1. (a) In offering insurance and other forms of credit enhancement, the Department shall adopt eligibility standards that are reasonable to aid in:

   1. (1) financing the purchase, construction, or rehabilitation of:

      1. (i) housing projects;

      2. (ii) special housing facility projects, consisting of the acquisition, rehabilitation, improvement, renovation, construction, financing, or refinancing of a building that:

         1. 1. provides common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities;
         2. 2. may include supportive services or supervisory live-in personnel for individuals with specialized housing needs; and
         3. 3. may include nonresidential facilities to serve individuals with special needs who may or may not be residents of the special housing facility;
      3. (iii) rehabilitation projects, as defined in § 4-901 of this article;
      4. (iv) energy conservation projects;
      5. (v) solar energy projects;
      6. (vi) public purpose projects;
      7. (vii) infrastructure projects; or
      8. (viii) business projects; and

   2. (2) the sale or other transfer of an obligation that is:

      1. (i) denoted as a bond, note, collateralized obligation, grantor trust, conduit, or other form of security or obligation; and
      2. (ii) backed directly or indirectly by a mortgage or a payment derived from a mortgage.
2. (b) The standards adopted under subsection (a) of this section shall ensure that a lender benefiting from insurance or other credit enhancement provided by the Department is responsible and able to service the loan.

3. (c) A determination by the Secretary is conclusive if it relates to the eligibility of a project, facility, or undertaking for:

   1. (1) insurance or other credit enhancement; or
   2. (2) other action taken by the Department, in its own name or in the name of the Fund, under this subtitle.

Added by Acts 2005, c. 26, § 2, eff. Oct. 1, 2005. Amended by Acts 2016, c. 482, § 2, eff. July 1, 2016.