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 05.05.02.08 - Application Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application. Applications for loans are to be made on forms prescribed by the Administration, and shall include all supporting documentation required by the Administration.
B. Review of Applications. Each application shall be subject to an initial review to make a preliminary assessment of the eligibility of the sponsor and the project in accordance with Regulations .03 and .04 and in accordance with the Program Guide. The Administration shall notify the sponsor in writing upon completion of its assessment of eligibility.
C. Rejection of Applications. If the Administration determines that a project or sponsor is not eligible for a loan, the Administration shall issue a written notice of the determination of ineligibility.
D. Commitment for Insurance. Before issuing a commitment for a loan, the Administration shall receive a commitment from the appropriate mortgage insurer for approval for mortgage insurance, as may be required by Regulation .06D of this chapter.
E. Commitment.
(1) Upon satisfaction of all the requirements and receipt of an approval or commitment from a credit enhancer, if required, the Administration may undertake a commitment analysis of each loan as to final loan amount, structure, and terms.
(2) Except in the case of an emergency when urgent action is required, the Director of the Administration shall submit all loans above a minimum amount, determined by the Housing Finance Review Committee established under Housing and Community Development Article, §
										4-208, Annotated Code of Maryland, to the Committee for review and recommendation to the Secretary for approval or disapproval of the loan and the terms of the loan. At the discretion of the Administration, loans in an amount below the minimum amount established by the Housing Finance Review Committee need not be submitted to the Committee for review and recommendation. The Secretary, in accordance with Regulation. 16E of this chapter, may delegate the review and approval of these loans.
(3) After receipt of a recommendation of the Housing Finance Review Committee, the Secretary may approve or disapprove the loan and the terms of the loan. In an emergency, when urgent action is required or for loans below the minimum amount established by the Housing Finance Review Committee, the Secretary may approve a loan without the recommendation of the Committee.
(4) The Secretary shall execute a written determination that each loan is for a community development project, energy conservation project, solar energy project, public purpose project, or home improvement project authorized by the Act, before the issuance of a commitment to make, purchase, or finance a loan or purchase a security backed by a loan.
(5) Upon approval of a loan and execution of a determination, the Administration shall issue a commitment letter setting forth:
(a) The interest rate on the loan;
(b) The repayment provisions; and
(c) Other terms and conditions that the Administration considers appropriate for the loan or the project.
(6) The Administration will specify a time limit within which the initial closing of the loan shall occur, which time limit may be extended in the Administration's sole discretion. If initial closing does not occur within the time limit specified by the Administration, the Administration may use the monies committed for the loan for any other loan or purpose authorized by the Act.