Section 4-1208 - Participation by political subdivision or housing authority. - Maryland Statutes

§ 4-1208. Participation by political subdivision or housing authority.
 

(a)  Powers of political subdivision or housing authority.- A political subdivision or housing authority may participate in the Program and do all things necessary or convenient to its participation, including: 

(1) developing, acquiring, improving, owning, operating, and managing rental housing; 

(2) borrowing money; and 

(3) mortgaging, pledging, and granting a security interest in real or personal property related to a particular partnership project. 

(b)  Repayment of money.- The Department may not require a political subdivision or housing authority to repay money made available under the Program, unless the political subdivision or housing authority: 

(1) sells the partnership project; or 

(2) fails to operate the partnership project for the benefit of households of lower income in accordance with agreements between the Department and the political subdivision or housing authority. 

(c)  Security.- The Department shall secure the obligations of the political subdivision, housing authority, or private sector entity by using a mortgage, deed of trust, or other security device that the Department accepts on the property or on revenues derived from the property. 

(d)  Contribution of local money.-  

(1) To allow for more affordable rents, a political subdivision or housing authority may contribute local money, including locally administered federal money or federal rental assistance. 

(2) The contributions of political subdivisions or housing authorities under § 4-1207(a)(2)(iii) of this subtitle may include the costs of: 

(i) necessary studies, surveys, tests, plans, and specifications; 

(ii) architectural, design, engineering, and other special services; 

(iii) site preparation; 

(iv) indemnity and surety bonds and premiums on title and hazard insurance; and 

(v) other costs of development. 

(e)  Full faith and credit.- To participate in the Program and to receive loans, a political subdivision or housing authority may not be required to pledge its full faith and credit. 

(f)  Provisions of subtitle controlling.- For rental housing financed from the Fund and owned or managed by a housing authority, this subtitle supersedes: 

(1) §§ 12-401, 12-402, and 12-405 of this article; and 

(2) all other restrictions on tenant income under Division II of this article. 
 

[An. Code 1957, art. 83B, §§ 2-1102(b), 2-1105(4), 2-1107(a)-(e); 2005, ch. 26, § 2; 2006, ch. 63, § 6; chs. 64, 117.]