Ch. 625

LAWS OF MARYLAND

(1)  The Board of Public Works may borrow money and incur
indebtedness on behalf of the State of Maryland through a State
loan to be known as the Maryland Housing Fund Loan of 1986 in the
total principal amount of $3,000,000. This loan shall be
evidenced by the issuance, sale, and delivery of State general
obligation bonds authorized by a resolution of the Board of
Public Works and issued, sold, and delivered in accordance with
§§ 8-117 through 8-124 of the State Finance and Procurement
Article and Article 31, § 22 of the Code. THIS AUTHORIZATION OF
STATE DEBT SHALL EXTEND UNTIL JUNE 1, 1990.

(2)  The bonds to evidence this loan or installments of this
loan may be sold as a single issue, or may be consolidated and
sold as part of a single issue of bonds under § 8-122 of the
State Finance and Procurement Article.

(3)  The cash proceeds of the sale of the bonds shall be
paid to the Treasurer and first shall be applied to the payment
of the expenses of issuing, selling, and delivering the bonds,
unless funds for this purpose are otherwise provided, and then
shall be credited AND MAINTAINED on the books of the Comptroller,
TOGETHER WITH ALL (I) INTEREST EARNED AND NET GAINS REALIZED FROM
THE INVESTMENT AND REINVESTMENT THEREOF AND (II) REPAYMENTS OF
LOANS MADE WITH THE PROCEEDS OF THE BONDS, and expended, [on
approval by the Board of Public Works,] IN ACCORDANCE WITH
ARTICLE 41B, §§ 2-201 THROUGH 2-208, for the following public
purposes, including any applicable architects' and engineers'
fees: [to be added to the Maryland Housing Fund established by
Article 41, § 257K of the Code to be used by the Department of
Economic and Community Development for the purposes prescribed by
law for the Fund.] TO BE USED BY THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT IN COOPERATION WITH LOCAL GOVERNMENTS TO
IMPLEMENT RENTAL HOUSING DEMONSTRATION PROGRAMS OR PROJECTS THE
PARTNERSHIP RENTAL HOUSING PROGRAM AS A RENTAL HOUSING
DEMONSTRATION PROGRAM IN ACCORDANCE WITH ARTICLE 41B, § 2-204(5).

(A)  THE SECRETARY OF HOUSING AND COMMUNITY
DEVELOPMENT IS AUTHORIZED AND DIRECTED TO ADOPT RULES AND
REGULATIONS TO CARRY OUT THE INTENT OF THIS ACT.

(B)  THE FOLLOWING TERMS HAVE THE MEANINGS INDICATED:

(1) "DEVELOPMENT COSTS" MEANS THE COSTS
INCURRED FOR THE NEW CONSTRUCTION, RECONSTRUCTION, OR SUBSTANTIAL
REHABILITATION OF PARTNERSHIP RENTAL HOUSING, INCLUDING THE COSTS
OF:

(I)  NECESSARY STUDIES, SURVEYS, TESTS,
PLANS, AND SPECIFICATIONS;

(II)  ARCHITECTURAL, DESIGN, ENGINEERING,
AND OTHER SPECIAL SERVICES;

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