In this subtitle the following words have the meanings indicated. “Financial assistance” means a grant or loan from the Fund. “Fund” means the Transit–Oriented Development Capital Grant and Revolving Loan Fund. “Gap funding” means funding provided to compensate for a shortfall between the expected development costs of a project and the available funds for the project. “Local jurisdiction” means a county or a municipal corporation. “Municipal corporation” means a municipality as defined in § 1–101 of the Local Government Article.

There is a Transit–Oriented Development Capital Grant and Revolving Loan Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

The purpose of the Fund is to promote the equitable and inclusive development of transit–oriented developments throughout the State. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Money appropriated in the State budget to the Fund; Money made available for qualifying uses by the Fund from other governmental sources, including eligible federal funding and the Transportation Trust Fund; Ground rents or land sale proceeds in accordance with § 10–306(c)(2) of the State Finance and Procurement Article; Payments of principal of and interest on loans made under this title; Investment earnings of the Fund; and Any other money from any other source, public or private, accepted for the benefit of the Fund. Contributions to the Fund under paragraph (1)(iii) of this subsection shall: Be separately accounted for in the Fund; and Be used only for the benefit of transit–oriented developments in the same county where the real property subject to the ground rent or land sale is located. For each fiscal year, the Governor shall include in the annual budget bill an appropriation sufficient to ensure a Fund balance of at least $5,000,000 at the start of the fiscal year.

The Fund may be used by the Department to provide financial assistance to local jurisdictions for: Design plans for a transit–oriented development, provided that the transit–oriented development will be designed to meet equity goals established by the Department; Public infrastructure improvements within a transit–oriented development; or Gap funding for public or private development within a transit–oriented development. A private entity, including a nonprofit entity, participating in the development of a transit–oriented development may partner with a local jurisdiction to submit an application for financial assistance under paragraph (1)(iii) of this subsection. The Sustainable Growth Subcabinet established under § 9–1406 of the State Government Article shall establish eligibility requirements and objective scoring standards for the review of applications for financial assistance. The Sustainable Growth Subcabinet established under § 9–1406 of the State Government Article may establish: Different eligibility requirements and objective scoring standards for different types of financial assistance; and Scoring preferences for applications that demonstrate that the proposed project will: Enhance access to transit for low–income and minority residents of the local jurisdiction; Enhance access to transit in areas with affordable housing and a diversity of job and educational opportunities; or Encourage development around underdeveloped and underutilized transit stations in transit–oriented developments. The Department shall: Publish the eligibility requirements and scoring standards on the Department’s website; and In collaboration with the Department of Housing and Community Development, support recipients of awards from the Fund by supporting any studies, plans, and code changes with technical services. An application for financial assistance shall include: Commitments from the local jurisdiction to: Establish transit–supportive land use designations for real property within a transit–oriented development; and Implement, where practicable, improvements to the transit–oriented development that promote the complete streets policy adopted in accordance with § 2–112 of this article; If a private entity partners with a local jurisdiction to submit an application for financial assistance, commitments from key stakeholders to develop the transit–oriented development; and If the application is for a grant to support the design or construction of a proposed enhancement to a transit–oriented development, credible funding strategies that demonstrate full funding of the design or construction costs for the proposed enhancement on award of the grant.

The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be paid into the Fund.