ROBERT L. EHRLICH, JR., Governor

Ch. 7

or have received rental assistance from FEMA, and to families who have not obtained
any assistance from FEMA but otherwise qualify for such assistance; and

(iv) (v) the availability of comparable private market financing
may not be an impediment to obtaining the loan.

(3)     The Department may require local governments to demonstrate a
contribution of resources satisfactory to the Department before the Department
provides loans under this subsection.

(4)     The Department may require an applicant for a loan under this
subsection to demonstrate that the applicant has applied and received all possible
assistance from FEMA, the Small Business Administration (SBA), or other
governmental or commercial sources, including hazard insurance.

(5)     The Department may require an affidavit from an applicant for a
loan under this subsection confirming other governmental or commercial sources of
assistance, which may be shared with FEMA, SBA, or other governmental agencies
that provide assistance.

(6)     The Department may establish priorities for making loans available
under this subsection.

(e) (1) This subsection applies to housing rehabilitation or, renovation, or
onsite replacement loans obtained in the private market for which the Department
serves as guarantor provides credit enhancement.

(2)     The Program is designed to facilitate the availability and utilization
of private market loans for the rehabilitation and, renovation, or onsite replacement
of primary residences damaged by Hurricane Isabel by a family:

(i) who otherwise meets the qualifications for a loan offered by a
financial institution; and

(ii) 1. who has been relocated into temporary housing by or has
received rental assistance from FEMA, or who has not obtained any assistance from
FEMA but otherwise qualifies for such assistance; or

2. whose primary residence has been found to be partially or
totally uninhabitable.

(3)     A loan for which the Department serves as guarantor provides credit
enhancement under this subsection:

(i) may include the refinancing of existing mortgage loans on the
primary residence; and

(ii) may not include a home equity line of credit.

(4)     The Department shall approve and make available to prospective
borrowers a list of financial institutions that are willing to offer loans for which the
Department may serve as guarantor provide credit enhancement under this
subsection.

- 33 -