Md. Code Regs. 05.05.09.05

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

Section 05.05.09.05 - Eligible Uses

A. Program funds may be used for:

(1) The cost of acquiring land and buildings;

(2) Necessary studies, surveys, plans, specifications, appraisals, compaction tests, test borings, construction cost estimates, and environmental impact reports;

(3) Site preparation;

(4) Cost of labor and materials, including reasonable overhead and profit, for construction, rehabilitation, and installation of improvements as set forth in approved proposals or plans and specifications;

(5) Acquisition of capital equipment and furnishings to be installed at the project; or

(6) Fees and premiums normally incurred in real estate development including indemnity and surety bonds, hazard and liability insurance, legal and closing costs, and other costs and fees acceptable to the Department.

B. Program funds may not be used:

(1) To refinance existing debt on projects;

(2) To finance the costs of any portion of a building or undertaking that does not provide shelter, transitional, or other housing units for homeless households and the necessary space and facilities required to operate the project;

(3) For transaction costs associated with the offering and syndicated sale; and

(4) For replacement of capital equipment and furnishings, such as beds, furniture, and floor coverings, and noncapital items in existing shelter, transitional, or other housing facilities for homeless households except under certain circumstances.

Md. Code Regs. 05.05.09.05

Regulations .05 amended effective October 5, 1998 (25:20 Md. R. 1527)