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*hb0168*
HOUSE BILL 168
C9, F5 (6lr1119)
ENROLLED BILL
— Economic Matters/Education, Energy, and the Environment —
Introduced by Delegate Vogel
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at __ ______________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Housing and Community Development – Affordable Housing – Educator 2
Workforce Housing and Municipal Corporations 3
FOR the purpose of authorizing a county board of education to consider the provision of 4
educator workforce housing as a school purpose under certain provisions of law; 5
establishing that providing educator workforce housing is an eligible use of certain 6
financial assistance provided by the Department of Housing and Community 7
Development; establishing that teachers and other employees of a local school 8
system shall be cons idered a specified group for purposes of the federal 9
Low–Income Housing Tax Credit program; altering the eligible recipients of certain 10
financial assistance altering the eligible recipients of certain financial assistance and 11
the housing innovation projec ts the Department of Housing and Community 12
Development shall prioritize for certain financial assistance under the Housing 13
Innovation Pilot Program; altering the projects qualifying as eligible to provide 14
2 HOUSE BILL 168
services to a priority funding area under the Neigh borhood and Community 1
Assistance Program; and generally relating to affordable housing. 2
BY repealing and reenacting, with amendments, 3
Article – Education 4
Section 4–115 5
Annotated Code of Maryland 6
(2025 Replacement Volume and 2025 Supplement) 7
BY adding to 8
Article – Housing and Community Development 9
Section 1–103 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Housing and Community Development 14
Section 1–101, 4–512, 4–3001 through 4–3004, and 6–405 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Education 20
4–115. 21
(a) (1) In this subtitle [, “county ] THE FOLLOWING WORDS HAVE THE 22
MEANINGS INDICATED. 23
(2) “COUNTY council” means, in Baltimore City, the Mayor and City 24
Council of Baltimore. 25
(3) “SCHOOL PURPOSES ” INCLUDES PROVIDING E DUCATOR 26
WORKFORCE HOUSING IN ACCORDANCE WITH § 1–103, AS DEFINED IN § 1–101 OF 27
THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 28
(2) FOR PURPOSES OF THIS SUBTITLE, A COUNTY BOARD MAY 29
CONSIDER THE PROVISION OF EDUCATOR WORKF ORCE HOUSING, AS DEFINED IN § 30
1–101 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE, AS A SCHOOL 31
PURPOSE. 32
(b) With the approval of the State Superintendent, or the State Superintendent’s 33
designee, each county board may: 34
HOUSE BILL 168 3
(1) Buy or otherwise acquire land, school sites, or buildings; and 1
(2) Rent, repair, improve, and build school buildings or approve contracts 2
for doing so, if the plans conform to the bylaws, rules, and regulations of the State Board. 3
(c) (1) (i) Except as provided in this subsection, if, with the approval of the 4
State Superintendent, or the State Superintendent’s designee, a county board finds that 5
any land, school site, or building no longer is needed for school purposes, it shall inform the 6
county commissioners or county council of the county board’s determination under this 7
subparagraph. 8
(ii) When the county commissioners or county council receives notice 9
under subparagraph (i) of this paragraph, the county commissioners or county council shall 10
notify the county board within 30 days after receiving the notice from the county board: 11
1. Of the need to transfer the land, school site, or building to 12
the county commissioners or county council if the land, school site, or building is an integral 13
component of an existing economic development plan that will, in the judgment of the 14
county commissioners or county council, significantly benefit the county; or 15
2. That the county commissioners or county council has no 16
existing plans for the use of the land, school site, or building. 17
(iii) 1. If the county commissioners or county council provides the 18
required notice to the county board under subparagraph (ii)1 of this paragraph or a public 19
charter school does not need the school site or building under § 9 –111 of this article, the 20
land, school site, or building shall be transferred by the county board to the county 21
commissioners or county council and may be used, sold, leased, or otherwise disposed of, 22
except by gift, by the county commissioners or county council. 23
2. If the county commissioners or county council provides the 24
required notice to the county board under subparagraph (ii)2 of this paragraph, the county 25
board shall comply with the provisions of § 9–111 of this article. 26
(2) In Harford County, if, with the approval of the State Superintendent, 27
or the State Superintendent ’s designee, the county board finds that any land, school site, 28
or building is no longer needed for school purposes, it shall be transferred by the county 29
board to Harford County, Maryland, and disposed of in accordance with this section. 30
(3) With the a pproval of the State Superintendent, or the State 31
Superintendent’s designee, the Cecil County Board may transfer, with or without charge, 32
any of its property to the board of trustees of a public community college. 33
(d) In Baltimore County, the Baltimore C ounty Board of Education must notify 34
the Baltimore County Office of Planning and Zoning of any schools it is considering for 35
closure and request from that Office a written recommendation on the proposed action. If 36
the Office of Planning and Zoning wishes to make a recommendation, it must be submitted 37
4 HOUSE BILL 168
to the board no later than November 1 of the calendar year preceding the proposed closure. 1
The board of education shall consider these recommendations at least 3 months before 2
taking final action. These provisions may be waived by mutual agreement. 3
(e) (1) In Baltimore City, the Board of School Commissioners shall notify the 4
Baltimore City Department of Planning of any school buildings the board is considering for 5
closure simultaneously as the board releases i ts school building closure list in accordance 6
with COMAR 13A.02.09, and request from that department a written recommendation on 7
the proposed action and the relative merit for Baltimore City. 8
(2) A recommendation by the Baltimore City Department of Planning shall 9
be submitted to the board no later than 30 days after notification by the board. 10
(3) The board shall consider these recommendations before taking final 11
action. 12
(4) The requirements of this subsection may be waived by mutual 13
agreement between the board and the Baltimore City Department of Planning. 14
Article – Housing and Community Development 15
1–101. 16
(a) In this Division I of this article the following words have the meanings 17
indicated. 18
(b) (1) “Community assistance” means activities designed to enhance the 19
physical, social, or economic environment of a community to improve the health, safety, or 20
socio–economic welfare of its citizens. 21
(2) “Community assistance” includes the promotion of activities specified 22
in paragraph (1) of this subsection through the concentration and coordination in 23
communities in the State of federal, State, regional, and local public and private resources. 24
(c) “County” means a county of the State or Baltimore City. 25
(d) “Department” means the Department of Housing and Community 26
Development. 27
(e) “EDUCATOR WORKFORCE HOUSING” MEANS ANY HOUSING THAT IS: 28
(1) RENTED OR SOLD AS AFFORDABLE, LOW– OR MODERATE–INCOME 29
HOUSING; AND 30
(2) RESERVED FOR TEACHER S OR OTHER EMPLOYEES OF A LOCAL 31
SCHOOL SYSTEM WHO ARE NOT ADMINISTRATORS RESPO NSIBLE FOR THE 32
HOUSE BILL 168 5
STRATEGIC DIRECTION AND DAILY OPERATIONS OF THE LOCAL SCHOOL SYSTEM OR 1
A PUBLIC SCHOOL. 2
(F) (1) “Financial assistance” means any form of assurance, guarantee, grant, 3
payment, or other assistance. 4
(2) “Financial assistance” includes a loan, loan guarantee, or reduction in 5
the principal obligations of or rate of interest payable on a loan or portion of a loan. 6
[(f)] (G) “Governmental unit” means an agency, authority, board, commission, 7
council, office, or other unit or instrumentality of the government of the State or of a 8
political subdivision of the State. 9
[(g)] (H) “Nonprofit organization” means a corporation, foundation, or other 10
legal entity, no part of the net earnings of which inures to the benefit of a private 11
shareholder or individual holding an interest in the entity. 12
[(h)] (I) “Person” means an individual, receiver, trustee, guardian, personal 13
representative, fiduciary, representative of any kind, partnership, firm, association, 14
corporation, or other entity. 15
[(i)] (J) “Political subdivision” means a county or municipal corporation of the 16
State. 17
[(j)] (K) “Secretary” means the Secretary of Housing and Community 18
Development. 19
[(k)] (L) “Veteran” has the meaning stated in § 9 –901 of the State Government 20
Article. 21
1–103. 22
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(2) “AFFORDABLE HOUSING” MEANS RESIDENTIAL PR OPERTY THAT 25
IS RENTED OR SOLD TO THE PUBLIC AS LOW– OR MODERATE–INCOME HOUSING OR 26
WORKFORCE HOUSING. 27
(3) “EDUCATOR WORKFORCE HO USING” MEANS AFFORDABLE 28
HOUSING THAT IS RESE RVED FOR TEACHERS OR OTHER EMPLOYEES OF A LOCAL 29
SCHOOL SYSTEM. 30
(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 31
APPLIES TO ANY PROGRAM OPERATED BY THE DEPARTMENT THAT AWARDS LOANS, 32
6 HOUSE BILL 168
GRANTS, TAX CREDITS , OR OTHER FINANCIAL S UPPORT THAT MAY BE U SED TO 1
DEVELOP AFFORDABLE HOUSING. 2
(2) IF THE LAWS OR REGULA TIONS GOVERNING A PA RTICULAR 3
PROGRAM ESTABLISH MO RE SPECIFIC RULES RE GARDING THE USE OF L OAN 4
PROCEEDS, GRANTS, TAX CREDITS, OR OTHER FINANCIAL SUPPORT FOR EDUCATOR 5
WORKFORCE HOUSING, THE MORE SPECIFIC RULES APPLY. 6
(C) (1) PROVIDING EDUCATOR WO RKFORCE HOUSING , INCLUDING ON 7
LAND, SCHOOL SITES , OR BUILDINGS BOUGHT OR OTHERWISE ACQUIRE D BY A 8
COUNTY BOARD OF EDUC ATION AND USED TO DEVELOP AFFORD ABLE HOUSING, IS 9
AN ELIGIBLE USE OF T HE PROCEEDS OF A LOA N, GRANT, TAX CREDIT, OR OTHER 10
FINANCIAL SUPPORT COVERED UNDER THIS SECTION. 11
(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 12
DEPARTMENT SHALL NOTI FY APPLICANTS FOR A LOAN , GRANT, TAX CREDIT , OR 13
OTHER FINANCIAL SUPP ORT COVERED UNDER TH IS SECTION THAT PROV IDING 14
EDUCATOR WORKFORCE H OUSING, INCLUDING ON LAND , SCHOOL SITES , OR 15
BUILDINGS BOUGHT OR OTHERWISE ACQUIRED BY A COUNTY BOARD OF EDUCATION 16
AND USED TO DEVELOP AFFORDABLE HOUSING , IS AN ELIGIBLE USE O F THE 17
FINANCIAL SUPPORT. 18
(II) THE NOTICE REQUIREMENT UNDER SUBPARAGRAPH (I) OF 19
THIS PARAGRAPH DOES NOT APPLY WHEN AN IN DIVIDUAL APPLIES FOR A LOAN , 20
GRANT, TAX CREDIT , OR OTHER FINANCIAL S UPPORT UNDER A DEPARTMENT 21
PROGRAM THAT DOES NOT FOCUS ON HOUSING. 22
(D) (1) IT IS THE POLICY OF T HE STATE TO SUPPORT EDUC ATOR 23
WORKFORCE HOUSING DEVELOPMENT IN THE STATE. 24
(2) TEACHERS AND OTHER EMPLOYEES OF A LOCAL SCHOOL SYSTEM 25
SHALL BE CONSIDERED A SPECIFIED GROUP FO R PURPOSES OF THE FEDERAL 26
LOW–INCOME HOUSING TAX CREDIT PROGRAM AND AN Y OTHER APPLICABLE 27
FEDERAL AFFORDABLE HOUSING DEVELOPMENT PROGRAM THAT USES STATE LAW 28
TO DETERMINE ELIGIBILITY. 29
4–512. 30
(a) (1) In this section [,] THE FOLLOWING WORDS HAVE THE MEANINGS 31
INDICATED. 32
(2) “EDUCATOR WORKFORCE HO USING” HAS THE MEANING STAT ED 33
IN § 1–103 OF THIS ARTICLE. 34
HOUSE BILL 168 7
(3) “Fund” means the Housing Innovation Fund. 1
(b) There is a Housing Innovation Fund. 2
(c) The purpose of the Fund is to provide loans for local housing authorities [and], 3
county governments , MUNICIPAL CORPORATIO NS, AND COUNTY BOARDS OF 4
EDUCATION to develop mixed –income, cross –subsidized housing AND, INCLUDING 5
EDUCATOR WORKFORCE HOUSING. 6
(d) The Department shall administer the Fund. 7
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 8
the State Finance and Procurement Article. 9
(2) The State Treasurer shall hold the Fund separately, and the 10
Comptroller shall account for the Fund. 11
(f) The Fund consists of: 12
(1) money appropriated in the State budget to the Fund; and 13
(2) any other money from any other source accepted for the benefit of the 14
Fund. 15
(g) (1) Subject to paragraph (2) of this subsection and subsection (j) of this 16
section, the Fund may be used only to provide low – or no–interest loans to local housing 17
authorities [or to ], county governments , MUNICIPAL CORPORATIO NS, OR COUNTY 18
BOARDS OF EDUCATION partnering with housing developers through the Housing 19
Innovation Pilot Program in accordance with Subtitle 30 of this title. 20
(2) The Fund may be used for projects where a county , MUNICIPAL 21
CORPORATION, OR COUNTY BOARD OF EDUCATION, in conjunction with a local housing 22
authority or a housing developer, acquires existing private sector housing. 23
(h) (1) The State Treasurer shall invest the money of the Fund in the same 24
manner as other State money may be invested. 25
(2) Any interest earnings of the Fund shall be credited to the General Fund 26
of the State. 27
(i) Expenditures from the Fund may be made only in accordance with the State 28
budget. 29
8 HOUSE BILL 168
(j) (1) (i) For fiscal year 2025, an allocation to the Fund shall be committed 1
to projects before July 1, 2026, subje ct to applicants being afforded a reasonable period of 2
time to complete the application. 3
(ii) For fiscal year 2026 and each fiscal year thereafter, an allocation 4
to the Fund in a fiscal year shall be committed to projects before the end of that fiscal year, 5
subject to applicants being afforded a reasonable period of time to complete the application. 6
(2) If an allocation of funds to the Fund under paragraph (1) of this 7
subsection has not been committed to projects before the end of the fiscal year whe n they 8
were allocated, the funds shall be eligible for use in support of projects that apply to the 9
Rental Housing Program established under Subtitle 4 of this title. 10
4–3001. 11
(a) In this subtitle the following words have the meanings indicated. 12
(b) “Authority” has the meaning stated in § 12–101 of this article. 13
(c) “Fund” means the Housing Innovation Fund. 14
(d) “Housing innovation project” means a project to provide mixed –income, 15
cross–subsidized housing OR, INCLUDING EDUCATOR WORKFORCE H OUSING, that 16
qualifies under § 4–3003 of this subtitle. 17
(e) “Program” means the Housing Innovation Pilot Program. 18
(f) “Public ownership” means that the authority of the political subdivision of the 19
state in which OR THE COUNTY BOARD OF EDUCATION IN WHOSE JURISDICTION the 20
project is located possesses majority ownership or control. 21
4–3002. 22
(a) There is a Housing Innovation Pilot Program. 23
(b) The purposes of the Program are: 24
(1) to create opportunities for the State’s public housing authorities [and], 25
county governments , MUNICIPAL CORPORATIO NS, AND COUNTY BOARDS OF 26
EDUCATION to increase the volume of housing production; and 27
(2) to reward counties , MUNICIPAL CORPORATIO NS, AND COUNTY 28
BOARDS OF EDUCATION pursuing innovative solutions to the problem of housing scarcity. 29
(c) The Program shall be operated with money in the Fund. 30
HOUSE BILL 168 9
4–3003. 1
(a) A project qualifies as a housing innovation project if it provides new housing 2
in which: 3
(1) at least 20% of the units are set aside for households with a gross 4
annual income of not more than 50% of the area median income for a household of like size; 5
[or] 6
(2) at least 40% of the units are set aside for households with a gross 7
annual income of not more than 60% of the area median income for a household of like size; 8
OR 9
(3) ANY PORTION OF THE U NITS ARE SET ASIDE F OR EDUCATOR 10
WORKFORCE HOUSING UNDER § 1–103 OF THIS ARTICLE. 11
(b) The Department shall prioritize funding for projects that best meet the 12
following guidelines: 13
(1) the project does not use low –income housing tax credit equity or 14
tax–exempt volume cap; 15
(2) the [affordable] set–asides required under subsection (a) of this section 16
remain restricted at elected levels for at least 99 years; 17
(3) the project remains in public ownership; and 18
(4) the project includes a commitment to prevailing wage requirements ; 19
AND 20
(5) ANY PORTION OF THE U NITS ARE SET ASIDE F OR EDUCATOR 21
WORKFORCE HOUSING. 22
4–3004. 23
(a) The Department shall: 24
(1) coordinate with local housing authorities [and], county governments, 25
MUNICIPAL CORPORATIONS, AND COUNTY BOARDS OF EDUCATION to ensure access to 26
other financial resources, including senior debt products; 27
(2) develop new resources in support of statewide housing production; 28
(3) solicit applicants for the Program; and 29
10 HOUSE BILL 168
(4) subject to subsection (b) of this section, select three projects to receive 1
assistance from the Program each in a different jurisdiction. 2
(b) The Department may select fewer than three pro jects to fund if there is an 3
insufficient number of eligible applicants. 4
6–405. 5
(a) (1) For each fiscal year, a nonprofit organization may submit to the 6
Department, for approval under the Neighborhood and Community Assistance Program, a 7
proposal for a project to provide services to a priority funding area. 8
(2) The project may include: 9
(i) community services, including child care and recreational 10
services; 11
(II) EDUCATOR WORKFORCE HOUSING UNDER § 1–103 OF THIS 12
ARTICLE; 13
[(ii)] (III) redevelopment assistance; 14
[(iii)] (IV) job training for individuals whose incomes do not exceed 15
the upper income limits that the Secretary sets under § 4–212 of this article; 16
[(iv)] (V) education; and 17
[(v)] (VI) crime prevention. 18
(b) A proposal under this section shall include: 19
(1) the project to be conducted; 20
(2) the priority funding area that will benefit from the project; 21
(3) a description of the applicant’s experience and capabilities; 22
(4) the estimated costs of the project; 23
(5) a description of the plans for implementing the project; and 24
(6) any other information that the Department determines is necessary. 25
(c) (1) The Department shall provide written notice to the political subdivision 26
OR IF THE PROPOSED P ROJECT IS AN EDUCATO R WORKFORCE HOUSING 27
HOUSE BILL 168 11
DEVELOPMENT PROJECT, THE LOCAL SCHOOL SYSTEM, in which the proposed project 1
is located. 2
(2) [Except] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION A ND 3
EXCEPT as provided in paragraph [(4)] (5) of this subsection, the Department may not 4
approve a proposal submitted under this section unless the proposal is approved by the 5
governing body or authorized designee of: 6
(i) each county that includes any of the priority funding area that 7
benefits from the project, if the project is not in a municipal corporation; 8
(ii) each municipal corporation that includes any of the priority 9
funding area that benefits from the project; or 10
(iii) each political subdivision that includes any of the priority 11
funding area that benefits from the project, if the priority funding area is partly within and 12
partly outside of any municipal corporation. 13
(3) IF THE PROJECT IS AN EDUCATOR WORKFORCE H OUSING 14
DEVELOPMENT PROJECT,: 15
(I) APPROVAL BY A COUNTY BOARD OF EDUCATION O R AN 16
AUTHORIZED DESIGNEE OF A LOCAL SCHOOL SYSTEM THAT BENEFITS FROM A 17
PROJECT IS NOT REQUIRED; BUT 18
(II) THE DEPARTMENT MAY NOT AP PROVE A PROPOSAL 19
SUBMITTED UNDER THIS SECTION UNLESS THE PROPOSAL IS ALSO APPROVED BY 20
WITHOUT NOTIFYING THE COUNTY BOARD OF EDUCATION OR AUTHORI ZED 21
DESIGNEE OF AT LEAST ONE LOCAL SCHOOL SYSTEM THAT BENEFITS FROM T HE 22
PROJECT IN ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION. 23
[(3)] (4) An approval shall: 24
(i) be in writing; and 25
(ii) state the maximum amount of contributions to the approved 26
project that are eligible for a tax credit under § 6–404 of this subtitle. 27
[(4)] (5) If the Department does not receive notice of approval or denial of 28
an application from the affected jurisdictions within 45 days after notice of the proposed 29
project is given in accordance with paragraph (1) of this subsection, the Department may 30
approve the application. 31
[(5)] (6) The sum of contributions eligible for a tax credit under § 6 –404 32
of this subtitle for all approved projects for a fiscal year may not exceed $3,500,000. 33
12 HOUSE BILL 168
(d) In approving or disapproving a proposal and in determining the maximum 1
amount of contributions eligible for tax credits under § 6 –404 of this subtitle, the 2
Department: 3
(1) shall consider: 4
(i) the need for the project in relation to the need for other proposed 5
projects; 6
(ii) the anticipated benefit to the priority funding area; 7
(iii) the capacity of the applicant to raise money for the project; 8
(iv) the readiness of the applicant to proceed with the project; 9
(v) the ability of the applicant to complete the project as proposed; 10
(vi) the geographic distribution of projects; and 11
(vii) any other relevant factors; 12
(2) may give preference to a proposal that benefits: 13
(i) a sustainable community under § 6–305 of this title; or 14
(ii) a neighborhood conservation district that is locally designated in 15
coordination with the Department’s Neighborhood and Community Assistance Program; 16
(3) may request data and assistance from other units of the State; and 17
(4) shall apportion among all approved projects the limit imposed by 18
subsection [(c)(5)] (C)(6) of this section. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2026. 21