Md. Code Regs. 05.03.01.15

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.01.15 - Forward Commitments to Developers

A. For eligible developers of eligible homes, the Department may enter into forward commitments to reserve, for a fixed period of time, a fixed amount of Program funds. The Program funds reserved in the forward commitment shall be used to finance Program loans for eligible borrowers purchasing eligible homes constructed or rehabilitated by the developer.

B. Eligible developers are:

(1) Nonprofit or for-profit organizations;

(2) Local governments; or

(3) Local government agencies.

C. To be eligible for a commitment, homes to be financed with the funds reserved shall:

(1) Be priced to be affordable to eligible borrowers; and

(2) In the determination of the Department, avoid creating or aggravating a concentration of low income households that would adversely affect surrounding communities.

D. If homes to be included in this forward commitment are new construction, or will change the type of use or increase the intensity of the existing use of the property included in the commitment, the homes are eligible for a forward commitment only if the:

(1) Department has complied with COMAR 05.01.06.06C ; and

(2) Secretary has issued the written determination required under COMAR 05.01.06.07C.

E. To be eligible for a commitment, newly constructed homes to be included in a forward commitment shall be located within a priority funding area identified under State Finance and Procurement Article, § 5-7 B-02, Annotated Code of Maryland.

F. A developer seeking a forward commitment shall submit sufficient information and documentation to determine the extent, if any, to which the homes to be financed by the loans will change the type of use or increase the intensity of the existing use of the property included in the forward commitment.

Md. Code Regs. 05.03.01.15

Regulations .15 amended effective September 1, 1974 (1:2 Md. R. 112)
Regulations .15 amended effective July 23, 1975 (2:16 Md. R. 1138)
Regulations .15 amended as an emergency provision effective January 25, 1989 (16:3 Md. R. 334); emergency status expired July 25, 1989; adopted permanently effective August 7, 1989 (16:15 Md. R. 1650)
Regulations .15 under a new chapter, Preferred Interest Rate Loan Program, adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulation .15E amended effective October 13, 2003 (30:20 Md. R. 1447)