The Department may offer HOME financial assistance as grants for the following purposes: Maryland HOME Initiatives Program Fund projects sponsored by nonprofit organizations, local governments, or State agencies, except that the Department reserves the right to make a conditional grant providing for repayment if there is a reasonable expectation of repayment; Projects for which federal or other funding agencies do not permit loans subordinate to their funds; Rehabilitation of owner-occupied housing; Activities which have a high public purpose, but do not result in an appreciably higher value in the property after the improvements, including, but not limited to: Lead paint abatement, Modifications required by the Maryland Historical Trust, Accessibility modifications, or Furnace and roof replacement; or Other eligible projects, activities, or costs as approved by the Department. A grant shall be evidenced by a grant agreement setting forth the terms and conditions of the grant, including the applicable requirements of this chapter. Except as provided in §D of this regulation, for HOME funds which are disbursed as grants, the HOME obligations of the recipient shall be set forth in a recorded declaration of covenants or other instrument acceptable to the Department. A recorded declaration of covenants is not required for a grant of HOME funds for: Rehabilitation of owner-occupied single family houses or one-to-four family residences; Operating expenses for CHDOs; or Other purposes not related to the acquisition or rehabilitation of property.