H.B. 1037

VETOES

(3) NEED OPERATING SUPPORT.

2-1203.2.

THE DEPARTMENT SHALL AWARD PERFORMANCE FUNDING GRANTS TO
NONPROFIT ORGANIZATIONS TO FACILITATE HOUSING PRODUCTION 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 SUBMITTED AN ANNUAL-
WORK PROGRAM, ACCEPTABLE TO THE DEPARTMENT, DETAILING HOUSING TO BE
PRODUCED AND, IF THE NONPROFIT ORGANIZATION RECEIVED A PERFORMANCE
FUNDING GRANT IN THE PRIOR YEAR, EVIDENCE OF ACCEPTABLE PERFORMANCE
IN THE PRIOR YEAR.

2-1204.

(a) Operating assistance AND PERFORMANCE FUNDING grants made under this
subtitle may not exceed amounts established by the Department [and may be calculated
as:

(1)     A fixed lump sum;

(2)     A percentage of the costs of undertaking a project; or

(3)     A percentage of the amount of the loan, if any, being financed by the
Department].

(B) A NONPROFIT ORGANIZATION RECEIVING A PERFORMANCE FUNDING
GRANT FROM THE DEPARTMENT MUST PROVIDE MATCHING FUNDS IN AN AMOUNT
NOT LESS THAN 50 PERCENT OF THE AMOUNT OF THE PERFORMANCE FUNDING
GRANT RECEIVED.

(C) OPERATING ASSISTANCE AND PERFORMANCE FUNDING GRANTS MAY BE
USED BY AND AT THE DISCRETION OF THE NONPROFIT ORGANIZATION FOR
ADMINISTRATIVE AND OPERATING EXPENSES, ORGANIZATIONAL COSTS, AND
OTHER COSTS ASSOCIATED WITH THE PRODUCTION OF HOUSING.

[(b)](D) Subject to § 2-1202 of this subtitle, a nonprofit organization may receive
a grant or grants, for up to 3 years for capacity building purposes in each of the housing
development areas of rental housing programs, home ownership programs, and special
loan programs.

[(c)](E) A grant made under § 2-1202 of this subtitle may be for a term of up to
3 years if, in the determination of the Department, the performance of the nonprofit
organization in the preceding year is acceptable and funds are appropriated and available
in the succeeding year.

(F) SUBJECT TO § 2-1203.1 OF THIS SUBTITLE, A NONPROFIT ORGANIZATION
MAY RECEIVE PERFORMANCE FUNDING GRANTS, EACH GRANT HAVING A TERM OF

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