# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 06 — Housing Insurance

### Chapter 02 — Tax Credit Bridge Loan Insurance

#### Regulation .05 Permitted Uses of Insured Loan Proceeds.

*COMAR 05.06.02.05*

A. The Fund may insure bridge loans only if the loan proceeds are used for acquisition, construction, or rehabilitation and directly related soft costs, including developer fees, syndication fees, and an amount to cover a reasonable profit for the developer, required to complete the project.

B. If the bridge loan is made from the proceeds of tax-exempt bonds, or other obligations on which the interest is excluded from gross income for federal income tax purposes, the bridge loan may only be used for costs approved by the Department's bond counsel.