1020

LAWS OF MARYLAND

Ch. 231

disapprove the proposed bond guarantee, and specify the
terms and conditions for any approved bond guarantee. The
terms and conditions shall include the maximum interest
payable, the terms of the bond issue, the purposes for which
the bond funds may be expended, and the method of
controlling the expenditures of the bond funds and the
revenues and expenditures for projects financed by the bond
funds.

(iii) The approval of the bond guarantee
by the County Council shall be submitted to the county
executive within 3 days for concurrence. If the county
executive does not communicate [his] disapproval and reasons
for the disapproval to the Council within 10 days after
receipt, the Council's approval shall stand. If the county
executive disapproves, the Council may override that
disapproval by vote of at least five members.

(iv) The approval of the bond guarantee
may be rescinded by RESOLUTION OF the Council ADOPTED at any
time up PRIOR to the advertisement of the bonds OR IN THE
CASE OF A PRIVATE SALE, THE SALE OF THE BONDS OR THE
DISTRIBUTION OF A RELATED OFFERING CIRCULAR, WHICHEVER SHALL
FIRST OCCUR.

(4) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
SECTION, UPON REQUEST OF THE HOUSING OPPORTUNITIES
COMMISSION, MONTGOMERY COUNTY MAY ALLOCATE BY LOCAL LAW A
PORTION OF THE TOTAL AMOUNT OF THE GUARANTEE AUTHORIZED BY
THIS SECTION, IN AN AMOUNT TO BE DETERMINED BY SUCH LOCAL
LAW. THE COUNTY EXECUTIVE MAY FROM TIME TO TIME APPROVE BY
EXECUTIVE ORDER THE UTILIZATION OF ALL OR A PART OF SUCH
ALLOCATION AS A BOND GUARANTEE, IN WHICH EVENT NO ADDITIONAL
APPROVAL OF THE BOND GUARANTEE BY THE COUNTY COUNCIL SHALL
BE REQUIRED. PURSUANT TO SUCH EXECUTIVE ORDER, THE HOUSING
OPPORTUNITIES COMMISSION MAY ISSUE BONDS GUARANTEED BY ALL
OR A PART OF THE ALLOCATION, THE PROCEEDS OF WHICH BONDS
SHALL BE USED TO FINANCE IN WHOLE OR IN PART MORTGAGE LOANS
SECURED BY HOUSING AND TO FUND RELATED RESERVES AND COSTS
APPROVED UNDER THE PROVISIONS OF THIS SECTION. MORTGAGE
LOANS SO FINANCED MUST BE INSURED IN PART BY THE FEDERAL
HOUSING ADMINISTRATION, THE MARYLAND HOUSING FUND, OR A
PRIVATE MORTGAGE INSURER WHICH IS APPROVED BY THE FEDERAL
NATIONAL MORTGAGE ASSOCIATION OR THE FEDERAL NATIONAL
MORTGAGE LOAN CORPORATION AND WHICH IS AUTHORIZED TO DO
BUSINESS IN THE STATE OF MARYLAND, OR BY ANY COMBINATION OF
SUCH INSURERS.

[(4)] (5) The housing opportunities commission
shall provide to the Montgomery County government annual
audits performed by an independent certified public
accountant licensed in the State of Maryland, on projects
financed by bonds guaranteed by Montgomery County. In
addition to providing appropriate certified financial
statements, the independent auditor shall provide a
management letter on the financial soundness of the
projects. Notwithstanding the foregoing independent audits,