HARRY HUGHES, Governor

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[(e)](G) "Program" means the Home Financing Program.

(H) "REGION" MEANS AN AREA OF THE STATE COMPRISING ONE
OR MORE COUNTIES, ESTABLISHED BY THE DEPARTMENT.

13-306.

(d) The Department shall set:

(1)  Reasonable minimum requirements of
creditworthiness; and

(2)  Upper [income limits, which may include:

(i) A definition of "income";

(ii) Consideration of secondary sources of
income;

(iii) Consideration of dependent
allowances; and

(iv) Differentials that are based on
income statistics for geographical areas of this State.]

LIMITS ON ADJUSTED ANNUAL INCOME. THE LIMITS MAY NOT
EXCEED, BUT MAY BE LESS THAN, MEDIAN ANNUAL FAMILY INCOME
FOR THE COUNTY OR REGION WHERE THE HOME TO BE FINANCED IS
LOCATED.

13-307.

The Department periodically shall set a preferred
interest rate, [in an amount that will make the Program
self-supporting. In setting the preferred interest rate,
the Department shall consider:

(1)  Interest that this State pays on bonds that
are used to fund the Program;

(2)  Administrative expenses of the Program;

(3)  Possible losses; and

(4)  All of the other expenses of the Program.]
WHICH INTEREST RATE SHALL BE:

(1) AT LEAST SUFFICIENT TO COVER:

(I)  ALL ADMINISTRATIVE AND OTHER EXPENSES

OF THE PROGRAM;

(II)  REASONABLY EXPECTED LOSSES DUE TO
DEFAULTS ON LOANS; AND