As housing affordability and development costs remain top concerns across Maryland, state lawmakers have advanced a measure to give counties greater flexibility in how they support new development.
During the 2026 legislative session, the Maryland General Assembly passed HB 1216 – Insurance – Certificates of Guarantee for County Bond Requirements – All Counties, a MACo-supported bill that expands an existing tool for satisfying local bonding requirements.
Under current law, only a limited number of counties are authorized to accept certificates of guarantee issued by a nonprofit association of contractors as an alternative to traditional surety bonds. HB 1216 extends that authority statewide, allowing all counties to use this option if they choose.
A certificate of guarantee is an instrument issued on behalf of a contractor to satisfy county bond requirements for public improvements, such as grading, paving, storm drainage, sediment control, and stormwater management. For jurisdictions that opt to use them, these certificates can offer a more flexible and potentially cost-effective alternative to traditional bonding.
From MACo’s testimony:
HB 1216 is a pro-housing, pro-flexibility measure. It does not mandate acceptance of certificates of guarantee but rather empowers counties with an additional option that many jurisdictions are already using successfully. By expanding this authority statewide, the bill supports local decision-making, promotes cost-effective development, and maintains appropriate safeguards for public infrastructure.
Importantly, the bill does not require counties to accept certificates of guarantee. Instead, it preserves full local discretion, ensuring counties may continue to require traditional performance or payment bonds for projects where that approach is more appropriate.
By lowering certain upfront costs, certificates of guarantee may allow savings to be passed along to homebuyers, supporting broader housing affordability goals and encouraging new housing production. Ultimately, HB 1216 reflects a balanced approach, offering counties an additional option without imposing mandates, while maintaining appropriate safeguards for public infrastructure. The bill passed during the 2026 session and will make this authority available to all Maryland counties moving forward.
