State Agencies

limited-income citizens of the State who are un-
able to obtain mortgage financing from conven-
tional financial institutions at affordable terms
and interest rates. The applicants must meet all
eligibility criteria standards and certain estab-
lished income limits.

Through the Maryland Housing Rehabilitation
Program, which was enacted by the General As-
sembly in 1975, CDA participates with local sub-
divisions in providing direct loans to families of
limited income. The homes must generally be lo-
cated in "target areas." Owners of historic or ar-
chitecturally significant property can borrow
funds under this program regardless of their in-
come.

The Mortgage Purchase Program is similar to
the Maryland Home Financing Program, except
that it serves a slightly broader range of eligible
families and it operates through private lenders,
such as savings and loan institutions and banks
and mortgage companies. Under the program,
CDA buys out the lender's interest in a mortgage
loan immediately after settlement with an eligible
family. Before CDA will make a purchase, the
originating private lender must certify that the
home buyer could not afford to purchase the
property with financing available through private
lenders on an unassisted basis.

The Homeowner Development Program pro-
vides long-term mortgage financing at low market
interest rates to purchasers of new homes in
housing subdivisions. Financed by the sale of rev-
enue bonds, the program is designed to stimulate
construction of new housing for families of mod-
erate means.

The Community Development Administration
also manages the Section 8 Rent Subsidy Pro-
gram, a federal program which subsidizes rents
for eligible families living in both new and
existing housing. Tenants eligible for the program
make rental payments equivalent to 25 percent of
their income, or 15 percent in the case of certain
large families. Section 8 funds cover the difference
between that amount and the ceiling established
for rental and utility costs. The program is
designed to aid lower income families, the elderly,
and the handicapped.

Projects financed by the Department of Eco-
nomic and Community Development must be
consistent with local priorities and must comple-
ment and supplement local community develop-
ment programs and initiatives. Projects must
meet eligibility criteria and financing require-
ments, and income limits are established as the

Economic and Community Development/145

guideline for persons served (Code 1957, Art. 41,
secs. 257L, 266DD-1 to 266DD-7 and 266FF-1
to 266PF-4).

DEVELOPMENT CREDIT
CORPORATION OF MARYLAND

OFFICERS

Chairperson of the Board: William A. Beasman,
Jr.

President and Chief Executive Officer: W. G.
Brooks Thomas

Treasurer: R. Kenneth Rous
Secretary: Timothy D. McMillin

40 West Chesapeake Ave.
Suite 211
Towson 21204 Telephone: 828-4711

The General Assembly authorized the estab-
lishment of the Development Credit Corporation
of Maryland by Chapter 822, Acts of 1959, to
stimulate business and industry in the State of
Maryland by making loans available to small
businesses that would not qualify for loans from
conventional institutions such as banks or insur-
ance companies.

The Corporation consists of two classes of par-
ticipants: members and stockholders. Only finan-
cial institutions—those institutions whose activ-
ities include lending or investing money—may
become members. Members must loan funds to
the Corporation upon demand up to limits that
are set by law and based on financial capacity.
All such calls for funds are to be prorated among
the members in the proportion that the maximum
loan limit of each bears to the aggregate loan lim-
its of all members. Individuals and domestic cor-
porations may become stockholders, but financial
institutions may be stockholders only if they are
also members. The authorized capital stock con-
sists of two million shares of common stock with
a par value of one dollar each.

The fifteen member Board of Directors, repre-
senting the five economic regions, exercises the
corporate powers of the Development Credit Cor-
poration. There are five economic regions: the
Central Region (Baltimore, Carroll, Harford, and
Howard counties); the Eastern Shore Region
(Caroline, Cecil, Dorchester, Kent, Queen Anne's,
Somerset, Talbot, Wicomico, and Worcester coun-