Title 19. Public Debt — Subtitle 8. Creation of Public Debt -- Financing Residential Mortgages in Cecil County

persons and families in many areas in Cecil County, including areas that contain presently stable neighborhoods and middle class residential housing, are unable to purchase, rehabilitate, and maintain decent, safe, and sanitary housing that provides an opportunity for home ownership either directly or through a condominium or cooperative form of ownership due to continuing increases in the cost of construction and rehabilitation, county taxes, heating and electricity expenses, maintenance and repair expenses, inflation, the cost of land, the cost of energy conservation measures, and the levels of borrowing costs;

the inability of families to purchase and maintain housing in the county results in:

the decline in new housing construction, and the decay of existing housing, has produced a critical shortage of adequate housing in the county that harms the economy of the county and the well–being of county residents;

without a program, private enterprise cannot construct or rehabilitate adequate housing for persons and families in the county;

forcing families to live in substandard housing is undesirable because it tends to decrease the interest of families in their communities, the maintenance of their property, and the preservation of their neighborhoods;

the county has a basic public interest in:

unless new facilities are constructed and existing housing, where appropriate, is rehabilitated, a large number of county residents have been and will be subject to hardship in finding decent, safe, and sanitary housing;

unless the supply of housing and the ability of persons and families to obtain mortgage financing is increased significantly and expeditiously, many county residents may be compelled to live in unsanitary, overcrowded, or unsafe conditions to the detriment of the health and welfare of the residents and of their community;

increasing the housing supply of the county and the ability of persons and families to obtain mortgage financing will:

a major cause of the housing crisis is the lack of affordable loans so that persons and families can own and maintain decent, safe, and sanitary housing;

an additional major cause of the housing crisis is the lack of money available to finance housing by the private mortgage lending institutions of the State, frustrating the maintenance, sale, and purchase of existing housing in the county;

the powers authorized under this subtitle and the expenditure of public money necessary and appropriate to carry out a program are a valid public purpose; and

the enactment of this subtitle is in the public interest.

the program;

the amount of bonds to be issued under the program;

the interest rate of the bonds, or the manner of determining the rate; and

other provisions not inconsistent with this subtitle to effect the financing of the mortgage loans.

the need for the financing authorized under this subtitle;

the types of housing available and needed in the county; and

other factors that the governing body finds appropriate to establish a program.

referendum; or

other procedures that do not apply to all ordinances or resolutions enacted by Cecil County.

Notwithstanding any other law, Cecil County may issue revenue bonds, notes, or other evidence of indebtedness to accomplish the purposes of this subtitle.

The county may use money borrowed under this subtitle to make funds available, directly or through mortgage lending institutions, for residential mortgage loans by:

loan agreements;

security agreements;

loan servicing agreements;

forms of mortgages, notes, and deeds of trust; and

other appropriate securities, documents, agreements, and provisions.

A program shall require a down payment of at least 10% of the purchase price of the dwelling.

A bond issued under this subtitle:

real property or other interests held by stock cooperatives and condominiums and their unit owners;

servicing agreements;

condemnation proceeds;

proceeds of private mortgage insurance or casualty and special hazard insurance; or

any other security that Cecil County determines is appropriate.

make residential mortgage loans in Cecil County, either directly or through mortgage lending institutions;

establish reserve funds;

pay necessary financing expenses; or

advance the payment of interest on the bonds during the 3 years after the date of the bonds.

revenues derived from interest, mortgage insurance proceeds, casualty or special hazard insurance proceeds, other insurance proceeds, or condemnation proceeds; or

other revenues derived from or related to loans made under a program.

are not debts or charges against the general credit or taxing powers of Cecil County within the meaning of any constitutional or county code provision or statutory limitation; and

do not give rise to any pecuniary liability of the county.

is issued under this subtitle; and

is not an indebtedness to which the faith and credit of the county is pledged.