County approves transfer of $3.84 million housing bond allocation; backs $150,000 playground grant application

The Board of County Commissioners for St. Mary's County on Aug. 26 authorized the transfer of the county's 2014 housing bond allocation of $3,843,230 to the Maryland Department of Housing and Community Development and approved a resolution supporting a separate $150,000 Community Legacy grant application for playground improvements at the Dr. J. Patrick Jarbo Family Education Center in Lexington Park.

The transfer moves the county's federal tax-exempt bond allocation into the state's Maryland Mortgage and Maryland Home Credit Programs, which the presenters said lets the state handle bond issuance and offer 30-year fixed mortgages to eligible county residents. Dennis Nicholson, executive director of the Housing Authority of St. Mary's County, told commissioners the statewide program produced a 4 percent fixed-rate mortgage as of the previous day and a separate veterans product at about 3.75 percent, both with no points.

Placing the allocation in the statewide pool avoids the county's legal and bond-issuance costs required to run a local program, officials said. Nicholson said last year's bond funds assisted 21 St. Mary's County homeowners and that the state offers an alternate option of a federal tax credit of up to $2,000 a year in lieu of the lower mortgage rate for some buyers.

Commissioners asked about eligibility. Nicholson said income limits apply (as an example, a family of three with income under about $98,000 may qualify) and that the program targets first-time homebuyers or former owners who stopped owning a home roughly three years earlier. He also said protections against speculation exist, including payback requirements if a home purchased under the program is sold before nine years.

On the community legacy request, the commissioners voted to sign a nonbinding resolution supporting a Housing Authority application for $150,000 to install a poured, rubberized playground surface on approximately 9,000 square feet at the Jarbo Family Education Center. The housing authority said the surface is permeable and improves accessibility and durability for the large number of children who use the playground; the authority said the request requires no county dollars or county match.

Both measures passed by voice vote. Commissioner Cynthia L. Jones moved approval of the housing bond transfer and Commissioner Todd B. Morgan seconded; the motion carried. Commissioner Morgan moved approval of the resolution supporting the community legacy application; Commissioner Daniel L. Morris seconded; the motion carried.

The presenters advised residents to contact participating lenders or the Maryland Mortgage Program website for more information and cited an 800-number for state assistance. Officials said participating lenders in the state list are the usual starting point for interested buyers.

The board's action does not create a local mortgage program: it shifts the county allocation to the state's pool for the Maryland programs and signals county support for the daycare playground grant application.

Votes at a glance: - Transfer of 2014 housing bond allocation of $3,843,230 to Maryland Department of Housing and Community Development (Maryland Mortgage and Maryland Home Credit Programs). Mover: Commissioner Cynthia L. Jones. Seconder: Commissioner Todd B. Morgan. Outcome: approved (voice vote). - Resolution of support for Housing Authority FY2015 Community Legacy application requesting $150,000 for playground improvements at Dr. J. Patrick Jarbo Family Education Center. Mover: Commissioner Todd B. Morgan. Seconder: Commissioner Daniel L. Morris. Outcome: approved (voice vote).

Ending: County staff said they will continue public outreach through participating lenders and the state program materials and will return to the board with implementing documents or further packets if needed.