Md. Code, Hous. & Cmty. Dev. | Maryland Code, Housing and Community Development

Title 1

Subtitle 1

§ 1-101

(a) In this Division I of this article the following words have the meanings indicated.

(b) (1) “Community assistance” means activities designed to enhance the physical, social, or economic environment of a community to improve the health, safety, or socio–economic welfare of its citizens.

(2) “Community assistance” includes the promotion of activities specified in paragraph (1) of this subsection through the concentration and coordination in communities in the State of federal, State, regional, and local public and private resources.

(d) “Department” means the Department of Housing and Community Development.

(e) (1) “Financial assistance” means any form of assurance, guarantee, grant, payment, or other assistance.

(2) “Financial assistance” includes a loan, loan guarantee, or reduction in the principal obligations of or rate of interest payable on a loan or portion of a loan.

(f) “Governmental unit” means an agency, authority, board, commission, council, office, or other unit or instrumentality of the government of the State or of a political subdivision of the State.

(g) “Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of a private shareholder or individual holding an interest in the entity.

(h) “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, partnership, firm, association, corporation, or other entity.

(i) “Political subdivision” means a county or municipal corporation of the State.

(j) “Secretary” means the Secretary of Housing and Community Development.

(k) “Veteran” has the meaning stated in § 9–901 of the State Government Article.

§ 1-102

(a) (1) In this section the following words have the meanings indicated.

(2) “Adaptive reuse” means the retrofitting and repurposing of an existing building to develop new dwelling units.

(3) “Affordable multifamily housing” means a multifamily dwelling where all or a portion of the dwelling units are reserved for individuals whose household income is less than or equal to a certain limit on maximum household income.

(b) (1) Subject to paragraph (2) of this subsection, this section applies to any program operated by the Department that awards loans that may be used to develop affordable multifamily housing.

(2) If the laws or regulations governing a particular program establish more specific rules regarding the use of loan proceeds for adaptive reuse, the more specific rules shall apply.

(c) (1) Adaptive reuse of a property to develop affordable multifamily housing is an eligible use of the proceeds of a loan covered under this section.

(2) (i) Subject to subparagraph (ii) of this paragraph, the Department shall notify applicants for a loan covered under this section that adaptive reuse of a property to develop affordable multifamily housing is an eligible use of loan proceeds.

(ii) The notice requirement under subparagraph (i) of this paragraph does not apply when an individual applies for a loan under a Department program that does not focus on housing, including programs within the Division of Neighborhood Revitalization.

Title 2

Subtitle 1

§ 2-101

There is a Department of Housing and Community Development, established as a principal department of State government.

§ 2-102

(a) The Department shall:

(1) encourage and assist political subdivisions and public and private community organizations to develop mutual and cooperative solutions to their common problems;

(2) serve as a clearinghouse for information and materials that may be pertinent to sound community assistance, including information on available federal, State, and private financial assistance and technical assistance;

(3) implement model or demonstration programs and projects or otherwise provide a program of practical research in community assistance;

(4) provide grants and loans for energy conservation and the use of solar energy in commercial and residential buildings;

(5) provide advisory, consultative, training, and educational services, and technical assistance to any political subdivision, local public agency, or nonprofit organization for community assistance purposes;

(6) contract for and accept a gift, grant, contribution, or loan of money, property, or other aid for community assistance from a governmental unit, the federal government, or another source and comply with the terms and conditions of that aid;

(7) attach terms and conditions to financial assistance as the Secretary determines;

(8) participate with political subdivisions, regional governments, organizations, and the federal government in developing, financing, and implementing a program to build the management capabilities of municipal corporations by supplying needed managerial expertise through circuit riding managers;

(9) administer federal programs relating to community assistance; and

(10) develop and implement a weatherization program in accordance with Title 4 of this article and administer the low–income weatherization component of the electric universal service program in accordance with § 7–512.1 of the Public Utilities Article.

(b) The Department may:

(1) sell any mortgage or other obligation that the Department holds at public or private sale, with or without public bidding;

(2) retain the servicing rights and charge servicing fees for any mortgage or other obligation that the Department sells; and

(3) apply the proceeds from any sale and servicing fees earned to any of the funds established under Title 4, Subtitle 5 of this article.

§ 2-103

(a) (1) With the advice and consent of the Senate, the Governor shall appoint the Secretary.

(2) The Secretary is the head of the Department.

(b) Before taking office, the Secretary shall take the oath required by Article I, § 9 of the Maryland Constitution.

(2) The Secretary shall counsel and advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on those matters.

(d) The Secretary is entitled to the compensation provided in the State budget.

§ 2-104

(a) The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient administration of the Department.

(b) The Secretary may establish, reorganize, or abolish areas of responsibility in the Office of the Secretary as necessary to fulfill the duties assigned to the Secretary.

§ 2-105

The Secretary shall have a seal.

§ 2-106

(a) With the approval of the Governor, the Secretary shall appoint a deputy secretary.

(b) The deputy secretary:

(1) serves at the pleasure of the Secretary; and

(2) is entitled to the compensation provided in the State budget.

§ 2-107

(a) (1) In the Office of the Secretary, the Secretary shall have assistants, professional consultants, and employees as provided in the State budget.

(2) The Secretary may designate a staff assistant to be in charge of a particular area of responsibility within the Office of the Secretary.

(b) In the Office of the Secretary:

(1) each staff assistant in charge of a particular area of responsibility and each professional consultant serves at the pleasure of the Secretary; and

(2) except as otherwise provided by law, the Secretary shall appoint and may remove all other employees in accordance with the State Personnel and Pensions Article.

§ 2-108

(a) The appointment or removal of personnel by a governmental unit in the Department is subject to the approval of the Secretary.

(b) The Secretary may delegate this power of approval to the head or governing body of the governmental unit.

§ 2-109

Each governmental unit in the Department shall report to the Secretary or the Secretary’s designee as provided in regulations or written directives that the Secretary issues.

§ 2-110

Whenever law provides that an appointment is to be made by the Secretary with the approval of the Governor and the appointee is to serve at the pleasure of the Secretary, the Secretary may not remove the appointee without the prior approval of the Governor.

§ 2-111

(a) The Secretary is responsible for adopting regulations for the Office of the Secretary.

(b) The Secretary shall review and may approve, disapprove, or revise the regulations of each governmental unit in the Department.

§ 2-112

The Secretary is responsible for the budget of each governmental unit in the Department.

§ 2-113

(a) The Secretary is responsible for the coordination and direction of all planning initiatives of the Secretary.

(b) The Secretary shall keep apprised of and may approve, disapprove, or modify plans, proposals, and projects of the Department and its governmental units.

§ 2-114

The Secretary may call a special meeting of a governmental unit in the Department whenever the Secretary considers it necessary.

§ 2-115

The Secretary may exercise or perform any power, duty, responsibility, or function assigned to a governmental unit in the Department.

§ 2-116

(a) This section does not apply to a governmental unit in the Department to the extent that the governmental unit is authorized by law to employ its own legal adviser or counsel.

(b) The Attorney General is the legal adviser to the Department.

(c) The Attorney General shall assign to the Department the number of assistant Attorneys General authorized by law for the Department and its governmental units.

(d) An assistant Attorney General shall be a lawyer of the State in good standing.

(e) An assistant Attorney General is entitled to the compensation provided in the State budget.

(f) (1) The Attorney General shall designate one of the assistant Attorneys General as counsel to the Department and may not reassign the counsel without consulting the Secretary.

(2) The counsel to the Department has no duty other than to:

(i) give the legal aid, advice, and counsel that the Secretary and the other officials of the Department require; and

(ii) supervise the other assistant Attorneys General assigned to the Department.

(3) The counsel shall perform the duties specified in paragraph (2) of this subsection subject to the control and discretion of the Attorney General.

(g) (1) The counsel and the other assistant Attorneys General in the Department shall perform those duties that the Attorney General assigns.

(2) The Attorney General may require an assistant Attorney General to perform, subject to the Attorney General’s control and discretion, any duty for the Department required of the Attorney General by law.

Subtitle 2

§ 2-201

The Department consists of:

(1) the Division of Credit Assurance;

(2) the Division of Development Finance;

(3) the Division of Neighborhood Revitalization;

(4) the Community Development Administration;

(5) the Community Legacy Program;

(6) the Housing Finance Review Committee;

(7) the Lead Hazard Advisory Committee;

(8) the Maryland Housing Fund;

(9) the Neighborhood Business Development Program;

(10) the Historic Property Revitalization Director; and

(11) any other governmental unit that under law is a part of the Department.

§ 2-202

(a) (1) The Department shall establish advisory councils, boards, and committees as the Governor and the Secretary determine.

(2) The Governor and the Secretary shall determine:

(i) the size of the advisory bodies;

(ii) the qualifications, method of appointment, terms, and compensation of members;

(iii) the manner of removal of members; and

(iv) the method of filling vacancies.

(b) The advisory units shall advise and assist the Secretary on policies, programs, and activities of the Department.

§ 2-203

(a) (1) In this section the following words have the meanings indicated.

(2) “Affordable housing” means residential property that is rented or sold to the public as low–income housing or workforce housing.

(3) “Area median income” has the meaning stated in § 4–1801 of this article.

(4) “Low–income housing” means housing that is affordable for a household with an aggregate annual income that is below 60% of the area median income.

(5) “Workforce housing” has the meaning stated in § 4–1801 of this article.

(b) (1) (i) Not later than 60 days after the notice provided under § 5–310(d) of the State Finance and Procurement Article, the Department shall, in consultation with the unit of State government that controls the property, determine if the property is suitable for use or redevelopment as affordable housing.

(ii) The Department may not identify a property as suitable for use or redevelopment as affordable housing if the property:

1. is located outside an area designated as a priority funding area under Title 5, Subtitle 7B of the State Finance and Procurement Article; or

2. belongs in a category of property listed in § 5–310(c)(1)(i) of the State Finance and Procurement Article.

(iii) When determining if a property is suitable for use or redevelopment as affordable housing, the Department shall consider whether the property:

1. is adequately sized for any type of residential use;

2. has access to public utilities;

3. has access to feasible ingress and egress points; and

4. meets any other factors determined by the Department that are necessary for the property to be used or redeveloped as affordable housing.

(2) The Department shall compile and regularly update a list of properties it has determined are suitable for use or redevelopment as affordable housing.

(3) For each property included in the list required under paragraph (2) of this subsection, the Department shall:

(i) give notice of the determination to:

1. the unit of State government that controls the property; and

2. the State Treasurer; and

(ii) advise the unit of State government of the requirements of subsection (c) of this section.

(4) The list required under paragraph (2) of this subsection shall be made available to the public.

(c) (1) (i) Except as provided in paragraphs (4) and (5) of this subsection, on receipt of the notice required under subsection (b)(3) of this section, the unit of State government shall, in consultation with the Department and the Department of Planning, develop a proposal to donate or sell the listed property by:

1. donating or selling the property to a nonprofit organization that contracts to use or redevelop the property as affordable housing; or

2. selling the property to a buyer that contracts to use or redevelop the property as affordable housing.

(ii) If, after reasonable effort, the unit is unable to identify a suitable nonprofit organization or buyer in accordance with subparagraph (i) of this paragraph, the unit shall develop a proposal to sell the property at auction.

(iii) A proposal developed under this paragraph shall be submitted to the Board of Public Works for consideration in accordance with § 10–305 of the State Finance and Procurement Article.

(2) The unit of State government shall consider the proposed period of affordability, the number of affordable housing units created, and the viability of an offer when evaluating offers from multiple nonprofit organizations or buyers under this subsection.

(3) When a property is donated or sold in accordance with a proposal developed under this subsection, the unit shall give notice of the disposition to the Department.

(4) A unit may not propose to donate or sell a property under this subsection if the donation or sale would:

(i) violate any covenant or applicable federal law; or

(ii) in the opinion of the State Treasurer, adversely affect the tax–exempt status of an outstanding State bond, the proceeds of which were allocated to purchase or improve the property.

(5) Nothing in this subsection shall be construed to supersede the right of a person from whom real property was acquired or their successor in interest to reacquire the property under § 8–309 of the Transportation Article.

(d) On or before December 31, 2024, and each December 31 thereafter, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article:

(1) the number of proposals submitted to the Board of Public Works under this section;

(2) the number of properties that were donated pursuant to proposals developed under this section; and

(3) the number of properties that were sold pursuant to proposals developed under this section.

§ 2-204

(a) There is a Historic Property Revitalization Director.

(b) The Historic Property Revitalization Director shall:

(1) support the work of the Sustainable Growth Subcabinet;

(2) collect and maintain from State agencies that own property an inventory of State–owned buildings that are greater than 50 years old to be used for prioritizing physical assessments and, if applicable, determining eligibility for the National Register of Historic Places;

(3) in consultation with the Sustainable Growth Subcabinet and to determine the highest and best value for the State’s disposition of property, support studies and consultations relevant to:

(i) stabilization;

(ii) mothballing;

(iii) environmental impacts;

(iv) economic prospects; and

(v) long–term ground leases;

(4) work with the Department, the Department of Commerce, and other members of the Sustainable Growth Subcabinet to identify existing State and federal programs and financing mechanisms that may be leveraged to enhance the successful redevelopment of property;

(5) work with the Department of General Services Office of Real Estate during the disposition process of relevant property; and

(6) on or before October 1, 2026, and each October 1 thereafter, and in consultation with the Sustainable Growth Subcabinet, report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the progress of efforts under this subsection.

Subtitle 3

§ 2-301

On or before December 1, 2019, and each December 1 thereafter, the Department shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:

(1) with respect to financial assistance provided under Title 4, Subtitle 2 of this article:

(i) the number of projects that qualified as business projects under § 4–223 of this article;

(ii) the location of each business project, including whether the business project is located:

1. in an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or

2. only in a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code; and

(iii) the amount of grants or loans provided for the development of each business project;

(2) with respect to the Strategic Demolition and Smart Growth Impact Fund established under § 4–508 of this article:

(i) the number and amount of grants and loans provided to government agencies and community development organizations during the immediately preceding fiscal year; and

(ii) the location of each revitalization project for which a grant or loan was provided, including whether the revitalization project is located:

1. in an area designated as a Sustainable Community; or

2. only in a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code;

(3) with respect to the Community Legacy Program established under Title 6, Subtitle 2 of this article:

(i) the location of each community legacy project, including whether the community legacy project is located:

1. in a sustainable community; or

2. only in an eligible opportunity zone; and

(ii) the amount of financial assistance provided for each community legacy project; and

(4) with respect to the Business Development Program established under Title 6, Subtitle 3 of this article:

(i) the names of approved entities awarded financial assistance under that program;

(ii) the location of the approved entity’s operation, including whether the approved entity’s operation is located:

1. in a priority funding area; or

2. only in an eligible opportunity zone; and

(iii) the amount of each financial assistance award.

§ 2-302

(a) On or before December 1, 2023, and on or before December 1 every 5 years thereafter, the Department, in consultation with political subdivisions and housing authorities, shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:

(1) the efforts by the State, political subdivisions, and housing authorities to promote fair housing choice and racial and economic housing integration, and the results of those efforts, delineated by county; and

(2) any assessment of fair housing required under § 3–114(d)(2) of the Land Use Article completed since the most recent report required under this subsection, including any assessment of fair housing completed or revised under the federal Department of Housing and Urban Development’s most recently published Affirmatively Furthering Fair Housing Rule.

(b) The report required under subsection (a) of this section shall provide an update on the actions being taken by local jurisdictions to affirmatively further fair housing.

(c) The Department shall work in partnership with each local jurisdiction to jointly develop and complete a template to capture data in the jurisdiction related to affirmatively furthering fair housing.

§ 2-303

(a) (1) In this section the following words have the meanings indicated.

(2) “Common ownership community” means:

(i) a condominium, as defined in § 11–101 of the Real Property Article;

(ii) a cooperative housing corporation, as defined in § 5–6B–01 of the Corporations and Associations Article; or

(iii) a homeowners association, as defined in § 11B–101 of the Real Property Article.

(3) “Local common ownership community program” means a program operated by a local jurisdiction for the regulation or oversight of common ownership communities.

(b) The Department shall establish and maintain a website that provides information for individuals living in a common ownership community.

(1) a hyperlink to the website of each local common ownership community program in the State;

(2) information on statewide legislation enacted in the prior legislative session regarding the rights and responsibilities of individuals living in a common ownership community, including, for each bill that is enacted:

(i) the bill title;

(ii) the bill and chapter number;

(iii) the effective date of the bill; and

(iv) a hyperlink to the bill information on the General Assembly website;

(3) (i) a summary of the requirements for the governing body of a common ownership community and for an individual seeking to install electric vehicle recharging equipment in a common ownership community under § 5–6B–23.1 of the Corporations and Associations Article and §§ 11–111.4 and 11B–111.8 of the Real Property Article;

(ii) information on contractors, including specific information on contractors certified through labor–management training programs, and insurers for the installation of electric vehicle recharging equipment in a common ownership community; and

(iii) a point of contact in the Department to assist individuals with questions relating to electric vehicle recharging equipment in common ownership communities; and

(4) information on resources available to individuals living in common ownership communities to aid in dispute resolution between the individual and the common ownership community.

(d) The information required under subsection (c)(2) of this section shall be posted on the Department’s common ownership community website on or before June 1 each year.

Subtitle 4

§ 2-401

(a) In this subtitle the following words have the meanings indicated.

(b) (1) “Affirmatively further fair housing” means to take meaningful actions, in addition to actions aimed at combating discrimination, to:

(i) overcome patterns of segregation; and

(ii) foster inclusive communities free from barriers that restrict access to housing and opportunity based on protected characteristics.

(2) “Affirmatively further fair housing” includes to take meaningful actions that, taken together:

(i) address significant disparities in housing needs and access to opportunity;

(ii) replace segregated living patterns with truly integrated and balanced living patterns;

(iii) transform racially and ethnically concentrated areas of poverty into areas of opportunity; and

(iv) foster and maintain compliance with civil rights and fair housing laws.

(c) “Meaningful action” means a significant action that is designed and can be reasonably expected to achieve a material positive change by, for example, increasing fair housing choice or decreasing disparities in access to opportunity.

§ 2-402

(a) The Department:

(1) shall administer its programs and activities related to housing and community development to affirmatively further fair housing;

(2) shall explore ways to ensure it is collaborating with and supporting nonprofit and governmental entities devoted to furthering fair housing; and

(3) may not take any action that is materially inconsistent with the obligation to affirmatively further fair housing.

(b) (1) The Department shall require political subdivisions and housing authorities to affirmatively further fair housing.

(2) To ensure that political subdivisions and housing authorities affirmatively further fair housing, the Department shall, in accordance with § 3–114(d)(2) of the Land Use Article, require a political subdivision or housing authority to submit an assessment of fair housing to the Department as part of the housing element of a comprehensive plan.

(1) require a political subdivision or housing authority to take a specific action to affirmatively further fair housing; or

(2) prohibit a political subdivision or housing authority from taking a specific action to affirmatively further fair housing.

Title 3

Subtitle 1

§ 3-101

In this subtitle, “Division” means the Division of Credit Assurance.

§ 3-102

There is a Division of Credit Assurance.

§ 3-103

The Division includes:

(1) the Maryland Housing Fund, a governmental unit of the Department; and

(2) loan asset management for the Department.

§ 3-104

The Division shall administer each program assigned to the Division by law or by the Secretary.

Subtitle 2

§ 3-201

(a) In this subtitle the following words have the meanings indicated.

(b) “Business project” has the meaning stated in § 4–201 of this article.

(c) “Credit enhancement” means a guarantee, including a guarantee of an obligation backed by a pool of mortgages, or other assurance or security device issued to:

(1) improve the credit of a qualified borrowing entity; or

(2) upgrade the security or rating of a financial obligation, including:

(i) a mortgage backed security;

(ii) a certificate of participation; and

(iii) a bond or note issued to finance a development activity described in this subtitle.

(d) “Energy conservation project” has the meaning stated in § 4–201 of this article.

(e) “Financing” includes acquisition financing, permanent financing, short–term bridge financing, construction financing, and refinancing of a loan or project authorized under this subtitle.

(f) “Fund” means the Maryland Housing Fund.

(g) “Housing” includes:

(1) a single dwelling unit;

(2) a multiple dwelling unit;

(3) an accessory unit residential facility;

(4) a shared–living unit facility, accommodating at least two individuals or families, in which some or all of the living, dining, kitchen, or sanitary facilities are shared; and

(5) an ancillary commercial or other facility that is related to, incidental to, and supportive of the housing.

(h) “Infrastructure project” has the meaning stated in § 4–201 of this article.

(i) “Mortgage” includes:

(1) a deed of trust, a security agreement, and a pledge; and

(2) any other security arrangement securing a loan, including a mortgage, to finance:

(i) the purchase of stock or membership in a cooperative ownership housing corporation; or

(ii) the construction or rehabilitation of dwelling units in a cooperative ownership housing corporation.

(j) “Public purpose project” has the meaning stated in § 4–201 of this article.

(k) “Solar energy project” has the meaning stated in § 4–201 of this article.

§ 3-202

(a) (1) The General Assembly finds that:

(i) the flow of private investment capital into businesses and adequate housing can be stimulated by a system insuring qualified lending institutions against losses resulting from nonpayment of money owed under the terms of a note, bond, or other evidence of indebtedness; and

(ii) the insurance can help State and local activity to finance businesses, housing, and rehabilitation.

(2) The General Assembly also finds that adequate housing can and should be provided by private capital under our free enterprise system and in accordance with sound investment practices.

(3) The General Assembly finds as a subject of concern that:

(i) many residents of the State are living in substandard housing; and

(ii) there is a shortage of housing at reasonable costs for various income levels.

(b) The General Assembly finds that it is in the public interest to promote energy conservation projects and solar energy projects by providing insurance for:

(1) loans made by qualified lending institutions; and

(2) bonds or notes issued to finance the projects.

(c) The General Assembly finds that the sale of pooled mortgages or securities backed by mortgages to private or public investors, including public and private pension funds, is in the public interest and could increase the investment capital available to make mortgage loans to:

(1) acquire, construct, and rehabilitate housing; and

(2) acquire, operate, construct, and rehabilitate businesses.

(d) (1) In this subsection, “distressed area” has the meaning stated in § 4–201 of this article.

(2) The General Assembly finds that it is in the public interest to encourage the financing of, and otherwise to support, the planning, acquisition, development, construction, reconstruction, rehabilitation, repair, renovation, and other improvement of:

(i) public purpose projects in distressed areas in the State; and

(ii) infrastructure projects.

(e) The General Assembly finds that the flow of public and private capital to support the activities specified in this section will be encouraged and expanded by:

(1) insuring:

(i) loans made by qualified lending institutions;

(ii) bonds or notes issued by qualified issuers; and

(iii) obligations backed by mortgages; and

(2) providing other credit enhancements.

§ 3-203

(a) There is a Maryland Housing Fund.

(b) The Fund shall further the State interests expressed in § 3-202 of this subtitle.

(d) (1) The Fund is a continuing, nonlapsing special fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(2) The Department shall deposit money for the Fund with the State Treasurer.

(3) The money shall be held in the financial institutions that the State Treasurer considers proper and shall be accounted for by the Comptroller in a special account known as the “Maryland Housing Fund”.

(4) All premium and fee income shall be credited to the Fund to operate the Fund and to provide additional insurance, guarantees, and credit enhancement.

(e) The Fund consists of:

(1) money appropriated by the State to the Fund;

(2) proceeds of any State loan to the extent provided by the General Assembly or any governmental unit authorized to issue bonds for the Fund;

(3) fees and premiums that the Department receives in connection with insurance or other credit enhancement provided by the Fund; and

(4) all other money made available to the Department from any source for the purposes set forth in this subtitle.

(f) Money in the Fund shall be invested in the same manner as other State money.

(g) (1) Money in the Fund shall be used to:

(i) insure loans that the Department accepts under this subtitle;

(ii) insure bonds or notes issued to finance a project that is eligible for insurance under this subtitle; and

(iii) provide other forms of credit enhancement under this subtitle.

(2) Money in the Fund that by agreement, contract, secretarial determination, or regulation has been created as an identifiable insurance or credit reserve may be used only in conformance with the terms and conditions creating the reserve.

(h) The Secretary may transfer to any reserve:

(1) operational money;

(2) earnings not yet allocated to a particular reserve;

(3) State appropriated money;

(4) proceeds of State general obligation bonds; or

(5) other money received and not allocated to a particular reserve.

(i) (1) Beginning in fiscal year 2010, if the balance of the unallocated reserve of the Fund at the end of any fiscal year exceeds $10,000,000, the excess over $10,000,000 shall be transferred by the Governor to the:

(i) Homeownership Programs Fund established under § 4–502 of this article;

(ii) Rental Housing Programs Fund established under § 4–504 of this article; and

(iii) Special Loan Programs Fund established under § 4–505 of this article.

(2) The distribution of any money transferred from the Fund to the Homeownership Programs Fund, the Rental Housing Programs Fund, and the Special Loan Programs Fund shall be at the discretion of the Secretary.

§ 3-204

Insurance, a guarantee, or other credit enhancement provided under this subtitle:

(1) does not pledge the faith, credit, or taxing power of the State or the Department; and

(2) is payable only to the extent of the reserve or other identified money backing the insurance, guarantee, or credit enhancement.

§ 3-205

(a) In this section, “development costs” has the meaning stated in § 4-201 of this article.

(b) The Department, in its own name or in the name of the Fund:

(1) may insure or guarantee on terms that it specifies a mortgage or pool of mortgages offered or bonds or notes issued that are eligible for insurance under § 3-202 of this subtitle;

(2) may insure a total of not more than $30,000,000 of bridge loans that are:

(i) made for part of the development costs of rental housing projects that are awarded federal low income housing tax credits; and

(ii) secured by personal rather than real property;

(3) may provide other forms of credit enhancement on terms that it specifies for qualified lenders and borrowers who otherwise cannot get credit enhancement in the private market;

(4) may issue obligations in any form backed by a pool of mortgages, including:

(i) securities;

(ii) certificates of participation;

(iii) grantor trusts;

(iv) collateralized mortgage obligations; and

(v) pass-through certificates;

(5) notwithstanding Titles 10 through 17 of the State Finance and Procurement Article, after a default under an obligation that is insured or otherwise backed by a credit enhancement under this subtitle, may acquire, hold, improve, operate pending sale or other disposition, sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber:

(i) real property or an interest in real property;

(ii) personal property or an interest in personal property; or

(iii) evidence of indebtedness, including:

1. pass-through certificates;

2. residual interests; and

3. other securities backed by real estate or a mortgage; and

(6) in connection with a property, whether or not insured by the Fund, acquired by the Department or the Fund through foreclosure, through deed in lieu of foreclosure, or in settlement for a claim for loss:

(i) may contract with a private party for services to secure, maintain, operate, or improve the property in anticipation of disposition of the property, without requiring that the contract comply with Division II of the State Finance and Procurement Article; or

(ii) may make a mortgage loan to assist in the disposition of the property.

§ 3-206

(a) In offering insurance and other forms of credit enhancement, the Department shall adopt eligibility standards that are reasonable to aid in:

(1) financing the purchase, construction, or rehabilitation of:

(i) housing projects;

(ii) special housing facility projects, consisting of the acquisition, rehabilitation, improvement, renovation, construction, financing, or refinancing of a building that:

1. provides common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities;

2. may include supportive services or supervisory live–in personnel for individuals with specialized housing needs; and

3. may include nonresidential facilities to serve individuals with special needs who may or may not be residents of the special housing facility;

(iii) rehabilitation projects, as defined in § 4–901 of this article;

(iv) energy conservation projects;

(v) solar energy projects;

(vi) public purpose projects;

(vii) infrastructure projects; or

(viii) business projects; and

(2) the sale or other transfer of an obligation that is:

(i) denoted as a bond, note, collateralized obligation, grantor trust, conduit, or other form of security or obligation; and

(ii) backed directly or indirectly by a mortgage or a payment derived from a mortgage.

(b) The standards adopted under subsection (a) of this section shall ensure that a lender benefiting from insurance or other credit enhancement provided by the Department is responsible and able to service the loan.

(c) A determination by the Secretary is conclusive if it relates to the eligibility of a project, facility, or undertaking for:

(1) insurance or other credit enhancement; or

(2) other action taken by the Department, in its own name or in the name of the Fund, under this subtitle.

§ 3-207

(a) The Department shall adopt regulations that are necessary to carry out the purpose of this subtitle.

(b) (1) Annually, on or before December 1, the Department shall make a written report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the financial status of the Fund and its operations for the preceding fiscal year.

(2) The report shall include the types and amount of:

(i) insurance reserves;

(ii) insurance issued;

(iii) premiums charged; and

(iv) claims made.

§ 3-208

This subtitle shall be liberally construed to carry out the findings set forth in § 3-202 of this subtitle.

Title 4

Subtitle 1

§ 4-101

(a) In this title the following words have the meanings indicated.

(b) “Administration” means the Community Development Administration.

(d) “Elderly household” means, except as provided in § 4–2901 of this title, one or more individuals who occupy a residential dwelling unit, at least one of whom meets the age limit specified by the Secretary that:

(1) is greater than or equal to age 55; and

(2) may vary for different programs or types of projects.

(e) “Nonprofit sponsor” means a sponsor that is:

(1) a nonprofit organization; or

(2) a limited partnership, if:

(i) 1. each general partner is a nonprofit organization; or

2. each general partner is a wholly owned subsidiary of a nonprofit organization;

(ii) the limited partnership is formed to undertake a project that is eligible as a whole or in part for a federal program or incentive, including low–income housing tax credits; and

(iii) a nonprofit organization manages the project or will receive the net cash flow or residual sale proceeds on the sale of the project.

§ 4-102

There is a Division of Development Finance.

§ 4-103

The Division includes:

(1) the Community Development Administration;

(2) the Disaster Relief Housing Program;

(3) the Down Payment and Settlement Expense Loan Program;

(4) federal and State weatherization programs;

(5) the Group Home Financing Program;

(6) the Lead Hazard Reduction Grant Program;

(7) the Lead Hazard Reduction Loan Program;

(8) the local government infrastructure program;

(9) the Maryland Home Financing Program;

(10) the Maryland Housing Rehabilitation Program;

(11) the Neighborhood Housing Services Fund;

(12) the Operating Assistance Grants Demonstration Projects;

(13) the Partnership Rental Housing Program;

(14) the Radium Grant Program;

(15) the Rental Allowance Program, the Statewide Rental Assistance Voucher Program, and other rental assistance programs;

(16) the Rental Housing Program; and

(17) the Self–Help Homeownership Technical Assistance Program.

§ 4-104

The Division shall conduct outreach to facilitate the investment by qualified opportunity funds, as defined in § 1400Z–2 of the Internal Revenue Code, in urban, suburban, and rural neighborhoods in the State.

Subtitle 2

§ 4-201

(a) In this subtitle the following words have the meanings indicated.

(b) “Business project” means a project that qualifies under § 4–223 of this subtitle.

(1) is used primarily to carry on a business whether or not for profit;

(2) is not a residential building; and

(3) is not used primarily to manufacture or produce raw materials, products, or agricultural commodities.

(d) “Commercial energy audit” means:

(1) an energy audit performed for purposes of Title VII of the National Energy Conservation Policy Act, 42 U.S.C. §§ 6201 through 6422; or

(2) an onsite inspection of a commercial building that includes a determination of, and provides information on:

(i) the type, quantity, and rate of energy consumption of the building;

(ii) the maintenance and operation procedures to reduce the energy consumption of the building; and

(iii) the cost of implementing an appropriate energy conservation project, a solar energy project, or both, and the savings in energy costs likely to result from the project.

(e) “Community development project” means a project that qualifies under § 4–217 of this subtitle.

(f) (1) “Development costs” means the costs that the Department considers reasonable and necessary to carry out:

(i) a community development project;

(ii) an energy conservation project;

(iii) a home improvement project;

(iv) an infrastructure project;

(v) a public purpose project;

(vi) a solar energy project;

(vii) a special housing facility; or

(viii) a business project.

(2) “Development costs” includes:

(i) the costs of:

1. studies, surveys, plans and specifications, and architectural, engineering, or other special services;

2. acquisition of land and any buildings on the land;

3. site preparation and development, construction, reconstruction, rehabilitation, and improvement; and

4. acquisition of machinery, equipment, and furnishings;

(ii) expenses incurred in connection with initial occupancy or operation of the project;

(iii) an allocable portion of the administrative and operating expenses of the Department;

(iv) the cost of financing the project, including interest on bonds and notes issued to finance the project from the date issued to the date the Department determines that the project is substantially occupied or substantially in operation;

(v) the cost of other items, including indemnity and surety bonds, premiums on insurance, fees, relocation costs, and charges and expenses of trustees, depositories, and paying agents for bonds and notes issued; and

(vi) operating and expansion costs for business projects.

(g) “Director” means the Director of the Administration.

(h) “Energy conservation project” means a project that qualifies under § 4–218 of this subtitle.

(i) “Family of limited income” means a family or individual whose income does not exceed the upper income limits established by the Secretary under § 4–212 of this subtitle.

(j) “Home improvement project” means a project that qualifies under § 4–219 of this subtitle.

(k) “Infrastructure project” means a project that qualifies under § 4–220 of this subtitle.

(l) “Limited dividend corporation” means a corporation that:

(1) qualifies as a limited dividend corporation under the Moderate–Income Rental Program of the National Housing Act, Title 12, Chapter 13 of the United States Code; and

(2) is operated only to further a community development project.

(m) “Local development agency” means the governmental unit of a political subdivision that the chief executive officer of the political subdivision designates to carry out community development under this subtitle.

(n) “Local development entity” means a corporation or foundation, no part of the net earnings of which inures to the benefit of a private shareholder or individual, that is organized and operated primarily to foster, encourage, and assist community development in the State.

(o) “Local obligation” means a bond, note, or other obligation of a political subdivision or a governmental unit of a political subdivision.

(p) “Public purpose project” means a project that qualifies under § 4–221 of this subtitle.

(q) “Residential building” means a single family or multifamily structure that is used primarily for human dwelling and that has a system for heating, cooling, or both.

(r) “Residential energy audit” means:

(1) an inspection or energy audit of a residential building or a dwelling unit in a residential building performed for purposes of Title II or Title VII of the National Energy Conservation Policy Act, Title 42, Chapter 91 of the United States Code; or

(2) an onsite inspection of a residential building or a dwelling unit in a residential building that includes a determination of and provides information on:

(i) the type, quantity, and rate of energy consumption of the building or dwelling unit;

(ii) maintenance and operating procedures to reduce the energy consumption of the residential building or dwelling unit; and

(iii) the cost of implementing an appropriate energy conservation project, solar energy project, or both, and the savings in energy costs that are likely to result from the project.

(s) “Residential mortgage loan” means a loan, including a temporary loan or advance, that is secured by a mortgage of real property in the State that is:

(1) improved by a residential building; or

(2) unimproved, if the loan proceeds are to be used to construct a residential building.

(t) “Solar energy project” means a project that qualifies under § 4–222 of this subtitle.

(u) “Special housing facility” means a project or undertaking for the refinancing, acquisition, rehabilitation, improvement, renovation, or construction of a building that:

(1) will be occupied in substantial part by families of limited income;

(2) will provide common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities;

(3) may include supportive services or supervisory live–in personnel for individuals with specialized housing needs;

(4) may include nonresidential facilities to serve individuals with special needs who need not be residents of the project or undertaking; and

(5) is not subject to § 4–213(b) of this subtitle.

(v) “Sustainable community” has the meaning stated in § 6–201 of this article.

§ 4-202

The General Assembly finds that:

(1) in this era of rapid population growth and expansion and of increasing urbanization, there is a need in many areas of the State to promote sound community development;

(2) the political subdivisions do not have adequate resources to deal effectively with all of the problems of sound community development, and the ordinary operations of private enterprise cannot deal with them without State assistance;

(3) there is a need to coordinate and concentrate federal, State, regional, and local public and private community development efforts and resources;

(4) there is a shortage of adequate, safe, and sanitary housing for families of limited income, and increasing the housing supply for families of limited income will ease the shortage and promote sound community development;

(5) increasing opportunities for homeownership is desirable and promotes sound community development;

(6) reducing energy consumption and increasing the use of solar energy by providing financial assistance to encourage energy conservation and solar energy improvements to residential buildings and commercial buildings promote sound community development and the public interest;

(7) the public infrastructure maintained by political subdivisions, including streets, sidewalks, curbs, sewer and water systems, bridges, and public buildings, needs rehabilitation and construction;

(8) the resources necessary for financing infrastructure projects have become scarcer in recent years;

(9) providing an additional, accessible, and uncomplicated mechanism to finance infrastructure projects promotes sound community development, is vital to a strong economy, improves the quality of the environment, and otherwise promotes the health, safety, and welfare of the residents of the State;

(10) promoting sound community development is a proper public purpose and State use, for which public money may be spent and property may be acquired; and

(11) the functions and responsibilities of the Administration set forth in this subtitle are necessary to achieve the ends listed in this section.

§ 4-203

(a) To attract and retain teachers in the State by increasing homeownership opportunities, the General Assembly finds that there is a need to authorize the Department to develop a program to dedicate up to $25,000,000 over 5 years to provide mortgage loans to teachers at interest rates below the prevailing interest rate for similar programs.

(b) (1) A mortgage loan under this section shall be available to a teacher who is a first–time home buyer.

(2) The loan shall be conditioned on an agreement by the teacher to teach in the State for at least 3 years if work is available for the teacher.

(3) The loan shall be used to purchase property in a priority funding area as defined in §§ 5–7B–02 and 5–7B–03 of the State Finance and Procurement Article.

(1) the State Department of Education, to ensure that the program is consistent with the State’s strategy to attract and retain teachers; and

(2) local boards of education, to ensure that the program is properly marketed.

§ 4-204

There is a Community Development Administration.

§ 4-205

The Administration is created to:

(1) coordinate activities and programs that contribute to sound community development;

(2) encourage and facilitate the development of new and existing communities by reducing the costs of development through grants, loans, and other forms of financial assistance;

(3) encourage and facilitate energy conservation and the use of solar energy in residential buildings and commercial buildings through grants, loans, and other forms of financial assistance;

(4) make land available for sound community development; and

(5) assist the efforts of private enterprise, political subdivisions, local public agencies, local development entities, and nonprofit organizations.

§ 4-206

(a) Except as provided in subsection (b) of this section, a grant of land or money may be made only to a political subdivision, a local development entity, a local development agency, or a nonprofit organization.

(b) (1) This section does not apply to grants that may be awarded to the Administration under federal law.

(2) The Administration may award grants to home buyers for settlement expenses as provided by the Department under this title.

(3) The Administration may award grants under § 4–235(b)(1)(ii) of this subtitle.

§ 4-207

(a) With the approval of the Governor, the Secretary shall appoint the Director.

(b) The Director serves at the pleasure of the Secretary.

(d) The Director shall operate and exercise the powers of the Administration under the direction of the Secretary and in accordance with this subtitle.

(e) The Director is entitled to:

(1) compensation as provided in the State budget; and

(2) reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.

(f) The Director shall have a staff and professional consultants as provided in the State budget.

§ 4-208

(a) There is a Housing Finance Review Committee.

(b) The Housing Finance Review Committee consists of seven members appointed by the Governor on recommendation of the Secretary as follows:

(1) three employees of the Department, one of whom may be the Secretary;

(2) one employee of the Executive Branch of State government who is not employed by the Department; and

(3) three members of the public.

(2) At the end of a term, a public member continues to serve until a successor is appointed and qualifies.

(3) A public member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.

(d) (1) The Housing Finance Review Committee shall review and make recommendations to the Secretary about:

(i) specific loan requests or categories of loan requests; and

(ii) the investment and project financing policies of the Administration.

(2) The Secretary may approve a specific loan request without a recommendation of the Housing Finance Review Committee if the request requires urgent action.

§ 4-211

(a) The Administration shall:

(1) assist the Governor in coordinating the activities of governmental units of the State that affect the solution of community development problems and the implementation of community plans;

(2) encourage and assist political subdivisions to develop mutual and cooperative solutions to their common problems;

(3) serve as a clearinghouse for information and other materials that may be pertinent to sound community development, including information on available federal, State, and private financial and technical assistance;

(4) carry out continuing studies and analyses of sound community development in cooperation with the Department of Planning;

(5) make recommendations, in cooperation with the Department of Planning, for administrative or legislative action, paying particular attention to the problems of metropolitan, suburban, and other areas;

(6) implement model or demonstration programs and projects, contract to administer functions or services in a political subdivision, or otherwise provide a program of practical research in community development;

(7) promote community development by giving to political subdivisions, local development agencies, local development entities, or nonprofit organizations:

(i) technical assistance and advisory, consultative, training, and educational services; and

(ii) grants and loans to pay for:

1. the services and technical assistance; and

2. any development costs;

(8) (i) contract for and accept from the federal government a grant, contribution, or loan of money, property, or other aid in any form for community development; and

(ii) do all things necessary to qualify for the grant, contribution, or loan, including those things necessary to qualify for assistance as a local public agency or public housing agency under a federal housing or renewal program;

(9) contract for and accept from any governmental unit of the State or other source a gift, grant, contribution, or loan of money, property, or other aid in any form for community development and comply with the terms and conditions of the gift, grant, contribution, or loan;

(10) attach to a sale or lease of property or to a loan or grant the terms and conditions that the Director determines and the Secretary approves;

(11) enter into agreements to make annual payments instead of assessments, charges, or property taxes to a political subdivision in respect to real property that the Administration owns; and

(12) provide money to programs eligible to receive funding from the Neighborhood Business Development Fund under § 6–310 of this article.

(b) To implement community development projects and public purpose projects in accordance with Part V of this subtitle, and subject to §§ 4–213(b) and 4–214 of this subtitle, the Administration may:

(1) (i) acquire, own, and hold land that is open, mainly open, or undeveloped, or any interest in the land;

(ii) install access and interior streets and roads and sewer and water lines in or to the land and otherwise improve the land; or

(iii) transfer, lease, mortgage, or otherwise dispose of or encumber the land;

(2) (i) acquire, own, and hold land that is not open, mainly open, or undeveloped, as well as personal or mixed property;

(ii) manage and operate the property;

(iii) clear, improve, construct, or rehabilitate the property;

(iv) transfer, lease, mortgage, or otherwise dispose of or encumber the property; or

(v) take assignments of rentals or leases for the property;

(3) arrange or contract with a political subdivision or private party in connection with a community development project or public purpose project for:

(i) planning, replanning, zoning, or rezoning;

(ii) opening, grading, or closing streets, roads, alleys, or other places;

(iii) furnishing facilities;

(iv) acquiring property or property rights by the political subdivision; or

(v) furnishing property or services; and

(4) spend Administration money for an undertaking that the Secretary approves.

(c) The Administration shall develop and implement a weatherization program to provide money for insulation materials and insulation costs to households that qualify based on income and the program eligibility guidelines that the Secretary establishes.

(d) (1) (i) In this subsection the following words have the meanings indicated.

(ii) “Covered building” has the meaning stated in § 2–1601 of the Environment Article.

(iii) “Energy conservation project” means a project that qualifies under § 4–218 of this subtitle.

(2) For the purpose of reducing direct greenhouse gas emissions from multifamily residential buildings in accordance with the standards adopted under § 2–1602 of the Environment Article, the Administration shall develop and implement a program to provide grants and loans for energy conservation projects and projects to install renewable energy generating systems in covered buildings that house primarily low– to moderate–income households.

(3) Grants and loans provided under this subsection may not be used for a project to install new equipment that uses fossil fuels or improve the efficiency of existing equipment that uses fossil fuels.

(4) In each of fiscal years 2024 through 2026, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Department for the purpose of providing grants and loans under this subsection.

(5) On or before December 1, 2023, and each December 1 thereafter, the Administration shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the projects funded under this subsection.

§ 4-212

(a) In establishing the upper income limits for a family of limited income, the Secretary shall consider factors including:

(1) the income of the family available for housing;

(2) the size of the family;

(3) the cost and condition of available housing;

(4) the ability of the family to compete in the private housing market; and

(5) standards and definitions established for federal housing programs.

(b) The limits established under subsection (a) of this section may vary for different:

(1) types of housing;

(2) programs of the Administration; and

(3) areas of the State.

§ 4-213

(a) In accordance with regulations that the Secretary adopts, an agreement that the Administration makes to carry out its functions and responsibilities under §§ 4–211, 4–214, and 4–225 through 4–235 of this subtitle shall be approved by:

(1) the Secretary; and

(2) the Board of Public Works, if its approval is required by law.

(b) The Administration shall provide written notice and a reasonable opportunity to comment to the chief executive officer or the equivalent officer and the head or president of the legislative body of the political subdivision in which a proposed community development project or a public purpose project is located.

(c) If the proposed project is located in a municipal corporation, the notice required under subsection (b) of this section shall be sent to the chief executive officer and head or president of the legislative body of the municipal corporation and not to the county.

(d) A project that the Administration finances is subject to applicable zoning and building codes.

(e) (1) This subsection applies notwithstanding any other provision of this subtitle or other State law.

(2) In exercising its functions and responsibilities, the Administration may sell or lease for a term not exceeding 99 years all or part of the real, mixed, or personal property constituting a community development project.

(3) A sale or lease under this section may be made:

(i) without public bidding or public sale; and

(ii) on terms and conditions that make housing in that development economically feasible for families of limited income.

(4) A sale or lease under this section shall conform with a plan for community development that the Secretary approves at a public hearing held after notice is published in at least one newspaper of general circulation in the political subdivision in which the development is located.

(5) The plan for community development presented at the hearing shall be in accordance with regulations that the Secretary adopts, requiring:

(i) a description of the property;

(ii) a statement of the identity of the proposed purchaser or lessee and the proposed use or reuse of the property;

(iii) the price or rental to be paid by the purchaser or lessee; and

(iv) the conditions of the sale or lease that ensure that the community development purposes of this subtitle will be carried out.

(f) In carrying out this subtitle, the Administration shall comply with local laws applicable to the community development project.

(g) (1) In carrying out this subtitle, the Administration shall:

(i) foster local initiative and participation in community development activities; and

(ii) consider local and regional goals and policies as expressed in urban renewal, community renewal, and local comprehensive land use plans and regional plans.

(2) Wherever possible, the Administration shall carry out community development projects together with and through the use of:

(i) private enterprise;

(ii) limited dividend corporations;

(iii) local development agencies; and

(iv) local development entities.

§ 4-214

The Administration has the power of eminent domain, but may not exercise it in a political subdivision without the consent of the political subdivision given by ordinance of its governing body for a specific community development project.

§ 4-215

(a) The Administration shall administer a home buyer assistance program that:

(1) assists home buyers to receive low–interest mortgage loans, with down payment and closing cost assistance options, for the purchase of homes near their place of employment; and

(2) coordinates with, and matches where appropriate, similar programs offered by private employers and county and municipal governments so as to maximize the total amount that home buyers can receive under the program.

(b) With reference to loans under this program, the Administration shall:

(1) allow home buyers to utilize the loans for the purchase of newly constructed or existing homes; and

(2) require a home purchased under this program to be occupied by the home buyer as a principal residence.

(c) The Administration shall facilitate the marketing of the program with private employers and county and municipal governments, and, where appropriate, other units of State government and nonprofit organizations.

(d) The Administration shall adopt regulations to implement the program established under this section.

(e) The Department shall report to the General Assembly on or before December 31 each year, in accordance with § 2–1257 of the State Government Article, on the program established under this section.

§ 4-215.1

IN EFFECT

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(a) (1) In this section the following words have the meanings indicated.

(2) “Current student” means an individual who:

(i) attends a public institution of higher education in the State; and

(ii) is a degree–seeking, full–time equivalent student in an undergraduate level, graduate level, or professional degree program.

(3) “Public institution of higher education” has the meaning stated in § 10–101 of the Education Article.

(4) “Recent graduate” means an individual who, within 5 years before applying for assistance under this section, graduated from a public institution of higher education in the State with at least:

(i) 120 credits in an undergraduate level program; or

(ii) 30 credits in a graduate level or professional degree program.

(b) The Administration may administer a home buyer assistance program that:

(1) assists current students and recent graduates to receive low–interest mortgage loans, with down payment and closing cost assistance options, for the purchase of homes near the school attended by the student or graduate;

(2) coordinates with, and matches where appropriate, similar programs offered by public institutions of higher education, private employers, and county and municipal governments to maximize the total amount that current students and recent graduates can receive under the program;

(3) authorizes a public institution of higher education to provide matching funds to a home buyer who receives assistance under this section; and

(4) utilizes available funding sources.

(1) allow home buyers to utilize the loans for the purchase of newly constructed or existing homes;

(2) require a home purchased under the program to be occupied by the home buyer as a principal residence; and

(3) utilize available funding sources.

(d) The Administration may facilitate the marketing of the program with public institutions of higher education, private employers, county and municipal governments, and, where appropriate, other units of State government and nonprofit organizations with existing funding for the marketing of current programs of the Department, if available.

(e) The Administration shall adopt regulations to carry out this section.

(f) On or before December 31 each year, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the program established under this section.

§ 4-216

For fiscal year 2018 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $3,000,000 from general funds or the proceeds from the sale of State general obligation bonds for the Shelter and Transitional Housing Facilities Grant Program.

§ 4-217

IN EFFECT

(a) A project, undertaking, or a part of a project or undertaking, including the real, personal, and mixed property involved, qualifies as a community development project if it is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved to promote sound community development.

(b) A community development project shall provide for:

(1) new or existing housing:

(i) that is or will be occupied in substantial part by families of limited income; or

(ii) at least 20% of which is or will be occupied by families of limited income, if the project is financed with bonds, notes, or other evidences of indebtedness issued by the Administration, the income from which being includable in the holder’s gross income under the Internal Revenue Code as determined by the Administration at the time of issue;

(2) any improvements, such as streets, roads, sewer lines, and water lines that are needed to support the housing; and

(3) the public or private commercial, educational, cultural, recreational, community, or civic facilities that are needed to support the housing.

(c) A community development project may include public or private commercial, educational, cultural, recreational, community, or civic facilities that are not needed to support the housing, if:

(1) they are less than a substantial part of the project; or

(2) the Secretary finds that they will promote sound community development.

(d) (1) The Administration shall administer community development projects that:

(i) are in sustainable communities approved under § 6–305 of this article; and

(ii) provide employees with financial assistance in the form of grants to buy homes near their workplaces.

(2) A community development project administered under this subsection is not subject to the provisions of subsection (b)(1) of this section that require part of the housing to be occupied by families of limited income.

(3) The community development projects administered under this subsection shall be known as the “Live Near Your Work” program.

(4) The Secretary shall adopt regulations to implement the “Live Near Your Work” program established under this subsection.

(5) (i) In fiscal year 2007 and fiscal year 2008, the Governor may include in the State budget $250,000 for the “Live Near Your Work” program established under this subsection.

(ii) In fiscal year 2009 and every fiscal year thereafter, the Governor may include in the State budget no less than $250,000 and no more than $500,000 for the “Live Near Your Work” program established under this subsection.

(e) (1) (i) In this subsection the following words have the meanings indicated.

(ii) “Current student” means an individual who:

1. attends a public institution of higher education in the State; and

2. is a degree–seeking, full–time equivalent student in an undergraduate level, graduate level, or professional degree program.

(iii) “Public institution of higher education” has the meaning stated in § 10–101 of the Education Article.

(iv) “Recent graduate” means an individual who, within 5 years before applying for assistance under this section, graduated from a public institution of higher education in the State with at least:

1. 120 credits in an undergraduate level program; or

2. 30 credits in a graduate level or professional degree program.

(2) The Administration may administer community development projects that:

(i) are in sustainable communities approved under § 6–305 of this article; and

(ii) provide current students and recent graduates with financial assistance in the form of grants to buy homes near the school of the student or graduate.

(3) A community development project administered under this subsection is not subject to the provisions of subsection (b)(1) of this section that require part of the housing to be occupied by families of limited income.

(4) The community development projects administered under this subsection shall be known as the Live Near Your School program.

(5) The Administration shall adopt regulations to implement the Live Near Your School program established under this subsection.

§ 4-217

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