PARRIS N. GLENDENING, Governor

Ch. 94

(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.

(9)     The Secretary shall establish criteria to ensure the maximum use of any
available private financing. If a portion of rehabilitation is to be financed by a private
lending institution, the Department shall require that the sponsor utilize the maximum
amount of private financing which the project can support without impairing the
feasibility of the project and, if residential, of providing affordable housing to
limited-income tenants.

(10)   Loans made by the Maryland Housing Rehabilitation Program shall be
at a rate of interest that is, as long as the State complies with any applicable federal
treasury regulations governing the borrowing of moneys by the State, at least sufficient to
cover:

(i) All administrative and other expenses of the Program; and

(ii) Reasonably expected losses due to defaults on loans.

(i) The Department shall include in its request for appropriations for the
Program any information requested by the Secretary of Budget and Fiscal Planning about
loans at lower rates of interest which shall include, at a minimum, an estimate of the
lower rates of interest at which eligible loans may be made and the aggregate principal
amount of loans expected to be made at the lower rates in the coming fiscal year.

(j) The Department shall establish a maximum percentage or amount of loans
made from the Rental Housing Programs Fund which may be used for nonresidential
rehabilitation.

(k) The Program shall be administered to the maximum extent possible in
conjunction with federal programs assisting rehabilitation of housing, so as to insure
maximum utilization of available federal funds.

(1) The Program shall be administered, to the maximum extent possible,
consistently with locally approved plans or programs of concentrated neighborhood
revitalization.

2-506.

(a)     Loans under the Rental Housing Production Program may be secured by a
mortgage lien, which may be subordinate to other mortgage liens, and may include such
terms as the Department deems necessary to make the rental housing affordable to
families of lower income, including deferred payment of principal and interest and
interest rates as low as zero percent.

(b)     A loan may be used:

(1) For capital assistance to finance all or a portion of the development
costs of a rental housing production project, in which case the loan shall be secured IN
WHOLE OR IN PART by a mortgage lien; or

- 1435 -