Section 4-919 - Program loans for affordable housing - Private financing standards. - Maryland Statutes

§ 4-919. Program loans for affordable housing - Private financing standards.
 

(a)  Secretary to set standards.- The Secretary shall establish standards to promote the maximum use of private financing. 

(b)  Restrictions on use.- If a portion of a rehabilitation project is to be financed by a private lending institution, the Department shall require that the sponsor use all the private financing that the rehabilitation project can support without impairing: 

(1) the rehabilitation project; or 

(2) affordable housing for families of limited income, if the rehabilitation project is residential. 

(c)  Minimum interest rate.- As long as the State complies with all applicable federal treasury regulations governing borrowing money by the State, a Program loan shall be at an interest rate that at least covers: 

(1) the administrative and other expenses of the Program; and 

(2) reasonably expected losses from defaults on Program loans. 
 

[An. Code 1957, art. 83B, § 2-303(h)(9), (10); 2005, ch. 26, § 2.]