Ch. 274

LAWS OF MARYLAND

(d)  Each political subdivision certified by the Department
as capable of administering a rehabilitation program may
originate and administer loans made by the Department from the
allocation or suballocation to the political subdivision, in
accordance with regulations promulgated by the Department. The
Department shall, by regulation, establish criteria for
determining capability which shall include the size, training and
experience of the professional staff responsible for the
administration of a program and the capabilities of the staff for
determining local rehabilitation needs, for establishing
rehabilitation programs, for evaluating applications for
rehabilitation loans, and for monitoring the loans and the
rehabilitation work done under these loans. If the Department
determines that a political subdivision is not capable or does
not desire to administer a rehabilitation program, the Department
may originate and administer loans from the allocation or
suballocation to that political subdivision.

(e)  The Department may assist in training employees of
political subdivisions to help achieve and increase their
capability to administer rehabilitation programs in accordance
with the criteria determined by the Department. The Department
may provide technical assistance and advice to the political
subdivisions on the administration of their rehabilitation
programs.

(f)   [Loans made under the special loan programs may permit]
THE DEPARTMENT MAY MAKE LOANS ON SUCH TERMS AS THE DEPARTMENT
DEEMS NECESSARY TO MAKE THE HOUSING AFFORDABLE TO FAMILIES OF
LIMITED INCOME, INCLUDING:

(1)  Deferred payment of principal and interest until
the maturity date or the date of any sale or other transfer of
the building or an interest in the building;

(2)  AS LONG AS THE INTEREST RATE DOES NOT VIOLATE ANY
APPLICABLE FEDERAL REGULATIONS GOVERNING THE BORROWING OF MONEYS
BY THE STATE, AN INTEREST RATE AS LOW AS 0.0 PERCENT OR AS HIGH
AS IS REASONABLE GIVEN THE INCOMES OF THE PROPOSED OCCUPANTS;

[(2)] (3) Increased rate of interest or accelerated
payment of principal and interest if the borrower no longer
qualifies for the loan; [or] AND

[(3)] (4) Advance payment to a nonprofit sponsor for
certain development costs including architects', engineers' and
attorneys' fees.

(G) WITHIN THE MAXIMUM INCOME LIMITS ESTABLISHED FOR
FAMILIES OF LIMITED INCOME, THE SECRETARY MAY ESTABLISH LOWER
INCOME RANGES, INTEREST RATES TO BE AVAILABLE ON LOANS SERVING
OCCUPANTS WITH INCOMES WITHIN SUCH LOWER RANGES, AND ANY
PREFERENCE OR RESERVATION OF LOAN FUNDS FOR APPLICATIONS FOR

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