Title 4. Division of Development Finance — Subtitle 4. Rental Housing Program

is in a sustainable community as defined in § 6–301 of this article;

was built more than 30 years before an application is submitted to the Department to finance the conversion;

consists of at least two floors at or above ground level; and

was last used as office or other commercial space.

administer the Program;

adopt policies to ensure that rental housing is made available to households of limited income;

develop procedures to ensure that the projects receiving financial assistance from the Program are in compliance with applicable occupancy restrictions;

use federal and State programs to help carry out the Program; and

encourage the assistance or participation of local political subdivisions.

the median income for the area;

the minimum income needed to afford available standard rental units in the area;

federal income guidelines, including the requirements of the Federal Low–Income Housing Tax Credit Program; and

any other relevant factor.

applications for money from the Fund;

standards of eligibility, terms, and fees;

charges that shall be imposed on Program loans; and

the recapture of money of the Fund from a borrower that does not use the money in a timely manner.

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

a portion of the rental units in the project are set aside for households of lower income for the greater of:

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

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.

effect an office or other commercial space conversion into market rate rental housing; and

provide substantial economic development to a sustainable community as defined in § 6–301 of this article.

the extent to which households of limited income will be assisted by the proposed project;

the number and percentage of households of limited income currently living in the community where the project is proposed;

the quantity, condition, and affordability of residential property in the community where the project is proposed;

the economic feasibility of the proposed project;

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

any other relevant factors.

acquire, construct, or rehabilitate a rental housing project;

convert an existing building or buildings to a rental housing project; or

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.

be secured by a mortgage lien;

be subordinate to other financing;

have an interest rate as low as zero percent;

be payable out of surplus cash;

be a deferred payment loan;

provide for an equity participation by the Department or contingent interest payable out of surplus cash or net equity; or

have any other terms the Department may require.

the interest rate;

the time or amount of payment; or

any other term of the Program loan.

enforce the mortgage;

foreclose on the mortgage and take title to the mortgaged property or take deed in lieu of foreclosure;

convey title to a purchaser;

obtain and enforce a deficiency judgment;

allow assumption of the mortgage; and

contract with a private mortgage servicer to perform on behalf of the Department any functions a servicer ordinarily performs.

assign a mortgage for value; or

convey property after acquisition.

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.

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.