reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.07 - Eligible Projects

Current through Register Vol. 51, No. 14, July 12, 2024
In order to be eligible for financial assistance under the Program, a project shall demonstrate that it:
A. Is located in a Maryland Appalachian county;
B. Will provide housing for low and moderate income families;
C. Is eligible for financial assistance from a public agency if the project involves planning or site development assistance; and
D. Will be in compliance upon completion with all applicable zoning requirements and standards as well as the applicable building code of the local jurisdiction in which it is located.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.08 - Terms and Conditions of Financial Assistance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Amount of Financial Assistance. The maximum amount of financial assistance under the Program shall be as follows:
(1) Planning assistance may not exceed 50 percent of the total predevelopment costs of a project or such other percentage as may be specified by ARC;
(2) Site development assistance may not exceed the following amounts of such other amounts as may be specified by ARC:
(a) 10 percent of the total project costs for new construction, or
(b) 10 percent of the reasonable costs after rehabilitation value of a rehabilitation project;
(3) Demonstration assistance may not exceed 50 percent of the total cost of a project or such other percentage as may be specified by ARC;
(4) The total amount of federal financial assistance involved in a project may not exceed 80 percent of the total costs of a project.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.09 - Applications and Processing

Current through Register Vol. 51, No. 14, July 12, 2024
A. An application for financial assistance shall be submitted to the Department and shall be made upon standard forms prescribed by the Department. Each application shall contain sufficient information and documentation to determine:
(1) Whether the project is located in a Maryland Appalachian county;
(2) The extent, if any, to which the project will change the type of use or increase the intensity of the existing use of the property;
(3) Whether the project will benefit low and moderate income families;
(4) The rate of return, if any, the sponsor anticipates receiving on a project;
(5) In the case of an application for a planning or site development assistance, whether the project is eligible for financial assistance from a public agency;
(6) The availability or lack of conventional financing for the project; and
(7) Such other information as the Program may request.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.10 - Books and Accounts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Sponsors, contractors, and subcontractors shall maintain such books, accounts, and records and shall file with the Department such financial and other reports as the Department may from time to time require.
B. The books, accounts, and records in §A of this regulation, as well as the administrative personnel, whether full-time or part-time, shall be available to the inspection of representatives of the ARC, the Department, or other agencies of the State during reasonable working hours.
C. Books, accounts, and records of contractors and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between the contractor and the sponsor.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.11 - Fees and Charges

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Department may charge a sponsor an application and administrative fee to cover the costs to the Department involved in processing the financial assistance.
B. A sponsor may withdraw an application at any time before an award of financial assistance by written notice to the Department. The sponsor may be required to bear any costs incurred by the Department for items other than Departmental processing including a nonusage fee.
C. The Department may retain the application and administrative fees paid before the date of withdrawal of an application.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.12 - Nondiscrimination; Drug and Alcohol Free Workplace

Current through Register Vol. 51, No. 14, July 12, 2024
A. A sponsor or contractor may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age as permitted under the federal Housing for Older Persons Act, as amended from time to time, or other similar federal laws, in leasing or otherwise providing dwelling accommodations or in any other aspect of the development, administration, or operation of any project financed or assisted under the Program, or in any aspect of employment by any sponsor or contractor in the construction, repair, or maintenance of any property financed or assisted under the Program.
B. A sponsor or contractor shall comply with all applicable federal, State, and local laws, and Department policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices, and drug and alcohol free workplaces, including:
(1) Titles VI and VII of the Civil Rights Act of 1964, as amended;
(2) Title VIII of the Civil Rights Act of 1968, as amended;
(3) The Fair Housing Amendments Act of 1988, as amended;
(4) The Department's Minority Business Enterprise Program, as amended;
(5) State Government Article, Title 20, Annotated Code of Maryland, as amended;
(6) The Americans with Disabilities Act of 1990, as amended; and
(7) Executive Order 01.01.1989.18, Drug and Alcohol Free Workplace, and any Department or State regulations adopted or to be adopted to carry out the requirements of that Order.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.13 - Drug and Alcohol Policy

Current through Register Vol. 51, No. 14, July 12, 2024
As a condition of receipt of financial assistance from the Program, the Department may require the sponsor to:
A. Adopt and administer a program to promote a drug and alcohol free workplace;
B. Make a good faith effort to ensure that any project it owns, manages, or otherwise retains an interest in shall be free from the illegal use, possession, or distribution of drugs or alcohol by residents or beneficiaries of the project; and
C. Agree to participate in the Families Insisting on Safe Tenancies Program sponsored by the State.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 05 - RENTAL HOUSING PROGRAMS › Chapter 05.05.10 - Maryland Appalachian Housing Program › Section 05.05.10.14 - Waiver

Current through Register Vol. 51, No. 14, July 12, 2024
The Secretary may waive or vary provisions of these regulations to the extent that the waiver or variance is consistent with the Act and the Code and if, in the written determination of the Secretary, the application of the regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act or the Code, or contrary to federal law or regulation.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
A. It is the purpose of the Fund to use creatively its authority to insure mortgages so as to increase the housing opportunities of the residents of the State.
B. More particularly, the Fund promotes the construction and rehabilitation of housing by insuring mortgages to finance multifamily housing funded by any qualified bank, trust company, savings and loan association, national bank association, public agency, insurance company, or other financial institution. This insurance makes these obligations more marketable, and permits them to be sold at more favorable rates than otherwise possible. The qualified public agencies include the Community Development Administration of the Department of Housing and Community Development, which is the State housing finance agency, and may include other public agencies which operate housing finance programs satisfactory to the Fund and which would benefit by Fund insurance.
C. These regulations set forth the policies and procedures for issuance of mortgage insurance by the Maryland Housing Fund to insure multifamily residential property.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. Mortgage loans secured by residential multifamily real property may be insured by the Maryland Housing Fund under its Multifamily Insurance Reserve and these regulations.
B. The Multifamily Insurance Reserve is governed by the Multifamily Insurance Agreement, as may be amended, by and between the Fund and the Community Development Administration.
C. The Multifamily Reserve backs the insurance of multifamily loans under these regulations, and in addition backs the insurance of loans made under the multifamily Home and Energy Loan Program, COMAR 05.04.10, and the Special Housing Opportunity Program, COMAR 05.04.11.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.04 - Reserves

Current through Register Vol. 51, No. 14, July 12, 2024
A. Types of Reserves. Insurance issued by the Fund is backed by an insurance reserve. There currently exist seven separate reserves, one for multifamily insurance, three for single family insurance, one for general use, one for business insurance, and an unallocated reserve for moneys not yet transferred to a specific reserve. More specifically, separate reserve funds have been established to back the following categories of insurance:
(1) Single family regular insurance;
(2) Revitalization program insurance formerly known as pilot program insurance;
(3) Single family home and energy loan insurance;
(4) Multifamily insurance;
(5) General reserve insurance;
(6) Business reserve insurance; and
(7) An unallocated reserve.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.05 - Eligible Projects

Current through Register Vol. 51, No. 14, July 12, 2024
A. General. A multifamily project is eligible for Fund insurance if it:
(1) Is located in Maryland;
(2) When complete, conforms to all applicable federal, State, and local building, health, environmental, historic preservation, and housing codes or regulations;
(3) Is zoned to permit rental housing; and
(4) Secures a loan which is in all respects in conformance with these Regulations.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.06 - Eligible Lenders

Current through Register Vol. 51, No. 14, July 12, 2024
A. General Criteria. Any for-profit or nonprofit entity or public agency may qualify as an eligible lender if, in the determination of the Fund, it:
(1) Makes loans as a substantial function of its operations;
(2) Provides evidence of responsibility, permanency, and financial capacity; and
(3) Has requisite administrative, loan underwriting, loan servicing, and construction loan monitoring capabilities.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.07 - Eligible Borrowers

Current through Register Vol. 51, No. 14, July 12, 2024
A limited partnership, corporation, or public agency may qualify as an eligible borrower if, in the determination of the Fund, it:
A. Owns, at the closing of the loan, the property in fee simple or controls the property under a leasehold interest under a ground lease satisfactory to the Fund having a term not shorter than the term of the insured loan plus 25 years;
B. Has all necessary legal and corporate authority to incur the obligations of the insured loan;
C. Is in good standing and qualified to do business in Maryland;
D. Can establish to the satisfaction of the Fund the:
(1) Financial capacity to complete the development of the project, including the satisfaction of all equity requirements,
(2) Experience, background, and construction capacity to construct the project, including the ability to provide all required guarantees, collateral, and escrows, and
(3) Managerial capacity to operate the project, together with the financial capacity to meet the normal and typical expenses of ownership;
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.09 - Eligible Loans-Maximum Insured Loan

Current through Register Vol. 51, No. 14, July 12, 2024
A. The maximum insurable loan amount that the Fund can insure is 25 percent of the multifamily insurance reserve, unless:
(1) Additional collateral is deposited with the Fund in accordance with §B of this regulation; or
(2) For projects in which the Fund participates in reinsurance, coinsurance, or shared insurance, the Fund's maximum exposure is 25 percent of the multifamily reserve, with adjustments, if any, calculated in accordance with Regulation .15 of this chapter.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.10 - Environmental and Insurance Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Environmental Review.
(1) Each loan to be insured by the Fund shall comply with applicable local, State, and federal environmental laws and Regulations.
(2) A lender may be required, at the discretion of the Fund, to have a borrower conduct a screening of the proposed site for environmental conditions, such as man-made hazards, stormwater runoff, underground storage tanks, lead-based paint, radon gas, PCBs, asbestos, or other environmental hazards within the meaning of the environmental laws referred to in this section.
(3) If the initial screening indicates adverse or potentially adverse environmental conditions, the Fund may require a more detailed physical investigation, review of historic records, testing and treatment, or abatement of the environmental condition as a requirement of the mortgage insurance.
(4) The Fund may require the borrower to certify to it that no hazardous environmental conditions are present on the property, in addition to the screening required by this section.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.11 - Valuation

Current through Register Vol. 51, No. 14, July 12, 2024
A. Appraisal Requirement.
(1) The Fund shall, at its option, either obtain, or have the lender obtain, an independent appraisal of any project for which insurance is sought, or require the borrower to submit an appraisal.
(2) Appraisal Report.
(a) The appraisal report shall be prepared by a certified appraiser and submitted by the borrower or an independent appraiser before initial insurance endorsement of a loan. The appraisal shall include the income, cost, and market comparable approaches to valuation.
(b) The Fund may determine in its sole discretion those projects for which an independent appraisal will be required, based upon the risk of insurance loss to the Fund and the project's cost, location, and market.
(c) An independent appraisal may be obtained by the Fund at its expense, but the cost shall be reimbursed to the Fund at the time the loan is endorsed for insurance.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.12 - Special Criteria for Construction Advances

Current through Register Vol. 51, No. 14, July 12, 2024
A. This regulation is applicable to any construction advances under a mortgage insured by the Fund. This regulation applies to all construction advances, and in the case of a conflict between the provisions of this regulation and Regulations .08 ----- .10 of this chapter, the provisions of this regulation shall control.
B. Insurance of Construction Advances. Loans to finance construction of multifamily projects are eligible for the insurance of advances by the Fund if either:
(1) The Fund also insures the permanent loan for the project; or
(2) At the time the construction loan is endorsed for insurance by the Fund:
(a) There is a commitment for a permanent loan for the projects,
(b) Terms and conditions on the commitment are acceptable to the Fund, and
(c) The lender is acceptable to the Fund.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.13 - Insurance Coverage Ratios

Current through Register Vol. 51, No. 14, July 12, 2024
A. Public Agency Lenders. For loans made by public agency lenders to a borrower, the Fund may insure up to 100 percent of the loan amount for an initial premium of 1 percent of the insured loan amount for 12-month coverage. The premium and fee schedule for all insurance is more fully set forth in Regulation .14 of this chapter.
B. Private Lenders.
(1) For loans made by private lenders to nonprofit borrowers, the Fund may insure up to the top 25 percent of the loan amount for an initial premium of 1 percent of the insured loan amount for 12-month coverage, or additional coverage in accordance with §C of this regulation.
(2) For loans made by private lenders to for-profit borrowers, the Fund may insure up to the top 20 percent of the loan amount for an initial premium of 1 percent of the insured loan amount for 12-month coverage, or additional coverage in accordance with §C of this regulation.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.14 - Fees and Premiums

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application Fee.
(1) The sponsor shall pay an application fee equal to the greater of:
(a) 1/10 of 1 percent (0.1 percent) of the loan amount for which insurance is requested; or
(b) $1,000.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.15 - Reinsurance, Coinsurance, and Shared Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Loans insured by the Fund may be reinsured or coinsured, or insurance may be shared by and with public or private mortgage insurers, or through federal guarantees, when available. Portions of risk on any loan insured by the Fund may be assigned to other eligible mortgage insurers on a participating basis. Any reinsurance, coinsurance, or shared insurance shall be made on terms and conditions satisfactory to the Fund.
B. The reinsurer, coinsurer, or shared insurer shall be reputable and financially sound in the judgment of the Fund.
C. The Fund may not retain contingent liability to pay an entire claim in the event of nonpayment of a claim by a reinsurer or coinsurer, except in exceptional circumstances by written determination of the Secretary that a heightened public purpose is served by the retention of the contingent insurance risk.
D. The total of multifamily insurance considered standing for purposes of calculating the leverage ratios permitted may not be decreased by the amount of any reinsurance, coinsurance, or shared insurance with respect to which the Fund retains contingent liability.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.17 - Special Programs under Multifamily Reserves

Current through Register Vol. 51, No. 14, July 12, 2024
A. Community Development Single-Family Projects Insured Under Multifamily Reserves.
(1) The Secretary has authorized an additional plan for community development projects, financed by the Community Development Administration, consisting of single-family or condominium residential units, when a mortgage for the project has been insured by the Fund under the reserve fund designated for the insurance of mortgages insured by multifamily properties.
(2) The Fund may insure 100 percent of a mortgage loan made by the Community Development Administration for a one-family unit, including a condominium unit. The mortgage shall satisfy all requirements of the Fund's single-family regulations under COMAR 05.06.06.
(3) The amount of the loan may not exceed the total sale price of the unit, including extras or options selected by the purchasers, but not including prepaid expenses and closing costs. Initial premium fees shall be based on the ratio of the amount of the mortgage to this sale price.
(4) The fee schedule is:
(a) Initial Loan Ratio-80 percent
Initial Premium-0.25 percent
(b) Initial Loan Ratio-90 percent
Initial Premium-0.50 percent
(c) Initial Loan Ratio-95 percent
Initial Premium-0.75 percent
(d) Initial Loan Ratio-100 percent
Initial Premium-1.00 percent
(e) Annual Renewal (CDA can choose renewal Plan A or B)-Plan A-0.25 percent of balance, Plan B-.24 percent of balance for 9 renewals, then 0.125 percent of loan to maturity.
(5) The multifamily reserve fund, rather than the revitalization program reserve fund, applies to insurance provided under this regulation, and also to any insurance provided for a single-family community development project before November 9, 1977.
(6) The Fund's single-family regulations under COMAR 05.06.06 govern insurance under this regulation, when not inconsistent with this regulation.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.18 - Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Guidelines for underwriting applications for insurance of multifamily loans are those set forth by the Maryland Housing Fund.
B. Application.
(1) Applications for insurance shall:
(a) Be submitted by lenders on forms acceptable to or prescribed by the Fund;
(b) Be accompanied by all supporting documentation specified in the multifamily application checklist and the Fund's operating manual; and
(c) Include sufficient information and documentation to determine the extent, if any, to which the project will change the type of use or increase the intensity of the existing use of the property.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.19 - Claims Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Notification. In the event of a default on an insured loan, the lender shall notify the Fund in writing within 30 days of the default. For insured lenders other than the Community Development Administration, all notices shall be sent by certified mail addressed to the Director.
B. Preclaim Period-----Public Agency Lenders.
(1) The provisions of this section apply to all public agency insured lenders.
(2) During the first 6 months after an insured loan is in default, the insured lender may not assign the insured loan and its rights under the mortgage to the Fund and make a claim for insurance unless it receives the prior written consent of the Fund.
(3) After the insured loan has been in default for 6 months, either the Fund or the insured lender may, without the written consent of the other, require the filing of a claim and the assignment of the insured loan to the Fund.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.20 - Preclaim Payments and Insurance Coverage

Current through Register Vol. 51, No. 14, July 12, 2024
A. Preclaim Payments.
(1) The provisions of this section apply to all public agency insured lenders, and to private insured lenders only at the sole discretion of the Fund.
(2) After receipt of notice of default, the Fund, upon request of an insured lender, shall make the periodic payments to the lender that are due under the terms of the insured mortgage, except late charges and mortgage insurance premiums.
(3) The periodic payments shall be made for all missed debt service payments beginning with the default for which the Fund is given notice in accordance with Regulation .19A of this chapter. The periodic payments shall continue until the default is cured or the insured loan is foreclosed upon by the lender or assigned to the Fund.
(4) If the default is cured, the amount of periodic payments made shall be reimbursed by the lender to the Fund. If the insured loan is foreclosed upon by the lender, the amount of periodic payments shall be excluded from the loss computed to the lender. If the loan is assigned to the Fund, the amount of periodic payments shall be included in the claim paid by the Fund in accordance with Regulation .21C(4) of this chapter.
(5) If the Fund makes periodic payments under this section, then it shall be considered to obtain from the lender the right to recover from the property or the borrower, as may be permitted under the loan documents, the total of all periodic payments plus that amount which equals the mortgage insurance premiums not paid to the Fund by the lender on behalf of the borrower. This right of recovery of payments is additional to and cumulative with all other rights arising from an assignment of an insured mortgage to the Fund.
(6) Periodic payments made to the lender by the Fund may not be considered a remedy of the borrower's default under the terms of the insured loan or any collateral agreements.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.21 - Claims Payment

Current through Register Vol. 51, No. 14, July 12, 2024
A. Claims Payment-----General. The Fund shall pay the claims of the lender with interest at the interest rate of the loan from the date the claim is submitted until the date the claim is paid. Claims shall be paid in cash under §C of this regulation or by delivery of a promissory claim note in accordance with §D of this regulation.
B. Claims Payment Without Assignment to the Fund.
(1) If the project is foreclosed upon by the insured lender, the amount of the claim to be paid by the Fund shall be calculated after the project is sold at foreclosure sale, as follows:
(a) If, at the foreclosure sale, the property is sold to a third party purchaser, the Fund shall pay to the insured lender the net loss after crediting gross proceeds of the sale;
(b) If the insured lender takes title to the property at the foreclosure sale, the Fund shall continue to direct the insured lender in its disposition of the property, and, in calculating the loss, the Fund may elect either to:
(i) Take title to the property and pay the full loss to the insured lender, or
(ii) After sale or disposition of the property by the insured lender, pay the net loss after crediting gross proceeds of the disposition.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.22 - Partial Claims

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Fund may accept and make payment on a partial claim if all of the following conditions are satisfied:
(1) The lender requests approval to file a partial claim;
(2) At the time the claim is paid the:
(a) Partial claim payment is applied by the lender to reduce the unamortized principal balance of the insured loan, or
(b) Fund receives collateral of the type described in Regulation .09B of this chapter in an amount equal to the partial claim payment;
(3) The loan balance remaining on the insured loan after application of the partial claim payment can be amortized over its remaining term of years on terms that are feasible and the loan will otherwise conform to the initial insurance requirements of these regulations;
(4) Payment of the partial claim will cure the default and the lender will withdraw the notice of default issued; and
(5) The borrower shall give a promissory note to the Fund, secured by a subordinate lien on the project for the full amount of the partial claim payment, that provides for repayment to the Fund over the remaining term of the insured loan or from a sale or refinancing of the project, at an interest rate not less than the rate on the insured loan or on terms otherwise acceptable to the Fund.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.23 - Insurance Termination

Current through Register Vol. 51, No. 14, July 12, 2024
A. Maryland Housing Fund insurance coverage shall be terminated if:
(1) The lender requests cancellation;
(2) A claim is satisfied by the Fund; or
(3) The loan is paid in full.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.01 - Maryland Housing Fund-Multifamily Program › Section 05.06.01.24 - General Provisions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Lender Assignments.
(1) Insured loans may not be assigned to another lender without prior written notice to and approval of the Fund. A request for assignment of an insured loan shall be accompanied by submission of an application fee and supporting documentation as may be required by the Fund.
(2) Servicing of insured loans may not be transferred by the insured lender to another servicer without prior written notice to and approval of the Fund.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.01 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
The Fund may provide limited insurance for bridge loans that provide interim financing until equity capital contributions are made by investors when the Fund expects a rental housing project to qualify for federal tax credits. The Fund may insure these bridge loans under this chapter instead of COMAR 05.06.01, except as provided in Regulation .14 of this chapter.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of Maryland.
(2) "Borrower" means the original borrower under a loan and the borrower's successors and assigns by operation of law or as approved by the Fund.
(3) "Bridge loan" means a loan to provide interim financing until equity capital contributions are made by investors in a project that qualifies for federal low income housing tax credits.
(4) "Construction risk" means the risk that a borrower will be unable to complete construction or rehabilitation of a project in the time anticipated at closing of the bridge loan.
(5) "Default" means the failure of the borrower to:
(a) Make required payments under the loan when due; or
(b) Perform any other obligation under the loan after the notice, lapse of time, and opportunity to correct, if any, which may be provided in the loan.
(6) "Fund (MHF)" means the Maryland Housing Fund, an agency within the Division of Credit Assurance, and, when appropriate, its authorized officers or personnel.
(7) "Initial rent-up" means that period before the number of units required to qualify for low-income housing credits is rented.
(8) "Insurance Agreement" means the Amended and Restated Multi-Family Insurance Agreement governing insurance of multi-family rental housing developments by the Fund dated August 30, 1988, as amended and restated on February 16, 2006, by and between the Fund and the Community Development Administration.
(9) "Investor" means an individual or an entity that makes an equity capital contribution to the borrower in exchange for a limited partnership or nonmanaging member interest in the borrower.
(10) Mortgage.
(a) "Mortgage" means a written instrument evidencing or creating a lien against real property for the purpose of providing collateral to secure the repayment of a debt.
(b) "Mortgage" includes a deed of trust.
(11) "Mortgagee" means the original lender under a loan and its successors and assigns.
(12) "Multi-family reserve" shall have the meaning ascribed to that term in the Insurance Agreement.
(13) "Operating fund" means the net amount of money or securities on deposit to the credit of the Fund with the State Treasurer and not allocated to any of the Fund's reserve funds.
(14) "Project" means a development of one or more structures containing residential units and which may include ancillary commercial, service, and social facilities, and the real property upon which the development is situated.
(15) "Secretary" means the Secretary of Housing and Community Development.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.04 - Amount of Insured Loan

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as provided in §B of this regulation, the insured amount of the bridge loan, when added to the amount of any superior liens on the project, may not exceed 95 percent of the project's appraised value as of completion of the improvements, taking into consideration the value of the tax credits.
B. The insured amount of the bridge loan may exceed the limit set forth in §A of this regulation if 100 percent of the tax credit units in the project are subsidized as to rental payments by the United States Department of Housing and Urban Development for the term of the bridge loan.
C. The insured amount of the bridge loan may not exceed the amount of the investor's capital contributions.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.05 - Permitted Uses of Insured Loan Proceeds

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Fund may insure bridge loans only if the loan proceeds are used for acquisition, construction, or rehabilitation and directly related soft costs, including developer fees, syndication fees, and an amount to cover a reasonable profit for the developer, required to complete the project.
B. If the bridge loan is made from the proceeds of tax-exempt bonds, or other obligations on which the interest is excluded from gross income for federal income tax purposes, the bridge loan may only be used for costs approved by the Department's bond counsel.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.06 - Term of Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Fund may insure a bridge loan having a term longer than the term of the Fund's insurance, but the insurance shall expire on the first to occur of the date which is:
(1) One month after the date on which the investor makes the final payment of all scheduled capital contributions to the borrower; or
(2) Five years after closing of the bridge loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.07 - Collateral

Current through Register Vol. 51, No. 14, July 12, 2024
Bridge loans shall be secured by:
A. A pledge of the investor's note or notes or other instruments evidencing the investor's obligations to make capital contributions; and
B. One or more of the following:
(1) A mortgage on the project, which may be subordinate to mortgages securing new or existing debt on the project;
(2) A guaranty of payment equal to the insured amount of the bridge loan, backed by assets of quality and liquidity satisfactory to the Fund;
(3) A guaranty of completion of the project; or
(4) Such other collateral as the Fund deems appropriate related to the risk of the bridge loan and the project and other factors it deems relevant.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.08 - Superior Mortgagee's Agreement

Current through Register Vol. 51, No. 14, July 12, 2024
The holder of any superior mortgage on the project shall agree that:
A. The Fund shall have an opportunity to cure any monetary defaults under the superior mortgage;
B. Any defaults that the Fund is unable to cure shall be suspended for a reasonable period, if the Fund elects to keep current any payments due under the superior mortgage; and
C. The superior mortgagee shall notify the Fund of any events of default under the superior mortgage.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.09 - Assurance of Completion

Current through Register Vol. 51, No. 14, July 12, 2024
Completion of construction of the project shall be assured by provision of either:
A. Performance and payment bonds, each in an amount equal to 100 percent of the construction contract amount;
B. Two irrevocable letters of credit equal to 25 percent, or cash or a pledge of depository accounts equal to 50 percent, of the construction contract amount; or
C. Other assurances of equivalent value.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.10 - Approval of Project, Loans, and Disbursement

Current through Register Vol. 51, No. 14, July 12, 2024
A. Before closing of the bridge loan, the Fund shall review and give its written approval to the completed drawings and specifications for the project, and all loans relating to the project, whether junior or senior to the insured bridge loan.
B. The Fund shall review financial statements and resumes for the general partners, the general contractor, and the management agent for the project. The financial statements shall show adequate liquidity to complete the project for the general partners and a consistent or increasing net worth for the contractor. The general contractor and the management agent shall have successfully constructed or managed, respectively, at least one comparable project and the general contractor shall have a record of timely completion of projects.
C. The Fund shall approve the total budget for the project and each disbursement of the bridge loan.
D. After closing of the bridge loan, the Fund shall review and give its written approval to any changes to the plans and specifications, any modifications to the bridge loan documents or documents relating to any superior loans, any change orders, and all requisitions for disbursement of the bridge loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.11 - Project Management

Current through Register Vol. 51, No. 14, July 12, 2024
The Fund requires that either the holder of the first mortgage or the Fund be able to require replacement of the management agent, if either the first mortgagee or the Fund in conjunction with the first mortgagee determines that rent-up or other operation of the project is not progressing satisfactorily.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.12 - Insurance Reserves

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Fund may not permit more than 10 percent of its multi-family reserve to be committed for insurance of bridge loans under this regulation.
B. Subject to §C of this regulation, the Fund may insure bridge loans from the multi-family reserve or any other monies of the Fund as may be restricted for that purpose. However, the Fund may not:
(1) Issue insurance under this section payable from the multi-family reserve in an aggregate principal amount greater than 8 times the amount of the multi-family reserve available for insurance of bridge loans; and
(2) Insure from any source more than an aggregate of $30 million of bridge loans that are not secured by a mortgage.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.13 - Fees

Current through Register Vol. 51, No. 14, July 12, 2024
The Fund may charge an application fee, closing fee, and insurance premium. The amount of the premium shall be determined on the basis of each insured loan relative to the degree of risk, as determined by the Fund in its sole discretion. The amount of the fees shall be determined by the Fund in its sole discretion.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.02 - Tax Credit Bridge Loan Insurance › Section 05.06.02.14 - Requirements of COMAR 05.06.01

Current through Register Vol. 51, No. 14, July 12, 2024
The requirements of COMAR 05.06.01.06C, 07, .10, .11, .18-.21, .23, and .24 shall also apply to bridge loans insured under this chapter.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.03 - Maryland Housing Fund-Revitalization Program › Section 05.06.03.01 - General

Current through Register Vol. 51, No. 14, July 12, 2024
A. These regulations set forth the policies, procedures, and authorization for:
(1) Insurance by the Maryland Housing Fund (M.H.F.) of 100 percent or less of a mortgage loan for the purchase, or purchase and rehabilitation, of an owner-occupied home with four or less units; and
(2) Agreements with mortgage lenders to share financial risk and insurance fees in connection with certain loans insured by M.H.F.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 06 - HOUSING INSURANCE › Chapter 05.06.03 - Maryland Housing Fund-Revitalization Program › Section 05.06.03.02 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Maryland Housing Fund recognizes the important role homeownership plays in stabilizing and revitalizing neighborhoods and communities. The purpose of the Revitalization Program is to provide opportunities to lower the risk of lending by using M.H.F. insurance to stimulate the flow of private mortgage capital into areas which have suffered from decreasing homeownership and associated economic and social instability. In addition, the program makes homeownership possible for those who do not have the resources for a down payment and closing costs, both of which otherwise would be required without M.H.F. insurance.
B. From 1973 to 1978, the predecessor to the Program operated in Baltimore City only, and was called the Baltimore City Pilot Program. The Program demonstrated that the level of losses can be acceptable for high loan-to-value mortgages in older urban areas, and together with other factors contributed to the decrease of red-lining practices and the resurgence of private conventional mortgage lending in Baltimore City. The experience in Baltimore City also demonstrated the feasibility of extending the Program Statewide. Starting in 1978, the Program has been available Statewide.