(a) In this subtitle the following words have the meanings indicated.
(b) “Affordable” means that monthly housing costs do not exceed 30% of a household’s income, where the household’s income does not exceed 80% of the statewide median income for a household of like size.
(c) “Appraisal gap” means the amount by which the total cost of eligible construction expenses exceeds the contract sales price of a qualified property when it is initially sold to an owner–occupant.
(d) (1) “Eligible construction expenses” means any amount that is expended on the construction or substantial rehabilitation of a qualified property.
(2) “Eligible construction expenses” includes any amount expended on:
(i) acquisition costs;
(ii) roof repair and replacement;
(iii) chimney repair and lining;
(iv) internal and external doors;
(v) windows;
(vi) masonry;
(vii) floor joists;
(viii) finished flooring;
(ix) framing;
(x) structural repairs;
(xi) foundation repairs;
(xii) plumbing, electrical, and mechanical systems;
(xiii) architectural and engineering consulting fees;
(xiv) tools and equipment rental; and
(xv) new construction.
(e) “Financial assistance” does not include:
(1) loans; or
(2) other instruments that would create debt through property liens on qualified property under this subtitle.
(f) “Fund” means the Appraisal Gap From Historic Redlining Financial Assistance Fund established under this subtitle.
(g) “Qualified project” means the construction or substantial rehabilitation of a qualified property if the eligible construction expenses do not exceed $500,000.
(h) “Qualified property” means residential real property that is:
(1) newly constructed or a formerly vacant structure that has been substantially rehabilitated;
(2) located in:
(i) a low–income census tract as defined by the U.S. Department of Housing and Urban Development; and
(ii) an area designated as a sustainable community under § 6–205 of this article; and
(3) constructed or rehabilitated with the purpose of being sold to an owner–occupant at an affordable sales price.