3200

LAWS OF MARYLAND

Ch. 654

15.

(c) (1) Notwithstanding any other provision of this
section, Montgomery County may provide by local law for the
guarantee by Montgomery County of the principal and interest on
bonds issued by the Housing Opportunities Commission of
Montgomery County to finance the acquisition, provision,
development, or rehabilitation of housing at rental rates and
prices not being offered in adequate quantity by the private
sector, or to finance in whole or in part mortgage loans secured
by such housing and fund related reserves and costs approved
under the provisions of this section. Mortgage loans so financed
IN PART must be insured in part by the Federal Housing
Administration, the Maryland Housing Fund, a [federal national
mortgage association] FEDERAL NATIONAL MORTGAGE ASSOCIATION
APPROVED, or [federal home loan mortgage corporation] FEDERAL
HOME LOAN MORTGAGE CORPORATION, approved private mortgage insurer
which is authorized to do business in the State of Maryland, or
by any combination of such insurers. The Housing Opportunities
Commission shall adhere to the terms and conditions imposed by
the county government in providing the guarantee[, or] ON any
bonds ISSUED pursuant to this section. Where such guaranteed
revenue bonds will finance the total cost of such housing, the
Housing Opportunities Commission shall also adhere to any
requirements imposed BY THE COUNTY GOVERNMENT after the issuance
of the bonds to assure or protect the financial solvency of the
project. The total principal of the bonds guaranteed under this
authority may not exceed $25,000,000. THE BONDS AUTHORIZED TO BE
GUARANTEED BY THIS SECTION ARE SUBJECT TO THE PROVISIONS OF
SECTION 312 OF THE MONTGOMERY COUNTY CHARTER, EXCEPT AS FOLLOWS:
(I) THE GUARANTEED BONDS MAY BE STRUCTURED WITH SUBSTANTIALLY
LEVEL DEBT SERVICE PAYMENTS, AND WITH INTEREST ONLY PAYMENTS
DURING THE PROJECTED PERIOD FOR CONSTRUCTION OR REHABILITATION OF
THE HOUSING PROJECT FINANCED WITH BONDS ISSUED PURSUANT TO THIS
SECTION; (II) THE GUARANTEED BONDS SHALL BE ISSUED ON A SERIAL
MATURITY PLAN, PROVIDED THAT IF REQUIRED FOR MARKET ACCEPTANCE
AND APPROVED BY THE COUNTY GOVERNMENT IN THE MANNER SPECIFIED BY
THE COUNTY COUNCIL RESOLUTION ADOPTED PURSUANT TO THE APPROVAL
PROCESS SET FORTH IN PARAGRAPH (3)(II) OF THIS SECTION, A PORTION
OF EACH ISSUE MAY BE SOLD AS TERM BONDS STRUCTURED WITH MANDATORY
SINKING FUND PAYMENTS.

(4) Notwithstanding any other provisions of this
section, upon request of the Housing Opportunities Commission,
Montgomery County may allocate by local law a portion of the
total amount of the guarantee authorized by this section, in an
amount to be determined by such local law. The County Executive
may from time to time approve by executive order the utilization
of all or a part of such allocation as a bond guarantee, in which
event no additional approval of the bond guarantee by the County
Council shall be required. Pursuant to such executive order, the
Housing Opportunities Commission may issue bonds guaranteed by
all or a part of the allocation, the proceeds of which bonds
shall be used to finance in whole or in part mortgage loans