WILLIAM DONALD SCHAEFER, Governor                         Ch. 127

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 83B - Department of Housing and Community Development

2-1102.

(d) "Household of lower income" means:

(1)      (I) A [a] household whose gross annual income, UPON INITIAL
OCCUPANCY, does not exceed 50 percent of the statewide median income for a
household of like size or such lesser income level as may be established for any particular
project by the Secretary of Housing and Community Development; AND

(2)      FOR THE PURPOSE OF CONTINUING OCCUPANCY, A HOUSEHOLD
WHOLE GROSS ANNUAL INCOME DOES NOT EXCEED THE GREATER OF:

(I)      140 PERCENT OF INITIAL OCCUPANCY LIMITS FOR
PARTNERSHIP PROJECTS FOR THE YEAR OF CONTINUING OCCUPANCY; OR

(II)     ANY APPLICABLE FEDERAL REQUIREMENT.
2-1106.

The Department shall approve applications for proposed projects only if:

(1)     The application is authorized by the local government's chief elected
official, or if none, by the governing body of the county or municipality in which the
project is located;

(2)     The local government either:

(i) Contributes from nonstate sources the land for the partnership
rental housing; or

(ii) Funds the portion of the acquisition cost of the property that is
attributable to the value of the land;

(3)     The local government will have an ownership interest in the project or in
the units financed by the Program and sold to the local government or partnership that
includes a local government;

(4)     The local government directly or indirectly manages the operation of the
project;

(5)     The rental units financed by the Program will be occupied upon
completion of the acquisition, construction, reconstruction, renovation, or rehabilitation
by households of lower income;

(6)     The households of lower income occupying the project or portion
thereof financed by the Program are required to contribute services to enhance or
maintain the project or community in a manner deemed acceptable to the local
government;

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