<section article="ghs" article_name="Housing and Community Development" number="9-101" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="1" subtitle_name="Definitions; Findings"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Board” means the Community Reinvestment Board.</text> </level> <level label="c"> <text>“Community reinvestment assistance” means a loan, assurance, guarantee, grant, payment, credit enhancement, or other assistance provided by the Fund as set forth in § 9-404 of this title, or a commitment to provide the assistance.</text> </level> <level label="d"> <text>“Community reinvestment project” means a project or program eligible under § 9-402 of this title to receive community reinvestment assistance from the Fund.</text> </level> <level label="e"> <text>“Fund” means the Community Reinvestment Fund.</text> </level> <level label="f"> <text>“Limited income household” means a household or individual whose income does not exceed the upper income limits that the Secretary establishes.</text> </level> <level label="g"> <text>“Member” means a member of the Board.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-102" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="1" subtitle_name="Definitions; Findings"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>some communities and neighborhoods in the State are in economic and social distress because of a shortage of significant private investment;</text> </level> <level label="2"> <text>financial institutions in the State are recognizing a heightened responsibility to provide financial assistance to these communities and neighborhoods; and</text> </level> <level label="3"> <text>federal and State regulators are requiring more community reinvestment by these financial institutions.</text> </level> </level> <level label="b"> <text>The General Assembly therefore finds that the public interest is served by promoting the development of a financial vehicle to be operated by private financial institutions to:</text> <level label="1"> <text>increase community reinvestment to neighborhoods and communities in the State that have urgent need for reinvestment;</text> </level> <level label="2"> <text>make community reinvestment by financial institutions easier and more desirable by spreading the financial risk and offering the experience of the State in providing community reinvestment lending; and</text> </level> <level label="3"> <text>forge partnerships among financial institutions and the State in meeting community reinvestment goals.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-201" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="2" subtitle_name="Community Reinvestment Board"> <text>There is a Community Reinvestment Board.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="9-202" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="2" subtitle_name="Community Reinvestment Board"> <level label="a"> <level label="1"> <text>The Board consists of at least 17 members.</text> </level> <level label="2"> <text>The Secretary of the Department of Housing and Community Development and the Secretary of Commerce or their designees are nonvoting members.</text> </level> <level label="3"> <text>The Governor shall appoint at least 15 voting members.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to the requirements of this subsection, the voting members shall be appointed and removed in accordance with the organizational documents of the Fund.</text> </level> <level label="2"> <text>At least two–thirds of the voting members shall represent:</text> <level label="i"> <text>the commercial banking or savings institution industry in the State or other participants that have pledged or contributed money or other substantial assistance to the Fund; or</text> </level> <level label="ii"> <text>trade organizations consisting of or otherwise representing two or more members of the commercial banking or savings institution industry in the State or other participants that have contributed money or other substantial assistance to the Fund.</text> </level> </level> <level label="3"> <text>At least 20% of the voting members shall represent community groups or other entities that may be eligible to receive community reinvestment assistance.</text> </level> <level label="4"> <text>The majority of voting members shall represent the groups described in paragraph (2)(i) of this subsection.</text> </level> </level> <level label="c"> <text>A member of the Board may be a director or member or may have some other legal status required by or appropriate to the type of entity constituting the Fund.</text> </level> <level label="d"> <level label="1"> <text>The term of a voting member may not exceed 3 years.</text> </level> <level label="2"> <text>A voting member may be reappointed.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-203" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="2" subtitle_name="Community Reinvestment Board"> <text>The Board shall set the times and places of its meetings.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="9-204" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="2" subtitle_name="Community Reinvestment Board"> <level label="a"> <text>Subject to the requirements of this title, the organizational documents of the Fund shall govern the operation of the Board, including quorum and voting requirements.</text> </level> <level label="b"> <text>The Board has all powers arising from the documents and procedures creating and organizing the Fund as an independent legal entity.</text> </level> <level label="c"> <text>The Board shall:</text> <level label="1"> <text>operate the Fund;</text> </level> <level label="2"> <text>keep proper records of the Board’s accounts;</text> </level> <level label="3"> <text>establish standards and guidelines for:</text> <level label="i"> <text>the terms and conditions of community reinvestment assistance and other Fund reinvestments; and</text> </level> <level label="ii"> <text>allocating community reinvestment assistance and other Fund investments;</text> </level> </level> <level label="4"> <text>apportion among Fund transactions the operating costs of the Fund; and</text> </level> <level label="5"> <text>within the first 90 days of each fiscal year, make an annual report of Fund activities to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly.</text> </level> </level> <level label="d"> <level label="1"> <text>The Board shall appoint a loan committee to review and make determinations on specific requests or categories of requests for community reinvestment assistance to community reinvestment projects.</text> </level> <level label="2"> <text>The loan committee may review and make recommendations to the Board on other matters as the Board determines, including eligibility guidelines and financing policies for community reinvestment projects.</text> </level> <level label="3"> <text>The loan committee consists of:</text> <level label="i"> <text>the Secretary of Housing and Community Development and the Secretary of Commerce or their designees as nonvoting members; and</text> </level> <level label="ii"> <text>the voting members that the Board appoints or their designees.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-301" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <text>There is a Community Reinvestment Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to administer the use and reinvestment of money that may be credited, paid, or otherwise transferred to the Fund from any entity approved by the Board to participate in the Fund, including a bank, savings institution, or other financial institution.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-302" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <level label="1"> <text>The Fund is a private, independent legal entity to be assisted by the Department under this title and is not a governmental unit of the State.</text> </level> <level label="2"> <text>Any dividends, royalties, or other earnings received from community reinvestment assistance, or from any other investment made by the Board under this title, is money of the Fund, and is not money of the State.</text> </level> </level> <level label="b"> <text>Except as specified in this title, the organization and operation of the Board and the Fund are not subject to approval by the Board of Public Works or by any State official or unit.</text> </level> <level label="c"> <text>A member, employee, or agent of the Board or the Fund is not a State official by virtue of any status with or action for the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-303" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <text>The Board shall determine the form of the independent legal entity constituting the Fund in accordance with the organizational documents of the Fund.</text> </level> <level label="b"> <text>In accordance with the organizational documents of the Fund, an entity contributing money to the Fund may be entitled to receive:</text> <level label="1"> <text>interests in the Fund in proportion to the entity’s contribution, in an amount and in a form that the Board determines; and</text> </level> <level label="2"> <text>a return on its contribution to the Fund based on:</text> <level label="i"> <text>the entity’s share; and</text> </level> <level label="ii"> <text>a fixed rate of return or the amount of any dividends, royalties, or other earnings of the Fund, or on another formula and in a form that the Board determines.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-304" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <text>Titles 11 through 17 of the State Finance and Procurement Article do not apply to the operation of or any transactions made by the Fund.</text> </level> <level label="b"> <text>Meetings of the Board or its members or of employees or agents of the Fund are not subject to State requirements for open or public meetings, including any requirements for open sessions under Title 3 of the General Provisions Article.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-305" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <text>The Board shall use the money administered by the Fund to provide community reinvestment assistance in accordance with this title, any other applicable law, and the organizational documents of the Fund.</text> </level> <level label="b"> <text>The Board may use the money that the Fund administers to:</text> <level label="1"> <text>ensure a reasonable return on money held by the Fund before disbursing money for community reinvestment assistance;</text> </level> <level label="2"> <text>pay expenses incurred in its formation and operation, including expenses for administrative, legal, actuarial, and other services; and</text> </level> <level label="3"> <text>redeem interests in the Fund.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-306" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <text>The Department shall take any necessary action, including providing technical assistance, to encourage and facilitate the creation of the Fund.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="9-307" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="3" subtitle_name="Community Reinvestment Fund"> <level label="a"> <text>The Department may provide money for administrative, legal, and other organizational expenses of the Fund.</text> </level> <level label="b"> <text>The Department of Housing and Community Development and the Department of Commerce may:</text> <level label="1"> <text>provide technical assistance for:</text> <level label="i"> <text>operating and administering the Fund; and</text> </level> <level label="ii"> <text>underwriting proposed community reinvestment projects; and</text> </level> </level> <level label="2"> <text>charge reasonable and customary fees for the technical assistance.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-401" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="4" subtitle_name="Reinvestment Assistance"> <text>The Secretary shall establish upper income limits for limited income households, taking into consideration factors that include:</text> <level label="1"> <text>the total income of the household available for housing needs;</text> </level> <level label="2"> <text>the size of the household;</text> </level> <level label="3"> <text>the cost and condition of housing facilities;</text> </level> <level label="4"> <text>the ability of the household to compete successfully in the conventional private housing market; and</text> </level> <level label="5"> <text>relevant standards and definitions established for federal housing programs.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-402" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="4" subtitle_name="Reinvestment Assistance"> <level label="a"> <text>A project qualifies as a community reinvestment project if the Secretary determines in writing that the community reinvestment project meets:</text> <level label="1"> <text>affordable housing needs of limited income households in the State;</text> </level> <level label="2"> <text>capital, operating, and other credit needs of small businesses in the State, including farm businesses, if the assets, income, and number of employees of the business do not exceed limits that the Secretary of Commerce establishes; or</text> </level> <level label="3"> <text>capital, operating, and other credit needs of individuals, community organizations, and businesses located in or serving communities or neighborhoods in the State that have urgent needs for reinvestment due to deteriorating social or economic conditions.</text> </level> </level> <level label="b"> <text>A community reinvestment project shall:</text> <level label="1"> <text>conform to eligibility guidelines and financing policies consistent with this subtitle that the Board develops and the Secretary approves; and</text> </level> <level label="2"> <text>be submitted to and approved by the loan committee appointed by the Board under § 9–204(d) of this title.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-403" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="4" subtitle_name="Reinvestment Assistance"> <level label="a"> <text>An application for community reinvestment assistance shall be made to the Department of Housing and Community Development, to the Department of Commerce, to an entity contributing to the Fund, or, if the Board allows, directly to the Fund.</text> </level> <level label="b"> <text>The Department of Housing and Community Development and the Department of Commerce may provide technical assistance in the underwriting or review of a loan for which an application has been submitted.</text> </level> <level label="c"> <text>The loan committee shall base its action on an application on the review of the application and recommendations made by one or more parties listed in subsection (a) of this section.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-404" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="4" subtitle_name="Reinvestment Assistance"> <text>To provide community reinvestment assistance, the Board may:</text> <level label="1"> <text>invest in, purchase, make commitments to purchase, or take assignments from mortgage lenders of notes and mortgages evidencing mortgage loans;</text> </level> <level label="2"> <text>act as a guarantor or conduit for mortgage backed securities;</text> </level> <level label="3"> <text>make loans to recipients of community reinvestment assistance or to mortgage lenders;</text> </level> <level label="4"> <text>sell at public or private sale mortgages, loans, or other obligations held by the Fund;</text> </level> <level label="5"> <text>purchase, make, participate in making, or enter into commitments to purchase loans;</text> </level> <level label="6"> <text>package and sell loans; and</text> </level> <level label="7"> <text>do anything else authorized by the organizational documents of the Fund.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="9-501" title_number="9" title_name="Community Reinvestment Fund" subtitle_number="5"> <text>This title is the Community Reinvestment Fund Act.</text> </section>