Sec. 05.04.10.04. Eligible Borrowers

A. For loans made to improve single family properties, each borrower shall meet the following requirements:

(1) Be a natural person;

(2) Own the property in fee simple or under a ground lease;

(3) Occupy or intend to occupy, by the earlier of the date of completion of improvements financed by the loan or 60 days from the date of the loan, the property as a principal residence;

(4) Have the legal capacity to incur the obligations of the loan;

(5) Demonstrate creditworthiness and repayment ability acceptable to the Administration;

(6) If the loan is a property improvement loan, be a family of limited income.

B. For loans made to improve multifamily properties, each borrower shall meet the following requirements:

(1) If a business entity, be in good standing and be qualified to do business in Maryland;

(2) Own the property in fee simple or under a ground lease;

(3) Have all necessary legal and corporate authorizations to incur the obligations of the loan;

(4) Demonstrate creditworthiness and repayment ability acceptable to the Administration;

(5) If the loan is a property improvement loan, agree in writing that not less than 51 percent of the total dwelling units shall be occupied by families of limited incomes;

(6) Except in the case of a multifamily property of two or four units, one unit of which is occupied by the owner, covenant and agree in writing that not less than 20 percent (15 percent if the property is located within a "targeted area" within the meaning of §103 of the Code) of the units in each property are to be occupied by individuals of low or moderate income as determined by the Secretary of the United States Treasury in accordance with §103 of the Code. The Administration may require that this covenant be recorded among the land records of the jurisdiction in which the property is located.