Land Use - Transit-Oriented Development - Alterations (Maryland Transit and Housing Opportunity Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0894*

HOUSE BILL 894
R2, Q8 (6lr0334)
ENROLLED BILL
— Economic Matters and Environment and Transportation/Finance and Education,
Energy, and the Environment —
Introduced by The Speaker (By Request – Administration) and Delegates Acevero,
Allen, Amprey, Behler, Bhandari, Boafo, Boyce, Coley, Ebersole, Edelson,
Fennell, Foley, Guyton, Harrison, Hill, Holmes, Hornberger, Ivey, D. Jones,
Kaufman, Kerr, Lewis, Mireku –North, Moon, Moreno, Odom,
Palakovich Carr, Pasteur, Patterson, Phillips, Pruski, Qi, Roberts, Rogers,
Ruff, Simmons, Simpson, Solomon, Stewart, Taveras, Taylor, Turner, Vogel,
White Holland, Wims, Woods, and Ziegler

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

Land Use – Transit–Oriented Development – Alterations 2
(Maryland Transit and Housing Opportunity Act) 3

FOR the purpose of providing for the automatic designation of certain transit –oriented 4
developments as enterprise zones , subject to certain conditions ; requiring the 5
Maryland Economic Development Corporation to prioritize certain redevelopment 6
projects when making loans under the Strategic Infrastructure Revolving Loan 7
Program; altering the authority of local legislative bodies to regulate land use 8
2 HOUSE BILL 894

planning on land located near certain transit stations; delaying the collection of 1
certain development excise taxes and development impact fees for certain residential 2
real estate projects, subject to a certain exception exceptions; adding the use of project 3
labor agreements as a scoring pref erence for projects financed by the 4
Transit–Oriented Development Capital Grant and Revolving Loan Fund; applying 5
certain provisions of this Act retroactively; and generally relating to transit–oriented 6
development. 7

BY renumbering 8
Article – Economic Development 9
Section 5–709 10
to be Section 5–710 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2025 Supplement) 13

BY repealing and reenacting, without amendments, 14
Article – Economic Development 15
Section 5–701(a) and 10–134(b) 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, with amendments, 19
Article – Economic Development 20
Section 5–701(d), 5–707(e)(1), and 10–134(d) 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23

BY adding to 24
Article – Economic Development 25
Section 5–709 26
Annotated Code of Maryland 27
(2024 Replacement Volume and 2025 Supplement) 28

BY repealing and reenacting, without amendments, 29
Article – Land Use 30
Section 1–101(a) and (g) and 7–501(a) and (i) 31
Annotated Code of Maryland 32
(2012 Volume and 2025 Supplement) 33

BY repealing and reenacting, with amendments, 34
Article – Land Use 35
Section 1–401(b), 4–104, and 10–103(b) 36
Annotated Code of Maryland 37
(2012 Volume and 2025 Supplement) 38

BY adding to 39
Article – Local Government 40
HOUSE BILL 894 3

Section 20–128 1
Annotated Code of Maryland 2
(2013 Volume and 2025 Supplement) 3

BY repealing and reenacting, with amendments, 4
Article – Transportation 5
Section 7–1204(b)(2) 6
Annotated Code of Maryland 7
(2020 Replacement Volume and 2025 Supplement) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That Section(s) 5 –709 of Article – Economic Development of the Annotated Code of 10
Maryland be renumbered to be Section(s) 5–710. 11

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12
as follows: 13

Article – Economic Development 14

5–701. 15

(a) In this subtitle the following words have the meanings indicated. 16

(d) “Enterprise zone” means an area: 17

(1) that meets the requirements of § 5 –704(a) of this subtitle and is 18
designated as an enterprise zone by the Secretary under § 5–704(b) of this subtitle; 19

(2) (I) DESIGNATED AS A TRAN SIT–ORIENTED DEVELOPMENT 20
UNDER § 7–101 OF THE TRANSPORTATION ARTICLE; AND 21

(II) THAT IS SERVED BY A RAIL TRANSIT STATION THAT 22
RECEIVES AT LEAST HOURLY SERVICE ON AVERAGE FROM 8:00 A.M. UNTIL 6:00 P.M. 23
MONDAY THROUGH FRIDAY; AND 24

(III) DESIGNATED AS AN ENT ERPRISE ZONE IN ACCO RDANCE 25
WITH § 5–709 OF THIS SUBTITLE; 26

[(2)] (3) designated as an enterprise zone by the United States 27
government under 42 U.S.C. §§ 11501 through 11505; or 28

[(3)] (4) designated as an empowerment zone or enterprise community by 29
the United States government under 26 U.S.C. §§ 1391 through 1397F. 30

5–707. 31

4 HOUSE BILL 894

(e) (1) (i) Notwithstanding subsection (d) of this section, except for a 1
business entity certified to receive a property tax credit under § 9–103 of the Tax – Property 2
Article for a tax year beginning before July 1, 2008, a business entity located in a n 3
enterprise zone may not receive the incentives and initiatives set forth in subsection (a)(1) 4
and (2) of this section if the entity is located on land or within improvements owned by the 5
federal government, the State, a county, or a municipal corporation unless the business 6
entity has first utilized all applicable property tax exemptions under Title 7 of the 7
Tax – Property Article, including entering into any available payment in lieu of tax 8
agreement. 9

(ii) Subparagraph (i) of this paragraph does not apply to a business 10
entity leasing land or improvements owned by the Maryland Economic Development 11
Corporation OR THE MARYLAND DEPARTMENT OF TRANSPORTATION. 12

5–709. 13

(A) (1) AN SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, AN AREA 14
DESIGNATED AS A TRAN SIT–ORIENTED DEVELOPMENT UNDER § 7–101 OF THE 15
TRANSPORTATION ARTICLE BEFORE OCTOBER 1, 2026, THAT IS SERVED BY A RAIL 16
TRANSIT STATION THAT RECEIVES AT LEAST HOURLY SERVICE ON AVERAGE FROM 17
8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH FRIDAY SHALL IS ELIGIBLE TO 18
AUTOMATICALLY BE DESIGNATED AS AN ENTERPRISE ZONE UNDER THE PROVISIONS 19
OF THIS SUBTITLE NOTWITHSTANDING THE LIMIT ON THE NUMBER OF ENTERPRISE 20
ZONES THAT THE SECRETARY MAY DESIGNA TE UNDER § 5–704(B) OF THIS 21
SUBTITLE. 22

(2) THE LOCAL GOVERNMENT OR MULTICOUNTY AGENCY WITH LAND 23
USE AND PLANNING RES PONSIBILITY FOR THE AREA THAT REQUESTED THE AREA 24
BE DESIGNATED AS A T RANSIT–ORIENTED DEVELOPMENT MAY ELECT , BY 25
ORDINANCE, RESOLUTION, OR SIMILAR ACTION , TO DESIGNATE THE ARE A AS AN 26
ENTERPRISE ZONE. 27

(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN AREA 28
DESIGNATED AS A TRAN SIT–ORIENTED DEVELOPMENT UNDER § 7–101 OF THE 29
TRANSPORTATION ARTICLE ON OR AFTER OCTOBER 1, 2026, THAT IS SERVED BY A 30
RAIL TRANSIT STATION THAT RECEIVES AT LEA ST HOURLY SERVICE ON AVERAGE 31
FROM 8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH FRIDAY SHALL 32
AUTOMATICALLY BE DESIGNATED AS AN ENTERPRISE ZONE NOTWITHSTANDING THE 33
LIMIT ON THE NUMBER OF ENTERPRISE ZONES THAT THE SECRETARY MAY 34
DESIGNATE UNDER § 5–704(B) OF THIS SUBTITLE. 35

(2) (I) AT THE TIME A TRANSIT–ORIENTED DEVELOPMENT AREA IS 36
DESIGNATED, THE LOCAL GOVERNMENT OR MULTICOUNTY AGENCY WITH LAND USE 37
AND PLANNING RESPONS IBILITY FOR THE AREA THAT REQUESTED THE A REA BE 38
HOUSE BILL 894 5

DESIGNATED AS A TRAN SIT–ORIENTED DEVELOPMENT MAY ELECT NOT TO 1
DESIGNATE THE AREA AS AN ENTERPRISE ZONE. 2

(II) AN ELECTION MADE UNDE R SUBPARAGRAPH (I) OF THIS 3
PARAGRAPH SHALL BE D ONE, IN WRITING , TO THE SUSTAINABLE GROWTH 4
SUBCABINET ESTABLISHE D UNDER § 9–1403 OF THE STATE GOVERNMENT 5
ARTICLE. 6

10–134. 7

(b) (1) There is a Strategic Infrastructure Revolving Loan Program in the 8
Maryland Economic Development Corporation. 9

(2) The purpose of the Program is to make loans for targeted investments 10
in real estate and infrastructure projects to support transformative place–making, enhance 11
transit–oriented development, enhance community development, and achieve inclusive and 12
equitable economic growth objectives, with a focus on bringing underutilized assets into 13
performance and generating revenue. 14

(d) (1) An applicant for a loan u nder this section shall submit to the 15
Corporation an application on the form that the Corporation requires. 16

(2) The application shall include: 17

(i) a detailed strategic plan for the targeted investment; 18

(ii) the amount of money required for the a ctivities described in the 19
strategic plan; 20

(iii) the money available to the applicant without financial assistance 21
from the Program; 22

(iv) the amount of financial assistance requested from the Program; 23

(v) information relating to the financial s tatus of the applicant, 24
including, if applicable: 25

1. a current balance sheet; 26

2. a profit and loss statement; and 27

3. credit references; and 28

(vi) any other relevant information that the Corporation requests. 29

6 HOUSE BILL 894

(3) An applicant is eligible for a loan under the Program for projects located 1
in a sustainable community, priority funding area, or transit–oriented development area. 2

(4) The Corporation shall establish an Advisory Loan Committee to review 3
loan applications and make recommendations to the Corporation on approval. 4

(5) In making loans, the Corporation shall prioritize projects that: 5

(i) activate underutilized property owned by the government and 6
institutions; 7

(ii) REDEVELOP STATE–OWNED LAND CONTIGUOUS TO R AIL 8
TRANSIT STATIONS THAT IS OWNED BY THE STATE, BALTIMORE CITY, OR THE 9
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY; 10

(III) offer significant development or redevelopment value; 11

[(iii)] (IV) leverage private investment; and 12

[(iv)] (V) have the potential for significant job growth or retention. 13

(6) Loans may be used: 14

(i) to acquire property, including vacant sites; 15

(ii) for design and development of a project; and 16

(iii) for rehabilitation, construction, and demolition. 17

Article – Land Use 18

1–101. 19

(a) In this division the following words have the meanings indicated. 20

(g) (1) “Legislative body” means the elected body of a local jurisdiction. 21

(2) “Legislative body” includes: 22

(i) the board of county commissioners; 23

(ii) the county council; and 24

(iii) the governing body of a municipal corporation. 25

1–401. 26
HOUSE BILL 894 7

(b) The following provisions of this division apply to a charter county: 1

(1) this subtitle, including Parts II and III (Charter county – 2
Comprehensive plans); 3

(2) § 1–101(l), (m), and (o) (Definitions – “Plan”, “Priority funding area”, 4
and “Sensitive area”); 5

(3) § 1–201 (Visions); 6

(4) § 1–206 (Required education); 7

(5) § 1–207 (Annual report – In general); 8

(6) § 1–208 (Annual report – Measures and indicators); 9

(7) Title 1, Subtitle 3 (Consistency); 10

(8) Title 1, Subtitle 5 (Growth Tiers); 11

(9) § 4–104(c) (Limitations – [Bicycle parking)] PARKING); 12

(10) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 13

(11) § 4–104(E) (LIMITATIONS – MIXED–USE DEVELOPMENT); 14

(12) § 4–104(F) (LIMITATIONS – STATE–OWNED LAND LAND FOR 15
TRANSPORTATION USE); 16

[(11)] (13) § 4–208 (Exceptions – Maryland Accessibility Code); 17

[(12)] (14) § 4–210 (Permits and variances – Solar panels); 18

[(13)] (15) § 4 –211 (Change in zoning classification – Energy generating 19
systems); 20

[(14)] (16) § 4–212 (Agritourism); 21

[(15)] (17) § 4–213 (Alcohol production); 22

[(16)] (18) § 4–214 (Agricultural alcohol production); 23

[(17)] (19) § 4–215 (Pollinator–friendly vegetation management); 24

8 HOUSE BILL 894

[(18)] (20) § 4–216 (Limitations – Family child care homes and large family 1
child care homes); 2

[(19)] (21) Title 4, Subtitle 5 (Accessory Dwelling Units); 3

[(20)] (22) § 5–102(d) (Subdivision regulations – Burial sites); 4

[(21)] (23) § 5–104 (Major subdivision – Review); 5

[(22)] (24) Title 7, Subtitle 1 (Development Mechanisms); 6

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

[(24)] (26) except in Montgomery Count y or Prince George’s County, Title 8
7, Subtitle 3 (Development Rights and Responsibilities Agreements); 9

[(25)] (27) Title 7, Subtitle 4 (Inclusionary Zoning); 10

[(26)] (28) Title 7, Subtitle 5 (Housing Expansion and Affordability); 11

[(27)] (29) § 8–401 (Conversion of overhead facilities); 12

[(28)] (30) for Baltimore County only, Title 9, Subtitle 3 (Single –County 13
Provisions – Baltimore County); 14

[(29)] (31) for Frederick County only, Title 9, Subtitle 10 (Single –County 15
Provisions – Frederick County); 16

[(30)] (32) for Howard County only, Title 9, Subtitle 13 (Single –County 17
Provisions – Howard County); 18

[(31)] (33) for Talbot County only, Title 9, Subtitle 18 (Single –County 19
Provisions – Talbot County); and 20

[(32)] (34) Title 11, Subtitle 2 (Civil Penalty). 21

4–104. 22

(a) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24

(2) “ADEQUATE PARKING STUD Y” MEANS A DATA –SUPPORTED 25
ANALYSIS PREPARED FO R A DEVELOPMENT BY A LOCAL JURISDICTION T O 26
EVALUATE WHETHER ONE OR MORE PARKING REQUIREMENTS, PARKING RATIOS, OR 27
HOUSE BILL 894 9

PARKING MANAGEMENT S TANDARDS POTENTIALLY IMPOSED ON A DEVELOP MENT 1
ARE JUSTIFIED TO ADDRESS LOCAL PARKING ISSUES. 2

(2) (3) “MIXED–USE” HAS THE MEANING STAT ED IN § 7–501 OF 3
THIS ARTICLE. 4

(3) (4) [In this section, “modula r] “MODULAR dwelling” means a 5
building assembly or system of building subassemblies designed for habitation as a 6
dwelling for one or more individuals: 7

[(1)] (I) that includes the necessary electrical, plumbing, heating, 8
ventilating, and other service systems; 9

[(2)] (II) that is made or assembled by a manufacturer on or off the 10
building site for installation, or assembly and installation, on the building site; and 11

[(3)] (III) installed and set up according to the manufacturer’s instructions 12
on an approved foundation and support system. 13

(b) (1) The powers granted to a local jurisdiction under this subtitle do not: 14

[(1)] (I) grant the local jurisdiction powers in any substantive area not 15
otherwise granted to the local jurisdiction by any other public general or public local law; 16

[(2)] (II) restrict the local jurisdiction from exercising any power granted 17
to the local jurisdiction by any other public general or public local law or otherwise; 18

[(3)] (III) authorize the local jurisdiction or i ts officers to engage in any 19
activity that is beyond their power under any other public general or public local law or 20
otherwise; or 21

[(4)] (IV) preempt or supersede the regulatory authority of any unit of the 22
State under any public general law. 23

(2) SUBSECTIONS (C)(2) AND (E) OF THIS SECTION DO NOT APPLY TO: 24

(I) A RAIL STATION LOCAT ED ON THE CAMPUS OF AN 25
INSTITUTION OF HIGHER EDUCATION, AS DEFINED IN § 10–101 OF THE EDUCATION 26
ARTICLE; OR 27

(II) PROPERTY THAT: 28

1. IS PARTIALLY LOCATED OUTSIDE: 29

10 HOUSE BILL 894

A. FOR THE PROVISIONS IN SUBSECTION (C)(2) OF THIS 1
SECTION, 0.25 MILES OF THE RAIL TRANSIT STATION; OR 2

B. FOR THE PROVISIONS I N SUBSECTION (E) OF THIS 3
SECTION, 0.5 MILES OF THE RAIL TRANSIT STATION; OR 4

2. IS IN AN AREA THAT WAS ZONED FOR SINGLE–FAMILY 5
RESIDENTIAL USE ON JANUARY 1, 2026. 6

(c) (1) (I) If a legislative body regulates off –street parking, the legislative 7
body shall require space for the parking of bicycles in a manner that the legislative body 8
considers appropriate. 9

[(2)] (II) A legislative body may allow a reduction in the number of 10
required automobile parking spaces based on the availability of space for parking bicycles. 11

(2) A EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, 12
A LEGISLATIVE BODY OR OTHER LOCAL AGENCY W ITH LAND USE AUTHORI TY MAY 13
NOT IMPOSE A MINIMUM OFF–STREET PARKING REQUIREMENT ON A RESIDENTIAL 14
OR MIXED –USE DEVELOPMENT THAT IS LOCATED WITHIN 0.25 MILES OF A RAIL 15
TRANSIT STATION THAT RECEIVES AT LEAST HOURLY SERVICE ON AVERAGE FROM 16
8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH FRIDAY. 17

(3) (I) A LEGISLATIVE BODY OR OTHER LOCAL AGENCY WITH LAND 18
USE AUTHORITY MAY IMPOSE A MINIMUM OFF–STREET PARKING REQUIREMENT ON 19
A RESIDENTIAL OR MIXED–USE DEVELOPMENT THAT IS LOCATED WITHIN 0.25 MILES 20
OF A RAIL TRANSIT ST ATION THAT RECEIVES AT LEAST HOURLY SERV ICE ON 21
AVERAGE FROM 8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH FRIDAY IF: 22

(I) 1. THE LEGISLATIVE BODY OR OTHER LOCAL AGENC Y 23
HAS PERFORMED AN ADE QUATE PARKING STUDY WITHIN THE 3 YEARS PRIOR TO 24
THE SUBMISSION OF A DEVELOPMENT APPLICATION; AND 25

(II) 2. THE DEPARTMENT OF TRANSPORTATION 26
CONCURRED IN THE FINDINGS OF THE PARKING STUDY. 27

(II) 1. THE DEPARTMENT OF TRANSPORTATION SHALL 28
PROVIDE ITS DECISION ON THE FINDINGS OF T HE ADEQUATE PARKING STU DY 29
WITHIN 45 DAYS AFTER THE FINDINGS ARE SUBMITTED TO THE DEPARTMENT. 30

2. FAILURE TO PROVIDE A DECISION WITHIN 45 DAYS 31
SHALL BE DEEMED AS THE DEPARTMENT OF TRANSPORTATION CONCURRING WITH 32
THE FINDINGS OF THE ADEQUATE PARKING STUDY. 33

HOUSE BILL 894 11

(d) A legislative body may not prohibit the placement of a new manufactured 1
home or modular dwelling in a zone that allows single–family residential uses if the home 2
or dwelling: 3

(1) (i) meets the definition of modular dwelling under subsection (a) of 4
this section; or 5

(ii) meets the definition of a manufactured home in § 9–102(a) of the 6
Commercial Law Article and is, or will be after purchase, converted to real property in 7
accordance with Title 8B, Subtitle 2 of the Real Property Article; or 8

(2) is located on land: 9

(i) currently or previously owned by the federal government; 10

(ii) greater than 80 acres in size; and 11

(iii) that was the site of a former U.S. military reservation. 12

(E) A LOCAL JURISDICTION ’S ZONING REGULATIONS SHALL ALLOW 13
MIXED–USE DEVELOPMENT ON L AND DESIGNATED FOR R ESIDENTIAL USE OR 14
APPROPRIATE COMMERCIAL USE FOR MIXED–USE DEVELOPMENT WITHIN 0.5 MILES 15
OF A RAIL TRANSIT ST ATION THAT RECEIVES AT LEAST HOURLY SERV ICE ON 16
AVERAGE FROM 8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH FRIDAY. 17

(F) FOR STATE–OWNED LAND THAT IS OWNED BY THE STATE, BALTIMORE 18
CITY, OR THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY THAT IS 19
IN USE FOR A TRANSPORTATION PURPOSE CONTIGUOUS TO A RAIL TRANSIT STATION 20
THAT RECEIVES AT LEA ST HOURLY SERVICE ON AVERAGE FROM 8:00 A.M. UNTIL 21
6:00 P.M. MONDAY THROUGH FRIDAY, A LEGISLATIVE BODY O R OTHER LOCAL 22
AGENCY WITH LAND USE AUTHORITY MAY NOT IMPOSE LIMIT ATIONS OR 23
RESTRICTIONS ON LAND USE CLASSIFICATION , HEIGHT, OR SETBACK , OR ANY 24
SIMILAR REQUIREMENTS IF THE LAN D IS SUBJECT TO A TR ANSIT–ORIENTED 25
DEVELOPMENT PLAN APPROVED BY THE DEPARTMENT OF TRANSPORTATION AND 26
DEVELOPED IN COORDINATION WITH THE LOCAL JURISDICTION. 27

(G) SUBSECTIONS (E) AND (F) OF THIS SECTION MAY NOT BE CONSTRUED TO 28
ALTER THE LAND USE AUTHORITY OF A LOCAL JURISDICTION GOVERNING: 29

(1) ENVIRONMENTAL OR NATURAL RESOURCES CONCERNS; 30

(2) PUBLIC HEALTH AND SAFETY CONSIDERATIONS; OR 31

(3) ADEQUATE PUBLIC FACILITIES ORDINANCES. 32

12 HOUSE BILL 894

7–501. 1

(a) In this subtitle the following words have the meanings indicated. 2

(i) (1) “Mixed–use” means any combination of a residential use with a 3
recreational, office, dining, or retail use. 4

(2) “Mixed–use” does not mean any combination of a residential use with 5
an industrial or hazardous use. 6

10–103. 7

(b) The following provisions of this division apply to Baltimore City: 8

(1) this title; 9

(2) § 1–101(m) (Definitions – “Priority funding area”); 10

(3) § 1–101(o) (Definitions – “Sensitive area”); 11

(4) § 1–201 (Visions); 12

(5) § 1–206 (Required education); 13

(6) § 1–207 (Annual report – In general); 14

(7) § 1–208 (Annual report – Measures and indicators); 15

(8) Title 1, Subtitle 3 (Consistency); 16

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties – 17
Comprehensive Plans; Implementation); 18

(10) § 4–104(c) (Limitations – [Bicycle parking)] PARKING); 19

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 20

(12) § 4–104(E) (LIMITATIONS – MIXED–USE DEVELOPMENT); 21

(13) § 4–104(F) (LIMITATIONS – STATE–OWNED LAND LAND FOR 22
TRANSPORTATION USE); 23

[(12)] (14) § 4–205 (Administrative adjustments); 24

[(13)] (15) § 4–208 (Exceptions – Maryland Accessibility Code); 25

HOUSE BILL 894 13

[(14)] (16) § 4–210 (Permits and variances – Solar panels); 1

[(15)] (17) § 4 –211 (Change in zoning classification – Energy generating 2
systems); 3

[(16)] (18) § 4–215 (Pollinator–friendly vegetation management); 4

[(17)] (19) § 4–216 (Limitations – Family child care homes and large family 5
child care homes); 6

[(18)] (20) Title 4, Subtitle 5 (Accessory Dwelling Units); 7

[(19)] (21) § 5–102(d) (Subdivision regulations – Burial sites); 8

[(20)] (22) Title 7, Subtitle 1 (Development Mechanisms); 9

[(21)] (23) Title 7, Subtitle 2 (Transfer of Development Rights); 10

[(22)] (24) Title 7, Subtitle 3 (Development Rights and Responsibilities 11
Agreements); 12

[(23)] (25) Title 7, Subtitle 4 (Inclusionary Zoning); 13

[(24)] (26) Title 7, Subtitle 5 (Housing Expansion and Affordability); and 14

[(25)] (27) Title 11, Subtitle 2 (Civil Penalty). 15

Article – Local Government 16

20–128. 17

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19

(2) “DEVELOPMENT EXCISE TAX” MEANS AN EXCISE TAX IMPOSED BY 20
A COUNTY OR MUNICIPA LITY ON THE CONSTRUC TION OR IMPROVEMENT OF A 21
BUILDING. 22

(3) “DEVELOPMENT IMPACT FE E” MEANS A FEE IMPOSED BY A 23
COUNTY OR MUNICIPALITY FOR THE PURPOSE OF FINANCING ANY OF THE CAPITAL 24
COSTS OF ADDITIONAL OR EXPANDED PUBLIC W ORKS, IMPROVEMENTS, AND 25
FACILITIES REQUIRED TO ACCOMMODATE NEW CONSTRUCTION OR DEVELOPMENT. 26

14 HOUSE BILL 894

(4) “QUALIFYING RESIDENTIA L REAL ESTATE PROJEC T” MEANS A 1
MIXED–USE DEVELOPMENT THAT: 2

(I) INCLUDES RESIDENTIAL UNITS; AND 3

(II) IS LOCATED WITHIN A TRANSIT–ORIENTED DEVELOPMENT 4
DESIGNATED UNDER § 7–101 OF THE TRANSPORTATION ARTICLE, WHERE THE 5
DEVELOPMENT IS SERVED BY A RAIL TRANSIT STATION THAT RECEIVES AT LEA ST 6
HOURLY SERVICE ON AVERAGE FROM 8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH 7
FRIDAY. 8

(B) THIS SECTION APPLIES ONLY TO: 9

(1) A COUNTY THAT: 10

(I) IS A CHARTER COUNTY THAT IMPOSES , BY LAW , 11
DEVELOPMENT IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; 12

(II) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT 13
REQUIRE THE PAYMENT OF DEVELOPMENT IMPAC T FEES , SURCHARGES, OR 14
DEVELOPMENT EXCISE TAXES; OR 15

(III) IS A COMMISSION COUNTY THAT: 16

1. HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT 17
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 18

2. HAS ENACTED , BY LOCAL LAW , DEVELOPMENT 19
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 20

(2) A MUNICIPALITY THAT IMPOSES, BY LOCAL LAW , DEVELOPMENT 21
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES. 22

(C) THIS SECTION DOES NOT APPLY TO A DEVELOPME NT EXCISE TAX OR 23
DEVELOPMENT IMPACT F EE IMPOSED FOR THE P URPOSE OF FUNDING TH E 24
CONSTRUCTION OF A CONNECTION TO A PUBLIC WATER OR SEWER SYSTEM. 25

(D) ANY DEVELOPMENT EXCIS E TAX OR DEVELOPMENT IMPACT FEE 26
IMPOSED ON A QUALIFYING RESIDEN TIAL REAL ESTATE PRO JECT UNDER THE 27
AUTHORITY GRANTED IN THIS ARTICLE MAY NOT BE COLLECTED UNTIL AFTER: 28

(1) CONSTRUCTION OF THE QUALIFYING RESIDENTIAL REAL ESTATE 29
PROJECT IS COMPLETE; AND 30
HOUSE BILL 894 15

(2) A CERTIFICATE OF OCCUPANCY, AN OCCUPANCY PERMIT, OR ANY 1
OTHER LOCAL EQUIVALENT HAS BEEN ISSUED FOR THE QUALIFYING RESIDENTIAL 2
REAL ESTATE PROJECT. 3

(E) NOTWITHSTANDING ANY O THER LAW , A COUNTY OR MUNICIPA LITY 4
THAT IMPOSES A DEVEL OPMENT EXCISE TAX OR DEVELOPMENT IMPACT FEE ON A 5
QUALIFYING RESID ENTIAL REAL ESTATE P ROJECT UNDER THE AUT HORITY 6
GRANTED IN THIS ARTI CLE MAY REVOKE A CER TIFICATE OF OCCUPANC Y, AN 7
OCCUPANCY PERMIT, OR ANY OTHER LOCAL E QUIVALENT IF THE DEV ELOPMENT 8
EXCISE TAX OR DEVELO PMENT IMPACT FEE IS NOT PAID WITHIN A RE ASONABLE 9
TIME PERIOD SET BY THE COUNTY OR MUNICIPALITY. 10

Article – Transportation 11

7–1204. 12

(b) (2) The Sustainable Growth Subcabinet established under § 13
9–1406 of the State Government Article may establish: 14

(i) Different eligibility requirements and objective scoring 15
standards for different types of financial assistance; and 16

(ii) Scoring preferences for applications that demonstrate that the 17
proposed project will: 18

1. Enhance access to transit for low –income and minority 19
residents of the local jurisdiction; 20

2. Enhance access to transit in areas with affordable housing 21
and a diversity of job and educational opportunities; [or] 22

3. Encourage development around underdeveloped and 23
underutilized transit stations in transit–oriented developments; OR 24

4. USE PROJECT LABOR AGREEMENTS. 25

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26
as follows: 27

Article – Local Government 28

20–128. 29

16 HOUSE BILL 894

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2

(2) “DEVELOPMENT EXCISE TAX” MEANS AN EXCISE TAX IMPOSED BY 3
A COUNTY OR MUNICIPA LITY ON THE CONSTRUC TION OR IMPROVEMENT OF A 4
BUILDING. 5

(3) “DEVELOPMENT IMPACT FE E” MEANS A FEE IMPOSED BY A 6
COUNTY OR MUNICIPALITY FOR THE PURPOSE OF FINANCING ANY OF THE CAPITAL 7
COSTS OF ADDITIONAL OR EXPAND ED PUBLIC WORKS , IMPROVEMENTS, AND 8
FACILITIES REQUIRED TO ACCOMMODATE NEW CONSTRUCTION OR DEVELOPMENT. 9

(4) “RESIDENTIAL REAL ESTA TE PROJECT ” MEANS A MIXED –USE 10
DEVELOPMENT THAT: 11

(I) INCLUDES RESIDENTIAL UNITS; AND 12

(II) IS LOCATED WITHIN A TRANSI T–ORIENTED DEVELOPMENT 13
DESIGNATED UNDER § 7–101 OF THE TRANSPORTATION ARTICLE, WHERE THE 14
DEVELOPMENT IS SERVE D BY A RAIL TRANSIT STATION THAT RECEIVE S AT LEAST 15
HOURLY SERVICE ON AVERAGE FROM 8:00 A.M. UNTIL 6:00 P.M. MONDAY THROUGH 16
FRIDAY. 17

(B) THIS SECTION APPLIES ONLY TO: 18

(1) A COUNTY THAT: 19

(I) IS A CHARTER COUNTY THAT IMPOSES , BY LAW , 20
DEVELOPMENT IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; 21

(II) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT 22
REQUIRE THE PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES, OR 23
DEVELOPMENT EXCISE TAXES; OR 24

(III) IS A COMMISSION COUNTY THAT: 25

1. HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT 26
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 27

2. HAS ENACTED , BY LOCAL LAW , DEVELOPMENT 28
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 29

(2) A MUNICIPALITY THAT IMPOSES, BY LOCAL LAW , DEVELOPMENT 30
IMPACT FEES, SURCHARGES, OR DEVELOPMENT EXCISE TAXES. 31
HOUSE BILL 894 17

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND (3) OF THIS 1
SUBSECTION, ANY DEVELOPMENT EXCIS E TAX OR DEVELOPMENT IMPACT FEE 2
IMPOSED ON A RESIDEN TIAL REAL ESTATE PRO JECT UNDER THE AUTHORITY 3
GRANTED IN THIS ARTICLE MAY NOT BE COLLECTED UNTIL AFTER: 4

(I) CONSTRUCTION OF THE RESIDENTIAL REAL EST ATE 5
PROJECT IS COMPLETE; AND 6

(II) ALL REQUIREMENTS FOR A CERTIFICATE OF OCC UPANCY, 7
AN OCCUPANCY PERMIT , OR ANY OTHER LOCAL EQUIVALENT THA T HAS BEEN 8
ISSUED FOR THE RESIDENTIAL REAL ESTATE PROJECT HAVE BEEN MET. 9

(2) A DEVELOPMENT EXCISE T AX OR DEVELOPMENT IM PACT FEE 10
IMPOSED ON A RESI DENTIAL REAL ESTATE PROJECT UNDER THE AUTHORITY 11
GRANTED IN THIS ARTI CLE MAY BE COLLECTED AS A PRECONDITION TO 12
CONDUCTING A FINAL INSPECTION OF THE PROJECT, BUT NOT MORE THAN 30 DAYS 13
BEFORE PRIOR TO THE DATE OF THE INSPECTION. 14

(3) THIS SUBSECTION DOES NOT APPLY TO THE COL LECTION OF A 15
DEVELOPMENT EXCISE TAX OR DEVELOPMENT IMPACT FEE THAT WAS IMPOSED ON 16
A RESIDENTIAL REAL E STATE PROJECT TO FINANCE A COUNTY DEBT THAT WAS 17
INCURRED ON OR BEFORE JANUARY 1, 2026. 18

(D) NOTWITHSTANDING ANY OTHER LAW , A COUNTY OR MUNICIPA LITY 19
THAT IMPOSES A DEVEL OPMENT EXCISE TAX OR DEVELOPMENT IMPACT FEE ON A 20
RESIDENTIAL REAL EST ATE PROJECT UNDER THE AUTHORITY GRANTED IN THIS 21
ARTICLE MAY DENY, WITHHOLD, OR REVOKE A CERTIFIC ATE OF OCCUPANCY , AN 22
OCCUPANCY PERM IT, OR ANY OTHER LOCAL E QUIVALENT IF THE DEV ELOPMENT 23
EXCISE TAX OR DEVELO PMENT IMPACT FEE IS NOT PAID WITHIN A RE ASONABLE 24
TIME PERIOD SET BY THE COUNTY OR MUNICIPALITY. 25

SECTION 3. 4. AND BE IT FURTHER ENACTED, That § 4–104(e) of the Land Use 26
Article, as enacted by Section 2 of this Act, shall apply only to land use rezonings or actions 27
taken by a legislative body on or after the effective date of this Act. 28

SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 29
effect October 1, 2026, contingent on the failure of Chapter ____ (S.B. 325/H.B. 548) of the 30
Acts of the General Assembly of 2026, and if Chapter ____ (S.B. 325/H.B. 548) becomes 31
effective, Section 3 of thi s Act, with no further action required by the General Assembly, 32
shall be null and void. 33

SECTION 4. AND BE IT FURTHER ENACTED, That § 5 –709 of the Economic 34
Development Article, as enacted by Section 2 of this Act, shall apply retroactively to an 35
area designated prior to the effective date of this Act as a transit –oriented development 36
18 HOUSE BILL 894

under § 7–101 of the Transportation Article and that is served by a rail transit station that 1
receives at least hourly service on average from 8:00 a.m. until 6:00 p.m. Mo nday through 2
Friday. 3

SECTION 5. 6. AND BE IT FURTHER ENACTED, That , except as provided in 4
Section 5 of this Act, this Act shall take effect October 1, 2026. 5

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