PARRIS N. GLENDENING, Governor

H.B. 1037

2-1202.

(a)     The Department[, under a demonstration project,] shall [make] AWARD
operating assistance grants to nonprofit organizations for the purpose of building their
capacity to participate in housing projects or activities authorized by the programs
established in this title that are financed through the Rental Housing Programs Fund, the
Homeownership Programs Fund, the Special Loan Programs Fund, or otherwise financed
in whole or in part by the Department.

(b)     To be eligible for an operating assistance grant under this section a nonprofit
organization must have limited expertise or no recent experience in participating in
projects or activities financed in whole or in part by the Department.

2-1203.

The Department[, under a demonstration project,] shall [make] AWARD
operating assistance grants to nonprofit organizations [in order] to facilitate the
production or rehabilitation of limited income housing by nonprofit organizations or by
individuals assisted by nonprofit organizations if:

(1)     The nonprofit organization meets performance and other standards
established by the Department; and

(2)     The nonprofit organization has:

(i) Completed, or substantially completed, a loan application that has
been deemed acceptable by the Department to undertake a housing project which is
financed, in whole or in part, by the Department SUBMITTED AN APPLICATION FOR
OPERATING ASSISTANCE THAT IS ACCEPTABLE TO THE DEPARTMENT. INCLUDING A
DESCRIPTION OF THE HOUSING PROJECT AND. IF THE NONPROFIT ORGANIZATION
RECEIVED A GRANT IN THE PRIOR YEAR. EVIDENCE OF ACCEPTABLE
PERFORMANCE IN THE PRIOR YEAR; or

(ii) Provided assistance to individuals making applications for loans
from the Department or a local government approved by the Department has certified
that the nonprofit organization's efforts were responsible for the origination of the
applications.

2-1203.1.

(A) THE DEPARTMENT SHALL AWARD PERFORMANCE FUNDING GRANTS TO
NONPROFIT ORGANIZATIONS FOR THE PURPOSE OF ENABLING ELIGIBLE
NONPROFIT ORGANIZATIONS TO ENGAGE IN HOUSING PRODUCTION FOR LOW AND
MODERATE INCOME HOUSEHOLDS.

(B) TO BE ELIGIBLE FOR A PERFORMANCE FUNDING GRANT UNDER THIS
SECTION A NONPROFIT ORGANIZATION MUST:

(1) DEMONSTRATE A RECORD OF PERFORMANCE IN HOUSING
PRODUCTION ACCEPTABLE TO THE DEPARTMENT;

(2)     DEMONSTRATE EVIDENCE OF A CONTINUING CAPACITY TO
ENGAGE IN HOUSING PRODUCTION, AND

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