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 was
authorized by the General Assembly m 1972 and first
funded with the sale of State general obligation bonds in
1973 This direct loan program expands home owner
ship opportunities for low income Marylanders By vir-
tue of its funding source—general fund appropriations,
and a revolving fund from pnor loans under the Pro
gram—it differs from the other single family programs
Loans have been made m every county and Baltimore
City (Code 1957, Art 83B,secs 2 401 through 2 409,
Code Financial Institutions Article, sec 13 310)
The Maryland Home Financing Program also snmu
lates the production and rehabilitation of owner occu-
pied housing by providing below market loans targeted
at households with annual income under $27,650 The
Administration encourages local governments and non-
profit organizations to contribute local resources for
developments funded through this program
The Settlement Expense Loan Program was be
gun by the General Assembly in 1988 The Pro-
gram 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 was started
by the General Assembly in 1986 and first funded in
1988 through reserve funds of the Community De-
velopment Administration The Program enables
older Maryland home owners to gain access to the
accumulated equity in their homes without 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

HOUSING DEVELOPMENT PROGRAMS
Vacancy, Director
(410)514 7446

The Elderly Rental Housing Program was cre-
ated by the legislature in 1984 The Program pro
vides 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 Construction Loan Program was created in
1987 with Community Development Administration
reserve funds to provide construction financing to
nonprofit organizations and local governments to
acquire, build, or rehabilitate single family owned
homes, mulnfamily rental housing, congregate hous
ing, group homes, and sheltered housing Housing
developed under the Program must be rented or sold
to low and moderate income persons
The HOME Program finances construction, ac
quisition, and rehabilitation of rental housing, owner
occupied housing, and special needs housing, such as
group homes The Program was designated by the
Governor to allocate funds from the HOME Invest-
ment Partnership Program established by the federal
National Affordable Housmg Act of 1990 (Title II)
HOME funds are used in conjunction with the Ho
meownership, Housmg Development and Special
Loan Programs of the Community Development
Administration Projects funded must meet federal
HOME regulations For HOMF funds used in con
junction with the Community Development Admini
stranon, projects must qualify for the Community
Development Administration program Some funds
are allocated to an Innovations Fund awarded corn
petmvely to stimulate ideas, test new ideas in housing,
initiate pilot programs, and support promising pro-
jects Monies from the Innovations Fund are awarded
to projects that neither qualify for nor need funds from
other programs of the Community Development
Administration, or to those which the Administration,
as a matter of policy, has elected not to fund under its
existing program
The Home and Energy Loans Program—Multi-
Family provides loans for energy conservation,
home improvements, and general rehabilitation of
multifamily rental housing Loans are made directly
through the Community Development Admini-
stration for rental housing with one or more units
Funds are generated by the sale of mortgage reve
nue bonds and taxable bonds In multifamily devel
opments, a certain percentage of units must be
rented to limited-income families
The Law-Income Housing Tax Credit Program was
designated by Ac 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 allocation to both non
profit and for-profit sponsors of low mcome housing

The Maryland Housing Rehabilitation Program—
Multi-Family is designed to preserve housing by
making direct, low-interest loans for repair and reno
vanon to the owners of apartment buildings with five
or more units and commercial properties Recipients
of loans for the renovation of rental properties must
make units available to low income tenants in the