Code of Maryland Regulations
Chapter 05.04.10 - Home and Energy Loan Program - Eligible Improvements

Universal Citation: MD Code Reg Eligible Improvements

A. Proceeds of property improvement loans may finance any improvement, alteration, addition, and repair that substantially protects or improves the basic livability of a residential property and that is eligible for financing under the regulations and requirements of any loan insurer. Eligible home improvements include without limitation the following:

(1) Enlarging structure;

(2) Repairing or replacing plumbing and electrical systems;

(3) Improving or replacing heating systems;

(4) Painting and plastering;

(5) Installing new bathrooms, kitchens, living rooms, bedrooms, and closets;

(6) Repairing or replacing roofs, ceilings, windows, stairways, and floors;

(7) Constructing private sidewalks, curbs, fences, or driveways;

(8) Installing a septic tank or cesspool;

(9) Drilling a well and installing pumping equipment and piping;

(10) Installing fire safety equipment; and

(11) Making any other improvements determined by the Administration to be consistent with the purpose of the program and the Act.

B. Proceeds of energy loans may finance energy conservation or solar energy improvements that reduce the consumption of energy or increase the use of solar energy, including without limitation the following:

(1) Caulking;

(2) Weatherstripping;

(3) Insulation, including ceilings, walls, floors, ducts, pipes, or water heaters;

(4) Furnace efficiency modifications, including replacement burner, furnace or boiler, vent dampers, or intermittent pilot ignition device;

(5) Replacement air conditioner;

(6) Storm or thermal doors or windows;

(7) Siding;

(8) Heat reflecting and absorbing door or window materials;

(9) Devices associated with electric load management techniques;

(10) Clock thermostats;

(11) Automatic energy control system;

(12) Machinery, equipment, or a facility for using ground water as a heat source for a heating system or as a heat sink for an air-conditioning system;

(13) Any other improvement bearing a manufacturer's certification that the product has energy conserving properties or any improvement that the Administration determines provides energy savings with a pay-back within the term of the loan;

(14) Solar domestic hot water systems;

(15) Active or passive solar space heating systems;

(16) Additions, alterations, or improvements designed to use wind energy, energy produced by a wood burning appliance, or solar energy to reduce the energy requirements of the building;

(17) Earth sheltering in which the sheltering substantially reduces the consumption of energy by the building;

(18) Heating systems or appliances using renewable sources of energy;

(19) Planning and technical services, an energy audit, and conversion from master utility meters to individual utility meters, any of which are related to or undertaken with the installation of any of the energy conservation or solar energy improvements described above;

(20) Roof replacement to reduce energy loss caused by defective roofing materials where the replacement includes the installation of adequate attic or ceiling insulation;

(21) Other energy conservation projects or solar energy projects within the meaning of the Act;

(22) Other improvements determined by the Administration with the approval of the Secretary to conserve energy and to be consistent with the purposes of the Program and the Act.

C. Installation of fireplaces, except as integral parts of a system that is designed to use solar energy, is not eligible for financing by an energy loan.

D. Ineligible improvements include such items as barbecue pits, bathhouses, dumbwaiters, fire extinguishers, flower boxes, greenhouses, airplane hangars, kennels, kitchen appliances which are designed and manufactured to be free-standing and are not built-in and permanently affixed as an integral part of the kitchen in a residential structure, outdoor fireplaces or hearths, penthouses, photo murals, radiator covers or enclosures, stands, swimming pools, television antennas, tennis courts, tree surgery, waterproofing of a structure by pumping or injecting any substance in the earth adjacent to or beneath the basement or foundation or floors, entertainment facilities, landscaping, lawn sprinkling systems, saunas, and recreational facilities.

(Regulations .06 adopted as an emergency provision effective June 1, 1983 (10:12 Md. R. 1065); emergency status extended at 10:25 Md. R. 2262
Regulations .06 adopted effective December 5, 1983 (10:24 Md. R. 2184)
Regulation .06B amended effective April 25, 1994 (21:8 Md. R. 671))
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