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Terms Used In Maryland Code, HOUSING AND COMMUNITY DEVELOPMENT 4-916

  • including: means includes or including by way of illustration and not by way of limitation. See
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
(a) (1) The Department may make Program loans for housing on terms that the Department considers necessary to make the housing affordable to families of limited income.

(2) The Department may make Program loans in the form of a grant to a family of limited income if:

(i) the family of limited income owns and occupies the dwelling; and

(ii) the Department determines the family of limited income cannot undertake the rehabilitation project without a grant.

(3) The terms may include:

(i) deferred payment of principal and interest until the maturity date or the date of any sale or other transfer of the building or an interest in the building;

(ii) an interest rate as low as 0% or as high as is reasonable, given the incomes of the proposed occupants, if the interest rate does not violate any federal regulation governing the borrowing of money by the State;

(iii) increased interest rates or accelerated payments of principal and interest, if the borrower no longer qualifies for the Program loan; and

(iv) advance payments to a nonprofit sponsor for certain development costs, including architectural, engineering, and attorneys’ fees.

(b) Within the maximum income limits for families of limited income, the Secretary may establish:

(1) lower income ranges;

(2) interest rates to be available on Program loans serving occupants with incomes within those lower ranges; and

(3) any preference or reservation of money for applications for Program loans to finance housing to serve occupants in those lower income ranges.