The county council hereby declares it to be the purpose of this chapter to support, in whole or in part, certain bona fide nonprofit service organizations, operating within the confines of Montgomery County, Maryland, by providing thereto financial assistance where such organization applies therefor and demonstrates to the satisfaction of the chief administrative officer or his authorized representative that it provides services to citizens who might otherwise be served by the county government, that the loan or grant is necessary to ensure the continuation of such services by that organization to such citizens and that there is no known organization capable of providing similar services.

Any bona fide nonprofit service organization which operates within the confines of Montgomery County may apply to the chief administrative officer for financial assistance where such organization demonstrates to his satisfaction that: (a) The organization provides services deemed to be of a critical nature for citizens of Montgomery County which might otherwise be provided in part or in whole by the county government; (b) Financial assistance is necessary to ensure the continued operation of the subject organization; (c) No similar organization exists in Montgomery County which would provide similar service for the same clientele should the organization cease to exist and it can demonstrate that it has made a good faith effort, which has been unsuccessful, to obtain other sources of funding; and (d) That it has submitted a financial recovery plan which does not require additional financial assistance from the county government. The chief administrative officer, at his discretion, may conduct a public hearing in order to receive information relative to his determination.

Where the chief administrative officer certifies that financial assistance would serve a public purpose in accordance with section 23B-2, the county executive or his designee shall thereupon recommend the amount and form of the assistance to the county council for adoption in the same manner as any appropriation. If the chief administrative officer does not support the funding of a request which has been submitted, a report stating the requested amount, and the rationale for disapproval, shall be forwarded to the county council for its review and any action desired by the council. Should the county council desire to provide financial assistance not otherwise recommended by the county executive or his designee to the nonprofit service organization, it may amend a budget currently before it or it may initiate an emergency appropriation, whichever is appropriate.

The county council, prior to the expenditure of any funds, shall schedule and hold a public hearing thereon, and may thereafter authorize the expenditure of public funds for the financial support of such organization. The public hearing shall be for the purpose of taking testimony as to the public purpose of such funding, the matters contained in section 23B-2, the stability of the applicant organization and such other matters deemed pertinent by the county council. The county council may amend the recommendation of the county executive or his designee as it deems appropriate and may require reimbursement from such organization if other funding for the same purpose becomes available.

Where the county council authorizes financial assistance, the chief administrative officer shall negotiate and execute a performance contract between the county and such organization in accordance with the resolution of the county council and the director of the department of finance shall cause such assistance to issue.