BA/hoccon.pr       96-69                 Contact: David Weaver, 301-217-6530   
                                          or Elizabeth Davison, 301-217-3600

COUNTY EXECUTIVE ANNOUNCES
CLOSING COST LOAN PROGRAM
FOR FIRST-TIME HOME BUYERS               For Immediate Release: Feb. 26, 1996



     Saying it would "enhance Montgomery County's reputation as an innovator
of housing programs,"  Montgomery County Executive Douglas M. Duncan today
announced his proposal to launch a Closing Cost Assistance Program for first-
time home buyers.
     The program would provide loans of up to $7,500 to cover either closing
costs or a down payment for moderate-to-middle-income buyers who live or work
in Montgomery County.  It would serve those with incomes at or below the area
median  -- currently $68,300 for a family of four.
     Duncan announced details of the initiative at the fifth annual 
Montgomery County Conference on Affordable Housing. "This program embodies the
commitment I made at this conference last year when I said that we must ensure
that housing will be available for hard working families of all income
levels."
     "It also supports the tradition we have in Montgomery County of being at
the forefront of progressive housing programs which meet the needs of our
growing, changing population," he said.
     The Executive said he will submit legislation to support the program to
the County Council by early spring.
                                  -more-

COUNTY EXECUTIVE ANNOUNCES LOW-INTEREST LOAN PROGRAM                2-2-2-2

     Sale prices for homes purchased under the program must meet established
guidelines.  These include a maximum sale price of $180,000.  New or existing 
detached homes, townhouses and condominiums would be eligible.  The funds
could be used to purchase Moderately Priced Dwelling Units (MPDUs) or in
conjunction with Housing Opportunities Commission mortgage loans.
     The loans would carry below market interest rates and would be secured
by a promissory note, with no lien on the property.  Payments would be
amortized over five to seven years.  
     The principal for the loans would come from $10 million in County funds,
allocated over the next seven years, which would support a revolving loan pool
capable of providing 200 to 300 loans per year.  Officials expect the program
would get underway in the fall.
     To offset the cost of starting the program, Duncan is recommending the
County's current $500-per-year transfer tax exemption not be extended beyond
the current fiscal year.  "This will allow us to better direct scarce County
funds to those homebuyers who are most in need of assistance," said Duncan.
     County housing staff would establish policies and eligibility criteria
for the program.  The Housing Opportunities Commission would be responsible
for day-to-day administration. Loans would originate from and be serviced by
private lenders.
     For more information about the Closing Cost Assistance Program, contact
Elizabeth Davison, acting director, Department of Housing and Community
Development, 51 Monroe Street, 10th floor, Rockville, MD  20850; phone 301-
217-3600.
                                   # # #

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