COMMUNITY DEVELOPMENT Using the guidelines of the Mortgage Subsidy
ADMINISTRATION Bond Tax Act of 1980, the Administration sets

maximum income limits for participants in the

Home Ownership Development Program. Sales
Trudy McFall, Director price limits are also set by the Administration.

They are based on both affordability within the in-
45 Calvert St. come limits and the interest rate for the revenue
Annapolis 21401 Telephone: 974-3161 bonds. Loans are given on a first-come, first-serve

basis.
The Community Development Administration

(CDA) was created in 1970 within the Depart- Established in 1980, the Mortgage Purchase Pro.
ment of Economic and Community Development ^^ ^ implemented in response to
(Chapter 527, Acts of 1970). In 1987, the Admm- idling mortgage funds available through pri-
istration became part of the Department ofHous- ^ ^ institutions and rising mortgage
^^T,¹¹"^{1 y T)e\elo}P^me1:lt (Senate Bill no. ^ ^ ^pp ^^ ^gage loans through
699). The Administration s mandate is to increase rticipating lending institutions In this program,
the supply of housing for families of limited in- ^ Administration purchases loans made by lend-
come, and for the elderly and the handicapped, as ; institutions to eligible low- and moderate-in-
well as to foster sound community development „„„,„ nersons
and stimulate the construction industry statewide.
Programs are funded by the sale of tax-exempt

revenue bonds, construction loan notes, State gen- ^Both "^ constructed and existing homes are
eral obligation bonds, general funds, and by feder- eligible under the Mortgage Purchase Program.
al housing subsidies MPP is designed primarily for first-time home

buyers. Applications for loans are made to a par-
Projects proposed for financial assistance must ticipating mortgage lender.
be consistent with local priorities and complement

and supplement local community development Federal law designates certain low-income areas
programs and initiatives. Projects must meet eligi- as target areas for which 20 percent of the funds
bility criteria and financing requirements (Code from bond issues must be set aside. In these areas,
1957, Art. 41B, sees. 2-203 through 2-208). purchase price limits are slightly higher and buy-
ers are not required to be first-time home buyers.
MARYLAND HOME FINANCING

PROGRAM The Mortgage Purchase Program is funded by
the sale of tax-exempt revenue bonds. Both the
acquisition cost and income limits are set by the

The Maryland Home Financing Program Administration using federal tax law guidelines.
(MHFP) was authorized by the General Assembly Acquisition costs vary by region.
in 1972 and first funded with the sale of State gen-
eral obligation bonds in 1973. This direct-loan ^.pyy ,,>rp. wnTTSTMr

program expands home ownership opportunities ^"^^tTTATTn^^
for low-income Marylanders. By virtue of its REHAB1L11 A 11UN fkocjkam

funding source—general obligation bonds and ap-
propriations, and a revolving fund from prior

loans under the Program—it diners from the oth- The Maryland Housing Rehabilitation Program
er single-family programs. Outreach agents make (MHRP) is designed to preserve the State's stock
the Program accessible in each region of the State, of existing housing by making direct, low-interest
Loans have been made in every county and the loans available to limited-income homeowners for
City of Baltimore (Code 1957, Art. 41B, sees. use in repair and renovation. MHRP also makes
2-401 through 2-409; Code Financial Institutions direct loans available to the owners of apartment
Article, sec. 13-310). buildings of up to twenty units and commercial

properties. Under the requirements of the Pro-

The Home Ownership Development Program gram, recipients of loans for the renovation of
(HDP) was first funded in 1979. It is the only sin- rental properties must make at least two-thirds of
gle-family program geared to stimulate new hous- the units available to low-income tenants. Autho-
ing construction. HDP is funded through the sale rized by the General Assembly in 1975, MHRP is
of tax-exempt revenue bonds. Funds are designat- funded by State general obligation bonds and by
ed for newly constructed homes in approved sub- repayments of principal and interest on outstand-
divisions. ing loans.