Chapter 01. Self-Help Homeownership Technical Assistance Program
Regulation .01 General.LinkCopy Citation
This chapter describes the policies and procedures for making technical assistance grants to nonprofit organizations and local jurisdictions under the Program.
Regulation .02 Objective.LinkCopy Citation
The objectives of the Program are to make technical assistance grants to expand:
A.
The production of decent, affordable housing for families of limited income through the use of self-help methods of rehabilitation and construction;
B.
Homeownership opportunities for those families for whom it would otherwise not be available without the cost savings achieved by using the self-help methods of rehabilitation and construction; and
C.
Self-reliance, pride of ownership, and sense of community for families who participate in the Program.
Regulation .03 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated and as defined in the Act.
B.
Terms Defined.
(1)
“Act” means Housing and Community Development Article, Title 4, Subtitle 17, Annotated Code of Maryland.
(2)
“Administration” means the Community Development Administration, an agency within the Division of Development Finance of the Department.
(3)
“Applicant” means any eligible local jurisdiction or nonprofit organization who applies for a technical assistance grant from the Program.
(4)
“Department” means the Department of Housing and Community Development, a principal department of the State.
(5)
“Director” means the Director of the Division of Development Finance of the Department.
(6)
“Family of limited income” means one or more individuals residing as a household in a dwelling unit whose total combined annual income does not exceed income limits established from time to time by the Secretary, in accordance with Housing and Community Development Article, §4-1706, Annotated Code of Maryland.
(7)
“Legal entity” means a corporation, association, general partnership, limited partnership, joint venture, nonprofit organization, business, government or political subdivision thereof, or governmental agency.
(8)
Local Jurisdiction.
(a)
“Local jurisdiction” means any municipal corporation in Maryland subject to the provisions of the State Constitution, Article XI-E, or any one of the 23 counties of the State or Baltimore City.
(b)
“Local jurisdiction” includes any board, commission, agency, department, or authority of any municipal corporation, county, or Baltimore City with authority to carry out the rehabilitation or construction of housing.
(9)
“Nonprofit organization” means a corporation, foundation, or other legal entity no part of the net earnings of which inures to the benefit of any private shareholder or individual holding an interest in the entity.
(10)
“Owner-builder” means an individual or family who provides all, or a substantial amount as determined by the Department, of the labor necessary to build a housing unit that will be the principal residence of that individual or family as part of a project under the Program.
(11)
“Owner-building” means the process engaged in by owner-builders in the construction of a principal residence as part of a project under the Program.
(12)
“Program” means the Self-Help Homeownership Technical Assistance Program of the Department.
(13)
“Project” means six or more housing units in close proximity to one another as determined by the Department which are built or rehabilitated using the self-help methods and with which the owner-builders or self-help rehabilitators work as a team on the construction or rehabilitation of each others' units.
(14)
“Secretary” means the Secretary of Housing and Community Development.
(15)
“Self-help rehabilitator” means an individual or family who provides all, or a substantial amount as determined by the Department, of the labor necessary to rehabilitate, renovate, or improve the principal residence of the individual or the family as part of a project under the Program.
(16)
“Self-help rehabilitation” means the process engaged in by self-help rehabilitators in the rehabilitation, renovation, or improvement of their principal residences as part of a project under the Program.
(17)
“Technical assistance grant” or “grant” means a grant awarded by the Program which enables a local jurisdiction or a nonprofit organization to provide technical assistance to owner-builders and self-help rehabilitators.
Regulation .04 Eligible Grantees.LinkCopy Citation
A nonprofit organization or local jurisdiction shall meet the following requirements to qualify for a grant under the Program:
A.
Have the legal capacity to enter into the grant agreement;
B.
Satisfy all legal requirements to operate in the State; and
C.
Meet the performance standards of the Department, as follows:
(1)
Not have defaulted on a prior loan or grant from the Department, including a default by failure to complete a project funded by a grant made under the Program within the required time period; and
(2)
Not be currently barred or suspended from any of the Department's programs.
Regulation .05 Eligible Use of Grant Funds.LinkCopy Citation
A.
Grants for construction activities and techniques may be made to local jurisdictions and nonprofit organizations to provide assistance to families of limited income who are owner-builders or self-help rehabilitators for the following purposes:
(1)
To assist, train, and supervise on self-help construction activities and techniques;
(2)
To assist in project development, including but not limited to:
(a)
Preparation of plans for self-help housing;
(b)
Preparation of contracts for professional services;
(c)
Application for project funding;
(d)
Packaging households' applications for assistance;
(e)
Preparation of subdivision maps;
(f)
Review of engineering plans and specifications for construction and rehabilitation projects; and
(g)
Compliance with appropriate requirements of funding agencies and local government;
(3)
Administrative costs of providing technical assistance for the activity funded by the Department; and
(4)
Any other costs approved by the Department in its sole discretion.
B.
Grants for information and technical assistance may be made in connection with a project receiving a grant from the Program for construction activities and techniques, to local jurisdictions and nonprofit organizations to provide owner-builders and self-help rehabilitators information and technical assistance, including:
(1)
The cost savings of owner-building and self-help rehabilitation;
(2)
Construction materials and methods;
(3)
The identity of local material sources and technical resources;
(4)
Financing requirements and opportunities;
(5)
Site acquisition;
(6)
Insurance and legal requirements;
(7)
Building codes, standards, and housing codes;
(8)
Other available housing alternatives; and
(9)
Any other information or technical assistance determined by the Department to further the purposes of the Program.
C.
Grants may only be awarded in connection with a project.
D.
Grants may not be used for the purchase of land, materials, tools, and construction equipment or for any costs of construction.
Regulation .06 Grant Allocation and Criteria.LinkCopy Citation
A.
Allocations.
(1)
The amount of funds available in the fiscal year for Program grants shall be determined as of July 1 of each fiscal year.
(2)
The Department shall notify local nonprofit organizations engaged in housing-related activities and local jurisdictions of allocations, fund availability, and application cycles.
(3)
Best efforts shall be made to award grants to facilitate the full use of Program funds in accordance with initial allocations of funds.
B.
Grant Applications. Grants shall be evaluated on a competitive basis in one or more rounds of competition, at the discretion of the Department, taking into consideration the following factors:
(1)
The extent to which the request for funds serves the largest proportion of families of limited income;
(2)
The extent to which the applicant uses available federal, State, and local programs and resources in the project;
(3)
The organizational capacity of the applicant to carry out the project;
(4)
The feasibility of the project;
(5)
The cost effectiveness of the project in terms of per unit self-help housing fund costs as determined by the Department;
(6)
The extent to which project participants use self-help labor; and
(7)
Any other factors considered relevant by the Department.
Regulation .07 Grant Terms and Conditions.LinkCopy Citation
A.
Grant Agreement. Each grantee shall be required to execute a grant agreement with the Department which shall contain such terms as the Department determines to be necessary to ensure compliance with this chapter, any special conditions imposed by grant approval, and any other terms and conditions specified by the Department.
B.
Grant Amount. The grant amount awarded for a project may not exceed, for each housing unit, 20 percent of the average purchase price, over the last 3 fiscal years for which data are available, of a residence financed by a residential mortgage loan purchased by the Administration under the Maryland Mortgage Program in the geographic region where the grant is to be awarded. The Department may provide in its policies for a lower maximum grant amount per project or per housing unit which will be awarded in any given fiscal year under the Program.
C.
Grant Term and Project Completion. The grantee shall complete the project within 2 years from the effective date of the grant agreement unless the Department, in its discretion, permits an extension of the grant term in the event of delays in project implementation beyond the reasonable control of the grantee. The grant shall be disbursed over the term as provided in the grant agreement.
D.
Repayment. The Department may require that a grant made under the Program be repaid, in whole or in part, upon the occurrence of:
(1)
Default under the terms of a grant agreement;
(2)
Failure of the recipient to complete the project within the time period specified in this regulation; or
(3)
Other conditions specified by the Department.
Regulation .08 Application and Processing Procedures.LinkCopy Citation
A.
Grant Applications. Applications for grants shall be on the form approved by the Department and shall include the following supporting documentation:
(1)
Organizational documents of the applicant;
(2)
Evidence of good standing of the applicant to transact business with the Maryland State Department of Assessments and Taxation and the applicant's state of organization, if different from Maryland;
(3)
An authorizing resolution of a nonprofit organization's governing body to undertake the grant;
(4)
Evidence of the number and type of housing units produced by the applicant;
(5)
The source of funding for the housing units produced;
(6)
The amount of funds the applicant is seeking;
(7)
The number of units in the project proposed by the applicant;
(8)
Description of services to be provided with the grant;
(9)
Expected types of activities to be conducted with the grant;
(10)
Geographic area in which the service or activity will be provided;
(11)
A budget setting forth the kinds and amounts of allowable expenditures to be made with the grant;
(12)
The proposed manner, timing, and conditions for disbursement of the grant;
(13)
A timetable for completion of each stage of the project and for final project completion;
(14)
A proposed form of agreement between the applicant and project participants to be used in connection with the project; and
(15)
Other documentation the Department considers necessary to evaluate the grant request.
B.
Grant Evaluation and Approval.
(1)
The Director or the Director's designee shall approve, disapprove, or modify grants in amounts of $250,000 or less.
(2)
For grants in amounts greater than $250,000, the Secretary shall approve, disapprove, or modify grants upon recommendation of the Director or the Director's designee.
Regulation .09 Administration of Grants.LinkCopy Citation
A.
Grantees shall maintain accurate financial records, in a form acceptable to the Department, of all transactions which relate to the grant, and make these records available to the Department for review on request for a period of not less than 3 years after the expiration of the grant agreement.
B.
Grantees shall submit a periodic progress report, in the form required by the Department and on the schedule specified in the grant agreement, which clearly shows progress of the grantee in relation to the grantee's strategic plan and proposed goals and objectives.
C.
Grantees under this Program shall make their books, accounts and records, their administrative offices and personnel, whether full-time, part-time, consultants, or volunteers, available to the Department during reasonable working hours, for the duration of the grant period and for a period of not fewer than 3 years after the expiration of the grant agreement.
Regulation .10 Nondiscrimination; Drug and Alcohol Free Workplace.LinkCopy Citation
A.
Grantees may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age as permitted under the federal Housing for Older Persons Act, as amended from time to time, or other similar federal laws, in leasing or otherwise providing dwelling accommodations or in any other aspect of the development, administration, or operation of any project or undertaking financed or assisted under the Program, or in any aspect of employment by any sponsor, developer, or contractor in the construction, repair, or maintenance of any property financed or assisted under the Program.
B.
Each grantee shall comply with applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices, and drug and alcohol free workplaces, including:
(1)
Titles VI and VII of the Civil Rights Act of 1964, as amended;
(2)
Title VIII of the Civil Rights Act of 1968, as amended;
(3)
The Americans with Disabilities Act of 1990, as amended;
(4)
The Department’s Minority Business Enterprise Program, as amended;
(5)
Executive Order 01.01.1989.18, Drug and Alcohol Free Workplace, and any Department or State regulations adopted or to be adopted to carry out the requirements of that order;
(6)
The Fair Housing Amendments Act of 1988, as amended; and
(7)
State Government Article, Title 20, Annotated Code of Maryland, as amended.
C.
Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and other parties.
Regulation .11 Program Administration.LinkCopy Citation
A.
Except for waivers under §D of this regulation, any action or decision required or permitted to be taken or made by the Department under these regulations may be taken or made by the Director or the Director's designee.
B.
The Department may terminate a grant or refuse to make additional disbursements under a grant agreement if it finds that the grantee is not complying with any of the requirements of the Program or the grant agreement.
C.
The Department may establish from time to time operational handbooks or manuals governing matters relating to the Program including descriptive statements of Program procedures which do not directly affect the rights of the public or the procedures available to the public.
D.
The Secretary may waive or vary particular provisions of these regulations if:
(1)
The waiver or variance is not inconsistent with the authorizing provisions of the Act;
(2)
In the written determination of the Secretary, the application of the regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act; and
(3)
The Office of the Attorney General approves the waiver for form and legal sufficiency.
Regulation .12 False Statements.LinkCopy Citation
A person may not knowingly make or cause to be made any false statement or report in any documents required to be furnished to the Department by any agreement relating to the Program.
Chapter annotations
Authority: Housing and Community Development Article, Title 4, Subtitle 17, Annotated Code of Maryland
History: Effective date: January 21, 2002 (29:1 Md. R. 22)
History: Regulation .10 amended effective March 16, 2015 (42:5 Md. R. 485)