An effective air transportation system is essential to the continued economic health of the State of Maryland and is crucial to the success of any efforts to attract new industry and commerce. The key element of an effective air transportation system is sufficient, strategically placed airports that provide safe entry into, and exit from, the airspace above Maryland for the scheduled air carriers, the operators of corporate and privately registered aircraft within the State, and transient aircraft traversing the State for business and recreational purposes. The predominant portion of airports upon which the State relies to accommodate the needs of the general public are privately owned and ineligible for federal assistance in the form of tax support grant programs. The Administration is empowered by law to make grants and loans for equipment, improvements, and the rehabilitation of facilities at those airports serving the public and that are deemed to be essential to the air transportation system of the State. The Administration may provide grants and loans for the acquisition of land and the improvement or rehabilitation of airport facilities at those privately owned airports open to the general public, provided the: Governing body of the county in which the airport is located has granted exemption to the airport owner from county property taxes as authorized by the Tax-Property Article, §8-302, Annotated Code of Maryland; and Airport has been found to be essential in meeting the needs of the public and is included in the Maryland Aviation System Plan developed by the Maryland Department of Transportation. Project grants and loans shall be made as reimbursement for a fixed percentage of eligible project costs, not in excess of that stated in Regulation .03. The award of project grants and loans shall be made subject to the following conditions: Availability of State funds; A written determination by the Administration that the proposed project is prudent, cost effective, timely, and in conformance with acceptable airport design standards; Assurances are obtained from the airport owner and any successive owner or owners that the airport will remain available to serve the public for a period of time commensurate with the useful life of the improvements obtained with the funds; If the airport closes for public use, the airport owner shall be required to reimburse the Administration for the unamortized portion of the funds, as determined by the Administration; The unamortized remaining balance of grants and loans may be secured by the use of recorded liens or bonds and shall be paid to the Administration if the airport closes for public use; A determination by the Administration that the airport owner has sufficient funds to finance, on a timely basis, that portion of the project costs not provided by the State. Subject to the conditions outlined in Regulation .02, the Administration shall provide grants and loans not in excess of the percentages stated in Regulation .05 for approved projects. Grants or loans for any project other than those stated in §A of this regulation shall be at the sole discretion of the Administration and at a combined total not in excess of 90 percent. The Administration shall provide detailed guidelines on the operation of the Maryland Assistance to Private Airports (MAPA) Program. The Administration shall provide procedures for obtaining project grants and loans. These procedures shall contain detailed application, processing, and accountability requirements to be followed by each participating private airport. The following table reflects State aid for development of public-use airports: Available Loans Type of Improvement Available Grant Grant Guaranty Percentage Payback Period (a) (b) (c) (d) (e) Airfield lighting 90% 10 years 90% 10 years Fueling facilities — — 100% 10 years Hangars — — 100% 10 years Land acquisition: Easements and in-fee operating equipment: 90% 20 years 90% 20 years Fire, snow removal, mowing, etc. 90% 10 years 90% 10 years Pavement: New 90% 15 years 90% 15 years Overlays 90% 10 years 90% 10 years Interest on loans provided by DOT will be 1 percent above the prime commercial rate at the time loan agreement is executed. Loan and grant obligation of the airport owner may be secured by a lien or mortgage on the improvement or existing property. Transportation Article, §§5-204, 5-208, and 5-421, Annotated Code of Maryland Effective date: December 26, 1988 (15:26 Md. R. 2984) Regulation .02C amended effective February 4, 1991 (18:2 Md. R. 150) Regulation .03 amended effective December 10, 2001 (28:24 Md. R. 2129) Regulation .05 amended effective February 4, 1991 (18:2 Md. R. 150); December 10, 2001 (28:24 Md. R. 2129)