The Frederick County Department of Housing and Community Development administers the "Special Loan Programs' on behalf of the Maryland Department of Housing and Community Development (DHCD).These programs are designed to improve single family and small rental properties for low and moderate-income families. The programs rehabilitate properties, increase energy conservation and meet special housing needs such as lead paint abatement and installation of indoor water and sewer facilities.
The Special Loans will have interest rates based on the household incomes of the residents and owner-occupants, or the project income available to repay the loan. Loans in excess of $5,000.00 or with deferred payments are secured by a mortgage. Loans may provide for deferred payment of principle and interest for households with income below 50 percent of the Washington, D.C. MSA median income.
Loan proceeds may be used to pay for the actual costs of rehabilitating the property to correct deficiencies, energy conservation, handicapped accessibility, plumbing, wells, sewer and lead hazard reduction. For amortizing MHRP loans only, up to 40 percent of the loan may be used for general property improvements such as remodeling of kitchens and bathrooms, carpeting and landscaping. Homeowners may finance all costs associated with closing the loan. Sponsors are required to pay all closing costs.