The purpose of this chapter is to prescribe the procedure for designating Neighborhood Conservation Areas by the Department upon request of a local government under Tax-Property Article, §9-255, Annotated Code of Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Housing and Community Development Article, Title 6, Subtitle 3, Annotated Code of Maryland. “Application” means an application to the Department as described in Regulation .03 of this chapter. “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. “Priority funding area” has the meaning stated in COMAR 05.17.01.02. “Secretary” means the Secretary of Housing and Community Development. “Sustainable community” means the part of a priority funding area that: Has been designated as a sustainable community in accordance with Title 6, Subtitle 02 of the Act; 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. An application for Neighborhood Conservation Area designation shall be submitted by a local government to the Department in accordance with the schedule that the Department establishes. An application shall: Be on standard forms prescribed by the Department; Provide a detailed map of the proposed neighborhood conservation area including electronic geographic information system (GIS) shape files; Provide a description of the proposed neighborhood conservation area including: The concentration of foreclosure activity; The concentration of blighted or vacant properties; and Housing market trends over time; Describe whether the proposed neighborhood conservation area includes a sustainable community or is located near a sustainable community; and Describe the process used to seek and receive public input on the proposed neighborhood conservation area, including the nature and extent of public support or opposition. An application for a designation of a neighborhood conservation area shall demonstrate that: The neighborhood conservation area: Is located within a priority funding area; Has a concentration of foreclosure activity; and Has a concentration of blighted or vacant properties; The local government either; Included an area in the proposed area located in or near a sustainable community; or Evaluated areas in or near sustainable communities and determined that the proposed area was more desirable as a neighborhood conservation area; and The proposed neighborhood conservation area has housing market trends that are weaker than average for the jurisdiction. 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 a review team to: Review the applications; Provide assistance and guidance to applicants; and Make recommendations to the Secretary; Refer the application to other State agencies for comment, as the Department considers appropriate; Consider any recommendation from a State agency; and Analyze each application as to determine whether the proposed neighborhood conservation area merits designation. The Department, in its discretion, may request additional information from the local government 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 Department. Upon receipt of the Department’s recommendation, the Secretary: May request additional information from the local government concerning the application, including oral presentations; and Shall make a determination to approve, disapprove, or approve with modifications the designation of the area as a community conservation area. The Secretary may designate an area as a Neighborhood Conservation Area. Denial of Applications. If the Secretary, acting under §A of this regulation, determines not to designate all or part of an area as a neighborhood conservation area, the Secretary 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 Secretary. 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 Department, 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. A local government or local governments may submit modifications to a neighborhood conservation area designation to the Department in accordance with the schedule that the Department establishes. The Secretary may approve modifications to a Neighborhood Conservation Area designation. Regulations .03—.05 of this chapter shall apply to the procedures and approval process for modifying a neighborhood conservation area designation. The Department may establish an abbreviated application for modifying a neighborhood conservation area designation. Tax Property Article, §9-255(a)(2), Annotated Code of Maryland Effective date: April 15, 2013 (40:7 Md. R. 609)