WILLIAM DONALD SCHAEFER, Governor Ch. 274

LOANS TO FINANCE HOUSING WHICH WOULD SERVE OCCUPANTS IN SUCH
LOWER INCOME RANGES.

[(g)] (H) (1) Loans may not exceed an amount the Secretary
shall establish by regulation and they may not be made where THE
DEPARTMENT HAS DETERMINED THAT comparable private financing is
available to the prospective borrowers.

(2)  Loans over $5,000 shall be secured by a recorded
mortgage or deed of trust on real property.

(3)  Loans shall be made from the fund to families of
limited income owning and occupying the building to be
rehabilitated, or to sponsors or nonprofit sponsors.

(4)  Loans may be either insured or uninsured as the
Department requires.

(5)  Loans may cover the costs of a rehabilitation
project and closing costs of the loan. Loans may cover costs
related to the implementation of a rehabilitation project such as
appraisal fees or architectural and engineering fees.

(6)  MODIFICATIONS TO THE RATE OF INTEREST, THE TIME
OR AMOUNT OF PAYMENT, OR ANY OTHER TERM OF A LOAN WHICH IS IN
DEFAULT MAY BE MADE BY THE DEPARTMENT IN ORDER TO ENSURE
REPAYMENT OF THE LOAN AND ACHIEVE THE PURPOSES OF THE PROGRAM.

(7)  TO THE EXTENT THE DEPARTMENT HAS PROVIDED A LOAN
FOR THE FINANCING OF A RESIDENTIAL REHABILITATION PROJECT, THE
SPONSOR OR NONPROFIT SPONSOR MUST PROVIDE A PROPORTIONATE SHARE
OF THE DWELLING UNITS FOR OCCUPANCY BY FAMILIES OF LIMITED INCOME
FOR A TERM OF 5 YEARS OR MORE DEPENDING ON THE TYPE OF
REHABILITATION AND THE TERMS AND CONDITIONS OF THE LOAN AS SHALL
BE SET FORTH IN REGULATIONS TO BE PROMULGATED BY THE DEPARTMENT.

(8)  AS A CONDITION TO CERTAIN TYPES OF LOANS, THE
DEPARTMENT MAY REQUIRE A CONTRIBUTION TO A REHABILITATION PROJECT
FROM THE POLITICAL SUBDIVISION WHERE THE PROJECT IS LOCATED.

(9)  THE SECRETARY SHALL ESTABLISH CRITERIA 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) Except as provided in paragraph (3) of this
subsection, loans (10) LOANS MADE BY THE MARYLAND HOUSING
REHABILITATION PROGRAM shall be at a rate of interest that is, as
long as the State complies with any applicable federal treasury

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