WILLIAM DONALD SCHAEFER, Governor Ch. 227

(f)   "Loan" means a loan of money made by the Department
under this subtitle.

(g)  "Operating costs" means any costs incurred by a sponsor
of a completed project necessary to maintain or operate a project
including payments of principal and interest on a loan to cover
development costs.

(h) "Nonprofit organization" means a corporation,

foundation, or other legal entity, no part of the net earnings of

which inures to the benefit of any private shareholder or
individual holding any interest in such entity.

(I) "NONPROFIT SPONSOR" MEANS A SPONSOR WHO IS:

(1)  A NONPROFIT ORGANIZATION; OR

(2)  A LIMITED PARTNERSHIP IF:

(I)  EACH OF THE GENERAL PARTNERS QUALIFIES AS A
NONPROFIT ORGANIZATION; OR

(II) 1. THE LIMITED PARTNERSHIP IS A WHOLLY
OWNED SUBSIDIARY OF A NONPROFIT ORGANIZATION;

2.  THE LIMITED PARTNERSHIP IS FORMED FOR
THE PURPOSE OF UNDERTAKING A PROJECT THAT IS ELIGIBLE IN WHOLE OR
IN PART FOR FEDERAL PROGRAMS OR INCENTIVES, INCLUDING LOW INCOME
HOUSING TAX CREDITS; AND

3.  A NONPROFIT ORGANIZATION MANAGES THE
PROJECT OR WILL BE THE RECIPIENT OF NET CASH FLOW OR THE RESIDUAL
SALE PROCEEDS UPON SALE OF THE PROJECT.

[(i)] (J) "Political subdivision" means any municipal
corporation in Maryland subject to the provisions of Article XI-E
of the Constitution, the Mayor and City Council of Baltimore, and
any of the 23 counties in Maryland.

[(j)] (K) "Program" means the Rental Housing Production
Program.

[(k)] (L) (1) "Rental housing production project" or
"project" means any project or undertaking for the acquisition,
construction, or rehabilitation of buildings and improvements, or
any portion thereof, which buildings and improvements or portion
thereof will be occupied by families of lower income as follows:

(i) For projects which qualify for federal
low-income housing tax credits, the number of residential units
selected by the sponsor to satisfy the federal requirements will
be occupied by families of lower income; or

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