Section 4-916 - Program loans for affordable housing - In general. - Maryland Statutes

§ 4-916. Program loans for affordable housing - In general.
 

(a)  Terms.-  

(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)  Income ranges, interest rates, and preferences.- 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. 
 

[An. Code 1957, art. 83B, § 2-303(f), (g); 2005, ch. 26, § 2.]