Sec. 05.04.08.04. Eligible Borrowers

A. To qualify for a loan, an owner-occupant shall meet the following requirements, which shall be met jointly and separately by all applicants if there is more than one applicant:

(1) Reside, or intend to reside, in the property after completion of the rehabilitation;

(2) Hold title to the property for which the loan is made in fee simple or under a freely transferable ground rent lease;

(3) Demonstrate creditworthiness and repayment ability, in the estimation of the Department; and

(4) Have income at a level that the Secretary has determined renders the applicant unable to afford or secure private financing to rehabilitate the property.

B. In addition to meeting those requirements set forth in §A of this regulation, to qualify for a loan to provide accessory facilities, an owner-occupant, jointly and separately if there is more than one applicant, shall either:

(1) Be a family of lower income or a family of limited income at the time the loan is made, and agree in writing to provide the accessory housing facility financed by the loan for the longer of:

(a) The term of the loan,

(b) The time during which principal and interest are unpaid, or

(c) 10 years if a family of limited income or 15 years if a family of lower income; or

(2) Agree in writing to provide the accessory facility financed by the loan for occupancy by a family of lower income or a family of limited income for the longer of:

(a) The term of the loan,

(b) The time during which principal and interest are unpaid, or

(c) 10 years if a family of limited income or 15 years if a family of lower income.

C. In addition to meeting the requirements set forth in §A of this regulation, to qualify for a loan to provide shared housing facilities, an owner-occupant shall meet the following requirements, which shall be met jointly and separately if there is more than one applicant:

(1) Be a family of limited income; and

(2) Agree in writing that the shared housing facility provided with the proceeds of the loan shall be occupied by a family or families of lower income or a family or families of limited income for the longer of:

(a) The end of the loan term,

(b) The date on which all principal and interest and other sums due on the loan are fully paid, or

(c) 10 years if a family or families of limited income, or 15 years if a family or families of lower income.

D. In addition to meeting the requirements set forth in §A of this regulation, to qualify for a loan to provide sheltered housing facilities, a sheltered housing sponsor shall meet the following requirements, which shall be met jointly and separately by all applicants if there is more than one applicant:

(1) Agree in writing to provide shelter, meals, and assistance with daily activities to not more than 15 persons, all of whom shall be elderly, disabled, or handicapped persons who qualify as families of limited income for the longer of:

(a) The end of the loan term,

(b) The date on which all principal and interest and other sums due on the loan are fully paid, or

(c) 10 years if the sheltered facility residents other than the borrower are families of limited income, or 15 years if families of lower income;

(2) Demonstrate that the property will be certified by the appropriate governing agency to provide sheltered care to elderly, disabled, or handicapped persons.

E. An applicant who is suspended or debarred from the Department's programs pursuant to any action under COMAR 05.01.05 is not eligible to participate in the Program.

F. If title to the property to be rehabilitated is held by more than one person in any form of joint tenancy, each person having an interest in the property shall be considered to be an applicant for purposes of these regulations.

G. For the purposes of determining annual income, only the income of persons who permanently reside in the unit will be used.