WILLIAM DONALD SCHAEFER, Governor Ch. 504

Article 41B - Department of Housing and Community

Development
Section 2-601 through 2-607, inclusive, to be under the new

subtitle "Subtitle 6. Closing Costs Assistance

Settlement Expense Loan Program"
Annotated Code of Maryland
(1986 Replacement Volume and 1987 Supplement)

Preamble

WHEREAS, The need for affordable housing in Maryland was
documented by the Housing Policy Commission Report to the
Governor and the General Assembly in 1985; and

WHEREAS, The same report documented the need to ensure that
the settlement costs incurred by the homebuyer at the time of
purchase not be prohibitive; and

WHEREAS, In 1988, Maryland still ranks among the highest
closing cost areas in the nation, making it difficult for many
potential homebuyers in Maryland to purchase a home because they
lack sufficient cash for the down payment plus closing costs; and

WHEREAS, The General Assembly is particularly concerned
about low and moderate income first-time homebuyers, many of whom
can find an affordable home, can manage the monthly payments for
principal, interest, insurance, taxes, and maintenance but due to
the high cost of living are unable to save sufficient money for
the up-front closing costs; and

WHEREAS, For 4 years, Baltimore City has successfully
offered a program to first-time, limited income homebuyers that
helps them finance settlement costs on the purchase of their
home; and

WHEREAS, The General Assembly endorses the concept of a
Settlement Expense Loan Program that makes funds available to
first-time Maryland homebuyers with limited incomes; now,
therefore,

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

Article 41B - Department of Housing and Community Development

SUBTITLE 6. CLOSING COSTS ASSISTANCE SETTLEMENT
EXPENSE LOAN PROGRAM

2-601.

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

- 3427 -