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*hb0571*
HOUSE BILL 571
C9, Q1 (6lr1818)
ENROLLED BILL
— Economic Matters/Budget and Taxation —
Introduced by Delegate Allen
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
Nonprofit Housing Corporations – Tax and Enforcement of Judgment Taxes and 2
Special Assessments Exemptions – Alterations 3
FOR the purpose of altering the definition of “nonprofit housing corporation” for purposes 4
of eligibility for an exemption from real property taxes and special assessments of 5
the State or a political subdivision; exempting certain real property owned by certain 6
subsidiary entities of a nonprofit housing corporation from taxes and special 7
assessments of the State or a political subdivision; exempting certain real property 8
of a nonprofit housing corporation from certain procedures for enforcement of a 9
judgment against the nonprofit housing corporation; and generally relating to tax 10
and enforcement of judgment taxes and special assessments exemptions for 11
nonprofit housing corporations. 12
BY repealing and reenacting, with amendments, 13
Article – Housing and Community Development 14
2 HOUSE BILL 571
Section 12–104 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2025 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Housing and Community Development 6
12–104. 7
(a) In this section, “housing authority entity” means an entity: 8
(1) that is controlled or wholly owned by an authority; or 9
(2) in which an authority or an entity controlled or wholly owned by an 10
authority has an ownership interest, either directly or indirectly, through one or more 11
wholly or partially owned subsidiary entities. 12
(b) A nonprofit entity shall be deemed controlled by an authority under subsection 13
(a) of this section if: 14
(1) the nonprofit entity is established by an authority under § 12–502(h) of 15
this title; and 16
(2) the authority: 17
(i) has the power to appoint a majority of the board of directors of 18
the nonprofit entity; or 19
(ii) is the sole member of the nonprofit entity. 20
(c) (1) (I) In this subsection , THE FOLLOWING WORDS HAVE THE 21
MEANINGS INDICATED. 22
(II) “AFFORDABLE HOUSING” MEANS RENTAL HOUSING: 23
1. THAT HAS BEEN AWARDE D OR APPROVED FOR A 24
CREDIT ALLOWED UNDER § 42 OF THE INTERNAL REVENUE CODE AND IS SUBJECT 25
TO A COVENANT UNDER THE FEDERAL LOW–INCOME HOUSING TAX CREDIT 26
PROGRAM; OR 27
2. APPROVED BY THE GOVE RNING BODY OF THE 28
POLITICAL SUBDIVISION IN WHICH THE PROJECT IS LOCATED AND FOR WHICH: 29
HOUSE BILL 571 3
A. AT LEAST 50% OF THE UNITS ARE RES ERVED FOR 1
HOUSEHOLDS EARNING AT OR BELOW 60% OF THE AREA MEDIAN INCOME FOR THE 2
METROPOLITAN STATISTICAL AREA OF THE PROJECT; AND 3
B. RENT IS RESTRICTED TO 30% OF GROSS HOUSEHOLD 4
INCOME FOR A FAMILY OF FOUR AT OR BELOW 60% OF THE AREA MEDIAN I NCOME 5
FOR THE METROPOLITAN STATISTICAL AREA OF THE PROJECT, ADJUSTED TO 1.5 6
INDIVIDUALS FOR EACH BEDROOM IN THE UNIT. 7
(III) “nonprofit NONPROFIT housing corporation” means a [nonprofit 8
or charitable private corporation that provides safe and sanitary housing to persons of 9
eligible income in such a way that the corporation works essentially like an authority under 10
this Division II] CORPORATION: 11
(I) 1. INCORPORATED UNDER THE LAWS OF THE STATE OR 12
AUTHORIZED TO DO BUS INESS IN THE STATE BY THE STATE DEPARTMENT OF 13
ASSESSMENTS AND TAXATION; 14
(II) 2. RECOGNIZED BY THE INTERNAL REVENUE SERVICE 15
AS AN ORGANIZATION DESCRIBED IN § 501(C)(3) OF THE INTERNAL REVENUE CODE; 16
AND 17
(III) 3. ORGANIZED AND OPERAT ED FOR THE PRIMARY 18
PURPOSE OF DEVELOPIN G, OWNING, OR OPERATING SAFE AND SANITARY 19
AFFORDABLE HOUSING FOR PERSONS OF ELIGIBLE INCOME. 20
(2) THIS SUBSECTION DOES NOT APPLY TO: 21
(I) PROPERTY IN BALTIMORE CITY THAT: 22
1. BELONGS TO A NONPROF IT HOUSING CORPORATI ON; 23
OR 24
2. IS OWNED IN WHOLE OR IN PART , DIRECTLY OR 25
INDIRECTLY, THROUGH ONE OR MORE WHOLLY OR PARTIALLY OWNED SUBSIDIARY 26
ENTITIES OF A NONPROFIT HOUSING CORPORATION; OR 27
(II) A HOUSING PROJECT OW NED BY A NONPROFIT H OUSING 28
CORPORATION OR AN EN TITY THAT IS CONTROL LED OR WHOLLY OWNED BY A 29
NONPROFIT HOUSING CO RPORATION THAT , BEFORE JULY 1, 2026, RECEIVED A 30
FINANCIAL CONTRIBUTION , INCLUDING A LOAN , A GRANT , OR OTHER DIRECT 31
FINANCIAL ASSISTANCE, FOR THE DEVELOPMENT OF THE HOUSING PROJECT FROM 32
A POLITICAL SUBDIVISION IN WHICH THE HOUSING PROJECT IS LOCATED. 33
4 HOUSE BILL 571
(2) (3) Property is used for essential public and governmental OR 1
CHARITABLE purposes and is exempt from all taxes and special assessments of the State 2
or a political subdivision if the property: 3
(i) belongs to an authority or a nonprofit housing corporation; 4
(ii) is used as housing for persons of eligible income and is owned in 5
whole or in part, directly or indirectly, through one or more wholly or partially owned 6
subsidiary entities of a housing authority entity OR NONPROFIT HOUSING 7
CORPORATION; or 8
(iii) 1. is used, or if planned or under construction will be used, 9
as housing for persons of eligible income and is owned in whole or in part, directly or 10
indirectly, through one or more wholly or partially owned subsidiary entities of a housing 11
authority entity OR NONPROFIT HOUSING CORPORATION; and 12
2. has improvements, or has improvements planned or under 13
construction, located on land that is owned by: 14
A. an authority OR A NONPROFIT HOUSI NG 15
CORPORATION; or 16
B. an entity that is controlled or wholly owned by an 17
authority OR A NONPROFIT HOUSING CORPORATION. 18
(3) (4) In lieu of those taxes and special assessments, an authority, a 19
nonprofit housing corporation, or a housing authority entity shall pay the politica l 20
subdivision in which a housing project is wholly or partly located an amount, if any, that 21
may be set by mutual agreement and that does not exceed the amount of regular taxes 22
levied on similar property. 23
(d) (1) Except as provided in paragraph (2) or (3) of this subsection: 24
(i) all real property of an authority is exempt from levy and sale by 25
virtue of an execution; 26
(II) ALL REAL PROPERTY OF A NONPROFIT HOUSING 27
CORPORATION THAT IS USED AS HOUSING FOR PERSONS OF ELIGIBLE INCOME IS 28
EXEMPT FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION; 29
[(ii)] (III) an execution or other judicial process may not issue 30
against the real property DESCRIBED IN ITEMS (I) AND (II) OF THIS PARAGRAPH; [and] 31
[(iii)] (IV) a judgment against an authority is not a charge or lien on 32
the authority’s real property; AND 33
HOUSE BILL 571 5
(V) A JUDGMENT AGAINST A NONPROFIT HOUSING 1
CORPORATION IS NOT A CHARGE OR LIEN ON TH E NONPROFIT HOUSING 2
CORPORATION’S REAL PROPERTY THAT IS USED AS HOUSING F OR PERSONS OF 3
ELIGIBLE INCOME. 4
(2) Paragraph (1) of this subsection does not limit a right to foreclose or 5
otherwise enforce: 6
(i) a mortgage or deed of trust recorded against property of an 7
authority OR A NONPROFIT HOUSING CORPORATION; or 8
(ii) a pledge or lien given by an authority OR A NONPRO FIT 9
HOUSING CORPORATION on its rents, fees, or revenues. 10
(3) This subsection does not deprive a political subdivision of its right to 11
collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may 12
be collected under State law and the laws of the political subdivision. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2026. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.