Loans.

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    (a)    Proceeds of a Program loan shall be used only for:

        (1)    property acquisition and development costs for the construction of a net–zero home or low–energy home; and

        (2)    settlement and closing costs.

    (b)    A Program loan shall be secured by a mortgage lien that:

        (1)    may be subordinate to other mortgage liens; and

        (2)    may include terms, including deferred payment of principal and interest, that the Department considers necessary to make the project viable.

    (c)    To apply for a loan under this subtitle, an applicant shall submit:

        (1)    a completed application in a form that the Department requires;

        (2)    information on projected energy usage, project design, and marketing data; and

        (3)    any other information or documentation that the Department considers necessary to make a determination on the loan.

    (d)    The Department may give a preference to an application for:

        (1)    a net–zero home; or

        (2)    a project that includes financing from other sources in addition to the Program loan.


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