This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top policy issues of the day.
Every four years, the Department of Legislative Services (DLS) publishes its Major Issues Review, highlighting major policy debates and legislation enacted during the preceding legislative term.
Few issues received greater attention during the 2023–2026 term than housing. Governor Wes Moore made housing affordability a central component of his first major legislative agenda in 2024, and the issue became an even greater focus in subsequent sessions. Democratic and Republican members of the General Assembly introduced a historically high volume of legislation intended to reduce housing costs, preserve existing units, and remove regulatory barriers to new construction.
The following provides an overview of several major housing measures enacted during the term and their implications for county governments.
2023
Adaptive Reuse – HB 150/SB 166 of 2023 (Page H-46)
This legislation established the first state-level recognition and statutory definition of adaptive reuse while expanding eligibility for state housing funding to include qualifying adaptive reuse projects. Adaptive reuse generally involves converting a property previously used for nonresidential purposes into residential housing. The legislation did not preempt local land-use authority or restrict counties’ ability to regulate development. However, it represented an early legislative step toward encouraging residential development on properties historically zoned or used for nonresidential purposes.
2024
Housing Expansion and Affordability Act – HB538/SB484 (Pages H-47–H-48)
The Housing Expansion and Affordability Act served as the centerpiece of Governor Moore’s first major housing package and represented a significant expansion of state involvement in local housing and land-use policy.
The omnibus legislation established state-mandated density bonuses for qualifying projects located on formerly state-owned property, within 0.75 miles of a rail station, or on property controlled by a nonprofit organization. Projects must also meet specified affordability requirements, including reserving at least 25 percent of their units as affordable housing.
In addition to establishing density bonuses, the legislation created a new “unreasonable limitation or requirement” standard. Under this framework, counties may not impose limitations or requirements deemed unreasonable on projects receiving a density bonus.
Read MACo’s Policy Deep Dive on the Housing Expansion and Affordability Act.
2025
Accessory Dwelling Units – HB 1466/SB 891 of 2025 (Page D-3)
During the 2023 legislative session, the General Assembly directed the Maryland Department of Planning to convene a task force examining opportunities to streamline the development of accessory dwelling units (ADUs). Legislation introduced during the 2025 session sought to implement the task force’s recommendations.
As introduced, the legislation extended substantially beyond the task force report and would have established broadly preemptive, statewide standards for ADU development. Amendments adopted during the legislative process preserved greater local flexibility.
As enacted, the legislation requires local governments to allow an ADU on property containing a single-family home as the principal residence. Counties retain authority to regulate ADU development and establish locally appropriate construction, design, placement, and administrative standards. Local governments must adopt implementing ordinances by October 1, 2026.
Read MACo’s coverage of the ADU report.
2026
Maryland Housing Certainty Act – HB548/SB325 (Pages H-46–H-47)
The Maryland Housing Certainty Act was one of several measures included in Governor Moore’s 2026 housing package. The legislation sought to increase regulatory predictability for developers and lenders financing residential construction in Maryland.
The legislation primarily made three changes. First, it established statewide definitions for certain terms used in the residential development review process. Second, it modified local application and regulatory review procedures to provide greater certainty regarding project requirements and outcomes. Third, it restricted the timing of county impact-fee collections, generally requiring payment after construction is completed but before the issuance of a use and occupancy permit.
Read MACo’s Policy Deep Dive on the Maryland Housing Certainty Act.
