2466

LAWS OF MARYLAND

Ch. 630

(iv) The amount of the State grant to be
made for any facility shall be determined after
consideration of all eligible applicants, the total of
unallocated State funds available at the time the
application is received, and such priorities of area need as
may be established by the State Department of Health and
Mental Hygiene.

(v) If at any time within 15 years after
completion of construction, a facility with respect to which
funds have been paid under the provisions of this Act:

1.  Is sold or transferred to any
person, agency, or organization which would not itself
qualify as an applicant under the terms of this Act, or
which is not approved as a transferee by the Secretary of
Health and Mental Hygiene, or

2.  Ceases to be a public or
nonprofit facility, as defined in this Act, then the State
may recover from either the transferor or transferee or, in
the case of an institution a facility which has ceased to be
a public or nonprofit facility, from the owner, an amount
bearing the same ratio to the current value (as determined
by agreement of the State and such transferor, transferee,
or owner, or by action brought in a court of competent
jurisdiction) of so much of the institution facility as
constituted an approved project, as the amount of the State
participation bore to the cost of the construction under
that project. A notice of this right of recovery shall be
recorded in the land records of the political subdivision in
which the facility is located prior to the release of any
grant funds to the facility. The recording of the notice
shall not create any lien against the property. However,
when a facility is determined to be in default, the
Secretary of Health and Mental Hygiene shall record in the
land records of the political subdivision in which the
facility is located a notice of the amount which the State
is entitled to recover; and that amount shall constitute a
lien upon the real property of the institution from the date
of the determination. All funds recovered pursuant to this
right of recovery shall be deposited in the Annuity Bond
Fund and shall be applied to the debt service requirements
of the State. The Secretary of Health and Mental Hygiene
may waive the State's right of recovery if the Secretary
determines that there is good cause for releasing the
transferor, transferee, or owner from this obligation.

(e) The application shall initially be directed
to the Secretary of Health and Mental Hygiene. Upon
approval of the project and the project's plans, the
Secretary shall promptly report the application to the Board
of Public Works, together with the report that the project
has been approved by the Secretary and the Secretary's
recommendation that the Board of Public Works make funds
available as provided in this Act.