Sec. 05.05.05.07. Eligible Uses

A. Program funds may be used to provide capital assistance for financing development costs, including:

(1) Acquisition of buildings and land, provided, if the sponsor is a local government or local government entity, it has met the local contribution requirements of Regulation .17 of this chapter;

(2) Labor and materials for construction, rehabilitation, and installation of improvements as set forth in approved plans and specifications;

(3) Necessary studies, surveys, tests, plans, and specifications, including:

(a) Appraisals;

(b) Market analysis studies;

(c) Construction cost estimates;

(d) Test borings; and

(e) Compaction tests;

(4) Reasonable fees for architectural, design, engineering, and other special services;

(5) Site preparation, including the costs of:

(a) Running services from public utilities abutting the site to the buildings in the project;

(b) Public utility connection fees;

(c) Roads from public roads abutting the site to the buildings in the project;

(d) Installing wells or septic systems on the site; and

(e) Parking areas, play areas, and landscaping;

(6) Indemnity and surety bonds;

(7) Premiums on title, mortgage, and hazard insurance;

(8) An allowance for start-up costs such as marketing and leasing expenses, as approved by the Department;

(9) Costs associated with obtaining environmental assessments and testing for the presence of environmental hazards; and

(10) Other costs and fees acceptable to the Department.

B. Program funds may be used in accordance with Regulation .10 of this chapter to purchase MPDUs.

C. Program funds may not be used for:

(1) Acquisition of the site, except as permitted in §A(2) of this regulation; or

(2) Off-site improvements.

D. If a capital assistance from the program loan is funded with the proceeds of general obligation bonds issued by the State of Maryland, additional limitations on eligible uses may be applicable.