Sec. 05.04.12.04. Eligible Sponsors

Sponsors shall meet the following requirements to qualify for a loan:

A. Be a nonprofit organization, local government, individual, corporation, or partnership, except that only a local government is eligible for a land bank loan.

B. If a nonprofit organization, corporation, or partnership, be in good standing and qualified to do business in Maryland.

C. Have the legal capacity and all necessary authorization to incur the obligations of the loan.

D. Own the project, have a valid sales contract to purchase the project, or have an option on or agreement of understanding acceptable to the Administration to purchase the project.

E. In the determination of the Administration, be unable to secure a construction, preconstruction, or land bank loan from a private lending institution without impairing the feasibility of the project's serving the income levels of the proposed future occupants, or be ineligible for land bank financing or for combination construction and permanent financing through other public lending programs or programs of the Administration or Department.

F. If the loan is for a rental property project, agree in writing that 100 percent of the dwelling units will be occupied upon completion of the project by families of limited income, and that best efforts will be undertaken to ensure that 50 percent of the dwelling units are occupied by families of very limited income.

G. If the loan is for homeownership properties, agree in writing that all the residences will be sold initially to families of limited or very limited income who will occupy them as their principal residence.

H. Except for land bank loans, have a commitment in a form acceptable to the Administration for permanent mortgage financing or have a letter of intent, from a lender or public program, acceptable to the Administration, to provide permanent financing upon completion of construction or rehabilitation of the project.

I. Agree in writing to abide by all requirements of:

(1) Title VI and VII of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968;

(2) The provisions of the Governor's Code of Fair Practices, as amended;

(3) The Department's Minority Business Enterprise Program, as amended.

J. Agree in writing to provide and abide by a relocation assistance plan acceptable to the Department if occupants will be temporarily displaced during rehabilitation.

K. Agree in a recordable document that a rental property project will be rented to families of limited income until the last to occur of:

(1) Repayment of the loan in full;

(2) Recordation of a document, recorded for the benefit of a permanent lender, with equivalent or more restrictive low income occupancy requirements, as determined by the Administration.