1. A. Financial assistance may be used for:

   1. (1) Loans for project development costs including, but not limited to:

      1. (a) The acquisition of land, structures, equipment, or furnishings which are or will be a part of a project;
      2. (b) Reasonable fees, as determined by the Program, for architectural, engineering, legal, or other special services;
      3. (c) Preparation of title binders, surveys, plans, and specifications as approved by the program;

      4. (d) Special studies such as:

         1. (i) Market and feasibility studies,
         2. (ii) Property appraisals,
         3. (iii) Test borings, and
         4. (iv) Other studies acceptable to the Department;
      5. (e) Site preparation and extension of utilities on-site;
      6. (f) Cost of labor and materials for new construction or rehabilitation or installation of improvements as set forth in approved plans and specifications for a project;
      7. (g) Acquisition of machinery and equipment necessary to the operation of a commercial/industrial enterprise as set forth in approved plans and specifications;
      8. (h) Indemnity and surety bonds;
      9. (i) Premiums on hazard, liability, title, and mortgage insurance;
      10. (j) Necessary fees, licenses, and permits related to construction, project review, and approval;
      11. (k) Payment and performance bonds;
      12. (l) Other direct project costs and fees acceptable to the Department;
   2. (2) Assurances, guarantees, loan guarantees, or other credit enhancement;
   3. (3) Buy-down of the rate of interest payable on a loan or a portion of a loan made by a third party;
   4. (4) Prepayment of interest on a loan or portion of a loan.
2. B. The Fund may be used to pay the expenses of the Program.

Authority: Housing and Community Development Article, §§2-102 and 2-111, Annotated Code of Maryland; Chapter 654, Acts of 1996

Effective date:

Regulations .01—.17 adopted as an emergency provision effective

October 31, 1988 (15:24 Md. R. 2760); emergency status extended at 16:10 Md. R. 1101; adopted permanently effective August 7, 1989 (16:15 Md. R. 1650)

Chapter revised effective April 15, 1991 (18:7 Md. R. 771)

Regulation .03B amended effective February 1, 1993 (20:2 Md. R. 111)

Regulation .15B amended effective February 1, 1993 (20:2 Md. R. 111)

Chapter recodified from COMAR 05.07.04 to COMAR 05.15.01 effective September 6, 1999 (26:18 Md. R. 1373)

Chapter revised effective September 6, 1999 (26:18 Md. R. 1373)

Regulation .12 amended effective March 16, 2015 (42:5 Md. R. 485)