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The purpose of replacement homes (conventional construction, modular or mobile) is to eliminate existing conditions of deterioration or obsolescence and to prevent their recurrence.
(a) Home replacement to be carried out under this program shall be only that necessary to bring the property into full compliance with all applicable state and county statutes, codes and ordinances. Replacement shall be limited to facilities reasonably necessary to accommodate the present occupancy and usage.
(b) The purpose of replacement is to eliminate existing conditions of deterioration or obsolescence and to prevent their recurrence. All construction shall be carried out in a workmanlike manner and be of such quality as to be durable and long lasting and in compliance with applicable state and county statutes, codes and ordinances. (1979 L.M.C., ch. 10, § 1.)
The loan proceeds available under this program shall be limited to those cases where the property owners' income and net worth precludes home replacement financing through normal banking or other financial channels. Where loans are made available from the homeowners' replacement loan fund, they shall be subject to the following requirements and limitations:
(a) Loans may be made to owner-occupants whose verified income does not exceed the section 8 lower income limits for the Washington Metropolitan Area as established from time to time by the U.S. Department of Housing and Urban Development. The county executive may make exception to those limits if a finding is made that an otherwise good risk is unable to obtain a conventional loan.
(b) Loans shall carry an interest rate of from one (1) to six (6) percent per annum. Repayment provisions shall be based upon the financial circumstances of the individual property owner. In determining the initial rate of interest the property owner shall not be expected to allocate, based on a loan term of forty-five (45) years, more than thirty-five (35) percent of his family gross income to the monthly costs of shelter (principal, interest, taxes, insurance, maintenance and utilities).
(c) Terms of the loan shall be based upon the owner's financial circumstances at the time of the loan commitment. If the initial rate of interest is three (3) percent or less, the interest rate must be increased to a higher rate upon a determination that thirty-five (35) percent of the property owner's family gross income is sufficient to pay the monthly costs of shelter (principal, interest, taxes, insurance, maintenance and utilities) at such higher rate.
The initial interest rate may be decreased upon a determination that the property owner will pay more than thirty-five (35) percent of family gross income for the monthly costs of shelter (principal, interest, taxes, insurance, maintenance and utilities) and undue financial hardship would occur if the interest rate remained as previously established.
(d) Security for loans made pursuant to this fund shall be of such a nature as will best protect the interests of the county at minimum costs and shall be determined on an individual basis pursuant to regulations to be established by the county executive.
(e) Existing mortgagees or lien holders whose mortgages or liens are secured by the existing improvements must consent to the removal of the existing improvements. Such mortgagees or lien holders shall have the option to make a reconstruction loan to the applicant if the parties so desire.
(f) The interest rate shall be increased to the market rate if the property is sold except that if the property is purchased by the Montgomery County housing opportunities commission, the interest rate shall be three (3) percent. If the property is purchased by a person who meets the eligibility requirements of subsection (a) of section 56-5, the interest rate shall be determined by subsection (b) of section 56-5. (1979 L.M.C., ch. 10, § 1.)
The homeowners' replacement loan fund is administered by the Director of Housing and Community Affairs, under regulations adopted by the County Executive under method (2). (Res. No. 6-2873, § 4; 1974 L.M.C., ch. 55, § 3; 1979 L.M.C., ch. 10, § 1; 1980 L.M.C., ch. 42, § 1; 1984 L.M.C., ch. 24, § 54; 1996 L.M.C., ch. 13, § 1.)
It is hereby found and declared that there exist in Montgomery County blighted areas, or slum conditions which require rehabilitation with the aid and assistance of Montgomery County; that the existence of such areas contributes to the spread of crime and disease, constitutes an economic and moral liability, decreases the tax base, reduces tax revenues, increases juvenile delinquency, aggravates traffic conditions and causes numerous traffic problems due to poor street design and layout; that the prevention and elimination of slum and blighted areas is a matter of public policy of the State of Maryland and Montgomery County. It is further found and declared that the existence of these conditions makes it necessary to acquire private property for urban renewal development and redevelopment and such acquisition is hereby declared to be for a public purpose. (Mont. Co. Code 1965, § 26-2; 1961, ch. 821, § 1.)
(a) The following terms, wherever used or referred to in this article, shall have the following meanings, unless a different meaning is clearly indicated by the context:
(b) Federal government shall include the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America.
(c) Slum area shall mean any area where the dwellings predominate, which, by reason of depreciation, over-crowding, faulty arrangement or design, lack of ventilation, light or sanitary facilities, or any combination of these factors, are detrimental to the public safety, health or morals.
(d) Blighted area shall mean an area in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation or other causes to an extent they no longer justify fundamental repairs and adequate maintenance.
(e) Urban renewal project shall mean undertakings and activities of Montgomery County in an urban renewal area for the elimination and for the prevention of, the development, or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan. Such undertakings and activities may include--
(1) Acquisition of a slum or blighted area or portion thereof;
(2) Demolition and removal of buildings and improvements;
(3) Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the urban renewal area the urban renewal objectives of this chapter in accordance with the urban renewal plan;
(4) Disposition of any property acquired in the urban renewal area (including sale, leasing or retention by the county itself) at its fair value for uses in accordance with the urban renewal plan;
(5) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the urban renewal plan; and
(6) Acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, unsanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities.
(f) Urban renewal area shall mean a slum area or blighted area or both, which the county council for Montgomery County designates as appropriate for an urban renewal project.
(g) Urban renewal plan shall mean a plan, as it exists from time to time, for an urban renewal project, which plan shall be sufficiently complete to indicate such land acquisition, demolition and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the urban renewal area, zoning and planning changes, if any, land uses, maximum density, and building requirements. (Mont. Co. Code 1965, § 26-3; 1961, ch. 821, § 1.)
(a) The county council for Montgomery County is hereby authorized and empowered to carry out and effectuate the purposes and provisions of this article:
(b) Generally. To carry out urban renewal projects, which shall be limited to slum clearance in slum or blighted areas and redevelopment thereof, or the rehabilitation of slum or blighted areas.
(c) Acquisition of land and property. To acquire in connection with such projects, within Montgomery County, Maryland, land and property of every kind and any right, title, interest, franchise, easement, or privilege therein, including land or property of any right therein already devoted to public use by purchase, lease, gift, option, condemnation, or any other legal means, for development or redevelopment purposes, including, but not limited to, the demolition, comprehensive renovation or rehabilitation thereof; provided, however, that any land or property owned by the State of Maryland shall not be acquired without the prior consent of the state.
(d) Mortgage disposal, etc., of real property. To mortgage, pledge, or otherwise encumber or dispose of any real property; provided, that statutory provision with respect to the acquisition, clearance, demolition or disposition of property by public bodies shall not apply to an urban renewal project and related activities unless the legislature shall specifically so state.
(e) Development, etc., of property. To develop or redevelop, including, but not limited to, the comprehensive renovation, or rehabilitation of any and all land or property acquired by any of the methods hereinbefore mentioned.
(f) Loans, grants, gifts, etc. To apply for and accept from the United States of America, the State of Maryland, or any department or agency thereof, or any other source, any loan, grant, gift, contribution or aid of any kind.
(g) Contracts, deeds, leases, etc. To make and execute all contracts, agreements, deeds, leases, franchises, or other legal instruments, for such term and under such conditions as may be necessary or convenient to exercise and carry out the provisions of this article, notwithstanding any limitations as to the term of years imposed by other laws on such contracts, agreements, deeds, leases or franchises.
(h) Public improvements. To plan, replan, install, construct, reconstruct, repair, open, close, abandon, or vacate streets, roads, sidewalks, public utilities, parks, playgrounds, and other public improvements in connection with an urban renewal project.
(i) Right of entry. To enter into any building or property in any urban renewal area in order to make inspections, surveys, appraisals, soundings or test borings.
(j) Holding, improving, insuring, etc., property acquired. To hold, improve, clear or prepare for redevelopment any property acquired in connection with urban renewal projects; to inspect or provide for the insurance of any real or personal property or operations of the county against any risks or hazards, including the authority to pay premiums on any such insurance.
(k) Plans, surveys, etc. To make or have made all surveys and plans necessary to the carrying out of the purposes of this article and to adopt or approve, modify and amend such plans, which plans may include, but are not limited to:
(1) Plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements;
(2) Plans for the enforcement of codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements; and
(3) Appraisals, title searches, surveys, studies, and other plans and work necessary to prepare for the undertaking of urban renewal projects and related activities; and to apply for, accept and utilize grants of funds from the federal government for such purposes.
(l) Relocation of displaced persons, etc. To prepare plans for the relocation of persons (including families, business concerns and others) displaced from an urban renewal area, and to make relocation payments to or with respect to such persons for moving expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the federal government.
(m) Organization, coordination, etc., generally. To generally organize, coordinate and direct the administration of the provisions of this article in order that the objective of remedying slum or blighted areas and preventing the causes thereof with Montgomery County may be most effectively promoted and achieved.
(n) Formulation of "workable program" to promote development, etc. To formulate a "workable program" for utilizing the powers and authority authorized by the Constitution of Maryland, and public general laws, in order to promote development and redevelopment in an urban renewal area.
(o) Fiscal matters generally. To appropriate such funds and make such expenditures as may be necessary to carry out the purposes of this article, and to levy taxes and assessments for such purposes; to borrow money, and to give such security as may be required therefor; to invest any urban renewal funds held in reserve or sinking funds or any such funds not required for immediate disbursement, in property or securities which are legal investments for other municipal funds.
(p) Creation, appointment, etc., of urban renewal commission, etc. To create, appoint, and vest jurisdiction or authority to exercise or perform all or any part of the powers contained in this article, in a suitable board, agency or commission; to designate the number, term, compensation and duties of said commission; to require that no officer, official or employee of such commission, or the county council, shall become financially interested in any way in any land or property which may be acquired for an urban renewal project.
(q) Condemnation. To condemn land or property, including improvements, and any other rights, title, and interest therein, in the name of the County for an urban renewal project, under Title 12, Subtitle 1 of the Real Property Article of the Maryland Code.
(r) Temporary operation, management, etc., of property acquired. To operate, manage and maintain temporarily any property acquired by Montgomery County in an urban renewal area, or for an urban renewal project, pending disposition of said property as authorized by this article, as may be deemed desirable even though not in conformity with the urban renewal plan.
(s) Sale, lease, etc., of property acquired. To sell, lease, convey, transfer or otherwise dispose of or retain any of such land or property, regardless of whether or not it has been developed, redeveloped, altered or improved and irrespective of the manner or means in or by which it may have been acquired, to any private, public or quasi-public corporation, partnership, association, person or other legal entity. Any lease or rental agreement entered into pursuant to this article, for any of the purposes or objectives contemplated by this article, is hereby declared to be exclusively for business or commercial purposes and the fee, interest, rent, or charge reserved to be paid shall not be subject to redemption by the lessee, tenant or their successors in title, except to the extent and in the manner set forth in such lease agreement. Such property shall be subject to such covenants, conditions and restrictions, including covenants running with the land as the county council may deem to be necessary or desirable to assist in preventing the development or spread of future slums or blighted areas or to otherwise carry out the purposes of this article. The purchasers or lessees and their successors and assigns shall be obligated to devote such real property only to the uses specified in the urban renewal plan, and may be obligated to comply with such other requirements as the county council may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on such real property required by the urban renewal plan. Such real property or interest therein shall be retained, sold, leased, or otherwise transferred at not less than its fair value for uses in accordance with the urban renewal plan. In determining the fair value of real property for uses in accordance with the urban renewal plan, consideration shall be given to the uses provided in such plan; the restrictions upon, and the covenants, conditions and obligations assumed by the purchaser or lessee or by the county council retaining property; and the objectives of such plan for the prevention of the recurrence of slum or blighted areas. The conveyance to a private purchaser or lessee may provide that such purchaser or lessee shall be without power to sell, or encumber, or lease, or otherwise transfer the real property without the prior written consent of the county council.
(t) Miscellaneous. To exercise all or any part or combination of powers granted herein. (Mont. Co. Code 1965, § 26-4; 1961, ch. 821, § 1; 2010 L.M.C., ch. 49, § 1.)
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