The terms appearing in the Act shall have the meanings defined there and, in addition, the meanings used in these regulations. Terms Defined. “Accessory housing facility” means a dwelling unit with complete, independent sleeping, cooking, sanitation, and living facilities which are within or attached to, or on the same parcel as, and subordinate to, but under the same ownership as, a single-family, owner-occupied dwelling. “Act” means Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, as amended. “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. “Borrower” means an applicant who receives a loan under the Program. “Closing costs” means the total of all settlement costs and fees and, when applicable, initial payment for taxes, property insurance, title examination, or other expense items as determined by the Department. “Contract” means the written agreement between a borrower and a licensed general contractor or licensed home improvement contractor that: Is acceptable to the Department; and Describes the work to be financed by a loan made under the Program. “Deferred payment loan” means a loan which permits the deferral of principal or interest, or both principal and interest. “Department” means the Department of Housing and Community Development, a principal department of the State. “Director” means the Director of the Division of Development Finance of the Department. “Disabled” means a person having a medically determinable physical or mental impairment which is expected to last for a substantial period of time and which causes an inability to engage in regular, sustained employment or other gainful activity. “Elderly” means a person who is 62 years old or older. “Family of limited income” means one or more individuals residing as a household in a dwelling unit whose total combined annual income does not exceed the limits established from time to time by the Secretary in accordance with Housing and Community Development Article, §4-915, Annotated Code of Maryland. “Family of lower income” means one or more individuals residing as a household in a dwelling unit, whose combined total annual income does not exceed the limits established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland, which income limits will be less than those established for families of limited income. “Family of very low income” means one or more individuals residing as a household in a dwelling unit, whose combined total annual income does not exceed the limits established by the Secretary in accordance with Housing and Community Development Article, §4-916(b), Annotated Code of Maryland, which income limits will be less than those established for families of lower income. “Handicapped” means a person having a physical or mental impairment which is expected to be of an indefinite duration and which impedes the ability to live independently. “Level I local administrator” means a political subdivision certified by the Department under Regulation .16B of this chapter. “Level II local administrator” means a political subdivision certified by the Department under Regulation .16C of this chapter. “Loan” means a loan made under the Program. “Local administrator” means a level I or level II local administrator. “Owner-occupant” means an owner residing or intending to reside in an eligible property which is a shared housing facility or which includes an accessory housing facility. “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 Accessory, Shared, and Sheltered Housing Program. “Program Director” means the Director of Special Loan Programs in the Division of Development Finance of the Department. “Project” means the modification, addition, repair, renovation, or improvement to an existing property in order to provide accessory, shared, or sheltered housing. “Rehabilitation plan” means the rehabilitation plan described in Regulation .20 of this chapter. Related Costs. “Related costs” means costs related to the implementation of a rehabilitation project under the Program, such as appraisal fees, architect's and engineering fees, permit and permit application fees, and other similar costs approved by the Program. “Related costs” does not include loan application fees. “Secretary” means the Secretary of Housing and Community Development. “Shared housing facility” means a single-family, owner-occupied dwelling unit adapted for common and shared living use by the owner-occupant household and at least one other family of limited income, where some or all of the sleeping, cooking, living, or sanitary facilities are shared by all of the households. “Sheltered housing facility” means a single-family, owner-occupied dwelling unit that accommodates the sheltered housing sponsor and provides sleeping and living facilities, meals, and assistance with daily activities for a rental fee to not more than 15 elderly, disabled, or handicapped persons residing in the dwelling. “Sheltered housing sponsor” means an owner residing or intending to reside upon completion of the project in a sheltered housing facility. “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.