Sec. 05.05.10.09. Applications and Processing

A. An application for financial assistance shall be submitted to the Department and shall be made upon standard forms prescribed by the Department. Each application shall contain sufficient information and documentation to determine:

(1) Whether the project is located in a Maryland Appalachian county;

(2) The extent, if any, to which the project will change the type of use or increase the intensity of the existing use of the property;

(3) Whether the project will benefit low and moderate income families;

(4) The rate of return, if any, the sponsor anticipates receiving on a project;

(5) In the case of an application for a planning or site development assistance, whether the project is eligible for financial assistance from a public agency;

(6) The availability or lack of conventional financing for the project; and

(7) Such other information as the Program may request.

B. Approval of Applications.

(1) Upon submission of all required information, the Program shall undertake an analysis of each application and make a recommendation as to the amount of financial assistance and any special terms and conditions for a project.

(2) Approval of Application.

(a) If the Secretary approves an application for financial assistance, the Secretary shall execute a determination that the financial assistance is authorized by the Act and the Code. The determination shall include authorization for the issuance of a grant agreement between the Department and the sponsor for the financial assistance only if the financial assistance is approved by ARC on the same terms and conditions approved by the Secretary. The determination also shall constitute authorization for issuance of a grant agreement between the sponsor and the Department, obligating the Department to provide the financial assistance after the financial assistance is approved by ARC on the same terms and conditions approved by the Secretary.

(b) Upon issuance of a determination by the Secretary approving the financial assistance, the application for financial assistance shall be submitted to the Maryland ARC representative for approval. If the Maryland ARC representative approves the application, the Maryland ARC representative shall submit the application to the ARC for approval.

(c) If the application is approved by the ARC on the same terms and conditions set forth in the Secretary's determination, the Department shall issue a grant agreement between the sponsor and the Department for the financial assistance.

(3) Rejection of Application.

(a) The Program shall inform an applicant in writing of rejection of an application for financial assistance, and an applicant shall have the right to appeal any rejection of an application by the Program under the procedures set forth in §E of this regulation.

(b) When an application is rejected by the ARC:

(i) If the ARC requires additional terms and conditions for a proposed project, the Director shall inform the applicant, in writing, of these additional terms and conditions. The applicant shall notify the Director, in writing, of its acceptance or rejection of the new or additional terms and conditions required by the ARC.

(ii) If the ARC rejects an applicant's application for financial assistance for a project, the Department may not have the authority to provide the financial assistance requested by the applicant. The Program shall inform the applicant of rejection by the ARC of its proposed project.

(iii) The appeal procedures set forth in §E of this regulation may not be available to an applicant whose application is rejected by the ARC.

C. The Program, the Maryland ARC representative, and the ARC may take the following factors into consideration in considering the award of financial assistance:

(1) With respect to a planning assistance, whether the costs incurred are reimbursable out of permanent financing for the project;

(2) The area in a Maryland Appalachian county in which the project will be located;

(3) The extent to which the project will benefit low or moderate income families;

(4) The availability or unavailability of funds for preconstruction expenses and gap financing through conventional commercial lenders;

(5) The extent of local government participation in the project; and

(6) Other factors which the Program determines are desirable in fostering development in the Maryland Appalachian counties.

D. The Department shall provide the sponsor with a grant agreement that is consistent with the terms and requirements under which the financial assistance was approved, and the provisions set forth in these regulations and in the Act and the Code. The grant agreement shall specify the reports necessary to monitor compliance by the sponsor with the terms and conditions of the Act, the Code, and these regulations.

E. Appeal.

(1) An applicant may appeal rejection by the Program of an application for financial assistance in the following manner:

(a) Submission to the Secretary within 15 working days of the date of the notice of rejection from the Program, a written appeal which contains the following information:

(i) Reasons for disagreement with rejection,

(ii) Additional information and supporting documents, and

(iii) Explanation as to why the documentation was not furnished in the original application;

(b) The Secretary shall respond in writing to the applicant's request within 30 days of receipt of the written appeal of the applicant.

(2) An applicant may not have any right to appeal to the Department a rejection of any application by the ARC.