<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".05" citation="COMAR 05.06.01.05" title_num="05" subtitle_num="06" chapter_num="01" heading="Eligible Projects.">
  <paragraph num="A.">
    <text>General. A multifamily project is eligible for Fund insurance if it:</text>
    <paragraph num="(1)">
      <text>Is located in Maryland;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>When complete, conforms to all applicable federal, State, and local building, health, environmental, historic preservation, and housing codes or regulations;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Is zoned to permit rental housing; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Secures a loan which is in all respects in conformance with these regulations.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Uses.</text>
    <paragraph num="(1)">
      <text>A multifamily project shall be used primarily for residential dwelling purposes, including space for living, dining, sleeping, and sanitary purposes.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A multifamily project may include up to:</text>
      <paragraph num="(a)">
        <text>15 percent of the total building space for related noncommercial supporting purposes for use by the residents; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>5 percent of the total building space for incidental, ancillary, and supportive commercial or other nonresidential uses that may be used by residents and nonresidents.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>A project may include up to an additional 15 percent of the total building space for related noncommercial supporting purposes upon a written determination of the Director of the Fund that the nonresidential spaces and architectural configuration of the project are adaptable to other marketable uses.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Loans secured by cooperatives are eligible for insurance.</text>
  </paragraph>
  <paragraph num="D.">
    <text>Loans secured by a qualified condominium of five or more units are eligible for insurance.</text>
  </paragraph>
</regulation>