(a) In offering insurance and other forms of credit enhancement, the
Department shall adopt eligibility standards that are reasonable to aid
in:
(1) financing the purchase, construction, or rehabilitation of:
(i) housing projects;
(ii) special housing facility projects, consisting of the acquisition,
rehabilitation, improvement, renovation, construction, financing, or
refinancing of a building that:
1. provides common, shared, or independent living, dining, kitchen,
sanitary, and sleeping facilities;
2. may include supportive services or supervisory live-in personnel for
individuals with specialized housing needs; and
3. may include nonresidential facilities to serve individuals with special
needs who may or may not be residents of the special housing facility;
(iii) rehabilitation projects, as defined in § 4-901 of this article;
(iv) energy conservation projects;
(v) solar energy projects;
(vi) public purpose projects; or
(vii) infrastructure projects; and
(2) the sale or other transfer of an obligation that is:
(i) denoted as a bond, note, collateralized obligation, grantor trust,
conduit, or other form of security or obligation; and
(ii) backed directly or indirectly by a mortgage or a payment derived from a
mortgage.
(b) The standards adopted under subsection (a) of this section shall ensure
that a lender benefiting from insurance or other credit enhancement
provided by the Department is responsible and able to service the loan.
(c) A determination by the Secretary is conclusive if it relates to the
eligibility of a project, facility, or undertaking for:
(1) insurance or other credit enhancement; or
(2) other action taken by the Department, in its own name or in the name of
the Fund, under this subtitle.
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