1. A. Production Grants. Nonprofit organizations shall meet the following requirements to qualify for a production grant:

   1. (1) Have the legal capacity to enter into a grant agreement;
   2. (2) Satisfy all legal requirements to operate in the State;

   3. (3) Meet the performance standards of the Department, as follows:

      1. (a) Not have defaulted on a prior loan from the Department;
      2. (b) Not be currently barred or suspended from any of the Department's programs;
      3. (c) Not have previously received a production grant and failed to complete the project in a timely manner; and

   4. (4) Satisfy one of the following criteria:

      1. (a) Have received a reservation or commitment of funds from the Department, or other source satisfactory to the Department, to finance the acquisition, construction, or rehabilitation of:

         1. (i) Rental housing of the type which is eligible for financing through the rental housing programs or special loan programs,
         2. (ii) A group home which is eligible for financing through the Group Home Financing Program of the special loan programs, or
         3. (iii) Single family for-sale housing or an advance reservation of mortgage funds for income eligible households to purchase housing developed by the nonprofit organization which are eligible activities through the homeownership programs; or

      2. (b) Assist a third party applicant by having provided:

         1. (i) Technical assistance in applying for a loan under the special loan programs to individuals who reside in a dwelling located in a noncertified jurisdiction, or providing lead paint testing or assessment services to homeowners and landlords who have applied for a loan through the Lead Hazard Reduction Grant and Loan Program which is one of the special loan programs, and
         2. (ii) The Department's certification that the organization's efforts were responsible for originating the application and that the application was not processed by a local government certified as a local administrator by the special loan programs.

2. B. Capacity Building Grants. A nonprofit organization shall meet the following requirements to qualify for a capacity building grant:

   1. (1) Have the legal capacity to enter into the grant;
   2. (2) Satisfy all legal requirements to operate in the State;
   3. (3) Not have received a prior capacity building grant;
   4. (4) Except as set forth in §C of this regulation, not have participated, within the 2 years before making application for a capacity building grant, in any projects or activities financed by the housing programs for which it is applying to develop capacity; and

   5. (5) Meet the performance standards of the Department, as follows:

      1. (a) Not have defaulted on a prior loan from the Department, and
      2. (b) Not be currently barred or suspended from any of the Department's programs.

3. C. A nonprofit organization may be eligible for a capacity building grant if the nonprofit organization has undertaken projects or activities with a housing program within the 2 years before making application for a capacity building grant for the same program, but has insufficient experience and expertise to undertake additional housing development, as determined in the sole discretion of the Department, based on:

   1. (1) The frequency, scope, size, and complexity of the prior activity or project;
   2. (2) The staffing, resources, and expertise of the nonprofit organization; and
   3. (3) Other factors considered relevant by the Department.
4. D. Joint Applications. Two or more nonprofit organizations may apply jointly for a capacity building grant provided each applicant qualifies as an eligible grantee. For example, a nonprofit organization with experience developing rental housing and a nonprofit organization with experience developing homeownership housing may apply jointly for a capacity building grant to increase the capacity of the former nonprofit organization to undertake homeownership development and the latter to undertake rental housing development.
5. E. Nonprofit Status. Nonprofit organizations which are affiliated with or controlled by a for-profit organization shall not be eligible for operating assistance grants.

6. F. Technical Assistance Grants. A nonprofit organization, local development agency, local government, or local development corporation shall meet the following requirements to qualify for a technical assistance grant:

   1. (1) Have the legal capacity to enter into the grant;
   2. (2) Satisfy all legal requirements to operate in the State; and

   3. (3) Meet the performance standards of the Department, as follows:

      1. (a) Not have defaulted on a prior loan from the Department, and
      2. (b) Not be currently barred or suspended from any of the Department's programs.

Authority: Housing and Community Development Article, §§2-102 and 4-211 and Title 4, Subtitle 11, Annotated Code of Maryland

Effective date:

Regulations .01—.12 adopted as an emergency provision effective April 8,

1991 (18:9 Md. R. 982); emergency status expired September 8, 1991

Regulations .01—.12 adopted effective September 16, 1991 (18:18 Md. R.

2003)

Chapter revised effective September 6, 1999 (26:18 Md. R. 1374)

Regulation .03B amended effective March 5, 2012 (39:4 Md. R. 336)

Regulation .08E amended effective October 4, 1999 (26:20 Md. R. 1544)

Regulation .08G amended effective March 5, 2012 (39:4 Md. R. 336)

Regulation .10 amended effective March 16, 2015 (42:5 Md. R. 485)

Regulation .11A amended effective October 4, 1999 (26:20 Md. R. 1544)