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NEWS RELEASE ON LEGISLATION CREATING
A STATE HOUSING DEVELOPMENT AUTHORITY

February 19, 1968

Governor Agnew will submit to the Maryland Legislature this week
legislation to create a State Housing Development Authority to in-
crease the construction and rehabilitation of low and moderate in-
come housing.

The legislation provides for grants, mortgage loans and loan in-
surance for public and private concerns willing to undertake such
ventures. The Authority would be empowered to issue tax-exempt,
interest-bearing bonds to finance its operations.

Under the terms of the bill, the Authority would establish priorities
for housing needs and designate areas of the State where assistance is
most needed.

The legislation specifies that in the determination of such priorities
"highest ranking shall be given to those projects which will most aid
those persons of low and moderate income who are to be, or have
been, forced to relocate by reason of public projects or the action of
a public agency. "

This feature, differing from similar legislation in other states, em-
phasizes the need for accommodating persons displaced by highway
or urban renewal projects.

The Authority would consist of the State Treasurer, State Planning
Director, and five other members appointed by the Governor from
persons who are knowledgeable in the housing development fields.

The Authority would be empowered to make loans, accept gifts and
Federal grants, invest funds and collect fees and charges from those
who have borrowed under the provisions of the Act.

An initial bond issue of $10 million is authorized by the bill.

Governor Agnew said the legislation is urgently needed "not only
to relieve the impaction and slums of Maryland's urban areas, but
to aid the elderly and even the moderate income family whose stan-
dard of living is threatened by the inflationary spiral. "

The legislation offers incentives for local governments to initiate or
expand their public housing efforts. Direct loans may be given any
county, municipality or Baltimore City, or any local housing authori-
ty, under terms of the bill.