Sec. 05.05.05.15. Terms and Conditions—Construction

A. Construction Standards. Construction, reconstruction, and rehabilitation funded with capital assistance shall comply with applicable codes and standards.

B. Construction Wages. The wages paid for construction, reconstruction, or rehabilitation are not subject to the requirements of the prevailing wage rates law for public work contracts, State Finance and Procurement Article, Title 17, Subtitle 2, Annotated Code of Maryland, if:

(1) More than 50 percent of the cost of the construction, reconstruction, and rehabilitation is contracted and paid for by a sponsor out of the proceeds of a loan from the Fund; and

(2) The sponsor has not by resolution or ordinance required that it shall be covered by the prevailing wage rates law for public work contracts, State Finance and Procurement Article, Title 17, Subtitle 2, Annotated Code of Maryland.

C. At the request of the local government or local government entity, the Department may defer to the local government for construction review and approval of construction draws if the Department determines that such deference will avoid duplication of effort while ensuring appropriate fiduciary oversight and controls.