WILLIAM DONALD SCHAEFER, Governor Ch. 227

earnings shall be paid into the Fund. [Any repayment of loans
from the Fund shall be paid into the Fund.]

(D) AT ANY TIME FOLLOWING THE FIRST 8 MONTHS OF ANY FISCAL
YEAR, THE DEPARTMENT MAY TRANSFER, SUBJECT TO THE PROVISIONS OF §
7-209 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, UNENCUMBERED
MONEYS IN THE RENTAL HOUSING PROGRAMS FUND TO ANY OTHER FUND
ESTABLISHED UNDER THIS TITLE, EXCEPT AS MAY OTHERWISE BE PROVIDED
IN THE STATE BUDGET.

2-506.

(b) A loan may be used:

(1)  For capital assistance to finance all or a
portion of the development costs of a rental housing production
project, in which case the loan shall be secured by a mortgage
lien; or

(2)  For operating assistance to reduce the operating
costs of a rental housing production project by depositing the
loan proceeds in an interest bearing [escrow] account subject to
the control of the Department that shall be made available for
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.

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] SUPPORTS the
project.

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] SPONSORS
to participate in the Program including reserving a portion of
the Fund for a period of time for loans to nonprofit

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