Sec. 05.04.05.03. Definitions

A. The terms appearing in the Act shall have the meanings defined there and, in addition, the meanings used in these regulations.

B. Terms Defined.

(1) "Act" refers to Housing and Community Development Article, Title 4, Subtitle 9, Annotated Code of Maryland, as amended.

(2) "Annual income" means total household income from all sources, including wages, investment income, Social Security, retirement, disability, and unemployment benefits less:

(a) Unusual or temporary income items as determined by the Department; and

(b) Abnormal expenses of a long-term nature, such as extraordinary medical, rehabilitation, or special education expenses.

(3) "Borrower" means an applicant who receives a loan under the Program.

(4) "Building" means any structure which satisfies the requirements of Regulation .05 of this chapter.

(5) "Closing costs" means the total of all settlement costs and fees and, when applicable, initial payment for taxes, property insurance, title examination, or other expense items as determined by the Department.

(6) "Deferred payment loan" means a loan which permits the deferral of principal or interest, or both principal and interest.

(7) "Department" means the Department of Housing and Community Development, a principal department of the State of Maryland.

(8) "Director" means the Director of Single Housing Programs of the Department.

(9) Family of Extremely Low Income.

(a) "Family of extremely low income" means one or more individuals residing as a household in a dwelling unit, whose total combined annual income does not exceed the limits established from time to time by the Secretary in accordance with §4-916(b) of the Act, which income limits are less than those established for families of very low income.

(b) "Family of extremely low income" includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if:

(i) The income of the trust does not exceed an amount established by the Secretary in accordance with §4-916(b) of the Act; and

(ii) The beneficiary of the trust is an individual who resides in the residential building owned by the trust.

(10) Family of Limited Income.

(a) "Family of limited income" means one or more individuals residing as a household in a dwelling unit whose total combined annual income does not exceed the limits established from time to time by the Secretary in accordance with §4-915 of the Act.

(b) "Family of limited income" includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if:

(i) The income of the trust does not exceed an amount established by the Secretary in accordance with §4-915 of the Act; and

(ii) The beneficiary of the trust is an individual who resides in the residential building owned by the trust.

(11) Family of Lower Income.

(a) "Family of lower income" means one or more individuals residing as a household in a dwelling unit, whose total combined annual income does not exceed the limits established from time to time by the Secretary in accordance with §4-916(b) of the Act, which income limits are less than those established for families of very low income.

(b) "Family of lower income" includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if:

(i) The income of the trust does not exceed an amount established by the Secretary in accordance with §4-916(b) of the Act; and

(ii) The beneficiary of the trust is an individual who resides in the residential building owned by the trust.

(12) Family of Very Low Income.

(a) "Family of very low income" means one or more individuals residing as a household in a dwelling unit, whose combined total annual income does not exceed the limits established by the Secretary in accordance with §4-916(b) of the Act, which income limits are less than those established for families of lower income.

(b) "Family of very low income" includes a trust described in 42 U.S.C §1396P(D)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with the assets that were never owned or controlled by the beneficiary, if:

(i) The income of the trust does not exceed an amount established by the Secretary in accordance with §4-916(b) of the Act; and

(ii) The beneficiary of the trust is an individual who resides in the residential building owned by the trust.

(13) "Level I local administrator" means a political subdivision certified by the Department under Regulation .16B of this chapter.

(14) "Level II local administrator" means a political subdivision certified by the Department under Regulation .16C of this chapter.

(15) "Loan" means a loan made under the Program.

(16) "Local administrator" means a level I or level II local administrator.

(17) "MDE" means the Maryland Department of the Environment.

(18) "Mobile home" means a structure transportable in one or more sections which is built on a permanent chassis and is designed to be used as a dwelling, with or without a permanent foundation, when connected to the requisite utilities.

(19) "Owner-landlord" means an owner of a building, who may or may not occupy the building, some or all of which is used for residential rental purposes.

(20) "Owner-occupant" means an owner residing or intending to reside in a building which contains one dwelling unit and no other units, residential or commercial.

(21) "Political subdivision" means any municipal corporation in Maryland subject to the provisions of Article XI-E of the Constitution, the Mayor and City Council of Baltimore, and any of the 23 counties in Maryland.

(22) "Program" means the Indoor Plumbing Loan Program.

(23) "Program Director" means the Assistant Director of Special Loan Programs in the Division of Development Finance of the Department.

(24) "Related costs" means costs related to the implementation of a rehabilitation project under the Program such as percolation tests, appraisal fees, engineering fees, permit and permit application fees, and other similar costs approved by the Program. Related costs do not include loan application fees.

(25) "Secretary" means the Secretary of Housing and Community Development.

(26) "Structurally and mechanically sound building" means a building that does not have physical conditions serious enough to endanger the life, property, or safety of the occupants or the public. A building may be structurally sound and not be in compliance with all applicable codes and standards.

(27) "Subcontractor" means an entity authorized by the Department to carry out the duties and responsibilities of a local administrator under Regulation .16D(1) of this chapter and to hold and disburse funds under Regulation .16D(2) of this chapter.