# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 04 — Special Loan Programs

### Chapter 11 — Special Housing Opportunities Program

#### Regulation .14 Loan Procedures—Construction or Rehabilitation.

*COMAR 05.04.11.14*

A. Construction Period Disbursements. If the loan finances construction or rehabilitation, the Administration shall:

  (1) Conduct on-site inspections of the construction;

  (2) Make construction loan disbursements on the basis of work-in-place, plus materials acceptably stored on-site, less a retention of up to 10 percent of the construction request; and

  (3) Make disbursement for materials acceptably stored off-site, if the materials are:

    (a) In a bonded warehouse;

    (b) Set aside and labeled with the project's name;

    (c) Inspected by the Administration's inspector;

    (d) Insured with the Administration as a named insured; and

    (e) Documented by evidence of payment for the materials.

B. Cost Certification. For loans financing new construction and substantial rehabilitation under a cost-plus form of construction contract, the Administration shall require the sponsor and contractor to submit, upon completion of the project, a certification of project costs prepared by an independent accountant.

C. Permanent Mortgage Closing. A closing shall be arranged after construction completion and cost certification according to procedures and documentation as may be required by the Administration.