3064

LAWS OF MARYLAND

Ch. 597

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].

(III) FOR ANY LOAN FINANCING THE REHABILITATION
OF A RESIDENTIAL BUILDING, THE DEPARTMENT MAY SET A LOWER RATE OR
RATES OF INTEREST IF:

1. THE LOANS SERVE FAMILIES OF LIMITED
INCOME WHOSE INCOMES DO NOT EXCEED 80 PERCENT OF THE MAXIMUM
INCOME LIMITS THAT THE SECRETARY MAY ESTABLISH;

2. THE LOWER RATE OR RATES ARE NOT LESS
THAN THE GREATER OF 60 PERCENT OF THE ACTUAL INTEREST COST OF
MONEYS USED TO FUND THE PROGRAM OR A RATE OF 4 PERCENT; AND

3. THE SECRETARY DETERMINES THAT THE
FAMILIES OF LIMITED INCOME SERVED BY THESE LOANS DO NOT HAVE
SUFFICIENT INCOME TO REPAY A LOAN AT A HIGHER RATE OR TO PAY RENT
IN AN AMOUNT THAT WOULD ENABLE A SPONSOR TO REPAY A LOAN AT A
HIGHER RATE.

(IV) THE DEPARTMENT SHALL INCLUDE IN ITS
REQUEST FOR APPROPRIATIONS FOR THE PROGRAM ANY INFORMATION
REQUESTED BY THE SECRETARY OF BUDGET AND FISCAL PLANNING ABOUT
LOANS AT LOWER RATES OF INTEREST WHICH SHALL INCLUDE, AT A
MINIMUM, AN ESTIMATE OF THE LOWER RATES OF INTEREST AT WHICH
ELIGIBLE LOANS MAY BE MADE AND THE AGGREGATE PRINCIPAL AMOUNT OF
LOANS EXPECTED TO BE MADE AT THE LOWER RATES IN THE COMING FISCAL
YEAR.

Article - Financial Institutions

13-305.

There is a Home Financing Program of the Department.