Md. Code Regs. 05.03.06.04

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

Section 05.03.06.04 - Purposes

A. The Administration may use funds available under the Program for any of the purposes set forth in this regulation.

B. Preferred Uses.

(1) In the event of limited funds, the uses described in §§B(2)-(5) of this regulation may be given preference over the standard uses described in §C of this regulation.

(2) Designated Area Loans. Loans may be made for acquisition financing to borrowers purchasing residences in an area or neighborhood where the Secretary has determined home ownership should be encouraged through availability of Program loans.

(3) Accessory and Shared Housing. Acquisition financing may be provided for:

(a) Accessory housing that includes up to three dwelling units with complete, independent sleeping, cooking, and living facilities which are within, or attached to, or on the same parcel as, and subordinate to, but under the same ownership as a single family, owner-occupied dwelling, if a majority of all the units comprising the property are occupied by families of limited income; and

(b) Shared housing that provides sleeping facilities for up to four additional families and common, shared, or independent sanitary facilities and common or shared living, dining, and kitchen facilities, if a majority of the families occupying the property are of limited income.

(4) Refinancing of Existing Mortgages. Program loans may be made to refinance mortgages in order to assist eligible homeowners in critical circumstances, or to achieve the mortgage yield requirements of the Program.

(5) Prior Homeownership. Loans may be made to certain persons ineligible under the Administration's tax-exempt, bond-financed lending program because of prior home ownership, but who otherwise meet the requirements of that program.

C. Standard Uses. Loans may be made under the program to borrowers who meet Program requirements but are ineligible to receive loans under the more restrictive income and purchase price and other limits of the Administration's tax-exempt bond-financed lending Program.

D. Second Mortgage Loans. Loans may be made under the Program for second mortgage loans if the borrower is receiving a first mortgage loan financed by the Administration.

E. Other uses, as determined from time to time by the Secretary, may be made.

Md. Code Regs. 05.03.06.04

Regulation .04D, E amended effective July 30, 2007 (34:15 Md. R. 1349)