Code of Maryland Regulations
Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Subtitle 04 - SPECIAL LOAN PROGRAMS
Chapter 05.04.06 - Lead Hazard Reduction Grant and Loan Program
Section 05.04.06.06 - Loan Terms and Requirements - General
Current through Register Vol. 51, No. 6, March 22, 2024
A. Interest Rate.
B. Maximum Loan Amount. Except for deferred payment loans in Regulation .07 of this chapter, loans for residential buildings and child care centers may not exceed an amount which, when added to any prior debts secured by the property, would equal 100 percent of the market value of the building and property after rehabilitation, in the estimation of the Department or the local administrator, as applicable.
C. Term. The term of a loan may not exceed 30 years from the date of completion of the lead hazard reduction work and shall be based upon the amount of the loan, expected economic life of the rehabilitated building, and the borrower's ability to repay.
D. Periodic Payment. Except for deferred payment loans described in Regulation .07 of this chapter, loans shall be repaid on a periodic basis, with payments applied first to expenses when applicable, then to interest, and then to principal.
E. Late Charges. Late charges may be imposed as permitted by law.
F. Insurance.
G. Appraisals. At the discretion of the Program Director or the local administrator, a borrower may be required to obtain an appraisal in a form and manner acceptable to the Department from an acceptable independent fee appraiser showing the building's value before and after the proposed rehabilitation.
H. Loan Administration Fee. The Department or the local administrator may charge a loan administration fee in an amount acceptable to the Department.
I. Change of Ownership. A borrower may not sell, cease to own, assign, transfer, dispose of, or lease all or any part of the property during the loan term, without the prior written consent of the Department, except as permitted by federal law.
J. Default. Remedies upon loan default shall be exercised in the discretion of the Department and may be one or more of the remedies provided in the loan documents or by law, such as: