# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 15 — State Action Loans for Targeted Areas

### Chapter 01 — State Action Loans for Targeted Areas Program

#### Regulation .05 Eligible Uses.

*COMAR 05.15.01.05*

A. Financial assistance may be used for:

  (1) Loans for project development costs including, but not limited to:

    (a) The acquisition of land, structures, equipment, or furnishings which are or will be a part of a project;

    (b) Reasonable fees, as determined by the Program, for architectural, engineering, legal, or other special services;

    (c) Preparation of title binders, surveys, plans, and specifications as approved by the program;

    (d) Special studies such as:

      (i) Market and feasibility studies,

      (ii) Property appraisals,

      (iii) Test borings, and

      (iv) Other studies acceptable to the Department;

    (e) Site preparation and extension of utilities on-site;

    (f) Cost of labor and materials for new construction or rehabilitation or installation of improvements as set forth in approved plans and specifications for a project;

    (g) Acquisition of machinery and equipment necessary to the operation of a commercial/industrial enterprise as set forth in approved plans and specifications;

    (h) Indemnity and surety bonds;

    (i) Premiums on hazard, liability, title, and mortgage insurance;

    (j) Necessary fees, licenses, and permits related to construction, project review, and approval;

    (k) Payment and performance bonds;

    (l) Other direct project costs and fees acceptable to the Department;

  (2) Assurances, guarantees, loan guarantees, or other credit enhancement;

  (3) Buy-down of the rate of interest payable on a loan or a portion of a loan made by a third party;

  (4) Prepayment of interest on a loan or portion of a loan.

B. The Fund may be used to pay the expenses of the Program.