Md. Code Regs. 34.04.02.06

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

Section 34.04.02.06 - Application and Processing Procedures

A. Application Solicitation. Each fiscal year the Trust will solicit applications for loans and transfers through the issuance of a public announcement of the availability of funds under the Program. The Trust shall post the announcement on its website and issue a press release containing the announcement.

B. Funds Allocation. It is the intent of the Trust that Program funds be distributed Statewide. Funds shall be loaned or transferred based upon the satisfaction of application requirements and selection criteria contained in this regulation. If an application is submitted but funding is not then available under the Program, the Trust in its discretion may continue to process the application until such time as funding is available and then may authorize the loan or transfer without the necessity of a new application.

C. Application Forms and Documentation. Applications shall be made on standard forms prescribed by the Trust.

(1) Each loan application shall include sufficient information and documentation to:

(a) Evaluate the historical or cultural significance of the property;

(b) Determine the ownership and all lessees or substantial users of the property;

(c) Evaluate the current and proposed condition and use of the property, and the extent, if any, to which the proposed activity will change the type of use or increase the intensity of the existing use of the property;

(d) Evaluate the nature and cost of the proposed activity;

(e) Evaluate the income and repayment capability of the applicant;

(f) Evaluate the readiness of the project to initiate activity and to be completed within an established time frame;

(g) Evaluate the administrative capability of the applicant;

(h) Determine the level of contribution by the appropriate local jurisdiction to support the project proposed to be financed; and

(i) Support such other factors as determined necessary by the Trust.

(2) Each transfer application shall include sufficient information and documentation to evaluate:

(a) Whether the applicant is a qualified cooperating nonprofit organization as defined in Regulation .03B(21) of this chapter;

(b) The nature and cost of the project that the applicant proposes to pursue with the proceeds of a transfer if known at the time of the application; and

(c) The extent to which the application meets the criteria set forth in §D of this regulation.

(3) All applications for loans or transfers shall be received by the Trust by the application deadline identified in the solicitation required under §A of this regulation.

D. Selection Criteria. The Trust shall review and evaluate loan and transfer applications in accordance with the following selection criteria:

(1) Relative historical or cultural significance of the resource to be treated;

(2) Urgency of the need for financial assistance for the project;

(3) Extent to which the project will contribute to the cumulative equitable Statewide geographic distribution of funds based on the concentration of historic properties;

(4) Comprehensiveness of the scope of the project;

(5) Readiness of the project to initiate activity and to be completed within an established time frame;

(6) Administrative, professional, and financial capability of the applicant;

(7) Extent to which the project stimulates or promotes other historic preservation activities;

(8) Informational and educational value of the project;

(9) Demonstration and innovation value of the project;

(10) Extent to which there is any proposed contribution by the appropriate local jurisdiction to support the project proposed to be financed; and

(11) Additional criteria which the Trust considers to be appropriate.

E. Loan Processing Fee. The Trust may require applicants for loans to pay a fee to cover a portion of the cost of processing the loan.

F. Notification Letter. Upon receipt of all documentation necessary to assess the feasibility of a project, the Trust shall issue a written notification letter to the applicant, which will detail conditions which shall be met in order for the Trust to recommend approval of a loan or transfer to the Trustees and the Secretary.

G. Commitment Letter. After the approval process in Regulation .07 of this chapter has been satisfied, the Director is authorized to issue a commitment letter for:

(1) An approved loan setting forth the amount of the loan and the terms and conditions under which it shall be made; or

(2) An approved transfer setting forth the total amount of the transfer, the amount of the transfer that is funded with the proceeds of a sale of State general obligation bonds, and the terms and conditions under which the transfer shall be made.

H. Expiration of Commitment.

(1) The Trust shall specify in the loan commitment letter a time limit within which the closing on the loan and recording of the loan documents shall occur, which time limit may be extended in the Trust's sole discretion.

(2) The Trust shall specify in the transfer commitment letter a time limit within which the transferee shall sign and return the transfer document, which time limit may be extended in the Trust's sole discretion.

(3) If the loan or transfer documents are not executed and returned to the Trust by the date stated in the commitment letter, the commitment shall expire and the Trust may withdraw the funds committed to the project and use them for any other project authorized by the Act.

I. Rejection of Applications.

(1) If the Trustees determine not to recommend approval of a loan or transfer, or if the Secretary does not approve a loan or transfer, the Trust shall issue a written notice of rejection.

(2) Applicants may request reconsideration of a rejection made by the Trustees by submitting a written request to the Director which is received within 30 days following the date of the Trust's rejection notice. The Director shall respond in writing either within 30 days of receipt by the Trust of the request for reconsideration or within 5 days of the next Trustees' meeting, whichever occurs later. The Secretary shall take final action regarding any applicant's request for reconsideration of the Director's response.

(3) If the Secretary disapproves a loan or transfer recommended by the Trustees, the Secretary's decision is final.

(4) A decision or reconsideration of a decision is not a contested case within the meaning of the State Government Article, § 10-201 et seq., Annotated Code of Maryland.

J. Withdrawal of Application.

(1) An applicant for a loan may withdraw an application at any time before closing of the loan by written notice to the Trust. The applicant shall bear any costs incurred, including, but not limited to, title examinations, credit reports, and appraisals.

(2) An applicant for a transfer may withdraw an application at any time before funds have been transferred.

K. Inspections. The Trust may conduct inspections of the historic property as set forth below:

(1) Initial Inspections. Upon receipt of an application the Trust may conduct an initial inspection to determine the condition of the historic property and whether the proposed activities are eligible.

(2) Payment and Progress Inspections. The Trust may conduct periodic inspections during the construction of the project to:

(a) Ensure that activities are eligible, or that work is conducted in a satisfactory manner;

(b) Ensure conformance with any applicable standards established by the Trust, including, without limitation, the standards for acquisition, rehabilitation, and restoration referred to in Regulation .08A(9) of this chapter; and

(c) Verify percentage of completed work before releasing draws

L. Loan Closing. The closing of the loan shall be scheduled at a time and place acceptable to the borrower, the Trust, and the Offices of the Attorney General.

Md. Code Regs. 34.04.02.06

Regulation .06C amended effective January 2, 1994 (20:25 Md. R. 1944)
Regulation .06 amended effective July 9, 2012 (39:13 Md. R. 786); amended effective 51:16 Md. R. 744, eff. 8/19/2024.