HARRY HUGHES, Governor                                  2873

Loans may be either insured or uninsured as the Department
requires, and shall be at a rate of interest that is, as
long as the State complies with any applicable federal
treasury regulations governing the borrowing of moneys by
the State:

(i) At least sufficient to cover:

1. All administrative and other
expenses of the program;

2. Reasonably expected losses due to
defaults on loans; and

3. The interest cost of moneys used
to fund the program, which may be the actual interest cost
of moneys borrowed by the State and appropriated to the
program, or the imputed interest cost of general funds or
loan repayments appropriated to the program; and

(ii) Not less than a rate that is 5
percentage points below the prevailing rate on comparable
loans made by private lenders as determined by the
Department, unless:

1. The Department also determines
that the prevailing rate is so high that this condition is
not compatible with both prudent loan underwriting standards
and with the income limits established under § 257L(b)(4) of
this subtitle; or

2. The Department also determines
that a rate that is more than 5 percentage points below the
prevailing rate is necessary to comply with federal treasury
regulations governing the borrowing of moneys by the State.

(7) The Department shall establish a maximum
percentage or amount of loans made from the fund which may
be used for nonresidential rehabilitation.

(8) The program shall be administered to the
maximum extent possible in conjunction with federal programs
assisting rehabilitation of housing, so as to insure maximum
utilization of available federal funds.

(9) The program shall be administered, to the
maximum extent possible, consistently with locally approved

plans or programs of concentrated neighborhood

revitalization.

(D) (1) THE MIGRATORY WORKER HOUSING FACILITIES
PROGRAM IS CREATED WITHIN THE MARYLAND HOUSING
REHABILITATION PROGRAM.