Md. Code Regs. 05.09.01.08

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

Section 05.09.01.08 - Application and Processing Procedures

A. Applications for participation may be accepted on a continuing basis by the Administration.

B. The form of the application shall be prescribed by the Administration and shall include all supporting documentation specified in the application, which may include:

(1) A narrative describing the local government and any special recognition accorded it by other levels of government or by professional organizations;

(2) A copy of the charter and other organizational materials;

(3) Detailed information about the project;

(4) Biographies of key officials;

(5) Demographic, geographical, assessment, tax, building, and similar data;

(6) Audited annual financial statements;

(7) Current operating and capital budgets;

(8) Multiyear capital improvement program;

(9) Schedule of existing debt service payments;

(10) Employee and pension information;

(11) Anticipated borrowing plans;

(12) Investment policy;

(13) If the local government will be issuing a local obligation in connection with a financing or refinancing under the Program, a copy of the local government's debt affordability policy, together with a resolution adopted by the governing body of the local government that the financing or refinancing conforms to the policy and is prudent under all of the circumstances; and

(14) A certificate that the local government has determined that the project is consistent with the local comprehensive plan or warranted by extraordinary circumstances with no reasonably feasible alternative, as required under State Finance and Procurement Article, § 5-7 A-02(b), Annotated Code of Maryland.

C. Review and Letter of Intent.

(1) Each application shall be reviewed by the Administration to make a determination of the eligibility of the local government and the project in accordance with Regulations .04-.06 of this chapter. The Administration will review each application as to loan amount and terms.

(2) Report Filing.

(a) The Secretary's designee shall file with the State Office of Planning the project report required under Regulation .05H of this chapter.

(b) If the project report concludes that a project is an inconsistent project with extraordinary circumstances, the Secretary's designee shall submit with the report the documentation, if any, that the Program provided to any local government proposing the project.

(c) The Secretary's designee may withdraw a project report filed with the Office of Planning by filing a withdrawal with that Office at any time before the determination becomes final.

(3) Finality. The determination evidenced by the project consistency report under §C(2) of this regulation shall become final and the Program may proceed with the sale of the bonds after:

(a) For a determination of consistency:

(i) The date the Interagency Growth, Resource Protection, and Planning Committee concurs in the determination, or

(ii) The date that is the later of 15 days from the date the project consistency report is filed with the Office of Planning, no Interagency Committee member has requested review by the Interagency Committee, or 45 days from the date the Interagency Committee has failed to act if an Interagency Committee member has requested review by the Interagency Committee;

(b) For a determination of inconsistency with extraordinary circumstances:

(i) The date the Interagency Committee concurs in the determination, or

(ii) 45 days from the date the project consistency report is filed with the Office of Planning, if the Interagency Committee has failed to act; or

(c) For a determination of consistency or of inconsistency with extraordinary circumstances in which the Interagency Committee does not concur and which the Administration or the Interagency Committee refers to the Governor, the date the Governor determines the project is consistent or is inconsistent with extraordinary circumstances.

(4) When the Administration determines that there are sufficient, acceptable applications from local governments to enable the Administration to issue bonds, notes, or other obligations in an amount sufficient to finance economically the applicable projects under the Program, the Administration shall prepare a letter of intent.

(5) Before issuance of the bonds, the Administration shall issue a letter of intent to the local government setting forth the maximum interest rate on the loan, the repayment provisions, and any other terms and conditions that the Administration considers appropriate for the loan or the project. The letter of intent shall be executed by the local government and returned to the Administration, within the time limit set forth in the letter of intent.

(6) Each letter of intent shall be conditioned upon:

(a) Authorized execution by the local government;

(b) The sale of the Administration's bonds by a certain date;

(c) Recommendation by the Committee and approval by the Secretary;

(d) The occurrence before the sale of the Administration's bonds of any required voter referendum necessary in order for the local government to sell its local obligation to the Administration; and

(e) Finalization under §C(3) of this regulation of the project report required under Regulation .05H of this chapter.

D. Loan Approval.

(1) Except in the case of an emergency when urgent action is required, all loans shall be submitted by the Administration to the Committee for review and recommendation to the Secretary for approval or disapproval of a loan and the terms of the loan.

(2) Upon receipt of a recommendation of the Committee, the Secretary shall approve or disapprove the loan and the terms of the loan. In an emergency when urgent action is required, the Secretary may approve a loan without the recommendation of the Committee.

(3) Before the closing of the sale of the Administration's bonds, notes, or other obligations, the Secretary shall execute a written determination that each loan, regardless of the loan amount:

(a) Is an infrastructure project authorized by the Act; and

(b) Complies with Regulation .05F or G of this chapter and has been finalized under §C(3) of this regulation.

(4) If the Secretary disapproves a loan, the Administration shall notify the local government in writing of the disapproval and the reasons for it.

E. Timing. The Administration will specify a time limit within which the closing of the loan shall occur, which time limit may be extended in the Administration's sole discretion. If closing does not occur within the time limit specified by the Administration, the Administration may use the monies committed for the loan for any other loan or purpose authorized by the Act.

F. Rejection of Applications. If the Administration determines that a project or local government is not eligible for a loan, the Administration shall issue a written notice of ineligibility.

G. Reconsideration. Local governments may request reconsideration of a rejection. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.04.02.

Md. Code Regs. 05.09.01.08

Regulations .08 amended effective November 22, 1993 (20:23 Md. R. 1801)
Regulation .08 amended effective September 6, 1999 (26:18 Md. R. 1374)