2872

LAWS OF MARYLAND

Ch. 400

(2) The Department shall allocate and annually
reallocate the fund, among the counties, to ensure that all
areas of Maryland are served, taking into account (i) the
number of families of limited incomes in the county, (ii)
the need for rehabilitation of buildings in the county,
(iii) the extent of the capability of the county to
administer a rehabilitation program, and (iv) any other
criteria the Department deems relevant to ensure fair and
equitable distribution of funds among the counties. In
making its allocations, the Department may initially
allocate on a countywide basis, and then make suballocations
among participating political subdivisions within the
counties.

(3) Each political subdivision certified by the
Department as capable of administering a rehabilitation
program may originate and administer loans made by the
Department from the annual allocation or suballocation to
the political subdivision, in accordance with regulations
promulgated by the Department. The Department shall, by
regulation, establish criteria for determining capability
which shall include the size, training and experience of the
professional staff responsible for the administration of a
program and the capabilities of the staff for determining
local rehabilitation needs, for establishing rehabilitation
programs, for evaluating applications for rehabilitation
loans, and for monitoring the loans and the rehabilitation
work done under these loans. If the Department determines
that a political subdivision is not capable or does not
desire to administer a rehabilitation program, the
Department may originate and administer loans from the
annual allocation or suballocation to that political
subdivision.

(4) The Department may assist in training
employees of political subdivisions to help achieve and
increase their capability to administer rehabilitation
programs in accordance with the criteria determined by the
Department. The Department may provide technical assistance
and advice to the political subdivisions on the
administration of their rehabilitation programs.

(5) The Department shall consult from time to
time with an advisory council which consists of eight
members appointed by the Secretary of the Department, at
least five of whom shall be representatives of political
subdivisions.

(6) Loans may not exceed an amount the Secretary
shall establish by regulation and they may not be made where
comparable private financing is available to the prospective
borrowers. Loans over $5,000 shall be secured by a recorded
mortgage or deed of trust on the property. Loans shall be
made from the fund to families of limited income owning and
occupying the building to be rehabilitated, or to sponsors.