WILLIAM DONALD SCHAEFER, Governor Ch. 274

(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. 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.]

2-303.

(a)  There is a Maryland Housing Rehabilitation Program.
LOANS MADE UNDER THIS SECTION FOR REHABILITATION OF BUILDINGS
PROVIDING MORE THAN 4 DWELLING UNITS OR SERVING NONRESIDENTIAL
NEEDS AND LOANS TO NONPROFIT SPONSORS UNDER § 2-305 OF THIS
SUBTITLE MAY BE KNOWN AS THE MULTI-FAMILY REHABILITATION PROGRAM.
LOANS, EXCEPT SPECIAL LOANS, MADE UNDER THIS PROGRAM FOR
REHABILITATION OF RESIDENTIAL BUILDINGS PROVIDING 4 OR LESS
DWELLING UNITS MAY BE KNOWN AS THE REGULAR REHABILITATION
PROGRAM. SPECIAL LOANS MADE UNDER ONE OF THE SPECIAL LOAN
PROGRAMS MAY BE KNOWN AS THE SPECIAL REHABILITATION PROGRAM.
Except as otherwise specifically provided, the provisions of this
section shall not apply to special loans.

(b)  The Department shall operate the Program, and make
rehabilitation loans [from the fund] under the provisions of this
section.

(c)  The Department shall allocate and at least annually
reallocate the [portion of the fund not] MONEYS appropriated for
the making of [special] loans UNDER THE REGULAR PROGRAM, among
the counties, to ensure that all areas of the State are served,
taking into account (1) the number of families of limited incomes
in the county, (2) the need for rehabilitation of buildings in
the county, (3) the extent of the capability of the county to
administer a rehabilitation program, and (4) any other criteria
the Department deems relevant to ensure fair and equitable
distribution of funds among the counties. In making its
allocations, the Department may initially allocate on a
countywide basis, and then make suballocations among
participating political subdivisions within the counties. In
making its allocations, the Department may allocate up to 25
percent of the total moneys available in the fund to a reserve.
The Department may, from time to time, reallocate the moneys held
in reserve.

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