Ch. 101                                    LAWS OF MARYLAND

SECTION 1. BE IT. ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 44A - Housing Authorities

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 approved, or 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 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] $50,000,000. 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.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved April 14, 1987.

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