Ch.. 311                                    LAWS OF MARYLAND

[(1)] (B) The Department shall operate the Program,
and make rehabilitation loans from the fund under the provisions
of this section.

[(2)] (C) The Department shall allocate and at least
annually reallocate the portion of the fund not appropriated for
the making of special loans, among the counties, to ensure that
all areas of [Maryland] THE STATE are served, taking into account
[(i)] (1) the number of families of limited incomes in the
county, [(ii)] (2) the need for rehabilitation of buildings in
the county, [(iii)] (3) the extent of the capability of the
county to administer a rehabilitation program, and [(iv)] (4) 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. In
making its allocations, the Department may allocate up to 25
percent of the total moneys available in the fund to a reserve.
The Department may, from time to time, reallocate the moneys held
in reserve;

[(3)] (D) 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 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 allocation or
suballocation to that political subdivision.

[(4)] (E) 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)] (F) Loans made under the special loan programs
may permit:

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