HARRY HUGHES, Governor

2945

A need exists for mortgage credit to be made -available for new
housing construction and for rehabilitating existing housing
because many purchasers and owners of housing are unable to
afford mortgage credit at the market rate of interest or obtain
mortgage credit because the mortgage credit market is severely
restricted. A need exists for the acquisition and construction
of continuing care facilities at the least cost to the users of
those facilities. A need exists for the construction and
rehabilitation of such housing and continuing care facilities and
the expenditure of public resources and assistance meet the needs
and are in the public interest. IN ADDITION, THERE ARE MANY
FAMILIES LIVING IN EXISTING HOUSING WHICH, WHILE DECENT AND SAFE,
IS INADEQUATE FOR THE SIZE OF THE FAMILY. SOME OF THOSE FAMILIES
COULD AFFORD TO PURCHASE NEW HOUSING IF THEIR EXISTING HOME COULD
BE SOLD TO SMALLER FAMILIES FOR WHOM THE HOME WOULD BE MORE
ADEQUATE. IN MANY CASES, PROSPECTIVE PURCHASERS OF THESE
EXISTING HOMES WOULD BE FIRST-TIME BUYERS, WHO FIND IT DIFFICULT
OR IMPOSSIBLE TO AFFORD NEWLY CONSTRUCTED HOUSING BECAUSE THEY DO
NOT HAVE AN EQUITY INTEREST IN THEIR PRESENT HOUSING TO AID IN
THE FINANCING OF A HOME PURCHASE. IT IS, THEREFORE, IN THE
PUBLIC INTEREST TO ASSIST FIRST-TIME HOME BUYERS TO ACQUIRE
EXISTING HOUSING AS WELL AS NEWLY CONSTRUCTED OR REHABILITATED
HOUSING. SUCH ASSISTANCE WILL DIRECTLY ASSIST NONHOMEOWNERS TO
ACQUIRE HOUSING AND HOMEOWNERS TO ACQUIRE MORE ADEQUATE HOUSING,
AND WILL STIMULATE THE PRIVATE SECTOR PRODUCTION OF NEW HOUSING.
Accordingly, the provisions of this section are declared as a
matter of legislative determination to create a sound housing
stock, contribute towards a balanced economy, promote the health,
welfare and safety of the residents and therefore be valid public
purposes.

(f) With the approval of the county governing body, the
Housing Authority of Prince George's County within its area of
operation also has the following powers:

(1)  To make construction loans and long-term mortgage
loans to any person, firm, partnership, association, joint
venture, or private or public corporation to produce housing
under the provisions of this section[.];

(2)  To purchase and to insure mortgages secured by
such housing[.];

(3)  To finance any housing, housing rehabilitation,
housing project, or continuing care facility authorized by this
section by issuing and selling such types of bonds as it may
determine, including bonds on which the principal and interest
are payable: (i) exclusively from the income and revenues of the
housing project or continuing care facility financed with the
proceeds of such bonds, or with such proceeds together with a
grant from the federal government in aid of such projects; (ii)
exclusively from the income and revenues of certain designated
housing projects whether or not they were financed in whole or in
part with the proceeds of such bonds; or (iii) from its revenues
generally. Any of such bonds may be secured additionally by