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<regulation prefix="Regulation" num=".16" citation="COMAR 05.12.01.16" title_num="05" subtitle_num="12" chapter_num="01" heading="Rental Housing Requirements — Landlord Obligations.">
  <paragraph num="A.">
    <text>Nondiscrimination. Households having vouchers under the Section 8 Tenant-Based Assistance: Housing Choice Voucher Program (24 CFR Part 982) or other tenant-based rental assistance, including the HOME tenant-based rental assistance program, may not be excluded from units in the HOME project because of the status of the prospective tenant as a holder of such voucher or other tenant-based assistance document.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Annual Review.</text>
    <paragraph num="(1)">
      <text>Tenant Income.</text>
      <paragraph num="(a)">
        <text>Owners shall examine the income of each tenant household annually.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Unless a unit has been allocated federal low-income housing tax credits, tenants who no longer qualify as income eligible households shall pay rent equal to the lesser of:</text>
        <paragraph num="(i)">
          <text>The amount payable by the tenant under State or local law; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>30 percent of the household's adjusted monthly income as recertified annually.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>If noncompliance with the occupancy requirements is caused by an increase in tenant income, all vacancies shall be filled with eligible households until the noncompliance is corrected.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Rent Increases.</text>
      <paragraph num="(a)">
        <text>Maximum monthly rent shall be recalculated by the owner annually.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The Department shall review and approve the proposed adjustments to rent before they are implemented.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Lease Terms.</text>
    <paragraph num="(1)">
      <text>Minimum Term. Leases for HOME units are for 1 year or more unless the owner and tenant mutually agree otherwise.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The lease shall be reviewed and approved by the Department to confirm that it does not contain an agreement by the tenant:</text>
      <paragraph num="(a)">
        <text>To be sued, to admit guilt, or confess judgment in favor of the owner in a legal proceeding related to the lease;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>That the owner may take, hold, or sell personal property of household members without notice and a court decision on the rights of the parties;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>To waive any legal liability arising from the owner's or the owner's agents' intentional or negligent acts or failure to act;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>That the owner may initiate a lawsuit against the tenant without notice to the tenant;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>That the owner may evict the tenant, or any household member, without obtaining a court decision on the merits, in which the tenant had the opportunity to present a defense;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>To waive any right to trial by jury;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>To waive any appeal rights or otherwise challenge a court decision concerning the lease;</text>
      </paragraph>
      <paragraph num="(h)">
        <text>To pay legal fees or costs if the tenant wins in court; and</text>
      </paragraph>
      <paragraph num="(i)">
        <text>To accept supportive services that are offered (other than a tenant in transitional housing).</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Lease Termination. A lease may only be terminated or a renewal be refused upon 30 days written notice and after:</text>
      <paragraph num="(a)">
        <text>Serious or repeated violations of the lease terms;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A violation of applicable law;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Completion of the tenancy period for transitional housing or failure to follow any required transitional housing supportive services plan; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Other good cause, which does not include an increase in the tenant’s income or refusal of the tenant to purchase the housing.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Property Maintenance.</text>
    <paragraph num="(1)">
      <text>During the period of affordability, the owner of HOME-assisted rental housing shall maintain the premises in compliance with Regulation .14 §A(1) or B(6) of this chapter, as applicable.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Department or its designee shall inspect the property in accordance with the requirements contained in 94 CFR §92.504.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The property owner shall annually certify to the Department that each building and all HOME-assisted units in the project are suitable for occupancy and are in compliance with the Department’s property standards.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Tenant Selection. The owner of a rental housing development project assisted with HOME funds shall comply with the Department’s affirmative marketing requirements, including the adoption of written tenant selection policies and criteria that:</text>
    <paragraph num="(1)">
      <text>Limit the housing to income eligible households;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Are reasonably related to the tenant’s ability to perform the obligations of the lease;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Provide for selection of tenants from a written evaluation used in chronological order of application; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Provide prompt written notification to any rejected applicant and the grounds for the rejection.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Affirmative Fair Housing Marketing Plan. Each project shall submit for review and approval by the Department an affirmative fair housing marketing plan in accordance with the requirements of the Program Guide. The Department shall monitor the project’s compliance with the approved plan.</text>
  </paragraph>
  <paragraph num="G.">
    <text>Prohibited Fees. Project owners may not charge fees that are not customarily charged in rental housing, except that rental project owners may charge:</text>
    <paragraph num="(1)">
      <text>Reasonable application fees to prospective tenants;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Parking fees to tenants only if such fees are customary for rental housing projects in the neighborhood; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Fees for services such as bus transportation or meals, as long as the services are voluntary and fees are charged for services provided.</text>
    </paragraph>
  </paragraph>
</regulation>