Current through Register Vol. 51, No. 6, March 22, 2024
A. Except as provided in §G of this regulation, loans shall comply with §§B-F of this regulation.
B. Applicable Codes and Standards.
(1) The goal of the Program is to assure that all properties rehabilitated under the Program meet health, safety, fire, occupancy, and other codes and standards in force in the political subdivision in which an eligible building is located and applicable to that building.
(2) If these codes and standards do not exist or are considered by the Secretary to be insufficient to promote the purpose of the Act, then the codes and rehabilitation standards prescribed in COMAR 05.04.02 shall be in force for the purposes of the Program.
C. Eligible Rehabilitation Work. Eligible rehabilitation work includes work done to address the following:
(1) Health and safety violations, including structural defects;
(2) Major system deficiencies;
(3) Exterior deficiencies;
(4) Interior deficiencies;
(5) Weatherization and energy conservation;
(6) Handicapped modifications; or
(7) Creation of accessory dwelling units, if the habitable floor area of the unit created does not exceed a percentage acceptable to the Department of the habitable floor area of the existing property to which the unit is added.
D. Eligible Work-General Property Improvements.
(1) General property improvements may:
(a) Only be financed under the Program if the loan for the general property improvement is made in:
(i) Connection with a loan to bring a building into conformance with the applicable codes and standards as set forth in §B of this regulation; and
(ii) Accordance with the restrictions in §D(2) and (3) of this regulation;
(b) Not exceed 40 percent of the total loan amount;
(c) Not be funded with the proceeds of deferred payment loans;
(d) Include, but are not limited to:
(i) Additions, provided the addition does not exceed 240 square feet, exclusive of passageways and bathrooms;
(ii) Alterations and remodeling;
(iii) Enlargement of rooms;
(iv) The finishing of spaces within the building such as an attic, porch, or basement;
(v) Remodeling kitchens, including the purchase and permanent installation of appliances; and
(vi) Fences and landscaping.
(2) A loan may not provide for materials, fixtures, equipment, or landscaping of a type or quality which exceeds that customarily used in the locality for buildings of the same general type as the one being rehabilitated.
(3) Unapproved or untested materials and systems are not eligible costs except when they are used as part of a demonstration or pilot program approved by the Department.
E. Water Supply and Sewage. A loan may not be approved unless safe, sanitary, and adequate water supply and sewage disposal are available or will be provided through the rehabilitation financed by the loan.
F. Code Enforcement. Any action taken by the Department or the local administrator to prepare or review work write-ups, evaluate the property, or review and approve plans and specifications is to ensure the Department and the local administrator of the adequacy of the proposed work. These actions are not intended to substitute for or ensure compliance with appropriate State and local building codes. Compliance with applicable codes and obtaining required permits and licenses are the responsibility of the borrower and contractor.
G. If the owner is elderly or disabled and resides in the building, and the improvements make the building more accessible to or functional for the elderly or disabled owner, then the building shall be structurally sound and free of health and safety hazards, whether or not applicable codes and rehabilitation requirements are met.
