5529
MONTGOMERY COUNTY

LOANS MADE TO PROPERTY OWNERS WITHIN

FEDERALLY-ASSISTED URBAN RENEWAL PROJECTS MADE IN
ACCORDANCE WITH SECTION 1(B)(3) SHALL CARRY AN INTEREST
RATE OF FROM ONE PERCENT PER ANNUM TO THE MARKET RATE.
REPAYMENT PROVISIONS SHALL BE BASED ON THE FINANCIAL
CIRCUMSTANCES OF THE INDIVIDUAL PROPERTY OWNER. FROM THE
EFFECTIVE DATE OF THIS SECTION IN DETERMINING THE INITIAL
RATE OF INTEREST, THE PROPERTY OWNER SHALL NOT BE
EXPECTED TO ALLOCATE, BASED ON A LOAN TERM OF THIRTY
YEARS, MORE THAN TWENTY-FIVE PERCENT OF HIS FAMILY GROSS
INCOME TO THE MONTHLY COSTS OF SHELTER (PRINCIPAL,
INTEREST, TAXES, INSURANCE, MAINTENANCE AND UTILITIES).

2c. Terms of the loan shall be based upon the

owner's financial circumstances at the time of the loan
commitment, IF THE INITIAL RATE OF INTEREST IS THREE
PERCENT OR LESS FOR ANY LOAN TO A PROPERTY OWNER OUTSIDE
A FEDERALLY ASSISTED URBAN RENEWAL PROJECT, THE INTEREST
RATE MUST BE INCREASED TO A HIGHER RATE UPON A
DETERMINATION THAT TWENTY-FIVE PERCENT OF THE PROPERTY
OWNER'S FAMILY GROSS INCOME IS SUFFICIENT TO PAY THE
MONTHLY COSTS OF SHELTER (PRINCIPAL, INTEREST, TAXES,
INSURANCE, MAINTENANCE, AND UTILITIES) AT SUCH HIGHER
RATE. IF THE INITIAL RATE OF INTEREST IS LESS THAN THE
MARKET RATE FOR ANY LOAN TO A PROPERTY OWNER WITHIN A
FEDERALLY-ASSISTED URBAN RENEWAL PROJECT UNDER THE
PROVISIONS OF SECTION 1(B)3, THE INTEREST RATE MUST BE
INCREASED TO A HIGHER RATE UPON A DETERMINATION THAT
TWENTY-FIVE PERCENT OF THE PROPERTY OWNER'S FAMILY GROSS
INCOME IS SUFFICIENT TO PAY THE MONTHLY COSTS OF SHELTER
(PRINCIPAL, INTEREST, TAXES, INSURANCE, MAINTENANCE AND
UTILITIES) AT SUCH HIGHER RATE. THE INITIAL INTEREST
RATE MAY BE DECREASED UPON A DETERMINATION THAT THE
PROPERTY OWNER WILL PAY MORE THAN TWENTY-FIVE PERCENT OF
FAMILY GROSS INCOME FOR THE MONTHLY COSTS OF SHELTER
(PRINCIPAL, INTEREST, TAXES, INSURANCE, MAINTENANCE AND
UTILITIES) AND UNDUE FINANCIAL HARDSHIP WOULD OCCUR IF
THE INTEREST RATE REMAINED AS ORIGINALLY ESTABLISHED.

2E. UPON SALE OF THE PROPERTY, THE INTEREST RATE

FOR THE NEW OWNER SHALL BE ESTABLISHED BY THE PROVISIONS
OF THIS SECTION EXCEPT THAT IF THE PROPERTY IS PURCHASED
BY THE MONTGOMERY COUNTY HOUSING AUTHORITY THE INTEREST
RATE SHALL BE THREE PERCENT. IF THE PURCHASER DOES NOT
QUALIFY FOR A REHABILITATION LOAN UNDER THIS SECTION, THE
INTEREST RATE SHALL BE THE MARKET RATE.

Approved July 23, 1974