Ch. 2 20                                           LAWS OF MARYLAND

(1)  Acquire property securing a loan in default;

(2)  Encumber, sell, or otherwise dispose of property
acquired in connection with a loan in default;

(3)     Assign a mortgage for value;

(4)  Release a mortgage when paid; or

(5)  Foreclose a mortgage.]
2-604.

(A) THE DEPARTMENT SHALL:

(1)  MANAGE AND SUPERVISE THE PROGRAM;

(2)  CARRY OUT THE PROGRAM IN A MANNER THAT:

(I)  SERVES ALL OF THE AREAS OF THE STATE; AND

(II)  AVOIDS CREATING OR AGGRAVATING LOW INCOME
CONCENTRATIONS THAT ADVERSELY AFFECT COMMUNITIES;

(3)  ADOPT POLICIES TO INSURE THAT ALL LOANS MADE
UNDER THE PROGRAM ARE MADE ONLY TO:

(I)  HOUSEHOLDS WHO:

1.  HAVE ADJUSTED ANNUAL INCOMES AT THE
TIME THE LOAN IS MADE WITHIN THE APPLICABLE UPPER LIMITS
DETERMINED BY THE SECRETARY IN ACCORDANCE WITH PARAGRAPH (5) OF
THIS SECTION; AND

2.  CANNOT QUALIFY FOR CONVENTIONAL OR
OTHER AVAILABLE DEPARTMENTAL FINANCING TO ENABLE THE OWNER TO
CONTINUE TO OCCUPY THE HOME, OR FOR THE PURCHASE, PURCHASE AND
REHABILITATION, OR REFINANCING OF A HOME; OR

(II)  DEVELOPERS WHO THE DEPARTMENT REASONABLY
ANTICIPATES CAN BUILD OR REHABILITATE HOUSING AFFORDABLE TO
HOUSEHOLDS OF LIMITED INCOME;

(4)  PERIODICALLY SET INTEREST RATES AND TERMS
APPROPRIATE FOR EACH TYPE OF LOAN DESCRIBED IN § 2-602 OF THIS
SUBTITLE, TAKING INTO ACCOUNT RATES AVAILABLE IN THE CONVENTIONAL
PRIVATE HOUSING MARKET AND THE ADJUSTED ANNUAL INCOME AND ASSETS
OF BORROWERS TO BE SERVED BY EACH TYPE OF LOAN TO BE MADE BY THE
PROGRAM;

(5)  PERIODICALLY SET UPPER LIMITS ON ADJUSTED ANNUAL
INCOME:

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