Md. Code Regs. 05.05.10.08

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

Section 05.05.10.08 - Terms and Conditions of Financial Assistance

A. Amount of Financial Assistance. The maximum amount of financial assistance under the Program shall be as follows:

(1) Planning assistance may not exceed 50 percent of the total predevelopment costs of a project or such other percentage as may be specified by ARC;

(2) Site development assistance may not exceed the following amounts of such other amounts as may be specified by ARC:

(a) 10 percent of the total project costs for new construction, or

(b) 10 percent of the reasonable costs after rehabilitation value of a rehabilitation project;

(3) Demonstration assistance may not exceed 50 percent of the total cost of a project or such other percentage as may be specified by ARC;

(4) The total amount of federal financial assistance involved in a project may not exceed 80 percent of the total costs of a project.

B. Conditional Repayment Provisions. The Department may require the repayment of any financial assistance if the:

(1) Sponsor anticipates being reimbursed for eligible costs paid out of financial assistance from the Program; and

(2) Reimbursement of the sponsor will occur within 2 years of the date of the grant agreement between the sponsor and the Department.

C. The Department may require a sponsor to maintain the following insurance:

(1) Multi-peril insurance which provides fire and extended coverage insurance on a project both during and after construction or rehabilitation. The insurance coverage shall include such endorsements as the Department may require including:

(a) Collapse;

(b) Explosion;

(c) Loss of rents; and

(d) Vandalism.

(2) Liability Insurance. Comprehensive general liability insurance shall be maintained with such endorsements as the Department may require, both during and after construction or rehabilitation of a project.

(3) Flood Insurance. If the project is located on real property which is in the 100-year flood plain, as designated by the United States Department of Housing and Urban Development, the project shall be covered by a flood plain insurance policy. Before closing of a loan for a project, permits shall be secured from the Maryland Department of Natural Resources and the Maryland Appalachian county in which the project is located.

(4) Contractor's Insurance. If a project involves construction or rehabilitation of a building or improvements of any kind, the general contractor shall provide insurance coverage for comprehensive public liability, property damage, and workers' compensation in form and amounts required by the Department.

(5) Other Insurance. The sponsor shall provide at closing of the financial assistance such other insurance as the Department may require including builder's risk, boiler insurance, comprehensive automobile liability, and broad form workers' compensation.

(6) Terms and Conditions. Each insurance policy shall meet the following minimum requirements plus any additional requirements which may be set by the Department:

(a) Be written by companies acceptable to the Department;

(b) Be written by companies which are reputable and financially sound, as determined by the Department;

(c) Be in force to the extent applicable upon the closing of the financial assistance;

(d) Contain to the extent applicable a standard mortgagee endorsement attached to or printed in the policy naming the Department as mortgagee;

(e) Name to the extent required by the Department, the Department as loss payee and additional insured;

(f) Provide for notification to the Department before termination; and

(g) Contain terms and coverage satisfactory to the Department.

Md. Code Regs. 05.05.10.08

Regulation .08 amended effective January 2, 1993 (19:26 Md. R. 2283)