<section article="ghs" article_name="Housing and Community Development" number="6-101" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="1" subtitle_name="Division Established"> <level label="a"> <text>There is a Division of Neighborhood Revitalization.</text> </level> <level label="b"> <text>The Division of Neighborhood Revitalization includes the Neighborhood Business Development Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-102" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="1" subtitle_name="Division Established"> <level label="a"> <text>The Division of Neighborhood Revitalization shall administer commercial and mixed–use revitalization programs to encourage physical and organizational improvements to business areas.</text> </level> <level label="b"> <text>To carry out commercial and mixed–use revitalization programs, the Division of Neighborhood Revitalization shall administer State and federal grants and loans and other financial assistance to:</text> <level label="1"> <text>political subdivisions, local public agencies, nonprofit organizations, neighborhood or community organizations, or private parties; or</text> </level> <level label="2"> <text>corporations or foundations whose net earnings are invested to foster, encourage, help, or carry out community assistance activities, projects, or programs.</text> </level> </level> <level label="c"> <text>The Department may:</text> <level label="1"> <text>charge and collect from a project applicant or recipient of financial assistance under this title:</text> <level label="i"> <text>origination, application, and processing fees; and</text> </level> <level label="ii"> <text>any other charges, fees, or reimbursements incidental to a project application or providing financial assistance; and</text> </level> </level> <level label="2"> <text>include the fees and charges listed in this section in the amount of financial assistance.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-103" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="1" subtitle_name="Division Established"> <level label="a"> <text>A commercial or mixed-use revitalization program provides assistance for downtown or business area commercial management, promotion, and revitalization.</text> </level> <level label="b"> <text>Assistance may be in an area such as:</text> <level label="1"> <text>market surveying, grantsmanship, organization, economic development, design, or similar services; or</text> </level> <level label="2"> <text>facilitating establishment of a commercial district management authority.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-104" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="1" subtitle_name="Division Established"> <level label="a"> <level label="1"> <text>The General Assembly finds that the State must have sustainable communities in order to:</text> <level label="i"> <text>preserve and protect the State’s natural resources; and</text> </level> <level label="ii"> <text>achieve the State’s economic growth, resource protection, and planning policy in § 5–7A–01 of the State Finance and Procurement Article.</text> </level> </level> <level label="2"> <text>The General Assembly finds that sustainable communities are places where public and private investments and partnerships achieve:</text> <level label="i"> <text>development of a healthy local economy;</text> </level> <level label="ii"> <text>protection and appreciation of historic and cultural resources;</text> </level> <level label="iii"> <text>a mix of land uses;</text> </level> <level label="iv"> <text>affordable and sustainable housing and job options; and</text> </level> <level label="v"> <text>growth and development practices that protect the environment and conserve air, water, and energy resources, encourage walkability and recreational opportunities, and, where available, create access to transit.</text> </level> </level> </level> <level label="b"> <text>It is the intent of the General Assembly that the community legacy and neighborhood business development programs:</text> <level label="1"> <text>be used to create, enhance, support, and revitalize sustainable communities across the State; and</text> </level> <level label="2"> <text>be coordinated with other State programs, such as the Sustainable Communities Tax Credit Program established under Title 5A, Subtitle 3 of the State Finance and Procurement Article, in order to maximize the State’s investment in sustainable communities.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-201" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Application” means an application to the Secretary that includes a request to:</text> <level label="1"> <text>designate an area as a sustainable community;</text> </level> <level label="2"> <text>approve a sustainable community plan; or</text> </level> <level label="3"> <text>approve a community legacy project.</text> </level> </level> <level label="c"> <text>“Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.</text> </level> <level label="d"> <text>“Community development organization” means an entity that meets the qualifications of § 6–203 of this subtitle.</text> </level> <level label="e"> <text>“Community legacy agreement” means an agreement between the Department and a sponsor to develop a sustainable community plan or to implement one or more community legacy projects in a designated sustainable community or an eligible opportunity zone.</text> </level> <level label="f"> <text>“Community legacy project” includes a project in a sustainable community or an eligible opportunity zone to:</text> <level label="1"> <text>create, improve, or preserve housing opportunities by acquiring, constructing, rehabilitating, or improving new or existing residential properties;</text> </level> <level label="2"> <text>demolish buildings or improvements strategically to enhance the use of land;</text> </level> <level label="3"> <text>create, improve, or preserve commercial or mixed–use development, including an appropriate combination of properties related to business, housing, open–space, and institutional uses;</text> </level> <level label="4"> <text>develop public infrastructure that is incidental to the implementation of a community legacy project, such as streets, parking, public utilities, landscaping, lighting, and improvements to pedestrian and bicycle circulation;</text> </level> <level label="5"> <text>encourage and develop cooperative ownership or control of open space;</text> </level> <level label="6"> <text>develop or create strategies designed to increase investment in existing communities, including outreach activities to attract business, capital, residents, and visitors and the development and maintenance of resources directly related to the development of a sustainable community plan or the implementation of a community legacy project;</text> </level> <level label="7"> <text>engage in landbanking or otherwise acquire or improve vacant buildings or unimproved land;</text> </level> <level label="8"> <text>provide financial assistance for neighborhood intervention projects; or</text> </level> <level label="9"> <text>develop other plans or implement other projects as the Department considers necessary to further the purposes of this subtitle.</text> </level> </level> <level label="g"> <text>“Eligible opportunity zone” means an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code that is located in Allegany County, Garrett County, Somerset County, or Wicomico County.</text> </level> <level label="h"> <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="i"> <text>“Landbanking” means acquiring or holding improved and unimproved property:</text> <level label="1"> <text>in anticipation of future development of the property; or</text> </level> <level label="2"> <text>to keep the future use of the property and improvements affordable.</text> </level> </level> <level label="j"> <text>“Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.</text> </level> <level label="k"> <text>“Program” means the Community Legacy Program established by this subtitle.</text> </level> <level label="l"> <text>“Sustainable community” means the part of a priority funding area that:</text> <level label="1"> <text>as determined by the Sustainable Growth Subcabinet, satisfies the requirements of § 6–205 of this subtitle;</text> </level> <level label="2"> <text>has been designated as a BRAC Revitalization and Incentive Zone under Title 5, Subtitle 13 of the Economic Development Article; or</text> </level> <level label="3"> <text>has been designated a transit–oriented development under § 7–101 of the Transportation Article.</text> </level> </level> <level label="m"> <text>“Sustainable community plan” means a plan consisting of one or more community legacy projects or other revitalization projects to prevent or reverse the decline of or disinvestment in a sustainable community through improvements in residential, commercial, or other public or private properties.</text> </level> <level label="n"> <text>“Sustainable Growth Subcabinet” means the subcabinet established under § 9–1406 of the State Government Article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-202" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>There is a Community Legacy Program.</text> </level> <level label="b"> <text>The Department shall administer the Program.</text> </level> <level label="c"> <text>The purposes of the Program are to:</text> <level label="1"> <text>preserve existing communities as desirable places to live and conduct business to reduce outward pressure for sprawl development; and</text> </level> <level label="2"> <text>provide financial assistance to sponsors or their designees to develop sustainable community plans or community legacy projects.</text> </level> </level> <level label="d"> <text>The Program shall encourage partnerships among the federal government, the State government, political subdivisions, and community development organizations to develop and implement sustainable community plans and community legacy projects.</text> </level> <level label="e"> <text>A sustainable community plan or a community legacy project may be sponsored by a political subdivision, a group of political subdivisions, a community development organization, or a community development financial institution.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-203" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <text>A corporation, foundation, or other legal entity qualifies as a community development organization if:</text> <level label="1"> <text>its purpose is to improve the physical, economic, or social environment of the area where it operates; and</text> </level> <level label="2"> <text>no part of its net earnings inures to the benefit of a private shareholder or individual holding an interest in that entity.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-204" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>A sponsor may file one or more applications in accordance with the schedules that the Department establishes.</text> </level> <level label="b"> <text>An application shall set forth:</text> <level label="1"> <text>a description of one or more sustainable communities where the sponsor proposes to develop a sustainable community plan or to carry out a community legacy project using the standards listed in § 6–205 of this subtitle;</text> </level> <level label="2"> <text>a detailed description of the proposed sustainable community plan or proposed community legacy project;</text> </level> <level label="3"> <text>the amount and type of financial assistance sought;</text> </level> <level label="4"> <text>the ability of the sponsor to carry out the proposed sustainable community plan or community legacy project;</text> </level> <level label="5"> <text>the strength and quality of partnerships created among the federal government, the State government, political subdivisions, community development organizations, and other private organizations to develop the sustainable community plan or carry out the community legacy project, including:</text> <level label="i"> <text>financial support;</text> </level> <level label="ii"> <text>dedication of staff and resources; and</text> </level> <level label="iii"> <text>commitment to and development of local smart growth policies;</text> </level> </level> <level label="6"> <text>proposed benchmarks for evaluating whether the proposed sustainable community plan or community legacy project results in a desired outcome for a proposed sustainable community, such as:</text> <level label="i"> <text>stabilizing it;</text> </level> <level label="ii"> <text>reversing its social, economic, or physical decline; or</text> </level> <level label="iii"> <text>encouraging growth in it; and</text> </level> </level> <level label="7"> <text>the process used to seek and receive public input on the proposed sustainable community plan or community legacy project, including the nature and extent of public support or opposition.</text> </level> </level> <level label="c"> <level label="1"> <text>The Sustainable Growth Subcabinet, on the recommendation of the Secretary, may designate an area as a sustainable community.</text> </level> <level label="2"> <text>If the Sustainable Growth Subcabinet has not acted within 90 days of a recommendation from the Secretary, the Secretary may designate an area as a sustainable community without the approval of the Sustainable Growth Subcabinet.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-205" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>The Sustainable Growth Subcabinet, on the recommendation of the Secretary, may designate an area as a sustainable community if the sponsor demonstrates that past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment show a need for reinvestment in the area and if:</text> <level label="1"> <text>entities in the community, such as local governments, employers, educational institutions, civic organizations, community organizations, or cultural organizations, support the proposed sustainable community plan and have pledged resources to develop or implement it;</text> </level> <level label="2"> <text>the proposed sustainable community plan addresses the need for reinvestment in the area and will enhance the area, and give individuals of different incomes a range of housing options, employment opportunities, and other amenities;</text> </level> <level label="3"> <text>a community in the proposed area is culturally or historically significant;</text> </level> <level label="4"> <text>the proposed area is near a town center or a transportation center;</text> </level> <level label="5"> <text>the proposed sustainable community plan is consistent with and complements other existing or proposed projects for housing, commercial or community development, education, historic preservation, neighborhood revitalization, transportation, or other things significant to the comprehensive enhancement of the community; or</text> </level> <level label="6"> <text>there is a demonstrated need for financing assistance for small businesses, nonprofit organizations, or microenterprises.</text> </level> </level> <level label="b"> <level label="1"> <text>To maintain a sustainable community designation:</text> <level label="i"> <text>every 5 years a sponsor shall file an updated plan and application with the Department; and</text> </level> <level label="ii"> <text>the Secretary shall make designation recommendations for approval by the Sustainable Growth Subcabinet under § 6–204 of this subtitle.</text> </level> </level> <level label="2"> <text>The Department shall convene an interagency review team from the agencies of the Sustainable Growth Subcabinet to:</text> <level label="i"> <text>review applications and plans;</text> </level> <level label="ii"> <text>provide assistance and guidance to applicants; and</text> </level> <level label="iii"> <text>make recommendations to the Secretary.</text> </level> </level> <level label="3"> <text>The Sustainable Growth Subcabinet may redesignate an area as a sustainable community taking into consideration the factors in subsection (a) of this section.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-206" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>review each application and may request more information from the sponsor;</text> </level> <level label="2"> <text>accept public input on each application;</text> </level> <level label="3"> <text>submit each application to appropriate State units and appropriate members of the Sustainable Growth Subcabinet;</text> </level> <level label="4"> <text>consider any recommendation a State unit or member of the Sustainable Growth Subcabinet makes;</text> </level> <level label="5"> <text>consider geographic balance when reviewing applications; and</text> </level> <level label="6"> <text>give priority in awarding financial assistance to applicants that are likely to repay the financial assistance to a community development financial institution or to the Community Legacy Financial Assistance Fund.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department shall provide written notice to the political subdivision in which the proposed project is located.</text> </level> <level label="2"> <text>Except as provided in paragraph (5) of this subsection, the Department may not approve an application unless the political subdivision in which the proposed project is located approves the application by:</text> <level label="i"> <text>resolution; or</text> </level> <level label="ii"> <text>letter, delivered to the Department by the political subdivision’s authorized designee, expressing support for the plan or project.</text> </level> </level> <level label="3"> <text>If an application affects a sustainable community or an eligible opportunity zone entirely within a municipal corporation, the approval must come from the municipal corporation rather than the surrounding county.</text> </level> <level label="4"> <text>If an application affects a sustainable community or an eligible opportunity zone within more than one political subdivision, each political subdivision must approve it by:</text> <level label="i"> <text>resolution; or</text> </level> <level label="ii"> <text>letter, delivered to the Department by the political subdivision’s authorized designee, expressing support for the plan or project.</text> </level> </level> <level label="5"> <text>If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.</text> </level> </level> <level label="c"> <text>The Secretary shall award financial assistance to a sponsor or a sponsor’s designee:</text> <level label="1"> <text>in the amount and of the type that the Secretary determines; and</text> </level> <level label="2"> <text>under the terms of a community legacy agreement.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-207" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>The Department and the sponsor shall execute a community legacy agreement.</text> </level> <level label="b"> <text>The sponsor shall comply with the terms of the community legacy agreement and any regulations the Department adopts to carry out this subtitle.</text> </level> <level label="c"> <text>Not more than 15% of the total financial assistance that the Program provides may be used for noncapital expenditures.</text> </level> <level label="d"> <text>The Department may exercise any remedy provided under the community legacy agreement or by law if a sponsor:</text> <level label="1"> <text>violates any provision of the community legacy agreement; or</text> </level> <level label="2"> <text>ceases to meet the requirements of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-208" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>Subject to this section, the Department has the powers necessary or desirable to implement the Program.</text> </level> <level label="b"> <level label="1"> <text>The Department may determine the terms and conditions for financial assistance awarded under § 6–206(c) of this subtitle.</text> </level> <level label="2"> <text>Financial assistance may be secured by a mortgage, lien, or security interest that is superior to or subordinate to other mortgages, liens, or security interests.</text> </level> <level label="3"> <text>The Department may establish time limits for the use of financial assistance.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department may enforce the terms and conditions of the financial assistance given under this subtitle.</text> </level> <level label="2"> <text>Notwithstanding any other law, if a loan or grant is secured by a first or subordinate mortgage or other lien, the Department may:</text> <level label="i"> <text>begin an action to protect or enforce any right given by law, a contract, or other agreement;</text> </level> <level label="ii"> <text>foreclose on property;</text> </level> <level label="iii"> <text>purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;</text> </level> <level label="iv"> <text>settle or compromise any debt or obligation owed to the Department;</text> </level> <level label="v"> <text>pay the principal of and interest on any obligation incurred in connection with the property, and dispose of or otherwise deal with the property to protect the interests of the Program; or</text> </level> <level label="vi"> <text>release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Department may contract with any person, including a private property manager, mortgage servicer, architect, engineer, or other property consultant, or with any governmental unit, for property or services necessary to operate the Program or to implement community legacy projects.</text> </level> <level label="2"> <text>The Department may make agreements with other governmental units to establish partnerships to carry out the Program.</text> </level> <level label="3"> <text>The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid or participate in or administer a federal program.</text> </level> </level> <level label="e"> <text>In connection with loans that it makes, the Department may:</text> <level label="1"> <text>require and obtain appraisals, credit information, and other pertinent information; and</text> </level> <level label="2"> <text>charge interest.</text> </level> </level> <level label="f"> <text>When it is consistent with the best interests of the State to do so, the Department may consent to the modification of any provision of any loan or other financial assistance.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-209" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>The purposes of a neighborhood intervention project are to provide financial assistance for:</text> <level label="1"> <text>buying properties that need rehabilitation and redeveloping the properties through rehabilitation, demolition, reconstruction, or re–use; or</text> </level> <level label="2"> <text>demolishing property improvements and preparing property for revitalization, redevelopment, or re–use.</text> </level> </level> <level label="b"> <text>To be eligible for financial assistance for a neighborhood intervention project, an applicant shall be:</text> <level label="1"> <text>a political subdivision; or</text> </level> <level label="2"> <text>a community development finance institution.</text> </level> </level> <level label="c"> <text>To be eligible for financial assistance, the applicant must provide evidence at the time of application that:</text> <level label="1"> <text>the applicant has a legal interest in the property through:</text> <level label="i"> <text>ownership of the property;</text> </level> <level label="ii"> <text>a contract, option, or other legal right to acquire the property; or</text> </level> <level label="iii"> <text>the right to demolish the improvements on the property;</text> </level> </level> <level label="2"> <text>the applicant intends to revitalize, redevelop, sell, or re–use the property as part of a redevelopment strategy for the property or a redevelopment plan;</text> </level> <level label="3"> <text>the applicant has complied with the requirements of §§ 5A–325 and 5A–326 of the State Finance and Procurement Article and § 13–1112(b) of the Financial Institutions Article;</text> </level> <level label="4"> <text>the financial assistance from the Program is the least amount necessary to complete the project; and</text> </level> <level label="5"> <text>the project meets any other condition that the Department may require under this subtitle.</text> </level> </level> <level label="d"> <text>Unless waived by the Secretary, a neighborhood intervention project shall meet the additional following requirements:</text> <level label="1"> <text>the project shall be located in a sustainable community and be a part of a sustainable community plan in accordance with §§ 6–204(b)(1) and 6–205 of this subtitle; and</text> </level> <level label="2"> <text>for a project under subsection (a)(2) of this section, the applicant shall agree to repay the financial assistance to the Community Legacy Financial Assistance Fund, up to the amount the applicant receives from:</text> <level label="i"> <text>the net proceeds of the sale of the property on which the demolition took place; or</text> </level> <level label="ii"> <text>any payment to the applicant relating to the property, including any payment for the costs of demolishing the improvements on the property.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>The Secretary may not allocate annually more than 15% of the Community Legacy Financial Assistance Fund to neighborhood intervention projects.</text> </level> <level label="2"> <text>The Secretary may not award more than $500,000 for any neighborhood intervention project.</text> </level> <level label="3"> <text>The restrictions in paragraphs (1) and (2) of this subsection do not apply to projects approved by the Secretary in the case of an emergency or when the project requires urgent approval if the project is funded from the reserve established under § 6–211(h) of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-210" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>The sponsor shall submit to the Department quarterly progress reports on the development of a sustainable community plan or the implementation of a community legacy project.</text> </level> <level label="b"> <level label="1"> <text>The Department shall submit an annual report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly on or before each October 31.</text> </level> <level label="2"> <text>The report shall include:</text> <level label="i"> <text>the financial status of the Program for the preceding fiscal year, including the amount and type of financial assistance encumbered and disbursed;</text> </level> <level label="ii"> <text>the number of applications received;</text> </level> <level label="iii"> <text>the number and location of sustainable communities designated; and</text> </level> <level label="iv"> <text>a summary of the quarterly reports submitted by sponsors under subsection (a) of this section.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-211" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>In this section, “Fund” means the Community Legacy Financial Assistance Fund.</text> </level> <level label="b"> <text>There is a Community Legacy Financial Assistance Fund.</text> </level> <level label="c"> <text>The Fund shall be used to carry out this subtitle.</text> </level> <level label="d"> <level label="1"> <text>The Secretary shall administer the Fund in accordance with this subtitle.</text> </level> <level label="2"> <text>The State Treasurer shall hold and the Comptroller shall account for the Fund.</text> </level> </level> <level label="e"> <text>The Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </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>earnings from the investment of money in the Fund;</text> </level> <level label="3"> <text>repayments and prepayments of financial assistance provided by the Program; and</text> </level> <level label="4"> <text>any other money accepted for the benefit of the Fund from any governmental or private source.</text> </level> </level> <level label="g"> <text>Notwithstanding any other law, the State Treasurer may invest money in the Fund in the same way as money is invested by the State Retirement and Pension System.</text> </level> <level label="h"> <text>In any fiscal year, the Secretary may hold up to 10% of the money in the Fund in reserve for emergency use or urgent projects in accordance with this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-212" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="2" subtitle_name="Community Legacy Program"> <level label="a"> <text>Subject to subsection (b) of this section, a sustainable community shall receive priority for State funding under the:</text> <level label="1"> <text>Community Legacy Program under this subtitle;</text> </level> <level label="2"> <text>Sustainable Communities Tax Credit Program for commercial properties under Title 5A, Subtitle 3 of the State Finance and Procurement Article;</text> </level> <level label="3"> <text>Neighborhood Business Development Program under Subtitle 3 of this title;</text> </level> <level label="4"> <text>Maryland Historical Trust Grant Program under Title 5A, Subtitle 3 of the State Finance and Procurement Article; and</text> </level> <level label="5"> <text>Speaker Adrienne A. Jones African American Heritage Preservation Program under Title 5A, Subtitle 3 of the State Finance and Procurement Article.</text> </level> </level> <level label="b"> <text>Priority for State funding provided under subsection (a) of this section is available in a sustainable community only if:</text> <level label="1"> <text>a political subdivision issues bonds, notes, or other similar instruments for that sustainable community under:</text> <level label="i"> <text>Title 21, Subtitle 4, Part II of the Local Government Article;</text> </level> <level label="ii"> <text>Title 21, Subtitle 5 of the Local Government Article; or</text> </level> <level label="iii"> <text>Title 12, Subtitle 2 of the Economic Development Article; or</text> </level> </level> <level label="2"> <text>a political subdivision demonstrates to the appropriate unit of State government that the political subdivision has funded infrastructure improvements in that sustainable community.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-301" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Development costs” means the costs incurred to develop, redevelop, or expand a neighborhood business development project.</text> </level> <level label="2"> <text>“Development costs” includes the costs of:</text> <level label="i"> <text>necessary studies, surveys, plans, and specifications;</text> </level> <level label="ii"> <text>architectural, engineering, or other special services, including flood plain studies, environmental audits, and critical area or wetland assessments;</text> </level> <level label="iii"> <text>land and improvements;</text> </level> <level label="iv"> <text>site preparation;</text> </level> <level label="v"> <text>construction, reconstruction, and rehabilitation;</text> </level> <level label="vi"> <text>machinery, equipment, and furnishings;</text> </level> <level label="vii"> <text>essential operating costs, including working capital and occupancy expenses;</text> </level> <level label="viii"> <text>indemnity and surety bonds and premiums on insurance;</text> </level> <level label="ix"> <text>temporary relocation expenses; and</text> </level> <level label="x"> <text>other costs determined to be acceptable by the Department.</text> </level> </level> </level> <level label="c"> <text>“Eligible opportunity zone” means an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code that is located in Allegany County, Garrett County, Somerset County, or Wicomico County.</text> </level> <level label="d"> <text>“Food desert” means the part of a priority funding area or an eligible opportunity zone designated by the Secretary under § 6–308(c) of this subtitle.</text> </level> <level label="e"> <text>“Fund” means the Neighborhood Business Development Fund.</text> </level> <level label="f"> <text>“Microenterprise” means a business that qualifies as a microenterprise under § 6–302 of this subtitle.</text> </level> <level label="g"> <text>“Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.</text> </level> <level label="h"> <text>“Program” means the Neighborhood Business Development Program.</text> </level> <level label="i"> <level label="1"> <text>“Project” means a neighborhood business development project that receives financial assistance from the Fund.</text> </level> <level label="2"> <text>“Project” includes:</text> <level label="i"> <text>a microenterprise project that receives financial assistance from the Fund; and</text> </level> <level label="ii"> <text>a food desert project that receives financial assistance from the Fund.</text> </level> </level> </level> <level label="j"> <text>“Small business” means a business that qualifies as a small business under § 6–302 of this subtitle.</text> </level> <level label="k"> <text>“Sustainable community” means the part of a priority funding area that:</text> <level label="1"> <text>as determined by the Sustainable Growth Subcabinet, satisfies the requirements of § 6–205 of this title;</text> </level> <level label="2"> <text>has been designated as a BRAC Revitalization and Incentive Zone under Title 5, Subtitle 13 of the Economic Development Article; or</text> </level> <level label="3"> <text>has been designated a transit–oriented development under § 7–101 of the Transportation Article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-302" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <text>A business qualifies as a small business or a microenterprise if the number of its employees and the amount of its annual receipts do not exceed limits that the Department sets by regulation for a small business or a microenterprise.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-303" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>There is a Neighborhood Business Development Program.</text> </level> <level label="b"> <text>The purposes of the Program are:</text> <level label="1"> <text>in priority funding areas or eligible opportunity zones, to:</text> <level label="i"> <text>help develop, redevelop, or expand small businesses and microenterprises;</text> </level> <level label="ii"> <text>stimulate investment by the private sector;</text> </level> <level label="iii"> <text>invest in revitalization projects for small businesses and microenterprises; and</text> </level> <level label="iv"> <text>stimulate political subdivisions to participate in developing and expanding small businesses and microenterprises; and</text> </level> </level> <level label="2"> <text>in food deserts or parts of priority funding areas or eligible opportunity zones that serve food deserts, to help create and retain small businesses and other food–related enterprises that provide fresh fruits, vegetables, and other healthy foods to residents in the food desert.</text> </level> </level> <level label="c"> <text>The Program includes:</text> <level label="1"> <text>the Business Development Program; and</text> </level> <level label="2"> <text>the Capital Access Program.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-304" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>There is a Business Development Program in the Neighborhood Business Development Program.</text> </level> <level label="b"> <text>The Business Development Program shall provide financial assistance to projects in priority funding areas or eligible opportunity zones.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-305" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <level label="1"> <text>A small business, nonprofit organization, or microenterprise may apply for financial assistance under the Business Development Program.</text> </level> <level label="2"> <text>The Department shall review each application.</text> </level> </level> <level label="b"> <text>An applicant may qualify for financial assistance for a project in a priority funding area or an eligible opportunity zone if the application demonstrates that:</text> <level label="1"> <text>the financial assistance from the Fund is the minimum amount necessary to make the project financially feasible;</text> </level> <level label="2"> <text>the project is ready to proceed when it receives financial assistance from the Business Development Program; and</text> </level> <level label="3"> <text>any food desert project includes a plan to seek out sources of Maryland–grown produce and Maryland produced foods.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department shall provide written notice to the political subdivision in which the proposed project is located.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, the Department may not approve an application unless the political subdivision in which the proposed project is located approves the application by:</text> <level label="i"> <text>resolution; or</text> </level> <level label="ii"> <text>letter, delivered to the Department by the political subdivision’s authorized designee, expressing support of the plan or project.</text> </level> </level> <level label="3"> <text>If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 15 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.</text> </level> </level> <level label="d"> <text>Financial assistance under the Business Development Program may be provided to a small business, nonprofit organization, or microenterprise as:</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 interest rate 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;</text> </level> <level label="7"> <text>any other form of credit enhancement; or</text> </level> <level label="8"> <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 Department.</text> </level> </level> <level label="e"> <level label="1"> <text>The Department shall reserve at least the lesser of $5,000,000 or the annual capital appropriation for the Fund to make financial assistance available to projects located in sustainable communities.</text> </level> <level label="2"> <text>The Department may meet the funding obligations for sustainable communities and food deserts by using any financial assistance available to the Department that is authorized to be used for these projects.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-307" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>Financial assistance under the Business Development Program shall be on the terms that the Department considers necessary to make the project financially feasible.</text> </level> <level label="b"> <text>Financial assistance under the Business Development Program may be used for:</text> <level label="1"> <text>a part of the development costs of a project;</text> </level> <level label="2"> <text>the development costs, working capital, or business expenses of a microenterprise project; or</text> </level> <level label="3"> <text>in accordance with § 6–308.3 of this subtitle, small loans for food desert projects.</text> </level> </level> <level label="c"> <text>The Department may require that financial assistance under the Business Development Program be secured by a mortgage or other security instrument, which may be subordinate to other security interests.</text> </level> <level label="d"> <text>The Department may modify the interest rate, the time or amount of payment, or any other term of a grant or loan to facilitate the successful completion or operation of a project.</text> </level> <level label="e"> <text>The Department may contract for services related to the Business Development Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-308" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>administer the Business Development Program;</text> </level> <level label="2"> <text>adopt regulations to carry out the Business Development Program, including a process to designate an area as a food desert under subsection (c) of this section; and</text> </level> <level label="3"> <text>make a reasonable, good faith effort to make 25% of the Business Development Program loans and grants to microenterprises.</text> </level> </level> <level label="b"> <text>The Department may:</text> <level label="1"> <text>sell, assign, or otherwise dispose of a Program loan or revenue from a loan on terms and conditions acceptable to the Department, including selling loans at a discount, if the maximum sale proceeds in any fiscal year do not exceed limits that the Department sets by regulation;</text> </level> <level label="2"> <text>apply the proceeds received from a sale, assignment, or other disposition under item (1) of this subsection to the Fund;</text> </level> <level label="3"> <text>pledge a Program loan as security for any:</text> <level label="i"> <text>business project loan, bond, or security that is issued, made, or purchased by the Community Development Administration under Title 4 of this article; or</text> </level> <level label="ii"> <text>insurance, guaranty, or credit enhancement on a Program loan or business project under § 4–223 of this article; and</text> </level> </level> <level label="4"> <text>without approval or execution by the Board of Public Works, sell or assign any equity interest acquired under § 6–305(d) of this subtitle.</text> </level> </level> <level label="c"> <text>The Secretary, on the recommendation of the Interagency Food Desert Advisory Committee established under § 6–308.2 of this subtitle, may designate an area as a food desert after considering the following factors:</text> <level label="1"> <text>availability of fresh fruit, vegetables, and other healthy foods in the area;</text> </level> <level label="2"> <text>income levels of local residents;</text> </level> <level label="3"> <text>transportation needs of local residents and the availability of public transportation;</text> </level> <level label="4"> <text>comments from local governments; and</text> </level> <level label="5"> <text>any other factors that the Department considers relevant.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-308.1" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>If the Department determines that an entity is capable of administering financial assistance under the Program, the entity may originate and administer financial assistance in accordance with standards the Department adopts by regulation.</text> </level> <level label="b"> <level label="1"> <text>The Department shall adopt regulations to establish standards for determining the eligibility of an entity to administer financial assistance under the 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 financial assistance; and</text> </level> <level label="ii"> <text>the capability of the professional staff to:</text> <level label="1"> <text>determine financial capacity of a borrower;</text> </level> <level label="2"> <text>originate financial assistance; and</text> </level> <level label="3"> <text>evaluate applications for financial assistance.</text> </level> </level> </level> </level> <level label="c"> <text>The Department may:</text> <level label="1"> <text>help train employees of an approved entity to administer financial assistance in accordance with standards that the Department adopts;</text> </level> <level label="2"> <text>charge and collect from a borrower:</text> <level label="i"> <text>reasonable origination, application, and processing fees; and</text> </level> <level label="ii"> <text>other charges, fees, or reimbursements incidental to the financial assistance;</text> </level> </level> <level label="3"> <text>include the fees and charges listed in item (2) of this subsection in the amount of financial assistance;</text> </level> <level label="4"> <text>pay an approved entity a reasonable origination, application, and processing fee for the financial assistance that is originated by the approved entity;</text> </level> <level label="5"> <text>directly fund the financial assistance that is originated by an approved entity;</text> </level> <level label="6"> <text>provide financial assistance to an approved entity for the purpose of the approved entity making the financial assistance in accordance with this subtitle;</text> </level> <level label="7"> <text>purchase or commit to purchase from approved entities any form of financial assistance that meets the requirements of this subtitle and any regulations adopted under this subtitle; and</text> </level> <level label="8"> <text>enter into agreements with approved entities to collectively lend money on a project that meets the requirements of this subtitle and any regulations adopted under this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-308.2" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>There is an Interagency Food Desert Advisory Committee.</text> </level> <level label="b"> <text>The Committee consists of the following seven members:</text> <level label="1"> <text>the Secretary, or the Secretary’s designee;</text> </level> <level label="2"> <text>the Secretary of Agriculture, or the Secretary’s designee;</text> </level> <level label="3"> <text>the Secretary of Planning, or the Secretary’s designee;</text> </level> <level label="4"> <text>the Secretary of Health, 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 Commerce, or the Secretary’s designee; and</text> </level> <level label="7"> <text>the Secretary of Education, or the Secretary’s designee.</text> </level> </level> <level label="c"> <text>The Secretary or the Secretary’s designee is the chair of the Committee.</text> </level> <level label="d"> <text>The Department shall provide staff for the Committee.</text> </level> <level label="e"> <text>The Committee shall:</text> <level label="1"> <text>advise and make recommendations to the Department on the development and adoption of regulations related to food desert projects;</text> </level> <level label="2"> <text>make recommendations to the Secretary on applications for designating an area as a food desert; and</text> </level> <level label="3"> <text>make recommendations for interagency coordination to reduce the number of food deserts and promote healthy food access for Maryland neighborhoods.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-308.3" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>If the Department determines that an entity is capable of administering a food desert project, the entity may originate and administer financial assistance to a food desert project in accordance with standards the Department adopts by regulation.</text> </level> <level label="b"> <text>The Department may:</text> <level label="1"> <text>pay an approved entity a reasonable origination, application, and processing fee for each food desert project that is originated by the approved entity;</text> </level> <level label="2"> <text>directly fund the financial assistance for a food desert project that is originated by an approved entity;</text> </level> <level label="3"> <text>provide financial assistance to an approved entity for the purpose of the approved entity providing financial assistance for a food desert project in accordance with this subtitle; and</text> </level> <level label="4"> <level label="i"> <text>provide small loans in amounts that are not more than $100,000 per loan to an approved entity for assistance in providing or maintaining access to healthy food in urban or rural food deserts, including by providing loans for:</text> <level label="1"> <text>refrigerators, freezers, and other equipment; and</text> </level> <level label="2"> <text>subject to subsection (c) of this section, operating costs incurred in providing access to healthy food in urban or rural food deserts; and</text> </level> </level> <level label="ii"> <text>work with intermediaries to administer the small loans authorized under item (i) of this paragraph.</text> </level> </level> </level> <level label="c"> <text>The Department shall forgive a loan for operating costs made under subsection (b)(4)(i)2 of this section after 5 years, if the loan recipient maintains continuous operations at the same location during that time.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-308.4" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>On or before December 1 of each year, the Department shall submit a report on the Program, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, the Senate Education, Health, and Environmental Affairs Committee, the House Appropriations Committee, and the House Environment and Transportation Committee.</text> </level> <level label="b"> <text>The report under subsection (a) of this section shall include:</text> <level label="1"> <text>the names of approved entities awarded financial assistance for food desert projects;</text> </level> <level label="2"> <text>the type of activities in which the approved entities are engaged;</text> </level> <level label="3"> <text>the location of the approved entity’s operation;</text> </level> <level label="4"> <text>the amount of each grant award;</text> </level> <level label="5"> <text>the number of employees employed by the approved entity;</text> </level> <level label="6"> <text>the basis for approving the grant;</text> </level> <level label="7"> <text>an explanation of how the approved entity’s operation advances the policy goal of reducing food deserts; and</text> </level> <level label="8"> <text>if available, how long the grantee’s operation stayed in business following the awarding of the grant.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-309" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>There is a Capital Access Program in the Neighborhood Business Development Program.</text> </level> <level label="b"> <text>The purposes of the Capital Access Program are to:</text> <level label="1"> <text>stimulate private sector lending to small businesses throughout the State; and</text> </level> <level label="2"> <text>encourage private lenders to provide for a reserve of money as additional security for private sector loans made under this section.</text> </level> </level> <level label="c"> <text>The Department may enter into a Capital Access Program participation agreement with each lender eligible to participate in the Capital Access Program.</text> </level> <level label="d"> <text>To be eligible to participate in the Capital Access Program, a lender:</text> <level label="1"> <text>shall be a federally insured financial institution, as defined in § 1-101 of the Financial Institutions Article, or another institution regulated by the Commissioner of Financial Regulation; and</text> </level> <level label="2"> <text>shall enter into a participation agreement with the Department that:</text> <level label="i"> <text>requires the lender to agree to:</text> <level label="1"> <text>enroll in the Capital Access Program loans that the lender makes to an eligible small business;</text> </level> <level label="2"> <text>establish a loan reserve account with a federally insured financial institution as additional security to cover losses of the lender on loans that the lender enrolls; and</text> </level> <level label="3"> <text>contribute money to the loan reserve account for each loan that the lender enrolls; and</text> </level> </level> <level label="ii"> <text>allows the lender to commingle in the reserve account contributions made for loans that the lender enrolls.</text> </level> </level> </level> <level label="e"> <text>To be eligible for a loan under the Capital Access Program, a borrower:</text> <level label="1"> <text>shall be a small business that meets the eligibility requirements set out in the Capital Access Program participation agreement between the borrower’s lender and the Department; and</text> </level> <level label="2"> <text>shall agree with the lender to contribute money to the loan reserve account that the lender establishes.</text> </level> </level> <level label="f"> <level label="1"> <text>The Department may use the Fund to contribute up to $1,000,000 per fiscal year to loan reserve accounts established under subsection (d) of this section.</text> </level> <level label="2"> <text>The contributions by the Department are exempt from the requirements of Title 6, Subtitle 2, and Titles 11 through 17, of the State Finance and Procurement Article.</text> </level> </level> <level label="g"> <level label="1"> <text>Enrolling a loan in the Capital Access Program does not pledge the faith, credit, or taxing power of the State, the Department, the Neighborhood Business Development Program, or the Fund.</text> </level> <level label="2"> <text>The State, the Department, the Neighborhood Business Development Program, and the Fund are not liable for losses of a lender on an enrolled loan, except to the extent of the loan reserve account that the lender establishes under the Capital Access Program.</text> </level> </level> <level label="h"> <text>A project financed by a loan enrolled in the Capital Access Program shall be in a priority funding area as required by Title 5, Subtitle 7B of the State Finance and Procurement Article.</text> </level> <level label="i"> <text>A lender shall treat a default on a loan enrolled in the Capital Access Program in the same way that the lender treats defaults on other loans.</text> </level> <level label="j"> <text>The Department may require that, before a lender withdraws money from a reserve account to cover losses on a defaulted enrolled loan, the lender agree that, if the reserve account fully covers the losses, the lender will assign to the Department or subrogate the Department to the right, title, and interest of the lender in and to:</text> <level label="1"> <text>the loan;</text> </level> <level label="2"> <text>collateral and security for the loan; and</text> </level> <level label="3"> <text>every other right of recovery in connection with the loan.</text> </level> </level> <level label="k"> <level label="1"> <text>After a default on a loan enrolled in the Capital Access Program, the Department may acquire, hold, improve, operate pending sale or other disposition, sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber property that secures or is collateral for all or part of the loan, including:</text> <level label="i"> <text>real property;</text> </level> <level label="ii"> <text>personal property; and</text> </level> <level label="iii"> <text>evidence of indebtedness.</text> </level> </level> <level label="2"> <text>The Department may act under this subsection:</text> <level label="i"> <text>in its name or in the name of the Neighborhood Business Development Program; and</text> </level> <level label="ii"> <text>notwithstanding Titles 10 through 17 of the State Finance and Procurement Article.</text> </level> </level> </level> <level label="l"> <text>The Department shall adopt regulations to carry out the Capital Access Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-310" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development Program"> <level label="a"> <text>There is a Neighborhood Business Development Fund.</text> </level> <level label="b"> <text>The Department shall use the Fund to:</text> <level label="1"> <text>operate and pay expenses of the Program; and</text> </level> <level label="2"> <text>provide financial assistance to small businesses, nonprofit organizations, and microenterprises.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department shall administer the Fund.</text> </level> <level label="2"> <text>The State Treasurer shall hold and the Comptroller shall account for the Fund.</text> </level> </level> <level label="d"> <text>The Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget for the Program;</text> </level> <level label="2"> <text>any repayment or prepayment of financial assistance under this subtitle or under the State Action Loans for Targeted Areas Program under former Article 83B, Title 4, Subtitle 6, of the Code;</text> </level> <level label="3"> <text>money transferred to the Fund from any other fund as provided in this article;</text> </level> <level label="4"> <text>money received from the sale, assignment, or other disposition of Program loans and equity interests;</text> </level> <level label="5"> <text>other money received by the Program under this subtitle or from the Community Development Administration under Subtitle 2 of this title; and</text> </level> <level label="6"> <text>investment earnings of the Fund.</text> </level> </level> <level label="f"> <text>The Fund shall be invested in the same way as other State money.</text> </level> <level label="g"> <text>With the approval of the Legislative Policy Committee and, subject to § 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 to:</text> <level label="1"> <text>any other fund established under this title;</text> </level> <level label="2"> <text>the Community Development Administration to provide financial assistance to business projects; and</text> </level> <level label="3"> <text>the Maryland Housing Fund under Title 3 of this article to provide insurance, credit enhancement, or a guaranty on:</text> <level label="i"> <text>a Program loan; or</text> </level> <level label="ii"> <text>a business project loan, bond, or security that is issued, made, or purchased by the Community Development Administration under Title 4 of this article.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-311" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="3" subtitle_name="Neighborhood Business Development 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 by an agreement relating to financial assistance under the Program.</text> </level> <level label="2"> <text>An applicant for financial assistance under the Program may not knowingly make or cause to be made any false statement or report to influence the action of the Department on an application or to influence any action of the Department affecting financial assistance already provided.</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="6-401" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Approved project” means a project that the Department approves under § 6–405 of this subtitle.</text> </level> <level label="c"> <text>“Business entity” means a person that conducts a trade or business in the State and is subject to:</text> <level label="1"> <text>the State income tax on individuals or corporations;</text> </level> <level label="2"> <text>the public service company franchise tax; or</text> </level> <level label="3"> <text>the insurance premiums tax.</text> </level> </level> <level label="d"> <text>“Individual” means an individual as defined under § 10–101 of the Tax – General Article.</text> </level> <level label="e"> <text>“Nonprofit organization” means a nonprofit corporation, foundation, or other legal entity that is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code.</text> </level> <level label="f"> <text>“Priority funding area” means a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.</text> </level> <level label="g"> <text>“Redevelopment assistance” means the money that nonprofit organizations spend for labor and materials used directly in the physical improvement of part or all of a priority funding area.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-402" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <text>There is a Neighborhood and Community Assistance Program.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-403" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <text>The purposes of the Neighborhood and Community Assistance Program are to:</text> <level label="1"> <text>help nonprofit organizations to carry out approved projects in priority funding areas;</text> </level> <level label="2"> <text>encourage business entities and individuals to invest in priority funding areas; and</text> </level> <level label="3"> <text>strengthen partnerships between public and private entities.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-404" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <level label="a"> <level label="1"> <text>For a contribution worth $500 or more in goods, money, or real property to an approved project, a business entity or an individual is entitled to a tax credit in the amount determined under subsection (b) of this section.</text> </level> <level label="2"> <text>No part of a tax credit under this section may be taken more than once.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the credit allowed to a business entity or an individual under this section equals 50% of the amount of contributions:</text> <level label="i"> <text>that the Department approves under subsection (c) of this section; and</text> </level> <level label="ii"> <text>that were made during the taxable year for which the credit is claimed.</text> </level> </level> <level label="2"> <text>The credit allowed under this section for any taxable year may not exceed the lesser of:</text> <level label="i"> <text>$250,000; and</text> </level> <level label="ii"> <text>the total amount of tax otherwise payable by the business entity or individual for the taxable year.</text> </level> </level> <level label="3"> <text>Any excess credit that would be allowed but for the limits of paragraph (2) of this subsection may be carried over and applied as a credit for up to 5 taxable years after the taxable year in which the contribution was made, until the full amount of the excess is used.</text> </level> </level> <level label="c"> <level label="1"> <text>To qualify for a credit for a contribution under this section, before making a contribution, a business entity or an individual shall apply for and receive approval of the contribution from the Department.</text> </level> <level label="2"> <text>Each application for approval of a contribution shall contain:</text> <level label="i"> <text>the name of the approved project to which the contribution will be made;</text> </level> <level label="ii"> <text>the amount of the contribution; and</text> </level> <level label="iii"> <text>a certification by an independent and unrelated third party as to the value of any nonmonetary contribution included or, for new goods, an invoice or receipt certifying the contribution’s net cost to the business entity or individual.</text> </level> </level> <level label="3"> <text>The Department may not approve an application if it determines that:</text> <level label="i"> <text>the maximum amount of contributions eligible for a tax credit for the project for the fiscal year will be exceeded by the sum of:</text> <level label="1"> <text>the amount of the proposed contribution; and</text> </level> <level label="2"> <text>the total amount of contributions previously approved for that project for the fiscal year; or</text> </level> </level> <level label="ii"> <text>the applicant has overstated the value of a nonmonetary contribution.</text> </level> </level> <level label="4"> <text>On or before January 31 of each year, the Department shall report to the Department of Assessments and Taxation, the Comptroller, and the Maryland Insurance Administration the contributions that the Department has approved under this section in the preceding calendar year.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-405" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <level label="a"> <level label="1"> <text>For each fiscal year, a nonprofit organization may submit to the Department, for approval under the Neighborhood and Community Assistance Program, a proposal for a project to provide services to a priority funding area.</text> </level> <level label="2"> <text>The project may include:</text> <level label="i"> <text>community services, including child care and recreational services;</text> </level> <level label="ii"> <text>educator workforce housing;</text> </level> <level label="iii"> <text>redevelopment assistance;</text> </level> <level label="iv"> <text>job training for individuals whose incomes do not exceed the upper income limits that the Secretary sets under § 4–212 of this article;</text> </level> <level label="v"> <text>education; and</text> </level> <level label="vi"> <text>crime prevention.</text> </level> </level> </level> <level label="b"> <text>A proposal under this section shall include:</text> <level label="1"> <text>the project to be conducted;</text> </level> <level label="2"> <text>the priority funding area that will benefit from the project;</text> </level> <level label="3"> <text>a description of the applicant’s experience and capabilities;</text> </level> <level label="4"> <text>the estimated costs of the project;</text> </level> <level label="5"> <text>a description of the plans for implementing the project; and</text> </level> <level label="6"> <text>any other information that the Department determines is necessary.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department shall provide written notice to the political subdivision or if the proposed project is an educator workforce housing development project, the local school system, in which the proposed project is located.</text> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection and except as provided in paragraph (5) of this subsection, the Department may not approve a proposal submitted under this section unless the proposal is approved by the governing body or authorized designee of:</text> <level label="i"> <text>each county that includes any of the priority funding area that benefits from the project, if the project is not in a municipal corporation;</text> </level> <level label="ii"> <text>each municipal corporation that includes any of the priority funding area that benefits from the project; or</text> </level> <level label="iii"> <text>each political subdivision that includes any of the priority funding area that benefits from the project, if the priority funding area is partly within and partly outside of any municipal corporation.</text> </level> </level> <level label="3"> <text>If the project is an educator workforce housing development project:</text> <level label="i"> <text>approval by a county board of education or an authorized designee of a local school system that benefits from a project is not required; but</text> </level> <level label="ii"> <text>the Department may not approve a proposal submitted under this section without notifying the county board of education or authorized designee of at least one local school system that benefits from the project in accordance with paragraph (1) of this subsection.</text> </level> </level> <level label="4"> <text>An approval shall:</text> <level label="i"> <text>be in writing; and</text> </level> <level label="ii"> <text>state the maximum amount of contributions to the approved project that are eligible for a tax credit under § 6–404 of this subtitle.</text> </level> </level> <level label="5"> <text>If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.</text> </level> <level label="6"> <text>The sum of contributions eligible for a tax credit under § 6–404 of this subtitle for all approved projects for a fiscal year may not exceed $3,500,000.</text> </level> </level> <level label="d"> <text>In approving or disapproving a proposal and in determining the maximum amount of contributions eligible for tax credits under § 6–404 of this subtitle, the Department:</text> <level label="1"> <text>shall consider:</text> <level label="i"> <text>the need for the project in relation to the need for other proposed projects;</text> </level> <level label="ii"> <text>the anticipated benefit to the priority funding area;</text> </level> <level label="iii"> <text>the capacity of the applicant to raise money for the project;</text> </level> <level label="iv"> <text>the readiness of the applicant to proceed with the project;</text> </level> <level label="v"> <text>the ability of the applicant to complete the project as proposed;</text> </level> <level label="vi"> <text>the geographic distribution of projects; and</text> </level> <level label="vii"> <text>any other relevant factors;</text> </level> </level> <level label="2"> <text>may give preference to a proposal that benefits:</text> <level label="i"> <text>a sustainable community under § 6–305 of this title; or</text> </level> <level label="ii"> <text>a neighborhood conservation district that is locally designated in coordination with the Department’s Neighborhood and Community Assistance Program;</text> </level> </level> <level label="3"> <text>may request data and assistance from other units of the State; and</text> </level> <level label="4"> <text>shall apportion among all approved projects the limit imposed by subsection (c)(6) of this section.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-406" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="4" subtitle_name="Neighborhood and Community Assistance Program"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-501" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.</text> </level> <level label="c"> <text>“Community development organization” means an entity that meets the requirements set forth under § 6–504(a) of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>“Financial assistance” means a grant, a loan, or an investment provided under this subtitle.</text> </level> <level label="2"> <text>“Financial assistance” includes:</text> <level label="i"> <text>an assurance;</text> </level> <level label="ii"> <text>a guarantee;</text> </level> <level label="iii"> <text>a prepayment of interest on a subordinate or superior loan or portion of a loan;</text> </level> <level label="iv"> <text>a reduction in the principal obligation of or rate of interest payable on a loan or a portion of a loan; and</text> </level> <level label="v"> <text>any other form of credit enhancement.</text> </level> </level> </level> <level label="e"> <text>“Program” means the Baltimore Regional Neighborhood Initiative Program.</text> </level> <level label="f"> <text>“Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-502" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>There is a Baltimore Regional Neighborhood Initiative Program.</text> </level> <level label="b"> <text>The Department shall administer the Program.</text> </level> <level label="c"> <text>The purpose of the Program is to:</text> <level label="1"> <text>provide strategic investment in local housing and businesses to encourage healthy, sustainable communities with a growing tax base and enhanced quality of life; and</text> </level> <level label="2"> <text>focus on areas where modest investment and coordinated strategies will have an appreciable neighborhood revitalization impact.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-503" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>The community enhancement projects eligible to receive Program funds include:</text> <level label="1"> <text>down payment assistance for homebuyers to purchase and rehabilitate homes;</text> </level> <level label="2"> <text>programs to acquire or rehabilitate vacant or blighted properties;</text> </level> <level label="3"> <text>programs to improve existing residential and business properties;</text> </level> <level label="4"> <text>programs to achieve energy efficiency through weatherization and energy retrofits;</text> </level> <level label="5"> <text>development of mixed–use projects that combine housing, retail, and office space;</text> </level> <level label="6"> <text>development or enhancement of community open space or public infrastructure;</text> </level> <level label="7"> <text>workforce and employment development programs; and</text> </level> <level label="8"> <text>strategic demolition.</text> </level> </level> <level label="b"> <text>Program funds may be used for operating costs necessary to implement a community enhancement project.</text> </level> <level label="c"> <text>The Secretary may establish additional community enhancement projects eligible to receive Program funds.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-504" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>A corporation, a foundation, or any other legal entity is a community development organization eligible to apply for Program funds if:</text> <level label="1"> <text>the purpose of the organization is to implement a clear revitalization strategy in a neighborhood or set of neighborhoods within Baltimore City or the inner–beltway communities of Baltimore County or Anne Arundel County; and</text> </level> <level label="2"> <text>no part of the organization’s net earnings inures to the benefit of a private shareholder or an individual holding an interest in the entity.</text> </level> </level> <level label="b"> <text>The community development organization’s application must contain a neighborhood revitalization plan that includes community enhancement projects located within a sustainable community.</text> </level> <level label="c"> <text>A community development organization may apply with another community development organization or with a community development financial institution that has the capacity and experience to assist in the financing of real estate projects within the community.</text> </level> <level label="d"> <text>The community enhancement projects for which a community development organization applies for Program funds may be located in more than one political subdivision.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-505" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <level label="1"> <text>A community development organization may apply to the Department to receive Program funds for community enhancement projects.</text> </level> <level label="2"> <text>The Department shall establish the application process.</text> </level> <level label="3"> <text>The application shall contain:</text> <level label="i"> <text>the neighborhood revitalization plan;</text> </level> <level label="ii"> <text>a description of each community enhancement project;</text> </level> <level label="iii"> <text>organizational documents for the community development organization; and</text> </level> <level label="iv"> <text>any other information the Department requires.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Department, by regulation, shall establish a quantitative system to evaluate each application.</text> </level> <level label="2"> <text>The quantitative evaluation system shall evaluate each application based on:</text> <level label="i"> <text>the neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan;</text> </level> <level label="ii"> <text>the description of the community conditions and the appropriateness of outlined strategies to address those conditions;</text> </level> <level label="iii"> <text>the ability of each proposed community enhancement project to address identified challenges within the community; and</text> </level> <level label="iv"> <text>the capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing.</text> </level> </level> </level> <level label="c"> <text>The Department may give additional consideration to applications that include:</text> <level label="1"> <text>opportunities that promote compact redevelopment and connect housing and job opportunities with transportation options;</text> </level> <level label="2"> <text>activities in specially designated districts that encourage residential reinvestment that reinforces the success of the businesses in the districts;</text> </level> <level label="3"> <text>community enhancement projects that encourage or incorporate elements that address environmental responsibility and stewardship into the site and project development, design, and construction;</text> </level> <level label="4"> <text>community enhancement projects that incorporate additional State and local revitalization and smart growth programs and financing tools;</text> </level> <level label="5"> <text>capital investments and business practices that incorporate inclusionary hiring practices that increase local workforce opportunities; and</text> </level> <level label="6"> <text>projects whose purpose is to identify for acquisition, acquire, develop, or promote the development of vacant or blighted properties.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-506" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>review each application submitted under § 6–505 of this subtitle and may request additional information from the applicant;</text> </level> <level label="2"> <text>accept public input on each application; and</text> </level> <level label="3"> <text>consider the recommendation of any State unit.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department may not approve an application until the Department has provided written notice and a reasonable opportunity to comment to the political subdivision where the proposed community enhancement project is located.</text> </level> <level label="2"> <text>If the application affects a neighborhood entirely within a municipal corporation, the Department must provide notice and a reasonable opportunity to comment to the municipal corporation and not the surrounding county.</text> </level> <level label="3"> <text>If an application affects a neighborhood within more than one political subdivision, the Department must provide notice and a reasonable opportunity to comment to each political subdivision.</text> </level> </level> <level label="c"> <text>The Secretary shall award financial assistance to an applicant:</text> <level label="1"> <text>in the amount and of the type that the Secretary determines; and</text> </level> <level label="2"> <text>under the terms of a Program agreement.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-507" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>The Department and a recipient of financial assistance from the Program shall execute a Program agreement.</text> </level> <level label="b"> <text>The recipient of financial assistance from the Program shall comply with the terms of the Program agreement.</text> </level> <level label="c"> <text>The Program agreement may not allow for more than 40% of the total financial assistance that the Program provides to be used for operating expenditures.</text> </level> <level label="d"> <text>The Department may exercise any remedy provided under the Program agreement or by law if the recipient of financial assistance from the Program:</text> <level label="1"> <text>violates any provision of the agreement; or</text> </level> <level label="2"> <text>ceases to meet any requirement of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-508" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>The Department has the powers necessary to implement the Program.</text> </level> <level label="b"> <level label="1"> <text>The Department may determine the terms and conditions or establish time limits for the use of financial assistance awarded under this subtitle.</text> </level> <level label="2"> <text>The financial assistance awarded under this subtitle may be secured by a mortgage, a lien, or any other security interest that is superior to or subordinate to other mortgages, liens, or other security interests.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department may enforce the terms and conditions of the financial assistance awarded under this subtitle.</text> </level> <level label="2"> <text>If any financial assistance awarded under this subtitle is secured by a first or subordinate mortgage or other lien, the Department may:</text> <level label="i"> <text>begin an action to protect or enforce any right given by law, contract, or other agreement;</text> </level> <level label="ii"> <text>foreclose on property;</text> </level> <level label="iii"> <text>purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;</text> </level> <level label="iv"> <text>settle or compromise any debt or obligation owed to the Department;</text> </level> <level label="v"> <text>pay the principal of and interest on any obligation incurred in connection with the property and dispose of or otherwise deal with the property to protect the interests of the Program; or</text> </level> <level label="vi"> <text>release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Department may contract with any person or governmental unit for property or services necessary to operate the Program.</text> </level> <level label="2"> <text>The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid.</text> </level> </level> <level label="e"> <text>In connection with any loans that the Department makes, the Department may:</text> <level label="1"> <text>require and obtain appraisals, credit information, and other pertinent information; and</text> </level> <level label="2"> <text>charge interest.</text> </level> </level> <level label="f"> <text>The Department may consent to the modification of any provision of a Program agreement if the modification is in the best interest of the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-509" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>The recipient of financial assistance from the Program shall submit to the Department quarterly progress reports on the development of a community enhancement project.</text> </level> <level label="b"> <level label="1"> <text>On or before October 31 each year, the Department shall submit a report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly.</text> </level> <level label="2"> <text>The report shall include, for the previous fiscal year:</text> <level label="i"> <text>the number of applications received;</text> </level> <level label="ii"> <text>the number and location of community enhancement projects;</text> </level> <level label="iii"> <text>the financial status of the Program, including the amount and types of financial assistance encumbered and disbursed; and</text> </level> <level label="iv"> <text>a summary of the quarterly reports submitted under subsection (a) of this section.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-510" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="5" subtitle_name="Baltimore Regional Neighborhood Initiative Program"> <level label="a"> <text>In this section, “Fund” means the Baltimore Regional Neighborhood Initiative Program Fund.</text> </level> <level label="b"> <text>There is a Baltimore Regional Neighborhood Initiative Program Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide financial assistance under the Program.</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>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>earnings from the investment of money in the Fund;</text> </level> <level label="3"> <text>repayments of financial assistance provided by the Program;</text> </level> <level label="4"> <text>interest earnings of the Fund; and</text> </level> <level label="5"> <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 providing financial assistance under the Program.</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 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 budget bill or the capital budget bill an appropriation to the Fund in the amount of $8,000,000.</text> </level> <level label="2"> <text>For fiscal year 2020 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation for the Fund in the amount of $12,000,000.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-601" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Board” means the Community Development Board.</text> </level> <level label="c"> <text>“Fund” means the Community Development Fund.</text> </level> <level label="d"> <text>“Program” means the Community Development Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-602" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <level label="a"> <text>There is a Community Development Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to provide financial assistance for community development projects and community development organizations around the State.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-603" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <text>The Department shall:</text> <level label="1"> <text>administer the Program; and</text> </level> <level label="2"> <text>adopt regulations to carry out the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-604" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <level label="a"> <text>There is a Community Development Board in the Program.</text> </level> <level label="b"> <text>The Board consists of the following members:</text> <level label="1"> <text>the Secretary, or the Secretary’s designee; and</text> </level> <level label="2"> <text>the following members, appointed by the Governor, in consultation with the President of the Senate and the Speaker of the House:</text> <level label="i"> <text>one representative of the Community Development Network of Maryland;</text> </level> <level label="ii"> <text>one representative of the small business community;</text> </level> <level label="iii"> <text>one representative of the nonprofit development community;</text> </level> <level label="iv"> <text>one representative of the for–profit development community;</text> </level> <level label="v"> <text>one representative involved with rural community development;</text> </level> <level label="vi"> <text>one representative involved with suburban community development; and</text> </level> <level label="vii"> <text>one representative involved with urban community development.</text> </level> </level> </level> <level label="c"> <text>The Secretary shall designate the chair of the Board.</text> </level> <level label="d"> <level label="1"> <text>The term of a member may not exceed 3 years.</text> </level> <level label="2"> <text>A member may be reappointed.</text> </level> </level> <level label="e"> <text>Service as a member is not a State office or State employment for purposes of any prohibition against holding two public positions.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-605" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <text>The Board shall:</text> <level label="1"> <text>make recommendations on how the Fund is to be used;</text> </level> <level label="2"> <text>provide a period of at least 30 days for public comment on the recommendations; and</text> </level> <level label="3"> <text>report on or before December 31 each year on the activities of the Fund and make any recommendations regarding the Fund to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-606" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <level label="a"> <text>There is a Community Development Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to provide financial assistance for community development projects and community development organizations around the State.</text> </level> <level label="c"> <text>The Department shall administer the Fund with the assistance of the Board.</text> </level> <level label="d"> <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="e"> <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="f"> <text>The Fund may be used only for:</text> <level label="1"> <text>administrative expenses of the Department in administering the Program; and</text> </level> <level label="2"> <text>financial assistance for community development projects and community development organizations as provided under § 6–607 of this subtitle.</text> </level> </level> <level label="g"> <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="h"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="i"> <text>Money expended from the Fund for the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-607" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <text>In consultation with the Board, the Department shall administer the Fund to provide financial assistance, including capital and operating grants, to community development projects and community development organizations to provide and support:</text> <level label="1"> <text>affordable housing;</text> </level> <level label="2"> <text>neighborhood revitalization for residential and commercial areas;</text> </level> <level label="3"> <text>housing counseling, financial counseling, and foreclosure prevention;</text> </level> <level label="4"> <text>community organizing;</text> </level> <level label="5"> <text>small business development;</text> </level> <level label="6"> <text>community services; and</text> </level> <level label="7"> <text>any other community development purpose.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-608" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <text>The Department shall provide financial assistance from the Fund in the form and manner the Department determines appropriate, including providing capital and operating grants.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-609" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="6" subtitle_name="Community Development Program Act"> <text>This subtitle is the Community Development Program Act.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-701" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.</text> </level> <level label="c"> <text>“Community development organization” means an entity that meets the requirements under § 6–704 of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>“Financial assistance” means a grant, a loan, or an investment provided under this subtitle.</text> </level> <level label="2"> <text>“Financial assistance” includes:</text> <level label="i"> <text>an assurance;</text> </level> <level label="ii"> <text>a guarantee;</text> </level> <level label="iii"> <text>a prepayment of interest on a subordinate or superior loan or portion of a loan;</text> </level> <level label="iv"> <text>a reduction in the principal obligation of or rate of interest payable on a loan or a portion of a loan; and</text> </level> <level label="v"> <text>any other form of credit enhancement.</text> </level> </level> </level> <level label="e"> <text>“National capital region” means the areas of the State located within a sustainable community in Montgomery County or Prince George’s County.</text> </level> <level label="f"> <text>“Program” means the National Capital Strategic Economic Development Program.</text> </level> <level label="g"> <text>“Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-702" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>There is a National Capital Strategic Economic Development Program.</text> </level> <level label="b"> <text>The Department shall administer the Program.</text> </level> <level label="c"> <text>The purpose of the Program is to:</text> <level label="1"> <text>provide strategic investment in local housing and businesses to encourage healthy, sustainable communities with a growing tax base and enhanced quality of life; and</text> </level> <level label="2"> <text>focus on areas where modest investment and coordinated strategies will have an appreciable neighborhood revitalization impact.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-703" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>The community enhancement projects eligible to receive Program funds include:</text> <level label="1"> <text>down payment assistance for homebuyers to purchase and rehabilitate homes;</text> </level> <level label="2"> <text>programs to acquire or rehabilitate vacant or blighted properties;</text> </level> <level label="3"> <text>programs to improve existing residential and business properties;</text> </level> <level label="4"> <text>programs to achieve energy efficiency through weatherization and energy retrofits;</text> </level> <level label="5"> <text>development of affordable housing;</text> </level> <level label="6"> <text>development of mixed–use projects that combine housing, retail, and office space;</text> </level> <level label="7"> <text>development or enhancement of community open space or public infrastructure;</text> </level> <level label="8"> <text>workforce and employment development programs, when associated with other projects listed under this subsection;</text> </level> <level label="9"> <text>career and technical education and apprenticeship programs, when associated with other projects listed under this subsection; and</text> </level> <level label="10"> <text>strategic demolition.</text> </level> </level> <level label="b"> <text>Program funds may be used for operating costs necessary to implement a community enhancement project.</text> </level> <level label="c"> <text>The Secretary may establish additional community enhancement projects eligible to receive Program funds.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-704" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <level label="1"> <text>A government agency, including a housing authority, with jurisdiction in the national capital region, an entity controlled directly or indirectly by a housing authority that operates in the national capital region, and, subject to paragraph (2) of this subsection, a community development organization are eligible to apply for program funds.</text> </level> <level label="2"> <text>A corporation, a foundation, or any other legal entity is a community development organization eligible to apply for Program funds if:</text> <level label="i"> <text>the purpose of the organization is to implement a clear revitalization strategy in a neighborhood or set of neighborhoods within the national capital region; and</text> </level> <level label="ii"> <text>no part of the organization’s net earnings inures to the benefit of a private shareholder or an individual holding an interest in the entity.</text> </level> </level> </level> <level label="b"> <text>The eligible institution’s application must contain a neighborhood revitalization plan that includes community enhancement projects located within a sustainable community.</text> </level> <level label="c"> <text>An eligible institution may apply with another eligible institution or with a community development financial institution that has the capacity and experience to assist in the financing of real estate projects within the community.</text> </level> <level label="d"> <text>The community enhancement projects for which an eligible institution applies for Program funds may be located in more than one political subdivision.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-705" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <level label="1"> <text>A government agency, including a housing authority, with jurisdiction in the national capital region, an entity controlled directly or indirectly by a housing authority that operates in the national capital region, and a community development organization may apply to the Department to receive Program funds for community enhancement projects.</text> </level> <level label="2"> <text>The Department shall establish the application process.</text> </level> <level label="3"> <text>The application shall contain:</text> <level label="i"> <text>the neighborhood revitalization plan;</text> </level> <level label="ii"> <text>a description of each community enhancement project;</text> </level> <level label="iii"> <text>organizational documents for the community development organization; and</text> </level> <level label="iv"> <text>any other information the Department requires.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Department, by regulation, shall establish a quantitative system to evaluate each application.</text> </level> <level label="2"> <text>The quantitative evaluation system shall evaluate each application based on:</text> <level label="i"> <text>the neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan;</text> </level> <level label="ii"> <text>the description of the community conditions and the appropriateness of outlined strategies to address those conditions;</text> </level> <level label="iii"> <text>the ability of each proposed community enhancement project to address identified challenges within the community; and</text> </level> <level label="iv"> <text>the capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing.</text> </level> </level> </level> <level label="c"> <text>The Department may give additional consideration to applications that include:</text> <level label="1"> <text>opportunities that promote compact redevelopment and connect housing and job opportunities with transportation options;</text> </level> <level label="2"> <text>activities in specially designated districts that encourage residential reinvestment that reinforces the success of the businesses in the districts;</text> </level> <level label="3"> <text>community enhancement projects that encourage or incorporate elements that address environmental responsibility and stewardship into the site and project development, design, and construction;</text> </level> <level label="4"> <text>community enhancement projects that incorporate additional State and local revitalization and smart growth programs and financing tools;</text> </level> <level label="5"> <text>capital investments and business practices that incorporate inclusionary hiring practices that increase local workforce opportunities; and</text> </level> <level label="6"> <text>projects whose purpose is to identify for acquisition, acquire, develop, or promote the development of vacant or blighted properties.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-706" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>The Department shall:</text> <level label="1"> <text>review each application submitted under § 6–705 of this subtitle and may request additional information from the applicant;</text> </level> <level label="2"> <text>accept public input on each application; and</text> </level> <level label="3"> <text>consider the recommendation of any State unit.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department may not approve an application until the Department has provided written notice and a reasonable opportunity to comment to the political subdivision where the proposed community enhancement project is located.</text> </level> <level label="2"> <text>If the application affects a neighborhood entirely within a municipal corporation, the Department must provide notice and a reasonable opportunity to comment to the municipal corporation and not the surrounding county.</text> </level> <level label="3"> <text>If an application affects a neighborhood within more than one political subdivision, the Department must provide notice and a reasonable opportunity to comment to each political subdivision.</text> </level> </level> <level label="c"> <text>The Secretary shall, subject to subsection (b) of this section, award financial assistance to an applicant:</text> <level label="1"> <text>in the amount and of the type that the Secretary determines; and</text> </level> <level label="2"> <text>under the terms of a Program agreement.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-707" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>The Department and a recipient of financial assistance from the Program shall execute a Program agreement.</text> </level> <level label="b"> <text>The recipient of financial assistance from the Program shall comply with the terms of the Program agreement.</text> </level> <level label="c"> <text>The Program agreement may not allow for more than 40% of the total financial assistance that the Program provides to be used for operating expenditures.</text> </level> <level label="d"> <text>The Department may exercise any remedy provided under the Program agreement or by law if the recipient of financial assistance from the Program:</text> <level label="1"> <text>violates any provision of the agreement; or</text> </level> <level label="2"> <text>ceases to meet any requirement of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-708" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>The Department has the powers necessary to implement the Program.</text> </level> <level label="b"> <level label="1"> <text>The Department may determine the terms and conditions for or establish time limits for the use of financial assistance awarded under this subtitle.</text> </level> <level label="2"> <text>The financial assistance awarded under this subtitle may be secured by a mortgage, a lien, or any other security interest that is superior to or subordinate to other mortgages, liens, or other security interests.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department may, subject to any limits imposed by law, enforce the terms and conditions of the financial assistance awarded under this subtitle.</text> </level> <level label="2"> <text>If any financial assistance awarded under this subtitle is secured by a first or subordinate mortgage or other lien, the Department may, subject to any limits imposed by law:</text> <level label="i"> <text>begin an action to protect or enforce any right given by law, contract, or other agreement;</text> </level> <level label="ii"> <text>foreclose on property;</text> </level> <level label="iii"> <text>purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;</text> </level> <level label="iv"> <text>settle or compromise any debt or obligation owed to the Department;</text> </level> <level label="v"> <text>pay the principal of and interest on any obligation incurred in connection with the property and dispose of or otherwise deal with the property to protect the interests of the Program; or</text> </level> <level label="vi"> <text>release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Department may contract with any person or governmental unit for property or services necessary to operate the Program.</text> </level> <level label="2"> <text>The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid.</text> </level> </level> <level label="e"> <text>In connection with any loans that the Department makes, the Department may:</text> <level label="1"> <text>require and obtain appraisals, credit information, and other pertinent information; and</text> </level> <level label="2"> <text>charge interest.</text> </level> </level> <level label="f"> <text>The Department may consent to the modification of any provision of a Program agreement if the modification is in the best interest of the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-709" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>The recipient of financial assistance from the Program shall submit to the Department quarterly progress reports on the development of a community enhancement project.</text> </level> <level label="b"> <level label="1"> <text>On or before October 31 each year, the Department shall submit a report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly.</text> </level> <level label="2"> <text>The report shall include, for the previous fiscal year:</text> <level label="i"> <text>the number of applications received;</text> </level> <level label="ii"> <text>the number and location of community enhancement projects;</text> </level> <level label="iii"> <text>the financial status of the Program, including the amount and types of financial assistance encumbered and disbursed; and</text> </level> <level label="iv"> <text>a summary of the quarterly reports submitted under subsection (a) of this section.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-710" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="7" subtitle_name="National Capital Strategic Economic Development Program"> <level label="a"> <text>In this section, “Fund” means the National Capital Strategic Economic Development Fund.</text> </level> <level label="b"> <text>There is a National Capital Strategic Economic Development Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide financial assistance under the Program.</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"> <text>Subject to subsection (k) of this section, the Fund may be used only for providing financial assistance under the Program.</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 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 2021 and each fiscal year thereafter, the Governor shall include in the annual operating budget an appropriation for the Fund in the amount of $200,000.</text> </level> <level label="2"> <text>For fiscal years 2021 through 2024, the Governor shall include in the annual operating or capital budget an appropriation for the Fund in the amount of $7,000,000.</text> </level> <level label="3"> <text>For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual operating or capital budget an appropriation for the Fund in the amount of $12,000,000.</text> </level> </level> <level label="k"> <text>The Fund may be used only for community enhancement projects in sustainable communities located:</text> <level label="1"> <text>in Prince George’s County, at least in part, within the boundary created by Interstate 495 in the State and the District of Columbia; or</text> </level> <level label="2"> <text>in Montgomery County, within an enterprise zone or the boundary created by:</text> <level label="i"> <text>Prince George’s County;</text> </level> <level label="ii"> <text>Maryland Route 200;</text> </level> <level label="iii"> <text>Interstate 270;</text> </level> <level label="iv"> <text>Interstate 495 to the Maryland state line; and</text> </level> <level label="v"> <text>the District of Columbia.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-901" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="9" subtitle_name="Catalytic Revitalization Project Tax Credit"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Catalytic revitalization project” means the substantial rehabilitation of a property in the State:</text> <level label="1"> <text>that was formerly owned by the State or the federal government;</text> </level> <level label="2"> <text>the rehabilitation of which will foster economic, housing, and community development within the community in which the property is located; and</text> </level> <level label="3"> <text>that is out of service and was formerly used as a college or university, K–12 school, hospital, mental health facility, or military facility or installation.</text> </level> </level> <level label="c"> <text>“Workforce housing” has the meaning stated in § 4–1801 of this article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-902" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="9" subtitle_name="Catalytic Revitalization Project Tax Credit"> <level label="a"> <text>An individual, a nonprofit organization, or a business entity may claim a tax credit in an amount equal to:</text> <level label="1"> <text>for a project issued a single tax credit certificate on completion, 20% of the amount stated in the final tax credit certificate issued by the Secretary under § 6–903 of this subtitle for 5 consecutive taxable years beginning with the taxable year in which a final tax credit certificate is issued; or</text> </level> <level label="2"> <text>for a phased project issued a tax credit certificate on completion of a phase, 100% of the amount stated in the final tax credit certificate issued by the Secretary under § 6–903 of this subtitle for the taxable year in which the final tax credit certificate is issued.</text> </level> </level> <level label="b"> <text>The Comptroller or the Secretary may not recapture a tax credit authorized under this subtitle if:</text> <level label="1"> <text>the catalytic revitalization project is transferred, in whole or in part, by fee simple transfer of real property or by transfer of an ownership interest in the entity that owns the project to a new owner; and</text> </level> <level label="2"> <text>the Secretary has issued a final tax credit certificate for the catalytic revitalization project under § 6–903 of this subtitle.</text> </level> </level> <level label="c"> <text>The Secretary may issue multiple final tax credit certificates for a project that is issued an initial tax certificate under this section if:</text> <level label="1"> <text>the project has been determined by the Secretary to be in phases;</text> </level> <level label="2"> <text>a phase of the project has been completed;</text> </level> <level label="3"> <text>a final tax credit certificate is not issued for more than 20% of the project’s eligible expenses to date; and</text> </level> <level label="4"> <text>a final tax credit certificate is not issued that would exceed the aggregated limit of a project’s credit under § 6–903(b) of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-903" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="9" subtitle_name="Catalytic Revitalization Project Tax Credit"> <level label="a"> <level label="1"> <text>Subject to the limitations of paragraph (2) of this subsection and subsection (b) of this section, on application by an individual, a nonprofit organization, or a business entity, the Secretary shall issue:</text> <level label="i"> <text>an initial tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s estimated new construction costs and rehabilitation costs for the project; and</text> </level> <level label="ii"> <text>on completion of the catalytic revitalization project or a phase of the catalytic revitalization project, a final tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s actual new construction costs and rehabilitation costs for the project.</text> </level> </level> <level label="2"> <text>For purposes of calculating the credit authorized under paragraph (1) of this subsection, new construction costs:</text> <level label="i"> <text>must be related to the construction of new structures that connect, expand, or integrate the existing structures to be rehabilitated; and</text> </level> <level label="ii"> <text>may not exceed 50% of the total costs of the catalytic revitalization project.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2)(ii) of this subsection, the Secretary may not:</text> <level label="i"> <text>accept applications and award initial credit certificates for catalytic revitalization projects more than once within a 2–year period; or</text> </level> <level label="ii"> <text>issue tax credit certificates for credit amounts in the aggregate totaling more than $15,000,000 within a 2–year period.</text> </level> </level> <level label="2"> <level label="i"> <text>The Secretary may revoke an initial credit certificate on a finding by the Secretary that the recipient is not in compliance with the initial credit certificate or an agreement with the Department regarding the initial credit certificate.</text> </level> <level label="ii"> <text>If the Secretary revokes an initial credit certificate under subparagraph (i) of this paragraph, the Secretary may award an initial credit certificate to another applicant, provided that the award does not exceed the amount of the revoked initial credit certificate.</text> </level> </level> </level> <level label="c"> <text>If the tax credit allowed under this subtitle in any taxable year exceeds the total tax otherwise payable by the individual, nonprofit organization, or business entity for that taxable year, the individual, nonprofit organization, or business entity may claim a refund in the amount of the excess.</text> </level> <level label="d"> <text>The credit allowed under this subtitle 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="e"> <level label="1"> <text>The original recipient of an initial tax credit issued in accordance with this section may transfer the initial tax credit certificate to one or more other individuals, nonprofit organizations, or business entities.</text> </level> <level label="2"> <text>The transfer of an initial tax credit certificate under paragraph (1) of this subsection need not involve a transfer of the catalytic revitalization project, whether by fee simple transfer of real property or a transfer of a portion or all of the ownership interest that the original recipient holds in the entity that owns the real property to a new owner or owners.</text> </level> <level label="3"> <text>An initial tax credit certificate issued in accordance with this section may not:</text> <level label="i"> <text>be transferred to another person without the express written consent of the original recipient; or</text> </level> <level label="ii"> <text>be transferred as part of the involuntary transfer of the real property ownership interest in an entity that owns the real property without the prior written consent of the original recipient of the certificate and the Secretary.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The amount of the tax credit stated in the final tax credit certificate that is allowed, but not claimed, under this subtitle may be transferred, by written instrument, in whole or in part, to any individual, nonprofit organization, or business entity.</text> </level> <level label="2"> <text>For the taxable year of any transfer under this subsection, the transferee under paragraph (1) of this subsection may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year.</text> </level> <level label="3"> <text>If the tax credit exceeds the total tax otherwise payable by the transferee in any taxable year, the transferee:</text> <level label="i"> <text>may claim a refund in the amount of the excess;</text> </level> <level label="ii"> <text>may carry forward and apply the excess credit for succeeding taxable years until the full amount of the credit is used; or</text> </level> <level label="iii"> <text>may transfer the remainder of the tax credit to an individual, a nonprofit organization, or a business entity in accordance with paragraph (1) of this subsection.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-904" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="9" subtitle_name="Catalytic Revitalization Project Tax Credit"> <text>The Secretary, in consultation with the Department of Commerce, shall adopt regulations to carry out the provisions of this subtitle, including regulations that:</text> <level label="1"> <text>establish procedures and standards for certifying new construction costs and rehabilitation costs under this subtitle;</text> </level> <level label="2"> <text>establish an application process for the issuance of tax credit certificates under this subtitle, with an emphasis on applications that promote affordable housing or workforce housing; and</text> </level> <level label="3"> <text>establish procedures for the approval of project phases for tax credit certificates issued under this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-905" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="9" subtitle_name="Catalytic Revitalization Project Tax Credit"> <level label="a"> <text>Subject to subsection (b) of this section, this subtitle and the credit authorized under it shall terminate January 1, 2031.</text> </level> <level label="b"> <text>After the termination of this subtitle:</text> <level label="1"> <text>the Secretary may not issue any additional tax credit certificates under § 6–903 of this subtitle; and</text> </level> <level label="2"> <text>tax credit certificates issued may be claimed, refunded, carried forward, or transferred in accordance with §§ 6–902 and 6–903 of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1101" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="11" subtitle_name="Business Facade Improvement Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Community development organization” means an entity that meets the qualifications of § 6–203 of this title.</text> </level> <level label="c"> <text>“Program” means the Business Facade Improvement Program.</text> </level> <level label="d"> <text>“Qualified business” means a business that:</text> <level label="1"> <text>is located in a sustainable community; and</text> </level> <level label="2"> <text>plans to improve the outside appearance of the business’s building or facility.</text> </level> </level> <level label="e"> <text>“Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1102" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="11" subtitle_name="Business Facade Improvement Program"> <level label="a"> <text>There is a Business Facade Improvement Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to assist qualified businesses with improving the outside appearance of the businesses’ buildings and facilities.</text> </level> <level label="c"> <level label="1"> <text>The Department shall distribute funds from the Program to:</text> <level label="i"> <text>political subdivisions that:</text> <level label="1"> <text>have at least one sustainable community; and</text> </level> <level label="2"> <text>apply for the funds; and</text> </level> </level> <level label="ii"> <text>community development organizations that:</text> <level label="1"> <text>serve at least one sustainable community; and</text> </level> <level label="2"> <text>apply for the funds.</text> </level> </level> </level> <level label="2"> <text>The Department shall develop:</text> <level label="i"> <text>an application process for applicants seeking to participate in the Program; and</text> </level> <level label="ii"> <text>criteria for:</text> <level label="1"> <text>rating political subdivisions and community development organizations that apply for funds; and</text> </level> <level label="2"> <text>awarding funds to political subdivisions and community development organizations.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>Each applicant that receives funds under subsection (c) of this section shall distribute grants to qualified businesses that apply for a grant.</text> </level> <level label="2"> <text>Each political subdivision and community development organization shall develop:</text> <level label="i"> <text>a grant application process for qualified businesses seeking to participate in the Program; and</text> </level> <level label="ii"> <text>criteria for:</text> <level label="1"> <text>rating qualified businesses that apply for grants; and</text> </level> <level label="2"> <text>awarding grants to qualified businesses.</text> </level> </level> </level> </level> <level label="e"> <text>For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $5,000,000 to the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1103" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="11" subtitle_name="Business Facade Improvement Program"> <text>The Department may adopt regulations to carry out this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1201" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="12" subtitle_name="Just Community Designation"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Just Community” means the part of a priority funding area that, as determined by the Governor, satisfies the requirements of § 6–1203 of this subtitle.</text> </level> <level label="c"> <text>“Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1202" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="12" subtitle_name="Just Community Designation"> <level label="a"> <text>The General Assembly finds that the State must have Just Communities in order to:</text> <level label="1"> <text>affirmatively advance equity, civil rights, racial justice, and equal opportunity in the State;</text> </level> <level label="2"> <text>create opportunities for the improvement of communities that have been historically underserved, with anticipated benefits for the entire State; and</text> </level> <level label="3"> <text>right the wrongs of the past, when the State systematically excluded certain groups from equal participation in the benefits of public resources.</text> </level> </level> <level label="b"> <text>It is the intent of the General Assembly that the Just Community designation be used to prioritize State funding to increase racial, economic, and health equity in the State.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1203" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="12" subtitle_name="Just Community Designation"> <level label="a"> <text>The Governor, on the recommendation of the Secretary, may designate an area as a Just Community if the Secretary demonstrates that:</text> <level label="1"> <text>past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment show a need for reinvestment in the area; and</text> </level> <level label="2"> <text>the area has been negatively impacted by a history of:</text> <level label="i"> <text>forms of legal racial segregation including redlining, exclusionary zoning, or racially restrictive covenants;</text> </level> <level label="ii"> <text>the demolition of residential neighborhoods through the use of eminent domain or State or federal funding;</text> </level> <level label="iii"> <text>a State imprisonment rate higher than 750 per 100,000 persons; or</text> </level> <level label="iv"> <text>unequal exposure to environmental and health hazards, including:</text> <level label="1"> <text>proximity to a federal Superfund site;</text> </level> <level label="2"> <text>estimated exposure to lead–based paint; and</text> </level> <level label="3"> <text>rates of asthma among adults that are higher than the 90th percentile for the State.</text> </level> </level> </level> </level> <level label="b"> <text>To maintain a Just Community designation, every 5 years the Secretary shall make designation recommendations for approval by the Governor in accordance with subsection (a) of this section.</text> </level> <level label="c"> <text>At the time Just Communities are designated or renewed, the Governor shall identify State programs under which a Just Community shall receive priority for State funding.</text> </level> <level label="d"> <text>The prioritization of State funding for Just Communities under subsection (c) of this section shall not supersede other program requirements specified in State law.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1301" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Eligible project” means:</text> <level label="1"> <text>a facility and community improvement project as defined in § 6–1304 of this subtitle;</text> </level> <level label="2"> <text>a business district and neighborhood security project as defined in § 6–1305 of this subtitle; or</text> </level> <level label="3"> <text>a community–centered crime and violence intervention and prevention project as defined in § 6–1306 of this subtitle.</text> </level> </level> <level label="c"> <text>“Program” means the Community Health and Safety Works Grant Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1302" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <level label="a"> <text>There is a Community Health and Safety Works Grant Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to provide financial assistance in the form of grants for eligible projects that improve the quality of life within and economic potential of Maryland communities by making targeted investments in crime prevention strategies to address environmental, health, or safety concerns in commercial, public, or residential areas.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1303" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <text>The Department shall:</text> <level label="1"> <text>administer the Program; and</text> </level> <level label="2"> <text>adopt regulations to carry out the Program.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1304" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Eligible applicant” means a tax–exempt nonprofit organization.</text> </level> <level label="3"> <level label="i"> <text>“Facility and community improvement project” means a physical project or a community service that:</text> <level label="1"> <text>makes a facility or a community–managed open space safer for residents and visitors;</text> </level> <level label="2"> <text>encourages the authorized uses of a facility or a community–managed open space by individuals; or</text> </level> <level label="3"> <text>supports community–led efforts to improve the appearance of a facility or a community–managed open space.</text> </level> </level> <level label="ii"> <text>“Facility and community improvement project” includes:</text> <level label="1"> <text>the purchase or installation of:</text> </level> <level label="A"> <text>equipment that increases the visibility of vulnerable spaces, including surveillance tools or adequate lighting for exterior doors, common areas, or hallways; or</text> </level> <level label="B"> <text>landscape architectural design features, including signs, gardens, paving treatments, plantings, or other upgrades to public spaces;</text> </level> <level label="2"> <text>efforts to:</text> </level> <level label="A"> <text>improve sight lines within, increase visitation to, or clean public spaces; or</text> </level> <level label="B"> <text>integrate landscape architectural design features into a facility or a community–managed open space in a manner that connects adjacent neighborhoods for various users while distancing the users from private areas;</text> </level> <level label="3"> <text>timely removal of graffiti and use of graffiti resistance practices in collaboration with a person who specializes in the area of graffiti removal services to present a vibrant, maintained space; and</text> </level> <level label="4"> <text>contracted land enhancement or groundskeeping services to maintain or clean open spaces and functional surfaces.</text> </level> </level> </level> </level> <level label="b"> <text>An eligible applicant may apply for a grant under the Program for a facility and community improvement project.</text> </level> <level label="c"> <text>If an eligible applicant submits an application for a grant under the Program for a facility and community improvement project to purchase or install a network of cameras or license readers, the eligible applicant shall include with the application:</text> <level label="1"> <text>a monitoring plan;</text> </level> <level label="2"> <text>evidence of a partnership with law enforcement, the governmental unit responsible for traffic enforcement for the political subdivision, and any other relevant public agencies; and</text> </level> <level label="3"> <text>a list of possible locations of cameras and license readers and a plan for providing notice of locations to property owners.</text> </level> </level> <level label="d"> <text>The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a facility and community improvement project a grant that:</text> <level label="1"> <text>is at least $25,000; and</text> </level> <level label="2"> <text>does not exceed $50,000.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1305" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant 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>“Business district and neighborhood security project” means a comprehensive plan for enhancing the visual perception of safety along commercial corridors and adjacent areas.</text> </level> <level label="ii"> <text>“Business district and neighborhood security project” includes:</text> <level label="1"> <text>the purchase or installation of:</text> </level> <level label="A"> <text>equipment that increases the visibility of vulnerable spaces, including surveillance tools, adequate lighting for exterior doors, common areas, or hallways, or pedestrian–scale street lighting in high–pedestrian–traffic areas;</text> </level> <level label="B"> <text>vehicle or pedestrian control devices;</text> </level> <level label="C"> <text>equipment to lock or conceal dumpsters from public access; or</text> </level> <level label="D"> <text>signs, gardens, litter removal equipment, plantings, or other upgrades to public spaces;</text> </level> <level label="2"> <text>efforts to:</text> </level> <level label="A"> <text>take into account the needs of neighborhoods in the surrounding area to improve accessibility for all users, in compliance with Americans with Disabilities Act standards; or</text> </level> <level label="B"> <text>increase citizen and merchant stewardship through organizing, education, and outreach activities that seek to engage residents and other community stakeholders to actively participate in the upkeep and improvement of residential areas and public spaces;</text> </level> <level label="3"> <text>contracted cleaning or landscaping services to maintain or clean improved open spaces;</text> </level> <level label="4"> <text>contracted local private security services or similar community–based programs with a specific emphasis on de–escalation and relationship building; and</text> </level> <level label="5"> <text>other efforts consistent with subparagraph (i) of this paragraph.</text> </level> </level> </level> <level label="3"> <text>“Eligible applicant” means:</text> <level label="i"> <text>a tax–exempt nonprofit organization;</text> </level> <level label="ii"> <text>a governmental unit for a political subdivision; or</text> </level> <level label="iii"> <text>an institution of higher education in collaboration with a local neighborhood association.</text> </level> </level> </level> <level label="b"> <text>An eligible applicant may apply for a grant under the Program for a business district and neighborhood security project.</text> </level> <level label="c"> <text>If an eligible applicant submits an application for a grant under the Program for a business district and neighborhood security project to purchase or install a network of cameras or license readers, the eligible applicant shall include with the application:</text> <level label="1"> <text>a monitoring plan; and</text> </level> <level label="2"> <text>evidence of a partnership with law enforcement, the governmental unit responsible for traffic enforcement for the political subdivision, and any other relevant public agencies.</text> </level> </level> <level label="d"> <text>The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a business district and neighborhood security project a grant that:</text> <level label="1"> <text>is at least $75,000; and</text> </level> <level label="2"> <text>does not exceed $150,000.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1306" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Community–centered crime and violence intervention and prevention project” means a comprehensive strategy that integrates partnerships and coordinated activities that:</text> <level label="i"> <text>directly engage individuals who are at risk of becoming involved with or affected by violence and crime using evidence–based interventions; and</text> </level> <level label="ii"> <text>reduce crime and disorder by carefully examining the characteristics of problems in neighborhoods and applying appropriate problem–solving remedies.</text> </level> </level> <level label="3"> <text>“Eligible applicant” means a tax–exempt nonprofit organization.</text> </level> </level> <level label="b"> <text>An eligible applicant may apply for a grant under the Program for a community–centered crime and violence intervention and prevention project.</text> </level> <level label="c"> <text>The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a community–centered crime and violence intervention and prevention project a grant that does not exceed $250,000.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="6-1307" title_number="6" title_name="Division of Neighborhood Revitalization" subtitle_number="13" subtitle_name="Community Health and Safety Works Grant Program"> <level label="a"> <text>In this section, “Fund” means the Community Health and Safety Works Grant Program Fund.</text> </level> <level label="b"> <text>There is a Community Health and Safety Works Grant Program Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide financial assistance in the form of grants under the provisions of the Program for eligible projects.</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>earnings from the investment of money in 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"> <text>The Fund may be used only for providing financial assistance in the form of grants under the Program.</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 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> </section>