Md. Code Regs. 05.03.07.04

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

Section 05.03.07.04 - Application and Approval Process for Local Jurisdictions

A. Application Process.

(1) The Department may set periodic deadlines for applications from local jurisdictions.

(2) The local jurisdiction shall submit an application to the Department in the form and containing the information and documentation required by the Department.

B. Awarding Program Grants to Local Jurisdictions.

(1) The Assistant Secretary for Neighborhood Revitalization and the Assistant Secretary who is the Director of the Community Development Administration shall:

(a) Review all applications from local jurisdictions; and

(b) Recommend to the Housing Finance Review Committee established under Housing and Community Development Article, § 4-208, Annotated Code of Maryland, for review and recommendation to the Secretary, the amount of all Program grants to local jurisdictions based on the:

(i) Capacity of the local jurisdiction to operate a LNYW project, and

(ii) Financial commitment of the local jurisdiction and the employers.

(2) The Secretary shall by written determination approve, disapprove, or modify the terms of all Program grants after receipt of the recommendation of the Housing Finance Review Committee.

(3) If the Secretary approves a Program grant, the written determination from the Secretary shall also:

(a) Approve the LNYW project as a community development project as defined in Housing and Community Development Article, § 4-217, Annotated Code of Maryland; and

(b) Approve the LNYW boundary.

(4) The Department may set deadlines and conditions for using the Program grant.

C. Each local jurisdiction approved for a Program grant under §B of this regulation shall enter into a grant agreement with the Department which provides:

(1) That the local jurisdiction shall:

(a) Provide a minimum of $1,000 for each LNYW grant and demonstrate to the satisfaction of the Department that funds have been committed for that purpose,

(b) Ensure that at least 51 percent of the eligible employees who receive LNYW grants from the local jurisdiction's LNYW project are families of limited income,

(c) Agree to cooperate with the Department in conducting evaluations and analyses of the Program, and

(d) Develop a marketing plan to promote the Program that is satisfactory to the Department; and

(2) Other terms and conditions required by the Department.

D. Conditions on LNYW Grants.

(1) The contribution from the local jurisdiction may be in the form of a grant or a conditional grant.

(2) A conditional grant is subject to the following minimum terms and conditions:

(a) Repayment of the grant may be required upon any terms and conditions approved by the Department;

(b) No interest is due on the unpaid portion of the grant;

(c) The term of the grant may not exceed 3 years; and

(d) A pro rata portion of the grant shall be released in each year of the term, so that at the end of the term the grantee is not required to repay the grant if all terms and conditions are met.

(3) The local jurisdiction may impose additional eligibility requirements for LNYW grants, including a minimum period of residency in the home purchased or homeownership counseling, if the additional restrictions:

(a) Do not violate any applicable law;

(b) Have been approved by the Department; and

(c) Are imposed on all LNYW grants from the local jurisdiction.

(4) The local jurisdiction may not impose income limits that are higher than the requirements under this chapter for families of limited income.

E. Authorizing Another Entity.

(1) A local jurisdiction may authorize another entity to operate the LNYW project in that jurisdiction if the:

(a) Entity is a nonprofit organization, local development corporation, or local development agency;

(b) Local jurisdiction authorizes the entity to operate the Program in a resolution of its local governing body;

(c) Entity is approved by the Department to operate the LNYW project; and

(d) Local jurisdiction and the entity enter into a written agreement, which is approved by the Department, for the operation of the LNYW project.

(2) If a local jurisdiction authorizes another entity to operate the LNYW project in that jurisdiction, the entity shall:

(a) Execute the grant agreement with the Department or, if the local jurisdiction has already executed a grant agreement with the Department, execute an amendment to the grant agreement agreeing to assume the local jurisdiction's rights and responsibilities under the grant agreement; and

(b) Take all actions described in this chapter for the local jurisdiction except for actions to designate an LNYW boundary.

(3) If a local jurisdiction authorizes another entity to operate the LNYW project in that jurisdiction, either the local jurisdiction or the entity may provide the matching funds required of the local jurisdiction.

Md. Code Regs. 05.03.07.04