1. A. Nondiscrimination. Households having vouchers under the Section 8 Tenant-Based Assistance: Housing Choice Voucher Program (24 CFR Part 982) or other tenant-based rental assistance, including the HOME tenant-based rental assistance program, may not be excluded from units in the HOME project because of the status of the prospective tenant as a holder of such voucher or other tenant-based assistance document.

2. B. Annual Review.

   1. (1) Tenant Income.

      1. (a) Owners shall examine the income of each tenant household annually.

      2. (b) Unless a unit has been allocated federal low-income housing tax credits, tenants who no longer qualify as income eligible households shall pay rent equal to the lesser of:

         1. (i) The amount payable by the tenant under State or local law; or
         2. (ii) 30 percent of the household's adjusted monthly income as recertified annually.
      3. (c) If noncompliance with the occupancy requirements is caused by an increase in tenant income, all vacancies shall be filled with eligible households until the noncompliance is corrected.

   2. (2) Rent Increases.

      1. (a) Maximum monthly rent shall be recalculated by the owner annually.
      2. (b) The Department shall review and approve the proposed adjustments to rent before they are implemented.

3. C. Lease Terms.

   1. (1) Minimum Term. Leases for HOME units are for 1 year or more unless the owner and tenant mutually agree otherwise.

   2. (2) The lease shall be reviewed and approved by the Department to confirm that it does not contain an agreement by the tenant:

      1. (a) To be sued, to admit guilt, or confess judgment in favor of the owner in a legal proceeding related to the lease;
      2. (b) That the owner may take, hold, or sell personal property of household members without notice and a court decision on the rights of the parties;
      3. (c) To waive any legal liability arising from the owner's or the owner's agents' intentional or negligent acts or failure to act;
      4. (d) That the owner may initiate a lawsuit against the tenant without notice to the tenant;
      5. (e) That the owner may evict the tenant, or any household member, without obtaining a court decision on the merits, in which the tenant had the opportunity to present a defense;
      6. (f) To waive any right to trial by jury;
      7. (g) To waive any appeal rights or otherwise challenge a court decision concerning the lease;
      8. (h) To pay legal fees or costs if the tenant wins in court; and
      9. (i) To accept supportive services that are offered (other than a tenant in transitional housing).

   3. (3) Lease Termination. A lease may only be terminated or a renewal be refused upon 30 days written notice and after:

      1. (a) Serious or repeated violations of the lease terms;
      2. (b) A violation of applicable law;
      3. (c) Completion of the tenancy period for transitional housing or failure to follow any required transitional housing supportive services plan; or
      4. (d) Other good cause, which does not include an increase in the tenant’s income or refusal of the tenant to purchase the housing.

4. D. Property Maintenance.

   1. (1) During the period of affordability, the owner of HOME-assisted rental housing shall maintain the premises in compliance with Regulation .14 §A(1) or B(6) of this chapter, as applicable.
   2. (2) The Department or its designee shall inspect the property in accordance with the requirements contained in 94 CFR §92.504.
   3. (3) The property owner shall annually certify to the Department that each building and all HOME-assisted units in the project are suitable for occupancy and are in compliance with the Department’s property standards.

5. E. Tenant Selection. The owner of a rental housing development project assisted with HOME funds shall comply with the Department’s affirmative marketing requirements, including the adoption of written tenant selection policies and criteria that:

   1. (1) Limit the housing to income eligible households;
   2. (2) Are reasonably related to the tenant’s ability to perform the obligations of the lease;
   3. (3) Provide for selection of tenants from a written evaluation used in chronological order of application; and
   4. (4) Provide prompt written notification to any rejected applicant and the grounds for the rejection.
6. F. Affirmative Fair Housing Marketing Plan. Each project shall submit for review and approval by the Department an affirmative fair housing marketing plan in accordance with the requirements of the Program Guide. The Department shall monitor the project’s compliance with the approved plan.

7. G. Prohibited Fees. Project owners may not charge fees that are not customarily charged in rental housing, except that rental project owners may charge:

   1. (1) Reasonable application fees to prospective tenants;
   2. (2) Parking fees to tenants only if such fees are customary for rental housing projects in the neighborhood; and
   3. (3) Fees for services such as bus transportation or meals, as long as the services are voluntary and fees are charged for services provided.

Authority: Housing and Community Development Article, §§2-111(b) and 4-211(a)(8) and (10);
State Finance and Procurement Article, §§5-7B-01—5-7B-10; Annotated Code of Maryland
Executive Order 01.01.1998.04

Effective date: January 2, 1993 (19:26 Md. R. 2285)

Chapter revised effective December 5, 1994 (21:24 Md. R. 1987)

Regulation .03B amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .04D amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .05B amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .05C amended effective April 5, 1999 (26:7 Md. R. 540)

Regulation .06C amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .07 amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .09A amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .09C, D amended effective September 6, 1999 (26:18 Md. R. 1374)

Regulation .10B amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .11A amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .11B amended effective July 1, 1996 (23:13 Md. R. 940)

Regulation .12 amended effective March 24, 1997 (24:6 Md. R. 483)

Regulation .15B, C amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .16B amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .17 amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .18C amended effective September 25, 1995 (22:19 Md. R. 1471)

Regulation .20C amended as an emergency provision effective August 24, 1995 (22:19 Md. R. 1459); emergency status extended at 23:7 Md. R. 548; amended permanently effective August 26, 1996 (23:17 Md. R. 1247)

Chapter revised effective June 26, 2000 (27:12 Md. R. 1137)

Regulation .05B amended effective January 21, 2002 (29:1 Md. R. 22)

Chapter revised effective March 13, 2006 (33:5 Md. R. 519)

Regulation .02B amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .03 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .04 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .05D amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .06B, C amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .07 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .09 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .10 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .11A amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .14 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .15 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .16 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .18B, C amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .19C amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .20 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .21 amended effective December 22, 2014 (41:25 Md. R. 1476)

Regulation .22D amended effective December 22, 2014 (41:25 Md. R. 1476)