HARRY HUGHES, Governor                             1019

(v) Detailed estimates of operating cost
and debt service;

(vi) Schedules of reserves for
depreciation and major maintenance;

(vii) Rent schedule showing how, after
allowance for vacancies, the revenues are expected to cover
operating cost, debt service and capital cost, and reserves
for depreciation and major maintenance;

(viii) Separate schedule showing the cost,
benefit, and effect on rent schedules of additional
safeguards to assure solvency of the project. These
schedules would address such devices as mortgage insurance
and debt service reserves, and would reflect the housing
opportunities commission's recommendation for it or use of
the devices;

(ix) Description of the terms and
conditions for construction of the project, including any
safeguards against construction default and the conditions
under which construction financing is to be provided by the
housing opportunities commission; and

(x) Description of the accounting system
for recording and controlling expenditures of bond funds,
debt service, operating cost, reserves and revenues. Each
project shall be established as an independent accounting
entity with respect to revenues, expenditures, debt service,
reserves, etc.

(3) The local law implementing this authority
shall provide procedures for review and approval of the
issuance of bonds guaranteed by the county government,
including, BUT NOT LIMITED TO, the following:

(i) The county executive shall consider
and comment on the feasibility of the proposed bond
guarantee and each housing project contemplated by the
proposed bond guarantee, and recommend whether the proposed
bond guarantee should be approved and any terms and
conditions advisable for the approval. The county
executive's recommendation shall include a statement that
the proposed project is fully self supporting. This
statement of feasibility shall be supported by an acceptable
independent feasibility study OR STUDIES furnished by the
housing opportunities commission. [This] THE FURNISHINGS
FURNISHING OF THE independent feasibility study OR STUDIES
[will not be required] MAY BE WAIVED BY THE COUNTY EXECUTIVE
in the case of projects financed, insured, or assisted by
the State or federal government.

(ii) After considering the recommendations
of the county executive and after public hearing, the County
Council shall approve, approve with modifications, or