# COMAR Title 05 — Department of Housing and Community Development ## Subtitle 20 — Revitalization Programs ### Chapter 01 — Strategic Demolition and Smart Growth Impact Program **Authority:** Housing and Community Development Article, §§2-111(a) and 4-508, Annotated Code of Maryland **Administrative History:** Effective date: August 14, 2017 (44:16 Md. R. 808) #### Regulation .01 Purpose. *COMAR 05.20.01.01* The purpose of this chapter is to prescribe the policies and procedures for providing financial assistance for neighborhood revitalization projects, and for administering the Strategic Demolition and Smart Growth Impact Program. #### Regulation .02 Definitions. *COMAR 05.20.01.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, §4-508, Annotated Code of Maryland. (2) “Application” means an application to the Department as described in Regulation .04 of this chapter. (3) “Community development organization (CDO)” means a nonprofit organization that operates for the purpose of improving the physical, economic, or social environment of its geographic areas of operation. (4) “Department” means the Department of Housing and Community Development, a principal department of the State. (5) “Financial assistance” means a grant or a loan. (6) “Fund” means the Strategic Demolition and Smart Growth Impact Fund established under Housing and Community Development Article, §4-508, Annotated Code of Maryland. (7) “Nonprofit organization” means a corporation, foundation, or other legal entity that specifies in its charter or bylaws that no part of the net earnings may inure to the benefit of a private shareholder or individual holding any interest in the entity. (8) “Program” means the Strategic Demolition and Smart Growth Impact Program. (9) “Project” means a neighborhood revitalization project consisting of predevelopment activities, including demolition, land assembly, architecture and engineering studies, and site development in a sustainable community. (10) “Secretary” means the Secretary of Housing and Community Development. (11) “Sustainable community” means the area that has been designated a sustainable community in accordance with Housing and Community Development Article, §6-202, Annotated Code of Maryland. #### Regulation .03 Eligible Applicants and Uses. *COMAR 05.20.01.03* A. To be eligible to receive financial assistance under the Program, an applicant shall meet the following minimum requirements: (1) Be a government agency or a CDO; (2) Not have defaulted on any prior financial assistance from the Department; (3) Not be currently barred or suspended from any of the Department's programs; (4) Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and (5) If the applicant is a CDO, be in good standing and qualified to do business in Maryland. B. Financial assistance may be used for the following predevelopment costs and expenses on a project: (1) Demolition; (2) Land assembly; (3) Architecture and engineering; and (4) Site development. C. A recipient of financial assistance may grant or lend all or a portion of the financial assistance it receives from the Program to a designated third party to carry out the project in accordance with the terms and conditions of an agreement with the Department. #### Regulation .04 Applications. *COMAR 05.20.01.04* A. Applications for financial assistance shall be accepted in one or more competitive rounds to be announced by the Department annually. B. An application submitted to the Department shall: (1) Be on standard forms prescribed by the Department; (2) Be submitted by an applicant that meets the requirements of Regulation .03A of this chapter; (3) Be for a project that is located within a sustainable community; (4) State the amount and type of financial assistance requested; (5) Provide a comprehensive description of the applicant and project including: (a) The public purpose of the project and the revitalization needs of the community that will be served; (b) The compatibility of the project with local development plans or redevelopment plans; (c) A projected timeline for implementation of the project; (d) The ability of the applicant to carry out the proposed project in accordance with the projected timeline; (e) Other public and private resources available for implementing the project; and (f) The social and economic opportunities created by the project; (6) Provide a budget, in a form acceptable to the Department, that at a minimum shows anticipated project costs and expenses, anticipated sources of project revenue, and identification of the revenues that can be used to repay the financial assistance provided by the Program if provided as a loan; (7) Propose benchmarks for evaluating whether the proposed project results in a desired outcome such as community stabilization or reversing the social, economic, and physical decline of the sustainable community in which the project is located; (8) Describe any public input the applicant has received on the proposed project, including the nature and extent of the public support for or in opposition to the proposed project; (9) Demonstrate that, upon completion, the project will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the project is located; (10) Demonstrate the ability to gain site control of the project through ownership, leasehold interest, contract, option, or other written agreement satisfactory to the Department; (11) Provide evidence that the applicant has matching funds available for the project in the amounts required by Housing and Community Development Article, §4-508(g)(2), Annotated Code of Maryland, or in the competitive application round announcement; (12) Describe whether historic properties or districts will be impacted and how the applicant will comply with the requirements of State Finance and Procurement Article, §§5A-325—5A-326, Annotated Code of Maryland, and Financial Institutions Article, §13-1112(b), Annotated Code of Maryland; and (13) Include other information or documentation the Department may require. C. An application for financial assistance may be submitted to fund one or more projects. D. A recipient of financial assistance may file one or more applications in accordance with schedules established by the Department. #### Regulation .05 Application Processing. *COMAR 05.20.01.05* A. Each application shall be submitted to the Department to determine whether all of the information required under Regulation .04 of this chapter is contained in the application. B. All complete project applications will be competitively evaluated by the Department on a point basis, which shall include the following criteria: (1) Capacity of the applicant to carry out the project; (2) Community context; (3) Public purpose; (4) Leveraging and cost-effectiveness; (5) Geographic distribution; (6) Unique or time-sensitive projects; (7) Revitalization needs of the community; (8) Economic development and revitalization opportunities created by the project; and (9) Other factors established by the Department in the competitive round announcement. C. The Department, in its discretion, may: (1) Accept public input on each application; (2) Request from the applicant additional information concerning an application, including oral presentations; and (3) Consider recommendations from other State units on each application. D. Upon the Department’s completion of the review and scoring of the applications, the Department shall make a recommendation to the Secretary on the applications. E. Upon receipt of the Department's recommendation, the Secretary: (1) May request additional information from the applicant or Department concerning the application, including oral presentations; (2) May give priority to applications that provide for the likely repayment of the financial assistance; and (3) Shall act on the application by approving it, disapproving it, or approving it with modifications. F. If the Secretary determines not to approve all or part of an application, the Department shall issue a written notice of denial. G. Reconsideration. (1) An applicant may request initial reconsideration of a denial by submitting a written request to the Department, which must be received by the Department within 30 days following the date of the denial notice. (2) The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. (3) The Department shall respond in writing to the applicant's request for reconsideration within 90 days of receipt by the Department of the request for reconsideration. (4) 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. #### Regulation .06 Program Administration. *COMAR 05.20.01.06* A. The Department may establish from time to time detailed program guidelines containing application schedules, procedures, underwriting standards, processing requirements, and other requirements or matters relating to the Program. B. The Department may establish fees related to the processing of applications, underwriting, and servicing of financial assistance. C. The Department shall ensure that program guidelines, fee information, and application forms are publicly available on its website and at its offices. D. After financial assistance has been awarded to a recipient of financial assistance, the Department may: (1) Determine specific terms and conditions, including length of term and rate of interest, for the financial assistance, which may be awarded as grants, recoverable grants, unsecured loans, or loans secured by a mortgage or other lien or security interest, including a security interest that may be superior or subordinate to other mortgages, liens, or other security interests on the collateral; (2) Require and obtain appraisals, credit information, and other information related to making loans and enforcing the terms and conditions; (3) Enforce the terms of grants, loans, or other financial assistance according to their terms and conditions; (4) Commence and pursue any action to protect or enforce any right conferred by law, contract, or other agreement; (5) Modify any provision of any grant, loan, or other financial assistance in order to facilitate the successful completion or operation of a project; and (6) Exercise all powers authorized under the Act that are necessary or desirable for the implementation of the Program. #### Regulation .07 Books and Accounts. *COMAR 05.20.01.07* A. A recipient of financial assistance and the recipient’s contractors and subcontractors shall maintain the books, accounts, and records and shall file with the Department the financial and other reports the Department may from time to time require. B. All of these books, accounts, and records shall be open to the inspection of representatives of the Department or other agencies of the State during reasonable working hours. C. Books, accounts, and records of designated third parties, contractors, and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between a contractor or subcontractor and a recipient of financial assistance. D. A recipient of financial assistance shall submit reports to the Department on the progress or implementation of a project in accordance with an agreement with the Department. #### Regulation .08 Nondiscrimination; Drug and Alcohol Free Workplace. *COMAR 05.20.01.08* A. A recipient of financial assistance 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 any aspect of the Program, or in any aspect of employment by any recipient of financial assistance in connection with any project financed or assisted under the Program. B. A recipient of financial assistance shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, 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 Acts of 1968, as amended; (3) The Fair Housing Amendments Act of 1988, as amended; (4) State Government Article, Title 20, Annotated Code of Maryland, as amended; (5) The Department’s Minority Business Enterprise Program, as amended; (6) The Governor’s 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; and (7) The Americans with Disabilities Act of 1990, as amended. C. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and the recipient of financial assistance. #### Regulation .09 Waiver. *COMAR 05.20.01.09* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .10 False Statements. *COMAR 05.20.01.10* A. An individual may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Secretary or the Department by an agreement relating to financial assistance. B. An individual who violates §A of this regulation is subject to immediate cancellation or acceleration of the financial assistance provided by the Program and any other penalties authorized by law. ### Chapter 02 — Baltimore Regional Neighborhood Initiative **Authority:** Housing and Community Development Article, §§2-111, 5-508, and 6-505(b), Annotated Code of Maryland **Administrative History:** Effective date: August 14, 2017 (44:16 Md. R. 808) #### Regulation .01 Purpose. *COMAR 05.20.02.01* The purpose of this chapter is to prescribe the policies and procedures for providing financial assistance for administering the Baltimore Regional Neighborhood Initiative Program. #### Regulation .02 Definitions. *COMAR 05.20.02.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 6, Subtitle 5, Annotated Code of Maryland. (2) “Application” means an application to the Department as described in Regulation .04 of this chapter. (3) “Community development organization (CDO)” means a nonprofit corporation, foundation, or any other nonprofit legal entity whose purpose is to implement a clear revitalization strategy in a neighborhood or set of neighborhoods within Baltimore City or the inner-beltway communities of Baltimore County or Anne Arundel County. (4) “Community enhancement project” or “project” means a project submitted by an applicant to the Secretary for approval in accordance with the Act and this chapter for one or more of the following purposes: (a) Down payment assistance for homebuyers to purchase and rehabilitate homes; (b) Programs to acquire or rehabilitate vacant or blighted properties; (c) Programs to improve existing residential and business properties; (d) Programs to achieve energy efficiency through weatherization and energy retrofits; (e) Development of mixed-use projects that combine housing, retail, and office space; (f) Development or enhancement of community open space or public infrastructure; (g) Workforce and employment development programs; (h) Strategic demolition; and (i) Development or implementation of any other community enhancement project that the Department considers necessary to further the purposes of the Act. (5) “Department” means the Department of Housing and Community Development, a principal department of the State. (6) “Financial assistance” includes a grant, loan, assurance, guarantee, other credit enhancement, reduction in the principal obligation of or in the rate of interest payable on a loan or portion of a loan, or prepayment of interest on a subordinate or superior loan or portion of a loan. (7) “Fund” means the Baltimore Regional Neighborhood Initiative Fund established under Housing and Community Development Article, §6-510, Annotated Code of Maryland. (8) “Local government” means any of the 23 counties of the State, the City of Baltimore, a municipal corporation of the State subject to the provisions of the State Constitution, Article XI-E, or any of their duly authorized agencies or instrumentalities. (9) “Mixed use” means a use that combines commercial, business, institutional, open space, and residential uses, or some combination of those uses, in the same building or on the same site. (10) “Nonprofit organization” means a corporation, foundation, or other legal entity that specifies in its charter or bylaws that no part of the net earnings may inure to the benefit of a private shareholder or individual holding any interest in the entity. (11) “Program” means the Baltimore Regional Neighborhood Initiative established under the provisions of the Act. (12) “Program agreement” means an agreement or agreements between the Department and a recipient of financial assistance to implement one or more community enhancement projects in a designated Sustainable Community. (13) “Secretary” means the Secretary of Housing and Community Development. (14) “Sustainable community” means the part of a priority funding area that has been designated a sustainable community under Housing and Community Development Article, §6-205, Annotated Code of Maryland. (15) “Sustainable community plan” means a plan consisting of one or more community enhancement projects or other revitalization projects that are located in a sustainable community. #### Regulation .03 Eligible Applicants and Uses. *COMAR 05.20.02.03* A. A recipient of financial assistance shall meet the following minimum requirements: (1) Be a CDO; (2) Not have defaulted on any prior financial assistance from the Department; (3) Not be currently barred or suspended from any of the Department's programs; (4) Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and (5) Be in good standing and qualified to do business in Maryland. B. Financial assistance may be used for any costs and expenses related to the development or implementation of a community enhancement project as approved by the Secretary. C. Total noncapital expenditures from the Fund to applicants may not exceed 40 percent of a Program agreement. D. A recipient of financial assistance may grant or lend all or a portion of the financial assistance it receives from the Program to a designated third party to carry out the project in accordance with the terms and conditions of an agreement with the Department. #### Regulation .04 Applications. *COMAR 05.20.02.04* A. Applications for financial assistance shall be accepted in one or more competitive rounds to be announced by the Department annually. B. An application submitted to the Department shall: (1) Be on standard forms prescribed by the Department; (2) Be submitted by a CDO; (3) Be for a project that: (a) Is located within Baltimore City or the inner-beltway communities of Baltimore County or Anne Arundel County; and (b) Is part of and serves to implement a community enhancement project; (4) State the amount and type of financial assistance requested; (5) Provide a comprehensive description of the applicant and project including: (a) The neighborhood revitalization plan that includes community enhancement projects located in sustainable communities; (b) A description of the community conditions and how the project or applicant will address those conditions; (c) The ability of the project to address identified challenges within the community; (d) A projected timeline for implementation of the project; (e) The ability of the applicant to carry out the proposed project in accordance with the projected timeline; (f) Other public and private resources available for implementing the project; and (g) The social and economic opportunities created by the project; (6) Provide a budget, in a form acceptable to the Department, that at a minimum shows anticipated project costs and expenses, anticipated sources of project revenue, and identification of the revenues that can be used to repay the financial assistance provided by the Program if provided as a loan; (7) Propose benchmarks for evaluating whether the proposed project results in a desired outcome such as community stabilization or reversing the social, economic, and physical decline of the sustainable community in which the project is located; (8) Describe any public input the applicant has received on the proposed project, including the nature and extent of the public support for or in opposition to the proposed project; (9) If the project involves the applicant undertaking demolition, development, or rehabilitation, demonstrate: (a) That, upon completion, the project will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the project is located; and (b) The ability to gain site control of the project through ownership, leasehold interest, contract, option, or other written agreement satisfactory to the Department; (10) Demonstrate that the project can be completed within the time period of the Program agreement, as determined by the Department; (11) Contain the organizational documents of the applicant; (12) Describe whether historic properties or districts will be impacted and how the applicant will comply with the requirements of State Finance and Procurement Article, §§5A-325—5A-326, Annotated Code of Maryland, and Financial Institutions Article, §13-1112(b), Annotated Code of Maryland; (13) Contain written approval for the proposed project in the form of a local government resolution or letter of support; and (14) Include other information or documentation the Department may require. C. An application for financial assistance may be submitted to fund one or more projects. D. A CDO may submit an application with another CDO or with a community development financial institution that has the capacity and experience to assist in the financing of real estate projects within the community. E. A recipient of financial assistance may file one or more applications in accordance with schedules established by the Department. #### Regulation .05 Application Processing. *COMAR 05.20.02.05* A. Each application shall be submitted to the Department to determine whether all of the information required under Regulation .04 of this chapter is contained in the application. B. Upon receipt of all required information, the Department shall: (1) Accept public input on each application; (2) Consider recommendations from other State units on each application; (3) Provide written notice and a reasonable opportunity to comment to the political subdivision where the proposed community enhancement project is located as follows: (a) If the application affects a neighborhood entirely within a municipal corporation, the Department must provide notice and a reasonable opportunity to comment to the municipal corporation and not the surrounding county; or (b) If an application affects a neighborhood within more than one political subdivision, the Department must provide notice and a reasonable opportunity to comment to each political subdivision; and (4) Undertake an analysis of each application. C. All complete applications which meet the requirements of Regulations .03 and .04 of this chapter shall be evaluated on a point basis. D. The Department shall award up to a maximum of 200 total points across the following categories: (1) The neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan; (2) The description of the community conditions and the appropriateness of outlined strategies to address those conditions; (3) The ability of each proposed community enhancement project to address identified challenges within the community; and (4) The capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing. E. Upon the Department’s completion of the review and scoring of the applications, the Department shall make a recommendation to the Secretary on the applications. F. Upon receipt of the Department's recommendation, the Secretary: (a) May request additional information from the applicant or Department concerning the application, including oral presentations; and (b) Shall act on the application by approving it, disapproving it, or approving it with modifications. G. If the Secretary determines not to approve an application, the Department shall issue a written notice of denial. H. Reconsideration. (1) An applicant may request initial reconsideration of a denial by submitting a written request to the Department, which must be received by the Department within 30 days following the date of the denial notice. (2) The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. (3) The Department shall respond in writing to the applicant's request for reconsideration within 90 days of receipt by the Department of the request for reconsideration. (4) 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. #### Regulation .06 Program Administration. *COMAR 05.20.02.06* A. The Department may establish from time to time detailed program guidelines containing application schedules, procedures, underwriting standards, processing requirements, and other requirements or matters relating to the Program. B. The Department may establish fees related to the processing of applications, underwriting, and servicing of financial assistance. C. The Department shall ensure that program guidelines, fee information, and application forms are publicly available on its website and at its offices. D. After financial assistance has been awarded to a recipient of financial assistance, the Department may: (1) Determine specific terms and conditions, including length of term and rate of interest, for the financial assistance, which may be awarded as grants, recoverable grants, unsecured loans, or loans secured by a mortgage or other lien or security interest, including a security interest that may be superior or subordinate to other mortgages, liens, or other security interests on the collateral; (2) Require and obtain appraisals, credit information, and other information related to making loans and enforcing the terms and conditions; (3) Enforce the terms of grants, loans, or other financial assistance according to their terms and conditions; (4) Commence and pursue any action to protect or enforce any right conferred by law, contract, or other agreement; (5) Modify any provision of any grant, loan, or other financial assistance in order to facilitate the successful completion or operation of a project; and (6) Exercise all powers authorized under the Act that are necessary or desirable for the implementation of the Program. #### Regulation .07 Books and Accounts. *COMAR 05.20.02.07* A. A recipient of financial assistance and the recipient’s contractors and subcontractors shall maintain the books, accounts, and records and shall file with the Department the financial and other reports the Department may from time to time require. B. All of these books, accounts, and records shall be open to the inspection of representatives of the Department or other agencies of the State during reasonable working hours. C. Books, accounts, and records of designated third parties, contractors, and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between a contractor or subcontractor and a recipient of financial assistance. D. A recipient of financial assistance shall submit reports to the Department on the progress or implementation of a project in accordance with an agreement with the Department. #### Regulation .08 Nondiscrimination; Drug and Alcohol Free Workplace. *COMAR 05.20.02.08* A. An Applicant 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 any aspect of the Program, or in any aspect of employment by any applicant in connection with any project financed or assisted under the Program. B. An Applicant shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, 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 Acts of 1968, as amended; (3) The Fair Housing Amendments Act of 1988, as amended; (4) State Government Article, Title 20, Annotated Code of Maryland, as amended; (5) The Department’s Minority Business Enterprise Program, as amended; (6) The Governor’s 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; and (7) The Americans with Disabilities Act of 1990, as amended. C. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and other parties, and between applicants and other parties. #### Regulation .09 Waiver. *COMAR 05.20.02.09* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .10 False Statements. *COMAR 05.20.02.10* A. An individual may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Secretary or the Department by an agreement relating to financial assistance. B. An individual applying for or benefiting from financial assistance under the Program may not knowingly make or cause to be made a false statement or report for the purpose of influencing the action of the Secretary or the Department on an application or for the purpose of influencing the action of the Secretary or the Department affecting financial assistance already provided. C. An individual who violates §A or B of this regulation is subject to immediate cancellation or acceleration of the financial assistance provided by the Program and any other penalties authorized by law. ### Chapter 03 — Seed Community Development Anchor Institution Program **Authority:** Housing and Community Development Article, §4-509, Annotated Code of Maryland **Administrative History:** Effective date: August 14, 2017 (44:16 Md. R. 808) **Administrative History:** Regulation .02B amended effective January 5, 2026 (52:26 Md. R. 1309) **Administrative History:** Regulation .03B amended effective January 5, 2026 (52:26 Md. R. 1309) **Administrative History:** Regulation .04B amended effective January 5, 2026 (52:26 Md. R. 1309) #### Regulation .01 Purpose. *COMAR 05.20.03.01* The purpose of this chapter is to prescribe the policies and procedures for providing financial assistance under and for administering the Seed Community Development Anchor Institution Program. #### Regulation .02 Definitions. *COMAR 05.20.03.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, §4-509, Annotated Code of Maryland. (2) “Anchor institution” means: (a) An institution of higher education in the State, including departments, foundations, and other entities of the institution; or (b) A hospital institution in the State, including departments, foundations, and other entities of the institution that: (i) Has a group of at least five physicians who are organized as a medical staff for the institution; (ii) Maintains facilities to provide, under the supervision of the medical staff, diagnostic and treatment services for two or more unrelated individuals; and (iii) Admits or retains the individuals for overnight care. (3) “Application” means an application to the Department as described in Regulation .05 of this chapter. (4) “Blighted area” means an area in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance. (5) “Department” means the Department of Housing and Community Development, a principal department of the State. (6) “Financial assistance” means a grant or a loan. (7) “Fund" means the Seed Community Development Anchor Institution Fund established under Housing and Community Development Article, §4-509, Annotated Code of Maryland. (8) “Matching funds” means funds that are contributed to the project in an amount that equals the amount of financial assistance received from the Fund. (9) “Program” means the Seed Community Development Anchor Institution Program established under the provisions of the Act. (10) “Project” means a project submitted by an anchor institution to the Secretary for approval in accordance with the Act and this chapter. (11) “Recipient of financial assistance” means an anchor institution approved by the Department to receive financial assistance under the Program. (12) “Secretary” means the Secretary of Housing and Community Development. (13) “Sustainable community” means an area designated as a sustainable community under Housing and Community Development Article, §6–205, Annotated Code of Maryland. #### Regulation .03 Eligible Applicants and Uses. *COMAR 05.20.03.03* A. A recipient of financial assistance shall meet the following minimum requirements: (1) Be an anchor institution; (2) Not have defaulted on any prior financial assistance from the Department; (3) Not be currently barred or suspended from any of the Department's programs; (4) Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and (5) Be in good standing and qualified to do business in Maryland. B. Financial assistance may be used for any costs and expenses related to community development projects in sustainable communities or in blighted areas of the State. C. A recipient of financial assistance may grant or lend all or a portion of the financial assistance it receives from the Program to a designated third party to carry out the project in accordance with the terms and conditions of an agreement with the Department. #### Regulation .04 Application Requirements. *COMAR 05.20.03.04* A. Applications for financial assistance shall be accepted in one or more competitive rounds to be announced by the Department annually. B. An application submitted to the Department shall: (1) Be on standard forms prescribed by the Department; (2) Be submitted by an applicant that meets the requirements of Regulation .03A of this chapter; (3) Be for a project that is located within a sustainable community or within a blighted area; (4) State the amount and type of financial assistance requested; (5) Provide a comprehensive description of the applicant and project including: (a) The public purpose of the project and the needs of the community that will be served; (b) A projected timeline for implementation of the project; (c) The ability of the applicant to carry out the proposed project in accordance with the projected timeline; (d) Other public and private resources available for implementing the project; and (e) The social and economic benefits created by the project; (6) Provide a budget, in a form acceptable to the Department, that at a minimum shows anticipated project costs and expenses, anticipated sources of project revenue, and identification of the revenues that can be used to repay the financial assistance provided by the program if provided as a loan; (7) Propose benchmarks for evaluating whether the proposed project results in a desired outcome for the sustainable community or blighted area, such as community stabilization or reversing economic, social, and physical decline of the community in which the project is located; (8) Describe any public input the applicant has received on the proposed project, including the nature and extent of the public support for or in opposition to the proposed project; (9) Demonstrate that, upon completion, the project will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the project is located; (10) Demonstrate the ability to gain site control if applicable to the project through ownership, leasehold interest, contract, option or other agreement satisfactory to the Department; (11) Provide evidence that the applicant has matching funds available for the project in the amounts required by Housing and Community Development Article, §4-509(g)(2), Annotated Code of Maryland, or in the competitive application round announcement; (12) Describe whether historic properties or districts will be impacted and how the applicant will comply with the requirements of State Finance and Procurement Article, §§5A-325—5A-326, Annotated Code of Maryland, and Financial Institutions Article, §13-1112(b), Annotated Code of Maryland; and (13) Include other information or documentation the Department may require. C. An application for financial assistance may be submitted to fund one or more projects. D. A recipient of financial assistance may file one or more applications in accordance with schedules established by the Department. #### Regulation .05 Application Processing. *COMAR 05.20.03.05* A. The Department shall determine whether information required under Regulation .04 of this chapter is contained in the application. B. All complete applications will be competitively evaluated by the Department on a point basis, which shall include the following criteria: (1) Capacity of the applicant to carry out the project; (2) Community context; (3) Public purpose; (4) Leveraging and cost-effectiveness; (5) Geographic distribution; (6) Unique or time-sensitive projects; (7) Revitalization needs of the community; (8) Economic development and revitalization opportunities created by the project; and (9) Other factors established by the Department in the competitive round announcement. C. The Department, in its discretion, may: (1) Accept public input on an application; (2) Request from the applicant additional information concerning an application, including oral presentations; and (3) Refer the application to other State agencies, as the Department considers appropriate, to undertake the analysis of the application. D. Upon the Department’s completion of the review and scoring of the applications, the Department shall make a recommendation to the Secretary on the applications. E. Upon receipt of the Department's recommendation, the Secretary: (1) May request additional information from the applicant or Department concerning the application, including oral presentations; (2) May give priority to applications that provide for the likely repayment of the financial assistance; and (3) Shall act on the application by approving it, disapproving it, or approving it with modifications. F. If the Secretary determines not to approve all or part of an application, the Department shall issue a written notice of denial. G. Reconsideration. (1) An applicant may request initial reconsideration of a denial by submitting a written request to the Department, which must be received by the Department within 30 days following the date of the denial notice. (2) The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. (3) The Department shall respond in writing to the applicant's request for reconsideration within 90 days of receipt by the Department of the request for reconsideration. (4) 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. #### Regulation .06 Program Administration. *COMAR 05.20.03.06* A. The Department may establish from time to time detailed program guidelines containing application schedules, procedures, underwriting standards, processing requirements, and other requirements or matters relating to the program. B. The Department may establish fees related to the processing of applications, underwriting, and servicing of financial assistance. C. The Department shall ensure that program guidelines, fee information, and application forms are publicly available on its website and at its offices. D. After financial assistance has been awarded to a recipient of financial assistance, the Department may: (1) Determine specific terms and conditions, including length of term and rate of interest, for the financial assistance, which may be awarded as grants, recoverable grants, unsecured loans, or loans secured by a mortgage or other lien or security interest, including a security interest that may be superior or subordinate to other mortgages, liens, or other security interests on the collateral; (2) Require and obtain appraisals, credit information, and other information related to making loans and enforcing the terms and conditions; (3) Enforce the terms of grants, loans, or other financial assistance according to their terms and conditions; (4) Commence and pursue any action to protect or enforce any right conferred by law, contract, or other agreement; (5) Modify any provision of any grant, loan, or other financial assistance in order to facilitate the successful completion or operation of a project; and (6) Exercise all powers authorized under the Act that are necessary or desirable for the implementation of the Program. #### Regulation .07 Books and Accounts. *COMAR 05.20.03.07* A. A recipient of financial assistance and the recipient’s contractors and subcontractors shall maintain the books, accounts, and records and shall file with the Department the financial and other reports the Department may from time to time require. B. All of these books, accounts, and records shall be open to the inspection of representatives of the Department or other agencies of the State during reasonable working hours. C. Books, accounts, and records of designated third parties, contractors, and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between a contractor or subcontractor and a recipient of financial assistance. D. A recipient of financial assistance shall submit reports to the Department on the progress or implementation of a project in accordance with an agreement with the Department. #### Regulation .08 Nondiscrimination; Drug and Alcohol Free Workplace. *COMAR 05.20.03.08* A. A recipient of financial assistance 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 any aspect of the Program, or in any aspect of employment by any recipient of financial assistance in connection with any project financed or assisted under the Program. B. A recipient of financial assistance shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, 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 Acts of 1968, as amended; (3) The Fair Housing Amendments Act of 1988, as amended; (4) State Government Article, Title 20, Annotated Code of Maryland, as amended; (5) The Department’s Minority Business Enterprise Program, as amended; (6) The Governor’s 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; and (7) The Americans with Disabilities Act of 1990, as amended. C. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and the recipient of financial assistance. #### Regulation .09 Waiver. *COMAR 05.20.03.09* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .10 False Statements. *COMAR 05.20.03.10* A. An individual may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Secretary or the Department by an agreement relating to financial assistance. B. An individual who violates §A of this regulation is subject to immediate cancellation or acceleration of the financial assistance provided by the Program and any other penalties authorized by law. ### Chapter 04 — National Capital Strategic Economic Development Fund **Authority:** Housing and Community Development Article, §§2-102(a)(7) and 4-510, Annotated Code of Maryland **Administrative History:** Effective date: July 1, 2019 (46:13 Md. R. 589) #### Regulation .01 Purpose. *COMAR 05.20.04.01* The purpose of this chapter is to prescribe the policies and procedures for providing grants for administering the National Capital Strategic Economic Development Fund. #### Regulation .02 Definitions. *COMAR 05.20.04.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 4, Subtitle 5, Annotated Code of Maryland. (2) “Application” means an application to the Department as described in Regulation .04 of this chapter. (3) “Commercial or residential development project” may include renovation and rehabilitation of single family homes, acquisition and rehabilitation of vacant homes for resale to new homebuyers, improvements to business properties, enhancement of community open space or public infrastructure, workforce and employment development programs, and such other projects as the Department may approve. (4) “Community development organization (CDO)” means a nonprofit corporation, foundation, or any other nonprofit legal entity whose purpose is to implement a clear revitalization strategy. (5) “Department” means the Department of Housing and Community Development, a principal department of the State. (6) “Fund” means the National Capital Strategic Economic Development Fund established under Housing and Community Development Article, §4-510, Annotated Code of Maryland. (7) “Grant agreement” means an agreement or agreements between the Department and a grantee to implement one or more projects. (8) “Grantee” means a recipient of funds under the Program. (9) “Nonprofit organization” means a corporation, foundation, or other legal entity that specifies in its charter or bylaws that no part of the net earnings may inure to the benefit of a private shareholder or individual holding any interest in the entity. (10) “Program” means the National Capital Strategic Economic Development Fund established under the provisions of the Act. (11) “Project” means a commercial or residential development project submitted by an applicant to the Secretary for approval in accordance with the Act and this chapter for site acquisition, land assembly, architecture and engineering, and site development for revitalization. (12) “Secretary” means the Secretary of Housing and Community Development. (13) “Sustainable community” means the part of a priority funding area that has been designated a sustainable community under Housing and Community Development Article, §6-205, Annotated Code of Maryland. #### Regulation .03 Eligible Applicants and Uses. *COMAR 05.20.04.03* A. A grantee shall meet the following minimum requirements: (1) Be a community development organization or a government agency; (2) Not have defaulted on any prior financial assistance from the Department; (3) Not be currently barred or suspended from any of the Department’s programs; (4) Have the legal capacity and all necessary legal authority to incur the obligations involved in the grant agreement; (5) If a community development organization, be in good standing and qualified to do business in Maryland; and (6) Provide evidence that the applicant has matching funds available for the project in the amounts required by Housing and Community Development Article, §4-510(g)(2), Annotated Code of Maryland, or in the competitive application round announcement. B. Grants may be used for any predevelopment costs and expenses related to the development or implementation of a project as approved by the Department. C. Appropriations to the Fund shall be allocated as follows: (1) 85% for projects in those areas of the State located between Interstate Highway 495 and the District of Columbia; and (2) 15% for projects throughout the State. #### Regulation .04 Applications. *COMAR 05.20.04.04* A. Applications for grants shall be accepted in one or more competitive rounds to be announced by the Department annually or as otherwise set forth in the Program guidelines. B. An application submitted to the Department shall: (1) Be on standard forms prescribed by the Department; (2) Be submitted by a community development organization or government agency; (3) Be for a project that: (a) Is located within a designated sustainable community; and (b) Is for an eligible purpose; (4) State the amount of grant requested; (5) Provide a comprehensive description of the applicant and project including: (a) The neighborhood revitalization plan that includes projects located in sustainable communities; (b) A description of the community conditions and how the project or applicant will address those conditions; (c) The ability of the project to address identified challenges within the community; (d) A projected timeline for implementation of the project; (e) The ability of the applicant to carry out the proposed project in accordance with the projected timeline; (f) Other public and private resources available for implementing the project; and (g) The social and economic opportunities created by the project; (6) Provide a budget, in a form acceptable to the Department, that at a minimum shows anticipated project costs and expenses and anticipated sources of project revenue; (7) Propose benchmarks for evaluating whether the proposed project results in a desired outcome such as community stabilization or reversing the social, economic, and physical decline of the sustainable community in which the project is located; (8) Describe any public input the applicant has received on the proposed project, including the nature and extent of the public support for or in opposition to the proposed project; (9) If the project involves the applicant undertaking demolition, development, or rehabilitation, demonstrate: (a) That, upon completion, the project will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the project is located; and (b) The ability to gain site control of the project through ownership, leasehold interest, contract, option, or other written agreement satisfactory to the Department; (10) Demonstrate that the project can be completed within the time period of the grant agreement, as determined by the Department; (11) Contain the organizational documents of any applicant that is a community development organization; (12) Describe whether historic properties or districts will be impacted and how the applicant will comply with the requirements of State Finance and Procurement Article, §§5A-325—5A-326, Annotated Code of Maryland, and Financial Institutions Article, §13-1112(b), Annotated Code of Maryland; and (13) Include other information or documentation the Department may require. C. An application for a grant may be submitted to fund one or more projects. D. An applicant may file one or more applications in accordance with schedules established by the Department. #### Regulation .05 Application Processing. *COMAR 05.20.04.05* A. Each application shall be submitted to the Department to determine whether all of the information required under Regulation .04 of this chapter is contained in the application. B. Each application shall include: (1) The neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan; (2) The description of the community conditions and the appropriateness of outlined strategies to address those conditions; (3) The ability of each proposed project to address identified challenges within the community; and (4) The capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing. C. Upon the Department’s completion of the review and scoring of the applications, the Department shall make a recommendation to the Secretary on the applications. D. Upon receipt of the Department’s recommendation, the Secretary: (1) May request additional information from the applicant or Department concerning the application, including oral presentations; and (2) Shall act on the application by approving it, disapproving it, or approving it with modifications. E. If the Secretary determines not to approve an application, the Department shall issue a written notice of denial. F. Reconsideration. (1) An applicant may request initial reconsideration of a denial by submitting a written request to the Department, which must be received by the Department within 30 days following the date of the denial notice. (2) The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. (3) The Department shall respond in writing to the applicant’s request for reconsideration within 90 days of receipt by the Department of the request for reconsideration. (4) 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. #### Regulation .06 Program Administration. *COMAR 05.20.04.06* A. The Department may establish, from time to time, detailed program guidelines containing application schedules, procedures, underwriting standards, processing requirements, and other requirements or matters relating to the Program. B. The Department may establish fees related to the processing of applications, underwriting, and servicing of grants. C. The Department shall ensure that program guidelines, fee information, and application forms are publicly available on its website and at its offices. D. After a grant has been awarded, the Department may: (1) Determine specific terms and conditions of the grant; (2) Enforce the terms of the grants according to their terms and conditions; (3) Commence and pursue any action to protect or enforce any right conferred by law, contract, or other agreement; (4) Modify any provision of any grant in order to facilitate the successful completion or operation of a project; and (5) Exercise all powers authorized under the Act that are necessary or desirable for the implementation of the Program. #### Regulation .07 Books and Accounts. *COMAR 05.20.04.07* A. A grantee and the grantee’s contractors and subcontractors shall maintain books, accounts, and records and shall file with the Department the financial and other reports the Department may from time to time require. B. All of these books, accounts, and records shall be open to the inspection of representatives of the Department or other agencies of the State during reasonable working hours. C. Books, accounts, and records of designated third parties, contractors, and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between a contractor or subcontractor and a grantee. D. A grantee shall submit reports to the Department on the progress or implementation of a project in accordance with an agreement with the Department. #### Regulation .08 Nondiscrimination; Drug and Alcohol Free Workplace. *COMAR 05.20.04.08* A. An applicant may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, gender identity, 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 any aspect of the Program, or in any aspect of employment by any applicant in connection with any project financed or assisted under the Program. B. An applicant shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, 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 Acts of 1968, as amended; (3) The Fair Housing Amendments Act of 1988, as amended; (4) State Government Article, Title 20, Annotated Code of Maryland, as amended; (5) The Department’s Minority Business Enterprise Program, as amended; (6) 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; and (7) The Americans with Disabilities Act of 1990, as amended. C. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and other parties, and between applicants and other parties. #### Regulation .09 Waiver. *COMAR 05.20.04.09* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .10 False Statements. *COMAR 05.20.04.10* A. An individual may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Secretary or the Department by a grant agreement or any other document relating to financial assistance from the Department. B. An individual applying for or benefiting from a grant agreement under the Program may not knowingly make or cause to be made a false statement or report for the purpose of influencing the action of the Secretary or the Department on an application or for the purpose of influencing the action of the Secretary or the Department affecting financial assistance already provided. C. An individual who violates §A or B of this regulation is subject to immediate termination of the grant agreement provided by the Program and any other penalties authorized by law. ### Chapter 05 — Business Façade Improvement Programs **Authority:** Housing and Community Development Article, §§2-102(a)(7) and 6-1103, Annotated Code of Maryland **Administrative History:** Effective date: April 15, 2024 (51:7 Md. R. 332) **Administrative History:** Regulation .02B amended effective February 17, 2025 (52:3 Md. R. 159) **Administrative History:** Regulation .03A amended effective February 17, 2025 (52:3 Md. R. 159) **Administrative History:** Regulation .04B amended effective February 17, 2025 (52:3 Md. R. 159) #### Regulation .01 Purpose. *COMAR 05.20.05.01* The purpose of this chapter is to prescribe the policies and procedures for administering the Business Facade Improvement Program Fund to assist qualified businesses with improving the outside appearance of buildings and facilities. #### Regulation .02 Definitions. *COMAR 05.20.05.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 6, Subtitle 11, Annotated Code of Maryland. (2) “Application” means an application to the Department as described in Regulation .04 of this chapter. (3) “Business” means a commercial or industrial enterprise. (4) “Community development organization” means an organization that meets the requirements of Housing and Community Development Article, §6-203, Annotated Code of Maryland (5) “Department” means the Department of Housing and Community Development, a principal department of the State. (6) “Grant agreement” means an agreement or agreements between the Department and a grantee to implement one or more projects. (7) “Grantee” means a political subdivision or community development organization that receives funds under the Program. (8) “Local project” means a project to improve the outside appearance of a qualified business’s building or facility. (9) “Political subdivision” means a county of the State, Baltimore City, or a municipal corporation of the State. (10) “Program” means the Business Façade Improvement Program established under the provisions of the Act. (11) “Project” means a program submitted by a political subdivision to the Department for approval in accordance with the Act and this chapter that describes the process for qualified businesses to apply to the political subdivision for funding for local projects. (12) “Qualified business” means a business that is located in a sustainable community and submits an application to a grantee to fund a local project. (13) “Secretary” means the Secretary of Housing and Community Development. (14) “Sustainable community” means the part of a priority funding area that has been designated a sustainable community under Housing and Community Development Article, §6-205, Annotated Code of Maryland. #### Regulation .03 Eligible Applicants and Uses. *COMAR 05.20.05.03* A. A grantee shall meet the following minimum requirements: (1) Be a political subdivision or a community development organization; (2) Not have defaulted on any prior financial assistance from the Department; (3) Not be currently barred or suspended from any of the Department’s programs; (4) Serve at least one sustainable community; and (5) Submit an application to the Department in accordance with the Act and this chapter. B. Grants may be used to implement projects approved by the Department. #### Regulation .04 Applications. *COMAR 05.20.05.04* A. Applications for grants shall be accepted in one or more competitive rounds to be announced by the Department annually or as otherwise set forth in the Program guidelines. B. An application submitted to the Department shall: (1) Be on standard forms prescribed by the Department; (2) Be submitted by an eligible applicant; (3) Identify the sustainable communities within its jurisdiction or service area; (4) State the amount of grant requested; (5) Provide a comprehensive description of the: (a) Application process for qualified businesses seeking to participate in the Program; (b) Criteria for rating qualified businesses that apply for grants; and (c) Criteria for awarding grants to qualified businesses; (6) Provide a budget, in a form acceptable to the Department, that at a minimum shows anticipated project costs and expenses and anticipated sources of project revenue; (7) Propose benchmarks for evaluating whether the proposed project results in a desired outcome such as community stabilization or reversing the social, economic, and physical decline of the sustainable community in which the project is located; (8) Describe any public input the applicant has received on the proposed project, including the nature and extent of the public support for or in opposition to the proposed project; (9) Demonstrate: (a) That, upon completion, the local projects will be in compliance with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which the local project is located; and (b) The ability of the qualified business to gain site control of the local project through ownership, leasehold interest, contract, option, or other written agreement satisfactory to the Department; (10) Demonstrate that the project can be completed within the time period of the grant agreement, as determined by the Department; (11) Describe whether historic properties or districts will be impacted and how the qualified businesses will comply with the requirements of State Finance and Procurement Article, §§5A-325—5A-326, and Financial Institutions Article, §13-1112(b), Annotated Code of Maryland; and (12) Include other information or documentation the Department may require. C. An application for a grant may be submitted to fund one or more projects. D. An applicant may file one or more applications in accordance with schedules established by the Department. #### Regulation .05 Application Processing. *COMAR 05.20.05.05* A. The Department shall determine whether information required under Regulation .04 of this chapter is contained in the application. B. All complete applications will be competitively evaluated by the Department on a point basis, which shall include the following criteria: (1) Capacity of the applicant to carry out the project; (2) Community context; (3) Public purpose; (4) Leveraging and cost-effectiveness; (5) Geographic distribution; (6) Unique or time-sensitive projects; (7) Revitalization needs of the community; (8) Economic development and revitalization opportunities created by the project; and (9) Other factors established by the Department in the competitive round announcement. C. The Department, in its discretion, may: (1) Accept public input on an application; (2) Request from the applicant additional information concerning an application, including oral presentations; and (3) Refer the application to other State agencies, as the Department considers appropriate, to undertake the analysis of the application. D. Upon the Department’s completion of the review and scoring of the applications, the Department shall make a recommendation to the Secretary on the applications. E. Upon receipt of the Department's recommendation, the Secretary: (1) May request additional information from the applicant or Department concerning the application, including oral presentations; and (2) Shall act on the application by approving it, disapproving it, or approving it with modifications. F. If the Secretary determines not to approve all or part of an application, the Department shall issue a written notice of denial. G. Reconsideration. (1) An applicant may request initial reconsideration of a denial by submitting a written request to the Department, which shall be received by the Department within 30 days following the date of the denial notice. (2) The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. (3) The Department shall respond in writing to the applicant's request for reconsideration within 90 days of receipt by the Department of the request for reconsideration. (4) 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. #### Regulation .06 Books and Accounts. *COMAR 05.20.05.06* A. A recipient of financial assistance and the recipient’s contractors and subcontractors shall maintain the books, accounts, and records and shall file with the Department the financial and other reports the Department may from time to time require. B. All of these books, accounts, and records shall be open to the inspection of representatives of the Department or other agencies of the State during reasonable working hours. C. Books, accounts, and records of designated third parties, contractors, and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between a contractor or subcontractor and a recipient of financial assistance. D. A recipient of financial assistance shall submit reports to the Department on the progress or implementation of a project in accordance with an agreement with the Department. #### Regulation .07 Nondiscrimination; Drug and Alcohol Free Workplace. *COMAR 05.20.05.07* A. A recipient of financial assistance 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 any aspect of the Program, or in any aspect of employment by any recipient of financial assistance in connection with any project financed or assisted under the Program. B. A recipient of financial assistance shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, 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 Acts of 1968, as amended; (3) The Fair Housing Amendments Act of 1988, as amended; (4) State Government Article, Title 20, Annotated Code of Maryland, as amended; (5) The Department’s Minority Business Enterprise Program, as amended; (6) The Governor’s 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; and (7) The Americans with Disabilities Act of 1990, as amended. C. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and the recipient of financial assistance. #### Regulation .08 Waiver. *COMAR 05.20.05.08* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .09 False Statements. *COMAR 05.20.05.09* A. An individual may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Secretary or the Department by a grant agreement or any other document relating to financial assistance. B. An individual applying for or benefitting from a grant agreement under the Program may not knowingly make or cause to be made a false statement or report for the purpose of influencing the action of the Secretary or the Department on an application or for the purpose of influencing the action of the Secretary or Department affecting financial assistance already provided. C. An individual who violates §A of this regulation is subject to immediate cancellation or acceleration of the financial assistance provided by the Program and any other penalties authorized by law. ### Chapter 06 — Catalytic Revitalization Project Tax Credit **Authority:** Housing and Community Development Article, §6-904, Annotated Code of Maryland **Administrative History:** Effective date: March 17, 2025 (52:5 Md. R. 236) #### Regulation .01 General. *COMAR 05.20.06.01* This chapter prescribes the policies, procedures, and authorizations for allocating the Catalytic Revitalization Project Tax Credit described in this chapter. #### Regulation .02 Definitions. *COMAR 05.20.06.02* A. In this chapter, the following terms have the meanings indicated and as defined in the Act. B. Terms Defined. (1) “Act” means the Housing and Community Development Article, Title 6, Subtitle 9, Annotated Code of Maryland. (2) “Affordable” means housing costs do not exceed 30 percent of a household's annual income. (3) “Catalytic revitalization project” means the substantial rehabilitation of a property in the State: (a) That was formerly owned by the State or the federal government; (b) In which rehabilitation will foster economic, housing, and community development within the community in which the property is located; and (c) That is out of service and was formerly used as a college or university, K–12 school, hospital, mental health facility, or military facility or installation. (4) “Costs” means the costs incurred to develop a catalytic revitalization project and includes the costs of: (a) Necessary studies, surveys, plans, and specifications; (b) Architectural, engineering, or other special services, including flood plain studies, environmental audits, and critical area or wetland assessments; (c) Land and improvements; (d) Site preparation; (e) Construction and rehabilitation, as applicable; (f) Indemnity and surety bonds and premiums on insurance; (g) Temporary relocation expenses of residents, if applicable; and (h) Other costs determined to be acceptable by the Department. (5) “Department” means the Department of Housing and Community Development. (6) “New construction costs” means the costs associated with the construction of new structures that connect, expand, or integrate the existing structures to be rehabilitated. (7) “Owned” means a prior ownership interest in real property pursuant to a: (a) Deed; (b) Long-term lease; (c) Federal or State law or legal authority that allowed use and occupation of real property for a governmental purpose; or (d) Other legal instrument. (8) “Rehabilitation costs” means the costs associated with the rehabilitation of existing structures. (9) “Secretary” means the Secretary of Housing and Community Development. (10) “State tax credit” means the Catalytic Revitalization Project Tax Credit allowed under the Act and this chapter. #### Regulation .03 Eligible Applicants. *COMAR 05.20.06.03* A. An individual, nonprofit organization, or business entity that is proposing a catalytic revitalization project may apply to the Department for an allocation of the available State tax credit. B. An applicant shall be in good standing and qualified to do business in Maryland. C. An applicant shall have the legal authority to execute an enforceable agreement with the Department. #### Regulation .04 Applications. *COMAR 05.20.06.04* A. The Department may accept applications on a first-come, first-served basis or in competitive rounds to be announced by the Department when the State tax credit is available under the Act. B. The Department shall consider the following factors when reviewing an application with an emphasis on applications that promote affordable housing: (1) Historic preservation; (2) Community development; and (3) Economic development. C. An application submitted to the Department shall: (1) Be on standard application forms prescribed by the Department; (2) Be submitted by an eligible applicant under Regulation .03 of this chapter; (3) Be for a catalytic revitalization project; (4) Provide a description of how the project will promote the factors listed in §B of this regulation; (5) Describe if the project will be completed in phases; and (6) Include any other information required by the Department. D. Applications shall be accompanied by all documentation in the form and containing the information specified by the application procedures adopted by the Department, which may vary depending on the type of project. E. Application Evaluation. (1) Each application submitted shall be reviewed by the Department to determine whether all of the information required under this chapter is contained in the application. (2) Upon submission of all required information, the Department shall undertake an analysis of each application and make a recommendation to the Secretary as to whether a project is eligible for an initial allocation of the State tax credit and any special terms and conditions for a project (3) The Department shall identify if a project will be in phases and eligible for multiple final tax credit certificates. F. Approval of Applications. (1) If the Department recommends approval of a project for an initial State tax credit allocation, the Department shall present the project to the Secretary. (2) The Secretary shall approve, disapprove, or approve with modifications an initial State tax credit allocation to be provided according to procedures established by the Secretary. (3) The Secretary, in the sole discretion of the Secretary, may delegate to an authorized officer of the Department the authority to approve, disapprove, or approve with modifications an initial State tax credit allocation. (4) The Secretary may require that the applicant execute an enforceable agreement related to the construction and rehabilitation of a catalytic revitalization project and issuance of the State tax credit. G. If the Department does not recommend approval of a project for an initial State tax credit allocation, the Department shall issue a written notice of rejection with an evaluation and explanation for rejection. #### Regulation .05 Allocation and Calculation of the Credit. *COMAR 05.20.06.05* A. Upon the approval of an application, the Department shall issue an initial tax credit certificate to the applicant: (1) Allocating the initial amount of the State tax credit for the project; and (2) Specifying the terms and conditions of the State tax credit. B. Subject to the limitations of §C of this regulation: (1) An initial State tax credit certificate shall equal 20 percent of the applicant’s estimated new construction costs and rehabilitation costs for the project; and (2) Upon completion of the project or a phase of the project, a final tax credit certificate shall equal 20 percent of the applicant’s actual new construction costs and rehabilitation costs for the completed phase of the project. C. For purposes of calculating the credit authorized under §B of this regulation, the portion of costs that are attributed to new construction costs may not exceed 50 percent of the total costs of the catalytic revitalization project or phase. D. A final tax credit certificate may not be issued for more than 20 percent of the project’s eligible expenses to date. E. A final tax credit certificate may not be issued that would exceed the aggregated limit of a project’s initial tax credit certificate. #### Regulation .06 Notice and Certification. *COMAR 05.20.06.06* A. Sixty days before the last day of the taxable year in which a catalytic revitalization project that has been issued an initial State tax credit allocation is completed or a phase of the project is completed, the applicant shall: (1) Notify the Secretary that the project or project phase has been completed; and (2) Certify that the project is a catalytic revitalization project eligible for the State tax credit. B. The notice and certification to the Secretary shall be in a form prescribed by the Department and contain documentation required by the Department. C. Upon final review and verification of the notice and certification, the Secretary shall issue to the applicant a final credit certificate for the project or project phase before or by the last day of the taxable year in which the project or a phase of the project was completed, stating the final State tax credit amount for the project or project phase, not to exceed the aggregated credit amount initially allocated to the project. #### Regulation .07 Use of Tax Credit. *COMAR 05.20.06.07* A. The State tax credit is a credit against State income taxes that may be used in accordance with the Act, this chapter, and Tax-General Article, §10-753, Annotated Code of Maryland. B. If the State tax credit allowed under this chapter in any taxable year exceeds the total tax otherwise payable by the individual, nonprofit organization, or business entity for that taxable year, the individual, nonprofit organization, or business entity may claim a refund in the amount of the excess. C. The credit allowed under this chapter may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing. D. The amount of the tax credit allowed, but not claimed, under this chapter may be transferred, by written instrument, in whole or in part, to any individual, nonprofit organization, or business entity. E. For the taxable year of any transfer under §D of this regulation, the transferee may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year. F. If the tax credit exceeds the total tax otherwise payable by the transferee in any taxable year, the transferee: (1) May claim a refund in the amount of the excess; (2) May carry forward and apply the excess credit for succeeding taxable years until the full amount of the credit is used; or (3) May transfer the remainder of the tax credit to an individual, a nonprofit organization, or a business entity in accordance with §D of this regulation. #### Regulation .08 Compliance. *COMAR 05.20.06.08* A. The Department may monitor a project for compliance and require reports from the applicant demonstrating compliance with this chapter, the Act and any agreement with the Department. B. The Comptroller or the Secretary may not recapture a State tax credit authorized under this chapter if: (1) The catalytic revitalization project is transferred, in whole or in part, by fee simple transfer of real property or by transfer of an ownership interest in the entity that owns the project to a new owner; and (2) The Secretary has issued a final tax credit certificate for the catalytic revitalization project under Regulation .06C of this chapter. C. After 30 days of providing written notice to the Department, the original recipient of an initial tax credit issued under this chapter may transfer the initial tax credit certificate to one or more other individuals, nonprofit organization, or business entities. D. The transfer of an initial tax credit need not involve a transfer of the catalytic revitalization project, whether by fee simple transfer of real property or a transfer of a portion or all of the ownership interest that the original recipient holds in the entity that owns the real property to a new owner or owners. E. An initial tax credit certificate may not be transferred to another person without the express written consent of the original recipient or be transferred as part of the involuntary transfer of the real property ownership interest in an entity that owns the real property without the prior written consent of the original recipient of the certificate and the Secretary. F. The Secretary may revoke an initial credit certificate on a finding by the Secretary that the recipient is not in compliance with the initial credit certificate or an agreement with the Department regarding the initial credit certificate. G. If the Secretary revokes an initial credit certificate under §F of this regulation, the Secretary may award an initial credit certificate to another applicant, provided that the award does not exceed the amount of the revoked initial credit certificate. H. The Secretary may not revoke a tax credit certificate awarded on or before July 1, 2024 unless the individual, nonprofit organization, or business entity that received the tax credit certificate ceases rehabilitation of the catalytic revitalization project for which the tax credit was awarded. #### Regulation .09 Administration. *COMAR 05.20.06.09* A. Guidelines and Manuals. The Department may adopt guidelines and manuals related to the administration of this chapter and the Act. B. The Department shall ensure that the application forms, guidelines and manuals are publicly available on its website and at its offices. C. Delegation of Authority. An action or decision required to be taken or permitted to be made by the Department under the Act, or by the Secretary or the Department under this chapter, may be delegated by the Secretary to an employee of the Department. #### Regulation .10 Waiver. *COMAR 05.20.06.10* The Secretary may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act and if, in the written determination of the Secretary, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. #### Regulation .11 False Statements. *COMAR 05.20.06.11* A person may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Department or in any agreement relating to the tax credits. #### Regulation .12 Tax Credit Availability. *COMAR 05.20.06.12* Except as provided in Regulation .08 of this chapter, the Secretary may not: A. Accept applications and award an initial credit certificate for more than one catalytic revitalization project within a 2-year period; or B. Issue tax credit certificates for credit amounts in the aggregate totaling more than $15,000,000 within a 2-year period.