§4–1207.

    (a)    Except as provided in subsection (c) of this section, the Department may approve an application for a proposed partnership project only if:

        (1)    the application is authorized by the chief elected official of the political subdivision or, if there is no chief elected official, by the governing body of the political subdivision in which the project is located;

        (2)    the political subdivision or housing authority:

            (i)    contributes from non–State sources the land for the partnership rental housing;

            (ii)    funds the part of the acquisition cost of the property that is attributable to the value of the land; or

            (iii)    makes a contribution under § 4–1208(d)(2) of this subtitle that equals or exceeds the value of the land;

        (3)    the political subdivision or housing authority is to have an ownership interest in the partnership project or in the rental units financed by the Program and sold to the political subdivision or housing authority or to a partnership that includes the political subdivision or housing authority;

        (4)    the political subdivision or housing authority directly or indirectly manages the partnership project;

        (5)    the rental units financed by the Program are to be occupied on completion of the acquisition, construction, reconstruction, renovation, or rehabilitation by households of lower income;

        (6)    unless prohibited by any applicable federal requirement, the households of lower income occupying the partnership project or the part financed by the Program are required to contribute services to enhance or maintain the partnership project or the community in a way that the political subdivision or housing authority accepts; and

        (7)    it is reasonable to anticipate that:

            (i)    more State subsidies will not be needed for long–term occupancy by households of lower income; and

            (ii)    rental income, including any contribution to allow for more affordable rents under § 4–1208(d) of this subtitle, will be enough to pay the operating costs of the partnership project and to build an adequate reserve for the long–term maintenance and renovation of the partnership project.

    (b)    The rental units financed by the Program may include, as among those that must be occupied by households of lower income, rental units restricted for occupancy to meet other federal or State occupancy requirements.

    (c)    The Department may approve the use of partnership rental housing funds for a unit of partnership rental housing that does not comply with each requirement set forth in subsection (a) of this section if:

        (1)    the unit will be occupied by a household of lower income that includes one or more individuals with disabilities or special needs; and

        (2)    the project in which the unit is located complies with the requirements of the other State housing programs financing the project, if any.