Sec. 34.04.02.05. Eligible Activities

A. Loans. The Trust may provide loans from the Fund to an eligible borrower for:

(1) Acquisition of historic property;

(2) Rehabilitation of historic property;

(3) Restoration of historic property;

(4) Refinancing of historic property; and

(5) Predevelopment costs that are directly related to work required or recommended by the Trust or the State Historic Preservation Officer through the review of a construction project in the State under Section 106 of the National Historic Preservation Act of 1966, as amended, or State Finance and Procurement Article, §§5A-325 and 5A-326, Annotated Code of Maryland, provided that the:

(a) Term of the loan may not exceed 24 months,

(b) Borrower has evidence of permanent financing to serve as the source of repayment of the loan, and

(c) Predevelopment costs are for studies, surveys, tests, plans and specifications, or other reasonable fees, as determined by the Director, for architectural, design, engineering, and other special services directly associated with the historic preservation nature of the project.

B. Trust Project Expenditures.

(1) The Trust may directly expend moneys in an amount up to 50 percent of those moneys available in the Fund which are derived from repayments or prepayments of loans made from the Fund or the proceeds from the resale or lease of any properties originally acquired with moneys from the Fund for the:

(a) Acquisition of historic property; and

(b) Restoration or rehabilitation of historic properties owned by the Trust, which may include predevelopment costs directly related to restoration or rehabilitation such as the cost of studies, surveys, tests, plans and specifications, and architectural, design, engineering, or other special services.

(2) Trust expenditures under this section for acquisition, rehabilitation, or restoration shall be for use in accordance with the Trust's authorized purposes set forth in State Finance and Procurement Article, §5A-311, Annotated Code of Maryland, or for resale or lease by the Trust subject to appropriate preservation covenants.

(3) Trust expenditures under this section are not considered loans as defined in these regulations and are governed solely by the provisions of this section, Regulation .07 of this chapter, and any other regulation or provision of law to which this section or Regulation .07 of this chapter may specifically refer.