On January 29, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 327 – Affordable Housing Payment in Lieu of Taxes Expansion Act.
This bill offers counties a practical and flexible tool for promoting the development and sustainability of affordable rental housing through Payment In Lieu of Taxes (PILOT) agreements.
This bill authorizes counties to enter into PILOT agreements with property owners who dedicate at least 50% of their rental units to affordable housing for households earning 60% or less of the area’s median income. These agreements facilitate targeted adjustments to property tax obligations in exchange for negotiated payments and a binding 15-year affordability commitment.
SB 327 offers a thoughtful and balanced strategy to address these pressing issues, enabling counties to incentivize affordable housing development while maintaining fiscal accountability. By offering tailored incentives aligned with local priorities, this bill creates a pragmatic pathway for expanding affordable housing access across Maryland.
SB 327’s cross-file, HB 390, was heard on February 4 in the House Ways and Means Committee. Kevin Kinnally testified in support of this bill.
SB 327 was heard in the opposite chamber, the Ways and Means Committee, on March 25. MACo submitted written testimony in support of this bill.
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