Md. Code Regs. 05.03.08.08

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

Section 05.03.08.08 - Loan Application and Processing Procedures

A. The Department may accept applications on a first-come, first-served basis or through competitive rounds to be announced by the program periodically.

B. A loan application shall be made upon standard forms prescribed by the Department.

C. Each application shall be fully completed and properly executed and be accompanied by the following items:

(1) A copy of the articles of incorporation, bylaws, and most recent financial statements of an applicant for a nonprofit organization, corporation, or partnership;

(2) A copy of:

(a) The deed to the property;

(b) A contract or option agreement to purchase the property; or

(c) An agreement of understanding or letter of intent to purchase the property;

(3) A preliminary description, plans, and specifications of the low-energy or net-zero home to be constructed;

(4) A description of the applicant's experience and current activity which demonstrates the applicant's capacity to construct a project; and

(5) Identification of how the land is presently zoned.

D. Feasibility Notification. Upon receipt of all documentation necessary to determine the feasibility of a project and the primary loan structure and terms, the Department shall issue a written notification letter to the applicant.

E. The feasibility notification letter shall outline anticipated loan terms and shall specify any additional documentation which shall be provided or other conditions which shall be met in order for the Department to recommend a loan for commitment, including:

(1) Plans and specifications or a detailed scope of work for the construction of the project and proposed energy usage by the home;

(2) A copy of the contract for the work;

(3) Evidence of zoning compliance;

(4) A copy of a commitment or letter of intent to provide permanent financing which, at a minimum, shall state the amount, rate, and terms of the permanent financing; and

(5) A schedule of the proposed sales price or rent of the home.

F. Approval.

(1) Upon satisfaction of all the requirements and conditions of the feasibility notification letter, the Department shall undertake an analysis of each application as to the final recommended loan amount, structure, and terms.

(2) Loans shall be submitted to the Housing Finance Review Committee in accordance with COMAR 05.01.07, as applicable, and to the Secretary for approval.

G. Commitment Letter. Upon the approval a loan, the Director or Program Manager is authorized to issue a commitment letter setting forth the amount of the loan, the interest rate on the loan, and the other terms and conditions under which it will be made.

H. Rejection of Applications. The Department shall issue a written notice of the determination of ineligibility if it determines that a project or applicant is not eligible for a loan.

I. Reconsideration. Applicants may request reconsideration of a rejection in accordance with the procedures contained in the program guidelines.

Md. Code Regs. 05.03.08.08

Regulation .08 adopted effective 44:15 Md. R. 759, eff. 7/31/2017