1. A. The Administration, in its discretion, may set aside Program funds for initiatives and special programs, whereby funds may be made available under special terms set by the Administration.
2. B. The Administration, in its discretion, may operate a program whereby Program loans are collateral for mortgage-backed securities, or other securities, certificates, or agreements, under the terms and conditions which the Administration and the issuer of the securities, or certificates, or other party to the agreements, may require.

3. C. Subordinate Mortgage Loans.

   1. (1) The Administration, in its discretion, may operate a program in which a borrower receiving a first mortgage loan through the Program also may receive a second and subordinate mortgage loan through the Program under terms set by the Administration.
   2. (2) The purpose of such a program is to provide a governmental benefit to qualifying borrowers by providing additional financing when doing so will enhance the borrowers' opportunities for affordable housing.
   3. (3) The borrower may be charged a higher rate of interest on the first mortgage loan than the rate charged on first mortgage loans to borrowers who do not receive the secondary mortgage loan.
   4. (4) The Program may make loans that do not bear interest and are forgivable as to principal under terms set by the Administration.

4. D. Settlement Expense Grants.

   1. (1) The Administration may make funds available for grants to Program borrowers to assist with settlement expenses upon terms set by the Administration.
   2. (2) The loan to the borrower receiving a grant under §D(1) of this regulation may be at a higher interest rate than loans available without the grant.
   3. (3) The Administration may require that the borrower execute Administration documentation to receive the grant.
   4. (4) The purpose of such a program is to provide a governmental benefit to qualifying borrowers by providing down payment and settlement costs when doing so will enhance the borrowers' opportunities for affordable housing.

Authority: Housing and Community Development Article, §§4-237—4-240; State Finance and Procurement Article, §§5-7B-01—5-7B-10; Annotated Code of Maryland
Executive Orders 01.01.1992.27C and 01.01.1998.04

Effective date:

Regulations .01—.27 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)

Regulation .01 amended and Regulations .28—.55 adopted as an emergency provision effective December 3, 1981 (8:26 Md. R. 2097); emergency status extended at 9:10 Md. R. 1017; adopted permanently effective May 24, 1982 (9:10 Md. R. 1018)

Regulations .01, .29, .39, .43 amended and new Regulations .56 and .57 adopted as an emergency provision effective September 17, 1982 (9:21 Md. R. 2102) (Emergency provisions are temporary and not printed in COMAR)

Regulations .01, .39C, and .43 amended, and new Regulations .56 and .57 adopted effective March 14, 1983 (10:5 Md. R. 463)

Chapter repealed effective July 30, 1984 (11:15 Md. R. 1329)

Regulations .01—.27 adopted effective July 30, 1984 (11:15 Md. R. 1329)

Chapter recodified from COMAR 05.01.12 to COMAR 05.03.02

Regulation .02T amended effective January 8, 1990 (16:26 Md. R. 2786)

Regulation .10 amended effective January 8, 1990 (16:26 Md. R. 2786)

Regulations .01—.27 repealed and new Regulations .01—.21 adopted effective September 30, 1991 (18:19 Md. R. 2098)

Regulation .03B amended as an emergency provision effective December 8, 1995 (22:26 Md. R. 2024); amended permanently effective July 1, 1996 (23:13 Md. R. 939)

Regulation .04 amended as an emergency provision effective December 8, 1995 (22:26 Md. R. 2024); amended permanently effective July 1, 1996 (23:13 Md. R. 939)

Regulation .17 amended effective January 2, 1994 (20:25 Md. R. 1941)

Regulation .18B amended effective January 2, 1994 (20:25 Md. R. 1941)

Chapter revised effective July 27, 1998 (25:15 Md. R. 1190)

Regulation .01 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .02 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .03 amended effective October 14, 2002 (29:20 Md. R. 1586)

Regulation .03B amended effective March 31, 2003 (30:6 Md. R. 418); January 2, 2006 (32:26 Md. R. 1995); October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .04B amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .04D amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .05E amended effective January 21, 2002 (29:1 Md. R. 20); October 13, 2003 (30:20 Md. R. 1447)

Regulation .06 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .07A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .07B amended effective October 24, 2005 (32:21 Md. R. 1706)

Regulation .07F amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .07H amended effective October 24, 2005 (32:21 Md. R. 1706)

Regulation .08 amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .09A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .10A amended effective March 31, 2003 (30:6 Md. R. 418)

Regulation .11C, E amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .11F amended effective January 2, 2006 (32:26 Md. R. 1995)

Regulation .12 amended effective October 14, 2002 (29:20 Md. R. 1586); April 29, 2013 (40:8 Md. R. 723)

Regulation .13 amended effective October 14, 2002 (29:20 Md. R. 1586); January 6, 2003 (29:26 Md. R. 2027)

Regulation .13F amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .14A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .17F adopted effective January 21, 2002 (29:1 Md. R. 20)

Regulation .17F repealed and new Regulation .17F and G adopted effective October 13, 2003 (30:20 Md. R. 1447)

Regulation .19B, C, and D amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .19C adopted effective October 13, 2003 (30:12 Md. R. 1447)

Regulation .19C amended effective May 23, 2005 (32:10 Md. R. 924)

Regulation .19D adopted effective May 23, 2005 (32:10 Md. R. 924)

Regulation .20 amended effective March 16, 2015 (42:5 Md. R. 485)