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Maryland Code, Economic Development § 5-1407

Current as of December 31, 2021 | Updated by FindLaw Staff

(a)(1)(i) A qualified institution, a county and, if applicable, a municipal corporation, or the economic development agency of a county or municipal corporation may establish a program to provide rental assistance to a business entity that:

1. moves into or locates in a RISE zone on or after the date that the zone is designated under this subtitle;

2. has nexus with a qualified institution located in the RISE zone; and

3. has been in active business not longer than 7 years.

(ii) A business entity may not receive rental assistance under a rental assistance program established in accordance with subparagraph (i) of this paragraph for more than 3 years.

(2)(i) A qualified institution, a county and, if applicable, a municipal corporation, or the economic development agency of a county or municipal corporation that establishes a rental assistance program in accordance with paragraph (1) of this subsection may submit a request to receive a distribution of matching funds from the Fund.

(ii) The application shall include:

1. a description of the rental assistance program;

2. the amount of funding that the applicant has secured to provide rental assistance under the rental assistance program;

3. the amount requested for distribution from the Fund in accordance with this section; and

4. any other information requested by the Department.

(iii) The applicant shall submit the application on or before the date that the Department specifies.

(b)(1) The Department shall review each request for distribution of matching funds from the Fund for compliance with the provisions of this section and Department regulations.

(2) Subject to the availability of funds in the Fund and paragraph (3) of this subsection, if the Department approves a request for distribution of matching funds from the Fund, the Department shall distribute to a fund dedicated to the applicant's rental assistance program an amount equal to three times the amount of funding specified under subsection (a)(2)(ii)2 of this section.

(3) Except as provided in subsection (c) of this section, the Department shall make available not more than 25% of cumulative program funds from the Fund for rental assistance programs in a single RISE zone.

(c)(1) Within 90 days after approval by the Department of a request for matching funds under subsection (a) of this section, the applicant shall deposit an amount equal to or greater than the amount specified under subsection (a)(2)(ii)2 of this section into a fund dedicated to the applicant's rental assistance program.

(2) If an applicant fails to have deposited the amount required under paragraph (1) of this subsection, any portion of funds allocated to the applicant that has not been distributed shall be reallocated to another applicant in accordance with this section.

(3) If the Department fails to allocate the funds in the Fund under this subtitle and rental assistance programs in a single RISE zone have previously received 25% of cumulative program funds from the Fund, the Department may distribute additional funds to applicants for that RISE zone in accordance with this subtitle.

(d)(1) On or before September 15 each year, a rental assistance program that has received a distribution of funds from the Fund shall submit to the Department an annual report in the form and containing the information required by the Secretary.

(2) The report required under paragraph (1) of this subsection shall detail the use of funds received under this section for the immediately preceding fiscal year and provide an update on any funds that were not disbursed during that fiscal year.

(3) The Department may not distribute matching funds from the Fund to a rental assistance program under this section if the rental assistance program has failed to submit the report required under paragraph (1) of this subsection.

(e) A rental assistance program that receives a distribution of matching funds from the Fund shall be subject to an audit at least once every 3 years by an independent certified public accountant that the applicant and the Department select.

(f) Based on the findings of an audit conducted under subsection (e) of this section, the Department may make an assessment against a qualified institution, a county, a municipal corporation, or an economic development agency to recapture any misused or undistributed funds.

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Cite this article: FindLaw.com - Maryland Code, Economic Development § 5-1407 - last updated December 31, 2021 | https://codes.findlaw.com/md/economic-development/md-code-econ-dev-sect-5-1407/

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