§ 4-407

(a) A project qualifies as a rental housing project under this subtitle if:

(1) its purpose is to acquire, construct, or rehabilitate real property or all or part of a building or improvements that will be occupied by households of limited income as provided in this subsection; and

(2) a portion of the rental units in the project are set aside for households of lower income for the greater of:

(i) 15 years; or

(ii) the number of years required by federal law.

(b) The minimum number of rental units set aside under subsection (a)(2) of this section shall be the greater of:

(1) the number that bears the same ratio to the whole number of rental units in the project as the amount of the Program loan bears to the whole financing of the undertaking; or

(2) the number of rental units chosen by the sponsor to satisfy federal occupancy requirements, if the project receives federal low–income housing tax credits or is financed in part with government–issued, federally tax–exempt revenue bonds.

(c) Rental units restricted for occupancy to meet other federal, State, or local occupancy requirements may be counted toward the minimum number required under this section.

(d) A rental unit that continues to meet applicable federal occupancy restrictions under subsection (b)(2) of this section shall be deemed to continue to meet the applicable restrictions for purposes of this subtitle.

(e) A project qualifies as a rental housing project under this subtitle and is not subject to the income restrictions specified in this section if it will:

(1) effect an office or other commercial space conversion into market rate rental housing; and

(2) provide substantial economic development to a sustainable community as defined in § 6–301 of this article.