The terms appearing in Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, have the meanings defined there and, in addition, the meanings used in these regulations. Terms Defined. “Accessory dwelling unit” means a dwelling unit which is: Within, attached to, or on the same parcel as, and subordinate to but under the same ownership as, a single family, owner-occupied dwelling; and Intended for use as a complete, independent living facility, including permanent provisions for living, sleeping, cooking, and sanitation by one household within limits established by local codes, if any, pertaining to health, building, or other relevant provisions of the law. “Act” means Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, as amended. “Allocation” means the share of the monies appropriated annually for the Program which is reserved for each county based on an allocation formula devised by the Department, in accordance with Regulation .17 of this chapter. Amortizing Loans. “Amortizing loans” means loans with equal payments of principal and interest over the term of the loan such that the payments retire the loan by the end of the term. “Amortizing loans” includes loans with zero interest when the principal is repaid in equal monthly installments over the term. “Annual income” means total household income from all sources, including wages, investment income, Social Security, retirement, disability, and unemployment benefits less: Unusual or temporary income items as determined by the Department; and Abnormal expenses of a long-term nature, such as extraordinary medical, rehabilitation, or special education expenses. “Applicable codes and rehabilitation standards” means the construction, health, safety, fire, occupancy, livability, and other codes and standards in force in the political subdivision in which an eligible building is located and applicable to that building. “Applicant” means any person or entity applying for a loan under the Program. “Borrower” means a single family owner-occupant, nonprofit sponsor, or sponsor who receives a loan to rehabilitate an eligible building. “Closing costs” means the total of all settlement costs and fees and, when applicable, initial payments for taxes, property insurance, title examination, percolation tests, or other expense items as determined by the Department. “Contract” means the agreements between a borrower and a licensed general contractor or licensed home improvement contractor accepted by the Department setting forth the terms of performance of work to be financed by a loan made under the Program. “County” means any of the 23 counties in the State and the City of Baltimore. “Deferred payment loans” means loans which have no current payment of principal and interest, and the principal and any interest are repaid in full upon loan maturity or sale or transfer of the property. “Department” means the Department of Housing and Community Development. “Director” means the Director of Single Family Housing Programs of the Department. “Elderly” means the age limit specified by the Secretary that is 55 years old or older. Family of Limited Income. “Family of limited income” means one or more individuals permanently residing as a household in a dwelling unit in an eligible building whose combined annual income does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-915, Annotated Code of Maryland. “Family of limited income” includes a trust described in 42 U.S.C. §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if: The income of the trust does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-915, Annotated Code of Maryland; and The beneficiary of the trust is an individual who resides in the residential building owned by the trust. Family of Lower Income. “Family of lower income” means one or more individuals residing as a household in a dwelling unit in an eligible building, whose combined annual income does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland. “Family of lower income” includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if: The income of the trust does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland; and The beneficiary of the trust is an individual who resides in the residential building owned by the trust. Family of Very Low Income. “Family of very low income” means one or more individuals residing as a household in a dwelling unit, whose combined total income does not exceed an amount determined by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland, which income limits shall be lower than those established for families of lower income. “Family of very low income” includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if: The income of the trust does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland; and The beneficiary of the trust is an individual who resides in the residential building owned by the trust. “General property improvements” mean nonessential improvements that enhance the comfort, convenience, and appearance of a property, but are not necessary to remove unsanitary conditions or eliminate hazards to health and safety. “Household” means an individual or a group of individuals who occupy a dwelling unit as their permanent residence. “Level I local administrator” means a political subdivision certified by the Department under Regulation .16 of this chapter. “Level II local administrator” means a political subdivision certified by the Department under Regulation .16C of this chapter. “Local administrator” means a level I or level II local administrator. “Nonprofit organization” means a political subdivision, 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 the entity. “Nonprofit sponsor” means either a: Nonprofit organization; or Limited partnership formed for the purpose of undertaking a rehabilitation project which is eligible in whole or part for federal programs or incentives, including low-income housing tax credits, if each of the general partners qualifies as a nonprofit organization, or the following two requirements are satisfied: A general partner of the limited partnership is a wholly owned subsidiary of a nonprofit organization, and A nonprofit organization either manages the rehabilitation project, or will be the recipient of net cash flow or the residual sale proceeds upon sale of the rehabilitation project. “Partially deferred loans” means loans for which there is periodic payment of a portion of the principal or interest, or both, due during the term of the loan with unpaid amounts accrued and repaid upon maturity of the loan or sale or transfer of the property. “Political subdivision” means any municipal corporation in Maryland subject to the provisions of Article XI-E of the Constitution, the Mayor and City Council of Baltimore, and any of the 23 counties in Maryland. “Program” means the Regular Rehabilitation Program of the Maryland Housing Rehabilitation Program. “Program Director” means the Assistant Director of Special Loan Programs in the Division of Development Finance of the Department. Repealed. “Secretary” means the Secretary of Housing and Community Development. “Shared living unit facility” means a dwelling which will accommodate two or more households when some or all of the living, dining, kitchen, or sanitary facilities are shared by the households. Single Family Owner-Occupant. “Single family owner-occupant” means an eligible borrower residing or intending to reside in an eligible building which contains one residential unit and which may contain one accessory dwelling unit financed under the Program, but which contains no other units, either commercial or residential. “Single family owner-occupant” includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if: The income of the trust does not exceed an amount established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland; and The beneficiary of the trust is an individual who resides in the residential building owned by the trust. “Special Loan Programs Fund” means the special fund created under Housing and Community Development Article, §4-501(a)(1), Annotated Code of Maryland. “Sponsor” means an owner who receives a loan to rehabilitate a building with four or fewer units used for residential rental purposes. “Structurally sound” means not having any physical conditions serious enough to endanger the life, property, or safety of the occupants or their invitees, whether or not the building is in compliance with applicable codes and rehabilitation standards. “Subcontractor” means an entity authorized by the Department to carry out the duties and responsibilities of a local administrator under Regulation .16D(1) of this chapter and to hold and disburse funds under Regulation .16D(2) of this chapter. “Work write-up” means a description of the structural, mechanical, electrical, and other work items needed for the rehabilitation of an eligible building.