Md. Code Regs. 05.12.01.20

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

Section 05.12.01.20 - Processing Procedures

A. Home applications through the Single Family Programs or for a homeownership project will be processed in accordance with the published processing procedures for the appropriate Single Family Program.

B. Maryland HOME Initiatives Program Fund Processing.

(1) Applications for the Maryland HOME Initiatives Program Fund shall be processed in accordance with the procedures of this section.

(2) Threshold Requirements. Applications may not be considered for funding unless they meet the following minimum requirements:

(a) The application shall be consistent with 24 CFR Part 92 ;

(b) The application shall demonstrate that the project or activity will serve income eligible households; and

(c) The project or activity shall be:

(i) Ineligible for funding under the DHCD housing programs, or

(ii) Eligible for a DHCD housing program which the Department has elected not to fund or undertake;

(d) Projects shall be ready to proceed as evidenced by:

(i) Documentation of the availability of financing,

(ii) Evidence of zoning compliance and, if applicable, compliance with local planning requirements,

(iii) Evidence of site control, and

(iv) Completion of preliminary plans and specifications, drawings, and cost estimates;

(e) Programs shall be ready to implement as evidenced by:

(i) Detailed outline of policies, procedures, and eligibility requirements, and

(ii) Documentation of demand for the Program;

(f) The Department shall determine, based on the documentation provided with the application, if the project or program is feasible; the Department's review will include financial, construction, and management reviews; and

(g) The applicant shall demonstrate:

(i) That the project or program meets all of the requirements of 24 CFR Part 92 ;

(ii) The availability of funding for administrative costs associated with implementing and operating the project or program; and

(iii) The ability to satisfy all long-term monitoring, record-keeping, and reporting requirements which are required by 24 CFR Part 92.

(3) Evaluation. Applications which meet the threshold criteria shall be evaluated based upon the extent that the projects or programs:

(a) Address unmet need, with extra consideration given to programs or projects which:

(i) Currently are not undertaken in the State,

(ii) Fill a need not met by the DHCD housing programs or other programs of the Department, or

(iii) Propose new ideas that would provide insights and experience that may lead to new programs or changes to the DHCD housing programs;

(b) Include nonprofit participation, with the first priority given to applications from CHDOs with CHDO-eligible activities, second priority to applications from nonprofit organizations, and third priority to co-applications with nonprofit organizations and joint ventures with nonprofit organizations depending on the role and involvement of the nonprofit organization;

(c) Promote geographic distribution among eligible jurisdictions, with extra consideration given to nonentitlement jurisdictions or regions of the State underserved by HOME funds; and

(d) Promote new ideas which provide insight and experience that would lead to new programs or changes in existing programs of the Department.

(4) Approval to commit HOME funds from the Maryland HOME Initiatives Program Fund shall be as follows:

(a) The Director or the Deputy Director of the Division of Development Finance shall approve, disapprove, or modify loans or grants in amounts less than $100,000;

(b) Except in the case of an emergency when urgent action is required, all loans or grants in amounts greater than or equal to $100,000 shall be submitted to the Housing Finance Review Committee established under Housing and Community Development Article, § 4-208, Annotated Code of Maryland, for review and recommendation to the Secretary;

(c) For loans or grants in amounts greater than or equal to $100,000 but less than $250,000, the recommendation of the Housing Finance Review Committee constitutes approval unless the loan or grant is specifically disapproved by the Secretary;

(d) For loans or grants in amounts greater than or equal to $250,000, the Secretary shall approve, disapprove, or modify the terms of the loan or grant after receipt of the recommendation of the Housing Finance Review Committee; and

(e) In an emergency when urgent action is required, the Secretary may approve loans or grants without the recommendation of the Housing Finance Review Committee.

(5) Upon approval of financial assistance, the Department shall issue a commitment letter setting forth the terms and conditions of the financial assistance. The commitment letter shall specify a time limit within which the sponsor shall accept the terms and conditions of the approval by executing the approval letter.

(6) The Department shall specify a time limit within which that loan shall be closed in the case of projects or funds shall be committed and expended in the case of programs, which time limit may be extended in the Department's sole discretion. If closing does not occur within the time limit specified in the commitment or if the recipient fails to commit and expend the funds within the time limit provided in the commitment letter, the Department may use the funds committed for the loan or program for any other loan or program permitted by this chapter and 24 CFR Part 92.

C. All applications for projects to use HOME funds through the rental housing program or for rental housing development projects shall be processed in accordance with the published processing procedures as stated in COMAR 05.05.01.19-.26, provided that this chapter shall prevail in the event of a conflict between any provision under COMAR 05.05.01.19-.26 and any provision of this chapter.

D. Rejection.

(1) If an application for HOME funds through the Single Family Programs or the Maryland HOME Initiatives Program Fund or for a homeownership project is rejected, the director of the Single Family Programs shall notify the applicant in writing of the rejection.

(2) In addition to the notice to the applicant pursuant to §D(1) of this regulation, the director of the Single Family Programs shall also notify the Housing Finance Review Committee of all applications for HOME funds through the Maryland HOME Initiatives Program Fund not recommended for funding.

(3) If an application for HOME funds through the rental housing program or for a rental housing development project is rejected, the project sponsor shall be notified in accordance with COMAR 05.05.01.26.

E. Reconsideration.

(1) Applicants rejected under §D(1) of this regulation may request reconsideration of a rejection in accordance with the procedures contained in the HOME guidelines or the Single Family Programs.

(2) Applicants rejected under §D(3) of this regulation may request reconsideration of a rejection in accordance with COMAR 05.05.01.26.

(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.

F. Loan and Grant Documents.

(1) The Department shall provide the applicant with copies of standard form documents for all awards of funds for HOME projects for homeownership projects or financed through the single family programs or the Maryland HOME Initiatives Program Fund. In the case of Maryland HOME Initiatives Program Fund awards for programs, the Administration shall approve the documents to be entered into between the HOME recipient and the ultimate borrower.

(2) For HOME loans made for rental housing development projects, the loan documents shall comply with COMAR 05.05.01.27.

Md. Code Regs. 05.12.01.20

Regulation .20C amended as an emergency provision effective August 24, 1995 (22:19 Md. R. 1459); emergency status extended at 23:7 Md. R. 548; amended permanently effective August 26, 1996 (23:17 Md. R. 1247)
Regulation .20 amended effective 41:25 Md. R. 1476, eff.12/22/2014