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(a) The Director may loan funds to an owner of a single-family home to fund eligible costs to make an energy efficiency improvement that is projected to be cost effective or install a renewable energy device in the single-family home, up to the maximum loan amount set by regulation.
(b) To be eligible for a loan under this Program, a property owner must:
(1) have a home energy audit performed on the owner’s single-family home by a certified energy auditor, as required under Section 18A-27; and
(2) have the energy efficience improvement completed or renewable energy device installed in the time frame set by regulation; and
(3) agree to repay the loan amount borrowed through the County tax bill for that home, as required by Section 18A-28.
(c) The Department of Permitting Services must certify that the improvement or device for which the funds were loaned has been property installed. The Department must accept a certification by another government agency, including a municipality, that the improvement or device has been properly installed. The County Executive may assign the responsibility under this subsection to another entity, including a third party. However, the entity responsible for certifying that the improvement or device has been properly installed must not be the entity that installed the improvement or device.
(d) The term of the loan must be 15 years. However, the Director may set a longer loan term by regulation.
(e) Use of funds for an energy efficiency improvement.
(1) A person may borrow funds for eligible costs to make an energy efficiency improvement, less any amount received from a public or private program because the improvement is or will be made.
(2) Except as provided by subsection (e)(3), funds must be loaned only for an energy efficiency improvement that is projected to be cost effective.
(3) Funds may be loaned for an energy efficiency improvement that is not cost effective if that improvement is part of a package of improvements financed under the Program that cumulatively is cost effective.
(f) Use of funds for a renewable energy device.
(1) Except as provided in (f)(2), a person may borrow funds for eligible costs to install a renewable energy device only if the single-family home meets energy efficiency criteria established by the Department.
(2) A person may borrow funds to install a renewable energy device on a single- family home that does not meet the energy efficiency criteria in (f)(1) if the device is cost effective.
(3) A person may borrow funds for eligible costs to install a renewable energy device, less any amount received from a public or private program because the device is or will be installed. (2009 L.M.C., ch. 8, § 1.)
(a) An applicant for a loan under this Program must have an submit to the County a home energy audit performed on the owner’s home by a certified energy auditor.
(b) The auditor must prepare a written report that:
(1) contains findings and recommendations to improve the home’s energy efficiency;
(2) identifies those cost effective energy efficiency improvements which would generate projected annual energy cost savings, based on projected energy costs set by Method (3) regulations, that are equal to or more than the estimated cost of the improvements to be financed under the County program when the cost of the improvements are amortized over 15 years; and
(3) identifies any public or private financing mechanisms known to the auditor that could be used to implement energy efficiency improvements.
(c) The cost of the audit may be included in the amount of the loan. (2009 L.M.C., ch. 8, § 1.)
Editor’s note—2009 L.M.C., ch. 8, § 2, states in part: (a) Unless the Council grants an extension, the County Executive must adopt and submit to the County Council, not later than (date 6 months after enactment of bill [October 14, 2009]), regulations to implement Article 4 of Chapter 18A, as added by Section 1 of this Act.... (c) Within 6 months, the Executive must: (1) report to the Council on whether the cost of the home energy audit required under § 18A-27 is likely to be a significant barrier to participation in the Program; and (2) provide recommendations to address any barrier that the Executive identifies.
(a) The owner of single-family home must agree to repay the loan amount borrowed, amortized over 15 years, through the County property tax bill for that home.
(b) If the owner of the single-family home sells the home, the seller must disclose that the buyer must continue to repay the loan through the property tax bill.
(c) The loan amount and any accrued interest constitute a first lien on the real property to which the loan applies until paid. The loan amount and accrued interest are collectable by suit or tax sale like all other real property taxes, to the extent allowed by State law. If the property owner does not pay the loan and accrued interest as required, the property may be certified to the Department of Finance and the lien may be sold at the tax sale conducted by the County. (2009 L.M.C., ch. 8, § 1.)
Editor’s note—2009 L.M.C., ch. 8, § 2, states in part: (a) Unless the Council grants an extension, the County Executive must adopt and submit to the County Council, not later than (date 6 months after enactment of bill [October 14, 2009]), regulations to implement Article 4 of Chapter 18A, as added by Section 1 of this Act. (b) Within 6 months, the Executive must: (1) report to the Council if the Executive believes that the repayment provisions of § 18A-28 are likely to unduly burden the lending industry or hinder homeowners from obtaining financing to refinance or purchase a home; and (2) provide alternative recommendations, if appropriate, that would achieve the policy objective of assuring that the remaining loan payments will be assumed by the buyer of a property....
The Executive must adopt regulations under Method (2) to administer the Program, including:
(a) lending standards and priorities;
(b) minimum and maximum loan amounts;
(c) interest rates, terms, and conditions;
(d) application procedures, including necessary supporting documentations;
(e) criteria for adequate security;
(f) procedures to refer applicants to other sources of funds, and to cooperate with other public and private sources of funds;
(g) procedures to ask the Director to reconsider any denial of a loan or any decision on interest rates, terms, and conditions;
(h) procedures for nonpayment or default;
(i) procedures and requirements for post-installation inspection;
(j) disclosure requirements for real estate transactions; and
(k) criteria for loan disbursement. (2009 L.M.C., ch. 8, § 1.)
(1) Definitions. In this Section, the following words have the meanings indicated:
Department means the Department of Finance.
Revolving loan fund or Fund means the special, nonlapsing fund to finance the Home Energy Loan Program established under this Article.
(b) The Fund consists of:
(1) money appropriated in the County budget for the Program;
(2) money received from any public or private source;
(3) interest and investment earnings on the Fund;
(4) repayments and prepayments of principal and interest on loans made from the Fund; and
(5) any other available funds to support the Program.
(c) The Department must:
(1) disburse funds and collect payments for a loan made under the Program; and
(2) maintain loan records and provide an annual report to the Department of Environmental Protection. (2009 L.M.C., ch. 8, § 1.)
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