Part 2 Application Process. A business entity or individual may file a Part 2 application with the Director requesting the Director to determine that a rehabilitation of a certified historic structure proposed by the applicant will, if completed in accordance with the requirements of the Program, qualify as a certified rehabilitation. The Trust shall post and maintain on its website separate and distinct Part 2 applications forms for the Homeowner Tax Credit, Small Commercial Tax Credit, and Competitive Commercial Tax Credit, and all Part 2 applications shall be filed on the forms that correspond to the tax credit sought by the applicant. A Part 2 application shall be deemed incomplete, and may not be accepted or reviewed by the Trust, if the application does not: Include all information required by the application form; State the applicant’s estimated cost of rehabilitation for the proposed rehabilitation project; Include a nonrefundable administrative fee payable to the Trust of: $10 for either a Homeowner Tax Credit or a Small Commercial Tax Credit; or $250 for a Competitive Commercial Tax Credit; or Otherwise comply with a requirement of this regulation. An incomplete application received by the Trust shall be returned to the applicant if all required information or the administrative fee is not received by the Trust within a reasonable time as determined by the Director. At any time before completion of the rehabilitation, an applicant may file with the Director an amendment to a Part 2 application in form and substance as instructed on the Trust’s website. Homeowner Tax Credit. A Part 2 application for the Homeowner Tax Credit must be filed by the individual or individuals who, with respect to the structure or portion thereof that is the subject of the proposed rehabilitation: Is either: The owner; or Lessee for purposes of Regulation 02B(24)(b) of this chapter; and Occupies the structure at the time of the application, or will occupy the structure upon completion of the rehabilitation, as a primary or secondary residence. Upon receipt of either a complete Part 2 application or an amendment to an application for the Homeowner Tax Credit, the Director shall review the application or amendment and determine whether: The proposed rehabilitation is of a certified historic structure; The plan for the rehabilitation as described in the application or amendment meets the Standards for Certified Historic Structure Rehabilitation; and The estimated qualified rehabilitation expenditures will exceed $5,000. The Director shall approve the Part 2 application or amendment and promptly send written notice of the approval to the applicant if the Director determines that each of the criteria set forth in §B(2) of this regulation is satisfied. The Director shall deny the Part 2 application or amendment and promptly send written notice of the denial to the applicant if the Director determines that any of the criteria set forth in §B(2) of this regulation is not satisfied. Small Commercial Tax Credit. For the rehabilitation of a condominium or cooperative housing project, a Part 2 application for the Small Commercial Tax Credit shall be submitted by the governing body of the condominium or cooperative housing project. In addition to information required under §A(3) of this regulation, a Part 2 application for the Small Commercial Tax Credit shall include a request that the rehabilitation be eligible for: The additional 5 percent tax credit available under Regulation .03E(2)(a)(ii) of this chapter if the applicant anticipates at the time of the application that the rehabilitation will result in a project that qualifies as a level 1 opportunity zone project; or The additional 7.5 percent tax credit available under Regulation .03E(2)(a)(iii) of this chapter if the applicant anticipates at the time of the application that the rehabilitation will result in a project that qualifies as a level 2 opportunity zone project. Upon receipt of either a complete Part 2 application or an amendment to an application for the Small Commercial Tax Credit, the Director shall review the application or amendment and determine whether: The proposed rehabilitation is of a certified historic structure; The plan for the rehabilitation as described in the application or amendment meets the Standards for Certified Historic Structure Rehabilitation; and If requested in the application, the structure is either an agricultural structure or a post-World War II structure. If the Director determines that the criteria set forth in §C(3)(a) and (b) of this regulation are satisfied, the Director shall: Determine the allowable qualified rehabilitation expenditures for the proposed rehabilitation, which must exceed $5,000 and cannot exceed $500,000; Determine the maximum amount for an award of an initial credit certificate for the rehabilitation based upon the limitations established under Regulation .03D(2) of this chapter; Reserve an award of an initial credit certificate for the rehabilitation; Send written notification to the applicant: Informing of the reservation of the award of an initial credit certificate and the maximum amount of the award; Charging the applicant an administrative fee in an amount equal to 3 percent of the maximum amount of the award, less the $10 paid with the Part 2 application; and Informing the applicant that if the fee is not received by the Trust within the 90 days of notice of the fee the Director will not issue the initial credit certificate for the rehabilitation; and Promptly after the on-time receipt from an applicant of the administrative fee send the initial credit certificate to the applicant. If the Director determines that any of the criteria set forth in §C(3)(a) and (b) of this regulation is not satisfied, the Director shall deny the Part 2 application or amendment and promptly send written notice of the denial to the applicant. The Director may not approve any Part 2 applications or amendments and may not issue any initial credit certificates for Small Commercial Tax Credit projects for credit amounts in the aggregate totaling more than the amount of funds in the Small Commercial Project Trust Account. Competitive Commercial Tax Credit. For every State fiscal year that funds are available in the Reserve Fund, the Director shall establish and publish on the Trust’s website a date by which Part 2 applications for the Competitive Commercial Tax Credit shall be received by the Trust. In addition to information required under §A(3) of this regulation, a Part 2 application for the Competitive Commercial Tax Credit shall include: Documentation that establishes that the applicant has received letters of intent for all rehabilitation project funding not included in the amount of the tax credit for which the rehabilitation may qualify; If the applicant is not at the time of the application the fee-simple owner of the property proposed for rehabilitation: A written statement from the fee-simple owner that the owner is aware of the application and has no objection to the application or to the proposed rehabilitation; and Documentation or evidence satisfactory to the Director that the applicant will have ownership or site control of the property within 18 months of the approval of the Part 2 application; A statement from the applicant that: No substantial part of the rehabilitation has begun, unless the rehabilitation was previously approved under the federal historic tax credit; and Upon completion of the rehabilitation, a sign or marker will be located on the property either external or internal to the rehabilitated structure identifying the structure as having been rehabilitated with funds provided by the Program; A request that the rehabilitation be eligible for the additional 5 percent tax credit available under Regulation .03E(2)(a)(ii) of this chapter if the applicant anticipates at the time of the application that the rehabilitation will result in: A high performance building; A project that qualifies as affordable housing; or A project that qualifies as a level 1 opportunity zone project; and A request that the rehabilitation be eligible for the additional 7.5 percent tax credit available under Regulation .03E(2)(a)(iii) of this chapter if the applicant anticipates at the time of the application that the rehabilitation will result in a project that qualifies as a level 2 opportunity zone project. The Director shall reject a Part 2 application received from an applicant who in the same fiscal year submitted three or more other Part 2 applications for the Competitive Commercial Tax Credit that, together, exceed $500,000 in estimated qualified rehabilitation expenditures. The Director shall review and consider only those complete Part 2 applications received by the Trust by the date established under §D(1) of this regulation. The Director shall competitively rank all complete Part 2 applications received annually by the date established under §D(1) of this regulation based on the following criteria: The extent to which the certified historic structure is: A rare example of an architectural style; or A structure designed by a noted architect; Whether the certified historic structure is: Protected by a historic preservation easement held by the Trust; or Subject to preservation conditions or restrictions through a Memorandum of Understanding or Programmatic Agreement with the Trust or some other instrument acceptable in form and substance to the Trust; Whether the certified historic structure is located in an area: Where the political subdivision has implemented regulatory streamlining or other development incentives that foster redevelopment and revitalization in priority funding areas, as defined in State Finance and Procurement Article, Title 5, Subtitle 7B, Annotated Code of Maryland, and has certified those regulatory streamlining or other development incentives to the Smart Growth Subcabinet established under State Government Article, Title 9, Subtitle 14, Annotated Code of Maryland; or Targeted by the State for additional revitalization and economic development opportunities due to the focusing of State resources and incentives; Whether the rehabilitation project will include affordable and workforce housing options; Whether the rehabilitation is consistent with and advances current growth and development policies and programs of the State, as identified by the Director in consultation with the Secretary; The extent to which the rehabilitation: Sustains the existing form, integrity, and material of the certified historic structure; or Accurately recovers the form and details of the certified historic structure as it appeared during the structure’s period of historic significance; The extent to which the qualified rehabilitation expenditures for the rehabilitation will exceed the assessed value of the certified historic structure; The extent to which the need for rehabilitation of the certified historic structure is of an urgent or emergency nature; The amount of private investment that will be leveraged by the rehabilitation project; and Such other criteria as the Trust may determine from time to time. Based on the competitive ranking under §D(5) of this regulation, the Director shall: Select those rehabilitation projects that will be awarded an initial credit certificate for the Competitive Commercial Tax Credit and the maximum amounts of each award; Promptly notify each applicant selected for an award that the application was selected and of the maximum amount of the award; Promptly notify each applicant not selected for an award that the application was not selected; and Not later than 60 days following the selections, post on the Trust’s website information regarding each competitive commercial rehabilitation project selected. The maximum amount of an award of an initial credit certificate for a rehabilitation under §D(6) of this regulation may not exceed the lesser of: The sum of 20 percent of the estimated qualified rehabilitation expenditures identified in the Part 2 application and, if requested in the application, one of the following additional credits: A 5 percent credit for achieving a high performance building; A 5 percent credit for a project that qualifies as affordable housing; A 5 percent credit for a project that qualifies as a level 1 opportunity zone project; or A 7.5 percent credit for achieving a project that qualified as a level 2 opportunity zone project; or The limits established under Regulation .03E(3) of this chapter. For purposes of calculating the limitation on the credit for qualified rehabilitation expenditures under §D(7) of this regulation, a rehabilitation project shall include: Phased rehabilitation of a single certified historic structure; Rehabilitation of multiple certified historic structures located on a single property; or Separate rehabilitations of different components of a single certified historic structure. Following the selection of an award of an initial credit certificate under §D(6)(a) of this regulation, the Director shall: Charge the applicant an administrative fee in an amount equal to 3 percent of the amount of the award of the initial credit certificate, less the $250 paid with the Part 2 application; Send written notice to the applicant of the amount of the administrative fee; and Inform the applicant that if the fee is not received by the Trust within the 90 days of notice of the fee the Director will not: Issue the initial credit certificate for the rehabilitation; or Accept a Part 2 application for the Competitive Commercial Tax Credit from the applicant during any of the 3 fiscal years that immediately follow the fiscal year in which the fee is not received. Promptly after the on-time receipt from an applicant of the administrative fee charged under §D(9) of this regulation, the Director shall issue to the applicant an initial credit certificate for the rehabilitation project in the amount awarded for the rehabilitation under §D(6) of this regulation. An initial credit certificate issued under §D(10) of this regulation shall expire, and the Director may not certify the rehabilitation project as a certified rehabilitation under Regulation .06 of this chapter, if: For an applicant who was not the fee-simple owner of the property at the time the Part 2 application was submitted, the applicant fails within 18 months after the Director issues the initial credit certificate to provide to the Trust documentation or evidence satisfactory to the Director that the applicant is the fee-simple owner or has site control of the property; Within the 18 months after the Director issues the initial credit certificate, the applicant fails to notify the Trust, in writing, that the rehabilitation has commenced; The rehabilitation is not completed within 30 months after the Director issues the initial credit certificate; or The applicant does not submit to the Trust, in accordance with Regulation .06 of this chapter, a Part 3 application for the rehabilitation within 12 months after the 30-month expiration date under §D(11)(c) of this regulation. The Director may extend to a later specified date the 30-month expiration date under §D(11)(c) of this regulation if: The applicant requests an extension in writing which is received by the Director prior to the expiration; and The Director finds reasonable cause in the written request for the extension. The Director may extend to a later specified date the deadline for submitting the Part 3 application established under §D(11)(d) of this regulation if: The applicant requests an extension in writing; The rehabilitation was completed prior to the 30-month expiration date under §D(11)(c) of this regulation or as extended by the Director under §D(12) of this regulation; and The Director finds reasonable cause in the written request for the extension.