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2316
LAWS OF MARYLAND
[Ch. 409
Article 41 — Governor—Executive and
Administrative Departments
HOME FINANCING PROGRAM
266FF-1. CREATED IN DEPARTMENT OF ECONOMIC AND COMMUNITY
DEVELOPMENT.
THE HOME FINANCING PROGRAM IS CREATED WITHIN THE
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT FOR THE
PURPOSE OF MAKING LOANS AT A PREFERRED RATE OF INTEREST
TO ALLOW DISADVANTAGED AND LOW-INCOME CITIZENS OF
MARYLAND TO BUY HOMES. THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT SHALL MANAGE AND SUPERVISE THE
PROGRAM.
266FF-2. LOANS; ELIGIBILITY; SPOUSES; DEPARTMENTAL
POWERS.
(A) THE DEPARTMENT MAY MAKE DIRECT LOANS TO
QUALIFYING HOME BUYERS AT AN INTEREST RATE WHICH WILL
MAKE THE PROGRAM SELF-SUPPORTING. IN ESTABLISHING THE
INTEREST RATE FROM TIME TO TIME, THE DEPARTMENT SHALL
TAKE INTO ACCOUNT ALL OF THE EXPENSES OF THE PROGRAM
INCLUDING INTEREST PAID BY THE STATE ON BONDS USED TO
FUND THE PROGRAM, ADMINISTRATIVE EXPENSES OF THE PROGRAM,
AND POSSIBLE LOSSES. THE DEPARTMENT MAY COLLECT A
UNIFORM APPLICATION FEE, AND RETAIN FROM IT ANY AMOUNTS
NOT EXPENDED FOR CREDIT REPORTS, APPRAISALS, AND OTHER
EXPENSES OF PROCESSING LOAN APPLICATIONS. EXCEPT FOR
AMOUNTS SO COLLECTED AND RETAINED, THE DEPARTMENT MAY NOT
CHARGE "POINTS" OR ANY OTHER CHARGES OR FEES CONSTITUTING
INTEREST TO EITHER THE BUYER OR SELLER IN A LOAN
TRANSACTION MADE UNDER THIS SUBTITLE. LOANS MADE UNDER
THIS SUBTITLE SHALL BE SECURED BY A FIRST MORTGAGE ON THE
PROPERTY PURCHASED AND ANY IMPROVEMENTS AND FIXTURES ON
IT.
(B) TO BE ELIGIBLE FOR A LOAN, AN APPLICANT SHALL
MEET ALL OF THE FOLLOWING CONDITIONS OF ELIGIBILITY:
(1) HE SHALL HAVE BEEN DOMICILED IN MARYLAND
FOR A PERIOD OF AT LEAST ONE YEAR PRIOR TO FILING HIS
APPLICATION;
(2) HE MUST INTEND TO LIVE IN THE HOME TO BE
FINANCED AND NOT OWN ANY OTHER PROPERTY USED OR USABLE AS
A RESIDENCE AS OF THE TIME OF CLOSING.
(3) HE MUST BE UNABLE FINANCIALLY TO OBTAIN
A PRIVATE MORTGAGE OR OTHERWISE FINANCE THE PURCHASE. TO
ENFORCE THIS REQUIREMENT, AND THE POLICY UNDERLYING IT,
THE DEPARTMENT:
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