2870

LAWS OF MARYLAND

Ch. 400

federal housing legislation) whose incomes do not exceed
limits established by the Secretary, taking into
consideration factors including (i) the amount of the total
income of the family available for housing needs, (ii) the
size of the family, (iii) the cost and condition of
available housing facilities, (iv) the ability of the family
to compete successfully in the private housing market, and
(v) standards and definitions established for pertinent
federal and Maryland housing programs. The Secretary may
waive income limits as to borrowers or occupants, for loans
to rehabilitate buildings of historic or architectural
significance as defined by the State historical preservation
officer.

(5) "Rehabilitation" means the repair,

reconstruction, renovation, redevelopment, or improvement of
an existing building to restore it to a decent, safe, and

sanitary condition in accordance with applicable

construction, health, safety, fire, occupancy, and other
codes and standards, to ensure that the building can be
maintained in that condition, and to improve the general
utility and attractiveness of the building. [Applicable]
EXCEPT AS PROVIDED IN § 257L(D), APPLICABLE codes and
standards shall be those in force in the political
subdivision where the building is located. If the political
subdivision lacks codes and standards deemed sufficient by
the Secretary to promote the objects of this section, the
Department may by regulation prescribe codes and standards
which shall apply in that subdivision solely for purposes of
this section. The Secretary may allow exceptions to any
code or standard, with the approval of the local enforcement
authority when necessary to preserve the historic or

architectural value of any building undergoing

rehabilitation pursuant to this section. "Rehabilitation"
includes the provision of utility submetering for units in a
residential rental building.

(6) "Building" means any structure which, after
rehabilitation, provides one to 20 dwelling units or which
serves the nonresidential commercial, business, or social
needs of the community where it is located, so as to
complement or enhance the economic feasibility of housing
rehabilitation in that community. At least 20 percent of
each allocation of moneys from the fund statewide for
rehabilitation of residential rental buildings shall be for
buildings providing four or less dwelling units.

(7) "Sponsor" means an owner who receives a loan
to rehabilitate a building for residential rental purposes,
for nonresidential purposes, or for both. A sponsor shall
agree that at least two thirds of all dwelling units
rehabilitated with the proceeds of the loan shall be
occupied by families of limited income for at least five
years after the rehabilitation of those units is completed.
The Secretary shall establish need criteria for the sponsor