In a session marked for widespread interest in advancing policies promoting affordable and attainable housing across Maryland, multiple bills appear to be heading toward enactment. Here’s a rundown of the bills that are moving, and one high profile offering among the several that aren’t part of the “package” receiving support this session.
With a well-documented shortage of housing units across Maryland, stakeholders and interest groups advanced multiple bills to change the game for residential building. Unsurprisingly, a fleet of bills has advanced and seem likely to be signed into law later this spring.
Now that the “crossover” date has arrived, a clearer assessment of these bills has emerged – we summarize briefly, here:
Housing Certainty Act – clearer pathways for project approvals
HB 548 and SB 325
These two bills are moving in identical fashion, with multiple amendments responding to local governments and other stakeholders. The bill specifies that housing projects are to be approved or denied based on the rules in place at the time of their complete application, and that following initial project approval a developer has a window of “vested rights” to stave off downzoning or further changes that could stall the project. The bill also defers payment of impact fees or development excise taxes until a later stage in the development process, while providing a clear lever (in the final use and occupancy permit) to ensure their collection.
Transit Oriented Development – smarter land use surrounding high-use rail stations
HB 894 and SB 389
These cross-filed Administration bills are passing with consensus amendments, clarifying growth planning and standards in the immediate areas around Transit Oriented Developments. For the tax benefits in the bill (piggybacking on the current Enterprise Zone program) the county would have an option whether to designate the area for property tax benefits. Amendments around parking requirements grant some flexibility if the State and county agree with a study forecasting a parking challenge.
Build Affordably in my Backyard (BAMBY) – optional local tools for faster processing
HB 1175 and SB 267
A MACo-supported bill intended to grant more local flexibility in multiple processes that affect affordable housing projects, the Senate bill has advanced to the House, with two principal elements remaining: a registry for responsible parties owning rental properties, and an accelerated approval process for non-controversial routine permits. The House bill was not identical to the Senate bill, and should receive full consideration in this amended form.
Empowering “Transformational” Tax-Increment Financing
HB 506 and SB 455 (and HB 1580)
The Senate bill has advanced, to authorize the State to layer its own revenues as an additional pledge to help fund infrastructure needed for the further development of an affected area — which in many cases would include mixed-use rediential and commercial. This added authority could bring Maryland into competition with other states that use this more unified approach — pledging the expected revenue increase to pay for the infrastructure that makes the development viable. MACo supported the bill and will work to help its passage through the House as well.
Other Housing Initiatives likely not advancing:
Starter & Silver Homes Act (HB 239/SB 36) – This bill remains under review in the House Economic Matters Committee and the Senate Education, Energy, and the Environment Committee, but was not advanced along with the other housing-related bills noted above, and now appears unlikely to pass.
Bring Back Main Street (HB 1137/SB 829) – This bill has passed both of its initial chambers in heavily amended form. As amended, it requires DHCD to study a potential state mandate for mixed-use zoning in locally commercial areas, extending this policy debate into the 2027 session. The legislation is expected to pass in the very narrowed form.
Cooperative Limited Equity Housing Corporations – Establishment (HB 85/SB 511) – This bill passed the House with MACo’s amendments. The Senate has not yet acted. Counties should continue to monitor.
Middle Housing Options (HB778) – This bill did not meet the crossover deadline. Counties should continue to monitor.
Retaliatory Downzoning (HB1517) – This bill did not meet the crossover deadline and is unlikely to pass.
Definitions & Boards of Appeals (SB687) – This bill did not meet the crossover deadline and is unlikely to pass.