Ch. 127

1994 LAWS OF MARYLAND

(7)     It is reasonable to anticipate that:

(i) Additional State [or federal] subsidies will not be required for
long-term occupancy by households of lower income; and

(ii) Rental income, including any contribution to allow for more
affordable rents that is made under § 2-1107(b) of this subtitle, will be sufficient to pay
all operating costs of the project as well as build up a reserve account in an amount
adequate for the long-term maintenance and renovation of the project; and

(8)     For each partnership project subsequent to the first project undertaken
by a local government, the amount of the local contribution on a percentage basis to the'
project is greater than the local contribution on a percentage basis to the immediately
preceding partnership project undertaken by the local, government, unless the Secretary
determines that the local government:

(i) Currently is making substantial commitments to affordable
housing; or

(ii) Is at taxing capacity and does not have discretionary surplus funds.

2-1107.

(b) Local governments may elect to contribute local funds, INCLUDING LOCALLY
ADMINISTERED FEDERAL FUNDS AND FEDERAL RENTAL ASSISTANCE, in order to
allow for more affordable rents.

2-1108.                                                              '

The Department may establish:

(1)     Maximum amounts of funding which will be provided to individual
partnership rental housing units, any 1 project, or any local government;

(2)     A process for approving funding for projects that encourages a broad
geographic distribution of funds; and

(3)     The maximum length of time that a household may be permitted to
continue to occupy the partnership rental housing after it has reached an annual income
which exceeds the APPLICABLE CONTINUING OCCUPANCY income limits for households
of lower income.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

Approved May 2, 1994.

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