Land Use - Residential Housing - Oversight, Regulation, and Taxation (Building Affordably in My Back Yard Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1175*

HOUSE BILL 1175
L6, Q2, Q6 6lr2313

By: Delegate Allen
Introduced and read first time: February 11, 2026
Assigned to: Economic Matters and Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Land Use – Residential Housing – Oversight, Regulation, and Taxation 2
(Building Affordably in My Back Yard Act) 3

FOR the purpose of establishing certain policies and processes to facilitate the development 4
of residential housing in the State; requiring an entity that owns residential real 5
property in the State to make a certain certification to the Department of Housing 6
and Community Development; authorizing a local jurisdiction to establish an 7
administrative proces s to review, approve, modify, or deny certain housing 8
development project applications; providing for the establishment of certain housing 9
production targets; requiring certain local jurisdictions and the Commission to adopt 10
local project design guidelines for certain qualified affordable housing projects; 11
requiring local jurisdictions and the Commission to implement certain preapproval 12
building permit application processes for standardized model home designs; 13
authorizing a county to reduce the fee or tax rate of certain housing–sensitive taxes 14
or fees imposed on a qualified affordable housing project; authorizing a county to 15
increase the fee or tax rate of certain housing –sensitive taxes or fees on classes of 16
property that are not part of a qualified afford able housing project; limiting the 17
entities from which a certain person may accept offers on residential real property 18
during a certain period of time; authorizing a county, after making a certain 19
determination, to impose a transfer tax on the transfer of certain owner–occupied 20
properties; authorizing the Mayor and City Council of Baltimore City or the 21
governing body of a county to establish, by law, certain subclasses of real property 22
and to set a special property tax rate for the subclasses of real proper ty; requiring 23
the Comptroller, in consultation with the State Department of Assessments and 24
Taxation, to evaluate and report on disincentives to homeowners to downsize or 25
transition to smaller homes; requiring the Department of Planning to conduct a 26
study and publish a comprehensive report on housing infrastructure; requiring 27
certain departments to conduct a comprehensive internal review of certain approval 28
processes that impact housing; and generally relating to the oversight, regulation, 29
development, and taxation of residential real estate. 30

2 HOUSE BILL 1175

BY adding to 1
Article – Housing and Community Development 2
Section 1–103 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, with amendments, 6
Article – Land Use 7
Section 1–401 and 10–103 8
Annotated Code of Maryland 9
(2012 Volume and 2025 Supplement) 10

BY adding to 11
Article – Land Use 12
Section 7 –106; and 12 –101 through 12 –304 to be under the new title “Title 12. 13
Housing Targets and Affordability” 14
Annotated Code of Maryland 15
(2012 Volume and 2025 Supplement) 16

BY adding to 17
Article – Real Property 18
Section 10–804 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, with amendments, 22
Article – Tax – Property 23
Section 6–202.1 and 6–302 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2025 Supplement) 26

BY adding to 27
Article – Tax – Property 28
Section 13–601 and 13–602 to be under the new subtitle “Subtitle 6. Transfer Tax on 29
Transfers of Owner–Occupied Properties” 30
Annotated Code of Maryland 31
(2019 Replacement Volume and 2025 Supplement) 32

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 33
That the Laws of Maryland read as follows: 34

Article – Housing and Community Development 35

1–103. 36

(A) IN THIS SECTION, “ENTITY” MEANS: 37

HOUSE BILL 1175 3

(1) A CORPORATION; 1

(2) A LIMITED LIABILITY COMPANY; 2

(3) A LIMITED LIABILITY PARTNERSHIP; 3

(4) A LIMITED PARTNERSHIP; 4

(5) A LIMITED LIABILITY LIMITED PARTNERSHIP; 5

(6) A PROFESSIONAL CORPORATION; 6

(7) A TRADE NAME FILER; OR 7

(8) A BUSINESS TRUST. 8

(B) (1) AT LEAST ONCE PER YEA R, EACH ENTITY THAT OWN S 9
RESIDENTIAL REAL PROPERTY IN THE STATE SHALL FILE WITH THE DEPARTMENT 10
A CERTIFICATE DISCLO SING THE CORRECT CON TACT INFORMATION FOR A 11
REPRESENTATIVE OF TH E ENTITY WHO HAS THE AUTHORITY TO COMMUNICATE 12
WITH THE PUBLIC ABOUT THE ENTITY. 13

(2) THE CERTIFICATE SHALL BE: 14

(I) IN WRITING; AND 15

(II) AFFIRMED OR ACKNOWLEDGED UNDER OATH. 16

(C) THE DEPARTMENT SHALL PROV IDE THE INFORMATION PROVIDED 17
UNDER SUBSECTION (B) OF T HIS SECTION ON REQUE ST BY A UNIT OF LOCA L 18
GOVERNMENT IN THE STATE. 19

Article – Land Use 20

1–401. 21

(a) Except as provided in this section, this division does not apply to charter 22
counties. 23

(b) The following provisions of this division apply to a charter county: 24

(1) this subtitle, including Parts II and III (Charter county – 25
Comprehensive plans), 26

4 HOUSE BILL 1175

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

(3) § 1–201 (Visions); 3

(4) § 1–206 (Required education); 4

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

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

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

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

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

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

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

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

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

(14) § 4–212 (Agritourism); 14

(15) § 4–213 (Alcohol production); 15

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

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

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

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

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

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

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

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

HOUSE BILL 1175 5

(24) except in Montgomery County or Prince George’s County, Title 7, 1
Subtitle 3 (Development Rights and Responsibilities Agreements); 2

(25) Title 7, Subtitle 4 (Inclusionary Zoning); 3

(26) Title 7, Subtitle 5 (Housing Expansion and Affordability); 4

(27) § 8–401 (Conversion of overhead facilities); 5

(28) for Baltimore County only, Title 9, Subtitle 3 (Single–County Provisions 6
– Baltimore County); 7

(29) for Frederick County only, Title 9, Subtitle 10 (Single –County 8
Provisions – Frederick County); 9

(30) for Howard County only, Title 9, Subtitle 13 (Single–County Provisions 10
– Howard County); 11

(31) for Talbot County only, Title 9, Subtitle 18 (Single –County Provisions 12
– Talbot County); [and] 13

(32) Title 11, Subtitle 2 (Civil Penalty); AND 14

(33) TITLE 12 (HOUSING TARGETS AND AFFORDABILITY). 15

(c) This section supersedes any inconsistent provision of Division II of this article. 16

7–106. 17

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

(2) “HOUSING DEVELOPMENT P ROJECT” MEANS THE NEW 20
CONSTRUCTION OR SUBS TANTIAL RENOVATION O F A RESIDENTIAL REAL ESTATE 21
PROJECT. 22

(3) “HOUSING DEVELOPMENT P ROJECT APPLICATION ” MEANS AN 23
APPLICATION FOR A BU ILDING PERMIT , CERTIFICATION, AUTHORIZATION, SITE 24
PLAN APPROVAL , SUBDIVISION APPROVAL , CONCEPTUAL PLAN , OR ANY OTHER 25
DETERMINATION BY A L OCAL JURISDICTION RE LATING TO A HOUSING 26
DEVELOPMENT PROJECT THAT HAS BEEN SUBMITTED TO A LOCAL JURISDICTION IN 27
COMPLIANCE WITH APPLICABLE REQUIREMENTS. 28

(B) AFTER MAKING A DETERM INATION THAT THERE I S A SHORTAGE OF 29
AFFORDABLE HOUSING I N A LOCAL JURISDICTI ON, THE GOVERNING BODY O F A 30
6 HOUSE BILL 1175

LOCAL JURISDICTION M AY ESTABLISH , BY LOCAL LAW , AN ADMINISTRATIVE 1
PROCESS TO REVIEW , APPROVE, MODIFY, OR DENY A HOUSING DE VELOPMENT 2
PROJECT APPLICATION. 3

(C) A LOCAL LAW THAT ESTABLISHES AN ADMINISTRATIVE PROCESS UNDER 4
SUBSECTION (B) OF THIS SECTION SHALL: 5

(1) DESIGNATE THE DEPART MENT, OFFICIAL, OR STAFF THAT WILL 6
IMPLEMENT THE ADMINISTRATIVE PROCESS; 7

(2) PROVIDE THE PROCEDURES, CRITERIA, AND CONDITIONS FOR 8
THE ADMINISTRATIVE PROCESS; 9

(3) REQUIRE REASONABLE P UBLIC NOTICE AND OPP ORTUNITY FOR 10
PUBLIC COMMENT DURING THE ADMINISTRATIVE PROCESS; AND 11

(4) ESTABLISH A PROCESS TO APPEAL A DECISION MADE THROUGH 12
THE ADMINISTRATIVE PROCESS. 13

(D) THIS SECTION MAY NOT BE CONSTRUED TO: 14

(1) LIMIT THE AUTHORITY OF A LOCAL JURISDICT ION TO REVIEW , 15
APPROVE, OR DENY ANY MATTER UNDER ITS JURISDICTION; OR 16

(2) UNLESS AUTHORIZED BY LOCAL LAW, TRANSFER THE AUTHORITY 17
OF A LOCAL JURISDICTION TO MAKE A FINAL DECISION REG ARDING A MATTER 18
DECIDED THROUGH THE ADMINISTRATIVE PROCESS. 19

10–103. 20

(a) Except as provided in this section, this division does not apply to Baltimore 21
City. 22

(b) The following provisions of this division apply to Baltimore City: 23

(1) this title; 24

(2) § 1–101(m) (Definitions – “Priority funding area”); 25

(3) § 1–101(o) (Definitions – “Sensitive area”); 26

(4) § 1–201 (Visions); 27

(5) § 1–206 (Required education); 28

HOUSE BILL 1175 7

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

(7) § 1–208 (Annual report – Measures and indicators); 2

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

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties – 4
Comprehensive Plans; Implementation); 5

(10) § 4–104(c) (Limitations – Bicycle parking); 6

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 7

(12) § 4–205 (Administrative adjustments); 8

(13) § 4–208 (Exceptions – Maryland Accessibility Code); 9

(14) § 4–210 (Permits and variances – Solar panels); 10

(15) § 4–211 (Change in zoning classification – Energy generating systems); 11

(16) § 4–215 (Pollinator–friendly vegetation management); 12

(17) § 4–216 (Limitations – Family child care homes and large family child 13
care homes); 14

(18) Title 4, Subtitle 5 (Accessory Dwelling Units); 15

(19) § 5–102(d) (Subdivision regulations – Burial sites); 16

(20) Title 7, Subtitle 1 (Development Mechanisms); 17

(21) Title 7, Subtitle 2 (Transfer of Development Rights); 18

(22) Title 7, Subtitle 3 (Development Rights and Responsibi lities 19
Agreements); 20

(23) Title 7, Subtitle 4 (Inclusionary Zoning); 21

(24) Title 7, Subtitle 5 (Housing Expansion and Affordability); [and] 22

(25) Title 11, Subtitle 2 (Civil Penalty); AND 23

(26) TITLE 12, SUBTITLE 3 (QUALIFIED AFFORDABLE HOUSING 24
PROJECTS). 25

8 HOUSE BILL 1175

TITLE 12. HOUSING TARGETS AND AFFORDABILITY. 1

SUBTITLE 1. DEFINITIONS. 2

12–101. 3

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 4
INDICATED. 5

(B) “COMMISSION” MEANS THE MARYLAND–NATIONAL CAPITAL PARK AND 6
PLANNING COMMISSION. 7

(C) “RESIDENTIAL” MEANS ANY USE APPROVED BY A LOCAL JURISDICTION 8
OR THE COMMISSION THAT IS FOR EXISTING OR PROPOSED DWELLING UNITS. 9

SUBTITLE 2. HOUSING PRODUCTION TARGETS. 10

12–201. 11

(A) ON OR BEFORE JANUARY 1, 2031, AND EACH JANUARY 1 FOLLOWING A 12
UNITED STATES DECENNIAL CENSUS THROUGH JANUARY 1, 2051, THE GOVERNOR 13
OR THE GOVERNOR’S DESIGNEE SHALL ESTABLISH HOUSING PRODUCTION TARGETS 14
FOR: 15

(1) THE STATE; 16

(2) EACH COUNTY; AND 17

(3) EACH MUNICIPAL CORPO RATION THAT EXERCISE S ZONING OR 18
PLANNING AUTHORITY. 19

(B) IN ESTABLISHING THE H OUSING PRODUCTION TA RGETS UNDER 20
SUBSECTION (A) OF THIS SECTION, THE GOVERNOR SHALL: 21

(1) ANALYZE DATA AND FORECASTS RELATED TO: 22

(I) EMPLOYMENT DEMAND; 23

(II) HOUSING DEMAND; 24

(III) POPULATION GROWTH; 25

(IV) INFRASTRUCTURE CAPACITY AND CONSTRAINTS; AND 26
HOUSE BILL 1175 9

(V) ANY OTHER RELATED INFORMATION; 1

(2) CONSULT WITH EACH LO CAL JURISDICTION THA T MAY HAVE 2
HOUSING PRODUCTION T ARGETS ESTABLISHED U NDER SUBSECTION (A) OF THIS 3
SECTION; AND 4

(3) CONSULT WITH THE COMMISSION ABOUT HOUSING PRODUCTION 5
TARGETS THAT MAY BE ESTABLISHED WITHIN THE COMMISSION’S JURISDICTION. 6

(C) THE GOVERNOR SHALL: 7

(1) REEVALUATE AND REVIS E THE ESTABLISHED HO USING 8
PRODUCTION TARGETS; AND 9

(2) IN CONSULTATION WITH THE MARYLAND ASSOCIATION OF 10
COUNTIES AND THE MARYLAND MUNICIPAL LEAGUE, DEVELOP METRICS TO 11
MEASURE THE PROGRESS TOWARD THE HOUSING PRODUCTION TARGETS. 12

(D) (1) THE GOVERNOR SHALL PUBLIS H THE CURRENT HOUSIN G 13
PRODUCTION TARGETS E STABLISHED UNDER THI S SECTION ON THE GOVERNOR’S 14
WEBSITE AND NOTIFY E ACH APPLICABLE LOCAL JURISDICTION AND THE 15
COMMISSION OF THE TARGETS IN A TIMELY MANNER. 16

(2) THE PUBLICATION UNDER THIS SUBSECTION SHAL L PROVIDE A 17
SUPPORTING BASIS FOR THE HOUSING PRODUCTI ON TARGETS THAT ARE 18
ESTABLISHED. 19

(3) WITHIN 1 MONTH AFTER THE PUBL ICATION OF HOUSING 20
PRODUCTION TARGETS, THE GOVERNOR SHALL SUBMIT , IN ACCORDANCE WITH § 21
2–1257 OF THE STATE GOVERNMENT ARTICLE, A REPORT ON THE INFO RMATION 22
PUBLISHED REGARDING HOUSING PRODUCTION T ARGETS TO THE GENERAL 23
ASSEMBLY. 24

(E) (1) ON OR BEFORE JANUARY 1 FOLLOWING PUBLICATIO N OF THE 25
HOUSING PRODUCTION T ARGETS AND ON OR BEF ORE JANUARY 1 EACH YEAR 26
THEREAFTER, THE GOVERNOR SHALL PUBLISH A REPORT THAT: 27

(I) IDENTIFIES THE HOUSING PRODUCTION TARGETS FOR THE 28
STATE AND EACH LOCAL JURISDICTION; 29

(II) ASSESSES THE CUMULATIVE PROGRESS AND THE PROGRESS 30
FOR THE PRIOR YEAR O F THE STATE AND EACH LOCAL JURISDICTION TOWARD 31
10 HOUSE BILL 1175

MEETING APPLICABLE H OUSING PRODUCTION TA RGETS USING THE METR ICS 1
DEVELOPED UNDER SUBSECTION (C)(2) OF THIS SECTION; 2

(III) FOR ANY HOUSING PROD UCTION TARGET THAT T HE 3
GOVERNOR DETERMINES I S NOT PRACTICABLY ME ASURED BY THE METRIC S 4
DEVELOPED UNDER SUBS ECTION (C)(2) OF THIS SECTION , INCLUDES AN 5
EXPLANATION THAT THE HOUSING PRODUCTION TARGET MAY NOT BE PRACTICABLY 6
MEASURED AND A DESCRIPTION OF THE STATUS TOWARD ACHIEVING THE HOUSING 7
PRODUCTION TARGET; AND 8

(IV) PROVIDES A SUPPORTIN G BASIS FOR ANY ALTE RATION TO 9
AN ESTABLISHED HOUSING PRODUCTION TARGET. 10

(2) (I) THE GOVERNOR SHALL PUBLIS H THE REPORT ON THE 11
GOVERNOR’S WEBSITE AND NOTIFY E ACH APPLICABLE LOCAL JURISDICTION AND 12
THE COMMISSION OF THE REPORT IN A TIMELY MANNER. 13

(II) WITHIN 1 MONTH AFTER THE PUBLICATION OF THE REPORT 14
REQUIRED IN PARAGRAPH (1) OF THIS SUBSECTION, THE GOVERNOR SHALL SUBMIT 15
THE REPORT , IN AC CORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 16
ARTICLE, TO THE GENERAL ASSEMBLY. 17

12–202. 18

(A) (1) IF THE COMMISSION OR A LOCAL JURISDICTION DISAGREES WITH 19
THE HOUSING PRODUCTI ON TARGET ESTABLISHE D UNDER § 12–201 OF THIS 20
SUBTITLE, THE LOCAL JURISDICTI ON M AY PROPOSE AN ALTERN ATIVE HOUSING 21
PRODUCTION TARGET IN ACCORDANCE WITH THIS SECTION. 22

(2) WITHIN 180 DAYS AFTER THE GOVERNOR PROVIDES THE NOTICE 23
REQUIRED UNDER § 12–201(D)(1) OF THIS SUBTITLE, THE COMMISSION OR A LOCAL 24
JURISDICTION SHALL N OTIFY THE GOVERNOR OF THE LOCAL JUR ISDICTION’S 25
PROPOSED ALTERNATIVE HOUSING PRODUCTION TARGET BY SUBMITTING WRITTEN 26
JUSTIFICATION THAT INCLUDES: 27

(I) LOCAL DATA ON HOUSING NEED AND DEMAND; 28

(II) PLANNING AND ZONING CAPACITY; 29

(III) INFRASTRUCTURE AVAILABILITY OR CONSTRAINTS; 30

(IV) ENVIRONMENTAL OR TOPOGRAPHIC LIMITATIONS; AND 31

HOUSE BILL 1175 11

(V) ANY OTHER RELEVANT LOCAL CONSIDERATIONS. 1

(B) (1) ON RECEIPT OF A PROPO SED ALTERNATIVE HOUS ING 2
PRODUCTION TARGET, THE GOVERNOR SHALL: 3

(I) REVIEW THE SUBMISSIO N FOR CONSISTENC Y WITH 4
STATEWIDE GOALS AND METHODOLOGIES USED T O DETERMINE THE LOCA L 5
JURISDICTION’S HOUSING PRODUCTION TARGET; AND 6

(II) CONSIDER THE WRITTEN JUSTIFICATION PROVIDED BY THE 7
LOCAL JURISDICTION. 8

(C) (1) WITHIN 30 DAYS AFTER RECEIPT O F THE PROPOSED 9
ALTERNATIVE HOUSING PRODUCTION TARGET , THE GOVERNOR SHALL ISSUE A 10
WRITTEN DECISION ADO PTING, MODIFYING, OR REJECTING THE PRO POSED 11
ALTERNATIVE HOUSING PRODUCTION TARGET. 12

(2) IF THE GOVERNOR DOES NOT ADO PT, REJECT, OR MODIFY THE 13
ALTERNATIVE HOUSING PRODUCTION TARGET WITHIN 30 DAYS AFTER RECEIPT OF 14
THE PROPOSED ALTERNA TIVE HOUSING PRODUCT ION TARGET , THE PROPOSED 15
ALTERNATIVE SHALL BE DEEMED APPROVED. 16

(3) IF THE GOVERNOR MODIFIES OR REJECTS THE PROPOSED 17
ALTERNATIVE HOUSING PRODUCTION TARGET , THE LOCAL JURI SDICTION MAY 18
REQUEST A CONFERENCE WITH THE GOVERNOR’S OFFICE TO REVIEW A ND 19
CONSIDER ALTERNATIVE HOUSING PRODUCTION TARGETS. 20

(4) IF THE GOVERNOR AND THE LOCAL JURISDICTION DO NOT AGREE 21
ON A HOUSING PRODUCTION TARGET, THE GOVERNOR SHALL: 22

(I) DETERMINE THE HOUSING PRODUCTI ON TARGET FOR THE 23
LOCAL JURISDICTION; AND 24

(II) INCLUDE THE LOCAL JU RISDICTION’S PROPOSED 25
ALTERNATIVE HOUSING PRODUCTION TARGET AN D THE JUSTIFICATION FOR THE 26
TARGET AS AN APPENDI X TO THE ANNUAL REPO RT REQUIRED UNDER § 12–201(D) 27
OF THIS SUBTITLE. 28

SUBTITLE 3. QUALIFIED AFFORDABLE HOUSING PROJECTS. 29

12–301. 30

12 HOUSE BILL 1175

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2

(B) “AFFORDABLE DWELLING U NIT” MEANS A DWELLING UNI T THAT IS 3
AFFORDABLE TO HOUSEH OLDS EARNING 60% OR LESS OF THE AREA MEDIAN 4
INCOME. 5

(C) “AREA MEDIAN INCOME” MEANS THE MEDIAN HOUSEHOLD INCOME FOR 6
THE AREA ADJUSTED FO R HOUSEHOLD SIZE AS PUBLISHED AND ANNUAL LY 7
UPDATED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. 8

(D) “HOUSING–SENSITIVE FEE ” MEANS A DEVELOPMENT IMPACT FEE 9
AUTHORIZED UNDER TITLE 20, SUBTITLE 7 OF THE LOCAL GOVERNMENT ARTICLE 10
OR ANY OTHER LAW. 11

(E) (1) “HOUSING–SENSITIVE TAX” INCLUDES: 12

(I) A DEVELOPMENT EXCISE TAX AUTHORIZED UNDER TITLE 13
20, SUBTITLE 8 OF THE LOCAL GOVERNMENT ARTICLE OR ANY OTHER PUBLIC 14
GENERAL OR PUBLIC LOCAL LAW; 15

(II) THE RECORDATION TAX IMPOSED UNDER TITLE 12 OF THE 16
TAX – PROPERTY ARTICLE; AND 17

(III) THE COUNTY TRANSFER TAX AUTHORIZED UNDER TITLE 13, 18
SUBTITLE 4 OF THE TAX – PROPERTY ARTICLE. 19

(2) “HOUSING–SENSITIVE TAX ” DOES NOT INCLUDE A T AX 20
AUTHORIZED OR IMPOSED BY: 21

(I) A COUNTY CHARTER; OR 22

(II) A PUBLIC LOCAL LAW THAT AUTHORIZES GENERAL TAXING 23
AUTHORITY. 24

(F) “QUALIFIED AFFORDABLE HOUSING PROJECT” MEANS A RESIDENTIAL 25
PROJECT THAT: 26

(1) CONSISTS OF NEW CONS TRUCTION OR SUBSTANT IAL 27
RENOVATION, AS ANNUALLY ESTABLISHED AND IDENTIFIED B Y THE DEPARTMENT 28
OF HOUSING AND COMMUNITY DEVELOPMENT IN THE MULTIFAMILY RENTAL 29
FINANCING PROGRAM GUIDE; 30

HOUSE BILL 1175 13

(2) CONTAINS AT LEAST 25% OF UNITS THAT ARE AFFORDABLE; AND 1

(3) IS DEED –RESTRICTED TO INCLUD E 25% OF UNITS THAT ARE 2
AFFORDABLE DWELLING UNITS FOR A PERIOD OF AT LEAST 40 YEARS. 3

12–302. 4

THIS SUBTITLE APPLIES ONLY TO: 5

(1) A COUNTY WITH A POPULATION OF AT LEAST 150,000 RESIDENTS, 6
NOT INCLUDING ANY RESIDENTS OF A MUNICIPAL CORPORATION LOCATED WITHIN 7
THE COUNTY; AND 8

(2) A MUNICIPAL CORPORATION. 9

12–303. 10

(A) (1) ON OR BEFORE JULY 1, 2027, EACH LOCAL JURISDICT ION AND 11
THE COMMISSION SHALL ADOP T LOCAL PROJECT DESI GN GUIDELINES FOR 12
QUALIFIED AFFORDABLE HOUSING PROJECTS THA T INCLUDE REQUIREMEN TS 13
CONCERNING: 14

(I) PARKING; 15

(II) MAXIMUM HEIGHT; 16

(III) SETBACK; 17

(IV) LOT AREA; 18

(V) OPEN SPACE; 19

(VI) INTERNAL VEHICLE AND PEDESTRIAN MOVEMENT; 20

(VII) LANDSCAPING; 21

(VIII) LIGHTING; 22

(IX) ARCHITECTURE; AND 23

(X) SIGNAGE. 24

14 HOUSE BILL 1175

(2) THIS SUBSECTION MAY N OT BE CONSTRUED TO P ROHIBIT A 1
LOCAL JURISDICTION O R THE COMMISSION FROM REQUI RING A QUALIFIED 2
AFFORDABLE HOUSING PROJECT APPLICATION TO COMPLY WITH STANDARDS THAT 3
ARE MORE DETAILED OR STRINGENT THAN LOCAL PROJECT DESIGN GUIDELINES. 4

(B) (1) ON OR BEFORE JULY 1, 2027, EACH LOCAL JURISDICT ION AND 5
THE COMMISSION SHALL IMPL EMENT A PREAPPROVAL BUILDING PERMIT 6
APPLICATION PROCESS FOR STANDARDIZED MODEL HOME DESIGNS. 7

(2) THE PROCESS REQUIRED UNDER THIS SUBSECTION SHALL: 8

(I) ALLOW BUILDERS AND D EVELOPERS TO SUBMIT MODEL 9
HOME DESIGNS FOR REV IEW AND APPROVAL BEF ORE THE SUBMISSION O F 10
INDIVIDUAL BUILDING PERMIT APPLICATIONS; 11

(II) ENSURE THAT APPROVED MODEL PLANS ARE RETAINED BY 12
THE LOCAL JURISDICTION OR THE COMMISSION FOR REFERE NCE AND REUSE 13
THROUGHOUT THE DURATION OF ANY DEVELOPMENT PROJECT; 14

(III) ELIMINATE REDUNDANT PLAN REVIEWS FOR EAC H 15
SUBSEQUENT PERMIT AP PLICATION USING AN A PPROVED MODEL DESIGN , 16
PROVIDED THAT NO SUBSTANTIVE CHANGES ARE MADE TO THE APPLICATION; 17

(IV) REDUCE PERMIT PROCES SING TIMES FOR PRODU CTION 18
HOMES IN APPROVED SUBDIVISIONS; AND 19

(V) MAINTAIN COMPLIANCE WITH APPLICABLE BUIL DING 20
CODES, ZONING REGULATIONS, AND DESIGN STANDARDS. 21

12–304. 22

(A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW THAT LIMITS A 23
HOUSING–SENSITIVE TAX OR HOUSING–SENSITIVE FEE, ON A FINDING BY A COUNTY 24
THAT THE COUNTY HAS A SHORTFALL IN TOTAL HOUSING UNITS OR A C LASS OF 25
AFFORDABLE HOUSING UNITS, THE COUNTY MAY ESTABLISH, BY LOCAL LAW: 26

(1) A REDUCED HOUSING –SENSITIVE TAX RATE O R 27
HOUSING–SENSITIVE FEE FOR A QUALIFIED AFFORDABLE HOUSING PROJECT; OR 28

(2) AN EXEMPTION FOR A Q UALIFIED AFFORDABLE HOUSING 29
PROJECT. 30

HOUSE BILL 1175 15

(B) A LOCAL LAW THAT ESTAB LISHES A REDUCED RAT E OR EXEMPTION 1
UNDER SUBSECTION (A) OF THIS SECTION SHAL L BE OF LIMITED DURA TION OR 2
SUBJECT TO TERMINATI ON BASED ON QUANTIFI ABLE FACTORS THAT DE TERMINE 3
THE EXISTENCE OF A S HORTFALL IN TOTAL HO USING UNITS OR A CLA SS OF 4
AFFORDABLE HOUSING UNITS IN THE COUNTY. 5

(C) NOTWITHSTANDING ANY O THER PROVISION OF LAW THA T LIMITS A 6
HOUSING–SENSITIVE TAX OR HOU SING–SENSITIVE FEE, A COUNTY THAT ADOPTS A 7
REDUCED HOUSING–SENSITIVE TAX RATE UNDER SUBSECTION (A) OF THIS SECTION 8
MAY ESTABLISH HIGHER HOUSING–SENSITIVE TAX RATES OR HOUSING–SENSITIVE 9
FEES FOR CL ASSES OF REAL PROPER TY THAT ARE NOT PART OF A QUALIFIED 10
AFFORDABLE HOUSING PROJECT. 11

Article – Real Property 12

10–804. 13

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15

(2) “COMMUNITY DEVELOPMENT ORGANIZATION” HAS THE MEANING 16
STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 17

(3) “REAL ESTATE ENTERPRISE” MEANS A BUSINESS THAT: 18

(I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS; 19

(II) OWNS REAL PROPERTY, INCLUDING IN A TENAN CY BY THE 20
ENTIRETY; AND 21

(III) IS INVOLVED IN BUYING, SELLING, LEASING, OR MANAGING 22
REAL PROPERTY. 23

(B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED, 24
SINGLE–FAMILY RESIDENTIAL REAL PROPERTY. 25

(2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 26
FORECLOSE A MORTGAGE, A DEED OF TRUST, OR ANY OTHER LIEN. 27

(C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 28
SUBJECT TO THIS SECTION FOR SALE TO A THIRD PARTY, THE PERSON MAY ACCEPT 29
AN OFFER TO PURCHASE THE PROPERTY MADE ONLY BY: 30

16 HOUSE BILL 1175

(1) AN INDIVIDUAL; 1

(2) A COMMUNITY DEVELOPMENT ORGANIZATION; 2

(3) A NONPROFIT ORGANIZATION; OR 3

(4) A REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS 4
THAN 3% OF ALL RESIDENTIAL REAL PROPERTY LOCATED WITHIN THE COUNTY IN 5
WHICH THE PROPERTY IS LOCATED. 6

Article – Tax – Property 7

SUBTITLE 6. TRANSFER TAX ON TRANSFERS OF OWNER–OCCUPIED PROPERTIES. 8

13–601. 9

IN THIS SUBTITLE, “OWNER–OCCUPIED PROPERTY”: 10

(1) MEANS REAL PROPERTY THAT IS USED AS THE PRIMARY 11
RESIDENCE BY THE OWNER OF THE REAL PROPERTY; 12

(2) INCLUDES A PROPERTY THAT IS ELIGIBLE FOR THE HOMESTEAD 13
PROPERTY TAX CREDIT AUTHORIZED UNDER § 9–105 OF THE TAX – PROPERTY 14
ARTICLE; AND 15

(3) DOES NOT INCLUDE REA L PROPERTY THAT IS R ENTED OR HELD 16
FOR INVESTMENT PURPOSES. 17

13–602. 18

(A) (1) ON A FINDING BY A COU NTY THAT THERE IS A SHORTFALL IN 19
TOTAL HOUSING UNITS OR A CLASS OF AFFORDABLE HOUSING UNITS, THE COUNTY 20
MAY ESTABLISH, BY LOCAL LAW , A TAX ON THE TRANSFE R OF OWNER –OCCUPIED 21
PROPERTY IF FOLLOWIN G THE TRANSFER THE P ROPERTY IS NO LONGER 22
OWNER–OCCUPIED. 23

(2) THE TAX AUTHORIZED UNDER PARAGRAPH (1) OF THIS 24
SUBSECTION IS IN ADD ITION TO THE AUTHORI TY TO IMPOSE A TRANS FER TAX 25
AUTHORIZED UNDER THIS TITLE. 26

(3) THE RATE OF THE TAX A UTHORIZED UNDER PARA GRAPH (1) OF 27
THIS SUBSECTION MAY NOT EXCEED 5% OF THE CONSIDERATION PAYABLE FOR THE 28
TRANSFER. 29

HOUSE BILL 1175 17

(B) IF A TRANSFER OF A PR OPERTY RESULTS IN A PORTION OF THE 1
PROPERTY BEING OWNER–OCCUPIED AND A PORTION OF THE PROPERTY NOT BEING 2
OWNER–OCCUPIED, THE TAX APPLIES TO T HE CONSIDERATION PAI D FOR THE 3
PORTION OF THE PROPERTY THAT WILL NOT BE OWNER–OCCUPIED PROPERTY. 4

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
as follows: 6

Article – Tax – Property 7

6–202.1. 8

(A) The Mayor and City Council of Baltimore City or the governing body of a 9
county may establish, by law, a su bclass of real property consisting of vacant lots or 10
improved property cited as vacant and unfit for habitation or other authorized use on a 11
housing or building violation notice. 12

(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 13
GOVERNING BODY OF A COUNTY MAY ESTA BLISH, BY LAW , A SUBCLASS OF REAL 14
PROPERTY LOCATED IN A PRIORITY FUNDING A REA, AS DESIGNATED IN TITLE 5, 15
SUBTITLE 7B OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THAT 16
CONSISTS OF UNDEVELO PED, UNDERUTILIZED, OR VACANT LAND THAT IS ZONED 17
FOR RESIDENTIAL OR MIXED–USE DEVELOPMENT. 18

(2) A LAW AUTHORIZED UNDER PARAGRAPH (1) OF THIS SUBSECTION 19
THAT ESTABLISHES A SUBCLASS OF REAL PROPERTY SHALL: 20

(I) DEFINE UNDEVELOPED , UNDERUTILIZED, AND VACANT 21
LAND; AND 22

(II) BE DESIGNED TO DISCO URAGE SPECULATIVE 23
LANDHOLDING AND PROM OTE TIMELY DEVELOPME NT CONSISTENT WITH T HE 24
LOCAL MASTER PLAN AND INFRASTRUCTURE SUPPORT. 25

(C) (1) IN THIS SUBSECTION , “PRINCIPAL RESIDENCE ” MEANS A 26
PROPERTY THAT AN IND IVIDUAL PRIMARILY RE SIDES IN AND IS THE ADDRESS 27
LISTED ON THE INDIVIDUAL’S VOTING CARD, DRIVER’S LICENSE, AND INCOME TAX 28
RETURN. 29

(2) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 30
GOVERNING BODY OF A COUNTY MAY ESTABLISH , BY LAW , A SUBCLASS OF REAL 31
PROPERTY THAT IS: 32

18 HOUSE BILL 1175

(I) RESIDENTIAL REAL PRO PERTY THAT IS NOT THE OWNER ’S 1
PRINCIPAL RESIDENCE; AND 2

(II) OWNED BY AN INDIVIDUAL OR ENTITY THAT OWNS AT LEAST 3
20 RESIDENTIAL REAL PROPERTIES WITHIN BALTIMORE CITY OR THE COUNTY. 4

(3) A LOCAL LAW THAT ESTAB LISHES A SUBCLASS OF REAL 5
PROPERTY UNDER PARAGRAPH (2) OF THIS SUBSECTION M AY NOT INCLUDE REAL 6
PROPERTY THAT IS: 7

(I) ACTIVELY RENTED AT A FFORDABLE HOUSING RA TES AS 8
DEFINED BY THE LOCAL LAW; OR 9

(II) SUBJECT TO HOUSING A FFORDABILITY COVENAN TS OR 10
SUBSIDIES. 11

6–302. 12

(a) Except as otherwise provided in this section and after complying with § 6–305 13
of this subtitle, in each year after the date of finality and before the following June 20, the 14
Mayor and City Council of Baltimore City or the governing body of each county annually 15
shall set the tax rate for the next taxable year on all assessments of property subject to that 16
county’s property tax. 17

(b) (1) Except as provided in [subsection (c)] SUBSECTIONS (C), (E), AND (F) 18
of this section and §§ 6–305 and 6–306 of this subtitle: 19

(i) there shall be a single county property tax rate for all real 20
property subject to county property tax except for operating real property described in § 21
8–109(c) of this article; and 22

(ii) the county tax rate applicable to personal property and the 23
operating real proper ty described in § 8 –109(c) of this article shall be no more than 2.5 24
times the rate for real property. 25

(2) Paragraph (1) of this subsection does not affect a special rate prevailing 26
in a taxing district or part of a county. 27

(c) (1) The Mayor and City Council of Baltimore City or the governing body of 28
a county may set a special rate for a vacant lot or improved property cited as vacant and 29
unfit for habitation or other authorized use on a housing or building violation notice. 30

(2) On or before Decembe r 1 each year, the Mayor and City Council of 31
Baltimore City or the governing body of a county that enacts a special rate under paragraph 32
(1) of this subsection shall report to the Department of Housing and Community 33
HOUSE BILL 1175 19

Development and, in accordance with § 2 –1257 of the State Government Article, to the 1
General Assembly on: 2

(i) the special rate set under paragraph (1) of this subsection; 3

(ii) the number of properties to which the special rate applies; 4

(iii) the revenue change resulting from the special rate; 5

(iv) the use of the revenue from the special rate; and 6

(v) whether properties subject to the special rate are viable for 7
adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, 8
and plans to convert viable properties. 9

(d) The Mayor and City Council of Baltimore City may, by law, impose on real 10
property that would otherwise be exempt from property tax under § 7 –202 or § 7 –204 of 11
this article the general property tax rate set under subsection (b)(1)(i) of this section and 12
the special rate authorized under subsection (c)(1) of this section if the real property is: 13

(1) a vacant lot; or 14

(2) improved property cited as vacant and unfit for habitation or other 15
authorized use on a housing or building violation notice. 16

(E) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 17
GOVERNING BODY OF A COUNTY MAY SET A SPE CIAL RATE FOR REAL P ROPERTY 18
LOCATED IN A PRIORITY FUNDING AREA, AS DESIGNATED IN TITLE 5, SUBTITLE 7B 19
OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THAT CONSISTS OF 20
UNDEVELOPED, UNDERUTILIZED, OR VACANT LAND THAT IS ZONED FOR 21
RESIDENTIAL OR MIXED–USE DEVELOPMENT. 22

(2) THE REVENUE FROM THE SPECIAL RATE AUTHORI ZED UNDER 23
PARAGRAPH (1) OF THIS SUBSECTION M AY BE USED ONLY FOR AFFORDABLE 24
HOUSING PROGRAMS, SCHOOL CONSTRUCTION, AND PURPOSES DIRECTLY RELATED 25
TO FACILITATING HOUSING CONSTRUCTION. 26

(F) (1) IN THIS SUBSECTION , “PRINCIPAL RESIDENCE ” MEANS A 27
PROPERTY THAT AN IND IVIDUAL PRIMARILY RE SIDES IN AND IS THE ADDRESS 28
LISTED ON THE INDIVI DUAL’S VOTING CARD, DRIVER’S LICENSE, AND INCOME TAX 29
RETURN. 30

(2) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR T HE 31
GOVERNING BODY OF A COUNTY MAY SET A SPE CIAL RATE FOR REAL P ROPERTY 32
THAT IS: 33
20 HOUSE BILL 1175

(I) RESIDENTIAL REAL PRO PERTY THAT IS NOT TH E OWNER’S 1
PRINCIPAL RESIDENCE; AND 2

(II) OWNED BY AN INDIVIDUAL OR ENTITY THAT OWNS AT LEAST 3
20 RESIDENTIAL REAL PROPERTIES WITHIN BALTIMORE CITY OR THE COUNTY. 4

(3) THE REVENUE FROM THE SPECIAL RATE AUTHORI ZED UNDER 5
PARAGRAPH (2) OF THIS SUBSECTION M AY BE USED ONLY FOR AFFORDABLE 6
HOUSING PROGRAMS, SCHOOL CONSTRUCTION, AND PURPOSES DIRECTLY RELATED 7
TO FACILITATING HOUSING CONSTRUCTION. 8

SECTION 3. AND BE IT FURTHER ENACTED, That: 9

(a) On or before December 31, 2027, the Comptroller, in consultation with the 10
State Department of Assessments and Taxation, shall evaluate and report to the Governor 11
and, in accordance with § 2 –1257 of the State Government Article, the General Assembly 12
on changes to State–level tax policies to reduce the disincentives to homeowners, including 13
older adults and families, to downsize or transition to smaller and more affordable homes. 14

(b) The report required under subsection (a) of this section shall: 15

(1) include recommendations regarding capital gains taxation and tax 16
deferrals or exemptions; and 17

(2) consider the impact of property tax reassessment practices and housing 18
turnover rates. 19

SECTION 4. AND BE IT FURTHER ENACTED, That: 20

(a) (1) The Department of Planning shall conduct a study and publish a 21
comprehensive report on housing infrastructure to assess how existing and planned 22
infrastructure systems support or constrain housing development across the State. 23

(2) The comprehensive report on housing infrastructure shall be organized 24
into the following four primary parts: 25

(i) water and sewer infrastructure; 26

(ii) school facility capacity; 27

(iii) transportation infrastructure; and 28

(iv) policy recommendations. 29

(b) (1) The water and sewer infrastructure part of the report shall: 30
HOUSE BILL 1175 21

(i) evaluate the interrelationship between current and projected 1
housing development patterns and the availability, condition, and capacity of water a nd 2
wastewater infrastructure; and 3

(ii) include an analysis of: 4

1. existing public water and sewer service areas, including 5
coverage gaps; 6

2. capacity constraints of wastewater treatment plants; 7

3. the availability and sustainability of private wells; 8

4. the use and environmental impact of septic systems; and 9

5. the age, condition, and maintenance needs of water and 10
sewer infrastructure. 11

(2) The Department of Planning shall consult and coordinate with the 12
following entities in developing the water and sewer infrastructure part of the report: 13

(i) the Department of the Environment; 14

(ii) the Maryland Department of Health; 15

(iii) the Department of Housing and Community Development; 16

(iv) the Maryland Municipal League; 17

(v) the Maryland Association of Counties; 18

(vi) the Maryland Building Industry Association; 19

(vii) the Maryland Association of Housing and Community 20
Development Agencies; 21

(viii) the Maryland Association of Municipal Wastewater Agencies; 22
and 23

(ix) the Washington Suburban Sanitary Commission. 24

(c) (1) The school facility capacity part of the report shall: 25

(i) assess the impact of housing development on public school 26
capacity across jurisdictions, including the ability of local educatio n systems to 27
accommodate projected student enrollment growth associated with new housing; and 28
22 HOUSE BILL 1175

(ii) include an analysis of: 1

1. local and regional school facility utilization and capacity; 2

2. enrollment projections linked to housing development 3
trends; 4

3. State and local school construction funding processes; and 5

4. the adequacy of current school capacity assessment 6
methods. 7

(2) The Department of Planning shall consult and coordinate with the 8
following entities in developing the school facility capacity part of the report: 9

(i) the Interagency Commission on School Construction; 10

(ii) the State Department of Education; 11

(iii) the Public School Superintendents’ Association of Maryland; 12

(iv) the Maryland Association of Boards of Education; and 13

(v) the Maryland Association of Counties. 14

(d) (1) The transportation infrastructure part of the report shall: 15

(i) analyze how access to safe, reliable, and efficient transportation 16
infrastructure influences housing development; and 17

(ii) include an analysis of: 18

1. the capacity and condition of existing road networks and 19
transit services; 20

2. the accessibility of new and proposed housing to major 21
employment centers; 22

3. transportation infrastructure needs re lated to infill and 23
greenfield development; and 24

4. opportunities for multimodal connectivity, including 25
walking, biking, and public transit. 26

(2) The Department of Planning shall consult and coordinate with the 27
following entities in developing the transportation infrastructure part of the report: 28
HOUSE BILL 1175 23

(i) the Department of Transportation; 1

(ii) the Maryland Association of Counties; 2

(iii) the Maryland Municipal League; and 3

(iv) the Maryland Building Industry Association. 4

(e) (1) The policy recommendations part of the report shall outline actionable 5
recommendations, based on findings in parts one, two, and three of the comprehensive 6
report on housing infrastructure, for State and local governments to support housing 7
development. 8

(2) The recommendations required under paragraph (1) of this subsection 9
shall: 10

(i) identify legislative, regulatory, or budgetary changes to better 11
integrate housing and infrastructure planning; 12

(ii) suggest improvements to coordination mechanisms among State 13
agencies and local governments; 14

(iii) propose incentives and funding strategies to encourage 15
infrastructure investment in priority housing areas; and 16

(iv) highlight best practices for State agencies and local 17
governments. 18

(f) On or before Dece mber 31, 2027, the Department of Planning shall publish 19
the comprehensive report on housing infrastructure on its website and provide copies to the 20
Governor and, in accordance with § 2 –1257 of the State Government Article, the General 21
Assembly. 22

SECTION 5. AND BE IT FURTHER ENACTED, That: 23

(a) In this section, “qualified affordable housing project” has the meaning stated 24
in § 12–301 of the Land Use Article as enacted by Section 1 of this Act. 25

(b) The following State departments shall conduct a comprehen sive internal 26
review of any existing process, procedure, regulation, policy, or approval requirement under 27
the department’s jurisdiction that impacts the permitting, review, funding, or development 28
of housing in the State: 29

(1) the Department of Agriculture; 30

(2) the Department of the Environment; 31
24 HOUSE BILL 1175

(3) the Maryland Department of Health; 1

(4) the Department of Housing and Community Development; 2

(5) the Maryland Department of Labor; 3

(6) the Department of Natural Resources; 4

(7) the Department of Planning; and 5

(8) the Department of Transportation. 6

(c) (1) A comprehensive internal review for each department required under 7
subsection (b) of this section shall: 8

(i) evaluate the department’s review periods and identify instances 9
where the d epartment consistently utilizes the maximum statutory or regulatory review 10
period and recommend bifurcated review periods to expedite approvals for simple or 11
low–risk housing projects; 12

(ii) evaluate the interpretation of laws, regulations, or other 13
standards that unnecessarily restrict housing projects and identify opportunities to provide 14
greater flexibility or alternative compliance mechanisms for existing interpretations of 15
laws, regulations, or other standards that unnecessarily restrict housing projects; 16

(iii) identify and evaluate overlapping or duplicative review 17
processes including the necessity of a review process where public infrastructure currently 18
services the housing project; 19

(iv) evaluate opportunities for permit coordination and joint 20
applications to improve coordination across departments and local governments including 21
coordination between the Department of the Environment, the Maryland Department of 22
Health, the Department of Natural Resources, and local governments for the revi ew of 23
permits related to wetlands and stormwater management; 24

(v) identify and evaluate tailored, streamlined, or alternative 25
requirements for qualified affordable housing projects particularly in priority funding areas 26
and for projects that involve infill, redevelopment, or affordable housing; 27

(vi) identify opportunities to delegate project review responsibilities 28
performed by State entities to local governments; 29

(vii) identify technical barriers to housing projects that unnecessarily 30
delay housing projects and recommend alternatives; 31

HOUSE BILL 1175 25

(viii) identify State policies that prevent the funding or approval of 1
desirable housing types and recommend alternatives; and 2

(ix) recommend updates to streamline or provide flexibility in the 3
application of regulations related to critical areas and forest conservation requirements to 4
housing development and qualified affordable housing projects; 5

(2) The Maryland Department of Labor shall include in the Department’s 6
comprehensive internal review a review of all building code requirements including energy 7
efficiency requirements, fire sprinkler or suppression mandates, and building performance 8
standards, and recommend requirements that should be modified, streamlined, or 9
suspended. 10

(d) (1) Departments re quired to conduct a comprehensive internal review 11
under this section shall, to the extent practicable, coordinate with other departments to 12
align reforms and reduce redundant reviews. 13

(2) Departments with overlapping or similar responsibilities, including the 14
Department of the Environment, the Maryland Department of Health, the Department of 15
Natural Resources, and the Department of Transportation, shall jointly identify options to 16
consolidate or parallel track the departments’ reviews. 17

(e) (1) On or before December 31, 2026, each department required to prepare 18
a comprehensive internal review under subsection (b) of this section shall submit an 19
interim report to the Governor and, in accordance with § 2 –1257 of the State Government 20
Article, the General Assembly that includes: 21

(i) a list of the department’s policies and procedures that have been 22
reviewed; 23

(ii) a summary of the delays or inefficiencies identified; 24

(iii) recommended statutory, regulatory, or procedural reforms; 25

(iv) a timeline for implementation of any internal reforms; and 26

(v) any legislative or budgetary requests necessary to implement 27
any reforms. 28

(2) (i) On or before July 1, 2027, each department required to prepare 29
a comprehensive internal review under subsection (b ) of this section shall submit a final 30
report on the comprehensive internal review to the Department of Planning. 31

(ii) On or before December 31, 2027, the Department of Planning 32
shall compile the final reports submitted under subparagraph (i) of this p aragraph and 33
submit the compiled consolidated report to the Governor and, in accordance with § 2–1257 34
of the State Government Article, the General Assembly. 35
26 HOUSE BILL 1175

(iii) The Department of Planning shall make the consolidated report 1
publicly available. 2

SECTION 6. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 3
the application of any provision of this Act to any person or circumstance is held invalid for 4
any reason in a court of competent jurisdiction, the invalidity does not affect other 5
provisions or any other application of this Act that can be given effect without the invalid 6
provision or application, and for this purpose the provisions of this Act are declared 7
severable. 8

SECTION 7. AND BE IT FURTHER ENACTED, That Section 2 of this A ct shall be 9
applicable to all taxable years beginning after June 30, 2026. 10

SECTION 8. AND BE IT FURTHER ENACTED, That Sections 1, 3, 4, 5, 6, and 7 of 11
this Act shall take effect October 1, 2026. 12

SECTION 9. AND BE IT FURTHER ENACTED, That, except as provided in Section 13
8 of this Act, this Act shall take effect June 1, 2026. 14