Md. Code Regs. 05.03.02.17

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

Section 05.03.02.17 - Project Development-Eligible Projects

A. Developments of eligible residences or portions of the developments may be approved as eligible projects. The Administration may limit the number of eligible residences it will finance in any development of which the project is a part. If a development consists of more than one section, this limitation may be applicable to each section separately, as well as to the development as a whole.

B. Project Units.

(1) A project may be a scattered site project of units that are not located on contiguous properties.

(2) A project shall consist of at least two units.

(3) In the sole discretion of the Administration, cooperative units may be project units if the:

(a) Project consists of all of the cooperative units in the building or buildings owned by the cooperative housing corporation;

(b) Cooperative is in compliance with Corporations and Associations Code, Title 5, Subtitle 6B, Annotated Code of Maryland;

(c) Cooperative project is determined by the Secretary to be a community development project under the Act;

(d) Loans have such terms, and are secured, as required by the Administration and the mortgage insurer; and

(e) Administration, in its sole discretion, determines that the loans are permitted to be financed under the applicable bond documents.

C. Projects involving rehabilitation are eligible for a commitment if:

(1) The proposed rehabilitation will correct all code violations and bring the property to a standard acceptable to the Department;

(2) The structures to be rehabilitated are unoccupied at the time of commitment, except in cases of:

(a) Occupancy by tenants who are to become homeowners, or

(b) Adoption of a relocation plan acceptable to the Department; and

(3) Except in cases of tenant conversion to homeownership, the buildings to be rehabilitated are owned or to be owned by the developer.

D. If a project involves new construction or will change the type of use or increase the intensity of the existing use of the property, the project is 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. Regulations .03-.10 of this chapter apply to mortgage loans to finance acquisition of eligible residences located in eligible projects whether the mortgage loans are made directly by the Administration or purchased by the Administration from participating lenders.

F. If the project consists of newly constructed homes, then the project shall be located within a priority funding area identified under State Finance and Procurement Article, § 5-7 B-02, Annotated Code of Maryland.

G. Section F of this regulation does not apply to loans financed solely with the proceeds of revenue bonds issued under a transfer by a county to the Administration of the Maryland State ceiling under Financial Institutions Article, Title 13, Subtitle 8, Annotated Code of Maryland.

Md. Code Regs. 05.03.02.17

Regulations .17 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)
Regulations .17 adopted effective July 30, 1984 (11:15 Md. R. 1329)
Regulations .17 adopted effective September 30, 1991 (18:19 Md. R. 2098)
Regulation .17 amended effective January 2, 1994 (20:25 Md. R. 1941)
Regulation .17F adopted effective January 21, 2002 (29:1 Md. R. 20)
Regulations .17 and new Regulation .17F and G adopted effective October 13, 2003 (30:20 Md. R. 1447)