Ch. 413

1994 LAWS OF MARYLAND

(2) (I) HAVE A COMMITMENT FROM THE DEPARTMENT FOR PERMANENT
FINANCING FOR SALE OF THE RESIDENCES ACQUIRED AND CONSTRUCTED OR
REHABILITATED WITH THE SHORT-TERM LOAN; OR

(II) HAVE APPROVAL FROM THE DEPARTMENT TO RENT THE
RESIDENCE SUBJECT TO A LEASE PURCHASE AGREEMENT ACCEPTABLE TO THE
DEPARTMENT.

2-611.

(d) (1) A loan shall be secured by a recorded lien on the real property that is to
secure repayment of the loan, which [in the case of emergency assistance and reverse
equity loans] may be a subordinate lien.

(2) In the case of emergency assistance loans, a lien may be released if it is
in the best financial interests of the Department.

(f) (1) For preferred interest loans made under § 2-602(1) of this subtitle, the
amount of the loan and any prior recorded liens outstanding may not exceed the value of
the secured property plus settlement expenses as may be determined by the Program at
the time the loan is closed.

(2)      For reverse equity loans made under § 2-602(4) of this subtitle, the
principal amount of the loan and any prior liens outstanding may not exceed the
appreciated value of the secured property as determined by the Program from time to
time.

(3)      For short-term [construction] loans made under § 2-602(2) of this
subtitle, the amount of the loan may not exceed the amount of the [commitment] TOTAL

'COMMITMENTS for permanent financing for buyers, INCLUDING ANY COMMITMENTS
OF FEDERAL, STATE, OR LOCAL FUNDS TO BE USED TO SUBSIDIZE THE COST OF THE
RESIDENTIAL UNITS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

Approved May 2, 1994.

CHAPTER 413
(House Bill 1139)

AN ACT concerning

Domiciliary Care Facilities Board - Membership

FOR the purpose of altering the membership of the Domiciliary Care Facilities Board to
remove the Director of the Office of Planning; requiring the Governor to appoint a
chairperson of the Board from among the State agency representatives to the
Board; requiring the State Office on Aging rather than the Office of Planning to
provide staff support to the Board; and generally relating to the membership and

- 2054 -