Sec. 05.04.13.15. Loan and Grant Approval

A. Initial Eligibility Determination.

(1) An application may be submitted to the local administrator for an initial review to make a preliminary determination of the eligibility of the applicant and the project.

(2) If an applicant is determined preliminarily to be eligible for a loan or grant, verifications and reports deemed appropriate by the Program Director or the local administrator, as the case may be, will be obtained.

(3) If an applicant is determined preliminarily to be eligible for a loan or grant, the applicant may be provided with a letter from the local administrator in the form approved by the Program acknowledging receipt of the application and notifying the applicant of the ongoing review process.

(4) If the applicant is ineligible for a grant or loan, the applicant shall be informed in writing of the determination.

B. Building Evaluation.

(1) Each building for which an application is received shall be inspected for the purposes of determining compliance with the minimum livability code and evaluating the adequacy of lead hazard reduction proposals submitted by the applicant.

(2) The inspection shall be performed by:

(a) The Department;

(b) The local administrator; or

(c) Another inspector acceptable to the Department.

C. Loan and Grant Approval.

(1) All loan applications shall be evaluated by the Special Loan Programs operated by the Department.

(2) Upon receipt and approval of all acceptable contractors' proposals, and all other data the Program considers relevant or necessary, the local administrator originating a grant shall undertake an analysis of the grant and other grant terms and conditions.

(3) After completing the steps described in §C(2) of this regulation, the local administrator shall forward the application package and the analysis of the loan or grant, or both, to the Department for approval, disapproval, or modification.

(4) Approval to make a loan, grant, or combination of loan and grant shall be as follows:

(a) A loan, grant, or combination of loan and grant in an amount of $30,000 or less may be approved by:

(i) The Level II local administrator, when the Level II local administrator originates the loan or grant, or

(ii) The Program Director when a Level I local administrator or the Department originates the loan or grant;

(b) A loan, grant, or combination of loan and grant in an amount over $30,000 and less than $100,000 may be approved by the Director;

(c) For a loan, grant, or combination loan and grant in an amount of $100,000 or more, the following procedures shall apply:

(i) The loan/grant proposal shall be submitted to the Housing Finance Review Committee established under Housing and Community Development Article, §4-208, Annotated Code of Maryland,

(ii) For a loan, grant, or combination loan and grant in an amount greater than $100,000 but less than $250,000, the recommendation of the Housing Finance Review Committee constitutes approval unless the loan is specifically disapproved by the Secretary,

(iii) For a loan, grant, or combination loan and grant in amounts of $250,000 or more, the Secretary shall determine in writing whether the loan is approved and under what loan terms after receiving the recommendation of the Housing Finance Review Committee,

(iv) In an emergency when urgent action is required, the Secretary may approve loans and grants by written determination without the recommendation of the Housing Finance Review Committee.

(5) Before a Level II local administrator gives final approval and issues a commitment for Program funding in the amount of $30,000 or less, the Level II local administrator shall contact the Program and receive confirmation that funds are available.

D. Rejection. If an application for Program funds through a Housing Program is rejected, the Director of the Housing Program processing the application shall notify the applicant in writing of the rejection. If a direct application for Program funds only is rejected, the Director of the Special Loan Programs or local administrator, as the case may be, shall notify the applicant in writing of the rejection.

E. Reconsideration. An applicant may request reconsideration of a rejection in accordance with the procedures contained in Program guidelines. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.

F. Loan and Grant Documents. Loans and grants shall be closed on standard form documents required and provided by the Program and may not be altered by the local administrator.