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” means 100 percent of the projected annual gross income, based on the income from all members of the household 18 years old or older, including 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; and Unusual or temporary one-time income items, such as judgments or gifts, as determined by the Program. “Borrower” means an applicant who receives a loan through the Program. “Closing costs” mean: Fees or premiums for property and judgment reports, title examination, or other similar expenses; Fees for preparation of a deed, settlement statement, or other documents; Payments owed at the time of the loan closing for property taxes, hazard insurance premiums, or ground rent; Fees for notarizing deeds or other documents; Appraisal and survey fees; Recordation taxes and fees; Fees or premiums for mortgage insurance; Loan application fees; Fees for credit reports; Reasonable legal fees; Payoff of prior liens or mortgages; and Other closing costs as approved by the Department. “Controlled dangerous substance” means a controlled dangerous substance as that term is defined in Criminal Law Article,§5-101, Annotated Code of Maryland, as amended. “Department” means the Maryland Department of Housing and Community Development, a principal department of the State. “Household” means the individual or individuals who occupy the eligible residence securing the loan. “Household of limited income” means a household for which the adjusted annual income does not exceed the upper income limit established by the Secretary in accordance with Housing and Community Development Article, §§4-806 and 4-807, Annotated Code of Maryland. “Loan” means a loan made by the Department to a borrower through the Program, and secured by a lien on the eligible residence as defined in Regulation .04. “Mortgage” means a mortgage or deed of trust. “Program” means the Emergency Mortgage Assistance Program. “Secretary” means the Secretary of the Department.