In this subtitle the following words have the meanings indicated. “Child care center” has the meaning stated in § 9.5–401(c) of the Education Article. “Family of limited income” means a family that meets the qualifications under § 4–707 of this subtitle. “Fund” means the Special Loan Programs Fund under Subtitle 5 of this title. “Grant Program” means the Lead Hazard Reduction Grant Program. “Lead hazard reduction activity” means measures to reduce or eliminate lead–based paint hazards in accordance with State or federal standards. “Lead hazard reduction activity” includes: 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; 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; 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; associated testing, preparing, cleaning, protecting workers, disposing, and post–lead hazard reduction clearance testing; and testing an innovative or unproven method of lead hazard reduction. “Loan Program” means the Lead Hazard Reduction Loan Program.

The General Assembly finds that: lead paint is present in a large percentage of residential properties in the State, particularly residential rental properties constructed before 1950; lead paint on the friction surfaces of windows is a leading cause of lead poisoning; 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 reduction or elimination of lead in the environment will reduce: the risk of lead poisoning of children and pregnant women; the incidence of learning disabilities and behavioral problems in children who live in older housing; and the cost of publicly financed medical care.

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.

The Department may establish: loan fees and charges; maximum loan or grant amounts for lead hazard reduction activities; and guidelines that give financing priority to lead hazard reduction activities that include replacing windows containing lead-based paint on friction surfaces. 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. The Department may limit the amount of money that a political subdivision may request under paragraph (1) of this subsection.

The Department shall: administer the Grant Program and the Loan Program; and establish eligibility guidelines for grants and loans.

The Department shall adopt regulations to carry out the Grant Program and the Loan Program.

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. The factors that the Secretary shall consider in setting limits under subsection (a) of this section shall include: the family income deemed available for housing; the size of the family; the ability of the family to compete successfully in the private housing market; the cost and condition of available housing; and relevant standards and definitions under federal and State housing programs.

There is a Lead Hazard Reduction Grant Program. The Department may make a grant solely to finance a lead hazard reduction activity that: is a program that tests innovative or unproven methods of lead hazard reduction; or is in a residential property in an area designated by the Department to have a concentration of: families of limited income; and residential property constructed before 1950; or 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. The Department may establish standards to determine the eligibility of a lead hazard reduction activity for a grant under the Grant Program. The standards may call for consideration of: the extent to which the lead hazard reduction activity benefits families of limited income; 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 whether the grant finances research into innovative or unproven methods for lead hazard reduction. 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. The Department may require that all or part of a grant under the Grant Program be repaid when conditions specified by the Department occur.

There is a Lead Hazard Reduction Loan Program. The Department may make a loan to finance lead hazard reduction activity. A loan under the Loan Program: may be secured by a mortgage lien or other security interest acceptable to the Department; and may include terms that the Department considers appropriate. For a loan made under the Loan Program, the Department may: defer payment of principal and interest; and establish interest rates as low as 0%. 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. 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.

In reviewing an application for a loan or grant, the Department shall consider: the needs of the beneficiaries of the proposed lead hazard reduction activity; the capacity of the applicant to repay a loan; the overall public benefit; the impact on the surrounding neighborhood or community; and any other factor that the Department finds relevant.

In this section, “Committee” means the Lead Hazard Advisory Committee. There is a Lead Hazard Advisory Committee. The Committee consists of the following seven members: the Secretary of Housing and Community Development, or the Secretary’s designee; the Secretary of the Environment, or the Secretary’s designee; the Secretary of Health, or the Secretary’s designee; and four members appointed by the Governor: a member of the Lead Poisoning Prevention Commission; a representative of owners of residential rental property built before 1950; a representative of a child, youth, or health advocacy group; and a member of the public who has an interest in lead in the environment. The term of an appointed member of the Committee is 4 years. The terms of the appointed members are staggered as required by the terms provided for members of the Committee on October 1, 2005. At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. 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. The Secretary or the Secretary’s designee is the chair of the Committee. Each member of the Committee is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. In consultation with the Committee, the Department shall develop regulations, policies, and guidelines to carry out the Grant Program and the Loan Program.

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. 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. 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.