date is to increase the supply of housing for
families of limited income, and for the elderly and
the handicapped, as well as to foster sound com-
munity development and to stimulate the construc-
tion industry statewide. Programs are funded by
the sale of tax-exempt revenue bonds and construc-
tion loans notes, and State general obligation
bonds, and by federal housing subsidies.

Projects proposed for financial assistance must
be consistent with local priorities and complement
and supplement local community development
programs and initiatives. Projects must meet eligi-
bility criteria and financing requirements, and
income limits are established as the guideline for
persons served (Code 1957, Art. 41, secs. 257L,
266DD-1 to 266DD-8 and 266FF-1 to 266FF-4).

Single-Family Programs. The Maryland Home
Financing Program (MHFP) is the oldest of the
three single-family programs supervised by the
Administration. The program was authorized by
the General Assembly in 1972 and first funded
with the sale of State General Obligation Bonds in
1973. This direct-loan program expands homeown-
ership opportunities for low income Marylanders.
It differs from the other single-family programs by
virtue of its funding source: General Obligation
Bonds and appropriations, and a revolving fund
from prior loans under the program. MHFP is
administered through outreach agents located in
each major political subdivision in the State. Loans
have been made in every county and the City of
Baltimore (Code 1957, Art. 41, sec. 266FF; Code
Financial Institutions Article, sec. 13-310).

The Homeownership Development Program
(HDP), like the Maryland Home Financing Pro-
gram, is a direct loan program. First funded in
April 1979, it is the only single-family program
geared to stimulate new housing construction.
HDP is funded through the sale of tax-exempt
revenue bonds. Funds are designated for newly
constructed homes in approved subdivisions. Only
a portion—an average of 31 percent—of the homes
in each subdivision are assigned for CDA financ-
ing. The rest must use private financing. In this
way an income mix is achieved in the development.

Using the guidelines of the Mortgage Subsidy
Bond Tax Act of 1980, the Administration sets
maximum income limits for participants in the
Homeownership Development Program. Sales
price limits are also set by CDA. They are based on
both affordability within the income limits and the
interest rate for the revenue bonds. Loans are given
on a first-come, first-served basis (Code 1957, Art.
41, sec. 266DD).

Economic and Community Development/]?]

Established in 1980, the Mortgage Purchase
Program (MPP) was implemented in response to
dwindling mortgage funds available through pri-
vate lending institutions and rising mortgage rates.
The MPP is the only single-family program that
makes mortgage loans through participating lend-
ing institutions. In this program, CDA purchases
loans made by lending institutions to eligible low
and moderate-income persons.

Both newly constructed and existing homes are
eligible under the Mortgage Purchase Program.
MPP is designed primarily for first-time homebuy-
ers. Applications for loans are made to a partici-
pating mortgage lender.

Recently, federal law designated targeted, gener-
ally low-income areas for which 20 percent of the
funds from bond issues must be set aside. In these
areas, purchase price limits are slightly higher and
buyers are not required to be first-time home
buyers.

The Mortgage Purchase Program is funded by
the sale of tax-exempt revenue bonds. Both the
acquisition cost and income limits are set by CDA
using the guidelines of the Mortgage Subsidy Bond
Tax Act of 1980. Acquisition costs vary by region.

Multi-Family Program. The Multi-Family
Program began in 1974. It makes three types of
financing available to non-profit and limited
dividend developers of multi-family rental housing:
construction loans, permanent financing, and
combined permanent financing and construction
loans.

Financing of multi-family housing developments
is provided through the sale of tax-exempt revenue
bonds and construction loan notes. The multi-
family developments are targeted for families and
elderly persons with limited incomes. In addition
to tax-exempt financing through the State, devel-
opments financed under this program may receive
rent subsidies, when available, under the federal
government's Section 8 Program.

The Multi-Family Program accounts for roughly
60 percent of the housing financed by CDA.

Home Improvement Programs. The Maryland
Housing Rehabilitation Program (MHRP) is
designed to preserve the State's stock of existing
housing by making direct, low-interest loans
available to limited-income homeowners for use in
repair and renovation. MHRP also makes direct
loans available to the owners of apartment
buildings of up to twenty units and commercial
properties. Under the requirements of the
program, recipients of loans for the renovation of