Sec. 05.12.01.05. Eligible Projects and Activities — State Criteria

A. General. An allocation of HOME funds can be applied for through either DHCD housing programs or the Maryland HOME Initiatives Program Fund.

B. DHCD Housing Programs. To be eligible for a HOME allocation through the DHCD housing programs, a project or activity shall meet the following requirements:

(1) In the case of a rental housing development project, the project shall:

(a) Comply with the requirements of COMAR 05.05.01.06A, B, E, and F, provided that this chapter shall prevail in the event of a conflict between any provision of COMAR 05.05.01.06A, B, E, and F and any provision of this chapter; and

(b) Provide units for occupancy in accordance with Regulation .15C of this chapter;

(2) In the case of homeownership projects:

(a) Be approved for a forward reservation of mortgage purchase moneys through a homeownership program; and

(b) Require that upon resale of a house assisted with HOME funds, all HOME funds be repaid in accordance with Regulation .17B(6) of this chapter;

(3) In the case of group home projects:

(a) Be approved for a loan through the Group Home Financing Program or Special Housing Opportunities Program of the Single Family Programs; and

(b) Provide group homes for occupancy by income eligible households in accordance with Regulation .15C of this chapter;

(4) In the case of rehabilitation of owner-occupied housing and one-to-four unit rental housing:

(a) If owner-occupied housing, be occupied by income eligible households in accordance with Regulation .17C of this chapter; and

(b) If one-to-four unit rental housing, be occupied by income eligible households in accordance with Regulation .15C of this chapter.

C. Maryland HOME Initiatives Program Fund.

(1) To be eligible for an allocation of HOME funds from the Maryland HOME Initiatives Program Fund, a project or activity shall meet the requirements of this chapter, including the following requirements:

(a) Be ineligible for funding through the DHCD housing programs; or

(b) If eligible for funding through the DHCD housing programs be:

(i) Partially funded from sources of funds other than the DHCD housing programs, such as conventional financial institution loans, local government funding, other State programs, Farmers Home Administration loans, or funding from federal programs which may be used in conjunction with HOME, or

(ii) Eligible for one of the DHCD housing programs which the Department has elected as a matter of policy not to undertake or which does not have available funding.

(2) The Department may elect to fund any application to the Maryland HOME Initiatives Program Fund from HOME funds allocated to any of the DHCD housing programs.

D. Political Subdivisions; Notice and Contribution.

(1) For rental housing development projects, the project shall comply with the political subdivision notice and contribution requirements in COMAR 05.05.01.07.

(2) For all other HOME projects, local contributions are encouraged, although not required.