Md. Code Regs. 05.05.05.20

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

Section 05.05.05.20 - Application Processing Procedures

A. Approval.

(1) After considering the application and the availability of resources, the Program staff shall select projects for review and recommendation for funding by the Housing Finance Review Committee.

(2) The Housing Finance Review Committee shall review the projects selected by Program staff and recommend projects to the Secretary for reservation of funds and capital assistance commitments.

(3) Upon receipt of the recommendation of the Housing Finance Review Committee, the Secretary shall approve or disapprove the capital assistance and the terms of the capital assistance. A written determination that each instance of capital assistance, regardless of the capital assistance amount, is statutorily authorized and approved by the Secretary shall be executed before the issuance of a reservation of funds or capital assistance commitment.

(4) In an emergency, when urgent action is required, the Secretary may approve capital assistance that would otherwise have been forwarded to the Housing Financing Review Committee, without the recommendation of the Housing Financing Review Committee.

(5) For capital assistance below the minimum amount established by the Housing Finance Review Committee, the Director of Development Finance may approve the capital assistance.

B. Commitment Letter. Upon the issuance of a determination by the Secretary approving capital assistance financing, the Director of Development Finance or Director of Multifamily Housing is authorized to issue a commitment letter setting forth the amount of the capital assistance and the terms and conditions under which the capital assistance will be made.

C. Expiration of Commitment.

(1) The Department shall specify in the commitment letter a time limit within which the execution of the commitment letter and the documents evidencing the financing shall occur.

(2) The time limits may be extended in the Department's sole discretion.

(3) If execution of the commitment and loan documentation do not occur within the time limits specified by the Department, the commitment shall expire, and, upon written notification to the sponsor, the Department may withdraw the moneys encumbered for the project and use them for any other project authorized by the Act.

D. Rejection of Applications. If Program staff determines not to recommend approval of a project for capital assistance, or if the Housing Finance Review Committee or the Secretary rejects a project for financing, the Director of Multifamily Housing shall issue a written notice of rejection.

E. Reconsideration.

(1) A sponsor may request reconsideration of a rejection by submitting a written request to the Director of Development Finance, to be received within 15 days following the date of the rejection notice.

(2) The request for reconsideration shall address each reason for the rejection and provide documentation supporting reasons for reconsideration of the issues.

(3) An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.02C.

Md. Code Regs. 05.05.05.20

Regulations .20 adopted effective November 11, 1991 (18:22 Md. R. 2393)
Regulations .20 adopted effective December 15, 2008 (35:25 Md. R. 2150)