Md. Code, Housing and Community Development § 6-101
(a) There is a Division of Neighborhood Revitalization.
(b) The Division of Neighborhood Revitalization includes the Neighborhood Business Development Program.
Md. Code, Housing and Community Development, Title 6
Md. Code, Housing and Community Development, Title 6
in effectMd. Code, Housing and Community Development § 6-102
(a) The Division of Neighborhood Revitalization shall administer commercial and mixed–use revitalization programs to encourage physical and organizational improvements to business areas.
(b) To carry out commercial and mixed–use revitalization programs, the Division of Neighborhood Revitalization shall administer State and federal grants and loans and other financial assistance to:
(1) political subdivisions, local public agencies, nonprofit organizations, neighborhood or community organizations, or private parties; or
(2) corporations or foundations whose net earnings are invested to foster, encourage, help, or carry out community assistance activities, projects, or programs.
(c) The Department may:
(1) charge and collect from a project applicant or recipient of financial assistance under this title:
(i) origination, application, and processing fees; and
(ii) any other charges, fees, or reimbursements incidental to a project application or providing financial assistance; and
(2) include the fees and charges listed in this section in the amount of financial assistance.
Md. Code, Housing and Community Development § 6-103
(a) A commercial or mixed-use revitalization program provides assistance for downtown or business area commercial management, promotion, and revitalization.
(b) Assistance may be in an area such as:
(1) market surveying, grantsmanship, organization, economic development, design, or similar services; or
(2) facilitating establishment of a commercial district management authority.
Md. Code, Housing and Community Development § 6-104
(a) (1) The General Assembly finds that the State must have sustainable communities in order to:
(i) preserve and protect the State’s natural resources; and
(ii) achieve the State’s economic growth, resource protection, and planning policy in § 5–7A–01 of the State Finance and Procurement Article.
(2) The General Assembly finds that sustainable communities are places where public and private investments and partnerships achieve:
(i) development of a healthy local economy;
(ii) protection and appreciation of historic and cultural resources;
(iii) a mix of land uses;
(iv) affordable and sustainable housing and job options; and
(v) growth and development practices that protect the environment and conserve air, water, and energy resources, encourage walkability and recreational opportunities, and, where available, create access to transit.
(b) It is the intent of the General Assembly that the community legacy and neighborhood business development programs:
(1) be used to create, enhance, support, and revitalize sustainable communities across the State; and
(2) be coordinated with other State programs, such as the Sustainable Communities Tax Credit Program established under Title 5A, Subtitle 3 of the State Finance and Procurement Article, in order to maximize the State’s investment in sustainable communities.
Md. Code, Housing and Community Development § 6-201
(a) In this subtitle the following words have the meanings indicated.
(b) “Application” means an application to the Secretary that includes a request to:
(1) designate an area as a sustainable community;
(2) approve a sustainable community plan; or
(3) approve a community legacy project.
(c) “Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.
(d) “Community development organization” means an entity that meets the qualifications of § 6–203 of this subtitle.
(e) “Community legacy agreement” means an agreement between the Department and a sponsor to develop a sustainable community plan or to implement one or more community legacy projects in a designated sustainable community or an eligible opportunity zone.
(f) “Community legacy project” includes a project in a sustainable community or an eligible opportunity zone to:
(1) create, improve, or preserve housing opportunities by acquiring, constructing, rehabilitating, or improving new or existing residential properties;
(2) demolish buildings or improvements strategically to enhance the use of land;
(3) create, improve, or preserve commercial or mixed–use development, including an appropriate combination of properties related to business, housing, open–space, and institutional uses;
(4) develop public infrastructure that is incidental to the implementation of a community legacy project, such as streets, parking, public utilities, landscaping, lighting, and improvements to pedestrian and bicycle circulation;
(5) encourage and develop cooperative ownership or control of open space;
(6) develop or create strategies designed to increase investment in existing communities, including outreach activities to attract business, capital, residents, and visitors and the development and maintenance of resources directly related to the development of a sustainable community plan or the implementation of a community legacy project;
(7) engage in landbanking or otherwise acquire or improve vacant buildings or unimproved land;
(8) provide financial assistance for neighborhood intervention projects; or
(9) develop other plans or implement other projects as the Department considers necessary to further the purposes of this subtitle.
(g) “Eligible opportunity zone” means an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code that is located in Allegany County, Garrett County, Somerset County, or Wicomico County.
(h) “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;
(5) an assurance;
(6) a guarantee; and
(7) any other form of credit enhancement.
(i) “Landbanking” means acquiring or holding improved and unimproved property:
(1) in anticipation of future development of the property; or
(2) to keep the future use of the property and improvements affordable.
(j) “Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.
(k) “Program” means the Community Legacy Program established by this subtitle.
(l) “Sustainable Growth Subcabinet” means the subcabinet established under § 9–1406 of the State Government Article.
(m) “Sustainable community” means the part of a priority funding area that:
(1) as determined by the Sustainable Growth Subcabinet, satisfies the requirements of § 6–205 of this subtitle;
(2) has been designated as a BRAC Revitalization and Incentive Zone under Title 5, Subtitle 13 of the Economic Development Article; or
(3) has been designated a transit–oriented development under § 7–101 of the Transportation Article.
(n) “Sustainable community plan” means a plan consisting of one or more community legacy projects or other revitalization projects to prevent or reverse the decline of or disinvestment in a sustainable community through improvements in residential, commercial, or other public or private properties.
Md. Code, Housing and Community Development § 6-202
(a) There is a Community Legacy Program.
(b) The Department shall administer the Program.
(c) The purposes of the Program are to:
(1) preserve existing communities as desirable places to live and conduct business to reduce outward pressure for sprawl development; and
(2) provide financial assistance to sponsors or their designees to develop sustainable community plans or community legacy projects.
(d) The Program shall encourage partnerships among the federal government, the State government, political subdivisions, and community development organizations to develop and implement sustainable community plans and community legacy projects.
(e) A sustainable community plan or a community legacy project may be sponsored by a political subdivision, a group of political subdivisions, a community development organization, or a community development financial institution.
Md. Code, Housing and Community Development § 6-203
A corporation, foundation, or other legal entity qualifies as a community development organization if:
(1) its purpose is to improve the physical, economic, or social environment of the area where it operates; and
(2) no part of its net earnings inures to the benefit of a private shareholder or individual holding an interest in that entity.
Md. Code, Housing and Community Development § 6-204
(a) A sponsor may file one or more applications in accordance with the schedules that the Department establishes.
(b) An application shall set forth:
(1) a description of one or more sustainable communities where the sponsor proposes to develop a sustainable community plan or to carry out a community legacy project using the standards listed in § 6–205 of this subtitle;
(2) a detailed description of the proposed sustainable community plan or proposed community legacy project;
(3) the amount and type of financial assistance sought;
(4) the ability of the sponsor to carry out the proposed sustainable community plan or community legacy project;
(5) the strength and quality of partnerships created among the federal government, the State government, political subdivisions, community development organizations, and other private organizations to develop the sustainable community plan or carry out the community legacy project, including:
(i) financial support;
(ii) dedication of staff and resources; and
(iii) commitment to and development of local smart growth policies;
(6) proposed benchmarks for evaluating whether the proposed sustainable community plan or community legacy project results in a desired outcome for a proposed sustainable community, such as:
(i) stabilizing it;
(ii) reversing its social, economic, or physical decline; or
(iii) encouraging growth in it; and
(7) the process used to seek and receive public input on the proposed sustainable community plan or community legacy project, including the nature and extent of public support or opposition.
(c) (1) The Sustainable Growth Subcabinet, on the recommendation of the Secretary, may designate an area as a sustainable community.
(2) If the Sustainable Growth Subcabinet has not acted within 90 days of a recommendation from the Secretary, the Secretary may designate an area as a sustainable community without the approval of the Sustainable Growth Subcabinet.
Md. Code, Housing and Community Development § 6-205
(a) The Sustainable Growth Subcabinet, on the recommendation of the Secretary, may designate an area as a sustainable community if the sponsor demonstrates that past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment show a need for reinvestment in the area and if:
(1) entities in the community, such as local governments, employers, educational institutions, civic organizations, community organizations, or cultural organizations, support the proposed sustainable community plan and have pledged resources to develop or implement it;
(2) the proposed sustainable community plan addresses the need for reinvestment in the area and will enhance the area, and give individuals of different incomes a range of housing options, employment opportunities, and other amenities;
(3) a community in the proposed area is culturally or historically significant;
(4) the proposed area is near a town center or a transportation center;
(5) the proposed sustainable community plan is consistent with and complements other existing or proposed projects for housing, commercial or community development, education, historic preservation, neighborhood revitalization, transportation, or other things significant to the comprehensive enhancement of the community; or
(6) there is a demonstrated need for financing assistance for small businesses, nonprofit organizations, or microenterprises.
(b) (1) To maintain a sustainable community designation:
(i) every 5 years a sponsor shall file an updated plan and application with the Department; and
(ii) the Secretary shall make designation recommendations for approval by the Sustainable Growth Subcabinet under § 6–204 of this subtitle.
(2) The Department shall convene an interagency review team from the agencies of the Sustainable Growth Subcabinet to:
(i) review applications and plans;
(ii) provide assistance and guidance to applicants; and
(iii) make recommendations to the Secretary.
(3) The Sustainable Growth Subcabinet may redesignate an area as a sustainable community taking into consideration the factors in subsection (a) of this section.
Md. Code, Housing and Community Development § 6-206
(a) The Department shall:
(1) review each application and may request more information from the sponsor;
(2) accept public input on each application;
(3) submit each application to appropriate State units and appropriate members of the Sustainable Growth Subcabinet;
(4) consider any recommendation a State unit or member of the Sustainable Growth Subcabinet makes;
(5) consider geographic balance when reviewing applications; and
(6) give priority in awarding financial assistance to applicants that are likely to repay the financial assistance to a community development financial institution or to the Community Legacy Financial Assistance Fund.
(b) (1) The Department shall provide written notice to the political subdivision in which the proposed project is located.
(2) Except as provided in paragraph (5) of this subsection, the Department may not approve an application unless the political subdivision in which the proposed project is located approves the application by:
(i) resolution; or
(ii) letter, delivered to the Department by the political subdivision’s authorized designee, expressing support for the plan or project.
(3) If an application affects a sustainable community or an eligible opportunity zone entirely within a municipal corporation, the approval must come from the municipal corporation rather than the surrounding county.
(4) If an application affects a sustainable community or an eligible opportunity zone within more than one political subdivision, each political subdivision must approve it by:
(i) resolution; or
(ii) letter, delivered to the Department by the political subdivision’s authorized designee, expressing support for the plan or project.
(5) If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.
(c) The Secretary shall award financial assistance to a sponsor or a sponsor’s designee:
(1) in the amount and of the type that the Secretary determines; and
(2) under the terms of a community legacy agreement.
Md. Code, Housing and Community Development § 6-207
(a) The Department and the sponsor shall execute a community legacy agreement.
(b) The sponsor shall comply with the terms of the community legacy agreement and any regulations the Department adopts to carry out this subtitle.
(c) Not more than 15% of the total financial assistance that the Program provides may be used for noncapital expenditures.
(d) The Department may exercise any remedy provided under the community legacy agreement or by law if a sponsor:
(1) violates any provision of the community legacy agreement; or
(2) ceases to meet the requirements of this subtitle.
Md. Code, Housing and Community Development § 6-208
(a) Subject to this section, the Department has the powers necessary or desirable to implement the Program.
(b) (1) The Department may determine the terms and conditions for financial assistance awarded under § 6–206(c) of this subtitle.
(2) Financial assistance may be secured by a mortgage, lien, or security interest that is superior to or subordinate to other mortgages, liens, or security interests.
(3) The Department may establish time limits for the use of financial assistance.
(c) (1) The Department may enforce the terms and conditions of the financial assistance given under this subtitle.
(2) Notwithstanding any other law, if a loan or grant is secured by a first or subordinate mortgage or other lien, the Department may:
(i) begin an action to protect or enforce any right given by law, a contract, or other agreement;
(ii) foreclose on property;
(iii) purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;
(iv) settle or compromise any debt or obligation owed to the Department;
(v) pay the principal of and interest on any obligation incurred in connection with the property, and dispose of or otherwise deal with the property to protect the interests of the Program; or
(vi) release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.
(d) (1) The Department may contract with any person, including a private property manager, mortgage servicer, architect, engineer, or other property consultant, or with any governmental unit, for property or services necessary to operate the Program or to implement community legacy projects.
(2) The Department may make agreements with other governmental units to establish partnerships to carry out the Program.
(3) The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid or participate in or administer a federal program.
(e) In connection with loans that it makes, the Department may:
(1) require and obtain appraisals, credit information, and other pertinent information; and
(2) charge interest.
(f) When it is consistent with the best interests of the State to do so, the Department may consent to the modification of any provision of any loan or other financial assistance.
Md. Code, Housing and Community Development § 6-209
(a) The purposes of a neighborhood intervention project are to provide financial assistance for:
(1) buying properties that need rehabilitation and redeveloping the properties through rehabilitation, demolition, reconstruction, or re–use; or
(2) demolishing property improvements and preparing property for revitalization, redevelopment, or re–use.
(b) To be eligible for financial assistance for a neighborhood intervention project, an applicant shall be:
(1) a political subdivision; or
(2) a community development finance institution.
(c) To be eligible for financial assistance, the applicant must provide evidence at the time of application that:
(1) the applicant has a legal interest in the property through:
(i) ownership of the property;
(ii) a contract, option, or other legal right to acquire the property; or
(iii) the right to demolish the improvements on the property;
(2) the applicant intends to revitalize, redevelop, sell, or re–use the property as part of a redevelopment strategy for the property or a redevelopment plan;
(3) the applicant has complied with the requirements of §§ 5A–325 and 5A–326 of the State Finance and Procurement Article and § 13–1112(b) of the Financial Institutions Article;
(4) the financial assistance from the Program is the least amount necessary to complete the project; and
(5) the project meets any other condition that the Department may require under this subtitle.
(d) Unless waived by the Secretary, a neighborhood intervention project shall meet the additional following requirements:
(1) the project shall be located in a sustainable community and be a part of a sustainable community plan in accordance with §§ 6–204(b)(1) and 6–205 of this subtitle; and
(2) for a project under subsection (a)(2) of this section, the applicant shall agree to repay the financial assistance to the Community Legacy Financial Assistance Fund, up to the amount the applicant receives from:
(i) the net proceeds of the sale of the property on which the demolition took place; or
(ii) any payment to the applicant relating to the property, including any payment for the costs of demolishing the improvements on the property.
(e) (1) The Secretary may not allocate annually more than 15% of the Community Legacy Financial Assistance Fund to neighborhood intervention projects.
(2) The Secretary may not award more than $500,000 for any neighborhood intervention project.
(3) The restrictions in paragraphs (1) and (2) of this subsection do not apply to projects approved by the Secretary in the case of an emergency or when the project requires urgent approval if the project is funded from the reserve established under § 6–211(h) of this subtitle.
Md. Code, Housing and Community Development § 6-210
(a) The sponsor shall submit to the Department quarterly progress reports on the development of a sustainable community plan or the implementation of a community legacy project.
(b) (1) The Department shall submit an annual report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly on or before each October 31.
(2) The report shall include:
(i) the financial status of the Program for the preceding fiscal year, including the amount and type of financial assistance encumbered and disbursed;
(ii) the number of applications received;
(iii) the number and location of sustainable communities designated; and
(iv) a summary of the quarterly reports submitted by sponsors under subsection (a) of this section.
Md. Code, Housing and Community Development § 6-211
(a) In this section, “Fund” means the Community Legacy Financial Assistance Fund.
(b) There is a Community Legacy Financial Assistance Fund.
(c) The Fund shall be used to carry out this subtitle.
(d) (1) The Secretary shall administer the Fund in accordance with this subtitle.
(2) The State Treasurer shall hold and the Comptroller shall account for the Fund.
(e) The Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) earnings from the investment of money in the Fund;
(3) repayments and prepayments of financial assistance provided by the Program; and
(4) any other money accepted for the benefit of the Fund from any governmental or private source.
(g) Notwithstanding any other law, the State Treasurer may invest money in the Fund in the same way as money is invested by the State Retirement and Pension System.
(h) In any fiscal year, the Secretary may hold up to 10% of the money in the Fund in reserve for emergency use or urgent projects in accordance with this subtitle.
Md. Code, Housing and Community Development § 6-212
(a) Subject to subsection (b) of this section, a sustainable community shall receive priority for State funding under the:
(1) Community Legacy Program under this subtitle;
(2) Sustainable Communities Tax Credit Program for commercial properties under Title 5A, Subtitle 3 of the State Finance and Procurement Article;
(3) Neighborhood Business Development Program under Subtitle 3 of this title;
(4) Maryland Historical Trust Grant Program under Title 5A, Subtitle 3 of the State Finance and Procurement Article; and
(5) African American Heritage Grant Program under Title 5A, Subtitle 3 of the State Finance and Procurement Article.
(b) Priority for State funding provided under subsection (a) of this section is available in a sustainable community only if:
(1) a political subdivision issues bonds, notes, or other similar instruments for that sustainable community under:
(i) Title 21, Subtitle 4, Part II of the Local Government Article;
(ii) Title 21, Subtitle 5 of the Local Government Article; or
(iii) Title 12, Subtitle 2 of the Economic Development Article; or
(2) a political subdivision demonstrates to the appropriate unit of State government that the political subdivision has funded infrastructure improvements in that sustainable community.
Md. Code, Housing and Community Development § 6-301
(a) In this subtitle the following words have the meanings indicated.
(b) (1) “Development costs” means the costs incurred to develop, redevelop, or expand a neighborhood business development project.
(2) “Development costs” includes the costs of:
(i) necessary studies, surveys, plans, and specifications;
(ii) architectural, engineering, or other special services, including flood plain studies, environmental audits, and critical area or wetland assessments;
(iii) land and improvements;
(iv) site preparation;
(v) construction, reconstruction, and rehabilitation;
(vi) machinery, equipment, and furnishings;
(vii) essential operating costs, including working capital and occupancy expenses;
(viii) indemnity and surety bonds and premiums on insurance;
(ix) temporary relocation expenses; and
(x) other costs determined to be acceptable by the Department.
(c) “Eligible opportunity zone” means an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code that is located in Allegany County, Garrett County, Somerset County, or Wicomico County.
(d) “Food desert” means the part of a priority funding area or an eligible opportunity zone designated by the Secretary under § 6–308(c) of this subtitle.
(e) “Fund” means the Neighborhood Business Development Fund.
(f) “Microenterprise” means a business that qualifies as a microenterprise under § 6–302 of this subtitle.
(g) “Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.
(h) “Program” means the Neighborhood Business Development Program.
(i) (1) “Project” means a neighborhood business development project that receives financial assistance from the Fund.
(2) “Project” includes:
(i) a microenterprise project that receives financial assistance from the Fund; and
(ii) a food desert project that receives financial assistance from the Fund.
(j) “Small business” means a business that qualifies as a small business under § 6–302 of this subtitle.
(k) “Sustainable community” means the part of a priority funding area that:
(1) as determined by the Sustainable Growth Subcabinet, satisfies the requirements of § 6–205 of this title;
(2) has been designated as a BRAC Revitalization and Incentive Zone under Title 5, Subtitle 13 of the Economic Development Article; or
(3) has been designated a transit–oriented development under § 7–101 of the Transportation Article.
Md. Code, Housing and Community Development § 6-302
A business qualifies as a small business or a microenterprise if the number of its employees and the amount of its annual receipts do not exceed limits that the Department sets by regulation for a small business or a microenterprise.
Md. Code, Housing and Community Development § 6-303
(a) There is a Neighborhood Business Development Program.
(b) The purposes of the Program are:
(1) in priority funding areas or eligible opportunity zones, to:
(i) help develop, redevelop, or expand small businesses and microenterprises;
(ii) stimulate investment by the private sector;
(iii) invest in revitalization projects for small businesses and microenterprises; and
(iv) stimulate political subdivisions to participate in developing and expanding small businesses and microenterprises; and
(2) in food deserts or parts of priority funding areas or eligible opportunity zones that serve food deserts, to help create and retain small businesses and other food–related enterprises that provide fresh fruits, vegetables, and other healthy foods to residents in the food desert.
(c) The Program includes:
(1) the Business Development Program; and
(2) the Capital Access Program.
Md. Code, Housing and Community Development § 6-304
(a) There is a Business Development Program in the Neighborhood Business Development Program.
(b) The Business Development Program shall provide financial assistance to projects in priority funding areas or eligible opportunity zones.
Md. Code, Housing and Community Development § 6-305
(a) (1) A small business, nonprofit organization, or microenterprise may apply for financial assistance under the Business Development Program.
(2) The Department shall review each application.
(b) An applicant may qualify for financial assistance for a project in a priority funding area or an eligible opportunity zone if the application demonstrates that:
(1) the financial assistance from the Fund is the minimum amount necessary to make the project financially feasible;
(2) the project is ready to proceed when it receives financial assistance from the Business Development Program; and
(3) any food desert project includes a plan to seek out sources of Maryland–grown produce and Maryland produced foods.
(c) (1) The Department shall provide written notice to the political subdivision in which the proposed project is located.
(2) Except as provided in paragraph (3) of this subsection, the Department may not approve an application unless the political subdivision in which the proposed project is located approves the application by:
(i) resolution; or
(ii) letter, delivered to the Department by the political subdivision’s authorized designee, expressing support of the plan or project.
(3) If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.
(d) Financial assistance under the Business Development Program may be provided to a small business, nonprofit organization, or microenterprise as:
(1) a grant;
(2) a loan;
(3) a reduction in the principal obligation of or interest rate on a loan or portion of a loan;
(4) a prepayment of interest on a subordinate or superior loan or portion of a loan;
(5) an assurance;
(6) a guarantee;
(7) any other form of credit enhancement; or
(8) a promissory note that may be converted to an equity ownership interest and liquidated at the earliest opportunity to realize the highest market value for the Department.
(e) (1) The Department shall reserve at least the lesser of $5,000,000 or the annual capital appropriation for the Fund to make financial assistance available to projects located in sustainable communities.
(2) The Department may meet the funding obligations for sustainable communities and food deserts by using any financial assistance available to the Department that is authorized to be used for these projects.
Md. Code, Housing and Community Development § 6-307
(a) Financial assistance under the Business Development Program shall be on the terms that the Department considers necessary to make the project financially feasible.
(b) Financial assistance under the Business Development Program may be used for:
(1) a part of the development costs of a project;
(2) the development costs, working capital, or business expenses of a microenterprise project; or
(3) in accordance with § 6–308.3 of this subtitle, small loans for food desert projects.
(c) The Department may require that financial assistance under the Business Development Program be secured by a mortgage or other security instrument, which may be subordinate to other security interests.
(d) The Department may modify the interest rate, the time or amount of payment, or any other term of a grant or loan to facilitate the successful completion or operation of a project.
(e) The Department may contract for services related to the Business Development Program.
Md. Code, Housing and Community Development § 6-308
(a) The Department shall:
(1) administer the Business Development Program;
(2) adopt regulations to carry out the Business Development Program, including a process to designate an area as a food desert under subsection (c) of this section; and
(3) make a reasonable, good faith effort to make 25% of the Business Development Program loans and grants to microenterprises.
(b) The Department may:
(1) sell, assign, or otherwise dispose of a Program loan or revenue from a loan on terms and conditions acceptable to the Department, including selling loans at a discount, if the maximum sale proceeds in any fiscal year do not exceed limits that the Department sets by regulation;
(2) apply the proceeds received from a sale, assignment, or other disposition under item (1) of this subsection to the Fund;
(3) pledge a Program loan as security for any:
(i) business project loan, bond, or security that is issued, made, or purchased by the Community Development Administration under Title 4 of this article; or
(ii) insurance, guaranty, or credit enhancement on a Program loan or business project under § 4–223 of this article; and
(4) without approval or execution by the Board of Public Works, sell or assign any equity interest acquired under § 6–305(d) of this subtitle.
(c) The Secretary, on the recommendation of the Interagency Food Desert Advisory Committee established under § 6–308.2 of this subtitle, may designate an area as a food desert after considering the following factors:
(1) availability of fresh fruit, vegetables, and other healthy foods in the area;
(2) income levels of local residents;
(3) transportation needs of local residents and the availability of public transportation;
(4) comments from local governments; and
(5) any other factors that the Department considers relevant.
Md. Code, Housing and Community Development § 6-308.1
§6–308.1.
(a) If the Department determines that an entity is capable of administering financial assistance under the Program, the entity may originate and administer financial assistance in accordance with standards the Department adopts by regulation.
(b) (1) The Department shall adopt regulations to establish standards for determining the eligibility of an entity to administer financial assistance under the Program.
(2) The standards shall include provisions on:
(i) the size, training, and experience of the professional staff that would administer the financial assistance; and
(ii) the capability of the professional staff to:
1. determine financial capacity of a borrower;
2. originate financial assistance; and
3. evaluate applications for financial assistance.
(c) The Department may:
(1) help train employees of an approved entity to administer financial assistance in accordance with standards that the Department adopts;
(2) charge and collect from a borrower:
(i) reasonable origination, application, and processing fees; and
(ii) other charges, fees, or reimbursements incidental to the financial assistance;
(3) include the fees and charges listed in item (2) of this subsection in the amount of financial assistance;
(4) pay an approved entity a reasonable origination, application, and processing fee for the financial assistance that is originated by the approved entity;
(5) directly fund the financial assistance that is originated by an approved entity;
(6) provide financial assistance to an approved entity for the purpose of the approved entity making the financial assistance in accordance with this subtitle;
(7) purchase or commit to purchase from approved entities any form of financial assistance that meets the requirements of this subtitle and any regulations adopted under this subtitle; and
(8) enter into agreements with approved entities to collectively lend money on a project that meets the requirements of this subtitle and any regulations adopted under this subtitle.
Md. Code, Housing and Community Development § 6-308.2
§6–308.2.
(a) There is an Interagency Food Desert Advisory Committee.
(b) The Committee consists of the following seven members:
(1) the Secretary, or the Secretary’s designee;
(2) the Secretary of Agriculture, or the Secretary’s designee;
(3) the Secretary of Planning, or the Secretary’s designee;
(4) the Secretary of Health, or the Secretary’s designee;
(5) the Secretary of Human Services, or the Secretary’s designee;
(6) the Secretary of Commerce, or the Secretary’s designee; and
(7) the Secretary of Education, or the Secretary’s designee.
(c) The Secretary or the Secretary’s designee is the chair of the Committee.
(d) The Department shall provide staff for the Committee.
(e) The Committee shall:
(1) advise and make recommendations to the Department on the development and adoption of regulations related to food desert projects;
(2) make recommendations to the Secretary on applications for designating an area as a food desert; and
(3) make recommendations for interagency coordination to reduce the number of food deserts and promote healthy food access for Maryland neighborhoods.
Md. Code, Housing and Community Development § 6-308.3
§6–308.3.
(a) If the Department determines that an entity is capable of administering a food desert project, the entity may originate and administer financial assistance to a food desert project in accordance with standards the Department adopts by regulation.
(b) The Department may:
(1) pay an approved entity a reasonable origination, application, and processing fee for each food desert project that is originated by the approved entity;
(2) directly fund the financial assistance for a food desert project that is originated by an approved entity;
(3) provide financial assistance to an approved entity for the purpose of the approved entity providing financial assistance for a food desert project in accordance with this subtitle; and
(4) (i) provide small loans in amounts that are not more than $100,000 per loan to an approved entity for assistance in providing or maintaining access to healthy food in urban or rural food deserts, including by providing loans for:
1. refrigerators, freezers, and other equipment; and
2. subject to subsection (c) of this section, operating costs incurred in providing access to healthy food in urban or rural food deserts; and
(ii) work with intermediaries to administer the small loans authorized under item (i) of this paragraph.
(c) The Department shall forgive a loan for operating costs made under subsection (b)(4)(i)2 of this section after 5 years, if the loan recipient maintains continuous operations at the same location during that time.
Md. Code, Housing and Community Development § 6-308.4
§6–308.4.
(a) On or before December 1 of each year, the Department shall submit a report on the Program, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, the Senate Education, Health, and Environmental Affairs Committee, the House Appropriations Committee, and the House Environment and Transportation Committee.
(b) The report under subsection (a) of this section shall include:
(1) the names of approved entities awarded financial assistance for food desert projects;
(2) the type of activities in which the approved entities are engaged;
(3) the location of the approved entity’s operation;
(4) the amount of each grant award;
(5) the number of employees employed by the approved entity;
(6) the basis for approving the grant;
(7) an explanation of how the approved entity’s operation advances the policy goal of reducing food deserts; and
(8) if available, how long the grantee’s operation stayed in business following the awarding of the grant.
Md. Code, Housing and Community Development § 6-309
(a) There is a Capital Access Program in the Neighborhood Business Development Program.
(b) The purposes of the Capital Access Program are to:
(1) stimulate private sector lending to small businesses throughout the State; and
(2) encourage private lenders to provide for a reserve of money as additional security for private sector loans made under this section.
(c) The Department may enter into a Capital Access Program participation agreement with each lender eligible to participate in the Capital Access Program.
(d) To be eligible to participate in the Capital Access Program, a lender:
(1) shall be a federally insured financial institution, as defined in § 1-101 of the Financial Institutions Article, or another institution regulated by the Commissioner of Financial Regulation; and
(2) shall enter into a participation agreement with the Department that:
(i) requires the lender to agree to:
1. enroll in the Capital Access Program loans that the lender makes to an eligible small business;
2. establish a loan reserve account with a federally insured financial institution as additional security to cover losses of the lender on loans that the lender enrolls; and
3. contribute money to the loan reserve account for each loan that the lender enrolls; and
(ii) allows the lender to commingle in the reserve account contributions made for loans that the lender enrolls.
(e) To be eligible for a loan under the Capital Access Program, a borrower:
(1) shall be a small business that meets the eligibility requirements set out in the Capital Access Program participation agreement between the borrower’s lender and the Department; and
(2) shall agree with the lender to contribute money to the loan reserve account that the lender establishes.
(f) (1) The Department may use the Fund to contribute up to $1,000,000 per fiscal year to loan reserve accounts established under subsection (d) of this section.
(2) The contributions by the Department are exempt from the requirements of Title 6, Subtitle 2, and Titles 11 through 17, of the State Finance and Procurement Article.
(g) (1) Enrolling a loan in the Capital Access Program does not pledge the faith, credit, or taxing power of the State, the Department, the Neighborhood Business Development Program, or the Fund.
(2) The State, the Department, the Neighborhood Business Development Program, and the Fund are not liable for losses of a lender on an enrolled loan, except to the extent of the loan reserve account that the lender establishes under the Capital Access Program.
(h) A project financed by a loan enrolled in the Capital Access Program shall be in a priority funding area as required by Title 5, Subtitle 7B of the State Finance and Procurement Article.
(i) A lender shall treat a default on a loan enrolled in the Capital Access Program in the same way that the lender treats defaults on other loans.
(j) The Department may require that, before a lender withdraws money from a reserve account to cover losses on a defaulted enrolled loan, the lender agree that, if the reserve account fully covers the losses, the lender will assign to the Department or subrogate the Department to the right, title, and interest of the lender in and to:
(1) the loan;
(2) collateral and security for the loan; and
(3) every other right of recovery in connection with the loan.
(k) (1) After a default on a loan enrolled in the Capital Access Program, the Department may acquire, hold, improve, operate pending sale or other disposition, sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber property that secures or is collateral for all or part of the loan, including:
(i) real property;
(ii) personal property; and
(iii) evidence of indebtedness.
(2) The Department may act under this subsection:
(i) in its name or in the name of the Neighborhood Business Development Program; and
(ii) notwithstanding Titles 10 through 17 of the State Finance and Procurement Article.
(l) The Department shall adopt regulations to carry out the Capital Access Program.
Md. Code, Housing and Community Development § 6-310
(a) There is a Neighborhood Business Development Fund.
(b) The Department shall use the Fund to:
(1) operate and pay expenses of the Program; and
(2) provide financial assistance to small businesses, nonprofit organizations, and microenterprises.
(c) (1) The Department shall administer the Fund.
(2) The State Treasurer shall hold and the Comptroller shall account for the Fund.
(d) The Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(e) The Fund consists of:
(1) money appropriated in the State budget for the Program;
(2) any repayment or prepayment of financial assistance under this subtitle or under the State Action Loans for Targeted Areas Program under former Article 83B, Title 4, Subtitle 6, of the Code;
(3) money transferred to the Fund from any other fund as provided in this article;
(4) money received from the sale, assignment, or other disposition of Program loans and equity interests;
(5) other money received by the Program under this subtitle or from the Community Development Administration under Subtitle 2 of this title; and
(6) investment earnings of the Fund.
(f) The Fund shall be invested in the same way as other State money.
(g) With the approval of the Legislative Policy Committee and, subject to § 7–209 of the State Finance and Procurement Article, after the first 8 months of a fiscal year, the Department may transfer unencumbered money in the Fund to:
(1) any other fund established under this title;
(2) the Community Development Administration to provide financial assistance to business projects; and
(3) the Maryland Housing Fund under Title 3 of this article to provide insurance, credit enhancement, or a guaranty on:
(i) a Program loan; or
(ii) a business project loan, bond, or security that is issued, made, or purchased by the Community Development Administration under Title 4 of this article.
Md. Code, Housing and Community Development § 6-311
(a) (1) A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department by an agreement relating to financial assistance under the Program.
(2) An applicant for financial assistance under the Program may not knowingly make or cause to be made any false statement or report to influence the action of the Department on an application or to influence any action of the Department affecting financial assistance already provided.
(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.
Md. Code, Housing and Community Development § 6-401
(a) In this subtitle the following words have the meanings indicated.
(b) “Approved project” means a project that the Department approves under § 6–405 of this subtitle.
(c) “Business entity” means a person that conducts a trade or business in the State and is subject to:
(1) the State income tax on individuals or corporations;
(2) the public service company franchise tax; or
(3) the insurance premiums tax.
(d) “Individual” means an individual as defined under § 10–101 of the Tax – General Article.
(e) “Nonprofit organization” means a nonprofit corporation, foundation, or other legal entity that is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code.
(f) “Priority funding area” means a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.
(g) “Redevelopment assistance” means the money that nonprofit organizations spend for labor and materials used directly in the physical improvement of part or all of a priority funding area.
Md. Code, Housing and Community Development § 6-402
There is a Neighborhood and Community Assistance Program.
Md. Code, Housing and Community Development § 6-403
The purposes of the Neighborhood and Community Assistance Program are to:
(1) help nonprofit organizations to carry out approved projects in priority funding areas;
(2) encourage business entities and individuals to invest in priority funding areas; and
(3) strengthen partnerships between public and private entities.
Md. Code, Housing and Community Development § 6-404
(a) (1) For a contribution worth $500 or more in goods, money, or real property to an approved project, a business entity or an individual is entitled to a tax credit in the amount determined under subsection (b) of this section.
(2) No part of a tax credit under this section may be taken more than once.
(b) (1) Except as provided in paragraph (2) of this subsection, the credit allowed to a business entity or an individual under this section equals 50% of the amount of contributions:
(i) that the Department approves under subsection (c) of this section; and
(ii) that were made during the taxable year for which the credit is claimed.
(2) The credit allowed under this section for any taxable year may not exceed the lesser of:
(i) $250,000; and
(ii) the total amount of tax otherwise payable by the business entity or individual for the taxable year.
(3) Any excess credit that would be allowed but for the limits of paragraph (2) of this subsection may be carried over and applied as a credit for up to 5 taxable years after the taxable year in which the contribution was made, until the full amount of the excess is used.
(c) (1) To qualify for a credit for a contribution under this section, before making a contribution, a business entity or an individual shall apply for and receive approval of the contribution from the Department.
(2) Each application for approval of a contribution shall contain:
(i) the name of the approved project to which the contribution will be made;
(ii) the amount of the contribution; and
(iii) a certification by an independent and unrelated third party as to the value of any nonmonetary contribution included or, for new goods, an invoice or receipt certifying the contribution’s net cost to the business entity or individual.
(3) The Department may not approve an application if it determines that:
(i) the maximum amount of contributions eligible for a tax credit for the project for the fiscal year will be exceeded by the sum of:
1. the amount of the proposed contribution; and
2. the total amount of contributions previously approved for that project for the fiscal year; or
(ii) the applicant has overstated the value of a nonmonetary contribution.
(4) On or before January 31 of each year, the Department shall report to the Department of Assessments and Taxation, the Comptroller, and the Maryland Insurance Administration the contributions that the Department has approved under this section in the preceding calendar year.
Md. Code, Housing and Community Development § 6-405
(a) (1) For each fiscal year, a nonprofit organization may submit to the Department, for approval under the Neighborhood and Community Assistance Program, a proposal for a project to provide services to a priority funding area.
(2) The project may include:
(i) community services, including child care and recreational services;
(ii) redevelopment assistance;
(iii) job training for individuals whose incomes do not exceed the upper income limits that the Secretary sets under § 4–212 of this article;
(iv) education; and
(v) crime prevention.
(b) A proposal under this section shall include:
(1) the project to be conducted;
(2) the priority funding area that will benefit from the project;
(3) a description of the applicant’s experience and capabilities;
(4) the estimated costs of the project;
(5) a description of the plans for implementing the project; and
(6) any other information that the Department determines is necessary.
(c) (1) The Department shall provide written notice to the political subdivision in which the proposed project is located.
(2) Except as provided in paragraph (4) of this subsection, the Department may not approve a proposal submitted under this section unless the proposal is approved by the governing body or authorized designee of:
(i) each county that includes any of the priority funding area that benefits from the project, if the project is not in a municipal corporation;
(ii) each municipal corporation that includes any of the priority funding area that benefits from the project; or
(iii) each political subdivision that includes any of the priority funding area that benefits from the project, if the priority funding area is partly within and partly outside of any municipal corporation.
(3) An approval shall:
(i) be in writing; and
(ii) state the maximum amount of contributions to the approved project that are eligible for a tax credit under § 6–404 of this subtitle.
(4) If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.
(5) The sum of contributions eligible for a tax credit under § 6–404 of this subtitle for all approved projects for a fiscal year may not exceed $3,500,000.
(d) In approving or disapproving a proposal and in determining the maximum amount of contributions eligible for tax credits under § 6–404 of this subtitle, the Department:
(1) shall consider:
(i) the need for the project in relation to the need for other proposed projects;
(ii) the anticipated benefit to the priority funding area;
(iii) the capacity of the applicant to raise money for the project;
(iv) the readiness of the applicant to proceed with the project;
(v) the ability of the applicant to complete the project as proposed;
(vi) the geographic distribution of projects; and
(vii) any other relevant factors;
(2) may give preference to a proposal that benefits:
(i) a sustainable community under § 6–305 of this title; or
(ii) a neighborhood conservation district that is locally designated in coordination with the Department’s Neighborhood and Community Assistance Program;
(3) may request data and assistance from other units of the State; and
(4) shall apportion among all approved projects the limit imposed by subsection (c)(5) of this section.
Md. Code, Housing and Community Development § 6-406
The Department shall adopt regulations to carry out this subtitle.
Md. Code, Housing and Community Development § 6-501
(a) In this subtitle the following words have the meanings indicated.
(b) “Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.
(c) “Community development organization” means an entity that meets the requirements set forth under § 6–504(a) of this subtitle.
(d) (1) “Financial assistance” means a grant, a loan, or an investment provided under this subtitle.
(2) “Financial assistance” includes:
(i) an assurance;
(ii) a guarantee;
(iii) a prepayment of interest on a subordinate or superior loan or portion of a loan;
(iv) a reduction in the principal obligation of or rate of interest payable on a loan or a portion of a loan; and
(v) any other form of credit enhancement.
(e) “Program” means the Baltimore Regional Neighborhood Initiative Program.
(f) “Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.
Md. Code, Housing and Community Development § 6-502
(a) There is a Baltimore Regional Neighborhood Initiative Program.
(b) The Department shall administer the Program.
(c) The purpose of the Program is to:
(1) provide strategic investment in local housing and businesses to encourage healthy, sustainable communities with a growing tax base and enhanced quality of life; and
(2) focus on areas where modest investment and coordinated strategies will have an appreciable neighborhood revitalization impact.
Md. Code, Housing and Community Development § 6-503
(a) The community enhancement projects eligible to receive Program funds include:
(1) down payment assistance for homebuyers to purchase and rehabilitate homes;
(2) programs to acquire or rehabilitate vacant or blighted properties;
(3) programs to improve existing residential and business properties;
(4) programs to achieve energy efficiency through weatherization and energy retrofits;
(5) development of mixed–use projects that combine housing, retail, and office space;
(6) development or enhancement of community open space or public infrastructure;
(7) workforce and employment development programs; and
(8) strategic demolition.
(b) Program funds may be used for operating costs necessary to implement a community enhancement project.
(c) The Secretary may establish additional community enhancement projects eligible to receive Program funds.
Md. Code, Housing and Community Development § 6-504
(a) A corporation, a foundation, or any other legal entity is a community development organization eligible to apply for Program funds if:
(1) the purpose of the organization is to implement a clear revitalization strategy in a neighborhood or set of neighborhoods within Baltimore City or the inner–beltway communities of Baltimore County or Anne Arundel County; and
(2) no part of the organization’s net earnings inures to the benefit of a private shareholder or an individual holding an interest in the entity.
(b) The community development organization’s application must contain a neighborhood revitalization plan that includes community enhancement projects located within a sustainable community.
(c) A community development organization may apply with another community development organization or with a community development financial institution that has the capacity and experience to assist in the financing of real estate projects within the community.
(d) The community enhancement projects for which a community development organization applies for Program funds may be located in more than one political subdivision.
Md. Code, Housing and Community Development § 6-505
(a) (1) A community development organization may apply to the Department to receive Program funds for community enhancement projects.
(2) The Department shall establish the application process.
(3) The application shall contain:
(i) the neighborhood revitalization plan;
(ii) a description of each community enhancement project;
(iii) organizational documents for the community development organization; and
(iv) any other information the Department requires.
(b) (1) The Department, by regulation, shall establish a quantitative system to evaluate each application.
(2) The quantitative evaluation system shall evaluate each application based on:
(i) the neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan;
(ii) the description of the community conditions and the appropriateness of outlined strategies to address those conditions;
(iii) the ability of each proposed community enhancement project to address identified challenges within the community; and
(iv) the capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing.
(c) The Department may give additional consideration to applications that include:
(1) opportunities that promote compact redevelopment and connect housing and job opportunities with transportation options;
(2) activities in specially designated districts that encourage residential reinvestment that reinforces the success of the businesses in the districts;
(3) community enhancement projects that encourage or incorporate elements that address environmental responsibility and stewardship into the site and project development, design, and construction;
(4) community enhancement projects that incorporate additional State and local revitalization and smart growth programs and financing tools;
(5) capital investments and business practices that incorporate inclusionary hiring practices that increase local workforce opportunities; and
(6) projects whose purpose is to identify for acquisition, acquire, develop, or promote the development of vacant or blighted properties.
Md. Code, Housing and Community Development § 6-506
(a) The Department shall:
(1) review each application submitted under § 6–505 of this subtitle and may request additional information from the applicant;
(2) accept public input on each application; and
(3) consider the recommendation of any State unit.
(b) (1) The Department may not approve an application until the Department has provided written notice and a reasonable opportunity to comment to the political subdivision where the proposed community enhancement project is located.
(2) If the application affects a neighborhood entirely within a municipal corporation, the Department must provide notice and a reasonable opportunity to comment to the municipal corporation and not the surrounding county.
(3) If an application affects a neighborhood within more than one political subdivision, the Department must provide notice and a reasonable opportunity to comment to each political subdivision.
(c) The Secretary shall award financial assistance to an applicant:
(1) in the amount and of the type that the Secretary determines; and
(2) under the terms of a Program agreement.
Md. Code, Housing and Community Development § 6-507
(a) The Department and a recipient of financial assistance from the Program shall execute a Program agreement.
(b) The recipient of financial assistance from the Program shall comply with the terms of the Program agreement.
(c) The Program agreement may not allow for more than 40% of the total financial assistance that the Program provides to be used for operating expenditures.
(d) The Department may exercise any remedy provided under the Program agreement or by law if the recipient of financial assistance from the Program:
(1) violates any provision of the agreement; or
(2) ceases to meet any requirement of this subtitle.
Md. Code, Housing and Community Development § 6-508
(a) The Department has the powers necessary to implement the Program.
(b) (1) The Department may determine the terms and conditions or establish time limits for the use of financial assistance awarded under this subtitle.
(2) The financial assistance awarded under this subtitle may be secured by a mortgage, a lien, or any other security interest that is superior to or subordinate to other mortgages, liens, or other security interests.
(c) (1) The Department may enforce the terms and conditions of the financial assistance awarded under this subtitle.
(2) If any financial assistance awarded under this subtitle is secured by a first or subordinate mortgage or other lien, the Department may:
(i) begin an action to protect or enforce any right given by law, contract, or other agreement;
(ii) foreclose on property;
(iii) purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;
(iv) settle or compromise any debt or obligation owed to the Department;
(v) pay the principal of and interest on any obligation incurred in connection with the property and dispose of or otherwise deal with the property to protect the interests of the Program; or
(vi) release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.
(d) (1) The Department may contract with any person or governmental unit for property or services necessary to operate the Program.
(2) The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid.
(e) In connection with any loans that the Department makes, the Department may:
(1) require and obtain appraisals, credit information, and other pertinent information; and
(2) charge interest.
(f) The Department may consent to the modification of any provision of a Program agreement if the modification is in the best interest of the Program.
Md. Code, Housing and Community Development § 6-509
(a) The recipient of financial assistance from the Program shall submit to the Department quarterly progress reports on the development of a community enhancement project.
(b) (1) On or before October 31 each year, the Department shall submit a report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly.
(2) The report shall include, for the previous fiscal year:
(i) the number of applications received;
(ii) the number and location of community enhancement projects;
(iii) the financial status of the Program, including the amount and types of financial assistance encumbered and disbursed; and
(iv) a summary of the quarterly reports submitted under subsection (a) of this section.
Md. Code, Housing and Community Development § 6-510
(a) In this section, “Fund” means the Baltimore Regional Neighborhood Initiative Program Fund.
(b) There is a Baltimore Regional Neighborhood Initiative Program Fund.
(c) The purpose of the Fund is to provide financial assistance under the Program.
(d) The Secretary shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) earnings from the investment of money in the Fund;
(3) repayments of financial assistance provided by the Program;
(4) interest earnings of the Fund; and
(5) any other money from any other source accepted for the benefit of the Fund.
(g) The Fund may be used only for providing financial assistance under the Program.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State budget.
(j) (1) For fiscal year 2019, the Governor shall include in the budget bill or the capital budget bill an appropriation to the Fund in the amount of $8,000,000.
(2) For fiscal year 2020 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation for the Fund in the amount of $12,000,000.
Md. Code, Housing and Community Development § 6-601
(a) In this subtitle the following words have the meanings indicated.
(b) “Board” means the Community Development Board.
(c) “Fund” means the Community Development Fund.
(d) “Program” means the Community Development Program.
Md. Code, Housing and Community Development § 6-602
(a) There is a Community Development Program in the Department.
(b) The purpose of the Program is to provide financial assistance for community development projects and community development organizations around the State.
Md. Code, Housing and Community Development § 6-603
The Department shall:
(1) administer the Program; and
(2) adopt regulations to carry out the Program.
Md. Code, Housing and Community Development § 6-604
(a) There is a Community Development Board in the Program.
(b) The Board consists of the following members:
(1) the Secretary, or the Secretary’s designee; and
(2) the following members, appointed by the Governor, in consultation with the President of the Senate and the Speaker of the House:
(i) one representative of the Community Development Network of Maryland;
(ii) one representative of the small business community;
(iii) one representative of the nonprofit development community;
(iv) one representative of the for–profit development community;
(v) one representative involved with rural community development;
(vi) one representative involved with suburban community development; and
(vii) one representative involved with urban community development.
(c) The Secretary shall designate the chair of the Board.
(d) (1) The term of a member may not exceed 3 years.
(2) A member may be reappointed.
(e) Service as a member is not a State office or State employment for purposes of any prohibition against holding two public positions.
Md. Code, Housing and Community Development § 6-605
The Board shall:
(1) make recommendations on how the Fund is to be used;
(2) provide a period of at least 30 days for public comment on the recommendations; and
(3) report on or before December 31 each year on the activities of the Fund and make any recommendations regarding the Fund to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.
Md. Code, Housing and Community Development § 6-606
(a) There is a Community Development Fund.
(b) The purpose of the Fund is to provide financial assistance for community development projects and community development organizations around the State.
(c) The Department shall administer the Fund with the assistance of the Board.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e) The Fund consists of:
(1) money appropriated in the State budget to the Fund; and
(2) any other money from any other source accepted for the benefit of the Fund.
(f) The Fund may be used only for:
(1) administrative expenses of the Department in administering the Program; and
(2) financial assistance for community development projects and community development organizations as provided under § 6–607 of this subtitle.
(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the General Fund of the State.
(h) Expenditures from the Fund may be made only in accordance with the State budget.
(i) Money expended from the Fund for the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program.
Md. Code, Housing and Community Development § 6-607
In consultation with the Board, the Department shall administer the Fund to provide financial assistance, including capital and operating grants, to community development projects and community development organizations to provide and support:
(1) affordable housing;
(2) neighborhood revitalization for residential and commercial areas;
(3) housing counseling, financial counseling, and foreclosure prevention;
(4) community organizing;
(5) small business development;
(6) community services; and
(7) any other community development purpose.
Md. Code, Housing and Community Development § 6-608
The Department shall provide financial assistance from the Fund in the form and manner the Department determines appropriate, including providing capital and operating grants.
Md. Code, Housing and Community Development § 6-609
This subtitle is the Community Development Program Act.
Md. Code, Housing and Community Development § 6-701
(a) In this subtitle the following words have the meanings indicated.
(b) “Community development financial institution” has the meaning stated in 12 U.S.C. § 4702.
(c) “Community development organization” means an entity that meets the requirements under § 6–704 of this subtitle.
(d) (1) “Financial assistance” means a grant, a loan, or an investment provided under this subtitle.
(2) “Financial assistance” includes:
(i) an assurance;
(ii) a guarantee;
(iii) a prepayment of interest on a subordinate or superior loan or portion of a loan;
(iv) a reduction in the principal obligation of or rate of interest payable on a loan or a portion of a loan; and
(v) any other form of credit enhancement.
(e) “National capital region” means the areas of the State located within a sustainable community in Montgomery County or Prince George’s County.
(f) “Program” means the National Capital Strategic Economic Development Program.
(g) “Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.
Md. Code, Housing and Community Development § 6-702
(a) There is a National Capital Strategic Economic Development Program.
(b) The Department shall administer the Program.
(c) The purpose of the Program is to:
(1) provide strategic investment in local housing and businesses to encourage healthy, sustainable communities with a growing tax base and enhanced quality of life; and
(2) focus on areas where modest investment and coordinated strategies will have an appreciable neighborhood revitalization impact.
Md. Code, Housing and Community Development § 6-703
(a) The community enhancement projects eligible to receive Program funds include:
(1) down payment assistance for homebuyers to purchase and rehabilitate homes;
(2) programs to acquire or rehabilitate vacant or blighted properties;
(3) programs to improve existing residential and business properties;
(4) programs to achieve energy efficiency through weatherization and energy retrofits;
(5) development of affordable housing;
(6) development of mixed–use projects that combine housing, retail, and office space;
(7) development or enhancement of community open space or public infrastructure;
(8) workforce and employment development programs, when associated with other projects listed under this subsection;
(9) career and technical education and apprenticeship programs, when associated with other projects listed under this subsection; and
(10) strategic demolition.
(b) Program funds may be used for operating costs necessary to implement a community enhancement project.
(c) The Secretary may establish additional community enhancement projects eligible to receive Program funds.
Md. Code, Housing and Community Development § 6-704
(a) (1) A government agency, including a housing authority, with jurisdiction in the national capital region, an entity controlled directly or indirectly by a housing authority that operates in the national capital region, and, subject to paragraph (2) of this subsection, a community development organization are eligible to apply for program funds.
(2) A corporation, a foundation, or any other legal entity is a community development organization eligible to apply for Program funds if:
(i) the purpose of the organization is to implement a clear revitalization strategy in a neighborhood or set of neighborhoods within the national capital region; and
(ii) no part of the organization’s net earnings inures to the benefit of a private shareholder or an individual holding an interest in the entity.
(b) The eligible institution’s application must contain a neighborhood revitalization plan that includes community enhancement projects located within a sustainable community.
(c) An eligible institution may apply with another eligible institution or with a community development financial institution that has the capacity and experience to assist in the financing of real estate projects within the community.
(d) The community enhancement projects for which an eligible institution applies for Program funds may be located in more than one political subdivision.
Md. Code, Housing and Community Development § 6-705
(a) (1) A government agency, including a housing authority, with jurisdiction in the national capital region, an entity controlled directly or indirectly by a housing authority that operates in the national capital region, and a community development organization may apply to the Department to receive Program funds for community enhancement projects.
(2) The Department shall establish the application process.
(3) The application shall contain:
(i) the neighborhood revitalization plan;
(ii) a description of each community enhancement project;
(iii) organizational documents for the community development organization; and
(iv) any other information the Department requires.
(b) (1) The Department, by regulation, shall establish a quantitative system to evaluate each application.
(2) The quantitative evaluation system shall evaluate each application based on:
(i) the neighborhood revitalization plan and how the plan relates to the goals outlined in the community’s larger sustainable communities plan;
(ii) the description of the community conditions and the appropriateness of outlined strategies to address those conditions;
(iii) the ability of each proposed community enhancement project to address identified challenges within the community; and
(iv) the capacity and experience of the applicant and the applicant’s partners to complete the proposals and leverage additional financing.
(c) The Department may give additional consideration to applications that include:
(1) opportunities that promote compact redevelopment and connect housing and job opportunities with transportation options;
(2) activities in specially designated districts that encourage residential reinvestment that reinforces the success of the businesses in the districts;
(3) community enhancement projects that encourage or incorporate elements that address environmental responsibility and stewardship into the site and project development, design, and construction;
(4) community enhancement projects that incorporate additional State and local revitalization and smart growth programs and financing tools;
(5) capital investments and business practices that incorporate inclusionary hiring practices that increase local workforce opportunities; and
(6) projects whose purpose is to identify for acquisition, acquire, develop, or promote the development of vacant or blighted properties.
Md. Code, Housing and Community Development § 6-706
(a) The Department shall:
(1) review each application submitted under § 6–705 of this subtitle and may request additional information from the applicant;
(2) accept public input on each application; and
(3) consider the recommendation of any State unit.
(b) (1) The Department may not approve an application until the Department has provided written notice and a reasonable opportunity to comment to the political subdivision where the proposed community enhancement project is located.
(2) If the application affects a neighborhood entirely within a municipal corporation, the Department must provide notice and a reasonable opportunity to comment to the municipal corporation and not the surrounding county.
(3) If an application affects a neighborhood within more than one political subdivision, the Department must provide notice and a reasonable opportunity to comment to each political subdivision.
(c) The Secretary shall, subject to subsection (b) of this section, award financial assistance to an applicant:
(1) in the amount and of the type that the Secretary determines; and
(2) under the terms of a Program agreement.
Md. Code, Housing and Community Development § 6-707
(a) The Department and a recipient of financial assistance from the Program shall execute a Program agreement.
(b) The recipient of financial assistance from the Program shall comply with the terms of the Program agreement.
(c) The Program agreement may not allow for more than 40% of the total financial assistance that the Program provides to be used for operating expenditures.
(d) The Department may exercise any remedy provided under the Program agreement or by law if the recipient of financial assistance from the Program:
(1) violates any provision of the agreement; or
(2) ceases to meet any requirement of this subtitle.
Md. Code, Housing and Community Development § 6-708
(a) The Department has the powers necessary to implement the Program.
(b) (1) The Department may determine the terms and conditions for or establish time limits for the use of financial assistance awarded under this subtitle.
(2) The financial assistance awarded under this subtitle may be secured by a mortgage, a lien, or any other security interest that is superior to or subordinate to other mortgages, liens, or other security interests.
(c) (1) The Department may, subject to any limits imposed by law, enforce the terms and conditions of the financial assistance awarded under this subtitle.
(2) If any financial assistance awarded under this subtitle is secured by a first or subordinate mortgage or other lien, the Department may, subject to any limits imposed by law:
(i) begin an action to protect or enforce any right given by law, contract, or other agreement;
(ii) foreclose on property;
(iii) purchase property at any foreclosure or other sale, or acquire or take possession of the property through conveyance in lieu of foreclosure or otherwise, and convey property after acquiring it;
(iv) settle or compromise any debt or obligation owed to the Department;
(v) pay the principal of and interest on any obligation incurred in connection with the property and dispose of or otherwise deal with the property to protect the interests of the Program; or
(vi) release or sell any mortgage, obligation, or property that the Department holds at public or private sale, with or without public bidding.
(d) (1) The Department may contract with any person or governmental unit for property or services necessary to operate the Program.
(2) The Department may contract for and accept any grant, contribution, or loan of money, property, or other aid from the federal government and may do all things consistent with this subtitle to qualify for the aid.
(e) In connection with any loans that the Department makes, the Department may:
(1) require and obtain appraisals, credit information, and other pertinent information; and
(2) charge interest.
(f) The Department may consent to the modification of any provision of a Program agreement if the modification is in the best interest of the Program.
Md. Code, Housing and Community Development § 6-709
(a) The recipient of financial assistance from the Program shall submit to the Department quarterly progress reports on the development of a community enhancement project.
(b) (1) On or before October 31 each year, the Department shall submit a report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly.
(2) The report shall include, for the previous fiscal year:
(i) the number of applications received;
(ii) the number and location of community enhancement projects;
(iii) the financial status of the Program, including the amount and types of financial assistance encumbered and disbursed; and
(iv) a summary of the quarterly reports submitted under subsection (a) of this section.
Md. Code, Housing and Community Development § 6-710
(a) In this section, “Fund” means the National Capital Strategic Economic Development Fund.
(b) There is a National Capital Strategic Economic Development Fund.
(c) The purpose of the Fund is to provide financial assistance under the Program.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) interest earnings of the Fund; and
(3) any other money from any other source accepted for the benefit of the Fund.
(g) Subject to subsection (k) of this section, the Fund may be used only for providing financial assistance under the Program.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State budget.
(j) (1) For fiscal year 2021 and each fiscal year thereafter, the Governor shall include in the annual operating budget an appropriation for the Fund in the amount of $200,000.
(2) For fiscal years 2021 through 2024, the Governor shall include in the annual operating or capital budget an appropriation for the Fund in the amount of $7,000,000.
(3) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual operating or capital budget an appropriation for the Fund in the amount of $12,000,000.
(k) The Fund may be used only for community enhancement projects in sustainable communities located:
(1) in Prince George’s County, at least in part, within the boundary created by Interstate 495 in the State and the District of Columbia; or
(2) in Montgomery County, within an enterprise zone or the boundary created by:
(i) Prince George’s County;
(ii) Maryland Route 200;
(iii) Interstate 270;
(iv) Interstate 495 to the Maryland state line; and
(v) the District of Columbia.
Md. Code, Housing and Community Development § 6-901
In this subtitle, “catalytic revitalization project” means the substantial rehabilitation of a property in the State:
(1) that was formerly owned by the State or the federal government;
(2) the rehabilitation of which will foster economic, housing, and community development within the community in which the property is located; and
(3) that is out of service and was formerly used as a college or university, K–12 school, hospital, mental health facility, or military facility or installation.
Md. Code, Housing and Community Development § 6-902
(a) An individual, a nonprofit organization, or a business entity may claim a tax credit in an amount equal to:
(1) for a project issued a single tax credit certificate on completion, 20% of the amount stated in the final tax credit certificate issued by the Secretary under § 6–903 of this subtitle for 5 consecutive taxable years beginning with the taxable year in which a final tax credit certificate is issued; or
(2) for a phased project issued a tax credit certificate on completion of a phase, 100% of the amount stated in the final tax credit certificate issued by the Secretary under § 6–903 of this subtitle for the taxable year in which the final tax credit certificate is issued.
(b) The Comptroller or the Secretary may not recapture a tax credit authorized under this subtitle if:
(1) the catalytic revitalization project is transferred, in whole or in part, by fee simple transfer of real property or by transfer of an ownership interest in the entity that owns the project to a new owner; and
(2) the Secretary has issued a final tax credit certificate for the catalytic revitalization project under § 6–903 of this subtitle.
(c) The Secretary may issue multiple final tax credit certificates for a project that is issued an initial tax certificate under this section if:
(1) the project has been determined by the Secretary to be in phases;
(2) a phase of the project has been completed;
(3) a final tax credit certificate is not issued for more than 20% of the project’s eligible expenses to date; and
(4) a final tax credit certificate is not issued that would exceed the aggregated limit of a project’s credit under § 6–903(b) of this subtitle.
Md. Code, Housing and Community Development § 6-903
(a) (1) Subject to the limitations of paragraph (2) of this subsection and subsection (b) of this section, on application by an individual, a nonprofit organization, or a business entity, the Secretary shall issue:
(i) an initial tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s estimated new construction costs and rehabilitation costs for the project; and
(ii) on completion of the catalytic revitalization project or a phase of the catalytic revitalization project, a final tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s actual new construction costs and rehabilitation costs for the project.
(2) For purposes of calculating the credit authorized under paragraph (1) of this subsection, new construction costs:
(i) must be related to the construction of new structures that connect, expand, or integrate the existing structures to be rehabilitated; and
(ii) may not exceed 50% of the total costs of the catalytic revitalization project.
(b) (1) Except as provided in paragraph (2)(ii) of this subsection, the Secretary may not:
(i) accept applications and award initial credit certificates for catalytic revitalization projects more than once within a 2–year period; or
(ii) issue tax credit certificates for credit amounts in the aggregate totaling more than $15,000,000 within a 2–year period.
(2) (i) The Secretary may revoke an initial credit certificate on a finding by the Secretary that the recipient is not in compliance with the initial credit certificate or an agreement with the Department regarding the initial credit certificate.
(ii) If the Secretary revokes an initial credit certificate under subparagraph (i) of this paragraph, the Secretary may award an initial credit certificate to another applicant, provided that the award does not exceed the amount of the revoked initial credit certificate.
(c) If the tax credit allowed under this subtitle in any taxable year exceeds the total tax otherwise payable by the individual, nonprofit organization, or business entity for that taxable year, the individual, nonprofit organization, or business entity may claim a refund in the amount of the excess.
(d) The credit allowed under this subtitle may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing.
(e) (1) The original recipient of an initial tax credit issued in accordance with this section may transfer the initial tax credit certificate to one or more other individuals, nonprofit organizations, or business entities.
(2) The transfer of an initial tax credit certificate under paragraph (1) of this subsection need not involve a transfer of the catalytic revitalization project, whether by fee simple transfer of real property or a transfer of a portion or all of the ownership interest that the original recipient holds in the entity that owns the real property to a new owner or owners.
(3) An initial tax credit certificate issued in accordance with this section may not:
(i) be transferred to another person without the express written consent of the original recipient; or
(ii) be transferred as part of the involuntary transfer of the real property ownership interest in an entity that owns the real property without the prior written consent of the original recipient of the certificate and the Secretary.
(f) (1) The amount of the tax credit stated in the final tax credit certificate that is allowed, but not claimed, under this subtitle may be transferred, by written instrument, in whole or in part, to any individual, nonprofit organization, or business entity.
(2) For the taxable year of any transfer under this subsection, the transferee under paragraph (1) of this subsection may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year.
(3) If the tax credit exceeds the total tax otherwise payable by the transferee in any taxable year, the transferee:
(i) may claim a refund in the amount of the excess;
(ii) may carry forward and apply the excess credit for succeeding taxable years until the full amount of the credit is used; or
(iii) may transfer the remainder of the tax credit to an individual, a nonprofit organization, or a business entity in accordance with paragraph (1) of this subsection.
Md. Code, Housing and Community Development § 6-904
The Secretary, in consultation with the Department of Commerce, shall adopt regulations to carry out the provisions of this subtitle, including regulations that:
(1) establish procedures and standards for certifying new construction costs and rehabilitation costs under this subtitle;
(2) establish an application process for the issuance of tax credit certificates under this subtitle, with an emphasis on applications that promote affordable housing; and
(3) establish procedures for the approval of project phases for tax credit certificates issued under this subtitle.
Md. Code, Housing and Community Development § 6-905
(a) Subject to subsection (b) of this section, this subtitle and the credit authorized under it shall terminate January 1, 2031.
(b) After the termination of this subtitle:
(1) the Secretary may not issue any additional tax credit certificates under § 6–903 of this subtitle; and
(2) tax credit certificates issued may be claimed, refunded, carried forward, or transferred in accordance with §§ 6–902 and 6–903 of this subtitle.
Md. Code, Housing and Community Development § 6-1101
(a) In this subtitle the following words have the meanings indicated.
(b) “Community development organization” means an entity that meets the qualifications of § 6–203 of this title.
(c) “Program” means the Business Facade Improvement Program.
(d) “Qualified business” means a business that:
(1) is located in a sustainable community; and
(2) plans to improve the outside appearance of the business’s building or facility.
(e) “Sustainable community” means an area designated as a sustainable community under § 6–205 of this title.
Md. Code, Housing and Community Development § 6-1102
(a) There is a Business Facade Improvement Program in the Department.
(b) The purpose of the Program is to assist qualified businesses with improving the outside appearance of the businesses’ buildings and facilities.
(c) (1) The Department shall distribute funds from the Program to:
(i) political subdivisions that:
1. have at least one sustainable community; and
2. apply for the funds; and
(ii) community development organizations that:
1. serve at least one sustainable community; and
2. apply for the funds.
(2) The Department shall develop:
(i) an application process for applicants seeking to participate in the Program; and
(ii) criteria for:
1. rating political subdivisions and community development organizations that apply for funds; and
2. awarding funds to political subdivisions and community development organizations.
(d) (1) Each applicant that receives funds under subsection (c) of this section shall distribute grants to qualified businesses that apply for a grant.
(2) Each political subdivision and community development organization shall develop:
(i) a grant application process for qualified businesses seeking to participate in the Program; and
(ii) criteria for:
1. rating qualified businesses that apply for grants; and
2. awarding grants to qualified businesses.
(e) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill or the capital budget bill an appropriation of $5,000,000 to the Program.
Md. Code, Housing and Community Development § 6-1103
The Department may adopt regulations to carry out this subtitle.
Md. Code, Housing and Community Development § 6-1201
(a) In this subtitle the following words have the meanings indicated.
(b) “Just Community” means the part of a priority funding area that, as determined by the Governor, satisfies the requirements of § 6–1203 of this subtitle.
(c) “Priority funding area” means an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article.
Md. Code, Housing and Community Development § 6-1202
(a) The General Assembly finds that the State must have Just Communities in order to:
(1) affirmatively advance equity, civil rights, racial justice, and equal opportunity in the State;
(2) create opportunities for the improvement of communities that have been historically underserved, with anticipated benefits for the entire State; and
(3) right the wrongs of the past, when the State systematically excluded certain groups from equal participation in the benefits of public resources.
(b) It is the intent of the General Assembly that the Just Community designation be used to prioritize State funding to increase racial, economic, and health equity in the State.
Md. Code, Housing and Community Development § 6-1203
(a) The Governor, on the recommendation of the Secretary, may designate an area as a Just Community if the Secretary demonstrates that:
(1) past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment show a need for reinvestment in the area; and
(2) the area has been negatively impacted by a history of:
(i) forms of legal racial segregation including redlining, exclusionary zoning, or racially restrictive covenants;
(ii) the demolition of residential neighborhoods through the use of eminent domain or State or federal funding;
(iii) a State imprisonment rate higher than 750 per 100,000 persons; or
(iv) unequal exposure to environmental and health hazards, including:
1. proximity to a federal Superfund site;
2. estimated exposure to lead–based paint; and
3. rates of asthma among adults that are higher than the 90th percentile for the State.
(b) To maintain a Just Community designation, every 5 years the Secretary shall make designation recommendations for approval by the Governor in accordance with subsection (a) of this section.
(c) At the time Just Communities are designated or renewed, the Governor shall identify State programs under which a Just Community shall receive priority for State funding.
(d) The prioritization of State funding for Just Communities under subsection (c) of this section shall not supersede other program requirements specified in State law.
Md. Code, Housing and Community Development § 6-1301
(a) In this subtitle the following words have the meanings indicated.
(b) “Eligible project” means:
(1) a facility and community improvement project as defined in § 6–1304 of this subtitle;
(2) a business district and neighborhood security project as defined in § 6–1305 of this subtitle; or
(3) a community–centered crime and violence intervention and prevention project as defined in § 6–1306 of this subtitle.
(c) “Program” means the Community Health and Safety Works Grant Program.
Md. Code, Housing and Community Development § 6-1302
(a) There is a Community Health and Safety Works Grant Program in the Department.
(b) The purpose of the Program is to provide financial assistance in the form of grants for eligible projects that improve the quality of life within and economic potential of Maryland communities by making targeted investments in crime prevention strategies to address environmental, health, or safety concerns in commercial, public, or residential areas.
Md. Code, Housing and Community Development § 6-1303
The Department shall:
(1) administer the Program; and
(2) adopt regulations to carry out the Program.
Md. Code, Housing and Community Development § 6-1304
(a) (1) In this section the following words have the meanings indicated.
(2) “Eligible applicant” means a tax–exempt nonprofit organization.
(3) (i) “Facility and community improvement project” means a physical project or a community service that:
1. makes a facility or a community–managed open space safer for residents and visitors;
2. encourages the authorized uses of a facility or a community–managed open space by individuals; or
3. supports community–led efforts to improve the appearance of a facility or a community–managed open space.
(ii) “Facility and community improvement project” includes:
1. the purchase or installation of:
A. equipment that increases the visibility of vulnerable spaces, including surveillance tools or adequate lighting for exterior doors, common areas, or hallways; or
B. landscape architectural design features, including signs, gardens, paving treatments, plantings, or other upgrades to public spaces;
2. efforts to:
A. improve sight lines within, increase visitation to, or clean public spaces; or
B. integrate landscape architectural design features into a facility or a community–managed open space in a manner that connects adjacent neighborhoods for various users while distancing the users from private areas;
3. timely removal of graffiti and use of graffiti resistance practices in collaboration with a person who specializes in the area of graffiti removal services to present a vibrant, maintained space; and
4. contracted land enhancement or groundskeeping services to maintain or clean open spaces and functional surfaces.
(b) An eligible applicant may apply for a grant under the Program for a facility and community improvement project.
(c) If an eligible applicant submits an application for a grant under the Program for a facility and community improvement project to purchase or install a network of cameras or license readers, the eligible applicant shall include with the application:
(1) a monitoring plan;
(2) evidence of a partnership with law enforcement, the governmental unit responsible for traffic enforcement for the political subdivision, and any other relevant public agencies; and
(3) a list of possible locations of cameras and license readers and a plan for providing notice of locations to property owners.
(d) The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a facility and community improvement project a grant that:
(1) is at least $25,000; and
(2) does not exceed $50,000.
Md. Code, Housing and Community Development § 6-1305
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Business district and neighborhood security project” means a comprehensive plan for enhancing the visual perception of safety along commercial corridors and adjacent areas.
(ii) “Business district and neighborhood security project” includes:
1. the purchase or installation of:
A. equipment that increases the visibility of vulnerable spaces, including surveillance tools, adequate lighting for exterior doors, common areas, or hallways, or pedestrian–scale street lighting in high–pedestrian–traffic areas;
B. vehicle or pedestrian control devices;
C. equipment to lock or conceal dumpsters from public access; or
D. signs, gardens, litter removal equipment, plantings, or other upgrades to public spaces;
2. efforts to:
A. take into account the needs of neighborhoods in the surrounding area to improve accessibility for all users, in compliance with Americans with Disabilities Act standards; or
B. increase citizen and merchant stewardship through organizing, education, and outreach activities that seek to engage residents and other community stakeholders to actively participate in the upkeep and improvement of residential areas and public spaces;
3. contracted cleaning or landscaping services to maintain or clean improved open spaces;
4. contracted local private security services or similar community–based programs with a specific emphasis on de–escalation and relationship building; and
5. other efforts consistent with subparagraph (i) of this paragraph.
(3) “Eligible applicant” means:
(i) a tax–exempt nonprofit organization;
(ii) a governmental unit for a political subdivision; or
(iii) an institution of higher education in collaboration with a local neighborhood association.
(b) An eligible applicant may apply for a grant under the Program for a business district and neighborhood security project.
(c) If an eligible applicant submits an application for a grant under the Program for a business district and neighborhood security project to purchase or install a network of cameras or license readers, the eligible applicant shall include with the application:
(1) a monitoring plan; and
(2) evidence of a partnership with law enforcement, the governmental unit responsible for traffic enforcement for the political subdivision, and any other relevant public agencies.
(d) The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a business district and neighborhood security project a grant that:
(1) is at least $75,000; and
(2) does not exceed $150,000.
Md. Code, Housing and Community Development § 6-1306
(a) (1) In this section the following words have the meanings indicated.
(2) “Community–centered crime and violence intervention and prevention project” means a comprehensive strategy that integrates partnerships and coordinated activities that:
(i) directly engage individuals who are at risk of becoming involved with or affected by violence and crime using evidence–based interventions; and
(ii) reduce crime and disorder by carefully examining the characteristics of problems in neighborhoods and applying appropriate problem–solving remedies.
(3) “Eligible applicant” means a tax–exempt nonprofit organization.
(b) An eligible applicant may apply for a grant under the Program for a community–centered crime and violence intervention and prevention project.
(c) The Department may award an eligible applicant who submits a complete application for financial assistance under the Program for a community–centered crime and violence intervention and prevention project a grant that does not exceed $250,000.
Md. Code, Housing and Community Development § 6-1307
(a) In this section, “Fund” means the Community Health and Safety Works Grant Program Fund.
(b) There is a Community Health and Safety Works Grant Program Fund.
(c) The purpose of the Fund is to provide financial assistance in the form of grants under the provisions of the Program for eligible projects.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) earnings from the investment of money in the Fund;
(3) interest earnings of the Fund; and
(4) any other money from any other source accepted for the benefit of the Fund.
(g) The Fund may be used only for providing financial assistance in the form of grants under the Program.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State budget.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026