Code of Maryland Regulations
Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Subtitle 04 - SPECIAL LOAN PROGRAMS
Chapter 05.04.01 - Maryland Housing Rehabilitation Program - Regular Rehabilitation Program
05.04.01.04 - Eligible Borrowers

Universal Citation: MD Code Reg 05.04.01.04

05.04.01.04. Eligible Borrowers

A. To qualify as an eligible borrower under the Program, the requirements set forth in ยงยง B and C of this regulation shall be met jointly and separately if more than one individual is applying for a loan.

B. Single family owner-occupants shall:

(1) Be a "family of limited income" as defined in Regulation .03B(15) of this chapter;

(2) Intend to reside in the property to be rehabilitated;

(3) Own the eligible property in fee simple or under a freely transferable ground rent lease;

(4) Have the legal capacity to incur the obligations of the loan;

(5) Demonstrate credit worthiness and repayment ability acceptable to the Department; and

(6) Have income at a level that the Secretary has determined will render the applicant unable to afford or secure private financing to rehabilitate the property.

C. Sponsors and nonprofit sponsors shall:

(1) If a business, be in good standing and be qualified to do business in Maryland;

(2) Own the eligible property in fee simple or under a ground rent;

(3) Have the legal capacity and all necessary legal and corporate authorizations to incur the obligations of the loan;

(4) Demonstrate credit worthiness and repayment ability acceptable to the Department;

(5) In the estimation of the Department be unable to afford or secure a loan from a private lending institution for the full amount required for rehabilitation and agree to use, to the extent determined by the Department, the maximum amount of private financing which the project can support consistent with the Program's purposes, without impairing the feasibility of the project;

(6) Agree in writing that all of the dwelling units rehabilitated with the proceeds of a loan shall be occupied by families of limited income until the later of:

(a) The date on which all principal or interest due on the loan is paid; or

(b) 15 years after completion of the rehabilitation;

(7) Agree to abide by the requirements of Titles VI and VII of the Civil Rights Act of 1964, and Title VIII of the Civil Rights Act of 1968;

(8) Agree to abide by all provisions of the Governor's Code of Fair Practices, COMAR 01.01.1987.20C and COMAR 01.01.1988.05C, as amended from time to time;

(9) Provide satisfactory assurances that the borrower did not, within 12 months before making application for a loan under these regulations, cause a residential tenant to leave the building to be rehabilitated, except upon good cause;

(10) Agree in writing to assist with relocation of tenants to the extent required by the Department; and

(11) Agree to abide by any regulations promulgated by the Department implementing the Governor's Executive Order 01.01.1989.18C, as amended from time to time, requiring recipients of State funds to maintain a workplace free of drug and alcohol abuse.

D. Borrowers shall be in good standing and may not be under suspension or debarment from any of the Department's programs pursuant to any action under COMAR 05.01.05.

(Regulations .04A, C amended effective June 16, 1978 (5:12 Md. R. 965)
Regulations .04A amended effective March 23, 1979 (6:6 Md. R. 509)
Regulations .04C amended effective October 5, 1979 (6:20 Md. R. 1627)
Regulation .04 amended effective February 11, 1985 (12:3 Md. R. 243)
Regulations .04 adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations .04 amended effective November 9, 1992 (19:22 Md. R. 1986)
Regulation .04B amended effective February 22, 1999 (26:4 Md. R. 272))
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