1. A. Loans. The Trust may provide loans from the Fund to an eligible borrower for:

   1. (1) Acquisition of historic property;
   2. (2) Rehabilitation of historic property;
   3. (3) Restoration of historic property;
   4. (4) Refinancing of historic property; and

   5. (5) Preparation costs that are directly related to work required or recommended by the Trust or the State Historic Preservation Officer through the review of a construction project in the State under Section 106 of the National Historic Preservation Act of 1966, as amended, or State Finance and Procurement Article, §§5A-325 and 5A-326, Annotated Code of Maryland, provided that the:

      1. (a) Term of the loan may not exceed 24 months; and
      2. (b) Borrower has evidence of permanent financing to serve as the source of repayment of the loan.

2. B. Trust Expenditures.

   1. (1) The Trust may directly expend moneys in an amount up to 50 percent of those moneys available in the Fund which are derived from repayments or prepayments of loans made from the Fund or the proceeds from the resale or lease of any properties originally acquired with moneys from the Fund for the:

      1. (a) Acquisition of historic property; and
      2. (b) Restoration or rehabilitation of historic properties owned by the Trust, which may include preparation costs.
   2. (2) Trust expenditures under this section for acquisition, rehabilitation, or restoration shall be for use in accordance with the Trust's authorized purposes set forth in State Finance and Procurement Article, §5A-311, Annotated Code of Maryland, or for resale or lease by the Trust subject to appropriate preservation covenants.
   3. (3) Trust expenditures under this section are not considered loans as defined in these regulations and are governed solely by the provisions of this section, Regulation .07 of this chapter, and any other regulation or provision of law to which this section or Regulation .07 of this chapter may specifically refer.

3. C. Transfers.

   1. (1) The Trust may provide transfers from the Fund to a transferee:

      1. (a) To pay for the transferee to acquire historic properties or interests in historic properties for resale or lease;
      2. (b) To pay costs, including preparation costs, directly related to the rehabilitation or restoration of historic properties owned by the transferee for resale or lease;
      3. (c) To pay administrative costs incurred to restore or rehabilitate historic properties owned by the transferee for resale or lease, to the extent permitted under Regulation .08D(3) of this chapter;
      4. (d) To make subloans to other nonprofit organizations, political subdivisions, and business entities to acquire, rehabilitate, restore, or refinance historic properties;
      5. (e) To make subloans to individuals to rehabilitate or restore historic properties recognized by the National Park Service as national historic landmarks; or
      6. (f) To pay necessary administrative costs and programmatic expenses associated with the transfer of funds, to the extent permitted under Regulation .08D(3) of this chapter.
   2. (2) Transfers under this section are not considered loans as defined in these regulations.

Authority: State Finance and Procurement Article, §§5-203, 5A-318, 5A-327, and 5A-331, Annotated Code of Maryland;
Executive Orders 01.01.1992.27C and 01.01.1998.04

Effective date: May 14, 1990 (17:9 Md. R. 1088)

Regulation .05 amended effective January 2, 1994 (20:25 Md. R. 1944); April 5, 1999 (26:7 Md. R. 540); January 21, 2002 (29:1 Md. R. 22)

Regulation .06C amended effective January 2, 1994 (20:25 Md. R. 1944)

Chapter recodified from COMAR 05.08.02 to COMAR 34.04.02

Regulation .01 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .02 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .03B amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .04 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .05 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .05A amended effective November 15, 2010 (37:23 Md. R. 1613)

Regulation .05C repealed effective April 24, 2017 (44:8 Md. R. 408)

Regulation .06 amended effective July 9, 2012 (39:13 Md. R. 786); August 19, 2024 (51:16 Md. R. 744)

Regulation .07 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .07B amended effective November 15, 2010 (37:23 Md. R. 1613)

Regulation .08 amended effective October 10, 2016 (43:20 Md. R. 1111); August 19, 2024 (51:16 Md. R. 744)

Regulation .08C amended effective March 25, 2019 (46:6 Md. R. 347)

Regulation .09 amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .10A amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .10C adopted effective August 19, 2024 (51:16 Md. R. 744)

Regulation .11A, B amended effective August 19, 2024 (51:16 Md. R. 744)

Regulation .13 amended effective August 19, 2024 (51:16 Md. R. 744)