Ch. 311

LAWS OF MARYLAND

rehabilitation. The General Assembly finds and declares that it
is in the public interest of the citizens of this State to reduce
the consumption of energy and to increase the utilization of
solar energy by promoting energy conservation projects and solar
energy projects. The General Assembly finds, as a consequence
thereof, this goal can be assisted by the provision of insurance
for loans made by qualified lending institutions for, or bonds or
notes issued to finance, the energy conservation and solar energy
projects. For the purposes of this section, the terms "energy
conservation project" and "solar, energy project" have the
meanings stated under § [11-303] 2-203 of [Article 41] THIS
ARTICLE. In furtherance of such State interest, there is
established a Maryland Housing Fund.

[11-701.]

[(b)] 3-202. The Department [of Economic and Community
Development] shall manage and supervise the Maryland Housing
Fund. The fund shall be deposited with the State Treasurer to be
held in such banks as he deems proper and shall be accounted for
by the State Comptroller in a special account known as the
"Maryland Housing Fund". The fund shall be invested and
reinvested in the same manner as other State funds. The funds
shall be used to insure mortgages accepted by the Department
under the provisions of this [subheading] SUBTITLE, or to insure
bonds or notes issued to finance any project that is eligible for
insurance under the provisions of this [section] SUBTITLE. The
fund shall be managed in a manner which maximizes assistance to
local jurisdictions in insuring mortgages under the provisions of
this section.

[(c)] 3-203. The Department may insure upon such terms as
it may prescribe any mortgage offered or any bonds or notes
issued which are eligible for insurance under the provisions of
this [section] SUBTITLE. For the purposes of this section, the
term "mortgage" includes loans to finance or refinance the
purchase of stock or membership or to rehabilitate units in a
cooperative ownership housing corporation, and the term "housing"
includes any ancillary commercial or other facilities that are
related and incidental to the housing and would support the
housing. Fees shall be established for this insurance in an
amount calculated to cover administrative costs for this program
as well as payments made where defaults on mortgages, bonds or
notes cause insured losses to the lenders', bondholders or
noteholders. For any property acquired by the Department through
foreclosure or pursuant to any other payment in settlement for a
claim for loss, the Department may make a mortgage loan to assist
in the disposition of the property."

[(d)] 3-204. The Department shall promulgate such standards
for the eligibility of insurance as are reasonable to provide
that the insurance shall aid in the financing of (1) the
purchase, construction, or rehabilitation as defined in §

- 1754 -