Ch. 274

LAWS OF MARYLAND

regulations governing the borrowing of moneys by the State, at
least sufficient to cover:

(i) All administrative and other expenses of
the program; AND

(ii) Reasonably expected losses due to defaults
on loans; and.

(iii) The interest cost of moneys used to fund
the program, which may be the actual interest cost of moneys
borrowed by the State and appropriated to the program, or the
imputed interest cost of general funds or loan repayments
appropriated to the program.]

[(3) For any loan financing a rehabilitation project
for a residential building, the Department may set a lower rate
or rates of interest if:

(i) The loans serve families of limited income
whose incomes do not exceed 80 percent of the maximum income
limits that the Secretary may establish and the lower rate or
rates are not less than the greater of 60 percent of the actual
interest cost of moneys used to fund the program or a rate of 4
percent; or

(ii) The building is to be occupied in
substantial part by families of limited income whose incomes are
less than 70 percent of the maximum income limits that the
Department may establish in which case the lower rate or rates
may be as low as zero percent; and

(iii) The Secretary determines that the
families of limited income served by these loans do not have
sufficient income to repay a loan at a higher rate or to pay rent
in an amount that would enable a sponsor or a nonprofit sponsor
to repay a loan at a higher rate.]

[(4)] (I) The Department shall include in its request
for appropriations for the Program any information requested by
the Secretary of Budget and Fiscal Planning [about loans at
lower rates of interest which] AND shall include, at a minimum,
an estimate of the [lower] rates of interest at which
eligible loans may be made and the aggregate principal amount of
loans expected to be made [at the lower rates] in the coming
fiscal year.

[(h)] (J) The Department shall establish a maximum
percentage or amount of loans made from the [fund] RENTAL HOUSING
PROGRAMS FUND which may be used for nonresidential
rehabilitation.

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