In this part the following words have the meanings indicated. “Capital equipment” means essential fixed equipment and furnishings with an expected useful life of at least 15 years. “Cost” means all expenses incident to a project. “Cost” includes: the cost to acquire any interest in real or personal property in connection with a project; the cost of financial, technical, professional, engineering, and legal services in connection with a project whether the expenses are incurred before or after any bond, note, or other evidence of indebtedness or obligation is issued by the State to finance the project; the cost of development of a senior citizen activities center master plan; and the cost of plans, specifications, surveys, estimates of costs and revenues, feasibility or practicability reports, machinery, equipment, and administrative expenses, and other expenses that are necessary and incident to the financing authorized for the project. “Grant” means a grant from the State under the Program. “Improvement” means construction, replacement, extension, or betterment of a senior citizen activities center or real property. “Master plan” means a comprehensive plan for a local government’s projected need for funds for senior citizen activities centers over 15 years. “Program” means the Senior Citizen Activities Centers Capital Improvement Grants Program. “Project” means a capital construction, expansion, renovation, or replacement project for a proposed or existing senior citizen activities center that: receives or has received a grant for work that is eligible under this part; is operated under the authority of a unit of local government; and is: wholly owned by the unit of local government; or leased by a unit of local government if: the lease is for a minimum term of 15 years after completion of the project or gives the lessee the right of purchase; and the lessor consents to the recording of a notice of the right of recovery under § 10–506 of this subtitle in the land records of the county in which the facility is located. “Senior citizen activities center” means a community or neighborhood facility in which a broad spectrum of services are organized and provided to individuals at least 60 years old or their spouses, including health, social, nutritional, educational, and recreational services.

A unit of local government may apply to the Secretary for a grant for the cost of: planning, design, construction, acquisition, conversion, renovation, or improvement of a senior citizen activities center; developing a master plan; purchasing capital equipment for a project; leasing a senior citizen activities center as a lessee or lessor; or making a subgrant to a nonprofit organization for a purpose described in item (1), (2), (3), or (4) of this subsection. If the Secretary approves an application for a grant, the Secretary shall file with the Board of Public Works a report describing the scope of the project and a recommendation that the Board make the requested funds available.

A grant may be used for any of the purposes specified in § 10-502(a) of this subtitle.

Any federal grant that is received for a project shall be applied first to the cost of the project. Except as provided in subsection (b) of this section, a State grant for a project may not exceed the lesser of $800,000 or 50% of the cost of eligible work remaining unpaid after any federal grant is applied. A State grant to develop a master plan may not exceed the lesser of $15,000 or 50% of the cost of development of the plan. The Board of Public Works may authorize a grant for a project that exceeds 50% of the cost of eligible work remaining unpaid after any federal grant is applied, if: the project involves the conversion, acquisition, renovation, construction, or improvement of a building for use as a senior citizen activities center; the value of real property and existing improvements made available by the local government equals or exceeds the amount of the State grant; and the residual value of the real property and existing improvements made available by the local government exceeds the sum of: any prior amounts used for matching funds under this Program; any outstanding State debt relating to the property from another program; any prior grant under this Program; and any other tangible State investment in the property. The amount of a State grant for a project shall be determined after consideration of: the density of the senior population in the area affected by the project; the proximity of the proposed center to an existing senior citizen activities center; and other localities eligible for State funding that have not received previous funding under the Program or similar programs. A grantee who received funds for a project under this subtitle or a prior act authorizing grants for senior citizen activities centers may receive additional grants for the project, but only in an amount that does not exceed the difference between the sum of any prior grants and the maximum funding allowable for the project. A grantee who received funds for a project under this subtitle for a project at a senior citizen activities center may request an additional grant for a different project at the same senior citizen activities center, if the sum of grants made for any single senior citizen activities center does not exceed $800,000 in any 15–year period.

At any reasonable time, a representative of the Department may enter a building or place for which a grant was awarded under this part to inspect any pertinent equipment or part of the building or place.

Before State funds are paid under this Program, the grantee shall: record the notice of the State’s right to recovery in the land records of the county in which the senior citizen activities center is or will be located; and provide evidence of the recordation to the Department. The recordation constitutes notice to any potential transferee, potential creditor, or other interested party of the possibility that the State may obtain a lien under this part, but the act of recordation does not create a lien against the property.

The State may recover State grant funds if, within 15 years after completion of a project: the property, with respect to which funds have been paid under this subtitle, ceases to be operated as a senior citizen activities center; or an interest in property for which funds have been paid under the Program is assigned, transferred, or conveyed: without approval by the Board of Public Works; or for use other than as a senior citizen activities center. The State is entitled to recover the sum of: an amount that equals the value of the property, with respect to which funds have been paid under this subtitle, at the time of the recovery multiplied by a fraction: the numerator of which is the amount of the State funds for the project; and the denominator of which is the total cost of all eligible work for the project; and costs, including reasonable attorney’s fees that the State incurs in recovery proceedings.

If a default described in § 10–507(a) of this subtitle is alleged, the Secretary of the Board of Public Works may file a civil action under this part in the circuit court of the county in which the property is located against the owner of the property and any other interested parties, including any transferor that the State wishes to make a party. The initial filing shall include sworn affidavits stating facts on which the allegations of default are based and a detailed justification of the amount claimed. If the court determines from the State’s initial filing that there is probable cause to believe that a default described in § 10–507(a) of this subtitle has occurred, the court shall authorize a temporary lien on the property pending full determination of the State’s claim. The temporary lien shall be in the amount of the State’s claim, plus any additional amount estimated to be necessary to cover the costs and reasonable attorney’s fees incurred by the State, or another amount that the court determines is reasonable. The temporary lien takes effect: on the date of the court order authorizing the lien if, within 10 days, the Secretary of the Board of Public Works records a notice of temporary lien in the land records of the county in which the property is located; or if the Secretary fails to record the notice within 10 days, on the date the notice of temporary lien is recorded. While the temporary lien is in effect, the owner or any person who acquired an interest in the property after the State first made funds available under the Program may not take an action that would affect the title to the property or institute proceedings to enforce a security interest or other similar rights in the property, without the prior written consent of the State. The owner or any other interested party may obtain a release of the temporary lien at any time by filing with the court a bond securing the payment in full of the amount described in subsection (b)(2) of this section. The owner or other interested party may cause the release to be recorded in the land records of the county in which the property is located.

Proceedings to determine the State’s right to recover and the amount of its recovery under the Program have priority over other civil proceedings in the circuit court. After a full adversary proceeding, if the court finds that a default described in § 10–507(a) of this subtitle has occurred, the court shall issue a final judgment for the amount the court finds to be recoverable by the State. All parties involved in the default, including the owner of the property, shall be held jointly and severally liable to the State for the amount of the judgment. If the court finds that a default described in § 10–507(a) of this subtitle has not occurred or if the court’s judgment is paid in full to the State within 30 days after the court’s final order, any temporary lien shall be released immediately and the Secretary of the Board of Public Works shall cause the release to be recorded in the land records of the county in which the property is located. If the judgment remains unpaid for more than 30 days after the court’s final order, the amount shall be a lien on the property. Unless the State provides otherwise in a written subordination agreement, the lien is superior to a lien or other interest of any mortgagee, pledgee, purchaser, or judgment creditor whose interest became perfected against third persons after the State awarded a grant. A lien issued under this section takes effect on the later of: the 31st day after the court’s final order if the Secretary of the Board of Public Works records a notice of lien in the land records of the county in which the property is located on or before that day; or the date a notice of lien is recorded. When the lien takes effect, any temporary lien is automatically and fully released. The recorded notice of the lien constitutes notice of the release of the temporary lien. A lien issued under this part may be enforced and foreclosed in accordance with the Maryland Rules, except that the State or any agent appointed by the State to sell the property need not file a bond. The owner or any other interested party may obtain release of a lien issued under this part by paying to the State the full amount of the judgment entered by the circuit court, and any interest that has accrued from the date of judgment. On payment in full, the Secretary of the Board of Public Works shall cause a release to be recorded in the land records of the county in which the property is located. Funds recovered under this section shall be deposited in the Annuity Bond Fund and applied to the debt service requirements of the State. The Board of Public Works may waive the State’s right of recovery if the Board determines that there is good cause for releasing the transferor, transferee, or owner from this obligation.

Subject to approval by the Board of Public Works, the Secretary may adopt regulations to carry out this part.

In this part the following words have the meanings indicated. “Fund” means the Senior Citizen Activities Center Operating Fund. “Senior citizen activities center” means a community or neighborhood facility in which a broad spectrum of services are organized and provided to seniors and their spouses, including health, social, nutritional, educational, and recreational services.

There is a Senior Citizen Activities Center Operating Fund. The Fund shall be used to supplement, but may not be used to supplant, any existing funding for senior citizen activities centers in the State budget.

The Secretary shall administer the Fund. The Secretary may adopt regulations to carry out this part.

In this section, “distressed county” means: Baltimore City; and a county: with an average rate of unemployment for the most recent 24–month period for which data are available that exceeds: 150% of the average rate of unemployment for the State during that period; or the average rate of unemployment for the State during that period by at least 2 percentage points; with an average per capita personal income for the most recent 24–month period for which data are available that is equal to or less than 67% of the average per capita personal income for the State during that period; or that no longer meets either criterion stated in item (i) or (ii) of this item but has met at least one of the criteria at some time during the preceding 24–month period. The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The Fund consists of appropriations that are made to the Fund from the State budget. For each fiscal year, the Governor shall include in the annual State budget an appropriation of $750,000 for the Fund. In addition to the funds provided under subparagraph (i) of this paragraph, the Governor shall provide sufficient funds to ensure that each county receives at least $5,000 under subsection (d)(2) of this section. $100,000 of the Fund shall be distributed to counties for senior citizen activities centers based on a competitive grant process administered by the Department. $400,000 of the Fund shall be distributed to counties based on each county’s proportional share of the statewide population of senior citizens. A county shall receive at least $5,000 under this paragraph. At least $250,000 of the Fund shall be distributed for senior citizen activities centers to distressed counties as follows: $150,000 shall be divided evenly; and $100,000 shall be divided proportionately by each county’s share of the total population of senior citizens in distressed counties. The Fund shall be invested and reinvested in the same manner as other State funds.