1. A. Rejection. If a loan application is rejected, the Department shall notify the sponsor in writing. The rejection letter shall state the reason the loan is rejected.

2. B. Reconsideration.

   1. (1) A sponsor of an office and commercial space conversion project or an income-restricted project not competing in a round may request reconsideration of a rejection within 7 days of receipt of notice of the rejection. The request shall be in writing and submitted to the Program Director. An initial decision or reconsideration of a decision is not a contested case within the meaning of the Administrative Procedure Act or COMAR 05.01.01.
   2. (2) A sponsor of an income-restricted project competing in a round may not request reconsideration of a rejection but may resubmit an application in a subsequent round or in accordance with the procedures established by the Department for income-restricted projects not competing in a round.

3. C. Modifications.

   1. (1) A sponsor may not modify a project in a manner that affects any of the following factors without the prior review and approval of the Department:

      1. (a) The project cannot proceed in accordance with the schedule established by the Department and the sponsor;

      2. (b) The project changes substantially from the initial submission, including:

         1. (i) A change resulting in a score reduction of the lesser of 3 percent or an amount sufficient to lower the score below the cut off score for the round in which the project was approved;
         2. (ii) A significant change in the project’s design, financing, or amenities;
         3. (iii) A material reduction in the project’s income targeting or unit count;
         4. (iv) A change of the project’s sponsor or other member of the development team; or
         5. (v) A change in the project’s site;
      3. (c) The project no longer meets the requirements of Regulations .21 and .22 of this chapter, as applicable; or
      4. (d) Such other reasons as may be established in the Program Guide.
   2. (2) If a project is modified in violation of §C(1) of this regulation, the sponsor shall provide to the Department a detailed explanation of the modification, along with a written request for approval of the modification. After review of the sponsor’s request and explanation, the Department may permit the modification or notify the sponsor that the modification is not acceptable to the Department. If an unacceptable modification is not cured within a time period acceptable to the Department, the reservation or commitment, as applicable, shall be withdrawn from processing.

4. D. Withdrawal of Application.

   1. (1) An applicant may withdraw an application at any time before closing of the loan by written notice to the Department.

   2. (2) An applicant that withdraws its application may be required to bear any costs incurred by the Department, including, but not limited to:

      1. (a) Title examinations;
      2. (b) Credit reports;
      3. (c) Appraisals;
      4. (d) Market analyses;
      5. (e) Fees attributable to the Department’s processing costs; and
      6. (f) Legal fees.

   3. (3) The Department may withdraw an application from processing for the following reasons:

      1. (a) The project’s developer, sponsor, or owner or any general partner or managing member of the foregoing files for bankruptcy or is the subject of an involuntary bankruptcy;
      2. (b) The project is, for any other reason, no longer feasible;
      3. (c) The project’s developer, sponsor, or owner submits false, misleading, or incomplete information to the Department;
      4. (d) The sponsor has failed to cure a modification unacceptable to the Department in the time frame provided under §C of this regulation;
      5. (e) The project fails to meet the established time frames for processing or otherwise fails to make reasonable progress toward closing; or
      6. (f) Such other reasons as may be established in the Program Guide.

Authority: Housing and Community Development Article, §§4-401—4-411, Annotated Code of Maryland

Effective date: November 19, 1984 (11:23 Md. R. 1991)

Chapter recodified from COMAR 05.01.17 to COMAR 05.05.01

Regulations .01—.13 repealed and new Regulations .01—.29 adopted effective March 4, 1991 (18:4 Md. R. 446)

Regulation .06 amended effective January 2, 1994 (20:25 Md. R. 1942); April 5, 1999 (26:7 Md. R. 538); January 21, 2002 (29:1 Md. R. 20)

Regulation .09E amended effective January 2, 1994 (20:25 Md. R. 1942)

Regulation .10 repealed and Regulation .11 amended and recodified to Regulation .10 as an emergency provision effective August 24, 1995 (22:19 Md. R. 1456); emergency status extended at 23:7 Md. R. 547)

Regulation .10 repealed effective August 26, 1996 (23:17 Md. R. 1246)

Regulation .11 amended effective August 26, 1996 (23:17 Md. R. 1246)

Regulation .16C amended effective May 31, 1999 (26:11 Md. R. 853)

Regulation .18D amended effective November 7, 1994 (21:22 Md. R. 1873)

Regulation .20 amended effective August 26, 1996 (23:17 Md. R. 1246)

Regulations .01—.23 Rental Housing Program repealed and new Regulations .01—.32 Multifamily Rental Financing Program adopted effective March 13, 2006 (33:5 Md. R. 518)

Regulation .15B amended effective April 19, 2010 (37:8 Md. R. 614)

Regulations .01—.32 Multifamily Rental Financing Program repealed and new Regulations .01—.34 Rental Housing Program adopted effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .13 amended effective October 8, 2018 (45:20 Md. R. 917)