WILLIAM DONALD SCHAEFER, Governor                   Ch. 311

public purpose. The enactment of this section is declared to be
in the public interest.

[(b)] 2-402. It is the declared legislative purpose to aid
in remedying these conditions, to promote the expansion of the
supply of funds at lower borrowing costs than those otherwise
prevailing for residential mortgages for low and moderate income
persons and families and thereby help alleviate the shortage of
adequate housing and preserve existing housing and neighborhoods.

[(c)] 2-403. In this [section] SUBTITLE:

(1)   "Low and moderate income persons and families"
means persons and families determined by a county to lack the
financial ability to pay prices or rentals sufficient to induce
private enterprise in the county to build a sufficient supply of
adequate, safe, and sanitary dwellings without the special
assistance afforded by this [section.] SUBTITLE, AND

(2)  "County" means a county that has adopted the
optional powers of home rule provided under Article XI-F of the
Constitution and Anne Arundel, Calvert, Frederick, Howard, and
Washington counties.

[(d)] 2-204. In order to better accomplish the foregoing
purposes, in addition to whatever other powers it may have and
notwithstanding any limitation of law, any county may borrow
money by issuing revenue bonds, notes, or other evidences of
obligation for the purpose of making funds available. These
funds shall be made available only through mortgage lending
institutions, by forward commitment mortgage purchase, existing
mortgage purchase, loans to lenders, revolving mortgage fund, or
otherwise in any manner deemed appropriate by the legislative
body for residential mortgage loans to low and moderate income
persons and families, and, in connection with any program, may
collect from a borrower participating in the program
participation charges deemed necessary or appropriate by the
legislative body to cover the loan processing, loan
administration, mortgage insurance, and other costs and expenses
of the program.

[(e)] 2-405. An ordinance or resolution shall be adopted by
the legislative body of the county specifying the proposed
residential mortgage program, the amount of bonds to be issued,
the rate or rates of interest the bonds are to bear, or the
method of determining the rate or rates, and other provisions not
inconsistent with this [section] SUBTITLE as shall be determined
by the legislative body to be necessary or desirable to effect
the financing of the mortgage loans.

[(f) (1)] 2-406.(A) In the ordinance or resolution
authorizing the issuance of bonds, the county shall make findings
as to the appropriate ranges of income of low and moderate income

- 1745 -