Fair Housing and Housing Discrimination - Regulations, Intent, and Discriminatory Effect

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*hb0573*

HOUSE BILL 573
D5, C9 (6lr1216)
ENROLLED BILL
— Economic Matters/Judicial Proceedings —
Introduced by Delegates Taveras, Acevero, Behler , Fennell, Foley, Hill, Ivey,
Kaufman, Lehman, Moreno, Odom, Ruff, Spiegel, Terrasa, Turner, Vogel,
Williams, Wims, Wolek, and Woods

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

Fair Housing and Housing Discrimination – Regulations, Intent, and 2
Discriminatory Effect 3

FOR the purpose of authorizing the Department of Housing and Community Development 4
to adopt certain regulations related to affirmatively furthering fair housing; 5
providing that certain discriminatory housing practices may be committed without 6
intent; prohibiting a person from acting in a certain manner that has a 7
discriminatory effect; providing that certain conduct does not c onstitute a certain 8
violation; and generally relating to fair housing and discriminatory housing 9
practices. 10

BY repealing and reenacting, with amendments, 11
Article – Housing and Community Development 12
2 HOUSE BILL 573

Section 2–402 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, without amendments, 4
Article – State Government 5
Section 20–101(a), (b), and (d), 20–701(a), 20–1020, 20–1035, 20–1040, and 20–1041 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2025 Supplement) 8

BY adding to 9
Article – State Government 10
Section 20–701(b–1) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2025 Supplement) 13

BY repealing and reenacting, with amendments, 14
Article – State Government 15
Section 20–702 and 20–705 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2025 Supplement) 18

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20

Article – Housing and Community Development 21

2–402. 22

(a) The Department: 23

(1) shall administer its programs and activities related to housing and 24
community development to affirmatively further fair housing; 25

(2) shall explore ways to ensure it is collaborating with and supporting 26
nonprofit and governmental entities devoted to furthering fair housing; and 27

(3) may not take any action that is materially inconsistent with the 28
obligation to affirmatively further fair housing. 29

(b) (1) The Department shall require political subdivisions and housing 30
authorities to affirmatively further fair housing. 31

(2) To ensure that political subdivisions and housing authorities 32
affirmatively further fair housing, the Department shall, in accordance with § 3 –114(d)(2) 33
of the Land Use Article, require a political subdivision or housing autho rity to submit an 34
HOUSE BILL 573 3

assessment of fair housing to the Department as part of the housing element of a 1
comprehensive plan. 2

(c) This section does not: 3

(1) require a political subdivision or housing authority to take a specific 4
action to affirmatively further fair housing; or 5

(2) prohibit a political subdivision or housing authority from taking a 6
specific action to affirmatively further fair housing. 7

(D) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 8
SECTION. 9

Article – State Government 10

20–101. 11

(a) In Subtitles 1 through 11 of this title the following words have the meanings 12
indicated. 13

(b) “Commission” means the Commission on Civil Rights. 14

(d) “Discriminatory act” means an act prohibited under: 15

(1) Subtitle 3 of this title (Discriminati on in Places of Public 16
Accommodation); 17

(2) Subtitle 4 of this title (Discrimination by Persons Licensed or Regulated 18
by Maryland Department of Labor); 19

(3) Subtitle 5 of this title (Discrimination in Leasing of Commercial 20
Property); 21

(4) Subtitle 6 of this title (Discrimination in Employment); 22

(5) Subtitle 7 of this title (Discrimination in Housing); or 23

(6) Subtitle 8 of this title (Aiding, Abetting, or Attempting Discriminatory 24
Act; Obstructing Compliance). 25

20–701. 26

(a) In this subtitle the following words have the meanings indicated. 27

4 HOUSE BILL 573

(B–1) “DISCRIMINATORY EFFECT ” MEANS AN EFFECT THAT ACTUALLY OR 1
PREDICTABLY HAS A DI SPARATE IMPACT ON A GROUP OF PERSONS OR CREATES, 2
INCREASES, REINFORCES, OR PERPETUATES SEGRE GATED HOUSING PATTER NS 3
BECAUSE OF RACE, COLOR, RELIGION, SEX, DISABILITY, MARITAL STATUS, FAMILIAL 4
STATUS, SEXUAL ORIENTATION, GENDER IDENTITY, NATIONAL ORIGIN, SOURCE OF 5
INCOME, OR MILITARY STATUS. 6

20–702. 7

(a) It is the policy of the State: 8

(1) to provide for fair housing throughout the State to all, regardless of 9
race, color, religion, sex, familial status, national origin, marital status, sexual orientation, 10
gender identity, disability, source of income, or military status; and 11

(2) to that end, to prohibit discriminatory practic es OR ACTS THAT HAVE 12
A DISCRIMINATORY EFF ECT, REGARDLESS OF INTENT , with respect to residential 13
housing by any person, in order to protect and ensure the peace, health, safety, prosperity, 14
and general welfare of all. 15

(b) This subtitle: 16

(1) is an exercise of the police power of the State for the protection of the 17
people of the State; and 18

(2) shall be administered and enforced by the Commission and, as provided 19
in this title, enforced by the appropriate State court. 20

20–705. 21

(A) Except as provided in SUBSECTION (B) OF THIS SECTION AND §§ 20–703 22
and 20–704 of this subtitle, a person may not, REGARDLESS OF INTENT: 23

(1) refuse to sell or rent after the making of a bona fide offer, refuse to 24
negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling to any 25
person because of race, color, religion, sex, disability, marital status, familial status, sexual 26
orientation, gender identity, national origin, source of income, or military status; 27

(2) discriminate against any person in the terms, conditions, or privileges 28
of the sale or rental of a dwelling, or in the provision of services or facilities in connection 29
with the sale or rental of a dwelling, because of race, color, religion, sex, disability, marital 30
status, familial status, sexual orientation, gender identity, national origin, source of 31
income, or military status; 32

(3) make, print, or publish, or cause to be made, printed, or published, any 33
notice, statement, or advertisement with respect to the sale or rental of a dwelling that 34
HOUSE BILL 573 5

indicates any preference, limitation, or discrimination based on race, color, religion, sex, 1
disability, marital status, familial status, sexual orientation, gender identity, national 2
origin, source of income, or military statu s, or an intention to make any preference, 3
limitation, or discrimination; 4

(4) represent to any person, because of race, color, religion, sex, disability, 5
marital status, familial status, sexual orientation, gender identity, national origin, source 6
of income, or military status, that any dwelling is not available for inspection, sale, or rental 7
when the dwelling is available; [or] 8

(5) for profit, induce or attempt to induce any person to sell or rent any 9
dwelling by representations regarding the entry or prospective entry into the neighborhood 10
of a person of a particular race, color, religion, sex, disability, marital status, familial status, 11
sexual orientation, gender identity, national origin, source of income, or military status; OR 12

(6) ACT IN A MANNER THAT HAS A DISCRIMINATORY EFFECT. 13

(B) A PERSON HAS NOT VIOLA TED A PROHIBITION IN SUBSECTION (A) OF 14
THIS SECTION IF: 15

(1) THE ACTION WAS WITHOUT DISCRIMINATORY INTENT; 16

(2) THE ACTION WAS NECESSARY TO ACHIEVE ONE OR MORE 17
SUBSTANTIAL, LEGITIMATE, AND NONDISCRIMINATORY INTERESTS; AND 18

(3) THE PERSON COULD NOT HAVE ACHIEVED THE SUBSTANTIAL, 19
LEGITIMATE, AND NONDISCRIMINATORY IN TERESTS BY LESS DISCRIMINATO RY 20
MEANS. 21

20–1020. 22

(a) In this part the following words have the meanings indicated. 23

(b) “Aggrieved person” means any person that claims to have been injured by a 24
discriminatory housing practice. 25

(c) “Conciliation” means the attempted resolution of issues raised by a complaint, 26
or by th e investigation of a complaint, through informal negotiations involving the 27
aggrieved person, the respondent, and the Commission. 28

(d) “Conciliation agreement” means a written agreement between the respondent 29
and the complainant setting forth the resolution of the issues in conciliation. 30

(e) “Discriminatory housing practice” means an act that is prohibited under § 31
20–705, § 20–706, § 20–707, or § 20–708 of this title. 32
6 HOUSE BILL 573

(f) “Prevailing party” has the meaning as judicially determined under 42 U.S.C. 1
§ 1988. 2

20–1035. 3

(a) In accordance with this section, an aggrieved person may commence a civil 4
action in an appropriate State court to obtain appropriate relief for an alleged 5
discriminatory housing practice or the breach of a conciliation agreement entered into 6
under this part. 7

(b) (1) The action shall be filed within 2 years after the later of the occurrence 8
or termination of the alleged discriminatory housing practice or the breach of the 9
conciliation agreement. 10

(2) (i) Except as provided in subparag raph (ii) of this paragraph, the 11
computation of the 2–year period does not include any time during which an administrative 12
proceeding under this part was pending for a complaint or charge based on the alleged 13
discriminatory housing practice. 14

(ii) Subparagraph (i) of this paragraph does not apply to an action 15
arising from a breach of a conciliation agreement. 16

(3) Except as provided in subsection (c) of this section, an aggrieved person 17
may commence a civil action under this section: 18

(i) not sooner than 130 days after a complaint has been filed under 19
§ 20–1021 of this subtitle; and 20

(ii) regardless of the status of any complaint. 21

(c) (1) If the Commission or a State or local unit has obtained a conciliation 22
agreement with the consent of an aggrieved person, the aggrieved person may not file an 23
action under this section for the alleged discriminatory housing practice that forms the 24
basis for the complaint, except for the purpose of enforcing the terms of the conciliation 25
agreement. 26

(2) An aggrieved person may not commence a civil action under this section 27
with respect to an alleged discriminatory housing practice that forms the basis of a charge 28
issued by the Commission, if an administrative law judge has commenced a hearing on the 29
record under this part with respect to the charge. 30

(d) On application by a person alleging a discriminatory housing practice or a 31
person against whom a discriminatory housing practice is alleged, the court may: 32

(1) appoint an attorney for the person; or 33

HOUSE BILL 573 7

(2) if, in the opinion of the court, the person is financially unable to bear 1
the costs of the action, authorize the commencement or continuation of a civil action under 2
subsection (a) of this section without the payment of fees, costs, or security. 3

(e) (1) In a civil action under this section, if the court finds that a 4
discriminatory housing practice has occurred, the court may: 5

(i) award to the plaintiff actual and punitive damages; and 6

(ii) subject to subsection (f) of this section, grant as reli ef, as the 7
court considers appropriate, any permanent or temporary injunction, temporary 8
restraining order, or other order, including an order enjoining the defendant from engaging 9
in the practice or ordering affirmative action. 10

(2) In a civil action un der this section, the court may allow the prevailing 11
party reasonable attorney’s fees and costs. 12

(f) Relief granted under this section may not affect any contract, sale, 13
encumbrance, or lease consummated before the granting of relief and involving a bona fide 14
purchaser, encumbrancer, or tenant without actual notice of the filing of a complaint with 15
the Commission or civil action under this part. 16

(g) If the Commission certifies that the case is of general public importance and 17
on timely application, the Commission may: 18

(1) intervene in a civil action brought under this section; and 19

(2) obtain any relief that would be available to the Commission under § 20
20–1036(c) of this subtitle. 21

20–1040. 22

(a) In this part the following words have the meanings indicated. 23

(b) “Attorney General” means the Attorney General and the Office of the Attorney 24
General. 25

(c) (1) “Civil rights violation” means an act of discrimination prohibited under 26
the U.S. Constitution, the Maryland Constitution, or State or federal law. 27

(2) “Civil rights violation” includes a discriminatory act as defined in § 28
20–101 of this title. 29

20–1041. 30

(a) The Attorney General may investigate, prosecute, and remediate, on behalf of 31
the residents of the State, any conduct that constitutes a civil rights violation. 32
8 HOUSE BILL 573

(b) The Attorney General may not bring a civil rights action under this part: 1

(1) on behalf of an individual; 2

(2) against a political subdivision; 3

(3) against any unit of State or local government established by law; or 4

(4) against any employee or agent of an entity identified in item (2) or (3) 5
of this subsection who is acting under the color of law. 6

(c) Nothing in this part may be interpreted to impair the rights and powers of the 7
Commission under Subtitles 1 through 11 of this title. 8

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2026. 10

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.