Code of Maryland Regulations
Chapter 05.04.01 - Maryland Housing Rehabilitation Program - Regular Rehabilitation Program - Loan Application

Universal Citation: MD Code Reg Loan Application

A. Application Procedure Generally. The Department shall establish application processes and procedures for local administrators that will facilitate the application process and best serve the needs of the political subdivisions and the State. These procedures may be amended from time to time and shall be binding upon all applicants. Alternative procedures may not be used by local administrators without the prior approval of the Department.

B. Application Forms. Loan applications shall be made upon standard forms prescribed by the Department.

C. Application Fee. Upon submission of a loan application, an applicant may be required to pay an application fee in an amount determined by the local administrator, subject to approval by the Department.

D. Documentation.

(1) An applicant shall submit with the application any documentation that the Department requires, including, but not limited to, any documentation needed to establish the eligibility and creditworthiness of the applicant.

(2) An applicant shall submit supporting documentation specified in the checklist attached to the application, which may include any of the following:

(a) A copy of the deed to the property;

(b) Copies of any existing mortgages secured by the building to be rehabilitated, or mortgage verification requests, on the form approved by the Department, signed by the applicant for each mortgage secured by the building to be rehabilitated;

(c) A copy of the first page and declarations page of all policies for fire and extended coverage insurance and, if applicable, flood insurance;

(d) A copy of the most recent real estate tax bill with the current assessed value;

(e) Verification of the total assets and annual income of each person in the household of a single-family owner-occupant applicant, and for sponsor applicants or nonprofit sponsors, a list of tenants in a building showing household name, address, number of persons in household, combined annual household income, and current monthly rent;

(f) For each of the immediately preceding 2 years, copies of the applicant's:

(i) Federal income tax returns, or when applicable, the federal reporting forms for nonprofit organizations,

(ii) State income tax returns, or

(iii) A signed request, on the form designated by the Department, for copies of the applicant's state income tax returns; and

(g) Sufficient information and documentation to determine the extent, if any, to which the project will change the type of use or increase the intensity of the existing use of the property.

(3) In addition, all sponsor and nonprofit sponsor applicants shall submit the following documentation:

(a) Organizational documents of the sponsor or nonprofit sponsor and a certificate of good standing;

(b) A certified personal financial statement of the applicant or principals of the sponsor or nonprofit sponsor;

(c) Three years operating statements for a rental project;

(d) For sponsors or nonprofit sponsors which are corporations, a resolution of the board of directors authorizing the application;

(e) For rental projects receiving federal Section 8 Housing Assistance, copies of the Section 8 contracts or feasibility analysis prepared by the administering agency, as applicable;

(f) Photographs of the building and site;

(g) Evidence of zoning compliance;

(h) Preliminary plans and specifications or a detailed description of the proposed improvements and an estimate of the improvement costs.

(Regulations .09 amended effective February 11, 1985 (12:3 Md. R. 243)
Regulations .09 adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations .09A amended effective June 16, 1978 (5:12 Md. R. 965)
Regulations .09A, F amended effective March 23, 1979 (6:6 Md. R. 509)
Regulations .09 amended effective November 9, 1992 (19:22 Md. R. 1986)
Regulation .09D amended effective January 2, 1994 (20:25 Md. R. 1941); February 22, 1999 (26:4 Md. R. 272))
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