2588

LAWS OF MARYLAND

Ch. 748

INCOME PERSONS AND FAMILIES AND A BASIC INTEREST IN
STIMULATING A STEADY FLOW OF FUNDS FOR RESIDENTIAL HOUSING
FOR LOW AND MODERATE INCOME PERSONS AND FAMILIES AND FOR LOW
AND MIDDLE CLASS RESIDENTIAL HOUSING IN ORDER TO ASSIST IN
MAINTAINING A WELL-BALANCED SOCIETY, MAINTAINING EXISTING
HOUSING, PRESERVING ESTABLISHED NEIGHBORHOODS, AND
MAINTAINING A SOUND TAX BASE.

(2)  A LARGE NUMBER OF COUNTY AND MUNICIPAL
RESIDENTS HAVE BEEN AND WILL BE SUBJECT TO HARDSHIP IN
FINDING DECENT, SAFE, AND SANITARY HOUSING UNLESS NEW
FACILITIES ARE CONSTRUCTED AND EXISTING HOUSING, WHERE
APPROPRIATE, IS REHABILITATED. UNLESS THE SUPPLY OF HOUSING
AND THE ABILITY OF LOW AND MODERATE INCOME PERSONS AND
FAMILIES TO OBTAIN MORTGAGE FINANCING IS INCREASED
SIGNIFICANTLY AND EXPEDITIOUSLY, A LARGE NUMBER OF RESIDENTS
OF ALLEGANY, KENT, AND WORCESTER COUNTIES AND MUNICIPALITIES
MAY BE COMPELLED TO LIVE IN UNSANITARY, OVERCROWDED, OR
UNSAFE CONDITIONS TO THE DETRIMENT OF THE HEALTH, WELFARE,
AND WELL-BEING OF THESE PERSONS AND OF THE WHOLE COMMUNITY
OF WHICH THEY ARE A PART. BY INCREASING THE HOUSING SUPPLY
OF THE COUNTIES AND MUNICIPALITIES AND THE ABILITY OF LOW
AND MODERATE INCOME PERSONS AND FAMILIES TO OBTAIN MORTGAGE
FINANCING, THE CLEARANCE, REPLANNING, DEVELOPMENT AND
REDEVELOPMENT OF BLIGHTED AREAS WILL BE AIDED, THE CRITICAL
SHORTAGE OF ADEQUATE HOUSING WILL BE AMELIORATED, AND THE
ABILITY TO PRESERVE AND UTILIZE EXISTING HOUSING AND
NEIGHBORHOODS WILL BE GREATLY ENHANCED.

(3)  A MAJOR CAUSE OF THIS HOUSING CRISIS IS THE
LACK OF FUNDS AT BORROWING COSTS WHICH ARE AT A LEVEL
WHEREBY LOW AND MODERATE INCOME PERSONS AND FAMILIES CAN
AFFORD TO OWN AND MAINTAIN DECENT, SAFE, AND SANITARY
HOUSING. AN ADDITIONAL MAJOR CAUSE OF A HOUSING CRISIS IS
THE LACK OF FUNDS AVAILABLE TO FINANCE HOUSING BY THE
PRIVATE MORTGAGE LENDING INSTITUTIONS OF THE STATE. THIS
LACK OF FUNDS HAS FRUSTRATED THE MAINTENANCE, SALE, AND
PURCHASE OF EXISTING RESIDENCES IN ALLEGANY, KENT, AND
WORCESTER COUNTIES AND MUNICIPALITIES.

(4)  THE AUTHORITY AND POWERS CONFERRED UNDER
THIS SECTION AND THE EXPENDITURE OF PUBLIC MONEYS NECESSARY
AND APPROPRIATE TO CARRY OUT A RESIDENTIAL MORTGAGE PROGRAM
AS CONTEMPLATED IN THIS SECTION, CONSTITUTE THE SERVING OF A
VALID PUBLIC PURPOSE. THE ENACTMENT OF THIS SECTION IS
DECLARED TO BE IN THE PUBLIC INTEREST.

(B)  IT IS THE DECLARED LEGISLATIVE PURPOSE TO AID IN
REMEDYING THESE CONDITIONS, TO PROMOTE THE EXPANSION OF THE
SUPPLY OF FUNDS AT LOWER BORROWING COSTS THAN THOSE
OTHERWISE PREVAILING FOR RESIDENTIAL MORTGAGES FOR LOW AND
MODERATE INCOME PERSONS AND FAMILIES AND THEREBY HELP
ALLEVIATE THE SHORTAGE OF ADEQUATE HOUSING AND PRESERVE
EXISTING HOUSING AND NEIGHBORHOODS.

(C)  IN THIS SECTION: