WILLIAM DONALD SCHAEFER, Governor                            Ch. 439

(5)      Loans may cover the costs of a rehabilitation project and closing costs of
the loan. Loans may cover costs related to the implementation of a rehabilitation project
such as appraisal fees or architectural and engineering fees.

(6)     Modifications to the rate of interest, the time or amount of payment, or
any other term of a loan which is in default may be made by the Department in order to
ensure repayment of the loan and achieve the purposes of the Program.

(7)      (I) To the extent the Department has provided a loan for the
financing of a residential rehabilitation project, the sponsor or nonprofit sponsor must
provide [a proportionate share of the dwelling units for occupancy by families of limited
income for a term of 5 years or more depending on the type of rehabilitation and the
terms and conditions of the loan as shall be set forth in regulations to be promulgated by
the Department] AT LEAST A MINIMUM NUMBER OF DWELLING UNITS RESTRICTED
FOR OCCUPANCY BY FAMILIES OF LOWER INCOME FOR AT LEAST A MINIMUM
NUMBER OF YEARS.

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

1.        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

2.        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

3.        FOR PROJECTS WHICH FINANCE A PORTION OF THE
PROJECTS COSTS WITH GOVERNMENT ISSUED FEDERALLY TAX EXEMPT REVENUE
BONDS, THE GREATER OF:

A.       THE NUMBER OF UNITS REQUIRED FOR COMMUNITY
DEVELOPMENT PROJECTS UNDER ARTICLE 83B, § 2-203(F)(1)(I) § 2-203(F)(1)(II) OF THIS
TITLE; OR

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

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

(IV)    UNITS RESTRICTED FOR OCCUPANCY TO MEET OTHER
FEDERAL OR STATE OCCUPANCY REQUIREMENTS MAY BE COUNTED TOWARD THE
MINIMUM NUMBER REQUIRED HEREUNDER.

(8)     As a condition to certain types of loans, the Department may require a
contribution to a rehabilitation project from the political subdivision where the project is
located.

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