862

LAWS OF MARYLAND

Ch. 70

(2)  A large number of county 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, WASHINGTON, and
Worcester counties 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 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,
WASHINGTON, and Worcester counties.

(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:

(1) "Low and moderate income persons and
families" means persons and families determined by a county
to lack the financial ability to pay prices or rentals
sufficient to induce private enterprise in the county to
build a sufficient supply of adequate, safe, and sanitary
dwellings without the special assistance afforded by this
section.