(a)A political subdivision, housing authority, or other eligible borrower may participate in the Program and do all things necessary or convenient to its participation, including:
(1)developing, acquiring, improving, owning, operating, and managing rental housing;
(3)mortgaging, pledging, and granting a security interest in real or personal property related to a particular partnership project.
(b)Except as provided in subsection (g) of this section, the Department may not require a borrower to repay money made available under the Program, unless the borrower:
(1)sells the partnership project; or
(2)fails to operate the partnership project for the benefit of households of lower income in ac
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(a) A political subdivision, housing authority, or other eligible borrower may participate in the Program and do all things necessary or convenient to its participation, including:
(1) developing, acquiring, improving, owning, operating, and managing rental housing;
(2) borrowing money; and
(3) mortgaging, pledging, and granting a security interest in real or personal property related to a particular partnership project.
(b) Except as provided in subsection (g) of this section, the Department may not require a borrower to repay money made available under the Program, unless the borrower:
(1) sells the partnership project; or
(2) fails to operate the partnership project for the benefit of households of lower income in accordance with agreements between the Department and the political subdivision or housing authority.
(c) The Department shall secure the obligations of the borrower by using a mortgage, deed of trust, or other security device that the Department accepts on the property or on revenues derived from the property.
(d) (1) To allow for more affordable rents, a political subdivision or housing authority may contribute local money, including locally administered federal money or federal rental assistance.
(2) The contributions of political subdivisions or housing authorities under § 4–1207(a)(2)(iii) of this subtitle may include the costs of:
(i) necessary studies, surveys, tests, plans, and specifications;
(ii) architectural, design, engineering, and other special services;
(iii) site preparation;
(iv) indemnity and surety bonds and premiums on title and hazard insurance; and
(v) other costs of development.
(e) To participate in the Program and to receive loans, a political subdivision or housing authority may not be required to pledge its full faith and credit.
(f) For rental housing financed from the Fund and owned or managed by a housing authority, this subtitle supersedes:
(1) §§ 12–401, 12–402, and 12–405 of this article; and
(2) all other restrictions on tenant income under Division II of this article.
(g) If necessary to comply with, or receive the benefit of, federal or other financial assistance, funds provided under the Program may be made available as a deferred payment loan repayable on the later of:
(1) the occurrence of one of the events set forth in subsection (b) of this section; or
(2) a maturity date set by the Department.