In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Housing and Community Development Article, Title 4, Subtitle 8, Annotated Code of Maryland, as amended. Adjusted Annual Income. “Adjusted annual income” means 100 percent of the projected annual gross income, based on income from all members of the household 18 years old or older, who intend to reside in the eligible residence as their primary residence, except for a full-time high school or undergraduate student who is not a borrower. “Adjusted annual income” includes social security, retirement income, pensions, wages, overtime, bonuses, commissions, investment and interest income, rental income, disability or unemployment insurance, alimony and support payments, and all other income from any source, less: Abnormal expenses of a long-term unusual nature such as extraordinary unreimburseable medical, rehabilitation, or special education expenses; Unusual or temporary one-time income items, such as judgments or gifts, as determined by the Program; and Other income items as may be permitted by the Program. “Applicable codes and standards” means construction, health, safety, fire, occupancy, planning, zoning, and other codes and standards applicable in the State and the political subdivision where the property is located, and similar standards as may be established by the Program. “Borrower” means an applicant who receives a loan through the Program. Closing Costs. “Closing costs” means costs incurred in connection with purchasing or purchasing and rehabilitating an eligible residence, as approved by the Program. “Closing costs” includes: Credit report fee; Appraisal fee; Home inspection fee; Survey fee; Title examination fee; Title insurance fee; Application fee; Required escrow payments; Attorney's fee; Document preparation fee; Recording fee; and State and local transfer tax and recordation tax. If the loan refinances existing mortgage debt, closing costs may include, in the discretion of the Program, costs such as payments owed at the time of the loan closing for: Property taxes; Hazard insurance premiums; or Ground rent. “DDF” means the Division of Development Finance, a division of the Department. “Department” means the Department of Housing and Community Development, a principal department of the State. “Eligible residence” means residential property that meets the requirements of Regulation .04. “Household” means the individual or individuals who occupy or intend to occupy: The eligible residence, in the case of a one unit residence; or One of the units in the eligible residence, in the case of a two to four unit residence. “Household of limited income” means a household for which the adjusted annual income does not exceed the upper income limit or limits established by the Secretary in accordance with Housing and Community Development Article, §4-806(a)(2), Annotated Code of Maryland. “Loan” means a loan made by the Department to a borrower through the Program, and secured by a lien on an eligible residence. “Lot consolidation” means acquisition of real property adjacent to and in connection with a residence financed by the Program for purposes of including the real property as part of the residence. “Manufactured home” means a structure designed to be used as a dwelling, which: Is a multisectional structure which has a single HUD certification, and was fabricated on or after June 15, 1976, in an off-site manufacturing facility for installation or assembly at the building site; When installed on the site, meets a minimum floor area, depth, and length as required by the Program, in its sole discretion; Is installed permanently on an engineered foundation in conformance with the National Building Code published by the Building Officials and Code Administration International, Inc. which is incorporated by reference under COMAR 05.02.01, or the standards set by the American National Standards Institute, Inc. which are incorporated by reference under COMAR 05.02.02, and is not independently capable of movement; Has brick, wood, aluminum, or cosmetically equivalent exterior siding and a pitched composition shingle or wood shake roof; Is certified by: The United States Department of Housing and Urban Development as a manufactured home in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended; or The Department as an industrialized building in accordance with Public Safety Article, §12-308, Annotated Code of Maryland; Complies with all requirements set forth in COMAR 05.02.04; Is installed on real property the borrower owns in fee simple or under a freely transferable ground rent lease, and the legal title to the improvements runs with the real property; Meets all applicable zoning requirements as to number of dwelling units, lot size, and building setbacks; and Is reasonably expected to have an economic life equal to or greater than the term of the mortgage. “Mortgage” means a mortgage or deed of trust. “Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of any private shareholder or individual holding an interest in that entity. Program. “Program” means the Preferred Interest Rate Loan Program. “Program” may include staff administering the Program. “Purchase” means the acquisition of a: Lot improved by a residential structure; or Newly constructed residential structure on a lot already owned by the borrower. “Rehabilitation costs” means the costs for repairs and other rehabilitation work for an eligible residence as described in Regulations .06B and .07B of this chapter. “Secretary” means the Secretary of the Department of Housing and Community Development. “Work write-up” means a description of the structural, mechanical, electrical, and other work items needed for the rehabilitation of an eligible residence.