3900                                   LAWS OF MARYLAND                                 Ch. 761

forcing families to live in substandard housing is
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 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
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 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, ANNE ARUNDEL, 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, ANNE ARUNDEL,
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.

(c) In this section: