Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.02 - Multifamily Bond Program › Section 05.05.02.04 - Eligible Projects

Current through Register Vol. 51, No. 14, July 12, 2024
A. To qualify as an eligible project for a loan, the project shall meet the following requirements:
(1) The project shall provide rental units used primarily for year-round residential use;
(2) If the project is a:
(a) Community development or home improvement project, it shall be constructed or rehabilitated for use as rental housing,
(b) Solar energy or energy conservation project, it shall be rental housing in need of property or energy conservation improvements to improve its habitability, liveability, and energy efficiency, or
(c) Public purpose project, more than half of the project shall be constructed or rehabilitated for use as housing to be occupied in whole or part by families of limited income, unless the Secretary determines in writing that a smaller portion of housing and a greater proportion of public or private facilities such as streets, roads, sewer and water lines, and other public or private facilities intended for commercial, educational, cultural, recreational, community or other civic purpose will promote sound community development;
(3) The project shall be owned by an eligible sponsor;
(4) The Secretary shall have issued a determination that the improvements constitute a community development project, public purpose project, energy conservation project, solar energy project, or home improvement project within the meaning of the Act;
(5) The project shall comply, if necessary, with the notice, public hearing, and public approval requirements of the applicable Internal Revenue Code;
(6) The project shall conform to the statutory definitions and criteria for a community development project, public purpose project, home improvement project, solar energy project, or energy conservation project;
(7) If the project is a public purpose project, it either shall be:
(a) Qualified for federal low income housing tax credits, or
(b) Located in a distressed area designated by the Secretary in accordance with Regulation .09 of this chapter;
(8) The sponsor is capable of and can be expected to achieve successful completion of the project;
(9) Other than construction financed by the proceeds of revenue bonds issued on behalf of a county, the project shall be eligible only if:
(a) The Department has complied with COMAR 05.01.06.06, and
(b) The Secretary has issued the written determination required under COMAR 05.01.06.07;
(10) The project conforms or will conform to all applicable State and local laws, codes, and regulations, including zoning, building, and housing regulations;
(11) The project is economically feasible so that the loan reasonably can be expected to be repaid in full on such terms and conditions as determined by the Administration;
(12) The project has a useful life of a length satisfactory to the Administration with reasonable maintenance;
(13) The project promotes the purposes of the Act and these regulations; and
(14) The project is located within a priority funding area identified under State Finance and Procurement Article, § 5-7 B-02, Annotated Code of Maryland, unless, for existing construction, the Secretary determines in the Secretary's sole discretion that the project is necessary to:
(a) Protect public safety or health;
(b) Alleviate personal economic hardship in an emergency situation;
(c) Promote economically integrated housing;
(d) Avoid a conflict with federal law; or
(e) Relieve an inequity or carry out the purposes of the Program, consistent with the purposes of State Finance and Procurement Article, Title 5, Subtitle 7B, Annotated Code of Maryland.