Sec. 05.06.01.05. Eligible Projects

A. General. A multifamily project is eligible for Fund insurance if it:

(1) Is located in Maryland;

(2) When complete, conforms to all applicable federal, State, and local building, health, environmental, historic preservation, and housing codes or regulations;

(3) Is zoned to permit rental housing; and

(4) Secures a loan which is in all respects in conformance with these regulations.

B. Uses.

(1) A multifamily project shall be used primarily for residential dwelling purposes, including space for living, dining, sleeping, and sanitary purposes.

(2) A multifamily project may include up to:

(a) 15 percent of the total building space for related noncommercial supporting purposes for use by the residents; and

(b) 5 percent of the total building space for incidental, ancillary, and supportive commercial or other nonresidential uses that may be used by residents and nonresidents.

(3) A project may include up to an additional 15 percent of the total building space for related noncommercial supporting purposes upon a written determination of the Director of the Fund that the nonresidential spaces and architectural configuration of the project are adaptable to other marketable uses.

C. Loans secured by cooperatives are eligible for insurance.

D. Loans secured by a qualified condominium of five or more units are eligible for insurance.