Ch. 311

LAWS OF MARYLAND

paying some or all of the. operating costs of a project including
the principal and interest when due on any prior mortgage loan
securing the rental housing production project.

(c) The Department may modify the rate of interest, the
time or amount of payment, or any other term of a loan in order
to ensure repayment of the loan and achieve the purposes of the
Program.                                                                           

[11-807.] 2-507.

(a)  The Department shall approve applications for proposed
rental housing production projects only if the political
subdivision in which a proposed project is situated has approved
the project and has made a contribution to reduce the development
costs or operating costs or otherwise support the project.

(b)  The Department shall consider in approving applications
for loans:

(1)  The economic feasibility of the project;

(2)  The political subdivision's contribution for the
project in relation to the subdivision's ability to contribute;
and

(3)  Other factors that may be relevant.
[11-808.] 2-508.

By regulation, the Department may establish:

(1)  Standards of eligibility for sponsors;

(2)  Limitations on the return on investment allowed
to sponsors;

(3)  Requirements for the number of bedrooms in a
project for each income range;

(4)  Loan terms, fees, and charges;

(5)   Incentives for nonprofit organizations to
participate in the Program including reserving a portion of the
Fund for a period of time for loans to nonprofit organizations
and allowing advance payment to nonprofit organizations for
certain development costs including architect's, engineer's, and
attorney's fees; and

(6)  A process for selection of projects that ensures
a broad geographic distribution of funds.

[11-809.] 2-509.                     

  - 1752-