Sec. 05.05.10.05. Eligible Uses

A. The Department may provide the following types of financial assistance from the Fund to an eligible sponsor:

(1) Planning;

(2) Site development; and

(3) Demonstration.

B. Planning Assistance.

(1) Planning assistance may be used to pay for predevelopment costs associated with a project including:

(a) Reasonable fees for architectural, engineering, consultant, or legal services;

(b) Organizational expenses;

(c) Socioeconomic market studies;

(d) Appraisals;

(e) Surveys;

(f) Reasonable costs associated with obtaining construction or permanent financing; and

(g) Other fees and costs acceptable to the Department and permitted under the Act and the Code.

(2) Planning assistance may be used to fund an option for the purchase of land which will be part of a project, but may not be used for the acquisition of land which will be a part of a project.

C. Site development assistance may be used to pay for on-site development and off-site development costs associated with a project, including:

(1) Excavation;

(2) Sewer and water services;

(3) Demolition, clearing, and grubbing;

(4) Sidewalks, curbs, and gutters;

(5) Paving;

(6) Landscaping;

(7) Seeding and sediment control;

(8) Installation of wells;

(9) Installation of septic and other waste disposal systems;

(10) Recreation facilities; and

(11) Other costs acceptable to the Department and permitted under the Act and the Code.

D. Demonstration assistance may be used to pay direct costs associated with a project which responds to housing needs of low and moderate income families in Maryland Appalachian counties, and which demonstrates a new or innovative method of constructing or financing housing for low and moderate income families, or projects which demonstrate alternative living arrangements for low and moderate income families. These direct costs include:

(1) The activities described in B and C of this regulation;

(2) The acquisition of equipment which will be part of a project;

(3) The acquisition of land and any buildings located on the land;

(4) Cost of labor and materials for new construction or rehabilitation or installation of improvements as set forth in the approved plans and specifications for a project;

(5) Indemnity and security bonds;

(6) Premiums on hazard, liability, title, and mortgage insurance;

(7) Necessary fees, licenses, and permits related to construction, project review, and approval;

(8) Payment and performance bonds; and

(9) Other costs acceptable to the Department and permitted under the Act and the Code.

E. Grants with conditional repayment provisions may be used to provide planning, site development, or demonstration assistance in accordance with the provisions set forth in Regulation .08B of this chapter.

F. Program income from the Fund may be used to pay the expenses of the Program, as approved by the ARC.

G. The Fund may not be used to pay for costs associated with the following activities unless otherwise permitted by the Act:

(1) Activities associated with libraries, cultural centers, or adult or child day-use facilities;

(2) Construction of schools, hospitals, or government office buildings; and

(3) Construction of community centers or social service facilities.