Md. Code Regs. 05.03.07.03

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

Section 05.03.07.03 - Definitions

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

B. Terms Defined.

(1) Closing Costs.

(a) "Closing costs" means costs incurred in connection with purchasing an eligible residence.

(b) "Closing costs" include:

(i) Credit report fee;

(ii) Appraisal fee;

(iii) Home inspection fee;

(iv) Survey fee;

(v) Title examination;

(vi) Loan origination fee;

(vii) Title insurance fee;

(viii) Homeownership counseling fee;

(ix) Application fee;

(x) Attorneys' fees;

(xi) Document preparation fee;

(xii) Recording fees;

(xiii) State and local transfer tax; and

(xiv) State recordation tax.

(2) "Department" means the Department of Housing and Community Development, a principal department of the State.

(3) "Designated neighborhood"' has the meaning stated in Housing and Community Development Article, §§ 6-301(b) and 6-306(b), Annotated Code of Maryland.

(4) "Eligible employee" means an individual who:

(a) Is employed by an employer approved pursuant to Regulation .05 of this chapter;

(b) Is 18 years old or older;

(c) Has a contract to purchase an eligible residence located in the employer's applicable LNYW area;

(d) Shall hold title to an eligible residence;

(e) Shall make a cash contribution of at least $1,000 toward the cost of the downpayment or closing costs in connection with purchasing an eligible residence; and

(f) Meets any additional eligibility requirements imposed by the local jurisdiction or the participating employer and approved by the Department.

(5) "Eligible residence" means a dwelling unit that is:

(a) The primary residence of an eligible employee;

(b) Located in the LNYW area of the eligible employee's employer; and

(c) A single unit property, including a townhouse or condominium, or is a two to four unit property and the eligible employee occupies one of the units.

(6) "Family of limited income" means a household meeting income limits established for this Program by written determination of the Secretary.

(7) "Household" means the individual or individuals who occupy or intend to occupy the:

(a) Eligible residence, in the case of a single unit property; or

(b) Unit in the eligible residence occupied by the eligible employee, in the case of a two to four unit property.

(8) "Household income" means 100 percent of the projected annual gross income, based on current rate of income, from all members of the household 18 years old or older including Social Security income, retirement income, pensions, wages, overtime, bonuses, commissions, investment and interest income, rental income, disability or unemployment insurance, alimony and support payments, and all other income from any sources, less:

(a) Abnormal expenses of a long-term, unusual nature such as extraordinary unreimbursable medical, rehabilitation, or special education expenses;

(b) Unusual or temporary one-time income items, such as judgments or gifts, as determined by the Department;

(c) Income of a full-time high school or undergraduate college student, unless that individual is to hold title to an eligible residence; and

(d) Other income items as may be excluded by the Department.

(9) "LNYW area" means an area that:

(a) Is the same as or is a part of the area or areas that lie within the LNYW boundary for the local jurisdiction;

(b) Is designated by an employer that desires to participate in the Program as the area where eligible employees may purchase a home;

(c) Has a relationship to the employer's location that supports the objectives of the Program;

(d) Is approved by the local jurisdiction; and

(e) Is approved by the Department.

(10) "LNYW boundary" means an area or areas within a local jurisdiction that:

(a) Coincides with or lies within one or more designated neighborhoods located within the local jurisdiction;

(b) Is approved as the local jurisdiction's LNYW boundary by a resolution of the governing body of the local jurisdiction; and

(c) Is approved by the Department.

(11) "LNYW grant" means the funds granted by the local jurisdiction to the eligible employee under the terms of this chapter, with combined funds from the Department, the local jurisdiction, and the employer.

(12) "LNYW project" means the Program operated by the local jurisdiction within the LNYW boundary for the local jurisdiction.

(13) "Local development agency" has the meaning stated in Housing and Community Development Article, § 4-201(l), Annotated Code of Maryland.

(14) "Local development corporation" has the meaning stated in Housing and Community Development Article, § 4-201(m), Annotated Code of Maryland.

(15) "Local jurisdiction" means either a municipal corporation subject to the provisions of the State Constitution, Article XI-E, or any one of the 23 counties of the State or Baltimore City.

(16) "Nonprofit organization" has the meaning stated in Housing and Community Development Article, § 1-101(g), Annotated Code of Maryland.

(17) "Program" means the Live Near Your Work Program.

(18) "Program grant" means the funds granted by the Department to a local jurisdiction to be used for the Department's contribution to LNYW grants.

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

Md. Code Regs. 05.03.07.03