WILLIAM DONALD SCHAEFER, Governor                      Ch. 96

offer a right of first purchase to certain persons which
shall include certain terms; establishing certain conditions
and rights to accept the purchase offer; requiring the
purchaser of an assisted project under a right of first
purchase to record a covenant running with the land which
restricts the use of the property in a certain manner;
authorizing the Secretary of Housing and Community
Development to exempt certain persons from certain
requirements of this Act under certain circumstances;
permitting rights of first purchase to be assigned only to
parties having such rights under this Act; prohibiting
tenants and owners of assisted projects from taking certain
actions; establishing certain penalties and remedies for
failure to comply with the provisions of this Act; requiring
the settlement agent for a closing involving a protected
action to file a written statement of the owner's compliance
with this Act; providing that certain violations are within
the scope of the enforcement powers of the Division of
Consumer Protection of the Office of the Attorney General;
making provisions of this Act severable; providing for the
application of this Act; and generally relating to federally
assisted housing in this State.

BY adding to

Article 83B - Department of Housing and Community

Development
Section 9-101 through 9-114 to be under the new title "Title

9. Assisted Housing Preservation Act"
Annotated Code of Maryland
(1988 Replacement Volume)

Preamble

WHEREAS, There is a serious shortage of decent, safe,
sanitary, and affordable rental units available to low and
moderate income households in Maryland; and the inadequacy in the
supply of decent, safe, sanitary, and affordable rental housing
leads to homelessness and endangers the public health and safety,
and the general welfare; and

WHEREAS, During the next decade, thousands of federally
subsidized housing units in Maryland are in danger of becoming
unaffordable to low and moderate income households due to the
prepayment of subsidized mortgages and the termination of rental
subsidy agreements; and these actions will result in the loss of
low and moderate income rental requirements for the assisted
projects; and the units at risk include those insured or assisted
under §§ 221(d)(3), 202 and 236(a) and (b) of the National
Housing Act, low income housing units constructed or
rehabilitated with assistance under § 8 of the United States

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