MARVIN MANDEL, Governor                        1261

erties or any interest therein that is planned, acquired, owned, con-
structed, reconstructed, rehabilitated or improved for the purpose of
providing housing accommodations for persons or families of low
and moderate income and such facilities as may be incidental or
appurtenant to such accommodations.

(7) (8) "Development cost." The sum total of all costs incurred by
the Authority in carrying out all works and undertakings which the
Authority deems reasonable and necessary for the construction of a
development. These shall include but are not necessarily limited to
the costs of all necessary studies, surveys, plans and specifications,
architectural, engineering or other special services, acquisition of
land and any buildings thereon, site preparation and development,
construction, reconstruction, rehabilitation, improvement and the ac-
quisition of such machinery and equipment as may be deemed neces-
sary in connection therewith (other than raw materials, work in
process or stock in trade); the necessary expenses incurred in con-
nection with initial occupancy of the development; an allocable por-
tion of the administrative and operating expenses of the Authority;
the cost of financing the development, including interest on bonds
and notes issued to finance the development from the date thereof
to the date when the Authority shall determine that the development
be deemed substantially occupied; and the cost of such other items,
including any indemnity and surety bonds and premiums on insur-
ance, legal fees, fees and expenses of trustees, depositories and pay-
ing agents for bonds and notes issued; and relocation costs, all as the
Authority shall deem necessary.

4. MARYLAND HOUSING AND COMMUNITY DEVELOP-
MENT AUTHORITY

(1)   There is hereby created a body politic and corporate to be
known as Maryland Housing and Community Development Authority.
The Authority is hereby constituted an instrumentality of the State
of Maryland, and the exercise by the Authority of the powers con-
ferred by this Article shall be deemed and held to be the perform-
ance of an essential governmental function of the State.

(2)   The membership of the Authority shall consist of seven di-
rectors appointed by the Governor, WITH THE ADVICE AND
CONSENT OF THE SENATE. From the seven directors the
Governor shall designate the chairman of the Authority who shall
serve at the pleasure of the Governor. The Governor may but is
not required to appoint as directors such department heads or cabi-
net officers as he deems appropriate. Contingent upon the establish-
ment of a State department, embracing the areas of housing, com-
munity and industrial development, the Governor shall appoint as
one of the seven directors for purposes of coordinating the programs
of that department and this Authority, the head of such depart-
ment. Two of the directors first appointed by the Governor shall
serve for ter