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. The State Treasurer shall hold and the Comptroller shall account for each fund established under this subtitle. Money in a fund established under this subtitle shall be invested in the same way as other State money. 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. The appropriation may be increased by budget amendment. The amount of repayments appropriated to make loans under the Maryland Housing Rehabilitation Program may not exceed $12,000,000 annually. 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.

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. For purposes of this section, brokerage and investment management services shall include services relating to all allocated asset classes. 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. 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. 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. 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: the identity of the minority business enterprise brokerage and investment management services firms used by the Department in the immediately preceding fiscal year; 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 the measures the Department undertook in the immediately preceding fiscal year in accordance with subsection (c)(2) of this section.

In this section, “Fund” means the Homeownership Programs Fund. There is a Homeownership Programs Fund. As provided in the State budget, the Department shall use the Fund to: pay expenses of the Maryland Home Financing Program, including reserves for anticipated future losses directly related to the Maryland Home Financing Program; make loans under the Maryland Home Financing Program; and make loans and pay expenses of the Down Payment and Settlement Expense Loan Program. The Fund consists of: 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; money from the sale of the State’s general obligation bonds; 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; 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 investment earnings of the Fund. 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. 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.

In this section, “Fund” means the Partnership Rental Housing Fund. There is a Partnership Rental Housing Fund. The Fund consists of: money appropriated by the State to the Partnership Rental Housing Program; 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; investment earnings of the Fund; and 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. 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: less than anticipated for the fund from which money is being transferred; and greater than anticipated for the fund to which money is being transferred.

In this section, “Fund” means the Rental Housing Fund. There is a Rental Housing Fund. 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. The Department shall administer the Fund either directly or through the Administration. The Fund consists of: money appropriated by the State for the Rental Housing Program under § 4–402 of this title; repayments and prepayments of loans made under the Rental Housing Program and from loan programs under this title that have been repealed; money appropriated under § 4–501(c) of this subtitle; 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; funds received by the Department or the Administration from the federal government or other public or private sources; investment earnings of the Fund; and revenue distributed to the Fund under § 2–605.2 of the Tax – General Article. When the Department issues a binding commitment to make a loan, the Department shall withdraw from the Fund an amount equal to the commitment. 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.

In this section, “Fund” means the Special Loan Programs Fund. There is a Special Loan Programs Fund. As provided in the State budget and subject to subsection (d) of this section, the Department shall use the Fund to: operate, pay expenses of, and make loans under the Group Home Financing Program; operate, pay expenses of, and make grants and loans under the Lead Hazard Reduction Grant Program and the Lead Hazard Reduction Loan Program; 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; make loans and grants under the Regular Rehabilitation Program; and make loans and grants under the special loan programs. 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. The Department annually shall allocate money in the Fund to the Lead Hazard Reduction Grant Program and the Lead Hazard Reduction Loan Program. 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. The Fund shall be administered in accordance with this section. The Fund consists of: money appropriated by the State for special loan programs, including: the Special Rehabilitation Program under § 4–906(b) of this title; the Regular Rehabilitation Program under § 4–906(b) of this title; the Group Home Financing Program under § 4–602 of this title; 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 the Accessible Homes for Senior Homeowners Grant Program under § 4–931 of this title; repayments of principal and payments of interest on loans made under these programs; repayments of grants from the Fund; repayments of principal and payments of interest on loans from the Fund; 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 investment earnings of the Fund. 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. 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.

In this section, “Fund” means the Workforce Housing Fund. There is a Workforce Housing Fund. As provided in the State budget, the Department shall use the Fund to operate and provide funds under the Workforce Housing Grant Program. The Fund consists of: money appropriated by the State; repayments of principal and payments of interest on loans made under the Workforce Housing Grant Program; amounts paid in connection with transfers of homeownership workforce housing units; money transferred to the Fund in accordance with this subtitle; and investment earnings of the Fund.

In this section, “Fund” means the Housing Counseling and Foreclosure Mediation Fund. There is a Housing Counseling and Foreclosure Mediation Fund. The purposes of the Fund are to: support nonprofit and government housing counselors and other nonprofit entities with providing: legal assistance to homeowners or occupants who are trying to avoid foreclosure or manage foreclosure proceedings; and homebuyer education, housing advice, or financial counseling for homeowners, prospective homeowners, and low– and moderate–income households; support the establishment and operation of nonprofit housing counseling entities; support efforts by the Department and the Maryland Department of Labor to: contact and provide advice and assistance to homeowners or occupants facing financial difficulty or foreclosure; and provide advice and assistance to prospective homeowners; and assist in funding the costs of foreclosure mediations provided by the Office of Administrative Hearings under § 7–105.1 of the Real Property Article. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under § 7–105.1 of the Real Property Article; investment earnings of the Fund; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for the purposes described in subsection (c) of this section. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be paid into the Fund. Expenditures from the Fund may be made only in accordance with the State budget.

In this section, “Fund” means the Strategic Demolition and Smart Growth Impact Fund. There is a Strategic Demolition and Smart Growth Impact Fund. 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. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; repayments of loans made from the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. 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: a Sustainable Community; or a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County. 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. The matching fund required under subparagraph (i) of this paragraph may include: money from the federal government, local government, or any other public or private source; real property; in–kind contributions; and funds expended before the date the grant or loan is awarded. 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. The Department shall award grants and loans from the Fund on a competitive basis. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. 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: $22,125,000 for projects in Baltimore City; and $3,500,000 for projects throughout the State. 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: $25,000,000 for projects in Baltimore City; and $3,500,000 for projects throughout the State.

In this section the following words have the meanings indicated. “Anchor institution” means: an institution of higher education in the State, including departments, foundations, and other entities of the institution; or a hospital institution in the State, including departments, foundations, and other entities of the institution, that: has a group of at least five physicians who are organized as a medical staff for the institution; maintains facilities to provide, under the supervision of the medical staff, diagnostic and treatment services for two or more unrelated individuals; and admits or retains the individuals for overnight care. “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. “Fund” means the Seed Community Development Anchor Institution Fund. “Sustainable community” means an area designated as a sustainable community under § 6–205 of this article. There is a Seed Community Development Anchor Institution Fund. 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. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. 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. To be eligible for a grant or loan, an anchor institution shall provide evidence of matching funds. The Department shall award grants and loans from the Fund on a competitive basis. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. 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. 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. 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. 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.

In this section, “Fund” means the Continuing the CORE Partnership Fund. There is a Continuing the CORE Partnership Fund. 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. The Secretary shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under subsection (j) of this section; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used for: the purpose outlined in subsection (c) of this section; and administrative expenses. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the General Fund of the State. Expenditures from the Fund may be made only in accordance with the State budget. For fiscal year 2020, the Governor may include in the annual budget bill an appropriation of $30,000,000 to the Fund. For fiscal years 2021 through 2024, the Governor may include in the annual budget bill an appropriation of $25,000,000 to the Fund. 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.

In this section, “Fund” means the Housing Innovation Fund. There is a Housing Innovation Fund. 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. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. 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. 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. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the General Fund of the State. Expenditures from the Fund may be made only in accordance with the State budget. 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. 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. 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.