Ch. 412                                    1994 LAWS OF MARYLAND

(3) SHORT-TERM LOANS TO NONPROFIT SPONSORS, AS DEFINED IN
REGULATIONS ADOPTED BY THE DEPARTMENT, FOR THE ACQUISITION AND
CONSTRUCTION, OR ACQUISITION AND REHABILITATION, OF RESIDENTIAL UNITS
AFFORDABLE FOR HOUSEHOLDS OF LIMITED INCOME TO BUY UNDER A PURCHASE OR
LEASE-PURCHASE CONTRACT;

(3) (4) Emergency assistance loans to households of limited income who,
because of unemployment or other extraordinary hardship, are unable to make current
mortgage payments on their homes and are likely to have to forfeit the title to their home;
and

(4) (5) Reverse equity loans to elderly households of limited income for
housing related expenses and personal expenses which enable the owner to continue to
occupy the owner's home.

2-604.

(a) The Department shall:

(1)     Manage and supervise the Program;

(2)     Carry out the Program in a manner that:

(i) Serves all of the areas of the State; and

(ii) Avoids creating or aggravating low income concentrations that
adversely affect communities;

(3)     Adopt policies to insure that all loans made under the Program are
made only to:

(i) Households that:

1.       Have adjusted annual incomes at the time the loan is made
within the applicable upper limits determined by the Secretary in accordance with
paragraph (5) of this subsection; and

2.       Cannot qualify for conventional or other available
departmental financing to enable the owner to continue to occupy the home, or for the
purchase, purchase and rehabilitation, or refinancing of a home;

(ii) Developers who the Department reasonably anticipates can build
or rehabilitate housing affordable to households of limited income; or                     

(iii) Owner-occupants of residential buildings with no more than 4
units who agree to rent to households of limited income;

(4)     Periodically set interest rates WHICH MAY BE AS LOW AS 0.0 PERCENT
OR AS HIGH AS IS REASONABLE DEPENDING UPON THE INCOMES OF THE PROPOSED
OCCUPANTS and terms appropriate for each type of loan described in § 2-602 of this
subtitle, taking into account rates available in the conventional private housing market
and the adjusted annual income and assets of borrowers to be served by each type of loan
to be made by the Program;

- 2052 -