HARRY HUGHES, Governor

3899

BY ANNE ARUNDEL COUNTY FOR OWNER OCCUPANCY RESIDENTIAL
MORTGAGE LOANS FOR LOW AND MIDDLE INCOME INDIVIDUALS AS
WOULD PERMIT, THE INTEREST ON SAID BONDS TO BE EXEMPT FROM
FEDERAL INCOME TAXATION PURSUANT TO § 103A OF THE INTERNAL

REVENUE CODE OF 1954, AS AMENDED. IN THIS EVENT, THE

REVENUE BONDS SHALL BE REPAYABLE SOLELY FROM THE REVENUE
DERIVED FROM LOAN REPAYMENTS SECURED BY MORTGAGES ACQUIRED
UNDER THE PROGRAM AND THE PROVISIONS OF THE OTHER SECTIONS
OF THIS SUBHEADING APPLY EXCEPT THAT THESE PROCEDURES SHALL
CONTEMPLATE AND AUTHORIZE A TRANSACTION IN THE FORM OF THE
MORTGAGE LOAN PROGRAM. PROVISIONS OF OTHER SECTIONS OF THIS
SUBHEADING WHICH ARE INCOMPATIBLE WITH THE TRANSACTION,
INCLUDING REQUIREMENTS OF A SPECIFIC DESCRIPTION OF THE
INDIVIDUAL MORTGAGE LOANS TO BE ACQUIRED AND A LETTER OF
INTENT OR SIMILAR AGREEMENT AS DESCRIBED IN § 266B OF THIS
SUBHEADING, DO NOT APPLY. ANY AGREEMENT OR CONTRACT WITH
RESPECT TO THE MORTGAGE LOAN PROGRAM MAY INCLUDE SUCH
PROVISIONS AS ANNE ARUNDEL COUNTY MAY DEEM APPROPRIATE TO
EFFECT THE FINANCING OF THE PROPOSED PROGRAM. A TRANSACTION
UNDER THIS SECTION DOES NOT CONSTITUTE A CAPITAL PROJECT
WITHIN THE MEANING OF ANY CHARTER OR STATUTORY PROVISION,

AND SHALL BE AUTHORIZED BY ORDINANCE OR RESOLUTION. ANNE

ARUNDEL COUNTY MAY PRESCRIBE THE LIMITS OF INCOME FOR
INDIVIDUALS ELIGIBLE FOR MORTGAGE LOANS UNDER THIS SECTION.

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, ANNE ARUNDEL, Kent,
Washington, and Worcester counties, 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 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
adversely affecting the economy of the counties and the
well-being of their 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