Section 4-1509 - Loans.
§ 4-1509. Loans.
(a) Security.-
(1) A Program loan may be secured by a mortgage lien.
(2) A lien under this subsection may:
(i) be subordinate to other mortgage liens; and
(ii) include terms the Department considers necessary to make the rental housing affordable to families of lower income, including:
1. deferred payment of principal and interest; and
2. interest rates as low as 0%.
(b) Use of Program loans.- A Program loan may be used for:
(1) capital assistance to finance all or part of the development costs of a project if all or part of the Program loan is secured by a mortgage lien; or
(2) operating assistance to reduce the operating costs of a project by depositing the proceeds of the Program loan in an interest bearing account that is under the control of the Department and is used to pay the operating costs, including the principal and interest when due on any prior mortgage loan securing the project.
(c) Powers of Department.- To facilitate repayment of the Program loan and achieve the purposes of the Program, the Department may modify:
(1) the interest rate;
(2) the time or amount of payment; or
(3) any other term of the Program loan.
[An. Code 1957, art. 83B, § 2-506; 2005, ch. 26, § 2.]