(a)      It is hereby found and declared that there exists within Montgomery County a critical shortage of decent, safe, and sanitary dwelling accommodations available either to rent or purchase which persons of eligible income can afford and that, as a result, such persons are forced to occupy overcrowded and congested dwelling accommodations, or are required to pay an inordinate share of their income for shelter; that the aforesaid conditions necessitate excessive and disproportional expenditures of public funds for public health and safety, fire and accident protection, and other public services and facilities; that there exists within Montgomery County a public emergency caused by, among other things, rapidly escalating construction costs, operating and maintenance expenses, and the increase in conversions of existing rental facilities to condominium projects; that the problems created by or resulting from these inflationary conditions and conversions are many and serious and include major displacement of large numbers of tenants, including elderly individuals or individuals with disabilities, from their dwelling units, scarcity of low and moderate income units on the market when demand for such units is increasing, inadequate numbers of rental units available, planned or under construction to replace the rental units being converted to condominiums and frustration of general plan concepts of balanced housing mix and adequate provision for housing needs of all economic segments of the community; that the shortage of decent, safe, and sanitary dwellings cannot wholly be relieved through the operation of private enterprise; and that the construction of housing for persons of eligible income, and the expenditure of public funds to assist in securing the production or availability of such housing for the purposes set forth in this subsection are, therefore, not competitive with private enterprise; and that the necessity for such housing and the expenditure of public funds in the public interest, for the purposes stated and the provisions hereinafter enacted, are hereby declared as a matter of legislative determination to be valid public purposes.

      (b)      (1)      In Montgomery County, the public body corporate and politic established pursuant to this article, heretofore known as the Housing Authority of Montgomery County, shall be known as the Housing Opportunities Commission of Montgomery County and shall have 7 commissioners appointed and exercising the powers and duties as set forth in this article.

            (2)      The County Executive, with the approval of the County Council, shall appoint or remove the Commissioners of the Housing Opportunities Commission.

            (3)      After June 30, 1982, the County Council, prior to approval of each appointment to the Commission, shall conduct a public interview of the County Executive's nominee for appointment to the Commission.

            (4)      The Commissioners shall be appointed for a term of office of 5 years.

      (c)      The Housing Opportunities Commission of Montgomery County shall constitute a public body corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this article. In addition to the powers enumerated in this article, the Commission shall have the authority to exercise all or any part or combination of such powers to provide for housing or housing projects for persons of eligible income; provided, however, that the exercise of such power is pursuant to and in accordance with local law or a contract or contracts with Montgomery County. For purposes of this section, the phrase "persons of eligible income" shall mean persons who individually or as part of a family unit lack sufficient income or assets (as determined by the Montgomery County Executive or his designee) to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings without overcrowding. With respect to elderly individuals or individuals with disabilities or persons and families with other special needs, the meaning of the phrase "persons of eligible income" may be adjusted by the County Executive or his designee, if other criteria are considered more appropriate in achieving the public purposes stated in subsection (a) of this section. The determination of persons of eligible income by the County Executive under this section is conclusive of the matters determined. The County Executive may amend the meaning of "persons of eligible income" by issuing a proposed executive regulation. The regulation will become effective only after a public hearing held in accordance with procedures established by the County Council.

      (d)      In addition to the powers enumerated in this article and any powers given by Montgomery County by local law, the Housing Opportunities Commission of Montgomery County, in providing housing for persons of eligible income in accordance with subsection (c) above, shall have the following powers:

            (1)      To make mortgage loans and make rent subsidy payments to persons of eligible income.

            (2)      To make construction loans and long-term mortgage loans to any person, firm, partnership, association, joint venture, or corporation, public or private, to produce housing for persons of eligible income.

            (3)      To purchase mortgages secured by housing for persons of eligible income.

      (e)      (1)      In addition to the powers enumerated in this article, the Housing Opportunities Commission may exercise its powers as granted by this article irrespective of the fact that such activities may displace or limit economic competition.

            (2)      The powers granted to the Housing Opportunities Commission pursuant to paragraph (1) of this subsection shall not be construed:

                  (i)      To grant to the Commission powers in any substantive area not otherwise granted to the Commission by other public general or public local law;

                  (ii)      To restrict the Commission from exercising any power granted to the Commission by other public general or public local law or otherwise;

                  (iii)      To authorize the Commission or its officers to engage in any activity which is beyond their power under other public general law, public local law, or otherwise; or

                  (iv)      To preempt or supersede the regulatory authority of any State department or agency under any public general law.

      (f)      For purposes of this section, the phrase "housing or housing project for persons of eligible income" means any undertaking or project, or portion thereof, including lands, buildings and improvements, real, mixed and personal properties, or interest therein that is planned, acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved for purposes of providing dwelling accommodations a substantial portion of which accommodations shall be for persons of eligible income, and such streets, roads, sewer and waterlines, and other supporting public and private facilities intended for commercial, educational, cultural, recreational, community, or other civic purposes as may be deemed necessary for sound community development. The phrase "substantial portion" means that 50 percent or more of the dwelling accommodations are initially occupied, after financing for such project is provided by the Housing Opportunities Commission, by persons of eligible income, or that 20 percent or more of the dwelling accommodations are for low income persons assisted or who are eligible to be assisted with federal subsidies. If the owners of the project certify to the Housing Opportunities Commission that they will make their best efforts to comply with this section, the "substantial" requirement is considered satisfied for purposes of this section.

      (g)      (1)      In this section "assisted family housing" has the definition provided by the Montgomery County government.

            (2)      The Housing Opportunities Commission shall hold a public hearing on its proposed assisted family housing.

            (3)      The public hearing shall be publicized by a display advertisement in 2 newspapers of general circulation in Montgomery County at least 15 days prior to the public hearing.

            (4)      The Housing Opportunities Commission, subsequent to the public hearing, shall issue a report of its findings and conclusions on its proposed assisted family housing which was the subject of the public hearing.

            (5)      The provisions of this subsection are not applicable to proposed scattered sites and moderate priced dwelling units, as those terms are defined by Montgomery County law, that are acquired for assisted family housing, proposed by the Housing Opportunities Commission, and for which a public hearing is not required by Montgomery County law.

      (h)      (1)      Before December 1 of each year, the Housing Opportunities Commission shall issue an annual financial report for the previous fiscal year based on a certified audit.

            (2)      A summary of the report shall be published in at least 2 newspapers of general circulation in Montgomery County.

      (i)      (1)      The Housing Opportunities Commission shall submit its proposed budget to the Montgomery County Council by May 1 of each year.

            (2)      The public shall have an appropriate opportunity to comment on the proposed budget of the Housing Opportunities Commission.

            (3)      The Montgomery County Executive and Council may require and select an independent certified public accountant or firm of certified public accountants licensed in Maryland to perform an audit of the books of the Housing Opportunities Commission who shall be paid out of the operating budget of the Commission.