(a)      (1)      Notwithstanding any other provision of this section and § 1-501 of this article, Montgomery County may provide by local law for the guarantee by Montgomery County of the principal and interest on bonds issued by the Housing Opportunities Commission of Montgomery County 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 fund-related reserves and costs approved under the provisions of this section. Mortgage loans so financed in part must be insured in part by the Federal Housing Administration, the Maryland Housing Fund, a private mortgage insurer which is approved by the Federal National Mortgage Association or the Federal National Mortgage Loan Corporation and which is authorized to do business in the State of Maryland, or by any combination of such insurers. The Housing Opportunities Commission shall adhere to the terms and conditions imposed by the county government in providing the guarantee on any bonds issued pursuant to this section and § 1-501 of this article. Where such guaranteed revenue bonds will finance the total cost of such housing, the Housing Opportunities Commission shall also adhere to any requirements imposed by the county government after the issuance of the bonds to assure or protect the financial solvency of the project. The total principal of the bonds guaranteed under this authority may not exceed $50,000,000. The bonds authorized to be guaranteed by this section are subject to the provisions of § 312 of the Montgomery County Charter, except as follows: (i) the guaranteed bonds may be structured with substantially level debt service payments, and with interest only payments during the projected period for construction or rehabilitation of the housing project financed with bonds issued pursuant to this section and § 1-501 of this article; (ii) the guaranteed bonds shall be issued on a serial maturity plan, provided that if required for market acceptance and approved by the county government in the manner specified by the County Council resolution adopted pursuant to the approval process set forth in paragraph (3)(ii) of this subsection, a portion of each issue may be sold as term bonds structured with mandatory sinking fund payments.

            (2)      Upon determination by the Housing Opportunities Commission to issue bonds under this authority, the Housing Opportunities Commission shall provide the County Executive 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:

                  (i)      Terms and conditions of the bonds;

                  (ii)      Estimated bond interest rate, and the basis for the estimate;

                  (iii)      Estimated timing and other provisions concerning the advertising and sale of the bonds;

                  (iv)      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;

                  (v)      Detailed estimates of operating cost and debt service;

                  (vi)      Schedules of reserves for depreciation and major maintenance;

                  (vii)      Separate schedules 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;

                  (viii)      Separate schedules 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 for it or use of the devices;

                  (ix)      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; and

                  (x)      Description of the accounting system for recording and controlling expenditures of bond funds, debt service, operating cost, reserves, and revenues. Each project shall be established as an independent accounting entity with respect to revenues, expenditures, debt service, and reserves.

            (3)      The local law implementing this authority shall provide procedures for review and approval of the issuance of bonds guaranteed by the county government, including, but not limited to, the following:

                  (i)      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 recommend whether the proposed bond guarantee should be approved and any terms and conditions advisable for the approval. The County Executive's recommendation shall include a statement that the proposed project is fully self-supporting. This statement of feasibility shall be supported by an acceptable 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.

                  (ii)      After considering the recommendations of the County Executive and after public hearing, the County Council shall approve, approve with modifications, or disapprove the proposed bond guarantee, and specify the terms and conditions for any 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 of controlling the expenditures of the bond funds and the revenues and expenditures for projects financed by the bond funds.

                  (iii)      The approval of the bond guarantee by the County Council shall be submitted to the County Executive within 3 days for concurrence. If the County Executive does not communicate disapproval and reasons for the disapproval to the Council within 10 days after receipt, the Council's approval shall stand. If the County Executive disapproves, the Council may override that disapproval by vote of at least 6 members.

                  (iv)      The approval of the bond guarantee may be rescinded by resolution of the Council adopted at any time prior to the advertisement of the bonds or in the case of a private sale, the sale of the bonds or the distribution of a related offering circular, whichever shall first occur.

            (4)      Notwithstanding any other provisions of this section and § 1-501 of this article, upon request of the Housing Opportunities Commission, Montgomery County may allocate by local law a portion of the total amount of the guarantee authorized by this section, in an amount to be determined by such local law. The County Executive may from time to time approve by executive order the utilization of all or a part of such allocation as a bond guarantee, in which event no additional approval of the bond guarantee by the County Council shall be required. Pursuant to such executive order, the Housing Opportunities Commission may issue bonds guaranteed by all or a part of the allocation, 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 approved under the provisions of this section. 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 the Federal National Mortgage Association or the Federal National Mortgage Loan Corporation and which is authorized to do business in the State of Maryland, or by any combination of such insurers.

            (5)      The Housing Opportunities Commission shall provide to the Montgomery County government annual audits performed by an independent certified public accountant licensed in the State of Maryland, on projects financed by bonds guaranteed by Montgomery County. In addition to providing appropriate certified financial statements, the independent auditor shall provide a management letter on the financial soundness of the projects. Notwithstanding the foregoing independent audits, financial and compliance audits on projects financed by bonds guaranteed by Montgomery County may be undertaken by the county government as necessary.

      (b)      Any bond reciting in substance that it has been issued by the Housing Opportunities Commission of Montgomery County to aid in financing a housing project for persons of eligible income shall be considered conclusively, in any suit, action, or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued for a housing project of such character.

      (c)      Bonds of the Housing Opportunities Commission of Montgomery County may be sold either at public or private sale in the manner and upon the terms as are authorized by resolution of the Commission or the authorities.