Md. Code Regs. 05.05.02.02

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

Section 05.05.02.02 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

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

(2) Administration" means the Community Development Administration, a unit of the Division of Development Finance of the Department of Housing and Community Development.

(3) "Annual income" means annual income as defined by the United States Department of Housing and Urban Development at 24 CFR § 5.609.

(4) Community Development Project.

(a) "Community development project":

(i) Means any undertaking or project, or portion of an undertaking or project, including lands, buildings, and improvements, real, mixed, and personal properties or interest that is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved for the purpose of promoting sound community development;

(ii) Shall provide for existing or new housing which is or which will be occupied in substantial part by families of limited incomes, or if the project is financed with taxable bonds, at least 20 percent are families of limited incomes; and

(iii) Shall provide improvements such as streets, roads, sewer and water lines, and other public or private facilities intended for commercial, educational, cultural, recreational, community, or other civic purpose, as may be needed to support new or existing housing.

(b) If other public or private facilities as referred to in §B(4)(a)(iii) of this regulation are not needed to support new or existing housing, they may be included in a community development project if they comprise less than a substantial part of the community development project, unless it is determined by the Secretary that sound community development is promoted by including a greater proportion of public or private facilities.

(5) "Construction completion" means satisfactory completion of all items in the construction contract, as approved by the Administration, and the acceptance of the project by the local jurisdiction as evidenced by final certificates of occupancy or their equivalent.

(6) "Construction loan closing" means that time at which a sponsor executes a note, a building loan agreement, regulatory agreement, mortgage, and other security instruments deemed necessary by the Administration to secure the repayment of the Administration's construction loan.

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

(8) "Distressed area" means a geographically defined area or areas of any municipality or county designated by the Secretary at the request of the municipality or county, taking into consideration factors including:

(a) The availability, cost, and condition of housing and neighborhood facilities, including the age and number of abandoned and substandard structures;

(b) The income of residents relative to the State or area wide regional median incomes, including the number of individuals who are welfare recipients, unemployed, and in poverty;

(c) The need for financing for housing or public or private facilities to upgrade the social and economic conditions of the distressed area;

(d) The plans and financial commitment of the municipality or county to undertake improvements in the distressed area; and

(e) Other standards and criteria considered relevant by the Secretary, including standards established for other relevant State or federal programs.

(9) "Energy conservation project" means any undertaking or part of an undertaking without regard to the incomes of the occupants or owners of the buildings for the purpose of installing certain energy improvement items and establishing certain conservation services in residential and commercial buildings.

(10) "Home improvement project" means an undertaking for any improvement, alteration, addition, or repair that substantially protects or improves the basic liveability of a residential building of more than four units that will be occupied in substantial part by families of limited incomes.

(11) Household.

(a) "Household" means one or more individuals who occupy the same residential dwelling unit as their permanent residence.

(b) "Household" includes a family as defined in 24 CFR § 5.403, as amended.

(12) "Household of limited income" means a household whose total household annual income does not exceed the upper income limits established by the Secretary in accordance with Housing and Community Development Article, § 4-212, Annotated Code of Maryland, and Regulation .04B of this chapter.

(13) "Internal Revenue Code of 1986" means the Internal Revenue Code of 1986, as amended, and any applicable regulations and rulings.

(14) "Internal Revenue Code of 1954" means the Internal Revenue Code of 1954, as amended (before amendment by the Internal Revenue Code of 1986), and the applicable regulations and rulings.

(15) Nonprofit entity.

(a) "Nonprofit entity" means any corporation, foundation, or other legal entity which has been declared exempt from taxation by the Internal Revenue Service under § 501 of the Internal Revenue Code, or any other entity in which no part of the net earnings inures to the benefit of any private shareholder or individual holding an interest in the entity.

(b) "Nonprofit entity" does not mean limited dividend corporations as defined in Housing and Community Development Article, § 4-220, Annotated Code of Maryland.

(16) "Permanent loan closing" means that time, after construction completion, when cost certification is complete, the amount of the permanent mortgage loan is determined, and all necessary documents are provided by the sponsor.

(17) "Profit-motivated entity" means an individual, individuals, or legal entity which is not a nonprofit entity.

(1 8) "Program Guide" means the Multifamily Rental Financing Program Guide adopted by the Department, as amended from time to time.

(19) "Project" means a community development project, public purpose project, energy conservation project, or home improvement project.

(20) "Public purpose project" means any undertaking or project which:

(a) Is eligible, in whole or in part, for federal low-income housing credits;

(b) Is located in a distressed area including land, buildings, and other improvements, real, mixed, and personal properties, or an interest in these properties, that is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, repaired, renovated, or improved with the financial assistance of the Administration or the assistance of federal low-income housing tax credits as may be authorized by the Internal Revenue Code;

(c) May include improvements such as streets, roads, sewer and water lines, and other public or private facilities intended for commercial, educational, cultural, recreational, community, or other civic purposes;

(d) Shall provide in substantial part for existing or new housing, unless it is determined by the Secretary that sound community development is promoted by including a greater proportion of public or private facilities; and

(e) Provides that the housing portion of a public purpose project shall be occupied in whole or in part by families of limited incomes.

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

(22) "Section 8" means Section 8 of the United States Housing Act of 1937, as amended.

(23) "Solar energy project" means any addition, alteration, or improvement to a residential or commercial building that is designed to use wind energy, energy produced by a wood-burning appliance, or solar energy, either of the active type based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer (or some combination of these types), to reduce the energy requirements of the building. Solar energy project includes:

(a) A solar process heat device, solar electric device, and any earth sheltered building in which the sheltering substantially reduces the consumption of energy by the building; and

(b) Only those fireplaces that are integral parts of a system that is designed to use passive type solar energy.

(24) "Sponsor" means:

(a) A borrower on a loan made by the Administration to finance a project;

(b) The person or entity principally responsible for the project and application for the loan before construction loan closing.

(25) "Targeted area" means any:

(a) Census tracts in which 70 percent or more of the families have income which is 80 percent or less of the Statewide median family income, based on the most recent decennial census for which data are available; or

(b) Area of chronic economic distress designated by the State and approved by the United States Secretary of the Treasury and the United States Secretary of Housing and Urban Development.

Md. Code Regs. 05.05.02.02

Regulations .02C-M amended effective August 2, 1982 (9:15 Md. R. 1511)
Regulations .02 Multi-Family Housing Revenue Bond Financing Program, adopted effective October 30, 1989 (16:21 Md. R. 2260)
Regulations .02 amended effective 41:25 Md. R. 1476, eff.12/22/2014