MD. Financial Institutions Code Ann. §  13-802 (2021)
2021 Maryland Statutes|Financial Institutions|Title 13 - State-Operated Financial Programs|Subtitle 8 - Allocation of Private Activity Bond Authority|Section 13-802 - Allocation of State Ceiling

    The Maryland State ceiling shall be initially allocated for the period from the first day of each calendar year through September 30 of the same year, as follows:        (1)    (i)    There is allocated to the counties a total of 50 percent of the Maryland State ceiling, consisting of 35 percent of the Maryland State ceiling designated initially for the issuance of housing bonds and 15 percent of the Maryland State ceiling designated for the issuance of bonds other than housing bonds.            (ii)    The allocation to each county for housing bonds shall equal 35 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which is the population of the county and the denominator of which is the population of the State of Maryland.            (iii)    The allocation to each county for bonds other than housing bonds shall be composed of:                1.    A minimum allocation equal to 12 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which is the population of the county and the denominator of which is the population of the State of Maryland; and                2.    A bonus allocation equal to 3 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which shall be the average issuance of bonds other than housing bonds by the county for the immediately preceding 3 calendar years, and the denominator of which shall be the average issuance of bonds other than housing bonds by all counties for the immediately preceding 3 calendar years.            (iv)    Any county may redesignate any portion of its housing bond allocation for the issuance of any other bonds for which an allocation is required under the Code if such redesignation is approved by the mayor, county executive, or board of county commissioners. Any transfer by a county of any portion of its housing bond allocation under this subtitle shall be conditioned upon its use by the transferee for housing bonds.            (v)    No portion of the allocation to each county for other than housing bonds may be used for the issuance of housing bonds.        (2)    (i)    There is allocated to the Secretary for reallocation to municipalities 2.5 percent of the Maryland State ceiling. The Secretary shall process requests for allocations to municipalities in the order in which completed requests are received by the Secretary.            (ii)    A completed request from a municipality shall include:                1.    Evidence that the municipality has complied with the requirements for public notice, public hearing, and public approval established by the Code;                2.    A copy of a letter from bond counsel for such proposed issue to the effect that an allocation would be necessary in order to issue such bonds as tax exempt under the Code; and                3.    Any other information as the Secretary may require.            (iii)    Any reservation of allocation pursuant to this paragraph shall remain effective until the earlier to occur of:                1.    Receipt of notice to the Secretary from the municipality withdrawing its request for an allocation;                2.    The end of the 60th calendar day following the date on which the reservation was made without the bonds having been issued, except that the Secretary, for good cause shown, may extend the expiration date for any such reservation of allocation; and                3.    September 30 of the calendar year in which the reservation was issued without the bonds having been issued by such date.            (iv)    Upon the issuance of any bonds pursuant to a reservation of allocation which remains effective on the date of such issuance, the reservation shall automatically convert to an allocation under this section.        (3)    There is allocated to the Community Development Administration 25 percent of the Maryland State ceiling for the issuance of housing bonds.        (4)    (i)    There is allocated to the Secretary for the Secretary’s reserve 22.5 percent of the Maryland State ceiling for use in accordance with this paragraph. The Secretary may at any time make any allocation of a portion of the Secretary’s reserve to any State issuer or local issuer in any amount and in any order that the Secretary, in the Secretary’s sole discretion, may determine will advance one or more of the goals described in subparagraph (iii) of this paragraph.            (ii)    In making allocations from the Secretary’s reserve, preference shall be given to projects of State issuers that advance one or more of the goals described in subparagraph (iii) of this paragraph.            (iii)    The goals to be advanced by the issuance of bonds requiring allocations under this paragraph are:                1.    Increasing the supply, quality, and geographic distribution of housing for low–income persons;                2.    Expanding opportunities for homeownership;                3.    Creating significant job opportunities;                4.    Locating job–creating facilities in enterprise zones or areas of high unemployment, urban redevelopment, or planned unit development;                5.    Reducing, recycling, or treating solid or hazardous wastes;                6.    Assisting in the expansion or modernization of existing Maryland industry and the attraction of new and diverse firms to Maryland;                7.    Promoting the health, safety, education, or welfare of the citizens of Maryland; and                8.    Providing opportunities for minority business enterprise as borrower, lessee, or contractor or subcontractor for construction, services, or supplies.            (iv)    Any application to the Secretary for an allocation from the Secretary’s reserve shall describe how the project to be funded by the issuance of the bonds would advance one or more of the goals described in subparagraph (iii) of this paragraph and shall include such other information as the Secretary may require. In processing applications for allocations and in reserving allocations, the Secretary may give a preference for projects that demonstrate readiness to proceed.            (v)    Upon the issuance of any bonds pursuant to a reservation of allocation under this paragraph which remains effective on the date of such issuance, such reservation shall automatically convert to an allocation pursuant to this section.            (vi)    Except in the case of allocations to municipalities under paragraph (2) of this section, the Secretary may require any local issuer, other than a county, to submit a request for an allocation of the Maryland State ceiling to or through a county.