Md. Code Regs. 05.05.01.25

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

Section 05.05.01.25 - Project Modification, Rejection, Cancellation, and Withdrawal

A. If a project is modified at any time after the application has been submitted, until the loan has closed, the project shall be reevaluated as set forth in §§B-F of this regulation.

B. Modifications to Threshold Criteria under Regulation .20. If a project is modified in a manner that affects the threshold criteria, including the admission of any new general partner or managing member, but not including limited partners or non-managing members, the project shall be reevaluated against the threshold criteria and if the criteria continue to be met, the project shall continue to be processed from its previous point. If the threshold criteria are not met, the Department shall notify the sponsor in writing that processing of the loan for the project has been stopped and if the threshold violation is not cured within a time period acceptable to the Department, the reservation or commitment, as applicable, will be cancelled.

C. Modifications to Project Evaluation Criteria under Regulation .21. If a project is modified in a manner which decreases the project's rating and ranking score so that, in the Department's opinion, the score is too low for continued processing, the Department shall send written notice that processing of the loan for the project has been stopped and if the evaluation criteria modification is not corrected within a time period acceptable to the Department, the reservation or commitment, as applicable, will be cancelled. Otherwise, the project shall continue to be processed from its previous point.

D. Loan Increases. If a sponsor requests an increase in the Department loan of an aggregate of more than 10 percent, the Department, in its discretion, may either send written notice to the sponsor that the project's reservation or commitment, as applicable, has been cancelled or may resubmit the project for review and recommendation under Regulation .22 of this chapter.

E. Schedule Modifications. If a project cannot proceed in accordance with the schedule established by the Department and the sponsor, as set forth in the reservation letter and as amended with the approval of the Department, the Department may send written notice to the sponsor that the project's reservation or commitment, as applicable, has been cancelled.

F. Other Modifications. If a project's underwriting, construction, or other features are modified so that the project is no longer feasible in the Department's discretion, the Department shall send written notice to the sponsor that the project's reservation or commitment, as applicable, has been cancelled.

G. Rejection. If a loan application is rejected, the Department shall notify the sponsor in writing. The rejection letter shall state the reason the loan is rejected.

H. Reconsideration. A sponsor may request reconsideration of a rejection within 15 days of receipt of notice of the rejection. The request shall be in writing and submitted to the Program Director. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.

I. Withdrawal of Application.

(1) An applicant may withdraw an application at any time before closing of the loan by written notice to the Department.

(2) An applicant that withdraws its application may be required to bear any costs incurred by the Department, including, but not limited to:

(a) Title examinations;

(b) Credit reports;

(c) Appraisals;

(d) Market analyses;

(e) Fees attributable to the Department's processing costs; and

(f) Legal fees.

Md. Code Regs. 05.05.01.25

Regulations .25 adopted effective March 4, 1991 (18:4 Md. R. 446)
Regulations .01_.23 Rental Housing Program repealed and new Regulations .25 Multifamily Rental Financing Program adopted effective March 13, 2006 (33:5 Md. R. 518)