2194

LAWS OF MARYLAND

Ch. 627

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.] LOANS
MADE UNDER THE SPECIAL LOAN PROGRAMS MAY PERMIT:

(I)  DEFERRED PAYMENT OF PRINCIPAL AND INTEREST
UNTIL THE MATURITY DATE OR THE DATE OF ANY SALE OR OTHER TRANSFER
OF THE BUILDING OR AN INTEREST IN THE BUILDING;

(II)  INCREASED RATE OF INTEREST OR ACCELERATED
PAYMENT OF PRINCIPAL AND INTEREST IF THE BORROWER NO LONGER
QUALIFIES FOR THE LOAN; OR

(III)  ADVANCE PAYMENT TO A NONPROFIT SPONSOR
FOR CERTAIN DEVELOPMENT COSTS INCLUDING ARCHITECTS', ENGINEERS'
AND ATTORNEYS' FEES.

(6)  (i) 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] REAL property. Loans shall be
made from the fund to families of limited income owning and
occupying the building to be rehabilitated, or to sponsors OR
NONPROFIT SPONSORS. Loans may be either insured or uninsured as
the Department requires. LOANS MAY COVER THE COSTS OF A
REHABILITATION PROJECT AND CLOSING COSTS OF THE LOAN. LOANS MAY
COVER COSTS RELATED TO THE IMPLEMENTATION OF A REHABILITATION
PROJECT SUCH AS APPRAISAL FEES OR ARCHITECTURAL AND ENGINEERING
FEES.

(ii) Except as provided in subparagraph (iii)
of this paragraph, loans 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 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.