WILLIAM DONALD SCHAEFER, Governor                   Ch. 190

[(r)] (S) "Special loan programs" means the Nonprofit
Rehabilitation Program, the Accessory, Shared and Sheltered
Housing Program, the [Lead Paint] RADON GAS, ASBESTOS, AND
LEAD PAINT Abatement Program, the Indoor Plumbing Program, THE
RADON GAS AND ASBESTOS ABATEMENT PILOT PROGRAM, the Migratory
Worker Housing Facilities Program, and the Livability Code
Rehabilitation Program.

[(s)] (T) "Special loans" means loans made under the
special loan programs.

[(t)] (U) "Sponsor" means an owner who receives a loan to
rehabilitate a building for residential rental purposes, for
nonresidential purposes, or for both. A sponsor shall agree that
at least two-thirds of all dwelling units rehabilitated with the
proceeds of the loan shall be occupied by families of limited
income for at least 5 years after the rehabilitation of those
units is completed. The Secretary shall establish need criteria
for the sponsor to ensure the maximum use of any available
private financing. [To qualify for a loan, except for special
loans, a sponsor must have been denied a loan by a private
lending institution, or else have received a commitment from a
private lending institution for less than the amount of funds
necessary for the rehabilitation.] If a portion of rehabilitation
is to be financed by a private lending institution, the
Department shall require that the sponsor utilize the maximum
amount of private financing which the project can support without
impairing the feasibility of the project and, if residential, of
providing affordable housing to limited-income tenants.

2-305.

(a)  The Nonprofit Rehabilitation Program is created within
the Maryland Housing Rehabilitation Program.

(b)  The Department shall operate the Program and make loans
from the fund for rehabilitation projects to nonprofit sponsors
under the provisions of this subtitle.

(c)  To qualify for a nonprofit rehabilitation loan, a
nonprofit sponsor:

(1)  Must be the owner of or be acting on behalf of
the owner of the building to be rehabilitated;

(2)  Must use the proceeds of the loan for a
rehabilitation project FOR A BUILDING which:

(I) [will] WILL provide dwelling units or
residential facilities for occupancy by families of limited
income; and

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