Montgomery County                                2369

Whereas, the County Council of Montgomery County, Maryland is
committed by law to the enforcement of housing and building codes; and

Whereas, the County Council believes an effective codes enforcement
program must consider human needs in its implementation; and

Whereas, the County Council of Montgomery County, Maryland
wishes to encourage the retention of home ownership by families of low
income in the County; and

Whereas, the County Council believes it to be in the public interest
to retain a population with a full range of income levels to meet the eco-
nomic needs of the County; and

Whereas, the County Council believes that the establishment of a
fund which has as its objective the making of low-interest direct con-
struction loans to homeowners of low income whose homes cannot be
rehabilitated to meet applicable County Code requirements would be of
substantial benefit in encouraging the retention of home ownership by low
income homeowners; and

Whereas, it is the intention of the County Council that such a
loan fund provide a supplement and not a substitute to the other means
available for financing home construction.

Now, therefore, be it enacted by the County Council for Montgomery
County, Maryland, that—

Section 1. Chapter 2 of the Montgomery County Code 1965, as
amended titled "Administration," is hereby amended by adding a new
Section 128C, titled "Homeowners' Construction Loan Fund," to read as
follows:

The County Council is hereby empowered and authorized by resolu-
tion to establish and thereafter to maintain a special fund to be known
as the "Homeowners' Construction Loan Fund" for the purpose of making
direct construction loans to homeowners of low income whose present
homes cannot be rehabilitated to conform with applicable County Code
requirements to finance construction of new homes, including prefab-
ricated homes, provided such loans are not available on comparable terms
and conditions from other sources. The Council shall prescribe from time
to time such terms, conditions, rules and regulations as it shall deem
appropriate for the making of such loans and the administration of the
Fund, including the right to contract with private organizations for the
administration of said Fund. Provided, however, that the loans available
under this Fund shall be limited to those individuals whose income and
net worth preclude home construction financing through normal banking
or other financial channels. In determining the availability to the property
owner of adequate commercial financing, the following shall be taken into
consideration:

a.    The present condition and value of the property.

b.    Real estate owned by the borrower that would be a source of
funds either by sale or a commercial loan.

c.    Total net income of the borrower and members of his family.
No loan shall be made to any property owner where the resources of a.
and b. above are adequate for obtaining financing of the home construc-
tion from other sources.