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 for-profit sponsors of
low-income housing.

HOME OWNERSHIP PROGRAMS
Fran D. Makle, Director
(410) 514-7502

The Maryland Mortgage Program (MMP) origi-
nated in 1980 as the Mortgage Purchase Program
and received its present name in July 1987. The
Program was implemented when mortgage funds
available through private lending institutions dwin-
dled and mortgage rates rose. The MMP provides
reduced-interest mortgage loans to eligible home
buyers through participating lending institutions.
In this program, the Administration provides mort-
gage 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 slightly 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-in-
come Marylanders. By virtue of its funding source—

general fund appropriations, 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, secs. 2-401 through 2-409; Code
Financial Institutions Article, sec. 13-310).
MHFP also stimulates the production and reha-
bilitation of owner-occupied housing by providing
below market loans targeted at households with in-
come less than $27,650 per year. The Administration
encourages local governments and nonprofit organi-
zations to contribute local resources for developments
funded through this program.
The Emergency Mortgage Assistance Program
(EMA) was developed and merged into MHFP in
1989. Its forerunner was the Home Owner Emer-
gency Mortgage Assistance Program (HEMAP),
which was created by the General Assembly in
1984. The Program provides mortgage assistance
to home owners who are in imminent danger of
losing their homes. Through housing counseling
agencies, the Program provides short-term loans to
eligible home owners. The Program is funded
through loan repayments and general fund appro-
priations to the Home Ownership Fund.
The Settlement Expense Loan Program (SELP)
was begun by the General Assembly in 1988. The
Program provides low interest loans for settlement
expenses to eligible low- and moderate-income
home buyers who do not have sufficient resources
to purchase an affordable home.
The Reverse Equity Mortgage Program (REMP) was
established by the General Assembly in 1986 and first
funded in 1988 through CDA reserve funds. The
Program enables older Maryland home owners to gain
access to the accumulated equity in their homes with-
out having to sell or move. No repayment of the loan
is required until the eligible borrower dies, sells the
house, or permanently moves out of the home.

SPECIAL LOAN PROGRAMS
Vance T. Morris, Director
(410) 514-7565

In 1986, the General Assembly created new
special rehabilitation programs to address the hous-
ing needs of low-income households. With State
general funds, these programs provide low-interest,
no-interest, or deferred loans for 20-year terms.
Limited-income home owners and landlords of
rental properties who rent to limited-income house-
holds may qualify for loans under the Indoor Plumb-
ing Program and the Residential Lead Paint
Abatement Program. The Indoor Plumbing Program
provides loans to finance indoor plumbing and related
systems in buildings that lack indoor plumbing or have
failing plumbing systems. Loans through the Residen-
tial Lead Paint Abatement Program finance lead paint
abatement in residential buildings.