Sec. 05.05.09.12. Application Processing Procedures

A. Local Governments.

(1) For each project for which an application is received under this chapter, the Department shall provide written notice and reasonable opportunity to comment on the project to the chief executive officer or the equivalent officer and the head or president of the legislative body of the political subdivision in which the proposed project is located.

(2) If a proposed project is in a municipal corporation, the notice required under §A(1) of this regulation shall be sent to the chief executive officer and the head or president of the legislative body of the municipal corporation, not the surrounding county.

(3) The notice provided under §A(1) of this regulation shall contain the following information about the proposed project:

(a) Date of application;

(b) Name and description of project;

(c) Address of project;

(d) Sponsor of the project and sponsor’s contact information;

(e) Amount of funding requested;

(f) Amount, type, and provider of other sources of funding;

(g) Total number of units; and

(h) Such other information as the Department deems relevant.

B. Notification Letter to Sponsor.

(1) Upon receipt and analysis of all documentation necessary to assess the feasibility of a project, the Program shall issue a written notification letter to the sponsor that details conditions that shall be met in order for the Program to recommend approval of capital assistance, including:

(a) Final plans, specifications or scope of work, and firm costs for the acquisition, construction, rehabilitation, and capital equipment and furnishings;

(b) A minority business participation plan that complies with the Department's Minority Business Enterprise Program;

(c) Evidence of the commitment of any other necessary financing; and

(d) Other documentation required by the Department and included in the notification letter.

(2) An expedited analysis of whether to recommend approval of capital assistance may be conducted and recommendation of approval or disapproval made under §C of this regulation without the intermediate step of a notification letter, if all necessary documentation is provided with the initial application.

C. Approval.

(1) Upon satisfaction of all terms and conditions of the notification letter, the Program shall undertake an analysis of each application to determine the final recommended amount of capital assistance and any recommended special terms and conditions for the project.

(2) Except in the case of an emergency when urgent action is required, all capital assistance in amounts greater than the minimum amount set forth in COMAR 05.01.07 shall be submitted to the Housing Finance Review Committee for review and recommendation to the Secretary for modification, approval, or disapproval of the capital assistance and the terms under which it shall be provided.

(3) Upon receipt of a recommendation of the Housing Finance Review Committee, the Secretary shall approve or disapprove the capital assistance and the terms under which the capital assistance shall be provided. In an emergency when urgent action is required, the Secretary, or the Secretary's designee, may approve the capital assistance without the recommendation of the Housing Finance Review Committee.

(4) For capital assistance in amounts at or below the minimum amount set forth in COMAR 05.01.07, the Department's Director of the Division of Development Finance may approve the capital assistance without the recommendation of the Housing Finance Review Committee.

D. Commitment Letter. Upon approval of the capital assistance under §C of this regulation, the Department’s Director of the Division of Development Finance or the Division’s Director of Multifamily Housing is authorized to issue a commitment letter setting forth the amount of the capital assistance and the terms and conditions under which the capital assistance shall be made.

E. Expiration of Commitment.

(1) The Department shall specify in the commitment letter a time within which the execution of the commitment letter and the capital assistance documents shall occur, which time limits may be extended in the Department's sole discretion.

(2) If execution of the commitment and capital assistance documents does not occur within the time limits specified by the Department, the commitment shall expire, and upon written notification to the sponsor, the Department may withdraw the moneys encumbered for the project and use them for any other project authorized by the regulations.

F. Rejection of Applications. If the Department determines not to recommend approval of a project for capital assistance, the Program shall issue a written notice of rejection.

G. Reconsideration.

(1) Sponsors may request reconsideration of a rejection by submitting a written request to the Director of the Division of Development Finance, to be received within 30 days following the date of the Program's rejection notice. The request for reconsideration shall address each reason for the rejection and provide documentation supporting reasons for reconsideration of the issues.

(2) The Director shall respond in writing to the sponsor's request for reconsideration within 30 days of receipt of the request for reconsideration.

(3) Sponsors may request reconsideration of the written response of the Director by submitting a written request for reconsideration to the Secretary to be received within 30 days of the date of the written response of the Director. This request shall be referred to the Housing Finance Review Committee for review and recommendation to the Secretary, who shall take final action regarding the request.

(4) An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.02.