Ch. 97

LAWS OF MARYLAND

(4)  The partnership rental housing facilities
shall be occupied by lower income households.

(5)  Lower income households occupying
partnership rental housing shall contribute services to enhance
and maintain the property or community in a manner deemed
acceptable to the local government.

(6)  No repayment of principal or interest on
the bonds used for acquisition, new construction, reconstruction,
renovation, or rehabilitation cost will be required unless the
housing ceases to be operated in accordance with the covenants
contained in regulatory agreements between the Community
Development Administration and the local government.

(e) (1) Any local government shall have the power to
participate in the Partnership Rental Housing Program, including
the powers to develop, acquire, improve, own, operate, and manage
rental housing, enter into a loan which does not pledge the full
faith and credit of the local government (including the powers to
mortgage, pledge and grant a security interest in any real or
personal property related to a particular project), and to do all
things necessary or convenient to its participation. Any such
borrowing shall be secured by the property or revenues derived
from such property.

(2) Any local government shall have the power
to enter into a loan under the Partnership Rental Housing Program
(including the powers to mortgage, pledge and grant a security
interest in any real or personal property related to a particular

project) (i) without regard to any limitations regarding

indebtedness set forth in its charter to other applicable public
local or public general law, and (ii) without complying with any
procedures regarding indebtedness set forth in its charter or
other applicable public local or public general law that would
otherwise be required.

(3) (2) With respect to any rental housing
financed by the Partnership Rental Housing Program that is owned
or managed by any housing authority authorized under Article 44A,
the provisions of this subtitle shall supersede the provisions of
Sections 9 and 10 of Article 44A and any otherwise applicable
restrictions on tenant income provided for in Articles 44A or
44B.

(4) (3) An annual State tax is imposed on all
assessable property in the State in rate and amount sufficient to
pay the principal of and interest on the bonds, as and when due
and until paid in full. The principal shall be discharged within
15 years after the date of issue of the bonds.

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