Md. Code Regs. 05.06.04.08

Current through Register Vol. 51, No. 22, November 1, 2024

Section 05.06.04.08 - Eligible Sponsors

A sponsor shall meet all of the following requirements to qualify as an eligible sponsor of an insured mortgage:

A. Be a nonprofit organization;

B. Be in good standing and qualified to do business in Maryland;

C. Own, or upon closing of the loan will own, the property that secures the loan for which mortgage insurance is intended, and continue to own the property as long as the Maryland Housing Fund mortgage insurance is in force;

D. Have all necessary legal and corporate authority to incur the obligations of the loan;

E. Either:

(1) Be licensed to operate the project by the appropriate State agency, to the extent required by State law; or

(2) Have an agreement acceptable to the Fund, with a manager who:

(a) Is acceptable to the Fund,

(b) Is licensed in accordance with the requirements of §E(1) of this regulation, and

(c) Meets the requirements of §§A, B, F, G, H, and I of this regulation;

F. Either:

(1) Have a contract, acceptable to the Fund, with a State agency or county government; or

(2) Have an agreement acceptable to the Fund, with a manager who is acceptable to the Fund and has a contract that meets the requirements of §F(1)(a) and (b) of this regulation;

G. Demonstrate:

(1) Financial credibility and stability,

(2) The capability to undertake the project, and

(3) Either the ability:

(a) To manage the project as evidenced by at least 2 years of prior management of the project or comparable projects by the sponsor or an entity with an affiliation to the sponsor which is acceptable to the Fund, or

(b) Of a manager, acceptable to the Fund, with whom the fund has an agreement acceptable to the Fund, to manage the project as required in §G(3)(a) of this regulation;

H. Not be under an order suspending or debarring the sponsor from participating in the Department's programs under COMAR 05.01.05, or under any similar order from any other State or federal agency;

I. Agree and certify that it will comply with all applicable federal, State, and local laws and Departmental policies and programs regarding discrimination and equal opportunity in employment, housing and credit practices, and drug-free and alcohol-free workplaces, including:

(1) Titles VI and VII of the Civil Rights Act of 1964, as amended,

(2) Title VIII of the Civil Rights Act of 1968, as amended, including the Fair Housing Amendments Act of 1988,

(3) For projects containing nonresidential uses, the Americans with Disabilities Act of 1990, as amended,

(4) Article 49B, Annotated Code of Maryland;

(5) The Department's Minority Business Enterprise Program, as amended, and

(6) Executive Order 01.01.1989.18C relating to Drug and Alcohol Free Work Places, and any Departmental regulations adopted to carry out more specifically the requirements of the order; and

J. Not have defaulted under a Department or other governmental loan.

Md. Code Regs. 05.06.04.08