WES MOORE, Governor Ch. 156
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Chapter 156
(Senate Bill 704)
AN ACT concerning
Appraisal Gap From Historic Redlining Financial Assistance Program –
Alterations
FOR the purpose of expanding eligibility for financial assistance under the Appraisal Gap
From Historic Redlining Financial Assistance Program to include individuals who
purchase certain qualified property as an owner–occupant; and generally relating to
the Appraisal Gap From Historic Redlining Financial Assistance Program.
BY repealing and reenacting, without amendments,
Article – Housing and Community Development
Section 4–2801(a), (e), (g), and (h)
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 4–2802 and 4–2804
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND ,
That the Laws of Maryland read as follows:
Article – Housing and Community Development
4–2801.
(a) In this subtitle the following words have the meanings indicated.
(e) “Financial assistance” includes:
(1) a grant;
(2) a loan;
(3) a reduction in the principal obligation of or rate of interest payable on
a loan or portion of a loan;
(4) a prepayment of interest on a subordinate or superior loan or portion of
a loan;
Ch. 156 2024 LAWS OF MARYLAND
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(5) an assurance;
(6) a guarantee; and
(7) any other form of credit enhancement.
(g) “Qualified project” means the construction or substantial rehabilitation of a
qualified property if the eligible construction expenses do not exceed $500,000.
(h) “Qualified property” means residential real property that is:
(1) newly constructed or a formerly vacant structure that has been
substantially rehabilitated;
(2) located in:
(i) a low–income census tract as defined by the U.S. Department of
Housing and Urban Development; and
(ii) an area designated as a sustainable community; and
(3) constructed or rehabilitated with the purpose of being sold to an
owner–occupant at an affordable sales price.
4–2802.
(a) There is an Appraisal Gap From Historic Redlining Financial Assistance
Program in the Department.
(b) The purpose of the Program is to [make] HELP CLOSE APPRAISAL GAPS
THAT OCCUR IN HISTOR ICALLY REDLINED NEIG HBORHOODS BY MAKING financial
assistance available to:
(1) affordable housing developers working in low–income census tracts and
sustainable communities [in order to help close appraisal gaps that occur in historically
redlined neighborhoods]; AND
(2) INDIVIDUALS WHO PURC HASE A QUALIFIED PRO PERTY:
(I) AFTER A QUALIFIED PROJECT IS COMPLETED ;
(II) AT AN AFFORDABLE SAL ES PRICE AS DETERMIN ED BY
REGULATIONS ADOPTED BY THE DEPARTMENT ; AND
(III) AS AN OWNER–OCCUPANT. WES MOORE, Governor Ch. 156
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4–2804.
(a) Subject to § 4–2805 of this subtitle and the regulations of the [department]
DEPARTMENT , the Department shall accept an application for financial assistance from:
(1) an individual or business entity that proposes to develop a qualified
project; AND
(2) AN INDIVIDUAL THAT P ROPOSES TO PURCHASE A QUALIFIED
PROPERTY.
(b) The application shall be in the form and shall contain any information that
the Department requires by regulation.
(c) The Department shall approve all applications that qualify for financial
assistance under this subtitle in a timely manner.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, April 25, 2024.