§4–508.

    (a)    In this section, “Fund” means the Strategic Demolition and Smart Growth Impact Fund.

    (b)    There is a Strategic Demolition and Smart Growth Impact Fund.

    (c)    The purpose of the Fund is to provide grants and loans to assist in predevelopment activities, including interior and exterior demolition, land assembly, architecture and engineering, site development, and credit enhancement for revitalization projects in designated areas of the State.

    (d)    The Department shall administer the Fund.

    (e)    (1)    The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

        (2)    The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

    (f)    The Fund consists of:

        (1)    money appropriated in the State budget to the Fund;

        (2)    repayments of loans made from the Fund;

        (3)    interest earnings of the Fund; and

        (4)    any other money from any other source accepted for the benefit of the Fund.

    (g)    (1)    The Fund may be used only to provide grants and loans to government agencies and community development organizations for interior and exterior demolition, land assembly, architecture and engineering, site development, and credit enhancement for revitalization projects in an area designated as:

            (i)    a Sustainable Community; or

            (ii)    a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.

        (2)    (i)    For fiscal years 2017 through 2019, to be eligible for a grant or loan from the Fund, a government agency or community development organization shall provide evidence of a matching fund that is equal to $1 for every $4 in State funding that the agency or organization is applying for from the Fund.

            (ii)    The matching fund required under subparagraph (i) of this paragraph may include:

                1.    money from the federal government, local government, or any other public or private source;

                2.    real property;

                3.    in–kind contributions; and

                4.    funds expended before the date the grant or loan is awarded.

        (3)    For fiscal year 2020 and each fiscal year thereafter, to be eligible for a grant or loan from the Fund, a government agency or community development organization is not required to provide evidence of a matching fund.

        (4)    The Department shall award grants and loans from the Fund on a competitive basis.

    (h)    (1)    The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

        (2)    Any interest earnings of the Fund shall be credited to the Fund.

    (i)    Expenditures from the Fund may be made only in accordance with the State budget.

    (j)    (1)    For fiscal year 2018, the Governor shall include in the annual budget bill or capital budget bill an appropriation of $25,625,000 from general funds or the proceeds from the sale of State general obligation bonds to the Fund, which shall be allocated as follows:

            (i)    $22,125,000 for projects in Baltimore City; and

            (ii)    $3,500,000 for projects throughout the State.

        (2)    For fiscal year 2019, the Governor shall include in the annual budget bill or capital budget bill an appropriation of $28,500,000 from general funds or the proceeds from the sale of State general obligation bonds to the Fund, which shall be allocated as follows:

            (i)    $25,000,000 for projects in Baltimore City; and

            (ii)    $3,500,000 for projects throughout the State.