Conduit Street

Legislation recently introduced, HB 1337, would require banks and investment companies that foreclose on a home to pay for securing and maintaining the property.  In addition, the legislation would authorize counties and municipalities to enact a local law for the same purpose, including the authority to institute a civil penalty if the property is not being secured and maintained.

According to an article in the Washington Examiner, HB 1337, sponsored by members from Prince George’s and Charles Counties,  would address the large number of foreclosed properties being neglected in some neighborhoods.

Experts say foreclosures already bring down a neighborhood’s property value — but neglected properties exacerbate the problem.

“When foreclosures … are vacant or abandoned, those properties are not kept up or maintained, so it not only pulls down the value when it’s finally sold, but also the perceived value when someone drives through the neighborhood,” Daren Blomquist, spokesman for the foreclosure tracking firm RealtyTrac, told The Washington Examiner this month.

Funding made available through the federal Small Business Jobs Act will enable Maryland small businesses to expand and promote job creation. The Baltimore Sun reports that an announcement made Thursday by the U.S. Treasury and Maryland economic development officials revealed the state will be receiving $23 million dollars to promote business growth .

The funding, available through an initiative of the newly enacted federal Small Business Jobs Act, is designed to leverage a total $230 million in financing for small businesses and expected to create or retain thousands of jobs, said Christian S. Johansson, secretary of the state Department of Business and Economic Development. Johansson announced the state’s allocation from the State Small Business Credit Initiative during a conference call with reporters along with Gene Sperling, counselor to Treasury Secretary Tim Geithner.

Sperling said that Gov. Martin O’Malley helped pave the way for the state small business initiative by gaining the support of 28 governors who asked President Barack Obama to include funding for state loan guarantee programs in the federal legislation.

“Across the country there were excellent innovative partnerships encouraging commercial lending to small business that were in greater demand than ever before… but being cut back or constrained because of the state budget crisis,” Sperling said. “It became very clear that if the federal government could provide additional seed money to programs that were up and going, this money could have a very strong leveraging effect and get out very quickly to small businesses.”

Maryland will be able to apply for the federal funds for programs that have private lenders as partners and extend credit to small businesses. 

The Maryland Homeowners Association (MHA) is a non-profit, all-volunteer, nonpartisan, statewide organization that provides good governance information and supports the enactment and improvement of county and state laws protecting the rights of homeowners in condominium associations, homeowner associations and cooperatives.  Resources found on their website include information on homeowners rights and mechanisms for resolving homeowner/association disputes.  Individuals needing assistance can also call, 301-654-9242, or email mail@marylandhomeownersassociation.info.

A workgroup, composed of the Maryland State Police, Baltimore City Police, Baltimore County Police, the Maryland Chiefs and Sheriffs Association, the Maryland Municipal League, and MACo, met yesterday to begin working on the implementation of the scrap metal legislation.  SB 99, which passed on the last day of the session, provides for statewide regulation of scrap metal dealers.  The Maryland State Police (MSP) is providing statewide coordination and oversight for the bill’s implementation.

As passed by the General Assembly,  local governments have the authority to license junk dealers and scrap metal processors.  However, this new State law supersedes any local laws that a jurisdiction may have in effect with respect to the regulation of the resale of junk or scrap metal.  The bill also requires local governments to designate by resolution the primary law enforcement unit to receive records as specified by the bill.

The workgroup is in the process of pulling together pertinent information to assist local governments with implementing this legislation.  This will include an overview of the bill and its specific requirements, a guidance document, a listing of currently licensed scrap metal dealers, a resolution template, and the licensing structures in Baltimore City and Baltimore County.  Once available, this information will be posted on the MACo blog.

For ease of implementation, MSP is proposing  that the Regional Automated Property Information Database (RAPID) be used and that the current primary law enforcement designations under this system apply.  The links below contain the RAPID Standard Operating Procedures and primary law enforcement designations.

RAPID Standard Operating Procedures
Primary Law Enforcement Designations for RAPID

Scrap metal dealers contacting local law enforcement for registration purposes can be referred to the RAPID Help Desk at Rapid-helpdesk@mdsp.org or 443-986-1427.

The workgroup is also trying to determine which local governments currently license and/or regulate scrap metal dealers.  If your local government currently has a local law in place for the licensing or regulation of scrap metal dealers, or a local law that designates a primary law enforcement unit, please email this information to Michele Dinkel, Research Associate, MACo, at mdinkel@mdcounties.org.

Once all local jurisdictions approve a resolution designating the primary law enforcement unit, MSP will convene a meeting to further discuss implementation of the bill.  This is an emergency bill which will take effect on the day the Governor signs it.  This could be as early as May 4, 2010.

Stay tuned to the MACo blog, Conduit Street, for more information.