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
05.04.01.05 - Eligible Uses

Universal Citation: MD Code Reg 05.04.01.05

05.04.01.05. Eligible Uses

A. Buildings shall meet the following requirements:

(1) Be located within the State;

(2) Contain not more than four residential units or shared living unit facilities for more than four households;

(3) Be properly zoned for the proposed use;

(4) Be in need of repairs or modifications considered eligible under this chapter;

(5) Have the potential to be rehabilitated, reconstructed, renovated, redeveloped, improved, or modified as determined by the local administrator;

(6) Be owned by an eligible borrower who shall provide assurance of title or evidence of ownership acceptable to the Department; and

(7) If the building is in the 100-year flood plain, as designated by the U.S. Department of Housing and Urban Development, be covered by a flood plain insurance policy which:

(a) Is an amount equal to the loan,

(b) Names the Department as beneficiary, and

(c) Provides that the policy may not be terminated without prior notification to the Department.

B. A manufactured housing unit is eligible if it is intended for residential use by a single household, and:

(1) Is a multisectional structure fabricated after June 14, 1976, in an off-site manufacturing facility for installation or assembly at the building site;

(2) Is not less than 24 feet in width and 40 feet in length;

(3) Is not independently capable of movement and is installed permanently on an engineered foundation in conformance with COMAR 05.02.04;

(4) Has brick, wood, aluminum, or cosmetically equivalent exterior siding and a pitched composition shingle or wood shake roof;

(5) Is certified by the:

(a) United States Department of Housing and Urban Development as a manufactured home in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, or by the Department as an industrialized building in accordance with Public Safety Article, ยง 12-308, Annotated Code of Maryland, and

(b) Complies with all requirements set forth in COMAR 05.02.04;

(6) Is installed on real property the occupant owns in fee simple or under a freely transferable ground rent lease, and the legal title to the improvements runs with the real property;

(7) Meets all applicable zoning requirements as to number of dwelling units, lot size, and building setbacks;

(8) Is reasonably expected to have an economic life equal to or greater than the term of the mortgage.

C. Manufactured homes which are taxed as personal property may be eligible for loans in amounts of $5,000 or less. Applications for manufactured homes shall be reviewed and approved by the Department on a case-by-case basis.

D. Condominiums and cooperative units may be eligible buildings and shall be reviewed by the Department on a case-by-case basis before loan approval.

E. Other types of property are not eligible buildings.

F. All of the dwelling units in sponsor-owned or nonprofit sponsor-owned residential properties shall be occupied upon completion by families of limited income until the later of the date:

(1) On which the payment of all principal and any interest on the loan is made; or

(2) 15 years after completion of rehabilitation.

(Regulation .05C adopted effective June 16, 1978 (5:12 Md. R. 965)
Regulation .05D amended effective April 22, 1985 (12:8 Md. R. 800)
Regulations .05B, amended effective June 16, 1978 (5:12 Md. R. 965)
Regulations .05B, amended effective March 23, 1979 (6:6 Md. R. 509)
Regulations .05B, amended effective October 5, 1979 (6:20 Md. R. 1627)
Regulation .05B, C, E amended effective February 11, 1985 (12:3 Md. R. 243)
Regulations .05 adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations .05 amended effective November 9, 1992 (19:22 Md. R. 1986)
Regulation .05A amended effective January 2, 1994 (20:25 Md. R. 1941); February 22, 1999 (26:4 Md. R. 272); April 5, 1999 (26:7 Md. R. 537))
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