Md. Code Regs. 05.05.01.19

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

Section 05.05.01.19 - Application Submission and Review

A. Applications are accepted and reviewed in one or more competitive rounds to be announced by the program annually.

B. An application for an office and commercial space conversion project shall be accepted and processed in accordance with processing procedures established by the Department and shall be submitted by the political subdivision in which the project is located. If the project is located in a municipal corporation, the application shall be submitted by the municipal corporation, not the surrounding county.

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

D. Documentation. An application shall be accompanied by all documentation in the form and containing the information specified by the application procedures adopted by the Department, which may vary depending on the type of loan.

E. Fees and Charges.

(1) Fees.

(a) The program shall charge an application fee unless a sponsor submits an application for funds from the program in conjunction with an application for any other Department program for which an application fee is charged and paid, in which case the program may waive the requirement for an application fee. This fee may be less for nonprofit sponsors and political subdivisions.

(b) Administrative or reservation fees, which may be financed by the loan, may be charged to sponsors to cover the costs of servicing the loan or for failure by the sponsor to met loan processing deadlines.

(c) The program shall charge a loan closing fee to cover legal and other costs to the Department of closing the loan.

(2) The Department may charge sponsors for the following items, if paid by the Department, which may be financed by the loan:

(a) Market studies;

(b) Construction cost estimates;

(c) Recording fees and recording taxes or other charges incidental to recordation;

(d) Survey;

(e) Appraisal;

(f) Title examination and title insurance; and

(g) Investment fees.

(3) The Department may charge penalties to applicants, lenders, servicers, sponsors, or other individuals or entities that participate in the program. The Department may restrict the fees and charges that servicers, political subdivisions, or other program participants obtain from sponsors.

F. Each application is subject to an initial review of threshold criteria under Regulation .20 of this chapter to make a preliminary determination of the eligibility of the project. If the project meets all the threshold criteria, the project shall be rated and ranked according to the project evaluation criteria in Regulation .21 of this chapter. If the project does not meet the threshold criteria under Regulation .20 of this chapter, the application shall be rejected and the sponsor shall be notified in writing by the Department. The rejection notice shall state the reason the application has been rejected. The sponsor of a rejected application may request reconsideration in accordance with Regulation .25H of this chapter.

Md. Code Regs. 05.05.01.19

Regulations .19 adopted effective March 4, 1991 (18:4 Md. R. 446)
Regulations .19 Rental Multifamily Rental Financing Program adopted effective March 13, 2006 (33:5 Md. R. 518)