§ 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.

HISTORY: 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.