The purpose of this chapter is to prescribe the policies and procedures for designating sustainable communities by the Subcabinet or the Secretary. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Housing and Community Development Article, Title 6, Subtitle 2, Annotated Code of Maryland. “Application” means an application to the Department as described in Regulation .03 of this chapter. “Community development financial institution (CDFI)” has the meaning stated in COMAR 05.17.01.02. “Community development organization (CDO)” has the meaning stated in COMAR 05.17.01.02. “Community legacy project” or “project” has the meaning stated in COMAR 05.17.01.02. “Department” means the Department of Housing and Community Development, a principal department of the State. “Local government” has the meaning stated in COMAR 05.17.01.02. “Nonprofit organization” has the meaning stated in COMAR 05.17.01.02. “Priority funding area” has the meaning stated in COMAR 05.17.01.02. “Secretary” means the Secretary of Housing and Community Development. “Sponsor” has the meaning stated in COMAR 05.17.01.02. “Subcabinet” means the smart growth cabinet defined in State Government Article, §9-1406, Annotated Code of Maryland. “Sustainable community” means the part of a priority funding area that: Has been designated as a sustainable community in accordance with this chapter; Has been designated as a BRAC Revitalization and Incentive Zone under Economic Development Article, Title 5, Subtitle 13, Annotated Code of Maryland; or Has been designated as a transit-oriented development under Transportation Article, §7-101, Annotated Code of Maryland. “Sustainable community plan” means a plan, consisting of one or more community legacy projects or other revitalization projects, to prevent or reverse the decline of or disinvestment in a sustainable community through improvements in residential, commercial, or other public or private properties. An application for a sustainable community designation shall be submitted to the Department in accordance with the schedule that the Department establishes. An application shall: Be on standard forms prescribed by the Department and Subcabinet; Be submitted by a local government or local governments that comply with the minimum eligibility requirements set forth in COMAR 05.17.01.03A(2)—(4); Provide a detailed map and description of the proposed sustainable community; Provide a sustainable community plan; Specify the ability of a Sponsor to carry out the proposed sustainable community plan; Describe the strength and quality of partnerships created among the federal government, the State government, local governments, political subdivisions, community development organizations, and other private organizations to develop the sustainable community plan, including: Financial support; Dedication of staff and resources; and Commitment to and development of local smart growth policies; Describe proposed benchmarks for evaluating whether the proposed sustainable community plan results in a desired outcome for a proposed sustainable community, such as: Stabilization; Reversal of social, economic, or physical decline; or Development of social, economic, or physical improvements; Describe the process used to seek and receive public input on the proposed sustainable community plan or community legacy project, including the nature and extent of public support or opposition; and Contain a resolution of support for the proposed area from the local government(s) in whose jurisdiction(s) the area is located. In addition to the requirements of §B of this regulation, an application or initial designation of a sustainable community shall demonstrate that: The sustainable community is in a priority funding area; Past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment indicate that there is a need for reinvestment in the proposed area; and The sustainable community satisfies one or more of the following criteria: Entities in the community such as local governments, employers, educational institutions, civic organizations, community organizations, or cultural organizations support the proposed sustainable community plan or community legacy project and have pledged resources to its development or implementation; The proposed sustainable community plan addresses the need for reinvestment in the area and enhances the area, including providing individuals of different incomes with a range of housing options, employment opportunities, or other amenities; There is a cultural or historical significance in the community or communities located in the proposed area; The proposed area is close to a town center or a transportation center; The proposed sustainable community plan is consistent with and complements other existing or proposed projects for housing, commercial or community development, education, historic preservation, neighborhood revitalization, transportation, or other factors significant to the comprehensive enhancement of the community; or There is a demonstrated need for financing assistance for small businesses, nonprofit organizations, or microenterprises. Application Evaluation. Each application shall be submitted to the Department to determine whether all of the information required under Regulation .03 of this chapter is contained in the application. Upon receipt of all required information, the Department shall: Convene an interagency review team from the agencies of the Subcabinet to: Review applications and plans; Provide assistance and guidance to applicants; and Make recommendations to the Secretary. Accept public input on the application; Refer the application to other State agencies for comment, as the Department considers appropriate; Consider any recommendation from a State unit or member of the Subcabinet; Consider geographic balance when reviewing applications; and Analyze each application as to determine whether the proposed sustainable community merits designation. The Department, in its discretion, may request additional information from the Sponsor concerning an application, including oral presentations. Upon completion of the requirements in §A(1)—(3) of this regulation, the Department shall make a recommendation on the application to the Secretary. Recommendation by the Secretary. Upon receipt of the Department’s recommendation, the Secretary: May request additional information from the Sponsor concerning the application, including oral presentations; and Shall make a recommendation to the Subcabinet on whether it should approve, disapprove, or approve with modifications the designation of the area as a sustainable community. The Subcabinet, on the recommendation of the Secretary, may designate an area as a sustainable community. If the Subcabinet has not acted within 90 days of a recommendation from the Secretary, the Secretary may designate an area as a sustainable community without the approval of the Subcabinet. Denial of Applications. If the Subcabinet or the Secretary, acting under §B of this regulation, determines not to designate all or part of an area as a sustainable community, such party shall issue a written notice of denial with an evaluation and explanation of the denial. Reconsiderations. An applicant may request initial reconsideration of a denial by submitting a written request to the party that issued the denial notice. The request for reconsideration must be received within 30 days following the date of the denial notice. The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. The Subcabinet or Secretary, as applicable, shall respond in writing to the applicant’s request for reconsideration within 90 days of receipt of the request for reconsideration. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.02. To maintain a sustainable community designation, a local government or local governments shall file an updated plan and application with the Department every 5 years Regulations .03—.05 of this chapter shall apply to the procedures and approval process for redesignating and maintaining a sustainable community designation. The Department may establish an abbreviated application for redesignating and maintaining a sustainable community designation. A local government or local governments may submit modifications to a sustainable community designation to the Department in accordance with the schedule that the Department establishes. The subcabinet, on the recommendation of the Secretary, may approve modifications to a sustainable community designation. Regulations .03—.05 of this chapter shall apply to the procedures and approval process for modifying a sustainable community designation. The Department may establish an abbreviated application for modifying a sustainable community designation. Housing and Community Development Article, Title 6, Subtitle 2, Annotated Code of Maryland Effective date: February 20, 2012 (39:3 Md. R. 258)