Plain Text Law

Title 05 — Subtitle 01. General Provisions

Chapter 01. Procedures for Hearings in Contested Cases

Regulation .01 General.Copy Citation

This chapter contains procedures for administrative hearings in contested cases. These procedures are required by the Maryland Administrative Procedure Act, State Government Article, §10-201 et seq., Annotated Code of Maryland, and apply to all contested cases within the Department.

Regulation .02 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Contested case” means a proceeding to determine:
(a)
A right, duty, statutory entitlement, or privilege of a person that is required by statute or constitution to be determined only after an opportunity for an agency hearing; or
(b)
The grant, denial, renewal, revocation, suspension, or amendment of a license that is required by statute or constitution to be determined only after an opportunity for an agency hearing.
(2)
“Decision maker” means the person or persons with authority to decide a contested case or designated by the Secretary of Housing and Community Development.
(3)
“Department” means the Department of Housing and Community Development.
(4)
“Party” means one whose legal rights, duties, statutory entitlements, or privileges will be affected by the outcome of a contested case.

Regulation .03 Notice and Hearing.Copy Citation

A.
In a contested case all parties shall be afforded an opportunity for hearing after reasonable notice.
B.
The notice shall:
(1)
State the time, place, and nature of the hearing;
(2)
State the legal authority under which the hearing is to be held;
(3)
Cite the particular sections of the statutes and regulations, including procedural regulations, that are pertinent; and
(4)
State concisely and simply:
(a)
The facts that are asserted, or
(b)
If the facts cannot be stated in detail when the notice is given, the issues that are involved.

Regulation .04 Hearing Officer.Copy Citation

The decision maker may designate a hearing officer who shall conduct the hearing and submit in writing to the decision maker proposed findings of fact and proposed conclusions of law.

Regulation .05 Representation.Copy Citation

A.
A party may appear in proper person or be represented by counsel.
B.
A corporation may be represented by an officer, agent, or attorney.
C.
Parties and their attorneys shall give written notice to the hearing officer of their names and addresses in advance of the hearing.

Regulation .06 Evidence.Copy Citation

A.
Probative evidence that reasonable and prudent individuals commonly accept in the conduct of their affairs may be admitted at a hearing and given probative effect.
B.
Incompetent, irrelevant, immaterial, or unduly repetitious evidence may be excluded.
C.
Documentary evidence may be submitted by parties before and at the hearings and for such period of time that the hearing officer may designate the record to remain open after the hearing.
D.
On a genuine issue in a contested case a party may call witnesses and cross examine opposing witnesses.

Regulation .07 Hearing.Copy Citation

A.
The hearing shall be open to the public, unless otherwise provided by law.
B.
Upon written notice 7 days in advance of a hearing and upon payment of costs, a party may request that a hearing be transcribed.

Regulation .08 Ex Parte Communications.Copy Citation

A.
Persons other than advisory staff may not communicate ex parte with the hearing officer or decision maker.
B.
Ex parte communications received in violation of §A shall be placed in the record and disclosed to all parties who shall then have 10 days within which to rebut them.

Regulation .09 Record.Copy Citation

A.
In the determination of a contested case, the decision maker may consider only evidence that is in the record.
B.
The record in a contested case shall include:
(1)
Pleadings and motions;
(2)
Documentary evidence;
(3)
Statements;
(4)
Transcripts;
(5)
Staff memoranda, unless privileged;
(6)
Proposed findings of fact, proposed conclusions of law, and exceptions to them;
(7)
Preliminary and final decisions; and
(8)
Other writing germane to the case and not otherwise privileged.

Regulation .10 Decision.Copy Citation

A.
The decision maker may adopt, modify, or rewrite a hearing officer's proposed findings of fact and proposed conclusions of law.
B.
If a decision maker or a majority of them has not heard the evidence, a proposed decision, including findings of fact and conclusions of law, shall be served on each party. Parties adversely affected by the proposed decision shall be afforded the opportunity, within 10 days after receipt of the proposed decision, to file exceptions and present argument to the decision maker or the majority of them.
C.
Copies of the final decision and findings of fact and conclusions of law shall be delivered or mailed promptly to all parties or their attorneys.
D.
Instead of a decision, a contested case may be disposed of by agreed settlement, consent order, or default.

Regulation .11 Time Periods.Copy Citation

For good cause, the hearing officer or decision maker may extend or waive time periods provided in these regulations.

Regulation .12 Appeal.Copy Citation

A.
Upon issuance of a final decision, an aggrieved party may proceed to exhaust any remaining administrative remedies or seek judicial review in accordance with applicable law.
B.
Upon notice of appeal the record shall be transmitted promptly to the appropriate appellate tribunal, and within the time period prescribed in the Maryland Rules of Procedure governing appeals from administrative agencies.

Regulation .13 Interpretation.Copy Citation

These regulations are meant to complement the Maryland Administrative Procedure Act. In the event of conflict the Act takes precedence over them.

Chapter 02. Public Information Requests

Regulation .01 General.Copy Citation

These regulations set out the procedures for the filing of requests with any of the agencies, boards, commissions, councils, corporations, authorities, trusts, and divisions within the Department of Housing and Community Development for the inspection or copying of records under State Government Article, §§10-611—10-630, Annotated Code of Maryland. It is the policy of the Department to facilitate public access to the records of the Department, when this access is allowed by law, by minimizing costs and time delays to persons requesting information. In accordance with this policy, the Department will provide for the free flow of information to the public, whenever possible, without recourse to the procedures set forth in this chapter.

Regulation .02 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Act” means State Government Article, §§10-611—10-630, Annotated Code of Maryland.
(2)
“Applicant” means any person requesting disclosure of public records.
(3)
“Department” means the Department of Housing and Community Development, and any of the agencies, boards, commissions, corporations, authorities, trusts, or divisions included within the Department of Housing and Community Development under Article 83B, §1-204, Annotated Code of Maryland.
(4)
“Custodian” means the head of an organizational unit of the Department having personal custody and control of public records of that organizational unit of the Department
(5)
“Official custodian” means the Secretary of Housing and Community Development, or the Secretary's designee, who is responsible for the maintenance, care, and keeping of the public records of the Department. Unless otherwise provided by law, the Secretary, or the Secretary's designee, is the official custodian of the Department's records.
(6)
“Public records” has the meaning stated in State Government Article, §10-611(g), Annotated Code of Maryland.
(7)
“Secretary” means the Secretary of Housing and Community Development.
(8)
“Working day” means each day except Saturdays, Sundays, and State holidays between the hours of 8:30 a.m. and 4:45 p.m.

Regulation .03 Who May Request.Copy Citation

A person may request to inspect or copy any public record that is in the custody and control of the Department and which, under the provisions of the Act, the Department is required to make available to the public.

Regulation .04 Necessity for Written Request.Copy Citation

A.
The custodian may make public records available for inspection or copying, or both, by an applicant without a written request except as set forth below. Written requests shall be required in all instances when the public records requested may contain information relating to any of the following:
(1)
Adoption records;
(2)
Welfare records;
(3)
Letters of reference;
(4)
Circulation records;
(5)
Gifts;
(6)
Retirement records;
(7)
Personnel records;
(8)
Hospital records;
(9)
Student records;
(10)
Medical and psychological information;
(11)
Sociological information;
(12)
Commercial information;
(13)
Public employee information;
(14)
Financial information;
(15)
Security of an information system;
(16)
Licensing records;
(17)
Interagency and intra-agency documents;
(18)
Examinations;
(19)
Research projects;
(20)
Appraisals of real property;
(21)
Information concerning investigations;
(22)
Information which may cause substantial injury to the public interest;
(23)
Privileged or confidential information; or
(24)
Information protected by state or federal law, court rule, or court order.
B.
A custodian may require a written request for other public records if in the custodian's discretion the request will facilitate the response to the request for records.

Regulation .05 Contents of Written Request.Copy Citation

A written request shall contain the applicant's name and address, be signed by the applicant, and shall reasonably identify by brief description the record sought.

Regulation .06 Filing the Request.Copy Citation

A written request for a record in the custody and control of the Department shall be addressed to the official custodian. The official custodian shall promptly direct the request to the custodian of the record.

Regulation .07 Response to Request.Copy Citation

A.
If the custodian decides to grant a written request for inspection, he shall produce the record for inspection immediately or within a reasonable period, not to exceed 30 days from the date of receipt of the request when that period of time is needed to retrieve the information.
B.
If the custodian decides to deny the written request, he shall do so within 30 days of receipt of the written request and immediately upon deciding to deny the request, shall notify the applicant of the denial. Any reasonably severable portion of a record shall be provided after deletion of those portions which may be withheld from disclosure. Within 10 working days of the denial, the custodian shall give the applicant a written statement that gives the reasons and legal authority for the denial and contains a notice of the remedies for review of the denial.
C.
If a requested public record is not in the custody or control of the person to whom written application is made, that person shall, within 10 working days of the receipt of the request, so notify the applicant. If that person knows the name of the custodian of the record or the location or possible location of the record, this information shall also be given to the applicant.
D.
With the consent of the applicant, any time limit imposed by §§A—C may be extended for an additional period not to exceed 30 days.

Regulation .08 Notification of Persons Who May be Affected by Disclosure.Copy Citation

The custodian, unless prohibited by law, may notify a person who could be adversely affected by a disclosure of a record to the applicant who has made a request for inspection or copying of the record. The custodian may consider the views of the person before deciding whether to disclose the record to the applicant.

Regulation .09 Repealed.Copy Citation

Regulation .10 Repealed.Copy Citation

Regulation .11 Records Destroyed or Lost.Copy Citation

If the requested record has been destroyed or lost, the custodian to whom the application is made shall notify the applicant of this fact within 10 working days of receipt of the request, and shall explain in the response the reasons why the record cannot be produced.

Regulation .12 Review of the Denial.Copy Citation

A.
If the written request is denied by the custodian, the applicant may request an administrative hearing on the denial within 30 days after receipt of the notification of the written denial.
B.
If a hearing is requested by the applicant, the hearing shall be conducted by a hearing officer designated by the Secretary and the hearing shall be governed by COMAR 05.01.01. After the hearing the hearing officer shall prepare a recommended decision which shall be submitted to the Secretary. The Secretary shall issue the final decision of the Department.
C.
If the administrative hearing results in a total or partial denial of the written request, the applicant may file an appropriate action in the circuit court under §10-623 of the Act.
D.
The applicant may file an action for judicial enforcement under §10-623 of the Act without exhausting the administrative remedy of §A, above.

Regulation .13 Disclosure Against Public Interest.Copy Citation

If, in the opinion of the Secretary, disclosure of any public record which is otherwise required to be disclosed under the Act would do substantial injury to the public interest, the Secretary may temporarily deny the request in writing, and apply within 10 working days of the denial to the appropriate circuit court for an order permitting the Secretary to continue to deny or restrict the disclosure. Notice of the application filed with the circuit court shall be served upon the applicant in the same manner provided for service of process by the Maryland Rules of Procedure.

Regulation .14 Fees.Copy Citation

A.
The Department may charge reasonable fees in accordance with the following fee schedule:
(1)
Copies. The fee for each copy is 25 cents per page when reproduction can be made by a photocopying machine within the Department. When records are not amenable to photocopying (for example, punch cards, magnetic tapes, blueprints and microfilm), the fee for reproducing the record will be based on the actual cost of reproduction.
(2)
Certification of Copies. When a person requests that a copy of a record be certified as a true copy of the original public record, an additional cost of $1 per page will be charged.
(3)
Searching or Record Preparation. There is no charge for the first 2 hours that are needed to search for a public record and prepare it for inspection. The custodian may charge a reasonable fee for time that an official or employee of the Department spends to search for records, or prepare records for inspection and copying.
(4)
A charge may not be made when the amount of the fee is $1 or less.
B.
Notwithstanding §A above, if the fees for copies, printouts, photographs, or certified copies of any record are specifically prescribed by a law other than the Act or this regulation the specific fee contained in that law shall determine the amount charged for that record.
C.
If the custodian is unable to copy a record within the Department, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Department. The custodian shall either collect from the applicant a fee which is sufficient to pay the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.
D.
Before searching for, preparing, or copying a record, the custodian shall estimate the cost of searching for, preparing and copying the record and obtain the agreement of the applicant that the cost shall be paid. The custodian may demand pre-payment of any estimated fee before searching for, preparing and copying the record. If such a payment is required, the time limitations contained elsewhere in these regulations may not commence until the payment is made.
E.
Upon request the official custodian may waive or reduce any fee charged pursuant to this regulation if the custodian determines that the waiver or reduction is in the public interest. The official custodian shall consider, among other relevant factors, the ability of the applicant to pay the cost or fee.
F.
If the applicant requests that copies be mailed or delivered to the applicant, the custodian may charge the applicant for the cost of postage or delivery to the applicant.

Regulation .15 Time of Inspection.Copy Citation

An applicant may inspect any public record which he is entitled to inspect during the normal working hours of the Department.

Regulation .16 Place of Inspection.Copy Citation

The place of inspection shall be the place where the document is located unless the custodian determines that another place of inspection is more suitable.

Chapter 03. Petition for Declaratory Rulings

Regulation .01 General.Copy Citation

These regulations are promulgated pursuant to State Government Article, § 10-304, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Department of Housing and Community Development for a declaratory ruling.

Regulation .02 Definitions.Copy Citation

A.
In these regulations, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Department” means the Department of Housing and Community Development.
(2)
“Secretary” means the Secretary of Housing and Community Development or the Secretary's designee.

Regulation .03 Who May File.Copy Citation

Any interested person may file a petition for declaratory ruling with respect to the manner in which the Department would apply a regulation or order of the Department, or a statute that the Department enforces, to a person or property on the facts set forth in the petition.

Regulation .04 Where to File.Copy Citation

A petition shall be filed with the Secretary for the Secretary's consideration and disposition.

Regulation .05 Form.Copy Citation

The petition shall:
A.
Be in writing;
B.
Contain a detailed statement of the facts on which the petition is based;
C.
Fully set forth the regulations or statutes involved;
D.
Pose the question of whether, and in what manner, the regulations or statutes apply to the petitioner under the facts contained in the petition;
E.
Contain the name, address, and telephone number of the petitioner; and
F.
Contain a statement by the petitioner, under oath, that the facts contained in the petition are true.

Regulation .06 Consideration and Disposition.Copy Citation

The Secretary shall consider the petition and may issue the declaratory ruling requested. The Secretary may require argument on the petition. A declaratory ruling is binding upon the agency and the petitioner, to the extent permitted by law, on the facts alleged. Any declaratory ruling issued shall be in writing and shall state the reasons for the decision. A copy of the declaratory ruling shall be delivered to the petitioner.

Regulation .07 Agency File.Copy Citation

The Department shall maintain a file of all petitions submitted and the declaratory rulings issued. This file shall be available for public inspection to the extent permitted by law.

Chapter 04. Petition for Adoption of Regulations

Regulation .01 General.Copy Citation

These regulations are promulgated pursuant to State Government Article, § 10-122, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Department of Housing and Community Development for the adoption of regulations.

Regulation .02 Definitions.Copy Citation

A.
In these regulations, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Department” means the Department of Housing and Community Development.
(2)
“Secretary” means the Secretary of Housing and Community Development or the Secretary's designee.

Regulation .03 Who May File.Copy Citation

Any interested person may file a petition with the Secretary requesting the promulgation, amendment, or repeal of any regulation.

Regulation .04 Form.Copy Citation

The petition shall:
A.
Be in writing;
B.
Contain a clear and concise statement of the regulation, amendment, or repeal which is sought;
C.
Contain a statement of reasons in support of the proposed regulation change; and
D.
Contain the name, address, and telephone number of the petitioner.

Regulation .05 Petition Filed.Copy Citation

The petition shall be filed with the Secretary for the Secretary's consideration and disposition. The time period for response to a petition begins when the petition is received by the Secretary.

Regulation .06 Disposition.Copy Citation

Within 60 days after receipt of the petition, the Secretary shall either deny the petition in writing, stating the reasons for the denial, or initiate the procedures for adoption of the regulation as submitted or with appropriate modifications as determined by the Secretary to be in the best interest of the Department.

Regulation .07 Agency File.Copy Citation

The Department shall maintain a file of all petitions submitted and the responses. This file shall be available for public inspection to the extent permitted by law.

Chapter 05. Suspensions and Debarments

Regulation .01 General.Copy Citation

The purpose of this chapter is to promote the best interest of the State and the Department, and to protect the integrity of Departmental programs by establishing the Department's policy, as well as specifying grounds and setting forth procedures regarding suspensions and debarments.

Regulation .02 Scope.Copy Citation

A.
This chapter is in addition to other remedies which may be available to the Department by applicable laws and regulations. Therefore, the provisions of this chapter are intended to be cumulative to, and not exclusive of or as a substitute for, other provisions of applicable laws and regulations where any of the grounds for suspension and debarment may exist. Further, this chapter is in addition to, and does not supersede, any applicable federal or State laws and regulations. In the event of any conflict between the provisions of this chapter and applicable federal or State laws and regulations, the provisions of the federal or State laws and regulations shall control to the extent of that conflict.
B.
A proceeding under this chapter is not a contested case subject to those provisions of State Government Article, §10-201, et seq., Annotated Code of Maryland, for the adjudication of contested cases.

Regulation .03 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Attorney General” means the Attorney General of Maryland or the Attorney General's designee.
(2)
“Conviction” includes an accepted plea of nolo contendere, or an accepted plea of guilty.
(3)
“Debarment” means an administrative action taken by the Secretary disqualifying a person from participating in any program of the Department, including, but not limited to, acting as a developer, builder, contractor or subcontractor to a contractor, grantee, consultant, management company, borrower, owner, or acting as a supplier for work or services being performed for or by the Department, or in connection with a project or residence assisted, funded, financed, insured or otherwise sponsored in whole or in part by the Department, or any combination of these disqualifications.
(4)
“Department” means the Department of Housing and Community Development, a principal department of the State, including the agencies, boards, commissions, councils, corporations, authorities, trusts, divisions, and all other entities declared by law to be part of the Department.
(5)
“Governmental entity” means the United States, any state, any governmental agency created by interstate compact, county, bi-county or multi-county governmental agency located within a state, municipality, or any unit of government of the United States, or of any state including any subunit within any of these units.
(6)
“Person” means an individual, corporation, partnership, or other legal or business entity.
(7)
“Secretary” means the Secretary of Housing and Community Development.
(8)
“Suspension” means an administrative action taken by the Secretary disqualifying a person, on a temporary or limited basis, or pending a decision on debarment, from participating in a program of the Department, including, but not limited to, bidding or submitting proposals or acting as a developer, builder, contractor or subcontractor, grantee, consultant, management company, borrower, owner, or acting as a supplier for work or services being performed for or by the Department, or in connection with a project assisted, funded, financed, insured or otherwise sponsored in whole or in part by the Department, or some combination of these disqualifications.

Regulation .04 Policy.Copy Citation

It is the Department's policy that:
A.
If the grounds specified in Regulation .05 exist, a person may be debarred or suspended from participating in the Department's programs;
B.
The Department may not knowingly accept any person suspended or debarred under this chapter to perform work for the Department;
C.
Suspensions and debarments imposed under this chapter shall be accomplished in accordance with the procedures set forth in Regulation .06.

Regulation .05 Grounds for Suspension and Debarment.Copy Citation

A.
A person may be suspended or debarred if that person has:
(1)
Been rated unsatisfactory by the Department after participation in one or more programs of the Department as a result of failure to:
(a)
Comply with the rules, regulations, or guidelines of the Department,
(b)
Perform in accordance with the terms and provisions of any loan document, grant agreement, loan origination or servicing contract, contract for the provision of goods or services, or any other type of contract or agreement with the Department or other governmental entity,
(c)
Maintain or make available for inspection full and complete records required or requested by the Department,
(d)
Respond in a timely manner to reasonable requests or inquiries by the Department or other governmental entities or persons having jurisdiction, concerning any contract, loan, grant, subsidy, or other assistance, of the Department,
(e)
Remedy errors, defects, or related matters determined to exist by the Department, in the exercise of its reasonable judgment, in a timely manner, or
(f)
Comply with Executive Order 01.01.1989.18, dated November 28, 1989, which requires any recipient of State contracts, grants, loans or other funds to maintain a drug and alcohol free workplace, and any regulations issued in accordance with this, or any other State law, regulation, or program requirement concerning drug use or drug trafficking activities in the State;
(2)
Been placed on any disapproved or debarred list maintained by any governmental entity;
(3)
Been, or currently is, the subject of an investigation by any federal, state or local governmental entity for alleged criminal or civil violations of laws or regulations enforced by these entities;
(4)
Been convicted under the provisions of or entered into a consent decree or cease and desist order, or has admitted, in writing or under oath during the course of an official investigation or other proceeding, to acts or omissions which would constitute a violation of any federal, state, or local law, including the:
(a)
Maryland Antitrust Act, Commercial Law Article, §§11-201—11-213, Annotated Code of Maryland, for acts arising out of the submission of bids or proposals for a contract with a governmental entity,
(b)
Antitrust laws of another state or of the federal government for acts arising out of the submission of bids or proposals for a contract with a governmental entity,
(c)
Provisions of Title 18 of the United States Code for violation of the Racketeer Influence and Corrupt Organizations Act, 18 U.S.C. §1961 et seq., or the Mail Fraud Act, 18 U.S.C. §1341 et seq., for acts arising out of the submission of bids or proposals for a contract with a governmental entity; or
(5)
Acted in a manner which indicates a lack of moral or ethical integrity in carrying out the person's responsibilities, including but not limited to the following acts or omissions which shall constitute prima facie evidence of a lack of moral or ethical integrity:
(a)
Failure to disclose relevant and material information on an application, certification, opinion representation grant, loan, or other agreement with the Department or any other governmental entity, or
(b)
Knowingly or negligently causing or permitting false statements or misrepresentations of fact to be entered on an application provided by the Department, or any contract or certification, or agreement with the Department or any other governmental entity.
B.
A person that is a business entity also may be debarred or suspended if:
(1)
The Secretary finds the business entity has been formed or established in a manner intended to evade the purpose of this chapter; or
(2)
Any of the individuals related to the business entity as follows are debarred or suspended:
(a)
An officer of the entity;
(b)
A director of the entity;
(c)
A stockholder of the entity;
(d)
A stockholder of a corporate general or limited partner of the entity;
(e)
A general partner of the entity;
(f)
A limited partner of the entity;
(g)
A principal of the entity; or
(h)
An individual who controls the business activities of the entity.
C.
If a person has been debarred under this chapter, the person's successors, assigns, subsidiaries, or affiliates also are considered debarred unless exempted in writing by the Secretary.
D.
The debarment or suspension of the business entity identified in §B(2)(a)—(h) of this regulation shall continue for the period of the individual's debarment or suspension.

Regulation .06 Suspension and Debarment Procedures.Copy Citation

A.
When grounds for suspension or debarment as described in Regulation .05 exist, the Secretary shall notify the person by personal delivery or in writing by certified mail, return receipt requested, that suspension or debarment is under consideration and the basis for suspension or debarment. The person may be suspended pending the outcome of an administration review proceeding, in which case the notice shall so state, and suspension shall be effective upon mailing or personal delivery.
B.
The person may request an administrative review proceeding by notifying the Secretary in writing within 15 days from the date of receipt of the notice.
C.
If no administrative review proceeding is requested, the opportunity for review shall be considered to be waived and the Secretary shall determine whether to suspend or debar the person based on all information germane to the issue and available to the Secretary. The person shall be notified of the decision in writing by certified mail, return receipt requested.
D.
If an administrative review proceeding is requested, the Secretary shall conduct the proceeding within 30 days from the receipt of the person's request. The time for conducting the review may be extended up to 30 days upon written request to the Secretary or by the Secretary with notice to all parties.
E.
The person may be represented by counsel at the administrative review proceeding and may present any evidence or argument relevant to the proposed suspension or debarment. If counsel is to be present, the person shall notify the Secretary at least 5 days before the scheduled review proceeding date. The Secretary may request other persons to present evidence or argument as the Secretary may request.
F.
The Secretary may solicit information from any source which is relevant to the proposed suspension or debarment and shall consider all of the facts and circumstances upon which the request for suspension or debarment is based, including but not limited to:
(1)
The nature of the acts involved;
(2)
The duration of the person's involvement in the acts;
(3)
The extent of the damage caused to the State by the person's acts;
(4)
Whether and to what extent the person subsequently cooperated with the appropriate authorities;
(5)
The conditions under which the person cooperated;
(6)
The degree to which the person made restitution; and
(7)
The time when the acts occurred and the conduct of the person since that time.
G.
The Secretary shall conclude whether the best interests of the Department or the State would be served by suspending or debarring the person and shall, within 30 days after the administrative review proceeding, or, if there is no review proceeding as provided in §D, notify the person in writing that the person either is:
(1)
Suspended, and the period of suspension;
(2)
Debarred, and the period of debarment; or
(3)
Not subject to debarment or suspension for the acts which were the subject of the administrative review proceeding, and that the person's suspension pending the outcome of the review proceeding, if suspended, has been rescinded as of the date of the Secretary's decision.
H.
If the sole basis for a suspension or debarment under this chapter is a conviction described in Regulation .05A(4) and that conviction is subsequently overturned, then the suspension or debarment shall terminate automatically without any further proceedings being required under this chapter.
I.
A person debarred under this chapter may request the Secretary to shorten or terminate the person's debarment. This request may not be made until after 1 year from the date of debarment, and not more than one request for reconsideration may be made during the term of debarment.
J.
Within 30 days after receipt of a request for reconsideration of debarment, or at the initiation of the Secretary, the Secretary shall conduct a review to determine whether the debarment should be shortened or terminated. The time for the review and determination may be extended by the Secretary for good cause shown.
K.
In making a determination upon a request for reconsideration, the Secretary may solicit information from any source which is relevant to the reconsideration request and shall consider the facts set forth in §F and any change in circumstances which has occurred since the debarment. Upon making this determination, the Secretary shall notify the debarred party in writing either that the debarment has been shortened or terminated or shall continue for the original term.

Regulation .07 Miscellaneous.Copy Citation

A.
Debarment based on the grounds set forth in Regulation .05 may not exceed a period of 5 years.
B.
Suspension based on the grounds set forth in Regulation .05 may not exceed a period of 1 year.
C.
The Attorney General may conduct an investigation of the matters to be considered by the Secretary under this chapter and may present to the Secretary such evidence as the Attorney General considers appropriate.
D.
Actions designated to be undertaken by the Secretary may be undertaken by a designee of the Secretary under an express written delegation.
E.
Upon the final determination of any suspension or debarment proceeding under this chapter by the Secretary, the entire Departmental file concerning the suspension or debarment, including all records germane to the suspension or debarment, shall be delivered to the Office of the Attorney General for the Department and shall be maintained in a locked file marked “Confidential” under the custody and control of the Office of the Attorney General for a period of 3 years after the suspension or debarment, if any, is terminated.

Chapter 06. State Economic Growth, Resource Protection, and Planning Policy Project Review

Regulation .01 Scope.Copy Citation

A.
These regulations apply to major capital improvement projects and public works projects to be funded by the Department or a unit of the Department with State or federal funds.
B.
These regulations do not apply to any project for which:
(1)
A valid building permit was issued before October 1, 1992;
(2)
A state commitment for a grant, loan, loan guarantee, or insurance was issued before October 1, 1992;
(3)
Final review under the National Environmental Policy Act or the Maryland Environmental Policy Act was completed by October 1, 1992; or
(4)
Final review through the State Clearinghouse for Intergovernmental Assistance was completed before January 1, 1993.

Regulation .02 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Code” means the Annotated Code of Maryland.
(2)
“Department” means the Department of Housing and Community Development.
(3)
“Interagency Economic Growth, Resource Protection, and Planning Committee” or “Committee” means the Interagency Economic Growth, Resource Protection, and Planning Committee established under Executive Order 01.01.1992.27.
(4)
“Local jurisdiction” means any of the 23 counties of Maryland, the City of Baltimore, any municipal corporation in Maryland subject to the provisions of Article XI-E of the Maryland Constitution, and any duly authorized agency or instrumentality of the local jurisdiction.
(5)
“Major capital improvement project” means a project:
(a)
Identified as a capital project in the State Capital Budget; or
(b)
That is a major capital improvement under a statute authorizing a program of the Department.
(6)
“Project” means a major capital improvement project or a public works project.
(7)
“Public works project” means a project expected to be owned by a public entity.
(8)
“Secretary” means the Secretary of Housing and Community Development, or the Secretary's designee.
(9)
“State Growth Policy” means the State Economic Growth, Resource Protection, and Planning Policy set forth in Regulation .03 of this chapter.
(10)
“Unit” or “unit of the Department” means an administration, board, commission, trust, fund, agency, or program within the Department providing funding for a project.

Regulation .03 The State Economic Growth, Resource Protection, and Planning Policy.Copy Citation

The State Economic Growth, Resource Protection, and Planning Policy is that:
A.
Development shall be concentrated in suitable areas;
B.
Sensitive areas shall be protected;
C.
In rural areas, growth shall be directed to existing population centers, and resource areas shall be protected;
D.
Stewardship of the Chesapeake Bay and the land shall be a universal ethic;
E.
Conservation of resources, including a reduction in resource consumption, shall be practiced;
F.
To encourage the achievement of the policies in §§A—E of this regulation, economic growth shall be encouraged and regulatory mechanisms shall be streamlined; and
G.
Funding mechanisms shall be addressed to achieve the policies of §§A—F of this regulation.

Regulation .04 Requirements.Copy Citation

The Department may fund a project if it complies with this regulation or Regulation .05 of this chapter. The project shall be determined to be consistent generally with the State Growth Policy, and demonstrate specifically that the project:
A.
Is located:
(1)
On a site suitable for infill development or redevelopment which:
(a)
Is occupied by a structure to be rehabilitated,
(b)
Was previously improved with a structure, or
(c)
Is surrounded by development; or
(2)
In an area:
(a)
Designated for growth,
(b)
Within an existing sewer service area or an area planned for service within 5 years under the adopted county water and sewerage plan, and
(c)
With public facilities and services that are adequate under standards adopted by the local jurisdiction;
B.
If in a rural area, is:
(1)
Located in an existing population center or its designated growth area; and
(2)
Sensitive to resource areas, including agricultural and forest lands;
C.
Is designed with sensitivity for sensitive areas, including:
(1)
Streams and stream buffers;
(2)
100-year flood plains;
(3)
Habitats of threatened or endangered species; and
(4)
Steep slopes; and
D.
Is consistent with the comprehensive plan of the local jurisdiction in which the project is located.

Regulation .05 Extraordinary Projects.Copy Citation

The Department may fund a project even if the project cannot meet the requirements in Regulation .04 of this chapter, if the project is determined to:
A.
Be warranted by extraordinary circumstances, defined as circumstances that:
(1)
Require emergency action, or
(2)
Provide a unique opportunity to promote the purposes of the unit and the State Growth Policy; and
B.
Have no reasonably feasible alternative, defined as an alternative that:
(1)
Is capable of being carried out,
(2)
Is readily identifiable by the unit,
(3)
Is reasonably related to and will carry out the purposes of the State Growth Policy,
(4)
Has reasonably ascertainable effects distinguishable from and less environmentally damaging than the project proposed,
(5)
Is within the expertise of the unit or other State units,
(6)
Can be implemented practically and effectively, not remotely or speculatively, and
(7)
Is realistic and reasonably available within the time the unit intends to act.

Regulation .06 Procedure.Copy Citation

A.
The determinations under Regulation .04 or .05 of this chapter shall be:
(1)
Evidenced by a written project report signed by the unit and the Secretary's designee; and
(2)
Finalized in accordance with the procedures set forth in this regulation and Regulation .07 of this chapter.
B.
Filing.
(1)
The Secretary's designee shall file with the State Office of Planning the project report required under §A(1) of this regulation.
(2)
If the project report concludes that a project is an inconsistent project with extraordinary circumstances, the Secretary's designee shall submit with the report the documentation, if any, that the unit provided to any local jurisdiction directly affected by the project for comment on the project.
(3)
The Secretary's designee may withdraw a project report filed with the Office of Planning by filing a withdrawal with the Office at any time before the determination becomes final.
C.
Finality Determination. The determination evidenced by the project report under §A(1) of this regulation becomes final and the unit may proceed with the project after:
(1)
For a determination of consistency, the date:
(a)
The Interagency Economic Growth, Resource Protection, and Planning Committee concurs in the determination; or
(b)
That is the later of:
(i)
15 days from the date the project report is filed with the Office of Planning, if no Committee member has requested review by the Committee, or
(ii)
45 days from the date the Committee has failed to act if a Committee member has requested review by the Committee;
(2)
For a determination of inconsistency with extraordinary circumstances:
(a)
The date the Committee concurs in the determination; or
(b)
45 days from the date the project report is filed with the Office of Planning, if the Committee has failed to act; or
(3)
For a determination of consistency or of inconsistency with extraordinary circumstances in which the Committee does not concur and which the unit or the Committee refers to the Governor, the date the Governor determines the project is consistent or is inconsistent with extraordinary circumstances.

Regulation .07 Secretary's Determination.Copy Citation

Before issuance of a determination approving a project, the Secretary shall execute a written determination that the project complies with Regulation .04 or .05 of this chapter and that the determination has been finalized under Regulation .06 of this chapter.

Chapter 07. Housing Finance Review Committee

Regulation .01 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Committee” means the Housing Finance Review Committee established by Housing and Community Development Article, §4-208, Annotated Code of Maryland.
(2)
“Department” means the Department of Housing and Community Development.
(3)
“Deputy Secretary” means the Deputy Secretary of the Department.
(4)
“Secretary” means the Secretary of Housing and Community Development.

Regulation .02 Purpose.Copy Citation

The purpose of the Housing Finance Review Committee is to review and make recommendations to the Secretary on certain lending and insurance programs of the Department.

Regulation .03 Scope.Copy Citation

A.
The Housing Finance Review Committee reviews and makes recommendations for, but does not approve, certain loans by the Department's Division of Development Finance as well as mortgage insurance provided by the Maryland Housing Fund, an agency in the Division of Credit Assurance.
B.
In addition, the Committee reviews and recommends actions to the Secretary on all project financing and investment policies of the Community Development Administration, an agency in the Division of Development Finance.
C.
The Bond Advisory Board established under COMAR 05.01.08 reviews and makes recommendations to the Department regarding the issuance of securities, as well as the policies and procedures used by the Department in the issuance of securities.
D.
The Secretary, or a designee of the Secretary, shall approve each loan commitment, insurance policy, or bond financing of the Department, the Division of Credit Assurance, the Division of Development Finance, the Maryland Housing Fund, and the Community Development Administration.

Regulation .04 Composition of Committee.Copy Citation

A.
Upon recommendation of the Secretary, the Governor appoints seven individuals to serve as the Committee, consisting of:
(1)
Three employees of the Department which shall include the Deputy Secretary;
(2)
One employee of the executive branch of State government outside the Department; and
(3)
Three members of the public:
(a)
All of whom have interest and expertise in investment or commercial banking, lending, real estate development, mortgage insurance, community development, or affordable housing, and
(b)
One of whom is the Chairman of the Maryland Housing Policy Commission or the designee of the Chairman appointed with the advice of the Secretary.
B.
The public members serve for a term of 4 years with the first terms beginning on July 1, 1983, and subsequent terms in each 4-year succeeding period. A member appointed to fill a vacancy in an unexpired term or to succeed a member who is holding over serves for the remainder of the term only.
C.
The members serve without compensation, but the public members are entitled to reimbursement for expenses under the standard State travel regulations.

Regulation .05 Committee Procedures.Copy Citation

A.
The Deputy Secretary shall serve as the Chairman of the Committee. The Chairman is responsible for preparing and distributing the agenda for the Committee meetings.
B.
Committee meetings generally are held monthly at the time and place set by the Chairman. Meetings may be held by conference telephone call or in person at the election of the Chairman.
C.
The Deputy Secretary may elect to hold a premeeting to determine the agenda for the meetings and discuss with staff the recommendations expected to be made to the Committee.
D.
The minutes of the meetings of the Committee shall be maintained by the Office of the Secretary.
E.
Four members of the Committee constitute a quorum. A vote by the majority of a quorum of the Committee members present, in person, or by telephone, shall constitute an official recommendation of the Committee.
F.
Instead of a meeting, action of the Board may be set forth in a written determination signed by each member of the Board.

Regulation .06 Committee Functions.Copy Citation

The Committee shall review and make recommendations to the Secretary regarding:
A.
All loans in excess of $250,000 proposed to be made by the:
(1)
Community Development Administration,
(2)
Division of Development Finance, and
(3)
Maryland Housing Fund;
B.
The investment policies of the:
(1)
Community Development Administration, and
(2)
Maryland Housing Fund; and
C.
The project financing policies of the:
(1)
Community Development Administration, and
(2)
Division of Development Finance.

Regulation .07 Project and Policy Approval.Copy Citation

A.
Except as set forth in §B of this regulation, the Secretary, or a designee of the Secretary, shall approve all loans and debt financing after receipt of the recommendation of the Committee.
B.
The Secretary may approve a specific loan request without receiving the recommendation of the Committee if the Secretary determines, in the sole discretion of the Secretary, that the request requires urgent action. A written determination of urgent action by the Secretary is final and cannot be appealed.

Chapter 08. Revenue Bond Advisory Board

Regulation .01 Purpose.Copy Citation

It is the purpose of the Revenue Bond Advisory Board to provide independent advice and expertise to the Department of Housing and Community Development on the issuance of revenue bonds by the Department, or any of its agencies, and the policies and procedures related to the issuance of those revenue bonds.

Regulation .02 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Board” means the Revenue Bond Advisory Board.
(2)
“Department” means the Department of Housing and Community Development.
(3)
“Deputy Secretary” means the Deputy Secretary of the Department.
(4)
“Revenue bonds” or “bonds” means bonds, notes, or other securities issued by the Department or any of its agencies.
(5)
“Secretary” means the Secretary of Housing and Community Development.

Regulation .03 Responsibilities of the Board.Copy Citation

A.
Before the earlier of the public distribution of a preliminary official statement or submission of a preliminary official statement to any rating agency for review, the Board shall review and make recommendations to the Department regarding the issuance of bonds, notes, or other securities by the Department or any of its agencies.
B.
The recommendation shall consider the following:
(1)
The amount of bonds to be issued;
(2)
The timing of the sale or issuance of the bonds; and
(3)
Whether the sale should be undertaken on a competitive or negotiated basis.
C.
The Board shall review annually the process and procedures the Department and its agencies use for the issuance of revenue bonds, including any recommendations to the Secretary with respect to the role and responsibilities of Department staff, the underwriters, and the financial advisor in each of the following areas:
(1)
Cash flow analysis, both consolidated and series specific, for determining the adequacy of debt service coverage;
(2)
Cash flow and financial analysis for determining projected compliance of each issue with federal arbitrage restrictions;
(3)
Federal arbitrage compliance and rebate calculations;
(4)
Official statement preparation;
(5)
Rating agency contact;
(6)
Data base maintenance; and
(7)
Bond proceeds investment decisions.
D.
Unless expressly requested by the Secretary, the Board is not responsible for reviewing or determining the adequacy of financial analysis, for compliance with federal arbitrage provisions, or for reviewing or determining the adequacy of official statements or other disclosures in connection with the Department's bonds.
E.
The Board shall review and make recommendations to the Secretary on the criteria for the selection of financial advisors and underwriters who provide advice or services to the Department in connection with its bond issuance activities.
F.
The Board shall annually, or more frequently as may be desirable, review and report to the Secretary regarding the performance of the financial advisors and underwriters, as well as the performance of the housing finance staff of the Department.
G.
Following the issuance of every series of revenue bonds, the Board shall review the sale of the revenue bonds, including the bond rates achieved compared to bonds issued by comparable agencies from other states, and the costs of issuance of the revenue bonds. The Board shall report regularly to the Secretary on the results of these post bond sale analyses.
H.
The Board shall review and make recommendations on other plans, programs, policies, procedures, or practices of the Department and its agencies related to the issuance of revenue bonds as the Secretary may request.

Regulation .04 Composition and Tenure of the Board.Copy Citation

A.
The Secretary shall appoint seven persons to serve as the Board. The Board shall be composed of:
(1)
Two representatives from the Department;
(2)
Two executive branch representatives, with one from an executive agency of State government which issues revenue bonds;
(3)
One representative from the Office of the Treasurer;
(4)
One public member experienced in investment banking and the issuance of securities; and
(5)
One public member experienced as an attorney in the issuance of revenue bonds.
B.
The public members of the Board shall serve for a term of 4 years or until their successors are appointed, with the first terms beginning on July 1, 1995, and subsequent terms in each 4-year succeeding period. A member appointed to fill a vacancy in an unexpired term, or to succeed a member who is holding over, serves for the remainder of the term only.
C.
The members serve without compensation, but the public members are entitled to reimbursement for expenses under the standard State travel regulations.

Regulation .05 Operating Procedures.Copy Citation

A.
The Deputy Secretary shall serve as the Chairman of the Board. The Chairman is responsible for preparing and distributing the agenda for the Board meetings.
B.
Board meetings generally shall be held monthly at the time and place set by the Chairman. Meetings may be held by conference telephone call or in person at the election of the Chairman.
C.
The minutes of the meetings of the Board shall be maintained by the Office of the Secretary.
D.
Four members of the Board constitute a quorum. A vote by the majority of a quorum of the Committee members present, in person or by telephonic connection, shall constitute an official recommendation of the Board. Instead of a meeting, action of the Board may be set forth in a written determination signed by each member of the Board.

Regulation .06 Approval of Bond Issuance.Copy Citation

A.
Except as set forth in §B of this regulation, the Secretary, or a designee of the Secretary, shall approve in writing the amount, time, and type of revenue bonds to be issued after receipt of the recommendation of the Board.
B.
The Secretary may determine to approve the issuance of revenue bonds without receiving the recommendation of the Board or to vary the amount, type, or timing of the revenue bond issue without further review or recommendation by the Board if the Secretary determines, in the sole discretion of the Secretary, that urgent action is required. A written determination of urgent action by the Secretary is final and may not be appealed.

Chapter 09. Rental Housing Loan Processing

Repealed