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. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means Housing and Community Development Article, Title 6, Subtitle 11, Annotated Code of Maryland. “Application” means an application to the Department as described in Regulation .04 of this chapter. “Business” means a commercial or industrial enterprise. “Community development organization” means an organization that meets the requirements of Housing and Community Development Article, §6-203, Annotated Code of Maryland “Department” means the Department of Housing and Community Development, a principal department of the State. “Grant agreement” means an agreement or agreements between the Department and a grantee to implement one or more projects. “Grantee” means a political subdivision or community development organization that receives funds under the Program. “Local project” means a project to improve the outside appearance of a qualified business’s building or facility. “Political subdivision” means a county of the State, Baltimore City, or a municipal corporation of the State. “Program” means the Business Façade Improvement Program established under the provisions of the Act. “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. “Qualified business” means a business that is located in a sustainable community and submits an application to a grantee to fund a local project. “Secretary” means the Secretary of Housing and Community Development. “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. A grantee shall meet the following minimum requirements: Be a political subdivision or a community development organization; Not have defaulted on any prior financial assistance from the Department; Not be currently barred or suspended from any of the Department’s programs; Serve at least one sustainable community; and Submit an application to the Department in accordance with the Act and this chapter. Grants may be used to implement projects approved by the Department. 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. An application submitted to the Department shall: Be on standard forms prescribed by the Department; Be submitted by an eligible applicant; Identify the sustainable communities within its jurisdiction or service area; State the amount of grant requested; Provide a comprehensive description of the: Application process for qualified businesses seeking to participate in the Program; Criteria for rating qualified businesses that apply for grants; and Criteria for awarding grants to qualified businesses; 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; 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; 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; Demonstrate: 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 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; Demonstrate that the project can be completed within the time period of the grant agreement, as determined by the Department; 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 Include other information or documentation the Department may require. An application for a grant may be submitted to fund one or more projects. An applicant may file one or more applications in accordance with schedules established by the Department. The Department shall determine whether information required under Regulation .04 of this chapter is contained in the application. All complete applications will be competitively evaluated by the Department on a point basis, which shall include the following criteria: Capacity of the applicant to carry out the project; Community context; Public purpose; Leveraging and cost-effectiveness; Geographic distribution; Unique or time-sensitive projects; Revitalization needs of the community; Economic development and revitalization opportunities created by the project; and Other factors established by the Department in the competitive round announcement. The Department, in its discretion, may: Accept public input on an application; Request from the applicant additional information concerning an application, including oral presentations; and Refer the application to other State agencies, as the Department considers appropriate, to undertake the analysis of the application. 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. Upon receipt of the Department's recommendation, the Secretary: May request additional information from the applicant or Department concerning the application, including oral presentations; and Shall act on the application by approving it, disapproving it, or approving it with modifications. If the Secretary determines not to approve all or part of an application, the Department shall issue a written notice of denial. Reconsideration. 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. The request for reconsideration shall address each reason for the denial and provide documentation supporting reasons for reconsideration of the application. 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. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.02. A 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. 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. 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. 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. 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. 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: Titles VI and VII of the Civil Rights Act of 1964, as amended; Title VIII of the Civil Rights Acts of 1968, as amended; The Fair Housing Amendments Act of 1988, as amended; State Government Article, Title 20, Annotated Code of Maryland, as amended; The Department’s Minority Business Enterprise Program, as amended; 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 The Americans with Disabilities Act of 1990, as amended. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and the recipient of financial assistance. 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. 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. 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. 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. Housing and Community Development Article, §§2-102(a)(7) and 6-1103, Annotated Code of Maryland Effective date: April 15, 2024 (51:7 Md. R. 332) Regulation .02B amended effective February 17, 2025 (52:3 Md. R. 159) Regulation .03A amended effective February 17, 2025 (52:3 Md. R. 159) Regulation .04B amended effective February 17, 2025 (52:3 Md. R. 159)