Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 04 - SPECIAL LOAN PROGRAMS › Chapter 05.04.12 - Construction Loan Program › Section 05.04.12.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. The terms appearing in the Act have the meanings defined there and, in addition, the meanings used in these Regulations.
B. Terms Defined.
(1) "Act" means Housing and Community Development Article, Title 4, Subtitle 2, inclusive, Annotated Code of Maryland, as amended.
(2) "Administration" means the Community Development Administration, an agency in the Division of Development Finance of the Department of Housing and Community Development.
(3) "Applicable codes and standards" means construction, health, safety, fire, occupancy, and other codes and standards in force in the political subdivision in which an eligible building is located and which are applicable to that building or to the construction of that building. If these codes and standards do not exist or are deemed by the Secretary to be insufficient to promote the purpose of the program, then the codes and standards prescribed in COMAR 05.04.02 shall apply to rehabilitation projects and the Model Performance Code set forth in COMAR 05.02.01.03C shall apply to new construction projects.
(4) "Closing costs" means:
(a) Financing costs such as the credit report fee, survey fee, title examination, loan origination fee, title insurance fee, and application fee;
(b) Title fees such as the attorney's fee, documentation and preparation fee, recording fee, State and local transfer tax, and documentary stamps; and
(c) Prepaid expenses such as taxes, ground rent, hazard insurance, and any mortgage insurance premiums to be paid at closing.
(5) "Contract" means the written agreement between the sponsor and a licensed general contractor for the performance of work to be financed in whole or in part by the loan.
(6) "Department" means the Department of Housing and Community Development, a principal department of the State of Maryland.
(7) "Director" means the Director of the Administration.
(8) "Family of limited income" means an individual or family whose income does not exceed the income limits established by the Secretary for the program from time to time in accordance with Housing and Community Development Article, §
										4-218, Annotated Code of Maryland.
(9) "Family of very limited income" means an individual or family whose income does not exceed the income limits established by the Secretary for the program from time to time in accordance with Housing and Community Development Article, §
										4-218, Annotated Code of Maryland.
(10) "Homeownership property" means any residential property containing one self-contained unit which is the principal year-round residence of the owner and which may be a condominium, townhouse, or single family residence.
(11) "Housing Finance Review Committee" means the Housing Finance Review Committee established pursuant to Housing and Community Development Article, §
										4-208, Annotated Code of Maryland.
(12) "Land bank" means land or interests in land which have been or are to be acquired by a local government and which are being or will be held for future development of housing for families of limited and very limited incomes.
(13) "Local government" means any municipal corporation in Maryland subject to the provisions of Article XI-E of the Constitution, the Mayor and City Council of Baltimore, and any of the 23 counties in Maryland. "Local government" may include any board, commission, agency, department, or authority of any municipal corporation or county designated by its chief executive officer to carry out the rehabilitation or construction of housing.
(14) "Modular or manufactured home" means a structure transportable in one or more sections which:
(a) In the traveling mode is 8 body feet or more in width and 40 body feet or more in length and, when erected on site, is 320 or more square feet;
(b) Is built on a permanent chassis which is permanently fixed to real property, or will be permanently fixed upon completion of the work financed by the loan;
(c) Is designed to be used as a dwelling; and
(d) Includes self-contained plumbing, heating, air conditioning, and electrical systems.
(15) "Mortgage" means a written instrument including a deed of trust evidencing or creating a lien against real property for the purpose of providing collateral to secure the repayment of a debt.
(16) "Nonprofit organization" means a corporation, partnership, joint venture, foundation, or other legal entity, a part of the net earnings of which does not inure to the benefit of any private shareholder or individual holding any form of interest in the entity.
(17) "Plans and specifications" means the drawings and written listing of all materials used in, or a detailed work write-up which describes, the structural, mechanical, electrical, and other work items for the construction or rehabilitation of a project.
(18) "Preconstruction costs" means all development costs, other than the cost of acquiring the property, incurred before the start of construction, reconstruction, or rehabilitation.
(19) "Program" means the Construction Loan Program.
(20) "Program Director" means the Director of the Program as assigned by the Administration.
(21) "Project" means any undertaking or project, or portion of it, including land, buildings, and improvements, and which otherwise constitutes a community development project as defined in the Act. "Project" includes a scattered site project.
(22) "Rental property" means any residential property containing one or more dwelling units which are occupied by families other than the owner.
(23) "Secretary" means the Secretary of Housing and Community Development.
(24) "Sponsor" means a nonprofit organization, local government, individual, corporation, or partnership which receives a loan to acquire, rehabilitate, or construct a project.