COMAR 05.04.05.10. Loan Application Process

A. Procedure — In General. The Department shall establish application procedures for loan administrators to follow, that will facilitate the application process and best serve the needs of the political subdivisions and the State. These procedures may be amended from time to time and are binding upon all borrowers. Alternative procedures may not be used without the prior approval of the Department.

B. Application Forms. Applications shall be made upon standard forms prescribed by the Department.

C. Application Fee. Upon submission of a loan application, the applicant may be required to pay an application fee in an amount set by the local administrator, subject to approval by the Department.

D. Documentation.

(1) The applicant shall submit with the application any documentation that the Department requires, including, but not limited to, any documentation needed to establish the eligibility and credit worthiness of the applicant.

(2) Applicants shall submit supporting documentation specified in the checklist attached to the application, which may include any of the following:

(a) A copy of the deed to the property;

(b) A copy of all existing mortgages or mortgage verification requests, on the form approved by the Department, signed by the applicant for each mortgage secured by the building;

(c) A copy of the first page and declarations page of all policies for fire and extended coverage insurance and, if applicable, flood insurance;

(d) A copy of the most recent real estate tax bill which sets forth the current assessed value of the building and the property;

(e) Verification of the total assets and annual income of each person in the household of an owner-occupant applicant, or, for owner-landlord applicants, a list of all tenants in a building showing household name, address, number of persons in the household, total combined annual household income, and current monthly rent;

(f) For the 2 years immediately preceding the application:

nd the property;

(e) Verification of the total assets and annual income of each person in the household of an owner-occupant applicant, or, for owner-landlord applicants, a list of all tenants in a building showing household name, address, number of persons in the household, total combined annual household income, and current monthly rent;

(f) For the 2 years immediately preceding the application:

(i) If self-employed, copies of federal income tax returns, or, if a nonprofit organization, the applicable federal reporting forms;

(ii) Copies of State income tax returns; or

(iii) A request signed by the applicant, on the form designated by the Department, for copies of the applicant's State income tax returns; and

(g) With the application, a description of the proposed improvements, followed by a contractor's proposal which complies with all applicable MDE and other governmental requirements.

(3) In addition, owner-landlord applicants shall submit the following documentation:

(a) If applicable, certified copies of the organizational documents of the owner-landlord and a certificate of good standing;

(b) Certified financial statements of the applicant and, if applicable, certified financial statements of its principals;

(c) 3 years of operating statements for the project;

(d) If applicable, resolutions of the board of directors or consents of all of the partners authorizing the application;

(e) For projects receiving federal subsidies, copies of all contracts or feasibility analyses prepared by the administering agency, as applicable;

(f) Photographs of the building and site;

(g) Evidence that the property is a separate subdivided lot and a separate tax lot, if the building has more than four dwelling units; and

(h) Evidence of zoning compliance.

Cross References 05.04.05.11B(2)