WILLIAM DONALD SCHAEFER, Governor                   Ch. 311

[(6)] (F) Prepayments of principal of a loan may be
used to make additional loans under the program. Any moneys not
so used within 12 months from the date of the receipt of such
prepayment shall be applied as provided in [paragraph (5) of this
subsection] SUBSECTION (E) OF THIS SECTION.

[(7)] (G) The Department shall report to the Governor
and, subject to § 2-1312 of the State Government Article, to the
General Assembly before January 1 of each year the financial
status of the program and a summary of its operations for the
preceding fiscal year.

[(8)] (H) Each of the special loan programs shall
operate with moneys appropriated by the State to the fund
specifically for each such program, and such other moneys or
grant funds available to the Department for the special loan
programs. In the event the number of applications which qualify
for a special loan under the requirements of a particular special
loan program are insufficient to commit all moneys appropriated
to the program within 6 months of the appropriation, then the
Department may reallocate any remaining moneys appropriated to
that program to any other special loan program or the Maryland
Housing Rehabilitation Program.

SUBTITLE 4. RESIDENTIAL MORTGAGE PROGRAM

[11-703.] 2-401.

(a) [The following legislative findings are made.] THE
GENERAL ASSEMBLY MAKES THE LEGISLATIVE FINDINGS STATED IN THIS
SECTION.

[(1)] (B) 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, Calvert, Frederick, Howard, 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

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