HARRY HUGHES, Governor

2587

Administrative Departments
Section 266 to be under the new subtitle "Residential
Mortgage Program for Code Home Rule Counties
and Municipalities"
Annotated Code of Maryland
(1978 Replacement Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 41 - Governor - Executive and
Administrative Departments

RESIDENTIAL MORTGAGE PROGRAM FOR CODE HOME RULE COUNTIES
AND MUNICIPALITIES

266.

(A) THE FOLLOWING LEGISLATIVE FINDINGS ARE MADE.

(1) AS A RESULT OF THE CONTINUING INCREASES IN:
THE COST OF CONSTRUCTION OR REHABILITATION, COUNTY TAXES,
HEATING AND ELECTRICITY EXPENSES, MAINTENANCE AND REPAIR
EXPENSES, INFLATION, THE COST OF LAND, THE COST OF ENERGY
CONSERVATION MEASURES, AND THE LEVELS OF BORROWING COSTS,
INCLUDING INTEREST, LOW AND MODERATE INCOME PERSONS AND
FAMILIES IN MANY AREAS WITHIN ALLEGANY, KENT, AND WORCESTER
COUNTIES AND MUNICIPALITIES, INCLUDING AREAS WHICH CONTAIN
PRESENTLY STABLE NEIGHBORHOODS AND MIDDLE CLASS RESIDENTIAL
HOUSING, ARE UNABLE TO PURCHASE, REHABILITATE, AND MAINTAIN
DECENT, SAFE, AND SANITARY HOUSING WHICH PROVIDES AN
OPPORTUNITY FOR HOME OWNERSHIP EITHER DIRECTLY OR THROUGH A
CONDOMINIUM OR COOPERATIVE FORM OF OWNERSHIP. THE INABILITY
OF FAMILIES TO PURCHASE AND HOLD HOUSING IN THE COUNTIES AND
MUNICIPALITIES RESULTS IN THE DECLINE OF NEW HOUSING AND IN
THE DECAY OF EXISTING HOUSING AND OF EXISTING NEIGHBORHOODS
WITH ATTENDANT INCREASES IN COSTS FOR WELFARE, POLICE AND
FIRE PROTECTION. THE DECLINE IN NEW HOUSING CONSTRUCTION,
TOGETHER WITH THE DECAY OF EXISTING HOUSING, HAS PRODUCED A
CRITICAL SHORTAGE OF ADEQUATE HOUSING IN THE COUNTIES AND
MUNICIPALITIES ADVERSELY AFFECTING THE ECONOMY OF THE
COUNTIES AND MUNICIPALITIES AND THE WELL-BEING OF ITS
RESIDENTS. PRIVATE ENTERPRISE WITHOUT THE ASSISTANCE OF THE
RESIDENTIAL MORTGAGE PROGRAM CONTEMPLATED BY THIS SECTION
CANNOT ACHIEVE THE CONSTRUCTION OR REHABILITATION OF
ADEQUATE HOUSING FOR PERSONS AND FAMILIES OF LOW OR MODERATE
INCOME. THE ALTERNATIVE OF FORCING FAMILIES TO LIVE IN
SUBSTANDARD HOUSING IS UNDERSIRABLE UNDESIRABLE SINCE IT
TENDS TO DECREASE THE INTEREST OF FAMILIES IN THEIR
COMMUNITIES, THE MAINTENANCE OF THEIR PROPERTY, AND THE
PRESERVATION OF THEIR NEIGHBORHOODS. THE COUNTIES AND
MUNICIPALITIES HAVE A BASIC PUBLIC INTEREST IN PROVIDING A
SUPPLEMENTAL SOURCE OF SINGLE-FAMILY RESIDENTIAL MORTGAGE
FUNDS AT A COST LOWER TO THE BORROWER THAN OTHERWISE
PREVAILING FOR RESIDENTIAL MORTGAGES FOR LOW AND MODERATE