US Laws, Codes, Statutes & Cases

      (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; or

                  (vii)      infrastructure 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.