Program.</text> </level> <level label="c"> <text>The Department shall develop a formula for distributing State Program funds to each public housing agency.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2920" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>On or before December 30, 2024, and each year thereafter, the Department and each political subdivision that has a public housing agency shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on:</text> <level label="1"> <text>the number of families receiving assistance under the State Program;</text> </level> <level label="2"> <text>compliance with income eligibility requirements under the federal Housing Choice Voucher Program;</text> </level> <level label="3"> <text>the total amount of funds received;</text> </level> <level label="4"> <text>the number of households terminated from the State Program;</text> </level> <level label="5"> <text>the incomes of families receiving assistance under the State Program;</text> </level> <level label="6"> <text>the geographic locations where families receiving assistance under the State Program have been housed;</text> </level> <level label="7"> <text>the race and gender of individuals in families receiving assistance under the State Program;</text> </level> <level label="8"> <text>the household size for families receiving assistance under the State Program;</text> </level> <level label="9"> <text>the number of families receiving assistance under the State Program, based on the preferences listed in § 4–2906 of this subtitle;</text> </level> <level label="10"> <text>the length of time that each family has received assistance under the State Program;</text> </level> <level label="11"> <text>the average length of time from application into the State Program and receipt of housing assistance payments;</text> </level> <level label="12"> <text>any referrals made for families under the State Program for wraparound services, including job training;</text> </level> <level label="13"> <text>any resources used to advertise the State Program;</text> </level> <level label="14"> <text>the disability status of households served; and</text> </level> <level label="15"> <text>the number of households in which State Program assistance ended without the households having received federal housing choice vouchers.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-2921" title_number="4" title_name="Division of Development Finance" subtitle_number="29" subtitle_name="Statewide Rental Assistance Voucher Program"> <text>The Department may adopt regulations to implement this subtitle. </text> </section> <section article="ghs" article_name="Housing and Community Development" number="4-3001" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="30" subtitle_name="Housing Innovation Pilot Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authority” has the meaning stated in § 12–101 of this article.</text> </level> <level label="c"> <text>“Fund” means the Housing Innovation Fund.</text> </level> <level label="d"> <text>“Housing innovation project” means a project to provide mixed–income, cross–subsidized housing, including educator workforce housing, that qualifies under § 4–3003 of this subtitle.</text> </level> <level label="e"> <text>“Program” means the Housing Innovation Pilot Program.</text> </level> <level label="f"> <text>“Public ownership” means that the authority of the political subdivision of the state in which or the county board of education in whose jurisdiction the project is located possesses majority ownership or control.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-3002" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="30" subtitle_name="Housing Innovation Pilot Program"> <level label="a"> <text>There is a Housing Innovation Pilot Program.</text> </level> <level label="b"> <text>The purposes of the Program are:</text> <level label="1"> <text>to create opportunities for the State’s public housing authorities, county governments, municipal corporations, and county boards of education to increase the volume of housing production; and</text> </level> <level label="2"> <text>to reward counties, municipal corporations, and county boards of education pursuing innovative solutions to the problem of housing scarcity.</text> </level> </level> <level label="c"> <text>The Program shall be operated with money in the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-3003" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="30" subtitle_name="Housing Innovation Pilot Program"> <level label="a"> <text>A project qualifies as a housing innovation project if it provides new housing in which:</text> <level label="1"> <text>at least 20% of the units are set aside for households with a gross annual income of not more than 50% of the area median income for a household of like size; or</text> </level> <level label="2"> <text>at least 40% of the units are set aside for households with a gross annual income of not more than 60% of the area median income for a household of like size.</text> </level> </level> <level label="b"> <text>The Department shall prioritize funding for projects that best meet the following guidelines:</text> <level label="1"> <text>the project does not use low–income housing tax credit equity or tax–exempt volume cap;</text> </level> <level label="2"> <text>the affordable set–asides required under subsection (a) of this section remain restricted at elected levels for at least 99 years;</text> </level> <level label="3"> <text>the project remains in public ownership;</text> </level> <level label="4"> <text>the project includes a commitment to prevailing wage requirements; and</text> </level> <level label="5"> <text>any portion of the units are set aside for educator workforce housing.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-3004" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="30" subtitle_name="Housing Innovation Pilot Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>coordinate with local housing authorities, county governments, municipal corporations, and county boards of education to ensure access to other financial resources, including senior debt products;</text> </level> <level label="2"> <text>develop new resources in support of statewide housing production;</text> </level> <level label="3"> <text>solicit applicants for the Program; and</text> </level> <level label="4"> <text>subject to subsection (b) of this section, select three projects to receive assistance from the Program each in a different jurisdiction.</text> </level> </level> <level label="b"> <text>The Department may select fewer than three projects to fund if there is an insufficient number of eligible applicants.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="4-3005" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 212 OF 2024" title_number="4" title_name="Division of Development Finance" subtitle_number="30" subtitle_name="Housing Innovation Pilot Program"> <level label="a"> <level label="1"> <text>In administering the Program, the Department shall take into consideration the need for increased development capacity within local housing authorities.</text> </level> <level label="2"> <text>The Department may not condition the award of funding from the Program on the issuance of bonds by the Department.</text> </level> </level> <level label="b"> <level label="1"> <text>For each of fiscal years 2026 through 2029, the Governor may include in the annual operating or capital budget bill an appropriation of $5,000,000 to the Fund.</text> </level> <level label="2"> <text>An appropriation under paragraph (1) of this subsection may be allocated using funding for rental housing projects administered in accordance with Subtitle 4 of this title.</text> </level> </level> </section>