Maryland Code § HS-4-919

Section HS-4-919
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(a) The Secretary shall establish standards to promote the maximum use of
private financing.
(b) If a portion of a rehabilitation project is to be financed by a private
lending institution, the Department shall require that the sponsor use all the private
financing that the rehabilitation project can support without impairing:
(1) the rehabilitation project; or
(2) affordable housing for families of limited income, if the
rehabilitation project is residential.
(c) As long as the State complies with all applicable federal treasury
regulations governing borrowing money by the State, a Program loan shall be at an
interest rate that at least covers:
(1) the administrative and other expenses of the Program; and
(2) reasonably expected losses from defaults on Program loans.

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