Maryland Code § HS-4-1207

Section HS-4-1207
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(a) Except as provided in subsection (c) of this section, the Department may
approve an application for a proposed partnership project only if:
(1) the application is authorized by the chief elected official of the
political subdivision or, if there is no chief elected official, by the governing body of
the political subdivision in which the project is located;
(2) the political subdivision or housing authority:

(i) contributes from non-State sources the land for the
partnership rental housing;
(ii) funds the part of the acquisition cost of the property that is
attributable to the value of the land; or
(iii) makes a contribution under § 4-1208(d)(2) of this subtitle
that equals or exceeds the value of the land;
(3) the political subdivision or housing authority is to have an
ownership interest in the partnership project or in the rental units financed by the
Program and sold to the political subdivision or housing authority or to a partnership
that includes the political subdivision or housing authority;
(4) the political subdivision or housing authority directly or indirectly
manages the partnership project;
(5) the rental units financed by the Program are to be occupied on
completion of the acquisition, construction, reconstruction, renovation, or
rehabilitation by households of lower income;
(6) unless prohibited by any applicable federal requirement, the
households of lower income occupying the partnership project or the part financed by
the Program are required to contribute services to enhance or maintain the
partnership project or the community in a way that the political subdivision or
housing authority accepts; and
(7) it is reasonable to anticipate that:
(i) more State subsidies will not be needed for long-term
occupancy by households of lower income; and
(ii) rental income, including any contribution to allow for more
affordable rents under § 4-1208(d) of this subtitle, will be enough to pay the operating
costs of the partnership project and to build an adequate reserve for the long-term
maintenance and renovation of the partnership project.
(b) The rental units financed by the Program may include, as among those
that must be occupied by households of lower income, rental units restricted for
occupancy to meet other federal or State occupancy requirements.
(c) The Department may approve the use of partnership rental housing
funds for a unit of partnership rental housing that does not comply with each
requirement set forth in subsection (a) of this section if:

(1) the unit will be occupied by a household of lower income that
includes one or more individuals with disabilities or special needs; and
(2) the project in which the unit is located complies with the
requirements of the other State housing programs financing the project, if any.

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