Md. Code Regs. 05.03.06.03

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

Section 05.03.06.03 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Act" means Housing and Community Development, Title 4, Subtitle 2, Annotated Code of Maryland.

(2) "Administration" means the Community Development Administration, an agency within the Division of Housing Finance of the Department.

(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 residence is located and which are applicable to that unit or to the construction of that unit.

(4) "Bonds" means mortgage revenue bonds of the Administration issued under the General Bond Certificate.

(5) "Closing costs" means:

(a) Financing costs such as points, if applicable, and fees for application, credit report, appraisal, survey, title examination, loan origination, and title insurance; and

(b) Title fees such as the attorney's fee, documentation and preparation fee, recording fee, State and local transfer tax, and documentary stamps.

(6) "Department" means the Department of Housing and Community Development.

(7) "Developer" means an individual or entity that owns, acquires, constructs, or rehabilitates a project of eligible residences, the purchases of which are to be financed by mortgage investments.

(8) "Families of limited income" means individuals or households meeting income limits established for this Program by written determination of the Secretary from time to time.

(9) "Fund" means the Special Purpose Investment Fund authorized by the General Bond Certificate and held by the Trustee under the Certificate for the benefit of the bondholders.

(10) "General Bond Certificate" means the Community Development Administration, Single Family Program General Bond Certificate, dated May 1, 1980, as amended and supplemented from time to time.

(11) "Loan" means an eligible loan financed by the Administration under the Program.

(12) "Manufactured home" means a housing unit that:

(a) Is intended for residential use by a single household;

(b) Is a multisectional structure fabricated after June 14, 1976, in an off-site manufacturing facility for installation or assembly at the building site;

(c) Is not less than 24 feet in width and 40 feet in length;

(d) Is installed permanently on an engineered foundation in conformance with the BOCA National Building Code (1987), which is incorporated by reference under COMAR 05.02.01, or the standards set by the American National Standards Institute, Inc. which are incorporated by reference under COMAR 05.02.02, and is not independently capable of movement;

(e) Has brick, wood, aluminum, or cosmetically equivalent exterior siding and pitched composition shingle or wood shake roof;

(f) Is certified by the United States Department of Housing and Urban Development as a manufactured home in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, or by the Department as an industrialized building in accordance with Public Safety Article, § 12-308, Annotated Code of Maryland, and complies with all requirements set forth in COMAR 05.02.04;

(g) Is installed on real property the borrower owns in fee simple or under a freely transferable ground rent lease, and the legal title to the improvements runs with the real property;

(h) Meets all applicable zoning requirements as to number of dwelling units, lot size, and building setbacks; and

(i) Is reasonably expected to have an economic life equal to or greater than the term of the loan.

(13) "Mortgage investment", for purposes of the Program, means mortgage loans to families of limited incomes, either made directly by the Administration or purchased from mortgage lenders, for the financing of eligible properties of one to four dwelling units.

(14) "Mortgage Yield Account" means the account established within the Special Purpose Investment Fund for making mortgage investments and other investments in accordance with the General Bond Certificate.

(15) "Prepaid expenses" means costs due at the time of closing which are required to be paid in connection with closing a mortgage loan such as property taxes, ground rent, hazard insurance, condominium or homeowners association fees if applicable, and any mortgage insurance premiums.

(16) "Program" means the Administration's program to make or purchase mortgage investments with funds available in the Mortgage Yield Account of the Special Purpose Investment Fund.

(17) "Project" means a community development project within the meaning of the Act, that contains eligible existing, newly constructed, or rehabilitated one to four family residential housing units that include at least one owner-occupied unit.

(18) "Reservation of funds" means a commitment to a borrower, lender, or developer for a loan to be financed by the Fund.

(19) "Secretary" means the Secretary of Housing and Community Development.

(20) "Settlement costs" means closing costs and prepaid expenses.

(21) "Single family residence" means a residential housing unit intended for occupancy by one to four families meeting criteria specified for the Program.

(22) "Special Purpose Investment Fund" means the Fund created and established by § 5.16(a) of the General Bond Certificate, and may include:

(a) A Mortgage Yield Account;

(b) An additional investment account; and

(c) Other accounts as may be created and established in accordance with the General Bond Certificate.

Md. Code Regs. 05.03.06.03