Residential-in-Commercial-Zone Laws - Study (Bring Back Main Street 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.
*hb1137*

HOUSE BILL 1137
L6, C9 6lr2225
CF SB 829
By: Delegate Allen
Introduced and read first time: February 11, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026

CHAPTER ______

AN ACT concerning 1

Land Use – Multifamily Developments and Mixed–Use Developments – 2
Authorization 3
Residential–in–Commercial–Zone Laws – Study 4
(Bring Back Main Street Act) 5

FOR the purpose of requiring certain counties to allow multifamily developments and 6
mixed–use developments as a permitted use on certain parcels or lots; prohibiting 7
certain counties from imposing certain restrictions, requirements, or limitations on 8
permitted developments; authorizing certain counties to require a permitted 9
development to have a certain percentage of available floor space dedicated to retail 10
uses and to include on –site parking; prohibiting a restriction on use from imposing 11
or acting to impose certain limitations on the development of a multifamily 12
development or mixed –use development; and generally relating to multifamily 13
developments and mixed –use developments requiring the Department of Housing 14
and Community Development to study and make recommendations regarding laws 15
to require certain local jurisdictions to allow certain residential or mixed –use 16
developments as a permitted use on certain parcels or lots zoned for commercial use; 17
and generally relating to residential–in–commercial–zone laws. 18

BY repealing and reenacting, without amendments, 19
Article – Land Use 20
Section 1–101(a) and (b) and 7–501(a), (b), (c), (d), and (i) 21
Annotated Code of Maryland 22
(2012 Volume and 2025 Supplement) 23

2 HOUSE BILL 1137

BY repealing and reenacting, with amendments, 1
Article – Land Use 2
Section 1–401 and 10–103 3
Annotated Code of Maryland 4
(2012 Volume and 2025 Supplement) 5

BY adding to 6
Article – Land Use 7
Section 4–104(e) 8
Annotated Code of Maryland 9
(2012 Volume and 2025 Supplement) 10

BY adding to 11
Article – Real Property 12
Section 2–127 13
Annotated Code of Maryland 14
(2023 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – Land Use 18

1–101. 19

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

(b) “Adaptive reuse” means a change granted by a legislative body under § 4–207 21
of this article to the use restrictions in a zoning classification, as those restrictions are 22
applied to a particular improved property. 23

1–401. 24

(a) Except as provided in this section, this division does not apply to charter 25
counties. 26

(b) The following provisions of this division apply to a charter county: 27

(1) this subtitle, including Parts II and III (Charter county 28
– Comprehensive plans); 29

(2) § 1–101(l), (m), and (o) (Definitions – “Plan”, “Priority funding area”, 30
and “Sensitive area”); 31

(3) § 1–201 (Visions); 32

(4) § 1–206 (Required education); 33
HOUSE BILL 1137 3

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

(6) § 1–208 (Annual report – Measures and indicators); 2

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

(8) Title 1, Subtitle 5 (Growth Tiers); 4

(9) § 4–104(c) (Limitations – Bicycle parking); 5

(10) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 6

(11) § 4–104(E) (MULTIFAMILY DEVELOPME NTS AND MIXED –USE 7
DEVELOPMENTS); 8

(12) § 4–208 (Exceptions – Maryland Accessibility Code); 9

[(12)] (13) § 4–210 (Permits and variances – Solar panels); 10

[(13)] (14) § 4 –211 (Change in zoning classification – Energy generating 11
systems); 12

[(14)] (15) § 4–212 (Agritourism); 13

[(15)] (16) § 4–213 (Alcohol production); 14

[(16)] (17) § 4–214 (Agricultural alcohol production); 15

[(17)] (18) § 4–215 (Pollinator–friendly vegetation management); 16

[(18)] (19) § 4–216 (Limitations – Family child care homes and large family 17
child care homes); 18

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

[(20)] (21) § 5–102(d) (Subdivision regulations – Burial sites); 20

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

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

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

[(24)] (25) except in Montgomery County or Prince George’s County, Title 24
7, Subtitle 3 (Development Rights and Responsibilities Agreements); 25
4 HOUSE BILL 1137

[(25)] (26) Title 7, Subtitle 4 (Inclusionary Zoning); 1

[(26)] (27) Title 7, Subtitle 5 (Housing Expansion and Affordability); 2

[(27)] (28) § 8–401 (Conversion of overhead facilities); 3

[(28)] (29) for Baltimore County only, Title 9, Subtitle 3 (Single –County 4
Provisions – Baltimore County); 5

[(29)] (30) for Frederick County only, Title 9, Subtitle 10 (Single –County 6
Provisions – Frederick County); 7

[(30)] (31) for Howard County only, Title 9, Subtitle 13 (Single –County 8
Provisions – Howard County); 9

[(31)] (32) for Talbot County only, Title 9, Subtitle 18 (Single –County 10
Provisions – Talbot County); and 11

[(32)] (33) Title 11, Subtitle 2 (Civil Penalty). 12

(c) This section supersedes any inconsistent provision of Division II of this article. 13

4–104. 14

(E) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 15
MEANINGS INDICATED. 16

(II) “AFFORDABLE” HAS THE MEANING STAT ED IN § 7–501 OF 17
THIS ARTICLE. 18

(III) “AFFORDABLE DWELLING UNIT” HAS THE MEANING STATED 19
IN § 7–501 OF THIS ARTICLE. 20

(IV) “AREA MEDIAN INCOME ” HAS THE MEANING STAT ED IN § 21
7–501 OF THIS ARTICLE. 22

(V) “MIXED–USE DEVELOPMENT ” MEANS A DEVELOPMENT 23
CONSISTING OF RESIDE NTIAL AND NONRESIDEN TIAL USES IN WHICH T HE 24
NONRESIDENTIAL USES: 25

1. ARE LESS THAN 50% OF THE TOTAL SQUARE FOOTAGE 26
OF THE DEVELOPMENT; AND 27

HOUSE BILL 1137 5

2. ARE LIMITED TO THE F IRST FLOOR OF BUILDI NGS 1
THAT ARE TWO OR MORE STORIES. 2

(VI) “MULTIFAMILY DEVELOPME NT” MEANS A BUILDING 3
DESIGNED FOR FIVE OR MORE DWELLING UNITS IN WHICH: 4

1. THE DWELLING UNITS SHARE A COMMON SEPARATION 5
SUCH AS A CEILING OR WALL; AND 6

2. COMMON ACCESS BETWEE N THE DWELLING UNITS 7
CANNOT BE GAINED THR OUGH AN INTERNAL DOO RWAY, EXCEPT FOR A COMMON 8
HALLWAY. 9

(VII) “PERMITTED DEVELOPMENT” MEANS A MULTIFAMILY 10
DEVELOPMENT OR MIXED –USE DEVELOPMENT ALLO WED AS A PERMITTED U SE 11
UNDER PARAGRAPH (3) OF THIS SUBSECTION. 12

(VIII) “PERMITTED USE” MEANS THE ABILITY TO BE APPROVED 13
WITHOUT REQUIRING A PUBLIC HEARING, VARIANCE, CONDITIONAL USE PERMIT, 14
SPECIAL PERMIT , SPECIAL EXCEPTION , OR ANY OTHER DISCRET IONARY ZONING 15
ACTION REQUIRED UNDER THIS ARTICLE OTHER THAN A DETERMINATION THAT A 16
SITE PLAN CONFORMS WITH APPLICABLE ZONING REGULATIONS. 17

(2) THIS SUBSECTION APPLI ES ONLY TO A COUNTY WITH A 18
POPULATION OF MORE THAN 150,000. 19

(3) A COUNTY SHALL ALLOW M ULTIFAMILY DEVELOPME NTS OR 20
MIXED–USE DEVELOPMENTS AS A PERMITTED USE ON A PARCEL OR LOT THAT IS: 21

(I) CURRENTLY SERVICED B Y A WATER AND SEWER SYSTEM, 22
WHETHER PUBLIC OR PRIVATE; AND 23

(II) LOCATED ON A PARCEL ZONED FOR RECREATION AL OR 24
COMMERCIAL USE. 25

(4) ON A PERMITTED DEVELOPMENT, A COUNTY MAY NOT IMPOSE: 26

(I) DENSITY LIMITS THAT ARE LOWER THAN THE H IGHEST 27
ALLOWABLE DENSITY IN THE COUNTY’S RESIDENTIAL ZONES; 28

(II) SETBACK REQUIREMENTS THAT AR E GREATER THAN THE 29
LESSER OF: 30

6 HOUSE BILL 1137

1. STANDARD UTILITY EASEMENTS; 1

2. EXISTING COMMERCIAL SETBACK REQUIREMENTS 2
FROM SIDE AND REAR LOT LINES; OR 3

3. EXISTING SETBACK REQUIREMENTS FOR A PROPERTY 4
BEING CONVERTED TO RESIDENTIAL OR MIXED–USE THROUGH ADAPTIVE REUSE; 5

(III) RESTRICTIONS ON LOT SIZE OR COVERAGE; 6

(IV) MANDATORY WALLS, FENCES, OR SCREENING; 7

(V) MANDATORY USE OF IMP ERVIOUS PAVEMENT OUT DOORS 8
UNLESS IF NECESSARY FOR: 9

1. DISABILITY ACCOMMODATION; OR 10

2. PUBLIC HEALTH AND SAFETY; OR 11

(VI) MANDATORY NONPUBLIC OPEN SPACE OR COMMON AREAS. 12

(5) A COUNTY MAY NOT REQUI RE A PERMITTED DEVEL OPMENT TO 13
INCLUDE A PERCENTAGE OF AFFORDABLE DWELLI NG UNITS GREATER THA N THE 14
PERCENTAGE OTHERWISE REQUIRED IN RESIDENTIAL ZONES IN THAT COUNTY. 15

(6) A COUNTY MAY REQUIRE: 16

(I) UP TO 20% OF THE AVAILABLE FLO OR SPACE OF A 17
PERMITTED DEVELOPMENT TO BE DEDICATED TO RETAIL USES; AND 18

(II) A PERMITTED DEVELOPM ENT TO INCLUDE ON –SITE 19
PARKING. 20

(7) A COUNTY MAY REGULATE THE SITING AND DESIGN OF A 21
PERMITTED DEVELOPMENT. 22

(8) A COUNTY MAY NOT IMPOS E A MINIMUM OFF –STREET PARKING 23
REQUIREMENT ON A PER MITTED DEVELOPMENT , EXCEPT AS NECESSARY TO 24
COMPLY WITH FEDERAL LAW. 25

7–501. 26

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

HOUSE BILL 1137 7

(b) “Affordable” means that housing costs do not exceed 30% of a household’s 1
income. 2

(c) “Affordable dwelling unit” means a dwelling unit that is affordable to 3
households earning 60% or less of the area median income. 4

(d) “Area medi an income” means the median household income for the area 5
adjusted for household size as published and annually updated by the U.S. Department of 6
Housing and Urban Development. 7

(i) (1) “Mixed–use” means any combination of a residential use with a 8
recreational, office, dining, or retail use. 9

(2) “Mixed–use” does not mean any combination of a residential use with 10
an industrial or hazardous use. 11

10–103. 12

(a) Except as provided in this section, this division does not apply to Baltimore 13
City. 14

(b) The following provisions of this division apply to Baltimore City: 15

(1) this title; 16

(2) § 1–101(m) (Definitions – “Priority funding area”); 17

(3) § 1–101(o) (Definitions – “Sensitive area”); 18

(4) § 1–201 (Visions); 19

(5) § 1–206 (Required education); 20

(6) § 1–207 (Annual report – In general); 21

(7) § 1–208 (Annual report – Measures and indicators); 22

(8) Title 1, Subtitle 3 (Consistency); 23

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties 24
– Comprehensive Plans; Implementation); 25

(10) § 4–104(c) (Limitations – Bicycle parking); 26

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 27

8 HOUSE BILL 1137

(12) § 4–104(E) (MULTIFAMILY DEVELOPME NTS AND MIXED –USE 1
DEVELOPMENTS); 2

(13) § 4–205 (Administrative adjustments); 3

[(13)] (14) § 4–208 (Exceptions – Maryland Accessibility Code); 4

[(14)] (15) § 4–210 (Permits and variances – Solar panels); 5

[(15)] (16) § 4 –211 (Change in zoning classification – Energy generating 6
systems); 7

[(16)] (17) § 4–215 (Pollinator–friendly vegetation management); 8

[(17)] (18) § 4–216 (Limitations – Family child care homes and large family 9
child care homes); 10

[(18)] (19) Title 4, Subtitle 5 (Accessory Dwelling Units); 11

[(19)] (20) § 5–102(d) (Subdivision regulations – Burial sites); 12

[(20)] (21) Title 7, Subtitle 1 (Development Mechanisms); 13

[(21)] (22) Title 7, Subtitle 2 (Transfer of Development Rights); 14

[(22)] (23) Title 7, Subtitle 3 (Development Rights and Responsibilities 15
Agreements); 16

[(23)] (24) Title 7, Subtitle 4 (Inclusionary Zoning); 17

[(24)] (25) Title 7, Subtitle 5 (Housing Expansion and Affordability); and 18

[(25)] (26) Title 11, Subtitle 2 (Civil Penalty). 19

Article – Real Property 20

2–127. 21

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23

(2) “MIXED–USE DEVELOPMENT ” HAS THE MEANING STAT ED IN § 24
4–104(E) OF THE LAND USE ARTICLE. 25

HOUSE BILL 1137 9

(3) “MULTIFAMILY DEVELOPMENT” HAS THE MEANING STAT ED IN § 1
4–104(E) OF THE LAND USE ARTICLE. 2

(4) “RESTRICTION ON USE ” INCLUDES ANY COVENAN T, 3
RESTRICTION, OR CONDITION CONTAINED IN: 4

(I) A DEED; 5

(II) A DECLARATION; 6

(III) A CONTRACT; 7

(IV) THE BYLAWS OR RULES OF A HOMEOWNERS ASSOCIATION; 8

(V) A SECURITY INSTRUMENT; OR 9

(VI) ANY OTHER INSTRUMENT AFFECTING: 10

1. THE TRANSFER OR SALE OF REAL PROPERTY; OR 11

2. ANY OTHER INTEREST IN REAL PROPERTY. 12

(B) (1) IF A PROPERTY OWNER H AS THE EXCLUSIVE RIG HT TO USE THE 13
PROPERTY AND ABIDES BY ALL APPLICABLE LA WS AND REGULATIONS , A 14
RESTRICTION ON USE R EGARDING LAND USE MA Y NOT IMPOSE OR ACT TO IMPOSE 15
AN UNREASONABLE LIMITAT ION ON THE ABILITY O F THE PROPERTY OWNER TO 16
BUILD A RESIDENTIAL DEVELOPMENT OR MIXED–USE DEVELOPMENT. 17

(2) FOR THE PURPOSE OF PA RAGRAPH (1) OF THIS SUBSECTION, AN 18
UNREASONABLE LIMITATION INCLUDES A LIMITATION THAT: 19

(I) SIGNIFICANTLY INCREAS ES THE COST OF DEVEL OPING A 20
MULTIFAMILY DEVELOPMENT OR MIXED–USE DEVELOPMENT; OR 21

(II) PROHIBITS, EITHER EXPLICITLY OR BY EFFECT OF THE 22
RESTRICTIONS, A MULTIFAMILY DEVELOPMENT OR MIXED–USE DEVELOPMENT. 23

(C) THIS SECTION DOES NOT APPLY TO A RESTRICTION ON USE ON HISTORIC 24
PROPERTY THAT IS LIS TED IN OR DETERMINED BY THE DIRECTOR OF THE 25
MARYLAND HISTORICAL TRUST TO BE ELIGIBLE FOR INCLUSION IN THE MARYLAND 26
REGISTER OF HISTORIC PROPERTIES. 27

(a) (1) In this section the following words have the meanings indicated. 28

10 HOUSE BILL 1137

(2) “Department” means the Department of Housing and Community 1
Development. 2

(3) “Residential–in–commercial–zone (RICZ) law” means statewide 3
legislation that requires local jurisdictions to allow multifamily residential or mixed–use 4
developments as a permitted use in at least some commercially zoned areas. 5

(b) The Department shall conduct a study of RICZ laws, which shall include: 6

(1) a summary and comparison of RICZ laws enacted by other states; 7

(2) an assessment of the impact of RICZ laws on: 8

(i) urban communities where there is already a mix of commercial 9
and residential uses; 10

(ii) local infrastructure; 11

(iii) local economic development goals; and 12

(iv) housing production; and 13

(3) recommendations regarding appropriate requirements and restrictions 14
applicable to multifamily residential and mixed –use development under RICZ laws, 15
including recommendations regarding: 16

(i) off–street parking requirements; 17

(ii) allowed density; 18

(iii) first–floor nonresidential use requirements; 19

(iv) building height restrictions; 20

(v) the types of commercial areas appropriate for multifamily 21
residential and mixed–use developments; and 22

(vi) special considerations for urban, suburban, and rural areas. 23

(c) On or before December 1, 2026, the Department shall report its findings and 24
recommendations to the Governor and, in accordance with § 2 –1257 of the State 25
Government Article, the General Assembly. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October June 1, 2026. It shall remain effective for a period of 1 year and, at the end of May 28
31, 2027, this Act, with no further action required by the General Assembly, shall be 29
abrogated and of no further force and effect. 30