Sec. 05.06.03.02. Purpose

A. The Maryland Housing Fund recognizes the important role homeownership plays in stabilizing and revitalizing neighborhoods and communities. The purpose of the Revitalization Program is to provide opportunities to lower the risk of lending by using M.H.F. insurance to stimulate the flow of private mortgage capital into areas which have suffered from decreasing homeownership and associated economic and social instability. In addition, the program makes homeownership possible for those who do not have the resources for a down payment and closing costs, both of which otherwise would be required without M.H.F. insurance.

B. From 1973 to 1978, the predecessor to the Program operated in Baltimore City only, and was called the Baltimore City Pilot Program. The Program demonstrated that the level of losses can be acceptable for high loan-to-value mortgages in older urban areas, and together with other factors contributed to the decrease of red-lining practices and the resurgence of private conventional mortgage lending in Baltimore City. The experience in Baltimore City also demonstrated the feasibility of extending the Program Statewide. Starting in 1978, the Program has been available Statewide.