Land Use - Middle Housing Options - Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0778*

HOUSE BILL 778
L6, C9 6lr2318

By: Delegates Allen, Behler, and Stewart
Introduced and read first time: February 4, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Land Use – Middle Housing Options – Requirements 2

FOR the purpose of establishing that certain local jurisdictions have an affirmative duty to 3
create opportunities for housing by evaluating the suitability of certain commercial 4
or industrial land for housing use; altering the requirements for the housing element 5
of a certain comprehensive plan; requiring local jurisdiction s to establish certain 6
policies and adopt certain local laws to promote and encourage building middle 7
housing units on certain land ; prohibiting local jurisdictions from imposing certain 8
unreasonable limitation s affecting middle housing applications ; and generally 9
relating to residential development and middle housing. 10

BY repealing and reenacting, with amendments, 11
Article – Land Use 12
Section 1–401, 1–407.1, 3–114, and 10–103 13
Annotated Code of Maryland 14
(2012 Volume and 2025 Supplement) 15

BY adding to 16
Article – Land Use 17
Section 4–601 through 4 –604 to be under the new subtitle “Subtitle 6. Middle 18
Housing” 19
Annotated Code of Maryland 20
(2012 Volume and 2025 Supplement) 21

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23

Article – Land Use 24

1–401. 25

2 HOUSE BILL 778

(a) Except as provided in this section, this division does not apply to charter 1
counties. 2

(b) The following provisions of this division apply to a charter county: 3

(1) this subtitle, including Parts II and III (Charter county – 4
Comprehensive plans); 5

(2) § 1–101(l), (m), and (o) (Definitions – “Plan”, “Priority funding area”, 6
and “Sensitive area”); 7

(3) § 1–201 (Visions); 8

(4) § 1–206 (Required education); 9

(5) § 1–207 (Annual report – In general); 10

(6) § 1–208 (Annual report – Measures and indicators); 11

(7) Title 1, Subtitle 3 (Consistency); 12

(8) Title 1, Subtitle 5 (Growth Tiers); 13

(9) § 4–104(c) (Limitations – Bicycle parking); 14

(10) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 15

(11) § 4–208 (Exceptions – Maryland Accessibility Code); 16

(12) § 4–210 (Permits and variances – Solar panels); 17

(13) § 4–211 (Change in zoning classification – Energy generating systems); 18

(14) § 4–212 (Agritourism); 19

(15) § 4–213 (Alcohol production); 20

(16) § 4–214 (Agricultural alcohol production); 21

(17) § 4–215 (Pollinator–friendly vegetation management); 22

(18) § 4–216 (Limitations – Family child care homes and large family child 23
care homes); 24

(19) Title 4, Subtitle 5 (Accessory Dwelling Units); 25

(20) TITLE 4, SUBTITLE 6 (MIDDLE HOUSING); 26
HOUSE BILL 778 3

(21) § 5–102(d) (Subdivision regulations – Burial sites); 1

[(21)] (22) § 5–104 (Major subdivision – Review); 2

[(22)] (23) Title 7, Subtitle 1 (Development Mechanisms); 3

[(23)] (24) Title 7, Subtitle 2 (Transfer of Development Rights); 4

[(24)] (25) except in Montgomery County or Prince George’s County, Title 5
7, Subtitle 3 (Development Rights and Responsibilities Agreements); 6

[(25)] (26) Title 7, Subtitle 4 (Inclusionary Zoning); 7

[(26)] (27) Title 7, Subtitle 5 (Housing Expansion and Affordability); 8

[(27)] (28) § 8–401 (Conversion of overhead facilities); 9

[(28)] (29) for Baltimore County only, Title 9, Subtitle 3 (Single –County 10
Provisions – Baltimore County); 11

[(29)] (30) for Frederick County only, Title 9, Subtitle 10 (Single –County 12
Provisions – Frederick County); 13

[(30)] (31) for Howard County only, Title 9, Subtitle 13 (Single –County 14
Provisions – Howard County); 15

[(31)] (32) for Talbot County only, Title 9, Subtitle 18 ( Single–County 16
Provisions – Talbot County); and 17

[(32)] (33) Title 11, Subtitle 2 (Civil Penalty). 18

(c) This section supersedes any inconsistent provision of Division II of this article. 19

1–407.1. 20

(a) (1) In this section the following words have the meanings indicated. 21

(2) “Affirmatively further fair housing” has the meaning stated in § 2–401 22
of the Housing and Community Development Article. 23

(3) “Area median income” has the meaning stated in § 4 –1801 of the 24
Housing and Community Development Article. 25

(4) “Low–income housing” means housing that is affordable for a household 26
with an aggregate annual income that is below 60% of the area median income. 27
4 HOUSE BILL 778

(5) “Workforce housing” has the meaning stated in § 4–1801 of the Housing 1
and Community Development Article. 2

(b) A housing element may include goals, objectives, policies, plans, and 3
standards. 4

(c) A housing element shall address the need for affordable housing within the 5
county, including: 6

(1) workforce housing; and 7

(2) low–income housing. 8

(d) (1) A county has a duty to affirmatively further fair housing through the 9
county’s housing and urban development programs. 10

(2) The housing element of a comprehensive plan that is enacted or 11
amended on or after January 1, 2025, shall include an assessment of fair housing to ensure 12
that the county is affirmatively furthering fair housing. 13

(3) On request of a county, the Department of Planning, in consultation 14
with the Department of Housing and Community Development, shall provide technical 15
assistance for the purpose of developing the housing element of the comprehensive plan. 16

(4) This subsection does not require a county to take, or prohibit a county 17
from taking, a specific action to affirmatively further fair housing. 18

(E) (1) A COUNTY HAS AN AFFIRMATIVE DUTY TO CREATE 19
OPPORTUNITIES FOR HO USING BY EVALUATING THE SUITABILITY OF V ACANT, 20
UNUSED, OR UNDERUTILIZED COM MERCIAL OR INDUSTRIA L LAND FOR HOUSING 21
USE. 22

(2) THE HOUSING ELEMENT O F A COMPREHENSIVE PL AN THAT IS 23
ENACTED OR AMENDED ON OR AFTER JANUARY 1, 2027, SHALL INCLUDE: 24

(I) AN ASSESSMENT OF THE SUITABILITY OF ALL V ACANT, 25
UNUSED, OR UNDERUTILIZED COM MERCIAL OR INDUSTRIA L LAND FOR HOUSING 26
USE TO CREATE OPPORT UNITIES FOR MORE HOU SING IN AREAS SERVED BY 27
EXISTING PUBLIC WATER AND SEWER SYSTEMS; AND 28

(II) RECOMMENDATIONS TO ALTER LOCAL LAWS AS NECESSARY 29
TO AUTHORIZE HOUSING USE ON VACANT , UNUSED, OR UNDERUTILIZED 30
COMMERCIAL OR INDUSTRIAL LAND THAT IS SUITABLE FOR HOUSING USE. 31

3–114. 32
HOUSE BILL 778 5

(a) (1) In this section the following words have the meanings indicated. 1

(2) “Affirmatively further fair housing” has the meaning stated in § 2–401 2
of the Housing and Community Development Article. 3

(3) “Area median income” has the meaning stated in § 4 –1801 of the 4
Housing and Community Development Article. 5

(4) “Low–income housing” means housing that is affordable for a household 6
with an aggregate annual income that is below 60% of the area median income. 7

(5) “Workforce housing” has the meaning stated in § 4–1801 of the Housing 8
and Community Development Article. 9

(b) A housing element may include goals, objectives, policies, plans, and 10
standards. 11

(c) A housing element shall address the need for affordable housing within the 12
local jurisdiction, including: 13

(1) workforce housing; and 14

(2) low–income housing. 15

(d) (1) Local jurisdictions have a duty to affirmatively further fair housing 16
through their housing and urban development programs. 17

(2) The housing element of a comprehensive plan that is enacted or 18
amended on or after January 1, 2023, shall include an assessment of fair housing to ensure 19
that the local jurisdiction is affirmatively furthering fair housing. 20

(3) On request of a local jurisdiction, the Department of Planning, in 21
consultation with the Department of Housing and Community Development, shall provide 22
technical assistance for the purpose of developing the housing element of the 23
comprehensive plan. 24

(4) This subsection does not require a local jurisdiction to take, or prohibit 25
a local jurisdiction from taking, a specific action to affirmatively further fair housing. 26

(E) (1) LOCAL JURISDICTIONS HAVE AN AFFIRMATIVE DUTY TO CREATE 27
OPPORTUNITIES FOR HO USING BY EVALUATING THE SUITABILITY OF V ACANT, 28
UNUSED, OR UNDERUTILIZED COM MERCIAL OR INDUSTRIA L LAND FOR HOUSING 29
USE. 30

6 HOUSE BILL 778

(2) THE HOUSING ELEMENT O F A COMPREHENSIVE PL AN THAT IS 1
ENACTED OR AMENDED ON OR AFTER JANUARY 1, 2027, SHALL INCLUDE: 2

(I) AN ASSESSMENT OF THE SUITABILITY OF ALL VACANT , 3
UNUSED, OR UNDERUTILIZED COM MERCIAL OR INDUSTRIA L LAND FOR HOUSING 4
USE TO CREATE OPPORTUNITIES FOR MO RE HOUSING IN AREAS SER VED BY 5
EXISTING PUBLIC WATER AND SEWER SYSTEMS; AND 6

(II) RECOMMENDATIONS TO ALTER LOCAL LAWS AS NECESSARY 7
TO AUTHORIZE HOUSING USE ON VACANT , UNUSED, OR UNDERUTILIZED 8
COMMERCIAL OR INDUSTRIAL LAND THAT IS SUITABLE FOR HOUSING USE. 9

SUBTITLE 6. MIDDLE HOUSING. 10

4–601. 11

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13

(B) “COTTAGE CLUSTER ” MEANS A GROUPING , INCLUDING A COMMON 14
COURTYARD, OF AT LEAST FOUR DETACHED DWELLING UNITS PER ACRE THAT HAVE 15
A FOOTPRINT OF LESS THAN 900 SQUARE FEET. 16

(C) “DWELLING UNIT ” MEANS A SINGLE UNIT PROVIDING COMPLETE , 17
INDEPENDENT LIVING FACILITIES FOR AT LEAST ONE INDIVIDUAL THAT INCLUDES 18
PERMANENT PROVISIONS FOR SANITATION, COOKING, EATING, AND SLEEPING. 19

(D) “MIDDLE HOUSING” MEANS: 20

(1) A DUPLEX; 21

(2) A TRIPLEX; 22

(3) A QUADPLEX; 23

(4) A COTTAGE CLUSTER; OR 24

(5) A TOWN HOUSE. 25

(E) “TOWN HOUSE” MEANS A DWELLING UNIT THAT IS PART OF A GROUPING 26
OF AT LEAST THREE DWELLING UNITS CONST RUCTED IN A ROW , WHERE EACH 27
DWELLING UNIT: 28

HOUSE BILL 778 7

(1) IS LOCATED ON AN INDIVIDUAL LOT OR PARCEL; AND 1

(2) HAS AT LEAST ONE COMMON WALL WITH AN ADJACENT DWELLING 2
UNIT. 3

(F) (1) “UNREASONABLE LIMITATI ON” INCLUDES A LIMITATION THAT 4
PROHIBITS, EXPLICITLY OR BY EFFECT, THE DEVELOPMENT OF MIDDLE HOUSING. 5

(2) “UNREASONABLE LIMITATION” DOES NOT INCLUDE A LIMITATION 6
ON THE SHORT–TERM RENTAL OF A MIDDLE HOUSING UNIT. 7

(G) “ZONING ADMINISTRATOR ” MEANS A LOCAL GOVERNMENTAL UNIT 8
THAT IS RESPONSIBLE FOR REVIEWING DEVELOPMENT PLANS AND PERMIT 9
APPLICATIONS FOR CONSISTENCY WITH LOCAL ZONING ORDINANCES. 10

4–602. 11

THIS SUBTITLE APPLIES ONLY TO THE DEVELOPM ENT OF MIDDLE HOUSIN G 12
ON LAND ZONED FOR SINGLE–FAMILY RESIDENTIAL USE. 13

4–603. 14

(A) IT IS THE POLICY OF T HE STATE TO PROMOTE A ND ENCOURAGE 15
BUILDING MIDDLE HOUS ING UNITS ON LAND ZO NED FOR SINGLE–FAMILY 16
RESIDENTIAL USE TO MEET THE HOUSING NEEDS OF THE STATE. 17

(B) (1) EXCEPT AS PROVIDED IN THIS SUBTITLE AND SU BJECT TO 18
PARAGRAPH (2) OF THIS SUBSECTION , THIS SUBTITLE DOES N OT ALTER OR 19
ABROGATE ANY ZONING POWER OR RELATED AUT HORITY GRANTED TO A LOCAL 20
JURISDICTION UNDER THIS TITLE. 21

(2) LOCAL JURISDICTIONS S HALL ESTABLISH POLIC IES THAT 22
FURTHER THE INTENT OF THIS SUBTITLE. 23

4–604. 24

(A) THIS SECTION DOES NOT APPLY TO A RESTRICTION ON USE ON HISTORIC 25
PROPERTY THAT IS LIS TED IN OR DETERMINED BY THE DIRECTOR OF THE 26
MARYLAND HISTORICAL TRUST TO BE ELIGIBLE FOR INCLUSION IN THE MARYLAND 27
REGISTER OF HISTORIC PROPERTIES. 28

8 HOUSE BILL 778

(B) SUBJECT TO SUBSECTION (C) OF THIS S ECTION, EACH LOCAL 1
JURISDICTION WITH LO CAL ZONING AUTHORITY SHALL BY LOCAL LAW ALLOW, BY 2
RIGHT, MIDDLE HOUSING ON: 3

(1) ANY INDIVIDUAL LOT, EXISTING BEFORE JANUARY 1, 2015, THAT: 4

(I) IS LOCATED IN A ZON ING DISTRICT THAT ALLOWS 5
CONSTRUCTION OF SINGLE–FAMILY DETACHED DWELLING UNITS; AND 6

(II) IS VACANT; AND 7

(2) AT LEAST 25% OF THE LOTS IN A NY NEW RESIDENTIAL 8
SUBDIVISION WITH AT LEAST 20 LOTS FOR SINGLE–FAMILY DWELLING UNITS. 9

(C) (1) A LOCAL LAW ADOPTED UNDER THIS SECTION SHALL: 10

(I) REQUIRE FRONT, SIDE, AND REAR SETBACKS THAT ARE NOT 11
GREATER THAN THE SET BACKS REQUIRED FOR A SINGLE–FAMILY DETACHED 12
DWELLING UNIT IN THE SAME ZONING DISTRICT; 13

(II) EXEMPT MIDDLE HOUSIN G FROM MINIMUM LOT S IZE 14
REQUIREMENTS; 15

(III) LIMIT MIDDLE HOUSING TO LOCATIONS SERVED BY PUBLIC 16
WATER AND SEWER SYSTEMS; 17

(IV) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION, IF THE 18
ZONING ADMINISTRATOR DETERMINES THAT ADEQUATE ON –STREET PARKING 19
EXISTS FOR THE PROPO SED MIDDLE HOUSING U NITS, REQUIRE NO T MORE THAN 20
ONE OFF–STREET PARKING SPACE FOR EACH MIDDLE HOUSING UNIT; 21

(V) PROVIDE THAT A MIDDL E HOUSING ZONING OR BUILDING 22
APPLICATION IS SUBJE CT TO THE SAME REVIE W AND APPROVAL PROCE DURES 23
REQUIRED FOR A COMPARABLE SINGLE –FAMILY DETACHED RESIDENTIAL US E 24
APPLICATION; AND 25

(VI) REQUIRE THAT MIDDLE HOUSING MEET PUBLIC HEALTH, 26
SAFETY, AND WELFARE STANDARDS, INCLUDING RELEVANT BUILDING CODES. 27

(2) A LOCAL LAW ADOPTED UN DER THIS SECTION MAY REQUIRE 28
MIDDLE HOUSING TO MEET RELEVANT ADE QUATE PUBLIC FACILITIES 29
REQUIREMENTS. 30

HOUSE BILL 778 9

(3) A LOCAL JURISDICTION MAY NOT IMPOSE UNREA SONABLE 1
LIMITATIONS AFFECTING MIDDLE HOUSING APPLICATIONS CONCERNING: 2

(I) HEIGHT; 3

(II) SETBACKS; 4

(III) BULK; 5

(IV) PARKING; 6

(V) DIMENSIONS OR AREA; OR 7

(VI) SIMILAR REQUIREMENTS. 8

(4) IF THE GUIDELINES WIL L NOT IMPOSE AN UNRE ASONABLE 9
LIMITATION THAT EFFE CTIVELY PROHIBITS MI DDLE HOUSING , A LOCAL 10
JURISDICTION MAY EST ABLISH GUIDELINES TH AT ARE APPROPRIATE F OR LOCAL 11
CONDITIONS TO ASSIST THE ZONING ADMINISTR ATOR IN DETERMINING THE 12
ADEQUACY OF ON–STREET PARKING. 13

10–103. 14

(a) Except as provided in this section, this division does not apply to Baltimore 15
City. 16

(b) The following provisions of this division apply to Baltimore City: 17

(1) this title; 18

(2) § 1–101(m) (Definitions – “Priority funding area”); 19

(3) § 1–101(o) (Definitions – “Sensitive area”); 20

(4) § 1–201 (Visions); 21

(5) § 1–206 (Required education); 22

(6) § 1–207 (Annual report – In general); 23

(7) § 1–208 (Annual report – Measures and indicators); 24

(8) Title 1, Subtitle 3 (Consistency); 25

10 HOUSE BILL 778

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties – 1
Comprehensive Plans; Implementation); 2

(10) § 4–104(c) (Limitations – Bicycle parking); 3

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 4

(12) § 4–205 (Administrative adjustments); 5

(13) § 4–208 (Exceptions – Maryland Accessibility Code); 6

(14) § 4–210 (Permits and variances – Solar panels); 7

(15) § 4–211 (Change in zoning classification – Energy generating systems); 8

(16) § 4–215 (Pollinator–friendly vegetation management); 9

(17) § 4–216 (Limitations – Family child care homes and large family child 10
care homes); 11

(18) Title 4, Subtitle 5 (Accessory Dwelling Units); 12

(19) TITLE 4, SUBTITLE 6 (MIDDLE HOUSING); 13

(20) § 5–102(d) (Subdivision regulations – Burial sites); 14

[(20)] (21) Title 7, Subtitle 1 (Development Mechanisms); 15

[(21)] (22) Title 7, Subtitle 2 (Transfer of Development Rights); 16

[(22)] (23) Title 7, Subtitle 3 (Development Rights and Responsibilities 17
Agreements); 18

[(23)] (24) Title 7, Subtitle 4 (Inclusionary Zoning); 19

[(24)] (25) Title 7, Subtitle 5 (Housing Expansion and Affordability); and 20

[(25)] (26) Title 11, Subtitle 2 (Civil Penalty). 21

SECTION 2. AND BE IT FU RTHER ENACTED, That this Act shall take effect 22
January 1, 2027. 23