These regulations prescribe the policies, procedures, and authorizations for administering the Historic Preservation Grant Program and providing grants from the Historic Preservation and Historical and Cultural Museum Assistance Grant Fund of the Maryland Historical Trust, an agency within the Division of Historical and Cultural Programs of the Department of Planning. The objective of the Program is to provide a source of funding, including grants to local jurisdictions, nonprofit organizations, business entities, and individuals, to assist and encourage efforts to study, acquire, and preserve historic properties. In this chapter, the following terms have the meanings indicated. Terms Defined. “Acquisition” means the act or process of acquiring fee title or an interest other than fee title of historic property, including the purchase or acquisition of preservation easements, leasehold estates subject to ground rents, development rights, or remainder interests. “Act” means State Finance and Procurement Article, §§5A-301 and 5A-328, Annotated Code of Maryland, as amended. “Business entity” means a corporation, association, partnership, joint venture, or other legally organized entity. “Code” means the Annotated Code of Maryland, as amended. “County” means any of the 23 counties of the State and the Mayor and City Council of Baltimore. “Department” means the Department of Planning. “Director” means the Director of the Maryland Historical Trust. “Fund” means the Historic Preservation and Historical and Cultural Museum Assistance Grant Fund for the Program established by the Act. “Grant” means an award of financial assistance from the Fund. “Grant documents” means the grant agreement and other documents between the grantee and the Trust which evidence the terms and conditions of the grant. “Grantee” means the recipient of a grant. “Historic property” means a district, site, building, structure, monument, or object significant in the prehistory, history, upland and underwater archaeology, architecture, engineering, and culture of the State, which is listed in or is eligible for listing in the Maryland Register of Historic Properties. “Local jurisdiction” means any county or municipality, and any duly authorized agency or instrumentality of the county or municipality. “Maryland Register of Historic Properties” means the register of historic properties in Maryland which is established by the Trust under State Finance and Procurement Article, §5A-323, Annotated Code of Maryland. “Municipality” means a municipal corporation in Maryland subject to the provisions of Article XI-E of the Maryland Constitution. “Nonprofit organization” means a corporation, foundation, governmental entity, or other legal entity, no part of the net earnings of which inures to the benefit of any private shareholder or individual holding an interest in such entity. “Program” means the Historic Preservation Grant Program of the Trust established by the Act. “Project” means one or more of the eligible activities set forth in Regulation .05 of this chapter. “Rehabilitation” means the act or process of returning an historic property to a state of utility through repair or alteration which makes possible an efficient contemporary use while preserving those portions or features which are significant to its historical and cultural values. “Restoration” means the act or process of applying measures to sustain the existing form, integrity, and material of an historic property or of accurately recovering the form and details of an historic property as it appeared at a particular period of time by means of the removal of later work or by the replacement of missing earlier work. “Secretary” means the Secretary of Planning. “Trust” means the Maryland Historical Trust, an agency within the Division of Historical and Cultural Programs of the Department. “Trustees” means the Trustees of the Maryland Historical Trust. The following are eligible to apply for grants under the Program: Nonprofit organizations; Local jurisdictions; Individuals; and Business entities, provided that the Trust may not make a grant to a business entity if the amount of the grant, when added to the aggregate amount of all grants made to business entities under the Program, will exceed 10 percent of the aggregate amount of all grants made under the Program. Nonprofit organizations and business entities shall be in good standing, qualified to do business in Maryland, and shall have the legal capacity and all necessary legal authority to incur the obligations involved in the grants provided under the Program. General Activities. The Trust may provide grants from the Fund to any eligible grantee for the: Acquisition of historic property; Rehabilitation of historic property; and Restoration of historic property. Activities Limited to Certain Grantees. The Trust may provide grants from the Fund to an eligible grantee who is a nonprofit organization or a local jurisdiction for: Historic preservation education and promotion, including the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials. Predevelopment costs relating to an ongoing or proposed project involving the rehabilitation or restoration of historic property, which costs shall be directly associated with the historic preservation nature of the project. The following provisions apply: Predevelopment costs may include the costs of studies, surveys, tests, plans and specifications, and reasonable fees, as determined by the Director, for architectural, design, engineering, and other special services; Predevelopment costs may not include attorneys' fees, appraisal fees, insurance premiums, or other costs not directly associated with the historic preservation nature of the project; The Trust may provide grants for predevelopment costs regardless of whether the construction costs of the rehabilitation or restoration project are being financed by the Trust. Trust Expenditures. The Trust may directly expend moneys from the Fund in an amount up to 25 percent of the annual allocation to the Fund for the: Acquisition of historic property; Restoration or rehabilitation of historic properties owned by the Trust, which may include predevelopment costs directly related to restoration or rehabilitation such as the cost of studies, surveys, tests, plans and specifications, and architectural design, engineering, or other special services; and Activities set forth in §B(1) of this regulation. Trust expenditures under this section for acquisition, rehabilitation, or restoration shall be for use in accordance with the Trust's authorized purposes set forth in State Finance and Procurement Article, §5A-311, Annotated Code of Maryland, or for resale or lease by the Trust subject to appropriate preservation covenants. Trust expenditures under this section are not considered grants as defined in these regulations and are governed solely by the provisions of this section, Regulation .08, of this chapter, and any other regulation or provision of law to which this section or Regulation .08 of this chapter may specifically refer. Application Solicitation. At least once during each fiscal year the Trust shall solicit applications for the award of grants under the Program. At least 90 days before an expected award of grants to grantees, the Trust shall issue a public announcement of the availability of funds under the Program as follows: The announcement shall consist of a description of the application process, total anticipated funding available, eligible grantees and activities, and the timetable for application submission, project selection, and grant award; The announcement may contain suggested recommendations on the types of projects to which the Trust intends to give special consideration for funding; The Trust shall endeavor to send direct mail announcements to preservation organizations statewide; The Trust shall issue a press release containing the public announcement. Applications shall be made upon standard forms prescribed by the Trust. Each application shall include sufficient information and documentation to: Evaluate the historical or cultural significance of the property; Determine the relationship of the project to the types of projects that the Trust has noted for special consideration under §A(2)(b) of this regulation; Determine the ownership and all lessees or substantial users of the property; Evaluate the current and proposed condition and use of the property; Evaluate the extent, if any, to which the proposed activity will change the type of use or increase the intensity of the existing use of the property; Evaluate the nature and cost of the proposed activity; Evaluate the readiness of the project to initiate activity and to be completed within an established time frame; Evaluate the administrative capability of the applicant and project sponsor; Determine the level of contribution by the appropriate local jurisdiction to support the project proposed to be financed; and Support other factors as determined necessary by the Trust. The Trust may require applicants for grants to pay an application fee to cover some portion of the cost of processing the grant. The Trust shall direct applicants to submit one or more letters of support for the proposed activity from the chief elected officials of the local jurisdiction within which the proposed activity will be located. The Trust may fund applications at levels lower than requested. Not all applicants may be funded. Selection Criteria. The Trust shall review and evaluate grant applications in accordance with the following selection criteria: Relative historical or cultural significance of the resource to be treated; Urgency of the need for financial assistance for the project; If applicable, the project's degree of relationship to the types of projects that the Trust has noted for special consideration under §A(2)(b) of this regulation; Extent to which the project will contribute to the cumulative equitable Statewide geographic distribution of funds based on the concentration of historic properties; Inclusion of long term preservation measures that will protect the resource to be treated; Comprehensiveness of the scope of the project; Administrative capability of the applicant and project sponsor; Extent to which the project stimulates or promotes other historic preservation activities; Informational and educational value of the project; Demonstration and innovation value of the project; Extent to which there is any proposed contribution by the appropriate local jurisdiction to support the project proposed to be financed; Readiness of the project to initiate activity and to be completed within an established time frame; and Additional criteria which the Trust considers to be appropriate. The Trust may assign differing weights to the criteria set forth in §C(1) of this regulation and the weights may vary from time to time. In any fiscal year, the Secretary may allocate up to 20 percent of the total moneys available in the Fund to be held in reserve for emergency project grants for projects that qualify as eligible activities under Regulation .05A and B of this chapter and have arisen generally because of one or more of the following circumstances: An unpredictable or unforeseen situation has occurred which may necessitate an immediate need for historic preservation activities; or The project is one which provides a special opportunity to engage in historic preservation activities within a narrow time frame. Applicants for emergency project grants shall file an application in accordance with Regulation .06A(3) of this chapter; however, the remaining procedures set forth in Regulation .06 of this chapter, are not applicable. Departmental Approval. After analysis by the Trust staff, the Trustees shall review each proposed expenditure from the Fund, including the general terms of the expenditure as well as any special terms and conditions for the project. The Trustee's recommendations with regard to expenditures shall be forwarded to the Secretary. Upon receipt of the recommendations, the Secretary shall approve or disapprove each expenditure. Board of Public Works Approval. The Secretary shall submit to the Board of Public Works for final approval action: All Trust direct expenditures under Regulation .05D of this chapter, for acquisition, rehabilitation, or restoration; and Grants, emergency project grants, and Trust direct expenditures for education and promotion which are to be funded with the proceeds of a sale of State general obligation bonds. Inapplicable Provisions. Grants, emergency project grants, and Trust direct expenditures submitted to the Board of Public Works in accordance with §B(2) of this regulation are not subject to the provisions of the State Finance and Procurement Article, Titles 4 and 5, Annotated Code of Maryland, or otherwise subject to review by the Department of General Services or any other State unit. Rejection and Reconsideration. If the Trustees determine not to recommend approval of a project for a grant or if the Secretary does not approve a grant, the Trust shall issue a written notice of rejection. Applicants may request reconsideration of a rejection made by the Trustees by submitting a written request to the Director which is received within 30 days following the date of the Trust's rejection notice. The Director shall respond in writing either within 30 days of receipt by the Trust of the request for reconsideration or within 5 days of the next Trustees' meeting, whichever occurs later. The Secretary shall take final action regarding any applicant's request for reconsideration of the Director's response. If the Secretary disapproves a grant recommended by the Trustees, the Secretary's decision is final. A decision or reconsideration of a decision is not a contested case within the meaning of State Government Article, §10-201 et seq., Annotated Code of Maryland. Matching Requirements. Grants to local jurisdictions, business entities, and individuals require a match in an amount at least equal to the grant. The match shall consist of either cash or an equivalent dollar value of an in-kind contribution to the project which is acceptable to the Trust. In its discretion the Trust may require a match in the case of grants to nonprofit organizations. The matching requirement, if any, shall be specified in the appropriate public announcement of funds referred to in Regulation .06A(2) of this chapter and the contents of the match shall conform with the requirements in §A(1) of this regulation. The matching requirement in §A(1) and (2) of this regulation may be modified or waived by the Secretary if the Secretary has issued a written determination that the matching requirement is impracticable or infeasible under the circumstances. Grant Disbursement. Disbursement will be made as the project progresses based upon requests for disbursement submitted by the grantee in a form satisfactory to the Trust. Expenditure Rate. The Trust may: Cancel the grant and withhold any funds not yet disbursed if the grantee has not expended all grant funds within 24 months of the effective date of the grant documents, and the grant documents may prescribe a shorter period of time if the circumstances of the project warrant it; Extend the time limit if the grantee demonstrates that the circumstances warrant extension, such as an inability to satisfy the time limit because of circumstances beyond the grantee's control. Requirements for Site-Specific Projects. Except for education and promotion grants under Regulation .05B(1) of this chapter, grants shall have the following additional requirements: Deeds of Easement and Preservation Agreements. If the historic property assisted by the grant is real property, the grantee and the owner of the real property, if the owner is not the grantee, shall convey to the Trust a deed of easement containing preservation covenants applicable to the real property in form, substance, and duration satisfactory to the Trust, which shall be recorded in the land records of the political subdivision in which the real property is situated. A deed of easement conveyed pursuant to §D(1)(a) of the regulation may contain conditional lien provisions and other provisions which require reimbursement of the grant if the encumbrance of the deed of easement is extinguished by the foreclosure of a prior lien or otherwise or if the deed of easement is determined not to be legally enforceable by the Trust for any reason. If the historic property assisted by the grant is other than real property, the grantee and the owner of the historic property, if the owner is not the grantee, shall enter into an agreement with the Trust to preserve and maintain the historic property in such manner and duration as is acceptable to the Trust. The preservation agreement or deed of easement requirements set forth in §D(1)(a) and (c) of this regulation may be modified or waived by the Secretary if the Secretary determines that such an agreement or easement is impracticable under the circumstances. The requirement in §D(1)(a) of this regulation that a deed of easement be conveyed by a property owner if the owner is not the grantee may be modified or waived by the Director, as necessary, if the subject property is long-term leasehold property. Title Certificate. The Trust, in its discretion, may require the grantee to provide an attorney's certificate of title, acceptable to the Trust, certifying title to the real property on which the improvements are located. The certificate of title may contain only standard exceptions and encumbrances approved by the Trust. Insurance. The grantee shall cause the assisted historic property to be insured against loss or damage by fire and other hazards, casualties, and contingencies as may be required from time to time by the Trust in amounts satisfactory to the Trust. Rehabilitation and Restoration Projects. The plans and specifications for rehabilitation and restoration projects and, if applicable, predevelopment cost projects under Regulation .05B(2) of this chapter shall be subject to review and approval by the Trust. Projects shall conform to standards for acquisition, rehabilitation, and restoration established by the Trust as well as any other applicable standards and requirements established by the Trust. The Trust shall inspect ongoing rehabilitation and restoration projects during construction to ensure the grantee's conformance with the standards established by the Trust. Other Requirements. The Trust may establish other terms and conditions in the grant documents as considered reasonable and necessary by the Trust. Books, Accounts, and Records. Grantees, contractors, and subcontractors shall maintain those books, accounts, and records and shall file with the Trust those financial and other reports as the Trust may from time to time require. All of these books, accounts, and records shall be open to the inspection of representatives of the Trust or other agencies of the State during reasonable working hours before, during, or after the period of time during which the grant proceeds are expended. Grantees shall make their administrative offices and personnel, whether full-time, part-time, consultants, or volunteers, available to the Trust upon request. Books, accounts, and records of contractors and subcontractors shall be maintained and made available for inspection up to 3 years after either the date of grantee's final expenditure of grant proceeds or the termination of the contractual relationship between the contractor and the grantee, whichever is later. Reports. Grantees shall submit a final report, and interim reports as may be required by the Trust, documenting project progress and evaluating project effectiveness. Nondiscrimination. A grantee may not discriminate on the basis of age (except with respect to residents in elderly projects), race, color, religion, national origin, sex, marital status, or physical or mental handicap in leasing or otherwise providing dwelling accommodations or in any other aspect of the development, administration, or operation of any project financed or assisted under the Program, or in any aspect of employment by any grantee, developer, or contractor of any project financed under the Program. Each grantee shall comply with all applicable federal, State, and local laws and departmental policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices including: Titles VI and VII of the Civil Rights Act of 1964, as amended; Title VIII of the Civil Rights Act of 1968, as amended; The Governor's Code of Fair Practices, as amended; and The Department's Minority Business Enterprise Program, as amended, if the grantee does not have its own minority business participation program which is acceptable to the Trust and the Department. Except for waivers, any action or decision required or permitted to be taken or made by the Trust under these regulations may be taken or made by the Director of the Trust, or his designee. The Trust may terminate a grant or refuse to make additional disbursements under the grant documents if it finds that the grantee is not complying with any of the requirements of the Program or the grant documents. The Trust may establish from time to time operational handbooks or manuals governing matters relating to the Program including descriptive statements of Program procedures which do not directly affect the rights of the public or the procedures available to the public. Except for Regulation .08B of this chapter relating to Board of Public Works approval, the Secretary may waive or vary particular provisions of these regulations if: The waiver or variance is not inconsistent with the authorizing provisions of the Act; and In the written determination of the Secretary, the application of the regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. A person may not knowingly make or cause to be made any material misstatement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a grant or affecting a grant already made. A person who violates any provision of this regulation is: Guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 2 years, or both; and Subject to immediate cancellation and reimbursement of the grant. State Finance and Procurement Article, §§5-7B-01—5-7B-10 and 5A-328, Annotated Code of Maryland;Executive Orders 01.01.1992.27C and 01.01.1998.04 Effective date: December 8, 1976 (3:25 Md. R. 1465) Chapter revised effective June 22, 1977 (4:13 Md. R. 1030) Chapter recodified from COMAR 05.03.01 to COMAR 05.08.01 Chapter, Maryland Historical Trust: Notification Procedures for Nomination to the National Register, repealed effective November 14, 1988 (15:23 Md. R. 2657) Regulations .01—.13, Maryland Historical Trust Historic Preservation Grant Program, adopted effective May 14, 1990 (17:9 Md. R. 1087) Regulation .05 amended effective January 2, 1994 (20:25 Md. R. 1944); April 5, 1999 (26:7 Md. R. 539); January 21, 2002 (29:1 Md. R. 22) Regulation .06A amended effective January 2, 1994 (20:25 Md. R. 1944) Chapter recodified from COMAR 05.08.01 to COMAR 34.04.01 Regulation .05 amended effective April 24, 2017 (44:8 Md. R. 408) Regulation .06 amended effective April 24, 2017 (44:8 Md. R. 408) Regulation .08B amended effective October 4, 2010 (37:20 Md. R. 1396) Regulation .09D amended effective March 25, 2019 (46:6 Md. R. 347)