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<regulation prefix="Regulation" num=".15" citation="COMAR 05.03.01.15" title_num="05" subtitle_num="03" chapter_num="01" heading="Forward Commitments to Developers.">
  <paragraph num="A.">
    <text>For eligible developers of eligible homes, the Department may enter into forward commitments to reserve, for a fixed period of time, a fixed amount of Program funds. The Program funds reserved in the forward commitment shall be used to finance Program loans for eligible borrowers purchasing eligible homes constructed or rehabilitated by the developer.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Eligible developers are:</text>
    <paragraph num="(1)">
      <text>Nonprofit or for-profit organizations;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Local governments; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Local government agencies.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>To be eligible for a commitment, homes to be financed with the funds reserved shall:</text>
    <paragraph num="(1)">
      <text>Be priced to be affordable to eligible borrowers; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>In the determination of the Department, avoid creating or aggravating a concentration of low income households that would adversely affect surrounding communities.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>If homes to be included in this forward commitment are new construction, or will change the type of use or increase the intensity of the existing use of the property included in the commitment, the homes are eligible for a forward commitment only if the:</text>
    <paragraph num="(1)">
      <text>Department has complied with COMAR 05.01.06.06; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Secretary has issued the written determination required under COMAR 05.01.06.07.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>To be eligible for a commitment, newly constructed homes to be included in a forward commitment shall be located within a priority funding area identified under State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland.</text>
  </paragraph>
  <paragraph num="F.">
    <text>A developer seeking a forward commitment shall submit sufficient information and documentation to determine the extent, if any, to which the homes to be financed by the loans will change the type of use or increase the intensity of the existing use of the property included in the forward commitment.</text>
  </paragraph>
</regulation>