334/Maryland Manual

The Home and Energy Loans Program—Multi-
Family (HELP—ME) provides loans for energy con-
servation, home improvements, and general
rehabilitation of multifamily rental housing. Loans
are made directly through the Community
Development Administration for rental housing
with one or more units. Funds are generated by the
sale of mortgage revenue bonds and taxable bonds.
In multifamily developments, a certain percentage
of units must be rented to limited-income families.
Created by the legislature in 1984, the Elderly
Rental Housing Program (EKHP) provides below-
market-rate or deferred payment loans to
developers who agree to construct or rehabilitate
rental housing for occupancy by low-income elderly
households. Priority is given to developments that
serve the lowest income households.
"The Nonprofit Rehabilitation Program (NRP) was
formed by the General Assembly in 1986. The
Program makes loans to nonprofit organizations
and local governments to rehabilitate buildings for
rental housing, congregate housing, group homes,
shelters, and other housing facilities that serve low-
income households.
The Partnership Rental Housing Program (PRHP)
was authorized by the General Assembly in 1988
as a two-year pilot program to expand the supply
of affordable housing for the working poor. The
Program was established by statute in 1990 (Chap-
ter 343, Acts of 1990). In a partnership, local
governments provide the finished site, including
roads, water, sewer, and other infrastructure, while
the Community Development Administration
provides construction and permanent financing for
rental housing units.
The Construction Loan Program (CLP) was
created in 1987 with Community Development
Administration reserve funds to provide construc-
tion financing to nonprofit organizations and local
governments to acquire, build, or rehabilitate
single-family owned homes, multifamily rental
housing, congregate housing, group homes, and
sheltered housing. Housing developed under the
Program must be rented or sold to low- and
moderate-income persons.
Established in January 1990, the Shelter I Pro-
gram encourages nonprofit organizations, such as
churches and community groups, to take the initia-
tive in sponsoring their initial small housing project
for low-income families or individuals. The Pro-
gram supplies technical assistance and preferred
interest rate loans from the programs listed above.
The Low-Income Housing Tax Credit Program was
designated by the Governor to allocate tax credits
in Maryland under the federal Tax Reform Act of
1986 and Revenue Reconciliation Act of 1989. Tax
credits are awarded through a competitive alloca-

tion to both nonprofit and tor-profit sponsors of
low-income housing.

HOME OWNERSHIP PROGRAMS
F. William Beans, Director
514-7501

The Maryland Mortgage Program (MMP)
originated in 1980 as the Mortgage Purchase Pro-
gram and received its present name in July 1987.
The Program was implemented when mortgage
funds available through private lending institutions
dwindled and mortgage races rose. The MMP
provides reduced-interest mortgage loans to
eligible home buyers through participating lending
institutions. In this program, the Administration
provides mortgage loans directly to eligible low-
and moderate-income persons or purchases loans
made for them by participating lending institutions.
Both newly constructed and existing homes are
eligible under the Maryland Mortgage Program.
MMP is designed primarily for first-time home
buyers.
Federal law designates certain low-income areas
as target areas for which 20 percent of the funds
from bond issues must be set aside. In these areas,
purchase price limits are slighdy higher and buyers
are not required to be first-time home buyers.
The Maryland Mortgage Program is funded by
the sale of tax-exempt revenue bonds. Both the
acquisition cost and income limits are set by the
Administration within federal tax law guidelines.
Acquisition costs vary by region.
Using Maryland Mortgage Program funds, the
Administration provides commitments to
developers of newly constructed or substantially
rehabilitated units for set-asides of mortgage funds
for eligible buyers. Projects must have approval
from the local government entity. To be eligible,
project units must meet the acquisition cost limit for
the region.
The Maryland Home Financing Program
(MHFP) was authorized by the General Assembly
in 1972 and first funded with the sale of State
general obligation bonds in 1973. This direct-loan
program expands home ownership opportunities
for low-income Marylanders. By virtue of its fund-
ing source—general obligation bonds and ap-
propriations, and a revolving fund from prior loans
under the Program—it differs from the other single-
family programs. Loans have been made in every
county and Baltimore City (Code 1957, Art. 83B,
sees. 2-401 through 2-409; Code Financial Institu-
tions Article, sec. 13-310).
MHFP also stimulates the production and
rehabilitation of owner-occupied housing by
providing below market loans targeted at
households with income less than $24,300 per year.
The Administration encourages local governments