WILLIAM DONALD SCHAEFER, Governor                            Ch. 421

Article 83B - Department of Housing and Community Development

2-501.

(1) [(1)]"Rental housing production project" or "project" means any project or
undertaking for the acquisition, construction, or rehabilitation of buildings and
improvements, or any portion thereof, which buildings and improvements or portion
thereof will be occupied by families of lower income as follows:

[(i) For projects which qualify for federal low-income housing tax
credits, the number of residential units selected by the sponsor to satisfy the federal
requirements will be occupied by families of lower income; or

(ii) For all other projects, all residential units will be occupied by
families of lower income.]

(1)      AT LEAST A MINIMUM NUMBER OF DWELLING UNITS SHALL BE
RESTRICTED FOR OCCUPANCY BY FAMILIES OF LOWER INCOME FOR AT LEAST A
MINIMUM NUMBER OF YEARS.

(2)      THE MINIMUM NUMBER OF DWELLING UNITS SHALL BE THE
GREATER OF:

(I)       THE NUMBER OF UNITS WHICH IS EQUAL TO THE PROPORTION
OF THE AMOUNT OF THE PROGRAM LOAN FOR THE PROJECT TO THE TOTAL
FINANCING OF THE UNDERTAKING; OR

(II)     FOR PROJECTS WHICH RECEIVE AN ALLOCATION OF FEDERAL
LOW INCOME HOUSING TAX CREDITS, THE NUMBER OF UNITS SELECTED BY THE
SPONSOR TO SATISFY THE FEDERAL OCCUPANCY REQUIREMENTS; OR

(III)    FOR PROJECTS WHICH FINANCE A PORTION OF THE PROJECT
COSTS WITH GOVERNMENT ISSUED FEDERALLY TAX EXEMPT REVENUE BONDS, THE
GREATER OF:

1.        THE NUMBER OF UNITS REQUIRED FOR COMMUNITY
DEVELOPMENT PROJECTS UNDER § 2-203(F)(1)(I) § 2-203(F)(1)(II) OF THIS TITLE; OR

2.        THE NUMBER OF UNITS SELECTED BY THE ISSUER OF THE
BONDS.

(3)      THE MINIMUM NUMBER OF YEARS SHALL BE THE GREATER OF THE
NUMBER OF YEARS IMPOSED BY THE FEDERAL REQUIREMENTS OR 15 YEARS.

(4)      UNITS RESTRICTED FOR OCCUPANCY TO MEET OTHER FEDERAL OR
STATE OCCUPANCY REQUIREMENTS MAY BE COUNTED TOWARDS THE MINIMUM
NUMBER REQUIRED UNDER THIS SECTION.

[(2)] (5) "Rental housing production project" or "project" includes:

(i) Limited equity cooperative housing if such housing satisfies, at the
time of sale or transfer of shares, the occupancy requirements contained in this
subsection; and

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