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No certificates of indebtedness shall be issued to the extent that the principal amount thereof, together with the principal amount of all bonds, certificates of indebtedness, notes or other obligations theretofore issued by the county and then outstanding which affect the debt limit of the county, shall exceed ten (10) percent upon the assessable basis of the county at the time of issuance of such certificates of indebtedness. (Mont. Co. code 1965, § 5-10; 1978 L.M.C., ch. 36, § 1.)
Editor’s note—See County Attorney Opinion dated 11/25/02 discussing the details of the lease-leaseback of a new dispensary facility discussed and determined to be permitted by law.
(a) Under the authority of Title 16 of the Housing and Community Development Article of the Maryland Code, Montgomery County, may, at any time and from time to time, guarantee, upon its full faith and credit, revenue bonds of the housing opportunities commission in a total amount not exceeding $50,000,000 to finance the acquisition, provision, development, or rehabilitation of housing at rental rates and prices not being offered in adequate quantity by the private sector, or to finance in whole or in part mortgage loans secured by such housing, and to fund related reserves and costs approved under Title 16 of the Housing and Community Development Article of the Maryland Code and this Chapter.
(b) Each mortgage loan so financed in part must be insured in part by the Federal Housing Administration, the Maryland Housing Fund, or a private mortgage insurer which is approved by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and is authorized to do business in Maryland, or by any combination of such insurers.
(c) The Housing Opportunities Commission must comply with any terms and conditions imposed by the County in providing the guarantee of any bonds. If guaranteed revenue bonds will finance the total cost of such housing or the total amount of the mortgage loans for such housing, the Commission must also comply with any requirements imposed by the County after the bonds are issued to assure or protect the financial solvency of the project.
(d) The issuance of such bonds must be subject to review and approval by the County as hereinafter provided. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1; 1988 L.M.C., ch. 28, § 1; 2010 L.M.C., ch. 49, § 1; 2013 L.M.C., ch. 4, § 1.)
(a) Upon determination by the housing opportunities commission of the county to issue bonds under the authority of article 44A, Annotated Code of Maryland and this chapter, the housing opportunities commission shall provide the county executive and the county council simultaneously with information concerning the proposed bonds and the housing projects to be benefited by the funds from the sale of such bonds, including, but not limited to, the following:
(1) Terms and conditions of the bonds;
(2) Estimated bond interest rate, and the basis for the estimate;
(3) Estimated timing and other provisions concerning the advertising and sale of the bonds;
(4) Description of the proposed project with detailed estimates of construction and related costs to bring it to the point of readiness to rent or sell;
(5) Detailed estimates of operating cost and debt service;
(6) Schedules of reserves for depreciation and major maintenance;
(7) Rent schedule showing how, after allowance for vacancies, the revenues are expected to cover operating cost, debt service and capital cost, and reserves for depreciation and major maintenance;
(8) Separate schedule showing the cost, benefit and effect on rent schedules of additional safeguards to assure solvency of the project. These schedules would address such devices as mortgage insurance and debt service reserves, and would reflect the housing opportunities commission’s recommendation of whether or not to use the devices and the reasons therefor;
(9) Description of the terms and conditions for construction of the project, including any safeguards against construction default and the conditions under which construction financing is to be provided by the housing opportunities commission;
(10) Description of the accounting system for recording and controlling expenditures of bond funds, debt service, operating cost, reserves and revenues;
(11) Explanation of the use of any reserves relating to bonds issued for the benefit of the project;
(12) Explanation of the potential obligations of the county arising from a default with respect to any bonds issued for the benefit of the project; and
(13) Any additional information which the county executive or county council may request from the housing opportunities commission within ten (10) days of receipt of all of the foregoing information.
(b) After consultation with the housing opportunities commission, the county executive may defer the requirement for furnishing any of the foregoing information if the county executive determines that such a deferral will avoid delays which would adversely affect the timing of the financing for the proposed project. In any event, all of such information shall be furnished to the county executive and the county council at or prior to the public hearing hereinafter required.
(c) The county executive shall consider and comment on the feasibility of the proposed bond guarantee and each housing project contemplated by the proposed bond guarantee and shall recommend to the county council whether the proposed bond guarantee should be approved, including any terms and conditions which he or she may deem advisable for approval. The county executive’s recommendations shall include a statement that the proposed project is fully self-supporting. The county executive’s recommendations shall be supported by an independent feasibility study or studies furnished by the housing opportunities commission. The furnishing of the independent feasibility study or studies may be waived by the county executive in the case of projects financed, insured, or assisted by the state or federal government. The county executive’s recommendations shall be made not later than the public hearing concerning a proposed bond guarantee. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1.)
Within forty-five (45) days from the date of the county council’s receipt of all of the information required to be furnished in connection with a proposed bond guarantee or from the date of deferral of a portion of such information by the county executive, whichever first occurs, the county council shall hold a public hearing. The public hearing shall be held after not less than fifteen (15) days’ notice by publication in a newspaper having general circulation in the county, giving the time, place and date of the hearing to afford an opportunity for the public to review the projects proposed to be benefited by the bond guarantee. After considering the recommendations of the county executive and after the public hearing, the county council shall approve, approve with modifications, or disapprove, the proposed bond guarantee, and shall by resolution specify such terms and conditions as it shall deem advisable for an approved bond guarantee. The terms and conditions shall include the maximum interest payable, the terms of the bond issue, the purposes for which the bond funds may be expended, and the method for controlling the expenditures of the bond funds and the revenues and expenditures for projects financed by the bond funds. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1.)
(a) The Clerk of the Council must submit any resolution of the Council approving a bond guarantee to the County Executive for approval within 3 days after adoption.
(b) If the County Executive does not communicate disapproval of the resolution and the reasons for the disapproval to the Council within 10 days after receiving the resolution, the Council’s approval stands. If the County Executive disapproves the resolution, the Council may override the disapproval by an affirmative vote of at least 7 Councilmembers.
(c) The Council may rescind the resolution approving a bond guarantee at any time before the bonds are advertised for public sale, or, in the case of a private sale, before the sale of the bonds or distribution of a related offering circular, whichever occurs first. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1; FY 1991 L.M.C., ch. 11, §1
; 2006 L.M.C., ch. 33, § 1; 2022 L.M.C., ch. 40
, § 1.)
(a) Each bond issued under this Chapter must be endorsed by the guarantee of the County in the following language: “The payment of interest when due and the principal at maturity is guaranteed by Montgomery County, Maryland. The full faith and credit and unlimited taxing power of Montgomery County is hereby pledged to the performance of this guarantee.”
(b) This guarantee must be executed in the name of the County and on its behalf on each bond by the signatures of the Director of Finance and the Clerk of the County Council, which signatures may be in facsimile.
(c) Each bond, so endorsed, is an unconditional general obligation of the County. The County hereby covenants and agrees that, if all funds available to the Housing Opportunities Commission to pay the principal of and interest on outstanding bonds authorized under this Chapter are insufficient for any reason to meet principal and interest payments, in each fiscal year when any such bond is outstanding, the County will levy or cause to be levied ad valorem taxes on all the assessable property in the County at a rate and amount sufficient to provide for the payment, when due, of the principal of and interest on all such bonds maturing in that fiscal year, and if the proceeds from such taxes prove inadequate, the County will levy additional taxes in the next fiscal year to make up any deficiency. (1978 L.M.C., ch. 36, § 2; 1983 L.M.C., ch. 32, § 1; 2006 L.M.C., ch. 33, § 1.)
Montgomery County, Maryland, allocates up to ten million dollars ($10,000,000.00) of the total amount of the guarantee authorized by article 44A, Annotated Code of Maryland to guarantee bonds of the Housing Opportunities Commission of Montgomery County, the proceeds of which bonds shall be used to finance in whole or in part mortgage loans secured by housing and to fund related reserves and costs. Mortgage loans so financed in part must be insured in part by the Federal Housing Administration, the Maryland Housing Fund, or a private mortgage insurer which is approved by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, and which private mortgage insurer is authorized to do business in the State of Maryland, or by any combination of such insurers.
The housing opportunities commission shall not issue bonds which are guaranteed by the amount so allocated unless and until (1) the housing opportunities commission has submitted to the county executive and the county council the information required by section 20-33 of this chapter, except to the extent the receipt of any such information has been deferred by the county executive pursuant to section 20-33; and (2) the county executive has approved by executive order the use of all or a portion of the allocation as a guarantee of bonds issued for the purposes stated in this section; and (3) the county council has approved the use of all or a portion of the allocation as a guarantee of bonds, or has taken no action in connection with the use of such allocation within ten (10) calendar days after receipt of notice of approval by the county executive by executive order. The county council within the ten (10) calendar days may extend the time for its action by resolution. In the event that the county executive approves by executive order and the county council approves or takes no action with respect to the use of all or a portion of the allocation as a bond guarantee, no public hearing or further approval with respect to the bond guarantee shall be required. (1983 L.M.C., ch. 32 § 1.)
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