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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1538*
HOUSE BILL 1538
L1, Q1 6lr3422
By: Delegates Miller, Arentz, Baker, Beauchamp, McComas, T. Morgan, Rose, and
Schmidt
Introduced and read first time: February 13, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Land Use – Accessory Dwelling Units – Requirements and Prohibitions 2
(Maryland Generational Housing Act of 2026) 3
FOR the purpose of requiring a certain local law to authorize development of at least one 4
internal accessory dwelling unit and one external accessory dwelling unit on certain 5
land notwithstanding a certain density limit; limiting the imposition of off –street 6
parking requirements to certain accessory dwellin g units ; prohibiting a utility 7
provider from charging a certain property owner certain fees; authorizing a certain 8
accessory dwelling unit to share certain utility meters and service laterals with a 9
primary single–family detached dwelling unit; prohibiting a county or municipality 10
from imposing certain taxes or fees in relation to the development of a certain 11
accessory dwelling unit; exempting a certain accessory dwelling unit from property 12
tax; and generally relating to accessory dwelling units. 13
BY repealing and reenacting, with amendments, 14
Article – Land Use 15
Section 4–501 and 4–504 16
Annotated Code of Maryland 17
(2012 Volume and 2025 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Land Use 20
Section 4–502 and 4–503 21
Annotated Code of Maryland 22
(2012 Volume and 2025 Supplement) 23
BY adding to 24
Article – Local Government 25
Section 20–128 26
Annotated Code of Maryland 27
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(2013 Volume and 2025 Supplement) 1
BY adding to 2
Article – Tax – Property 3
Section 7–252 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2025 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Land Use 9
4–501. 10
(a) In this subtitle the following words have the meanings indicated. 11
(b) (1) “Accessory dwelling unit” means a secondary dwelling unit that is: 12
(i) on the same lot, parcel, or tract as a primary single –family 13
detached dwelling unit; and 14
(ii) not greater than 75% of the size of and subordinate in use to the 15
primary single–family detached dwelling unit. 16
(2) “Accessory dwelling unit” includes a structure that is: 17
(i) separate from the primary single–family detached dwelling unit; 18
or 19
(ii) attached as an addition to the primary single –family detached 20
dwelling unit. 21
(c) (1) “Dwelling unit” means a single unit providing complete living facilities 22
for at least one individual, including, at a minimum, provisions for sanitation, cooking, 23
eating, and sleeping. 24
(2) “Dwelling unit” does not include a unit in a multifamily residential 25
building. 26
(D) (1) “EXTERNAL ACCESSORY DWELLING UNIT” MEANS AN ACCESSORY 27
DWELLING UNIT THAT IS DETACHED FROM THE PRIMARY DWELLING UNIT. 28
(2) “EXTERNAL ACCESSORY DWELLING UNIT” INCLUDES: 29
(I) A BACKYARD COTTAGE; 30
HOUSE BILL 1538 3
(II) A CONVERTED CARRIAGE HOUSE; OR 1
(III) A MODULAR UNIT. 2
(E) (1) “INTERNAL ACCESSORY DWELLING UNIT” MEANS AN ACCESSORY 3
DWELLING UNIT LOCATE D WITHIN THE FOOTPRI NT OF THE PRIMARY 4
SINGLE–FAMILY DETACHED DWELLING UNIT. 5
(2) “INTERNAL ACCESSORY DW ELLING UNIT ” INCLUDES AN 6
ACCESSORY DWELLING U NIT CREATED THROUGH THE CONVERSION OF A 7
BASEMENT, AN ATTIC, OR AN ATTACHED GARAGE SPACE OF THE PRIMARY 8
SINGLE–FAMILY DETACHED DWELLING UNIT. 9
(F) (1) “QUALIFIED FAMILY MEMBER” MEANS A PARENT, GRANDPARENT, 10
CHILD, GRANDCHILD, OR SIBLING OF THE OWNER OF THE PRIMARY SINGLE–FAMILY 11
DETACHED DWELLING UNIT. 12
(2) “QUALIFIED FAMILY MEMBER” INCLUDES INDIVIDUALS RELATED 13
TO THE OWNER OF THE PRIMARY SINGLE –FAMILY DETACHED DWEL LING UNIT 14
THROUGH ADOPTION OR MARRIAGE. 15
[(d)] (G) “Utility” means water or sewer disposal services provided by: 16
(1) a private company regulated under Division I of the Public Utilities 17
Article; 18
(2) the Washington Suburban Sanitary Commission regulated under 19
Division II of the Public Utilities Article; 20
(3) a sanitary commission regulated under Title 9, Subtitle 6 of the 21
Environment Article; or 22
(4) a municipal authority regulated under Title 9, Subtitle 7 of the 23
Environment Article. 24
4–502. 25
This subtitle applies only to the development of accessory dwelling units on land with 26
a single–family detached dwelling unit as the primary dwelling unit. 27
4–503. 28
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(a) It is the policy of the State to promote and encourage the creation of accessory 1
dwelling units on land with a single–family detached dwelling unit as the primary dwelling 2
unit in order to meet the housing needs of the citizens of Maryland. 3
(b) (1) Except as provided in this subtitle and subject to paragraph (2) of this 4
subsection, this subtitle does n ot alter or abrogate any zoning power or related authority 5
granted to a local jurisdiction under this title. 6
(2) Local jurisdictions shall establish policies that further the intent of this 7
subtitle. 8
4–504. 9
(a) (1) On or before October 1, 2026, each legislative body shall adopt a local 10
law authorizing the development of accessory dwelling units in accordance with this 11
section. 12
(2) A legislative body may adopt a local law that: 13
(i) establishes standards for accessory dwelling unit safety; and 14
(ii) prohibits the full or partial conversion of an accessory structure 15
as an accessory dwelling unit if the only vehicular access to the accessory structure is from 16
an alley. 17
(b) A local law adopted under this section shall provide for construction of 18
accessory dwelling units that meet public health, safety, and welfare standards, including 19
relevant building codes and adequate public facilities provisions. 20
(c) A local law adopted under this section shall: 21
(1) exclude the development of an accessory dwelling unit from the 22
calculation of density and the application of any measures limiting residential growth that 23
pertain to the lot, parcel, or tract proposed for the development of the accessory dwelling 24
unit; AND 25
(2) NOTWITHSTANDING ANY DENSITY LIMIT ESTABLIS HED UNDER 26
LOCAL LAW , AUTHORIZE THE DEVELO PMENT OF AT LEAST ONE INTERNA L 27
ACCESSORY DWELLING UNIT AND ONE EXTERNAL ACC ESSORY DWELLING UNIT ON 28
LAND WITH A SINGLE –FAMILY DETACHED DWEL LING UNIT AS THE PRI MARY 29
DWELLING UNIT. 30
(d) A local law adopted under this section may not establish setback requirements 31
that exceed the existing accessory structure setback requirements from the side and rear 32
lot lines. 33
HOUSE BILL 1538 5
(e) (1) (i) [A] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, A 1
local law adopted under this section may establish additional off –street parking 2
requirements that consider: 3
1. the cost to construct off–street parking spaces; 4
2. whether sufficient curb area exists along the front line of 5
the property to accommodate on–street parking; 6
3. the increase in impervious surface due to the creation of 7
new off–street parking and the relation to any applicable stormwater management plans; 8
and 9
4. variability due to the size of the lot, parcel, or tract on 10
which the accessory dwelling unit or primary dwelling is located. 11
(ii) A local law adopted under this paragraph shall provide for a 12
waiver process from the parking requirements. 13
(2) Before adopting a local law under paragraph (1) of this subsection, a 14
legislative body shall complete a parking study to determine the applicable needs and 15
restrictions in the jurisdiction. 16
(3) A LOCAL LAW ADOPTED UNDER THIS SECTION MAY NOT REQUIRE 17
ADDITIONAL OFF–STREET PARKING SPACE S FOR AN ACCESSORY D WELLING UNIT 18
THAT IS A CONVERSION OF: 19
(I) SPACE IN THE PRIMARY SINGLE–FAMILY DETACHED 20
DWELLING UNIT; OR 21
(II) AN ACCESSORY STRUCTURE ON THE LAND OF THE PRIMARY 22
SINGLE–FAMILY DETACHED DWELLING UNIT. 23
(F) (1) A UTILITY PROVIDER MAY NOT CHARGE A PROPERTY OWNER 24
THAT CONSTRUCTS AN ACCESSORY DWELLING UNIT THAT WILL BE OCCUPIED BY A 25
QUALIFIED FAMILY MEMBER: 26
(I) A WATER OR SEWER CONNECTION FEE THAT EXCEEDS THE 27
ADMINISTRATIVE COST OF A PERMIT; OR 28
(II) IF THE TOTAL BEDROOM COUNT OF THE ACCESSO RY 29
DWELLING UNIT AND TH E PRIMARY SINGLE –FAMILY DETACHED DWEL LING UNIT 30
WILL NOT EXCEED THE CAPACITY OF THE SEPTIC SYSTEM, A CAPACITY CHARGE OR 31
TAP FEE. 32
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(2) A UTILITY PROVIDER SHA LL ALLOW , AT THE REQUEST OF TH E 1
PROPERTY OWNER, AN ACCESSORY DWELLING UNIT THAT WILL BE OCCUPIED BY A 2
QUALIFIED FAMILY MEM BER TO SHARE UTILITY MET ERS AND SERVICE LATE RALS 3
WITH THE PRIMARY SINGLE–FAMILY DETACHED DWELLING UNIT. 4
Article – Local Government 5
20–128. 6
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “ACCESSORY DWELLING UN IT” HAS THE MEANING STAT ED IN § 9
4–501 OF THE LAND USE ARTICLE. 10
(3) “DEVELOPMENT EXCISE TAX” MEANS AN EXCISE TAX IMPOSED BY 11
A COUNTY OR MUNICIPA LITY ON THE CONSTRUC TION OR IM PROVEMENT OF A 12
BUILDING. 13
(4) “DEVELOPMENT IMPACT FE E” MEANS A FEE IMPOSED BY A 14
COUNTY OR MUNICIPALITY FOR THE PURPOSE O F FINANCING THE CAPI TAL COSTS 15
OF ADDITIONAL OR EXP ANDED PUBLIC WORKS , IMPROVEMENTS, AND FACILITIES 16
REQUIRED TO ACCOMMODATE NEW CONSTRUCTION OR DEVELOPMENT. 17
(B) A COUNTY OR MUNICIPALITY MAY NOT IMPOSE A DEVELOPMENT EXCISE 18
TAX OR DEVELOPMENT I MPACT FEE IN RELATIO N TO THE DEVELOPMENT OF AN 19
ACCESSORY DWELLING UNIT THAT MEASURES LESS THAN 1,000 SQUARE FEET. 20
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
as follows: 22
Article – Tax – Property 23
7–252. 24
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 25
INDICATED. 26
(2) “ACCESSORY DWELLING UN IT” HAS THE MEANING STAT ED IN § 27
4–501 OF THE LAND USE ARTICLE. 28
(3) “QUALIFIED FAMILY MEMB ER” HAS THE MEANING STAT ED IN § 29
4–501 OF THE LAND USE ARTICLE. 30
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(B) AN ACCESSORY DWELLING UNIT IS NOT SUBJECT TO PROPERTY TAX IF 1
THE ACCESSORY DWELLING UNIT IS OCCUPIED BY A QUALIFIED FAMILY MEMBER. 2
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 3
1, 2026, and that Section 2 of this Act shall be applicable to all taxable years beginning 4
after June 30, 2026. 5