Current through Register Vol. 50, No. 25, December 15, 2023
B. Terms Defined.
(1) "Accessory dwelling unit" means a
dwelling unit which is:
(a) Within, attached
to, or on the same parcel as, and subordinate to but under the same ownership
as, a single family, owner-occupied dwelling; and
(b) Intended for use as a complete,
independent living facility, including permanent provisions for living,
sleeping, cooking, and sanitation by one household within limits established by
local codes, if any, pertaining to health, building, or other relevant
provisions of the law.
(2) "Act" means Housing and Community
Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, as
amended.
(3) "Allocation" means the
share of the monies appropriated annually for the Program which is reserved for
each county based on an allocation formula devised by the Department, in
accordance with Regulation .17 of this chapter.
(4) Amortizing Loans.
(a) "Amortizing loans" means loans with equal
payments of principal and interest over the term of the loan such that the
payments retire the loan by the end of the term.
(b) "Amortizing loans" includes loans with
zero interest when the principal is repaid in equal monthly installments over
the term.
(5) "Annual
income" means total household income from all sources, including wages,
investment income, Social Security, retirement, disability, and unemployment
benefits less:
(a) Unusual or temporary income
items as determined by the Department; and
(b) Abnormal expenses of a long-term nature,
such as extraordinary medical, rehabilitation, or special education
expenses.
(6)
"Applicable codes and rehabilitation standards" means the construction, health,
safety, fire, occupancy, livability, and other codes and standards in force in
the political subdivision in which an eligible building is located and
applicable to that building.
(7)
"Applicant" means any person or entity applying for a loan under the
Program.
(8) "Borrower" means a
single family owner-occupant, nonprofit sponsor, or sponsor who receives a loan
to rehabilitate an eligible building.
(9) "Closing costs" means the total of all
settlement costs and fees and, when applicable, initial payments for taxes,
property insurance, title examination, percolation tests, or other expense
items as determined by the Department.
(10) "Contract" means the agreements between
a borrower and a licensed general contractor or licensed home improvement
contractor accepted by the Department setting forth the terms of performance of
work to be financed by a loan made under the Program.
(11) "County" means any of the 23 counties in
the State and the City of Baltimore.
(12) "Deferred payment loans" means loans
which have no current payment of principal and interest, and the principal and
any interest are repaid in full upon loan maturity or sale or transfer of the
property.
(13) "Department" means
the Department of Housing and Community Development.
(14) "Director" means the Director of Single
Family Housing Programs of the Department.
(15) "Elderly" means the age limit specified
by the Secretary that is 55 years old or older.
(16) Family of Limited Income.
(a) "Family of limited income" means one or
more individuals permanently residing as a household in a dwelling unit in an
eligible building whose combined annual income does not exceed an amount
established by the Secretary in accordance with Housing and Community
Development Article, §
4-915,
Annotated Code of Maryland.
(b)
"Family of limited income" includes a trust described in 42 U.S.C. §
1396P(D)(4), or a trust established for the benefit of an individual with a
disability by an individual other than the beneficiary and that is funded with
the assets that were never owned or controlled by the beneficiary, if:
(i) The income of the trust does not exceed
an amount established by the Secretary in accordance with Housing and Community
Development Article, §
4-915,
Annotated Code of Maryland; and
(ii) The beneficiary of the trust is an
individual who resides in the residential building owned by the
trust.
(17)
Family of Lower Income.
(a) "Family of lower
income" means one or more individuals residing as a household in a dwelling
unit in an eligible building, whose combined annual income does not exceed an
amount established by the Secretary in accordance with Housing and Community
Development Article, §
4-916(b),
Annotated Code of Maryland.
(b)
"Family of lower income" includes a trust described in 42 U.S.C §
1396P(D)(4), or a trust established for the benefit of an individual with a
disability by an individual other than the beneficiary and that is funded with
the assets that were never owned or controlled by the beneficiary, if:
(i) The income of the trust does not exceed
an amount established by the Secretary in accordance with Housing and Community
Development Article, §
4-916(b),
Annotated Code of Maryland; and
(ii) The beneficiary of the trust is an
individual who resides in the residential building owned by the
trust.
(18)
Family of Very Low Income.
(a) "Family of very
low income" means one or more individuals residing as a household in a dwelling
unit, whose combined total income does not exceed an amount determined by the
Secretary in accordance with Housing and Community Development Article, §
4-916(b),
Annotated Code of Maryland, which income limits shall be lower than those
established for families of lower income.
(b) "Family of very low income" includes a
trust described in 42 U.S.C § 1396P(D)(4), or a trust established for the
benefit of an individual with a disability by an individual other than the
beneficiary and that is funded with the assets that were never owned or
controlled by the beneficiary, if:
(i) The
income of the trust does not exceed an amount established by the Secretary in
accordance with Housing and Community Development Article, §
4-916(b),
Annotated Code of Maryland; and
(ii) The beneficiary of the trust is an
individual who resides in the residential building owned by the
trust.
(19)
"General property improvements" mean nonessential improvements that enhance the
comfort, convenience, and appearance of a property, but are not necessary to
remove unsanitary conditions or eliminate hazards to health and
safety.
(20) "Household" means an
individual or a group of individuals who occupy a dwelling unit as their
permanent residence.
(21) "Level I
local administrator" means a political subdivision certified by the Department
under Regulation .16 of this chapter.
(22) "Level II local administrator" means a
political subdivision certified by the Department under Regulation .16C of this
chapter.
(23) "Local administrator"
means a level I or level II local administrator.
(24) "Nonprofit organization" means a
political subdivision, corporation, foundation, or other legal entity, no part
of the net earnings of which inures to the benefit of any private shareholder
or individual holding an interest in the entity.
(25) "Nonprofit sponsor" means either a:
(a) Nonprofit organization; or
(b) Limited partnership formed for the
purpose of undertaking a rehabilitation project which is eligible in whole or
part for federal programs or incentives, including low-income housing tax
credits, if each of the general partners qualifies as a nonprofit organization,
or the following two requirements are satisfied:
(i) A general partner of the limited
partnership is a wholly owned subsidiary of a nonprofit organization,
and
(ii) A nonprofit organization
either manages the rehabilitation project, or will be the recipient of net cash
flow or the residual sale proceeds upon sale of the rehabilitation
project.
(26)
"Partially deferred loans" means loans for which there is periodic payment of a
portion of the principal or interest, or both, due during the term of the loan
with unpaid amounts accrued and repaid upon maturity of the loan or sale or
transfer of the property.
(27)
"Political subdivision" means any municipal corporation in Maryland subject to
the provisions of Article XI-E of the Constitution, the Mayor and City Council
of Baltimore, and any of the 23 counties in Maryland.
(28) "Program" means the Regular
Rehabilitation Program of the Maryland Housing Rehabilitation
Program.
(29) "Program Director"
means the Assistant Director of Special Loan Programs in the Division of
Development Finance of the Department.
(30) Repealed.
(31) "Secretary" means the Secretary of
Housing and Community Development.
(32) "Shared living unit facility" means a
dwelling which will accommodate two or more households when some or all of the
living, dining, kitchen, or sanitary facilities are shared by the
households.
(33) Single Family
Owner-Occupant.
(a) "Single family
owner-occupant" means an eligible borrower residing or intending to reside in
an eligible building which contains one residential unit and which may contain
one accessory dwelling unit financed under the Program, but which contains no
other units, either commercial or residential.
(b) "Single family owner-occupant" includes a
trust described in 42 U.S.C § 1396P(D)(4), or a trust established for the
benefit of an individual with a disability by an individual other than the
beneficiary and that is funded with the assets that were never owned or
controlled by the beneficiary, if:
(i) The
income of the trust does not exceed an amount established by the Secretary in
accordance with Housing and Community Development Article, §
4-916(b),
Annotated Code of Maryland; and
(ii) The beneficiary of the trust is an
individual who resides in the residential building owned by the
trust.
(34)
"Special Loan Programs Fund" means the special fund created under Housing and
Community Development Article, §
4-501(a)(1),
Annotated Code of Maryland.
(35)
"Sponsor" means an owner who receives a loan to rehabilitate a building with
four or fewer units used for residential rental purposes.
(36) "Structurally sound" means not having
any physical conditions serious enough to endanger the life, property, or
safety of the occupants or their invitees, whether or not the building is in
compliance with applicable codes and rehabilitation standards.
(37) "Subcontractor" means an entity
authorized by the Department to carry out the duties and responsibilities of a
local administrator under Regulation .16D(1) of this chapter and to hold and
disburse funds under Regulation .16D(2) of this chapter.
(38) "Work write-up" means a description of
the structural, mechanical, electrical, and other work items needed for the
rehabilitation of an eligible building.
Regulations .03 amended
effective June 16, 1978 (5:12 Md. R. 965)
Regulations .03, amended
effective March 23, 1979 (6:6 Md. R. 509)
Regulations .03E, M,
amended effective October 5, 1979 (6:20 Md. R. 1627)
Regulations
.03; .06A; .08B; .10C; and .12B amended effective September 5, 1980 (7:18 Md.
R. 1737)
Regulation .03B amended effective February 11, 1985 (12:3
Md. R. 243); April 22, 1985 (12:8 Md. R. 800)
Regulations .03
adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations .03
amended effective November 9, 1992 (19:22 Md. R. 1986)
Regulation
.03B amended effective February 22, 1999 (26:4 Md. R. 272); November 29, 1999
(26:24 Md. R. 1855)