5473
MONTGOMERY COUNTY

obsolescence and to prevent their recurrence.

(a)    Construction to be carried out under this
program shall be only that necessary to bring the
property into full compliance with all applicable state
and county statutes, codes and ordinances. Construction
shall be limited to facilities reasonably necessary to
accommodate the present occupancy and usage.

(b)     The purpose of construction is to eliminate
existing conditions of deterioration or obsolescence and
to prevent their recurrence. All construction shall be
carried out in a workmanlike manner and be of such
quality as to be durable and long lasting and in
compliance with applicable state and county statutes,
codes and ordinances.

(c)     In the case of a new home replacing a trailer
coach, the trailer coach must be removed from the
property within 30 days of completion of the house unless
the trailer coach can be situated on the property in
compliance with all applicable state and county statutes,
codes and ordinances.

Sec. 3. Section 56—5, title "Financing
requirements," of Chapter 56, title "Urban Renewal and
Community Development," of the Montgomery County Code
1972, as amended, be and it is hereby repealed and
re—enacted, with amendments, to read as follows:

56—5. Financing requirements.

The loan proceeds available under this program shall
be limited to those cases where the property owners'
income and net worth precludes home construction
financing through normal banking or other financial
channels. Where loans are made available from the
homeowners' construction loan fund, they shall be subject
to the following requirements and limitations:

(a)    Loans shall be made only to property owners
whose family income meets the eligibility limits for
continued occupancy of low—rent public housing, as these
limits are established from time to time by the housing
authority of the county.

(b)    Loans shall carry an interest rate of from one
to three percent per annum. Repayment provisions shall
be based upon the financial circumstances of the
individual property owner. In determining the initial
rate of interest the property owner shall not be expected
to allocate, based on a loan term of forty—five years,
more than twenty—five percent of his family gross income
to the monthly costs of shelter (principal, interest,