In this subtitle the following words have the meanings indicated. “Juvenile facility” means a property used for a juvenile program that is: operated under the authority of: a county or municipal corporation, or both; a for profit organization; or a nonprofit organization; and wholly owned by the entity described in paragraph (1) of this subsection; or leased by the entity if: the lease is for a minimum term of 30 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 State’s right of recovery under § 9-405 of this subtitle in the land records of the county in which the facility is located. “Juvenile program” means a: program that: is a group home or institution described under § 9-231 of this title; or is a home for runaway youths described under § 9-232 of this title; and provides residential services to youth placed by the Department; or nonresidential program that under contract to the State provides educational, vocational, recreational, counseling, or other day services to youth.

A county, municipal corporation, for profit organization, or nonprofit organization sponsoring a project involving the planning, design, construction, conversion, acquisition, renovation, and equipping of a juvenile facility in the State may apply to the Department for a grant under this subtitle. An application shall be filed with the Department in the form the Department requires. The applicant shall file with the Department a statement that includes: a list of the personnel employed or to be employed at the juvenile facility; all compensation and other expenses paid or to be paid to the personnel; all other expenses incurred or to be incurred in operating the juvenile facility; and a schedule of rates charged or to be charged for services provided at the juvenile facility. If the Secretary approves the project and the project plans, the Secretary shall promptly: report the application to the Board of Public Works; and recommend that the Board make funds available as provided in this subtitle. The amount of the State grant for a project shall be determined after considering: all eligible applications; the total of unallocated State funds available when the application is received; and the priorities of area need that the Department establishes.

The Board of Public Works shall: make allocations of funds available for the Juvenile Services Facilities Capital Program in accordance with this subtitle; and certify the allocations to the Comptroller and the Treasurer. After the Board certifies the allocations, the Treasurer shall make payments to or on behalf of an applicant, when needed, for the project.

A State grant may be used only to plan, design, construct, convert, acquire, renovate, and equip a juvenile facility, including related reports, plans, specifications, site improvements, surveys, and programs. Any available federal or other grant shall be applied first to the cost of planning, design, construction, conversion, acquisition, renovation, or equipping of a juvenile facility. A State grant may not exceed 50% of the cost of eligible work remaining unpaid after all federal and other grants have been applied. A State grant may not be used: to further sectarian religious instruction; in connection with the design, acquisition, or construction of a building used or to be used as a place of sectarian religious worship or instruction; or in connection with a program or department of divinity for a religious denomination. On request of the Board of Public Works, an applicant shall submit evidence satisfactory to the Board that a grant is not being used and has not been used for a purpose prohibited under this section.

Before any State funds are paid for an approved project, the Department shall cause a notice of the State’s right of recovery to be recorded in the land records of the county in which the property is located. The recording of the notice: does not create a lien against the property; but constitutes notice to any potential transferee, potential creditor, or other interested person that the State may obtain a lien under this subtitle.

The State may recover grant funds paid under this subtitle if, within 30 years after completion of a project, the project property: is sold or transferred to a person that: would not qualify as an applicant under this subtitle; or the Board of Public Works does not approve as a transferee; or ceases to be a juvenile facility. The State may recover from the: transferor; transferee; or owner of a property that has ceased to be a juvenile facility. The State is entitled to recover the sum of: an amount that equals the value of the project property 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 eligible cost of the project; and all costs and reasonable attorney’s fees incurred in the recovery proceedings. The Board of Public Works may waive the State’s right of recovery for good cause.

If a default described in § 9-406(a) of this subtitle is alleged, the Secretary of the Board of Public Works may file a civil action under this subtitle 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. The initial filing shall include 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 § 9–406(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 this subtitle 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 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 this subtitle have priority over other civil proceedings in the circuit court. After a full adversary proceeding, if the court finds that a default described in § 9-406(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 does not find that a default described in § 9-406(a) of this subtitle has 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 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 the 41st day after the final order; 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 under this section 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 does not need to file a bond. The owner or any other interested party may obtain release of a lien under this section 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.

All funds recovered under this subtitle shall be deposited in the Annuity Bond Fund and applied to the debt service requirements of the State.

The Secretary shall adopt regulations to carry out this subtitle. The regulations shall require each juvenile facility to submit certified financial statements annually for at least the term of the bonds used to finance any project at that juvenile facility. The regulations may require the submission of other reports. The Board of Public Works may adopt regulations for: receiving applications; considering applications; and disbursing funds to or on behalf of applicants.