<section article="ghs" article_name="Housing and Community Development" number="12-101" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this Division II the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Area of operation” means the geographical area within which an authority is empowered to act.</text> </level> <level label="c"> <text>“Authority” means a public corporation created as a housing authority under this Division II.</text> </level> <level label="d"> <text>“Bond” includes a note, an interim certificate, a debenture, and any other obligation issued by an authority under this Division II.</text> </level> <level label="e"> <text>“Chief elected official” means:</text> <level label="1"> <text>the individual who exercises the office of the chief publicly elected executive official of the political subdivision; or</text> </level> <level label="2"> <text>in a political subdivision without a chief publicly elected executive official, the highest executive body.</text> </level> </level> <level label="f"> <text>“Code authority” means an authority activated on or after July 1, 1990.</text> </level> <level label="g"> <text>“County” means a county of the State or Baltimore City.</text> </level> <level label="h"> <text>“Custodian of records” means:</text> <level label="1"> <text>the clerk of the political subdivision;</text> </level> <level label="2"> <text>the officer charged with the duties customarily imposed on a clerk; or</text> </level> <level label="3"> <text>the political subdivision’s designee to be the custodian of records for this Division II.</text> </level> </level> <level label="i"> <text>“Economically depressed or physically deteriorated area” means an area in which most housing is harmful to safety, health, and morals because of:</text> <level label="1"> <text>dilapidation;</text> </level> <level label="2"> <text>overcrowding;</text> </level> <level label="3"> <text>faulty arrangement or design; or</text> </level> <level label="4"> <text>lack of ventilation, light, or sanitary facilities.</text> </level> </level> <level label="j"> <text>“Extraordinary majority” means two-thirds or more of the authorized number of members of the legislative body or the board of commissioners of an authority, as applicable.</text> </level> <level label="k"> <level label="1"> <text>“Housing project” means a work or undertaking to:</text> <level label="i"> <text>demolish, clear, or remove buildings from an economically depressed or physically deteriorated area; or</text> </level> <level label="ii"> <text>provide decent, safe, and sanitary housing for persons of eligible income and, to the extent authorized by § 12-503(a)(4) of this title, for other persons.</text> </level> </level> <level label="2"> <text>“Housing project” includes:</text> <level label="i"> <text>work connected to planning, constructing, reconstructing, altering, or repairing improvements, acquiring property, or demolishing structures;</text> </level> <level label="ii"> <text>adapting an economically depressed or physically deteriorated area to public purposes, including parks and other recreational or community purposes; and</text> </level> <level label="iii"> <text>acquiring buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable:</text> <level label="1"> <text>appurtenances;</text> </level> <level label="2"> <text>streets;</text> </level> <level label="3"> <text>sewers;</text> </level> <level label="4"> <text>water service;</text> </level> <level label="5"> <text>parks;</text> </level> <level label="6"> <text>site preparation;</text> </level> <level label="7"> <text>gardening; and</text> </level> <level label="8"> <text>administrative, community, health, recreational, educational, welfare, or other purposes.</text> </level> </level> </level> </level> <level label="l"> <text>“Legislative body” means the council, commissioners, or other legislative body of a political subdivision.</text> </level> <level label="m"> <text>“Military personnel” includes all civilian and military employees of the military and naval forces of the United States and their families and other dependents who are living with them.</text> </level> <level label="n"> <text>“Obligee” includes:</text> <level label="1"> <text>a bondholder and a trustee for a bondholder;</text> </level> <level label="2"> <text>a lessor that leases to the authority property used in connection with a housing project, and an assignee of all or part of the lessor’s interest; and</text> </level> <level label="3"> <text>the State or federal government when it is a party to a contract with an authority.</text> </level> </level> <level label="o"> <text>“Person” means an individual, a receiver, a trustee, a guardian, a personal representative, a fiduciary, a representative of any kind, a partnership, a firm, an association, a corporation, a public corporation, or any other entity.</text> </level> <level label="p"> <text>“Person of eligible income” means an individual or family that qualifies under § 12-106 of this subtitle.</text> </level> <level label="q"> <text>“Political subdivision” means a county or municipal corporation of the State.</text> </level> <level label="r"> <text>“Pre-existing authority” means an authority that was activated before July 1, 1990.</text> </level> <level label="s"> <text>“Real property” includes:</text> <level label="1"> <text>land;</text> </level> <level label="2"> <text>improvements and fixtures on the land;</text> </level> <level label="3"> <text>property of any nature appurtenant to or used in connection with the land; and</text> </level> <level label="4"> <text>each legal or equitable estate, interest, and right in the land, including:</text> <level label="i"> <text>terms for years and liens by way of judgment, mortgage, or otherwise; and</text> </level> <level label="ii"> <text>the indebtedness secured by those liens.</text> </level> </level> </level> <level label="t"> <text>“State public body” means any political subdivision, commission, district, authority, or unit of the State.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-102" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The General Assembly finds that:</text> <level label="1"> <text>there is unsanitary or unsafe housing in which individuals of low and moderate income are forced to live;</text> </level> <level label="2"> <text>there is a shortage of safe or sanitary housing that is available at rents that individuals of low and moderate income can afford, forcing these individuals to live in overcrowded housing;</text> </level> <level label="3"> <text>there are many families living in housing that, while decent and safe, is inadequate for the size of the family;</text> </level> <level label="4"> <text>the conditions:</text> <level label="i"> <text>cause disease and crime to increase and spread, threaten the public health, safety, morals, and welfare, and impair economic values; and</text> </level> <level label="ii"> <text>cause too much public money to be spent for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities;</text> </level> </level> <level label="5"> <text>construction of housing projects for individuals of low and moderate income does not compete with private enterprise because:</text> <level label="i"> <text>there are economically depressed or physically deteriorated areas that cannot be assisted through the private housing market; and</text> </level> <level label="ii"> <text>the private housing market cannot relieve the shortage of safe and sanitary housing for individuals of low and moderate income;</text> </level> </level> <level label="6"> <text>clearing, replanning, and reconstructing areas in which unsanitary or unsafe housing exists and providing safe and sanitary housing for persons of low and moderate income are public purposes and essential governmental functions for which public money may be spent and private property acquired;</text> </level> <level label="7"> <text>it is the policy of the State to develop safe, sanitary, and decent housing for State residents;</text> </level> <level label="8"> <text>there is a need for available mortgage credit because many purchasers and owners of housing cannot afford mortgage credit at the market interest rate or get mortgage credit because the mortgage credit market is severely restricted; and</text> </level> <level label="9"> <text>this Division II is needed in the public interest.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-103" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The purpose of this Division II is to authorize each authority to do all that is necessary or desirable to secure the financial aid or cooperation of political subdivisions, State government, or federal government to help the authority undertake, construct, maintain, or operate a housing project.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-104" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this section, “housing authority entity” means an entity:</text> <level label="1"> <text>that is controlled or wholly owned by an authority; or</text> </level> <level label="2"> <text>in which an authority or an entity controlled or wholly owned by an authority has an ownership interest, either directly or indirectly, through one or more wholly or partially owned subsidiary entities.</text> </level> </level> <level label="b"> <text>A nonprofit entity shall be deemed controlled by an authority under subsection (a) of this section if:</text> <level label="1"> <text>the nonprofit entity is established by an authority under § 12–502(h) of this title; and</text> </level> <level label="2"> <text>the authority:</text> <level label="i"> <text>has the power to appoint a majority of the board of directors of the nonprofit entity; or</text> </level> <level label="ii"> <text>is the sole member of the nonprofit entity.</text> </level> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Affordable housing” means rental housing:</text> <level label="1"> <text>that has been awarded or approved for a credit allowed under § 42 of the Internal Revenue Code and is subject to a covenant under the federal Low–Income Housing Tax Credit program; or</text> </level> <level label="2"> <text>approved by the governing body of the political subdivision in which the project is located and for which:</text> </level> <level label="A"> <text>at least 50% of the units are reserved for households earning at or below 60% of the area median income for the metropolitan statistical area of the project; and</text> </level> <level label="B"> <text>rent is restricted to 30% of gross household income for a family of four at or below 60% of the area median income for the metropolitan statistical area of the project, adjusted to 1.5 individuals for each bedroom in the unit.</text> </level> </level> <level label="iii"> <text>“Nonprofit housing corporation” means a corporation:</text> <level label="1"> <text>incorporated under the laws of the State or authorized to do business in the State by the State Department of Assessments and Taxation;</text> </level> <level label="2"> <text>recognized by the Internal Revenue Service as an organization described in § 501(c)(3) of the Internal Revenue Code; and</text> </level> <level label="3"> <text>organized and operated for the primary purpose of developing, owning, or operating safe and sanitary affordable housing.</text> </level> </level> </level> <level label="2"> <text>This subsection does not apply to:</text> <level label="i"> <text>property in Baltimore City that:</text> <level label="1"> <text>belongs to a nonprofit housing corporation; or</text> </level> <level label="2"> <text>is owned in whole or in part, directly or indirectly, through one or more wholly or partially owned subsidiary entities of a nonprofit housing corporation; or</text> </level> </level> <level label="ii"> <text>a housing project owned by a nonprofit housing corporation or an entity that is controlled or wholly owned by a nonprofit housing corporation that, before July 1, 2026, received a financial contribution, including a loan, a grant, or other direct financial assistance, for the development of the housing project from a political subdivision in which the housing project is located.</text> </level> </level> <level label="3"> <text>Property is used for essential public and governmental or charitable purposes and is exempt from all taxes and special assessments of the State or a political subdivision if the property:</text> <level label="i"> <text>belongs to an authority or a nonprofit housing corporation;</text> </level> <level label="ii"> <text>is used as housing for persons of eligible income and is owned in whole or in part, directly or indirectly, through one or more wholly or partially owned subsidiary entities of a housing authority entity or nonprofit housing corporation; or</text> </level> <level label="iii"> <level label="1"> <text>is used, or if planned or under construction will be used, as housing for persons of eligible income and is owned in whole or in part, directly or indirectly, through one or more wholly or partially owned subsidiary entities of a housing authority entity or nonprofit housing corporation; and</text> </level> <level label="2"> <text>has improvements, or has improvements planned or under construction, located on land that is owned by:</text> </level> <level label="A"> <text>an authority or a nonprofit housing corporation; or</text> </level> <level label="B"> <text>an entity that is controlled or wholly owned by an authority or a nonprofit housing corporation.</text> </level> </level> </level> <level label="4"> <text>In lieu of those taxes and special assessments, an authority, a nonprofit housing corporation, or a housing authority entity shall pay the political subdivision in which a housing project is wholly or partly located an amount, if any, that may be set by mutual agreement and that does not exceed the amount of regular taxes levied on similar property.</text> </level> </level> <level label="d"> <level label="1"> <text>Except as provided in paragraph (2) or (3) of this subsection:</text> <level label="i"> <text>all real property of an authority is exempt from levy and sale by virtue of an execution;</text> </level> <level label="ii"> <text>an execution or other judicial process may not issue against the real property; and</text> </level> <level label="iii"> <text>a judgment against an authority is not a charge or lien on the authority’s real property.</text> </level> </level> <level label="2"> <text>Paragraph (1) of this subsection does not limit a right to foreclose or otherwise enforce:</text> <level label="i"> <text>a mortgage or deed of trust recorded against property of an authority; or</text> </level> <level label="ii"> <text>a pledge or lien given by an authority on its rents, fees, or revenues.</text> </level> </level> <level label="3"> <text>This subsection does not deprive a political subdivision of its right to collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may be collected under State law and the laws of the political subdivision.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-105" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>An authority of a municipal corporation or Baltimore City may:</text> <level label="1"> <text>operate within its territorial boundaries; and</text> </level> <level label="2"> <text>without regard to location:</text> <level label="i"> <text>administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants;</text> </level> <level label="ii"> <text>own or manage housing projects in operation before January 1, 1990; and</text> </level> <level label="iii"> <text>develop, own, or operate a housing project at the request of and within the territorial boundaries of another political subdivision.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Anywhere in its county an authority of a county may:</text> <level label="i"> <text>administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants; and</text> </level> <level label="ii"> <text>own or manage housing projects in operation before:</text> <level label="1"> <text>January 1, 1990, if the authority is of Baltimore City; or</text> </level> <level label="2"> <text>January 1, 1991, if the authority is of another county.</text> </level> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, an authority of a county may conduct its other operations within the county.</text> </level> <level label="3"> <text>An authority of a county other than Baltimore City may not conduct its other operations within a municipal corporation unless the governing body of the municipal corporation consents by resolution to its inclusion in the authority’s area of operation.</text> </level> </level> <level label="c"> <text>An authority created under § 12–208 of this title may conduct its operations in the area prescribed under its articles of organization.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-106" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>An individual or family qualifies as a person of eligible income:</text> <level label="1"> <text>for projects that are State or federally funded, if the individual or family meets the income requirements of the State or federal program involved; or</text> </level> <level label="2"> <text>for other projects, if the individual or family, by a determination under subsection (b) of this section, lacks sufficient income or assets without financial assistance to purchase or rent decent, safe, and sanitary housing without overcrowding.</text> </level> </level> <level label="b"> <level label="1"> <text>The chief elected official or the chief elected official’s designee, who may be the executive director of an authority or the board of commissioners of the authority, shall determine whether an individual or family qualifies as a person of eligible income under subsection (a)(2) of this section.</text> </level> <level label="2"> <text>Determination of qualifying income levels may vary for the elderly, individuals with disabilities, other persons with special needs, particular projects or programs, or particular parts of the political subdivision.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-107" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>A provision applicable to a particular political subdivision or its authority in another title of this Division II:</text> <level label="1"> <text>takes precedence over a conflicting provision of this title; and</text> </level> <level label="2"> <text>may not be used to interpret how this title applies to another political subdivision or its authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-201" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <text>Except as provided in § 12–208 of this subtitle, in each political subdivision, there is a public body corporate and politic known as the “housing authority” of the political subdivision or as otherwise designated in the articles of organization.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-202" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <text>Sections 12-203 through 12-206 of this subtitle are only enabling legislation allowing a political subdivision to authorize an authority to operate in the political subdivision.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-203" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <text>A code authority may not do business or exercise its powers unless:</text> <level label="1"> <text>its articles of organization have been recommended in writing by the chief elected official, adopted by a resolution or ordinance of the legislative body, and filed with the Secretary of State; and</text> </level> <level label="2"> <text>the Secretary of State has issued a certificate of organization to the code authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-204" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <level label="a"> <text>Except as provided in § 12–208 of this subtitle, each pre–existing authority continues to exist.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, a pre-existing authority governed only by this title:</text> <level label="i"> <text>may exercise the powers granted by Subtitles 6 and 7 and §§ 12-501, 12-502, 12-504, and 12-506(a) of this title; and</text> </level> <level label="ii"> <text>if it adopts articles of organization, may exercise the powers listed in § 12-503 of this title that are authorized by the articles of organization in accordance with § 12-205(b)(1)(vi) of this subtitle; and</text> </level> <level label="iii"> <text>is entitled to the exemptions from State law provided in § 12-505 of this title.</text> </level> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, a pre-existing authority governed by this title and by a title in this Division II that is applicable in a particular political subdivision:</text> <level label="i"> <text>may exercise the powers granted under the title that applies to the particular political subdivision;</text> </level> <level label="ii"> <text>may exercise the powers granted by Subtitles 6 and 7 and §§ 12-501, 12-502, 12-504, and 12-506(a) of this title as modified by the title that applies to the particular political subdivision;</text> </level> <level label="iii"> <text>if it adopts articles of organization, may exercise the powers listed in § 12-503 of this title that are authorized by the articles of organization in accordance with § 12-205(b)(1)(vi) of this subtitle; and</text> </level> <level label="iv"> <text>is entitled to the exemptions from State law provided in § 12-505 of this title.</text> </level> </level> <level label="3"> <text>If articles of organization are adopted, the powers set forth in §§ 12-501 through 12-506(a) of this title may be limited to the extent allowed under §§ 12-205(b)(2) and 12-207 of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-205" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <level label="a"> <text>Articles of organization, if they are not inconsistent with this title, may be adopted for an authority governed by another title in this Division II.</text> </level> <level label="b"> <level label="1"> <text>Articles of organization shall state:</text> <level label="i"> <text>the name of the authority, which may be “housing authority of (here insert name of political subdivision)” or some other name that includes the name of the political subdivision;</text> </level> <level label="ii"> <text>that a need exists for the authority to function in the political subdivision;</text> </level> <level label="iii"> <text>whether appointments of commissioners of the authority by the chief elected official require the prior approval of the legislative body;</text> </level> <level label="iv"> <text>whether the board of commissioners of the authority will consist of five, seven, or nine commissioners;</text> </level> <level label="v"> <text>whether commissioners of the authority will have 3- or 5-year terms;</text> </level> <level label="vi"> <text>whether the authority may exercise any power set forth in § 12-503 of this title, and, if so, any limitations on those powers; and</text> </level> <level label="vii"> <text>any limitation on or elimination of any power granted to the authority under any title of this Division II.</text> </level> </level> <level label="2"> <text>The powers of the authority:</text> <level label="i"> <text>shall be sufficient for it to comply with each existing agreement between it and a State or federal governmental unit and with federal law; and</text> </level> <level label="ii"> <text>may not be limited in a way that is inconsistent with such an agreement or with federal law.</text> </level> </level> <level label="3"> <text>The articles of organization of an authority shall designate an official of the political subdivision to be the custodian of records of the political subdivision for the purposes of this Division II.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the articles of organization may contain specific terms governing the operation of the authority and its housing projects, including financial reporting, budgetary, and personnel requirements.</text> </level> <level label="2"> <text>The specific terms may not add powers to the authority other than those allowed under subsection (b)(1)(vi) of this section and may not be inconsistent with:</text> <level label="i"> <text>any existing agreement between the authority and any State or federal governmental unit;</text> </level> <level label="ii"> <text>federal law; or</text> </level> <level label="iii"> <text>this Division II or other State law.</text> </level> </level> </level> <level label="d"> <text>Articles of organization may not require the authority directly or indirectly to pay any of its reserves or other money to the political subdivision.</text> </level> <level label="e"> <text>The custodian of records shall file with the Secretary of State a certified copy of the written recommendation of the chief elected official and the resolution or ordinance adopting the articles of organization.</text> </level> <level label="f"> <level label="1"> <text>If the Secretary of State finds that the requirements of § 12-203 of this subtitle have been met, the Secretary of State shall endorse the articles of organization “approved” and issue to the authority a certificate of approval attached to them and a certificate of organization.</text> </level> <level label="2"> <text>On issuance of the certificate of approval, the articles of organization as filed are considered to have been adopted.</text> </level> </level> <level label="g"> <text>The Secretary of State:</text> <level label="1"> <text>shall record and maintain all endorsed articles of organization and amendments in records kept for that purpose; and</text> </level> <level label="2"> <text>on request, shall issue certified copies of the endorsed articles of organization and amendments.</text> </level> </level> <level label="h"> <level label="1"> <text>In a proceeding involving or relating to a contract of an authority, the authority is considered to be authorized to do business and exercise its powers if the Secretary of State has issued a certificate of organization.</text> </level> <level label="2"> <text>A copy of the certificate of organization is admissible in evidence.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-206" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <level label="a"> <level label="1"> <text>A pre–existing authority may be governed by articles of organization if:</text> <level label="i"> <text>the pre–existing authority meets the requirements of subsection (b) or (c) of this section;</text> </level> <level label="ii"> <text>the custodian of records files with the Secretary of State the documents required under subsection (d) of this section; and</text> </level> <level label="iii"> <text>the Secretary of State issues a certificate of approval in accordance with subsection (e) of this section.</text> </level> </level> <level label="2"> <text>Articles of organization shall comply with § 12–205(b) through (d) of this subtitle.</text> </level> </level> <level label="b"> <text>Before a pre–existing authority may adopt articles of organization under this subsection, the articles of organization must be:</text> <level label="1"> <text>recommended in writing by the chief elected official;</text> </level> <level label="2"> <text>approved by an extraordinary majority of the board of commissioners of the authority; and</text> </level> <level label="3"> <text>adopted by an extraordinary majority of the legislative body.</text> </level> </level> <level label="c"> <text>Before a pre–existing authority may adopt articles of organization under this subsection:</text> <level label="1"> <text>the custodian of records shall provide documentation to the Secretary of State that within 5 years before the date the documentation is submitted:</text> <level label="i"> <text>the political subdivision, within each of any 3 fiscal years within the 5–year period, has provided financial assistance to the authority from local tax revenues or bond sale proceeds in an amount equal to the greater of:</text> <level label="1"> <text>the product of $1 times the number of residents of the political subdivision as published annually by the Maryland Department of Health or as otherwise available; and</text> </level> <level label="2"> <text>the product of $100 times the total number of housing units owned or managed by the authority; and</text> </level> </level> <level label="ii"> <text>the authority, at the request and with the financial support of the political subdivision, is operating one or more housing projects for which the federal government provided no more than half of the development and operating costs; and</text> </level> </level> <level label="2"> <text>the articles of organization must be:</text> <level label="i"> <text>recommended in writing by the chief elected official;</text> </level> <level label="ii"> <text>approved by a resolution of the board of commissioners of the authority; and</text> </level> <level label="iii"> <text>adopted by a resolution or ordinance of the legislative body.</text> </level> </level> </level> <level label="d"> <text>The custodian of records shall file with the Secretary of State:</text> <level label="1"> <text>a copy of the documentation described in subsection (c)(1) of this section, if applicable;</text> </level> <level label="2"> <text>the articles of organization and the applicable recommending, approving, and adopting instruments described in subsection (b) or (c)(2) of this section;</text> </level> <level label="3"> <text>certification by the custodian of records that the articles of organization have been recommended and adopted by the political subdivision in accordance with the applicable requirements of subsection (b)(1) and (3) or subsection (c)(2)(i) and (iii) of this section; and</text> </level> <level label="4"> <text>certification by the secretary of the pre–existing authority that the articles of organization have been approved by the board of commissioners of the authority in accordance with the applicable requirements of subsection (b)(2) or subsection (c)(2)(ii) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>If the Secretary of State finds that the requirements of subsection (b) or (c) and subsection (d) of this section have been satisfied, the Secretary of State shall endorse the articles as “approved” and issue a certificate of approval attached to the endorsed articles.</text> </level> <level label="2"> <text>When the certificate of approval is issued, the articles of organization as filed are considered to have been adopted.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-207" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <level label="a"> <text>Articles of amendment or restatement of articles of organization of an authority must be:</text> <level label="1"> <text>recommended in writing by the chief elected official;</text> </level> <level label="2"> <text>if required by subsection (d) of this section, approved by a resolution of the board of commissioners of the authority; and</text> </level> <level label="3"> <text>adopted by a resolution or ordinance of the legislative body.</text> </level> </level> <level label="b"> <text>An amendment or restatement of articles of organization shall comply with § 12-205(b) through (d) of this subtitle.</text> </level> <level label="c"> <text>A political subdivision may not amend the articles of organization to change the number of commissioners of an authority or the length of terms of commissioners stated in the initial articles of organization.</text> </level> <level label="d"> <text>A political subdivision may not amend the articles of organization of a pre-existing authority without the approval of the board of commissioners of the pre-existing authority.</text> </level> <level label="e"> <text>The custodian of records shall file with the Secretary of State:</text> <level label="1"> <text>a copy of the articles of amendment or restatement, the recommending and adopting instruments required by subsection (a)(1) and (3) of this section, and any approving instrument required by subsection (a)(2) of this section;</text> </level> <level label="2"> <text>the certification of the custodian of records that the articles of amendment or restatement have been recommended and adopted by the political subdivision in accordance with the requirements of subsection (a)(1) and (3) of this section; and</text> </level> <level label="3"> <text>if required by subsection (a)(2) of this section, the certification of the secretary of the authority that the articles of amendment or restatement have been approved by the board of commissioners of the authority in accordance with the requirements of subsection (a)(2) of this section.</text> </level> </level> <level label="f"> <level label="1"> <text>If the Secretary of State finds that the requirements of subsections (a) and (e) of this section have been met, the Secretary of State shall endorse the articles of amendment or restatement as “approved” and issue an attached certificate of approval.</text> </level> <level label="2"> <text>On issuance of the certificate of approval, the articles of amendment or restatement as filed are considered to have been adopted.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-208" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="2" subtitle_name="Establishment and Organization of Authorities"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Consolidation” means the dissolution of separate existing authorities and the simultaneous creation of a new authority.</text> </level> <level label="3"> <text>“Merger” means the absorption of one existing authority by another existing authority in which the one authority dissolves and the other authority continues to exist.</text> </level> </level> <level label="b"> <text>The Housing Commission of Talbot County and the St. Michaels Housing Authority may unite by consolidation or merger to form one authority.</text> </level> <level label="c"> <level label="1"> <text>The unification of the Housing Commission of Talbot County and the St. Michaels Housing Authority shall be initiated by the passage of a proposal of unification in substantially the same form by the legislative body of the Town of Easton and the legislative body of the Town of St. Michaels.</text> </level> <level label="2"> <text>The proposal of unification shall:</text> <level label="i"> <text>include a description of the boundaries of the area of operation for the proposed authority; and</text> </level> <level label="ii"> <text>be approved by each municipal corporation in the same manner provided for the adoption of a resolution or ordinance in the charter or bylaws of the municipal corporation that is considering the proposal of unification.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>After both municipal corporations approve a proposal of unification, each municipal corporation shall appoint an equal number of representatives, which may not be less than three nor more than five, to a commission charged with drafting articles of organization for the proposed authority.</text> </level> <level label="2"> <text>The members of the commission shall:</text> <level label="i"> <text>adopt rules and elect officers to govern their meetings and expedite the drafting of the articles of organization; and</text> </level> <level label="ii"> <text>complete a draft of the articles of organization no later than 6 months after the approval of the proposals of unification.</text> </level> </level> <level label="3"> <text>In the draft articles of organization or in a separate document, the commission shall:</text> <level label="i"> <text>describe the boundaries of the area of operation for the proposed authority; and</text> </level> <level label="ii"> <text>provide for:</text> <level label="1"> <text>the disposition of any debts, bonds, and other obligations of the Housing Commission of Talbot County and any debts, bonds, and other obligations of the St. Michaels Housing Authority;</text> </level> <level label="2"> <text>the transfer to the proposed authority of any property and other assets of the Housing Commission of Talbot County and any property and other assets of the St. Michaels Housing Authority; and</text> </level> <level label="3"> <text>the designation of the chief elected official, custodian of records, and legislative body of which municipal corporation that shall govern the operations of the proposed authority.</text> </level> </level> </level> </level> <level label="e"> <level label="1"> <text>The commission created under subsection (d) of this section shall submit the draft articles of organization to the legislative body of each municipal corporation for adoption or rejection.</text> </level> <level label="2"> <text>The legislative body of each municipal corporation must adopt or reject the draft articles of organization as a whole.</text> </level> <level label="3"> <text>No amendment or change may be made to the draft articles of organization unless the legislative body of each municipal corporation concurs in the amendment or change.</text> </level> <level label="4"> <text>If the legislative body of each municipal corporation adopts the draft articles of organization, the appropriate custodian of records shall file the articles of organization with the Secretary of State.</text> </level> </level> <level label="f"> <level label="1"> <text>If the Secretary of State finds that the appropriate requirements of §§ 12–205 and 12–206 of this subtitle have been satisfied, the Secretary of State shall endorse the articles as “approved” and issue a certificate of approval attached to the endorsed articles of organization.</text> </level> <level label="2"> <text>When the certificate of approval is issued, the articles of organization as filed are considered to have been adopted.</text> </level> <level label="3"> <text>An authority created under this section may not do business or exercise its powers unless the Secretary of State has issued a certificate of approval.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-301" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <text>The required number of commissioners of an authority:</text> <level label="1"> <text>for an authority not governed by articles of organization, is five; and</text> </level> <level label="2"> <text>for an authority governed by articles of organization, is the number set forth in the articles of organization as required by § 12-205(b)(1)(iv) of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-302" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>The chief elected official shall appoint the required number of commissioners of the authority.</text> </level> <level label="b"> <level label="1"> <text>A certificate of the appointment of a commissioner of an authority shall be filed with the custodian of records.</text> </level> <level label="2"> <text>The certificate is conclusive evidence of the appointment.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-303" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>A commissioner of an authority may not be an employee of the authority.</text> </level> <level label="b"> <level label="1"> <text>If an authority is governed by articles of organization, only one commissioner of the authority may be an employee of the political subdivision.</text> </level> <level label="2"> <text>Otherwise, a commissioner of an authority may not be an employee of the political subdivision.</text> </level> </level> <level label="c"> <text>A commissioner of an authority may not be an elected official of the political subdivision.</text> </level> <level label="d"> <text>This subtitle does not bar a tenant of a housing project or of property included or planned to be included in a housing project from being a commissioner of an authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-304" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <level label="1"> <text>This subsection applies to authorities for which the Secretary of State approves articles of organization on or after July 1, 1990.</text> </level> <level label="2"> <text>All initial appointments of commissioners of an authority after the Secretary of State approves the articles of organization shall have the same effective date.</text> </level> <level label="3"> <text>The effective date shall be set forth along with the term of appointment on each initial certificate of appointment required by § 12-302(b) of this subtitle.</text> </level> <level label="4"> <text>For authorities whose articles of organization say that commissioners of the authority have 5-year terms, those who are initially appointed shall have staggered terms of:</text> <level label="i"> <text>1, 2, 3, 4, and 5 years for five-member authorities;</text> </level> <level label="ii"> <text>1, 2, 3, 3, 4, 5, and 5 years for seven-member authorities; and</text> </level> <level label="iii"> <text>1, 2, 2, 3, 3, 4, 4, 5, and 5 years for nine-member authorities.</text> </level> </level> <level label="5"> <text>For authorities whose articles of organization say that commissioners of the authority have 3-year terms, those who are initially appointed shall have staggered terms of:</text> <level label="i"> <text>1, 2, 2, 3, and 3 years for five-member authorities;</text> </level> <level label="ii"> <text>1, 1, 2, 2, 3, 3, and 3 years for seven-member authorities; and</text> </level> <level label="iii"> <text>1, 1, 1, 2, 2, 2, 3, 3, and 3 years for nine-member authorities.</text> </level> </level> <level label="6"> <text>Notwithstanding § 12-311 of this subtitle, a commissioner of an authority who is an employee of the political subdivision serves at the pleasure of the chief elected official.</text> </level> </level> <level label="b"> <level label="1"> <text>The term of a commissioner of an authority who was in office before the adoption of articles of organization ends on the effective date of the initial appointments under the articles of organization.</text> </level> <level label="2"> <text>Except as provided in paragraphs (3) and (4) of this subsection, before the effective date of the initial appointments under the articles of organization, the chief elected official shall appoint each commissioner of an authority who was in office before the adoption of the articles of organization to a term as a commissioner of the authority under the articles of organization.</text> </level> <level label="3"> <text>A commissioner of an authority who has delivered to the chief elected official written notice declining appointment may not be appointed under this subsection.</text> </level> <level label="4"> <text>If the number of commissioners of an authority is reduced by the articles of organization so that there are not enough places for all those who did not decline appointment, the chief elected official shall choose which ones to appoint, and when they are appointed and qualify they are the successors of all those who were in office before the adoption of the articles of organization.</text> </level> <level label="5"> <text>Notwithstanding § 12-205(b)(1)(iii) of this title, any other provision of this Division II, and the articles of organization, an appointment under this subsection does not require approval of the legislative body.</text> </level> </level> <level label="c"> <text>If an authority is not governed by articles of organization:</text> <level label="1"> <text>commissioners of the authority who are initially appointed shall have terms of 1, 2, 3, 4, and 5 years; and</text> </level> <level label="2"> <text>each term thereafter shall be 5 years.</text> </level> </level> <level label="d"> <level label="1"> <text>At the end of a term, a commissioner of an authority serves until a successor is appointed and qualifies.</text> </level> <level label="2"> <text>A commissioner of an authority who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-305" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <level label="1"> <text>The chief elected official shall choose as chair a commissioner who is appointed when the authority is first activated.</text> </level> <level label="2"> <text>When the office of the chair becomes vacant thereafter, the authority shall choose a chair from among its commissioners.</text> </level> </level> <level label="b"> <text>An authority shall choose a vice chair from among its commissioners.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-306" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>The powers of each authority are vested in the commissioners.</text> </level> <level label="b"> <text>A quorum is:</text> <level label="1"> <text>three commissioners of a five-member authority;</text> </level> <level label="2"> <text>four commissioners of a seven-member authority; or</text> </level> <level label="3"> <text>five commissioners of a nine-member authority.</text> </level> </level> <level label="c"> <text>An authority may take action on a vote of a majority of the commissioners present at a meeting at which there is a quorum, unless a larger number is required by law or the bylaws of the authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-307" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <text>With the approval of the legislative body, a commissioner of an authority may receive reasonable compensation for the commissioner’s services and is entitled to the necessary expenses, including traveling expenses, incurred in the discharge of the commissioner’s duties.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-308" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <level label="1"> <text>An authority may employ:</text> <level label="i"> <text>a secretary, who shall serve as executive director; and</text> </level> <level label="ii"> <text>technical experts and other officers, agents, and employees, permanent and temporary.</text> </level> </level> <level label="2"> <text>An authority shall determine the qualifications, duties, and compensation of its employees.</text> </level> </level> <level label="b"> <text>For legal services, an authority may use the chief law officer of the political subdivision or may employ its own counsel and legal staff.</text> </level> <level label="c"> <text>An authority may delegate to one or more of its agents or employees the powers or duties it considers proper.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-309" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>Each commissioner, the executive director, and each employee of an authority is:</text> <level label="1"> <text>a local official for the purposes of Title 5, Subtitle 8, Part II of the General Provisions Article and subject to local ethics laws; and</text> </level> <level label="2"> <text>an employee of a local government for the purposes of Title 5, Subtitle 3 of the Courts and Judicial Proceedings Article and entitled to the protections of the Local Government Tort Claims Act.</text> </level> </level> <level label="b"> <text>A commissioner of an authority is not liable for a statement made or action taken in good faith in the exercise or performance of a power or duty of the commissioner.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-310" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>Except for bonds purchased before appointment and interests in mutual funds, a commissioner or employee of an authority may not acquire any direct or indirect interest in a housing project or in property included or planned to be included in a housing project.</text> </level> <level label="b"> <text>A commissioner or employee of an authority may not have any direct or indirect interest in a contract or proposed contract for materials or services to be furnished or used in connection with a housing project.</text> </level> <level label="c"> <level label="1"> <text>A commissioner or employee of an authority who owns or controls a direct or indirect interest in property included or planned to be included in a housing project shall immediately disclose the interest in writing to the authority.</text> </level> <level label="2"> <text>The disclosure shall be entered in the minutes of the authority.</text> </level> <level label="3"> <text>Failure to disclose the interest is misconduct in office.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-311" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <text>A commissioner of an authority may be removed by the chief elected official in accordance with this section for neglect of duty or misconduct in office, including violations of local ethics laws and misconduct identified in § 12-310 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The chief elected official shall file charges with the office of the custodian of records and promptly deliver a copy of the charges to the commissioner and to the secretary of the authority.</text> </level> <level label="2"> <text>Written notice of the date, time, and place of a hearing shall be given to the commissioner at least 14 days before the hearing.</text> </level> <level label="3"> <text>Unless the commissioner has resigned from office, the chief elected official shall hold the hearing, at which the commissioner shall have an opportunity to be represented by counsel and to be heard in person.</text> </level> <level label="4"> <text>On completion of the hearing, the chief elected official shall make written findings.</text> </level> </level> <level label="c"> <text>If a commissioner of an authority is removed, a record of the proceedings and the charges and findings shall be filed in the office of the custodian of records.</text> </level> <level label="d"> <level label="1"> <text>On the filing of charges under subsection (b)(1) of this section with the office of the custodian of records, the chief elected official may temporarily suspend a commissioner of an authority.</text> </level> <level label="2"> <text>The chief elected official shall immediately reinstate the commissioner in office if the chief elected official finds the charges have not been substantiated.</text> </level> <level label="3"> <text>The commissioner shall be reinstated automatically, unless a hearing on removal has been held and a decision made by the chief elected official within 45 days after the filing of charges.</text> </level> <level label="4"> <text>The chief elected official may not temporarily appoint a person to perform the duties of a suspended member.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-312" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="3" subtitle_name="Commissioners"> <level label="a"> <level label="1"> <text>When a code authority becomes authorized to do business and exercise its powers, the political subdivision:</text> <level label="i"> <text>immediately shall estimate the amount of money necessary for the administrative expenses and overhead of the code authority during the first year thereafter; and</text> </level> <level label="ii"> <text>shall appropriate that amount to the code authority out of money in the political subdivision’s treasury not appropriated to some other purpose.</text> </level> </level> <level label="2"> <text>The political subdivision shall pay the money appropriated to the code authority as a donation.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the political subdivision shall appropriate to the code authority money needed to comply with any requirement imposed on it by its articles of organization, if enough money for the code authority to comply is not available from State, federal, or other sources.</text> </level> <level label="2"> <text>A political subdivision is not required to provide any money for a code authority to satisfy a judgment, liability, debt, or other financial obligation to a third party.</text> </level> </level> <level label="c"> <level label="1"> <text>A political subdivision located wholly or partly in the area of operation of a code authority may lend, donate, or agree to lend or donate money to the code authority.</text> </level> <level label="2"> <text>The code authority, when it has the money available, shall reimburse the political subdivision for all loans made to it by the political subdivision.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-401" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="4" subtitle_name="Duties of Authorities"> <level label="a"> <text>It is State policy that an authority:</text> <level label="1"> <text>shall manage and operate its housing projects efficiently to enable it to fix the rent for housing units at the lowest rates consistent with its providing decent, safe, and sanitary housing units and meeting the financial needs under subsection (b) of this section; but</text> </level> <level label="2"> <text>may not operate for profit or as a source of revenue to the political subdivision.</text> </level> </level> <level label="b"> <text>An authority shall fix the rents for housing units in its housing projects at rates no higher than it finds necessary to produce revenues that with all other available money, revenue, income, and receipts will be sufficient to:</text> <level label="1"> <text>pay the principal and interest on bonds of the authority, as they become due;</text> </level> <level label="2"> <text>pay and provide for maintaining and operating the housing projects, including the cost of insurance and the administrative expenses of the authority;</text> </level> <level label="3"> <level label="i"> <text>create during a period of at least 6 years right after it issues any bonds, a reserve that can meet the largest principal and interest payments that will be due on the bonds in any year thereafter; and</text> </level> <level label="ii"> <text>maintain the reserve;</text> </level> </level> <level label="4"> <text>create reserves for operations, emergencies, renovations, replacements, and the repayment of debt; and</text> </level> <level label="5"> <text>create funds necessary or desirable to:</text> <level label="i"> <text>subsidize rents;</text> </level> <level label="ii"> <text>develop or operate housing projects; or</text> </level> <level label="iii"> <text>operate or provide services located in housing projects or that otherwise benefit their residents.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-402" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="4" subtitle_name="Duties of Authorities"> <text>Except for rental units that may be occupied by others under § 12-503(a)(4) of this title, an authority:</text> <level label="1"> <text>shall rent the housing units in a housing project only:</text> <level label="i"> <text>to persons of eligible income, except for a reasonable number of housing units that may be occupied by management and security personnel; and</text> </level> <level label="ii"> <text>at rentals within the financial reach of persons of eligible income;</text> </level> </level> <level label="2"> <text>may not accept a person as a tenant in a housing project if the aggregate annual income of the person or persons who would occupy the housing unit exceeds the maximum income level established for persons of eligible income; and</text> </level> <level label="3"> <text>shall prohibit subletting by tenants.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-403" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="4" subtitle_name="Duties of Authorities"> <text>Except as provided in § 12-506(b)(9) of this title, all housing projects of an authority are subject to the planning, zoning, sanitary, health, fire, housing, subdivision, and building laws, ordinances, codes, rules, and regulations that apply where the housing project is located.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-404" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="4" subtitle_name="Duties of Authorities"> <level label="a"> <text>At least annually, an authority shall file with the custodian of records a financial report of its activities for the preceding year and recommend any further action by the political subdivision that it considers necessary or useful to carry out the purpose of this Division II.</text> </level> <level label="b"> <text>The political subdivision may require an authority to provide it with an annual operating budget and program reports that the political subdivision designates.</text> </level> <level label="c"> <text>The political subdivision or its designee may at any time:</text> <level label="1"> <text>examine the books and records of the authority; or</text> </level> <level label="2"> <text>conduct an audit of the authority.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-405" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="4" subtitle_name="Duties of Authorities"> <text>This subtitle does not limit the power of an authority to vest in an obligee the right, if the authority defaults, to:</text> <level label="1"> <text>take possession of a housing project;</text> </level> <level label="2"> <text>have a receiver of a housing project appointed; or</text> </level> <level label="3"> <text>acquire title to a housing project, through foreclosure or otherwise, free from all restrictions of this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-501" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <text>An authority is a public body corporate and politic that:</text> <level label="1"> <text>exercises public and essential governmental functions; and</text> </level> <level label="2"> <text>has all the powers necessary or convenient to carry out the purposes of this Division II.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-502" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <level label="a"> <text>In addition to any powers set forth elsewhere, an authority has the powers set forth in this section.</text> </level> <level label="b"> <text>An authority may:</text> <level label="1"> <text>sue and be sued;</text> </level> <level label="2"> <text>have and alter a seal at pleasure;</text> </level> <level label="3"> <text>have perpetual existence;</text> </level> <level label="4"> <text>make contracts and other instruments necessary or convenient to the exercise of the authority’s powers;</text> </level> <level label="5"> <text>make, amend, and repeal bylaws, rules, and regulations not inconsistent with this Division II; and</text> </level> <level label="6"> <text>carry out the purposes of the authority.</text> </level> </level> <level label="c"> <text>An authority may also:</text> <level label="1"> <text>prepare, carry out, acquire, own, lease, and operate housing projects in its area of operation;</text> </level> <level label="2"> <text>provide for the construction, reconstruction, improvement, alteration, or repair of a housing project;</text> </level> <level label="3"> <text>provide directly or arrange or contract for a person or governmental unit to furnish facilities or services, including drug rehabilitation, elderly or child day care, and other social services for or in connection with:</text> <level label="i"> <text>a housing project; or</text> </level> <level label="ii"> <text>the residents of a housing project; and</text> </level> </level> <level label="4"> <text>notwithstanding any other law, require in a contract in connection with a housing project that the contractor and any subcontractors comply with:</text> <level label="i"> <text>requirements about minimum wages and maximum hours of labor; and</text> </level> <level label="ii"> <text>any conditions that the State or federal government attaches to financial aid for the housing project.</text> </level> </level> </level> <level label="d"> <text>An authority may also:</text> <level label="1"> <text>make rent subsidy payments to or on behalf of persons of eligible income;</text> </level> <level label="2"> <text>rent out houses, accommodations, lands, buildings, structures, or facilities in a housing project;</text> </level> <level label="3"> <text>subject to the limitations contained in this Division II, establish and revise the rents or charges;</text> </level> <level label="4"> <text>own, hold, and improve real and personal property;</text> </level> <level label="5"> <text>purchase, lease, obtain options on, or acquire by gift, grant, bequest, devise, or otherwise any real or personal property;</text> </level> <level label="6"> <text>sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property;</text> </level> <level label="7"> <text>insure or provide for the insurance of real or personal property or operations of the authority against any risks or hazards; and</text> </level> <level label="8"> <text>get from the State or federal government insurance or guarantees of payment of debts secured by mortgages on property in any of its housing projects, whether or not the debts are incurred by the authority.</text> </level> </level> <level label="e"> <level label="1"> <text>When an authority has money that is held in a reserve or sinking fund or is not needed for immediate disbursement, the authority may invest the money in property or securities in which savings banks may invest.</text> </level> <level label="2"> <text>An authority may purchase its bonds at not more than their principal amount and accrued interest, all bonds so purchased to be canceled.</text> </level> </level> <level label="f"> <text>An authority may also:</text> <level label="1"> <text>investigate living and housing conditions in its area of operation and ways to improve those conditions;</text> </level> <level label="2"> <text>determine where:</text> <level label="i"> <text>economically depressed or physically deteriorated areas exist; or</text> </level> <level label="ii"> <text>there is a shortage of decent, safe, and sanitary housing for persons of eligible income;</text> </level> </level> <level label="3"> <text>make studies and recommendations on clearing, replanning, and reconstructing economically depressed or physically deteriorated areas and providing housing for persons of eligible income;</text> </level> <level label="4"> <text>cooperate with the State or a political subdivision to solve the problems set forth in this subsection; and</text> </level> <level label="5"> <text>conduct research, studies, and experiments on housing issues.</text> </level> </level> <level label="g"> <text>Acting through one or more of its commissioners or designees, an authority may also:</text> <level label="1"> <text>examine, investigate, hear testimony, and take evidence at public or private hearings on any matter material to its duties;</text> </level> <level label="2"> <text>make findings and recommendations about any property where conditions pose a danger to the public health, morals, safety, or welfare; and</text> </level> <level label="3"> <text>make those findings and recommendations available to appropriate governmental units, including those that in its area of operation have the duty to:</text> <level label="i"> <text>abate or require the correction of nuisances or like conditions; or</text> </level> <level label="ii"> <text>demolish unsafe or unsanitary structures.</text> </level> </level> </level> <level label="h"> <text>An authority may also establish and control nonprofit entities, including corporations, partnerships, and limited liability companies, that may own, operate, and take steps necessary or convenient to develop or otherwise undertake housing projects in the authority’s area of operation.</text> </level> <level label="i"> <level label="1"> <text>In the manner provided under Title 12 of the Real Property Article or any other applicable statutory law, an authority may also acquire by eminent domain real property that the authority considers necessary for its purposes under this Division II, if:</text> <level label="i"> <text>the authority adopts a resolution declaring that the acquisition of the real property is necessary for those purposes; and</text> </level> <level label="ii"> <text>the legislative body and the chief elected official approve.</text> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, property devoted to a public use may similarly be acquired by eminent domain.</text> </level> <level label="ii"> <text>Real property that belongs to the State or a political subdivision may not be acquired without the consent of the State or the political subdivision.</text> </level> </level> </level> <level label="j"> <text>An authority may also:</text> <level label="1"> <text>borrow money and accept grants and other financial assistance from the political subdivision, the State, and the federal government and accept grants from nongovernmental sources for a housing project in its area of operation;</text> </level> <level label="2"> <text>take over, lease, or manage a housing project or undertaking constructed, financed, or owned by the political subdivision, the State, or the federal government; and</text> </level> <level label="3"> <text>comply with conditions and enter into mortgages, trust indentures, leases, and agreements as may be necessary or desirable.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-503" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <level label="a"> <text>If authorized under its articles of organization, an authority within its area of operation may:</text> <level label="1"> <text>make mortgage loans and mortgage subsidy payments to or for the benefit of persons of eligible income;</text> </level> <level label="2"> <text>make construction loans and long-term mortgage loans to any person to produce housing for persons of eligible income;</text> </level> <level label="3"> <text>purchase mortgages secured by housing for persons of eligible income;</text> </level> <level label="4"> <text>subject to any applicable agreement, allow a number of residents of a housing project or a part of one that the authority finances to have incomes above the levels for persons of eligible income, if the number does not exceed the percentage allowed in the articles of organization, which may not exceed 80%;</text> </level> <level label="5"> <text>acquire, develop, construct, rehabilitate, own, operate, and lease, as lessor or lessee, commercial facilities on the site of a housing project that make an economic or social contribution to the housing project, if:</text> <level label="i"> <text>the commercial facilities are intended substantially for the use and benefit of the tenants of the housing project; and</text> </level> <level label="ii"> <text>the intended use by other persons is incidental;</text> </level> </level> <level label="6"> <text>with the approval of the legislative body and the chief elected official, acquire, develop, construct, rehabilitate, own, operate, and lease, as lessor or lessee, commercial facilities that:</text> <level label="i"> <text>are adjacent to the site of a housing project;</text> </level> <level label="ii"> <text>are not intended substantially for the use and benefit of the tenants of the housing project; or</text> </level> <level label="iii"> <text>are intended for use more than incidentally by persons other than the tenants of the housing project; and</text> </level> </level> <level label="7"> <text>act and invest as a general partner and as a limited partner in housing projects.</text> </level> </level> <level label="b"> <text>This section does not limit the powers granted to authorities by other titles in this Division II.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-504" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <level label="a"> <text>An authority may exercise the powers that are granted by this Division II, even if economic competition is displaced or limited as a result.</text> </level> <level label="b"> <text>This section does not preempt or supersede the regulatory authority of a State unit under public general law.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-505" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <text>Unless the General Assembly specifically states otherwise, State law on the financing, acquisition, operation, or disposition of property by other State public bodies does not apply to an authority.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-506" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <level label="a"> <text>Two or more authorities may join or cooperate with one another in the exercise of any power under this subtitle to finance, plan, undertake, construct, or operate a housing project or housing projects in the area of operation of any one or more of them.</text> </level> <level label="b"> <text>To aid and cooperate in the planning, undertaking, construction, or operation of housing projects located wholly or partly in the area in which it may act, a State public body, with or without consideration and on terms that it determines, may:</text> <level label="1"> <text>dedicate, sell, convey, or lease any of the State public body’s property to an authority or the federal government;</text> </level> <level label="2"> <text>cause parks, playgrounds, recreational, community, water, sewer, or drainage facilities, or any other works that the State public body otherwise may undertake, to be furnished adjacent to or in connection with housing projects;</text> </level> <level label="3"> <text>furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other places that the State public body otherwise may undertake;</text> </level> <level label="4"> <text>make, with an authority, the State, or the federal government, agreements that:</text> <level label="i"> <text>deal with action to be taken by the State public body under a power granted by this Division II; and</text> </level> <level label="ii"> <text>may last for any length of time, notwithstanding any other law;</text> </level> </level> <level label="5"> <text>do what is necessary or convenient to aid and cooperate in the planning, financing, undertaking, construction, or operation of the housing projects;</text> </level> <level label="6"> <text>grant easements, licenses, or any other related rights to an authority or the federal government;</text> </level> <level label="7"> <text>cause services to be furnished to the authority of the character that the State public body otherwise may furnish;</text> </level> <level label="8"> <text>make agreements about the exercise by the State public body of its powers relating to repairing, closing, or demolishing unsafe, unsanitary, or unfit housing;</text> </level> <level label="9"> <text>plan, replan, zone, or rezone any part of the State public body, make exceptions to its sanitary, building, housing, fire, health, subdivision, or other similar laws, rules, regulations, and ordinances or make any changes to its map or master plan; and</text> </level> <level label="10"> <text>agree with an authority that the authority pay the State public body an amount, if any, in lieu of taxes for any year or period of years.</text> </level> </level> <level label="c"> <text>Powers conferred under this section on State public bodies are in addition to and do not supplant any other power conferred by law.</text> </level> <level label="d"> <level label="1"> <text>The State public body may incur the entire expense of any public improvement that the State public body makes under this section.</text> </level> <level label="2"> <text>Notwithstanding any other law, a State public body may make a sale, conveyance, lease, or agreement provided for in this section without appraisal, public notice, advertisement, or public bidding.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-507" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="5" subtitle_name="Powers and Limitations on Powers"> <text>A State public body may not require changes to be made in a housing project or the manner of its construction or take any other action relating to the construction if the authority:</text> <level label="1"> <text>has acquired or taken over the housing project from the federal government; and</text> </level> <level label="2"> <text>has found and declared by resolution that the housing project was constructed in a way that will promote the public interest and afford necessary safety, sanitation, and other protection.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-601" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <level label="a"> <text>An authority may develop and administer projects to make safe and sanitary housing available for military personnel.</text> </level> <level label="b"> <level label="1"> <text>An authority has all the rights, powers, privileges, and immunities under this subtitle that it has under any law relating to the ownership, development, or administration of housing projects for persons of eligible income.</text> </level> <level label="2"> <text>Except as otherwise provided in this subtitle, a project is not subject to the limitations under §§ 12-401 and 12-402 of this title, or any other limitation on the amount of rentals or the eligibility of tenants, if an authority, or another authority cooperating with it, administers the project under this subtitle:</text> <level label="i"> <text>with financial aid from the federal government; or</text> </level> <level label="ii"> <text>as agent for the federal government.</text> </level> </level> <level label="3"> <text>An authority may pay the amount that it finds necessary or desirable for any services, facilities, works, privileges, or improvements furnished for or in connection with housing for military personnel.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-602" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <text>An authority may:</text> <level label="1"> <text>exercise its powers to cooperate with, or act as agent for, the federal government in the development or administration of projects by the federal government to make safe and sanitary housing available for military personnel; and</text> </level> <level label="2"> <text>develop or administer such a project for the federal government.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-603" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <text>A State public body has the same rights and powers to cooperate with authorities in the development or administration of projects to make safe and sanitary housing available for military personnel that the State public body has under this Division II to assist in the development or administration of housing projects for persons of eligible income.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-604" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <text>Bonds issued by an authority for a project developed or administered under this subtitle are legal investments to the same extent and for the same bodies and officers as bonds issued under any other section of this Division II to develop a housing project for persons of eligible income.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-605" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <level label="a"> <text>This subtitle is an independent authorization for an authority to:</text> <level label="1"> <text>develop or administer projects to make safe and sanitary housing available for military personnel as provided in this Division II; and</text> </level> <level label="2"> <text>cooperate with, or act as agent for, the federal government in the development or administration of similar projects by the federal government.</text> </level> </level> <level label="b"> <text>Except for laws relating to land acquisition, an authority acting under this subtitle is not subject to any limitation, restriction, or requirement of any other law that sets forth the procedure or action to develop or administer public works.</text> </level> <level label="c"> <text>To develop speedily or administer projects for safe and sanitary housing for military personnel, an authority may do all that is necessary or desirable to:</text> <level label="1"> <text>work with or act as agent for the federal government;</text> </level> <level label="2"> <text>get financial aid; and</text> </level> <level label="3"> <text>carry out the purposes of this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-606" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <text>An authority may exercise its powers anywhere in the State as an agent or lessee of the federal government in the development, construction, operation, or management of a project undertaken by the federal government for housing military personnel.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="12-607" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="6" subtitle_name="Housing for Military Personnel"> <level label="a"> <text>The powers conferred under this subtitle are in addition to and do not supplant any other powers conferred by law.</text> </level> <level label="b"> <text>This subtitle does not limit any other power of an authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-701" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds"> <level label="a"> <text>An authority may:</text> <level label="1"> <text>issue bonds for any of its corporate purposes;</text> </level> <level label="2"> <text>issue refunding bonds to pay or retire its bonds; and</text> </level> <level label="3"> <text>issue any kinds of bonds, including bonds on which the principal and interest are payable:</text> <level label="i"> <text>only from the income and revenues of the housing project financed with the proceeds of the bonds or with these proceeds and a grant from the State or federal government in aid of the housing project;</text> </level> <level label="ii"> <text>only from the income and revenues of designated housing projects whether or not they were financed wholly or partly with the proceeds of the bonds; or</text> </level> <level label="iii"> <text>from its revenues generally.</text> </level> </level> </level> <level label="b"> <text>To secure any of its bonds, an authority may pledge any revenue or mortgage a housing project or other property of the authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-702" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds"> <level label="a"> <text>Bonds of an authority are issued for an essential public and governmental purpose.</text> </level> <level label="b"> <level label="1"> <text>Neither a commissioner of an authority nor a person who executes the bond for an authority is personally liable on the bonds.</text> </level> <level label="2"> <text>Neither the State nor a political subdivision is liable on the bonds.</text> </level> </level> <level label="c"> <text>The bonds of an authority:</text> <level label="1"> <text>are not a debt of the State or a political subdivision and shall state so on their face;</text> </level> <level label="2"> <text>are payable only out of money or property of the authority; and</text> </level> <level label="3"> <text>are not an indebtedness for purposes of a constitutional or statutory debt limitation or restriction.</text> </level> </level> <level label="d"> <text>Bonds issued under this Division II and their transfer and the income from them, including any profit made on their sale, shall be free from taxation of every kind by the State and by all political subdivisions.</text> </level> <level label="e"> <text>Bonds issued by an authority are negotiable for the purposes of the Maryland Uniform Commercial Code, subject to the registration provisions of the Code.</text> </level> <level label="f"> <level label="1"> <text>Bonds issued by an authority are securities in which money may be invested by:</text> <level label="i"> <text>public officers and governmental units of the State or its political subdivisions;</text> </level> <level label="ii"> <text>banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business;</text> </level> <level label="iii"> <text>insurance companies, insurance associations, and others carrying on an insurance business;</text> </level> <level label="iv"> <text>personal representatives, guardians, trustees, and other fiduciaries; and</text> </level> <level label="v"> <text>all other persons.</text> </level> </level> <level label="2"> <text>Money that may be invested in the bonds includes capital that an investor owns or controls.</text> </level> </level> <level label="g"> <text>Bonds issued by an authority are securities that may be deposited with or received by any State or municipal officer, governmental unit, or political subdivision of the State for any purpose for which the deposit of bonds of the State is authorized by law.</text> </level> <level label="h"> <level label="1"> <text>This subsection:</text> <level label="i"> <text>is intended only for any public approval requirement of the Internal Revenue Code relating to the issuance of tax-exempt obligations; and</text> </level> <level label="ii"> <text>does not determine whether an authority is a governmental unit of the State or of a political subdivision.</text> </level> </level> <level label="2"> <text>Subject to paragraph (1) of this subsection, an authority authorized under a resolution or ordinance of a political subdivision derives its authorization from the resolution or enactment rather than directly from State law.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-703" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds"> <level label="a"> <level label="1"> <text>Bonds of an authority shall be authorized by its resolution and may be issued in one or more series.</text> </level> <level label="2"> <text>The resolution, the trust indenture, or the mortgage shall provide for the bonds:</text> <level label="i"> <text>a date or dates;</text> </level> <level label="ii"> <text>the time or times of maturity;</text> </level> <level label="iii"> <text>the interest rate or rates;</text> </level> <level label="iv"> <text>the denomination or denominations;</text> </level> <level label="v"> <text>whether they will be in coupon or registered form;</text> </level> <level label="vi"> <text>the conversion or registration privileges;</text> </level> <level label="vii"> <text>their rank or priority;</text> </level> <level label="viii"> <text>the manner of execution;</text> </level> <level label="ix"> <text>the medium of payment;</text> </level> <level label="x"> <text>the place or places of payment; and</text> </level> <level label="xi"> <text>the terms of redemption, with or without premium.</text> </level> </level> <level label="3"> <text>Bonds may be sold at public or private sale in the manner and on the terms that a resolution of the authority authorizes.</text> </level> </level> <level label="b"> <text>If a commissioner or officer of the authority whose signature is on a bond or coupon leaves office before the bond is delivered, the signature nevertheless is valid and sufficient, the same as if the commissioner or officer had remained in office until delivery.</text> </level> <level label="c"> <text>A bond reciting in substance that it has been issued by an authority to aid in financing a housing project to provide housing for persons of eligible income shall be considered to have been issued for that purpose in a proceeding involving the validity or enforceability of the bond or its security.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-704" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds"> <level label="a"> <text>In connection with issuing bonds or incurring obligations under leases, and to secure payment of the bonds or obligations, an authority, in addition to its other powers, may:</text> <level label="1"> <text>pledge any or all of the gross or net rents, fees, or revenues that are or will become due to it;</text> </level> <level label="2"> <text>mortgage any or all of the real or personal property that it owns or will own;</text> </level> <level label="3"> <text>covenant against:</text> <level label="i"> <text>pledging any or all of its rents, fees, or other revenue;</text> </level> <level label="ii"> <text>mortgaging any or all of the real or personal property that it owns or will own; or</text> </level> <level label="iii"> <text>suffering any lien on anything listed under item (i) or (ii) of this item;</text> </level> </level> <level label="4"> <text>covenant about limits on its right to sell, lease, or dispose of all or part of a housing project;</text> </level> <level label="5"> <text>covenant as to what other debts or obligations it may incur;</text> </level> <level label="6"> <text>covenant as to:</text> <level label="i"> <text>the bonds to be issued;</text> </level> <level label="ii"> <text>their issuance, in escrow or otherwise; and</text> </level> <level label="iii"> <text>the use and disposition of their proceeds;</text> </level> </level> <level label="7"> <text>provide for the replacement of lost, destroyed, or mutilated bonds;</text> </level> <level label="8"> <text>covenant against extending the time for the payment of its bonds or interest on them;</text> </level> <level label="9"> <text>redeem the bonds, covenant for their redemption, and provide the terms and conditions for their redemption;</text> </level> <level label="10"> <text>covenant, subject to the limitations in this Division II, as to:</text> <level label="i"> <text>the rents and fees to be charged in the operation of a housing project or projects;</text> </level> <level label="ii"> <text>the amount to be raised each year or other period by rents, fees, and other revenues; and</text> </level> <level label="iii"> <text>the use and disposition of the rents, fees, and other revenues;</text> </level> </level> <level label="11"> <text>create or authorize the creation of special funds for money held for construction or operating costs, debt service reserves, or other purposes, and covenant as to the use and disposition of the money held in those funds;</text> </level> <level label="12"> <text>prescribe any procedure by which the terms of contracts with bondholders may be amended or abrogated, the dollar amount of bonds whose holders must consent to an amendment or abrogation, and the way in which consent may be given;</text> </level> <level label="13"> <text>covenant as to the use of any or all of the authority’s real or personal property, the replacement of the property, the insurance to be carried on the property, and the use and disposition of insurance money;</text> </level> <level label="14"> <text>covenant as to the rights, liabilities, powers, and duties arising on the breach by it of a covenant, condition, or obligation;</text> </level> <level label="15"> <text>covenant and prescribe as to the events of default and terms and conditions on which any or all of its bonds become or may be declared due before maturity, and as to the terms and conditions on which a declaration and its consequences may be waived;</text> </level> <level label="16"> <text>vest in a trustee or trustees or in the bondholders or any proportion of them the right to enforce:</text> <level label="i"> <text>payment of the bonds; or</text> </level> <level label="ii"> <text>covenants securing or relating to the bonds;</text> </level> </level> <level label="17"> <text>vest in a trustee or trustees the right, if the authority defaults, to:</text> <level label="i"> <text>take in possession, use, operate, and manage all or part of a housing project;</text> </level> <level label="ii"> <text>collect the rents and revenues; and</text> </level> <level label="iii"> <text>dispose of the money in accordance with the agreement of the authority with the trustee or trustees;</text> </level> </level> <level label="18"> <text>provide for the powers and duties of a trustee or trustees and limit the liabilities of the trustee or trustees;</text> </level> <level label="19"> <text>provide the terms and conditions on which the trustee or trustees or bondholders or any proportion of them may enforce any covenant or rights securing or relating to the bonds;</text> </level> <level label="20"> <text>make other covenants of a character like or unlike that of the covenants expressly authorized under this section; and</text> </level> <level label="21"> <text>make covenants and do acts and things that, although not listed in this section:</text> <level label="i"> <text>are necessary, convenient, or desirable to secure the bonds of the authority; or</text> </level> <level label="ii"> <text>in the discretion of the authority, will tend to make the bonds more marketable.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A pledge made by an authority is binding from the time the pledge is made.</text> </level> <level label="2"> <text>The lien of the pledge, without any physical delivery or further act, attaches immediately to revenues or property pledged and thereafter received by an authority.</text> </level> <level label="3"> <text>The lien is binding against all persons having claims against the authority, whether or not:</text> <level label="i"> <text>those persons have notice of the pledge; or</text> </level> <level label="ii"> <text>the determination or other instrument has been recorded or filed.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="12-705" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds"> <level label="a"> <text>In addition to all other rights that a contract may confer on an obligee of an authority, subject only to binding contractual restrictions, the obligee may:</text> <level label="1"> <text>by a writ of mandamus or a proceeding at law or in equity, compel the authority and the authority’s commissioners, officers, agents, or employees to perform each term, provision, and covenant contained in a contract of the authority with or for the benefit of the obligee;</text> </level> <level label="2"> <text>require the carrying out of any covenant or agreement of the authority and the fulfillment of all duties imposed on the authority by this Division II; and</text> </level> <level label="3"> <text>by a proceeding in equity, enjoin any unlawful act or thing or the violation of any right of the obligee.</text> </level> </level> <level label="b"> <level label="1"> <text>By resolution, trust indenture, mortgage, lease, or other contract, an authority may confer the right to take action under subsection (c) of this section if a default, as defined in the resolution or instrument, occurs.</text> </level> <level label="2"> <text>The right may be conferred on an obligee that:</text> <level label="i"> <text>holds or represents a specified amount in bonds or notes; or</text> </level> <level label="ii"> <text>holds a mortgage, deed of trust, security instrument, or lease.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>An obligee that has the right under subsection (b) of this section to take action under this subsection may, by a proceeding in a court of competent jurisdiction:</text> <level label="i"> <text>have possession of all or part of a housing project surrendered to any such obligee;</text> </level> <level label="ii"> <text>require the authority and its commissioners to account as if the authority and its commissioners were trustees of an express trust; and</text> </level> <level label="iii"> <text>have a receiver appointed for all or part of a housing project and its rents and profits.</text> </level> </level> <level label="2"> <text>If a receiver is appointed, the receiver may:</text> <level label="i"> <text>enter and take possession of the housing project or any part of the housing project;</text> </level> <level label="ii"> <text>operate and maintain it; and</text> </level> <level label="iii"> <text>collect and receive all fees, rents, revenues, or other charges thereafter arising from it.</text> </level> </level> <level label="3"> <text>The receiver shall keep the money in a separate account or accounts and apply the money in accordance with the obligations of the authority as the court directs.</text> </level> </level> </section>