Md. Code Regs. 05.13.07.02

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

Section 05.13.07.02 - Definitions

A. In this chapter, the following terms have the meanings indicated and as defined in the Act.

B. Terms Defined.

(1) "Act" means Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland.

(2) "Administration" means the Community Development Administration, an agency in the Division of Development Finance of the Department of Housing and Community Development.

(3) "Borrower" means a recipient of any type of financial assistance from the Administration under this chapter.

(4) "Business project" means a project that is located in a priority funding area or an eligible opportunity zone and:

(a) Is acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by a person or an entity for the purposes of carrying on a business, whether or not for profit; or

(b) Is eligible for funding from the Neighborhood Business Development Fund under Housing and Community Development Article, § 6-310, Annotated Code of Maryland.

(5) "Department" means the Department of Housing and Community Development, a principal department of the State.

(6) Development Costs.

(a) "Development costs" means the costs incurred in acquiring, developing, operating, and expanding a business that the Department considers reasonable and necessary for the project.

(b) "Development costs" includes the costs for:

(i) Acquisition of land, equipment, and machinery;

(ii) Operating costs;

(iii) Necessary studies, surveys, plans, and specifications;

(iv) Architectural, engineering, or special services;

(v) Site preparation and development;

(vi) Labor and materials for construction;

(vii) Fees and closing costs incurred in connection with financing the project;

(viii) Indemnity and surety bonds;

(ix) Premiums on insurance; and

(x) Other costs the Administration deems reasonable and necessary.

(7) "Eligible opportunity zone" means an area designated as a qualified opportunity zone under § 1400 Z-1 of the Internal Revenue Code that is located in Allegany County, Garrett County, Somerset County, or Wicomico County.

(8) Financial Assistance.

(a) "Financial assistance" means any form of assurance, guarantee, grant, payment, loan, loan participation, loan insurance, credit enhancement, or other assistance.

(b) "Financial assistance" includes a reduction in the principal obligation of, or in the rate of interest payable on, a loan or portion of a loan.

(9) "Nonprofit organization" means a corporation, foundation, or other entity that specifies in its charter or bylaws that no part of the net earnings may inure to the benefit of any private shareholder or individual holding any interest in the entity.

(10) "Priority funding area" means an area designated as a priority funding area under State Finance and Procurement Article, § 5-7B-02, Annotated Code of Maryland.

(11) "Program" means the business lending program within the Administration.

(12) "Project" means a business project.

(13) "Secretary" means the Secretary of Housing and Community Development of Maryland.

Md. Code Regs. 05.13.07.02

Regulation .02 adopted effective 47:14 Md. R. 674, eff. 7/16/2020