Ch. 94                                     1995 LAWS OF MARYLAND

(h) (1) Loans may not exceed an amount the Secretary shall establish by
regulation and they may not be made where the Department has determined that
comparable private financing is available to the prospective borrowers.

(2)     (i) Except for loans under subparagraph (ii) of this paragraph, loans
over $5,000 shall be secured IN WHOLE OR IN PART by a recorded mortgage or deed of
trust on real property.

(ii) Loans to political subdivisions may be secured by a recorded
mortgage or deed of trust on real property, or by another security device acceptable to the
Department.

(3)     Loans shall be made from the fund to families of limited income owning
and occupying the building to be rehabilitated, or to sponsors or nonprofit sponsors.

(4)     Loans may be either insured or uninsured as the Department requires.

(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 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 § 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 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.

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