2013 Maryland Code
HOUSING AND COMMUNITY DEVELOPMENT
§ 4-916 - Program loans for affordable housing -- In general

§4-916.

(a) (1) The Department may make Program loans for housing on terms that the Department considers necessary to make the housing affordable to families of limited income.

(2) The terms may include:

(i) deferred payment of principal and interest until the maturity date or the date of any sale or other transfer of the building or an interest in the building;

(ii) an interest rate as low as 0% or as high as is reasonable, given the incomes of the proposed occupants, if the interest rate does not violate any federal regulation governing the borrowing of money by the State;

(iii) increased interest rates or accelerated payments of principal and interest, if the borrower no longer qualifies for the Program loan; and

(iv) advance payments to a nonprofit sponsor for certain development costs, including architectural, engineering, and attorneys’ fees.

(b) Within the maximum income limits for families of limited income, the Secretary may establish:

(1) lower income ranges;

(2) interest rates to be available on Program loans serving occupants with incomes within those lower ranges; and

(3) any preference or reservation of money for applications for Program loans to finance housing to serve occupants in those lower income ranges.