Land Use - Residential Housing - Oversight and Approval (Building Affordably in My Back Yard 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.
*sb0267*

SENATE BILL 267
L6, Q2, Q6 6lr1390

By: Senator Brooks
Introduced and read first time: January 19, 2026
Assigned to: Education, Energy, and the Environment and Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 2, 2026

CHAPTER ______

AN ACT concerning 1

Land Use – Residential Housing – Oversight, Regulation, and Taxation and 2
Approval 3
(Building Affordably in My Back Yard Act) 4

FOR the purpose of establishing certain policies and processes to facilitate the development 5
of residential housing in the State; requiring an entity that owns residential real 6
property in the State to make a certain certification to the Department of Housing 7
and Community Development; authorizing a local jurisdiction to establish an 8
administrative process to review, approve, modify, or deny certain housing 9
development project applications; requiring certain local jurisdictions and the 10
Maryland–National Capital Park and Planning Commission to establish processes 11
to evaluate the completeness of residential or mixed –use development project 12
applications; specifying the standards applicable to ce rtain complete and approved 13
development project applications; providing for the establishment of certain housing 14
production targets; requiring certain local jurisdictions and the Commission to adopt 15
local project design guidelines for certain qualified aff ordable housing projects; 16
requiring local jurisdictions and the Commission to implement certain pre–approval 17
building permit application processes for standardized model home designs; 18
authorizing a county to reduce the fee or tax rate of certain housing–sensitive taxes 19
or fees imposed on a qualified affordable housing project; authorizing a county to 20
increase the fee or tax rate of certain housing –sensitive taxes or fees on classes of 21
property that are not part of a qualified affordable housing project; allowing a county 22
or municipality to require the payment of a certain percentage of certain 23
development excise taxes and development impact fees before a housing development 24
project is completed; limiting the entities from which a certain person may accept 25
2 SENATE BILL 267

offers on residential real property during a certain period of time; authorizing a 1
county, after making a certain determination, to impose a transfer tax on the 2
transfer of certain owner –occupied properties; authorizing the Mayor and City 3
Council of Baltimore or the governing body of a county to establish, by law, certain 4
subclasses of real property and to set a special property tax rate for the subclasses 5
of real property; requiring the Comptroller, in consultation with the State 6
Department of Assessments and Taxation, to evaluate and report on disincentives to 7
homeowners to downsize or transition to smaller homes; requiring the Department 8
of Planning to conduct a study and publish a comprehensive report on housing 9
infrastructure; requiring certain department s to conduct a comprehensive internal 10
review of certain approval processes that impact housing; and generally relating to 11
the oversight, regulation, development, and taxation and development of residential 12
real estate. 13

BY adding to 14
Article – Housing and Community Development 15
Section 1–103 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, with amendments, 19
Article – Land Use 20
Section 1–401 and 10–103 21
Annotated Code of Maryland 22
(2012 Volume and 2025 Supplement) 23

BY adding to 24
Article – Land Use 25
Section 7 –106; and 12 –101 through 12 –404 to be under the new title “Title 12. 26
Housing Regulations, Targets, and Affordability” 27
Annotated Code of Maryland 28
(2012 Volume and 2025 Supplement) 29

BY adding to 30
Article – Local Government 31
Section 20–128 32
Annotated Code of Maryland 33
(2013 Volume and 2025 Supplement) 34

BY adding to 35
Article – Real Property 36
Section 10–804 37
Annotated Code of Maryland 38
(2023 Replacement Volume and 2025 Supplement) 39

BY repealing and reenacting, with amendments, 40
Article – Tax – Property 41
SENATE BILL 267 3

Section 6–202.1 and 6–302 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2025 Supplement) 3

BY adding to 4
Article – Tax – Property 5
Section 13–601 and 13–602 to be under the new subtitle “Subtitle 6. Transfer Tax on 6
Transfers of Owner–Occupied Properties” 7
Annotated Code of Maryland 8
(2019 Replacement Volume and 2025 Supplement) 9

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF M ARYLAND, 10
That the Laws of Maryland read as follows: 11

Article – Housing and Community Development 12

1–103. 13

(A) IN THIS SECTION, “ENTITY” MEANS: 14

(1) A CORPORATION; 15

(2) A LIMITED LIABILITY COMPANY; 16

(3) A LIMITED LIABILITY PARTNERSHIP; 17

(4) A LIMITED PARTNERSHIP; 18

(5) A LIMITED LIABILITY LIMITED PARTNERSHIP; 19

(6) A PROFESSIONAL CORPORATION; 20

(7) A TRADE NAME FILER; OR 21

(8) A BUSINESS TRUST. 22

(B) (1) AT EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS 23
SUBSECTION, AT LEAST ONCE PER YEAR , EACH ENTITY THAT OWN S RESIDENTIAL 24
REAL PROPERTY IN THE STATE THAT THE ENTITY RENTS OR INTENDS TO RENT FOR 25
RESIDENTIAL USE SHALL FILE WITH THE DEPARTMENT A CERTIFICATE DISCLOSING 26
THE CORRECT CONTACT INFORMATION FOR A RE PRESENTATIVE OF THE ENTITY 27
WHO HAS THE AUTHORITY TO COMMUNICATE WITH THE PUBLIC ABOUT THE ENTITY. 28

(2) THE CERTIFICATE SHALL BE: 29

4 SENATE BILL 267

(I) IN WRITING; AND 1

(II) AFFIRMED OR ACKNOWLEDGED UNDER OATH. 2

(3) THIS SUBSECTION DOES NOT APPLY TO AN ENTI TY THAT 3
PROVIDES CONTACT INFORMATION FOR A REPRESENTATIVE OF TH E ENTITY WHO 4
HAS THE AUTHORITY TO COMMUNICATE WITH THE PUBLIC ABOUT THE ENTITY TO A 5
UNIT OF LOCAL GOVERNMENT AT LEAST ONCE PER YEAR IN ACCORDANCE WITH THE 6
REQUIREMENTS OF A LOCAL ORDINANCE OR PROGRAM. 7

(C) THE DEPARTMENT SHALL PROV IDE THE INFORMATION PROVIDED 8
UNDER SUBSECTION (B) OF THIS SECTION ON R EQUEST BY A UNIT OF LOCAL 9
GOVERNMENT IN THE STATE. 10

Article – Land Use 11

1–401. 12

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

(b) The following provisions of this division apply to a charter county: 15

(1) this subtitle, including Parts II and III (Charter county – 16
Comprehensive plans), 17

(2) § 1–101(l), (m), and (o) (Definitions – “Plan”, “Priority funding area”, 18
and “Sensitive area”); 19

(3) § 1–201 (Visions); 20

(4) § 1–206 (Required education); 21

(5) § 1–207 (Annual report – In general); 22

(6) § 1–208 (Annual report – Measures and indicators); 23

(7) Title 1, Subtitle 3 (Consistency); 24

(8) Title 1, Subtitle 5 (Growth Tiers); 25

(9) § 4–104(c) (Limitations – Bicycle parking); 26

(10) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 27

(11) § 4–208 (Exceptions – Maryland Accessibility Code); 28
SENATE BILL 267 5

(12) § 4–210 (Permits and variances – Solar panels); 1

(13) § 4–211 (Change in zoning classification – Energy generating systems); 2

(14) § 4–212 (Agritourism); 3

(15) § 4–213 (Alcohol production); 4

(16) § 4–214 (Agricultural alcohol production); 5

(17) § 4–215 (Pollinator–friendly vegetation management); 6

(18) § 4–216 (Limitations – Family child care homes and large family child 7
care homes); 8

(19) Title 4, Subtitle 5 (Accessory Dwelling Units); 9

(20) § 5–102(d) (Subdivision regulations – Burial sites); 10

(21) § 5–104 (Major subdivision – Review); 11

(22) Title 7, Subtitle 1 (Development Mechanisms); 12

(23) Title 7, Subtitle 2 (Transfer of Development Rights); 13

(24) except in Montgomery County or Prince George’s County, Title 7, 14
Subtitle 3 (Development Rights and Responsibilities Agreements); 15

(25) Title 7, Subtitle 4 (Inclusionary Zoning); 16

(26) Title 7, Subtitle 5 (Housing Expansion and Affordability); 17

(27) § 8–401 (Conversion of overhead facilities); 18

(28) for Baltimore County only, Title 9, Subtitle 3 (Single–County Provisions 19
– Baltimore County); 20

(29) for Frederick County only, Title 9, Subtitle 10 (Single –County 21
Provisions – Frederick County); 22

(30) for Howard County only, Title 9, Subtitle 13 (Single–County Provisions 23
– Howard County); 24

(31) for Talbot County only, Title 9, Subtitle 18 (Single –County Provisions 25
– Talbot County); [and] 26

6 SENATE BILL 267

(32) Title 11, Subtitle 2 (Civil Penalty); AND 1

(33) TITLE 12 (HOUSING REGULATIONS, TARGETS, AND 2
AFFORDABILITY). 3

(c) This section supersedes any inconsistent provision of Division II of this article. 4

7–106. 5

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7

(2) “HOUSING DEVELOPMENT P ROJECT” MEANS THE NEW 8
CONSTRUCTION OR SUBS TANTIAL RENOVATION O F A RESIDENTIAL REAL ESTATE 9
PROJECT. 10

(3) “HOUSING DEVELOPMENT P ROJECT APPLICATION ” MEANS AN 11
APPLICATION FOR A BU ILDING PERMIT , CERTIFICATION, AUTHORIZATION, SITE 12
PLAN APPROVAL , SUBDIVISION APPROVAL , CONCEPTUAL PLAN , OR ANY OTHER 13
DETERMINATION BY A L OCAL JURISDICTION RE LATING TO A HOUSING 14
DEVELOPMENT PROJECT THAT HAS BEEN SUBMITTED TO A LOCAL JURISDICTION IN 15
COMPLIANCE WITH APPLICABLE REQUIREMENTS. 16

(B) AFTER MAKING A DETERM INATION THAT THERE I S A SHORTAGE OF 17
AFFORDABLE HOUSING I N A LOCAL JURISDICTI ON, THE GOVERNING BODY O F A 18
LOCAL JURISDICTION MAY E STABLISH, BY LOCAL LAW , AN ADMINISTRATIVE 19
PROCESS TO REVIEW , APPROVE, MODIFY, OR DENY A HOUSING DE VELOPMENT 20
PROJECT APPLICATION. 21

(C) A LOCAL LAW THAT ESTABLISHES AN ADMINISTRATIVE PROCESS UNDER 22
SUBSECTION (B) OF THIS SECTION SHALL: 23

(1) DESIGNATE THE DEPART MENT, OFFICIAL, OR STAFF THAT WILL 24
IMPLEMENT THE ADMINISTRATIVE PROCESS; 25

(2) PROVIDE THE PROCEDUR ES, CRITERIA, AND CONDITIONS FOR 26
THE ADMINISTRATIVE PROCESS; 27

(3) REQUIRE REASONABLE P UBLIC NOTICE AND OPP ORTUNITY FOR 28
PUBLIC COMMENT DURING THE ADMINISTRATIVE PROCESS; AND 29

(4) ESTABLISH A PROCESS TO APPEAL A DECISION MADE THROUGH 30
THE ADMINISTRATIVE PROCESS. 31

SENATE BILL 267 7

(D) THIS SECTION MAY NOT BE CONSTRUED TO: 1

(1) LIMIT THE AUTHORITY OF A LOCAL JURISDICT ION TO REVIEW , 2
APPROVE, OR DENY ANY MATTER UNDER ITS JURISDICTION; OR 3

(2) UNLESS AUTHORIZED BY LOCAL LAW, TRANSFER THE AUTHORITY 4
OF A LOCAL JURISDICT ION TO MAKE A FINAL DECISION REGARDING A MATTER 5
DECIDED THROUGH THE ADMINISTRATIVE PROCESS. 6

10–103. 7

(a) Except as provided in this section, this division does not apply to Baltimore 8
City. 9

(b) The following provisions of this division apply to Baltimore City: 10

(1) this title; 11

(2) § 1–101(m) (Definitions – “Priority funding area”); 12

(3) § 1–101(o) (Definitions – “Sensitive area”); 13

(4) § 1–201 (Visions); 14

(5) § 1–206 (Required education); 15

(6) § 1–207 (Annual report – In general); 16

(7) § 1–208 (Annual report – Measures and indicators); 17

(8) Title 1, Subtitle 3 (Consistency); 18

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties – 19
Comprehensive Plans; Implementation); 20

(10) § 4–104(c) (Limitations – Bicycle parking); 21

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 22

(12) § 4–205 (Administrative adjustments); 23

(13) § 4–208 (Exceptions – Maryland Accessibility Code); 24

(14) § 4–210 (Permits and variances – Solar panels); 25

(15) § 4–211 (Change in zoning classification – Energy generating systems); 26
8 SENATE BILL 267

(16) § 4–215 (Pollinator–friendly vegetation management); 1

(17) § 4–216 (Limitations – Family child care homes and large family child 2
care homes); 3

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

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

(20) Title 7, Subtitle 1 (Development Mechanisms); 6

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

(22) Title 7, Subtitle 3 (Development Rights and Responsibilities 8
Agreements); 9

(23) Title 7, Subtitle 4 (Inclusionary Zoning); 10

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

(25) Title 11, Subtitle 2 (Civil Penalty); AND 12

(26) TITLE 12, SUBTITLE 4 (QUALIFIED AFFORDABLE HOUSING 13
PROJECTS). 14

TITLE 12. HOUSING REGULATIONS, TARGETS, AND AFFORDABILITY. 15

SUBTITLE 1. DEFINITIONS. 16

12–101. 17

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE THE MEANI NGS 18
INDICATED. 19

(B) “COMMISSION” MEANS THE MARYLAND–NATIONAL CAPITAL PARK AND 20
PLANNING COMMISSION. 21

(C) “COMPLETE APPLICATION ” MEANS THE INITIAL SU BMITTAL OF AN 22
APPLICATION WITH ALL MATERIALS AND INFORM ATION REQUIRED FOR 23
PROCESSING AN D SUBSTANTIVE REVIEW AS DEFINED AND DETER MINED BY THE 24
LOCAL JURISDICTION OR THE COMMISSION. 25

(D) “MIXED–USE” MEANS ANY COMBINATION OF A RESIDENTIAL U SE WITH 26
RETAIL, COMMERCIAL, OFFICE, OR SERVICE USES IN T HE SAME BUILDING OR ON 27
SENATE BILL 267 9

THE SAME SITE , WITH PERCENTAGES, DETERMINED BY THE LO CAL JURISDICTION 1
OR THE COMMISSION, ALLOCATED FOR EACH USE. 2

(E) “RESIDENTIAL” MEANS ANY USE APPROVED BY A LOCAL JURISDICTION 3
OR THE COMMISSION THAT IS FOR EXISTING OR PROPOSED DWELLING UNITS. 4

SUBTITLE 2. REGULATORY AND CONSTRUCTION CERTAINTY. 5

12–201. 6

THIS SUBTITLE APPLIES ONLY TO: 7

(1) A COUNTY WITH A POPULATION OF AT LEAST 150,000 RESIDENTS, 8
NOT INCLUDING ANY RESIDENTS OF A MUNICIPAL CORPORATION LOCATED WITHIN 9
THE COUNTY; AND 10

(2) A MUNICIPAL CORPORATION. 11

12–202. 12

(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, EACH LOCAL 13
JURISDICTION AND THE COMMISSION SHALL ESTABLISH A PROCESS TO E VALUATE 14
THE COMPLETENESS OF RESIDENTIAL OR MIXED –USE DEVELOPMENT PROJ ECT 15
APPLICATIONS. 16

(2) (I) WITHIN 30 DAYS AFTER RECEIPT OF A HOUSING 17
DEVELOPMENT PROJECT APPLICATION, A LOCAL JURISDICTION OR THE 18
COMMISSION SHALL MAKE A DETERMINATION AS TO WHETHER THE APPLICATION IS 19
A COMPLETE APPLICATION. 20

(II) AFTER MAKING A DETERM INATION UNDER THIS 21
PARAGRAPH, THE LOCAL JURISDICTION OR THE COMMISSION SHALL: 22

1. PROMPTLY NOTIFY THE APPLICANT OF THE 23
DETERMINATION AND THE DATE OF THE DETERMINATION; AND 24

2. IF THE LOCAL JURISDI CTION OR THE COMMISSION 25
HAS DETERMINED THAT THE APPLICATION IS N OT A COMPLETE APPLIC ATION, 26
PROVIDE THE APPLI CANT WITH A LIST OF DEFICIENCIES AND A T IME FRAME FOR 27
CURING THE DEFICIENCIES. 28

(3) (I) IF DURING THE APPLICA TION REVIEW PROCESS AN 29
APPLICANT FAILS TO RESPOND TO A REQUEST FROM A LOCAL JURISDICTION OR THE 30
10 SENATE BILL 267

COMMISSION FOR ADDITIONAL INFORMATION OR APPLICATION AMENDMENTS, THE 1
PROVISIONS OF SUBSECTIONS (B) AND (C) OF THIS SECTION DO NOT APPLY TO THE 2
APPLICATION. 3

(II) A LOCAL JURISDICTION O R THE COMMISSION SHALL 4
ESTABLISH THE TIME FRAME FOR RESPONSES REQUIRED UNDER THIS PARAGRAPH 5
BEFORE THE SUBMISSION OF THE APPLICATION. 6

(B) (1) FOR PURPOSES OF ESTAB LISHING REGULATORY C ERTAINTY, 7
AFTER VERIFICATION B Y A LOCAL JURISDICTI ON OR THE COMMISSION THAT A 8
RESIDENTIAL OR MIXED–USE DEVELOPMENT PROJECT APPLICATION IS COMPLETE, 9
AND FOR A PERIOD NOT TO EXCEED 3 YEARS UNLESS EXTENDE D BY THE LOCAL 10
JURISDICTION OR THE COMMISSION: 11

(I) A LOCAL JURISDICTION OR THE COMMISSION SHALL 12
PROCESS AND REVIEW A NY APPLICATION FOR Z ONING, SUBDIVISION, OR LAND 13
DEVELOPMENT APPROVAL USING THE LAND USE R EGULATIONS, ZONING 14
ORDINANCES, AND DEVELOPMENT STAN DARDS IN EFFECT ON T HE DATE THE 15
APPLICATION IS VERIFIED TO BE COMPLETE; AND 16

(II) THE STATE MAY NOT IMPOSE NEW REGULATORY 17
DEVELOPMENT STANDARDS ON THE RESIDENTIAL OR MIXED –USE DEVELOPMENT 18
PROJECT APPLICATION. 19

(2) FOR PURPOSES OF THIS SUBSECTION , LOCAL REGULATIONS 20
ESTABLISHING IMPACT FEES OR DEVELOPMENT EXCISE TAXES MAY NOT BE 21
CONSIDERED LAND USE REGULATIONS, ZONING ORDINANCES , OR DEVELOPMENT 22
STANDARDS. 23

(C) FOR THE PURPOSE OF ES TABLISHING CONSTRUCT ION CERTAINTY , 24
AFTER RECEIPT OF FINAL APPROVAL OF A RESIDENTIAL OR MIX ED–USE 25
DEVELOPMENT PROJECT APPLICATION BY A LOC AL JURISDICTION OR T HE 26
COMMISSION: 27

(1) THE LOCAL JURISDICTION OR THE COMMISSION MAY NOT IMPOSE 28
NEW DEVELOPMENT STAN DARDS OR DOWNZONE LA ND DURING THE APPROV AL 29
PERIOD OF THE DEVELOPMENT PROJECT APPLICATION; AND 30

(2) THE LOCAL JURISDICTION, THE COMMISSION, OR THE STATE MAY 31
NOT IMPOSE NEW DEVEL OPMENT STANDARDS DURING THE APPROVAL PER IOD OF 32
THE DEVELOPMENT PROJECT APPLICATION. 33

(D) NOTHING IN THIS SECTION MAY BE CONSTRUED TO: 34
SENATE BILL 267 11

(1) PREVENT THE APPLICAT ION OF REGULATIONS T HAT ARE 1
ADOPTED IN ACCORDANC E WITH APPLICABLE LA W AND NECESSARY TO P ROTECT 2
PUBLIC HEALTH AND SAFETY; 3

(2) EXTEND ANY ADEQUATE PUBLIC FACILITY APPR OVAL 4
REQUIREMENTS BEYOND THE TIME FRAME APPROVED BY THE LOCAL JURISDICTION 5
OR THE COMMISSION; 6

(3) ALLOW A RESIDENTIAL OR MIXED–USE DEVELOPMENT PROJ ECT 7
TO BEGIN OR CONTINUE CONSTRUCTION IF THE ADEQUATE PUBLIC FACI LITY 8
APPROVAL HAS EXPIRED; 9

(4) PREVENT THE EXPIRATI ON OF AN APPROVAL OF A RESIDENTIAL 10
OR MIXED–USE DEVELOPMENT PROJECT APPLICATION OR PERMIT IN ACCORDANCE 11
WITH THE LAWS OR REGULATIONS OF THE STATE, A LOCAL JURISDICTION, OR THE 12
COMMISSION; OR 13

(5) LIMIT THE ABILITY OF A LOCAL JURISDICTION OR THE 14
COMMISSION TO: 15

(I) EXTEND THE DURATION OF A VALID PERMIT FO R A 16
RESIDENTIAL OR MIXED–USE DEVELOPMENT PROJECT; 17

(II) EXECUTE A DEVELOPMENT RIGHTS AND RESPONSIBILITIES 18
AGREEMENT UNDER TITLE 7, SUBTITLE 3 AND TITLE 25, SUBTITLE 5 OF THIS 19
ARTICLE; OR 20

(III) APPROVE A ZONING TEX T AMENDMENT, APPLICATION FOR 21
REZONING, OR OTHER LOCAL EQUIV ALENT TO INCREASE TH E DENSITY OF A 22
RESIDENTIAL OR MIXED –USE DEVELOPMENT PROJ ECT BEYOND THE MAXIM UM 23
ALLOWABLE AMOUNT AT THE TIME A COMPLETE APPLICATION IS VERIFIED. 24

(E) THE REQUIREMENTS OF T HIS SECTION APPLY TO A LOCAL 25
JURISDICTION AND THE COMMISSION ONLY TO TH E EXTENT THAT THE 26
REQUIREMENTS DO NOT CONFLICT WITH OTHER STATE OR FEDERAL LAWS OR 27
REGULATIONS. 28

SUBTITLE 3. HOUSING PRODUCTION TARGETS. 29

12–301. 30

12 SENATE BILL 267

(A) ON OR BEFORE JANUARY 1, 2031, AND EACH JANUARY 1 FOLLOWING A 1
UNITED STATES DECENNIAL CENSUS THROUGH JANUARY 1, 2051, THE GOVERNOR 2
OR THE GOVERNOR’S DESIGNEE SHALL ESTABLISH HOUSING PRODUCTION TARGETS 3
FOR: 4

(1) THE STATE; 5

(2) EACH COUNTY; AND 6

(3) EACH MUNICIPAL CORPO RATION THAT EXERCISE S ZONING OR 7
PLANNING AUTHORITY. 8

(B) IN ESTABLISHING THE H OUSING PRODUCTION TA RGETS UNDER 9
SUBSECTION (A) OF THIS SECTION, THE GOVERNOR SHALL: 10

(1) ANALYZE DATA AND FORECASTS RELATED TO: 11

(I) EMPLOYMENT DEMAND; 12

(II) HOUSING DEMAND; 13

(III) POPULATION GROWTH; 14

(IV) INFRASTRUCTURE CAPACITY AND CONSTRAINTS; AND 15

(V) ANY OTHER RELATED INFORMATION; 16

(2) CONSULT WITH EACH LO CAL JURISDICTION THA T MAY HAVE 17
HOUSING PRODUCTION T ARGETS ESTABLISHED U NDER SUBSECTION (A) OF THIS 18
SECTION; AND 19

(3) CONSULT WITH THE COMMISSION ABOUT HOUSING PRODUCTION 20
TARGETS THAT MAY BE ESTABLISHED WITHIN THE COMMISSION’S JURISDICTION. 21

(C) THE GOVERNOR SHALL: 22

(1) REEVALUATE AND REVIS E THE ESTABLISHED HO USING 23
PRODUCTION TARGETS; AND 24

(2) IN CONSULTATION WITH THE MARYLAND ASSOCIATION OF 25
COUNTIES AND THE MARYLAND MUNICIPAL LEAGUE, DEVELOP METRICS TO 26
MEASURE THE PROGRESS TOWARD THE HOUSING PRODUCTION TARGETS. 27

SENATE BILL 267 13

(D) (1) THE GOVERNOR SHALL PUBLIS H THE CURRENT HOUSIN G 1
PRODUCTION TARGETS E STABLISHED UNDER THI S SECTION ON THE GOVERNOR’S 2
WEBSITE AND NOTIFY EAC H APPLICABLE LOCAL J URISDICTION AND THE 3
COMMISSION OF THE TARGETS IN A TIMELY MANNER. 4

(2) THE PUBLICATION UNDER THIS SUBSECTION SHAL L PROVIDE A 5
SUPPORTING BASIS FOR THE HOUSING PRODUCTI ON TARGETS THAT ARE 6
ESTABLISHED. 7

(3) WITHIN 1 MONTH AFTER THE PUBL ICATION OF HOUSING 8
PRODUCTION TARGETS, THE GOVERNOR SHALL SUBMIT , IN ACCORDANCE WITH § 9
2–1257 OF THE STATE GOVERNMENT ARTICLE, A REPORT ON THE INFO RMATION 10
PUBLISHED REGARDING HOUSING PRODUCTION T ARGETS TO THE GENERAL 11
ASSEMBLY. 12

(E) (1) ON OR BEFORE JANUARY 1 FOLLOWING PUBLICATIO N OF THE 13
HOUSING PRODUCTION T ARGETS AND ON OR BEF ORE JANUARY 1 EACH YEAR 14
THEREAFTER, THE GOVERNOR SHALL PUBLISH A REPORT THAT: 15

(I) IDENTIFIES THE HOUSING PRODUCTION TARGETS FOR THE 16
STATE AND EACH LOCAL JURISDICTION; 17

(II) ASSESSES THE CUMULATIVE PROGRESS AND THE PROGRESS 18
FOR THE PRIOR YEAR O F THE STATE AND EACH LOCAL JURISDICTION TOWARD 19
MEETING APPLICABLE H OUSING PRODUCTION TA RGETS USING THE METR ICS 20
DEVELOPED UNDER SUBSECTION (C)(2) OF THIS SECTION; 21

(III) FOR ANY HOUSING PROD UCTION TARGET THAT T HE 22
GOVERNOR DETERMINES I S NOT PRACTICABLY ME ASURED BY THE METRIC S 23
DEVELOPED UNDER SUBS ECTION (C)(2) OF THIS SECTION , INCLUDES AN 24
EXPLANATION THAT THE HOUSING PRODUCTION TARGET MAY NOT BE PRACTICABLY 25
MEASURED AND A DESCRIPTION OF THE STATUS TOWARD ACHIEVING THE HOUSING 26
PRODUCTION TARGET; AND 27

(IV) PROVIDES A SUPPORTIN G BASIS FOR ANY ALTE RATION TO 28
AN ESTABLISHED HOUSING PRODUCTION TARGET. 29

(2) (I) THE GOVERNOR SHALL PUBLIS H THE REPORT ON THE 30
GOVERNOR’S WEBSITE AND NOTIFY EACH APPLICABLE LOCA L JURISDICTION AND 31
THE COMMISSION OF THE REPORT IN A TIMELY MANNER. 32

(II) WITHIN 1 MONTH AFTER THE PUBLICATION OF THE REPORT 33
REQUIRED IN PARAGRAPH (1) OF THIS SUBSECTION, THE GOVERNOR SHALL SUBMIT 34
14 SENATE BILL 267

THE REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 1
ARTICLE, TO THE GENERAL ASSEMBLY. 2

12–302. 3

(A) (1) IF THE COMMISSION OR A LOCAL JURISDICTION DISAGREES WITH 4
THE HOUSING PRODUCTI ON TARGET ESTABLISHE D UNDER § 12–301 OF THIS 5
SUBTITLE, THE LOCAL JURISDICTI ON MAY PROPOSE AN ALT ERNATIVE HOUSING 6
PRODUCTION TARGET IN ACCORDANCE WITH THIS SECTION. 7

(2) WITHIN 180 DAYS AFTER THE GOVERNOR PROVIDES THE NOTICE 8
REQUIRED UNDER § 12–301(D)(1) OF THIS SUBTITLE, THE COMMISSION OR A LOCAL 9
JURISDICTION SHALL N OTIFY THE GOVERNOR OF THE LOCAL JURISDICTION’S 10
PROPOSED ALTERNATIVE HOUSING PRODUCTION TARGET BY SUBMITTING WRITTEN 11
JUSTIFICATION THAT INCLUDES: 12

(I) LOCAL DATA ON HOUSING NEED AND DEMAND; 13

(II) PLANNING AND ZONING CAPACITY; 14

(III) INFRASTRUCTURE AVAILABILITY OR CONSTRAINTS; 15

(IV) ENVIRONMENTAL OR TOPOGRAPHIC LIMITATIONS; AND 16

(V) ANY OTHER RELEVANT LOCAL CONSIDERATIONS. 17

(B) (1) ON RECEIPT OF A PROPO SED ALTERNATIVE HOUS ING 18
PRODUCTION TARGET, THE GOVERNOR SHALL: 19

(I) REVIEW THE SUBMISSIO N FOR CONSISTENCY WITH 20
STATEWIDE GOALS AND METHODOLOGIES USED T O DETERMINE THE LOCA L 21
JURISDICTION’S HOUSING PRODUCTION TARGET; AND 22

(II) CONSIDER THE WRITTEN JUSTIFICATION PROVIDED BY THE 23
LOCAL JURISDICTION. 24

(C) (1) WITHIN 30 DAYS AFTER RECEIPT O F THE PROPO SED 25
ALTERNATIVE HOUSING PRODUCTION TARGET , THE GOVERNOR SHALL ISSUE A 26
WRITTEN DECISION ADO PTING, MODIFYING, OR REJECTING THE PRO POSED 27
ALTERNATIVE HOUSING PRODUCTION TARGET. 28

(2) IF THE GOVERNOR DOES NOT ADO PT, REJECT, OR MODIFY THE 29
ALTERNATIVE HOUSING PRODUCTION TARGET WITHIN 30 DAYS AFTER RECEIPT OF 30
SENATE BILL 267 15

THE PROPOSED ALTERNA TIVE HOUSING PRODUCT ION TARGET , THE PROPOSED 1
ALTERNATIVE SHALL BE DEEMED APPROVED. 2

(3) IF THE GOVERNOR MODIFIES OR REJECTS THE PROPOSED 3
ALTERNATIVE HOUSING PRODUCTION TARGET , THE LOCAL JURISDICTION MAY 4
REQUEST A CONFERENCE WITH THE GOVERNOR’S OFFICE TO REVIEW A ND 5
CONSIDER ALTERNATIVE HOUSING PRODUCTION TARGETS. 6

(4) IF THE GOVERNOR AND THE LOCAL JURISDICTION DO NOT AGREE 7
ON A HOUSING PRODUCTION TARGET, THE GOVERNOR SHALL: 8

(I) DETERMINE THE HOUSING PRO DUCTION TARGET FOR T HE 9
LOCAL JURISDICTION; AND 10

(II) INCLUDE THE LOCAL JU RISDICTION’S PROPOSED 11
ALTERNATIVE HOUSING PRODUCTION TARGET AN D THE JUSTIFICATION FOR THE 12
TARGET AS AN APPENDI X TO THE ANNUAL REPO RT REQUIRED UNDER § 12–301(D) 13
OF THIS SUBTITLE. 14

SUBTITLE 4. QUALIFIED AFFORDABLE HOUSING PROJECTS. 15

12–401. 16

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18

(B) “AFFORDABLE DWELLING U NIT” MEANS A DWELLING UNI T THAT IS 19
AFFORDABLE TO HOUSEH OLDS EARNING 60% OR LESS OF THE AREA MED IAN 20
INCOME. 21

(C) “AREA MEDIAN INCOME” MEANS THE MEDIAN HOUSEHOLD INCOME FOR 22
THE AREA ADJUSTED FO R HOUSEHOLD SIZE AS PUBLISHED AND ANNUAL LY 23
UPDATED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. 24

(D) “HOUSING–SENSITIVE FEE ” MEANS A DEVELOPMENT IMPACT FEE 25
AUTHORIZED UNDER TITLE 20, SUBTITLE 7 OF THE LOCAL GOVERNMENT ARTICLE 26
OR ANY OTHER LAW. 27

(E) (1) “HOUSING–SENSITIVE TAX” INCLUDES: 28

(I) A DEVELOPMENT EXCISE TAX AUTHORIZED UNDER TITLE 29
20, SUBTITLE 8 OF THE LOCAL GOVERNMENT ARTICLE OR ANY OTHER PUBLIC 30
GENERAL OR PUBLIC LOCAL LAW; 31
16 SENATE BILL 267

(II) THE RECORDATION TAX IMPOSED UNDER TITLE 12 OF THE 1
TAX – PROPERTY ARTICLE; AND 2

(III) THE COUNTY TRANSFER TAX AUTHORIZED UNDER TITLE 13, 3
SUBTITLE 4 OF THE TAX – PROPERTY ARTICLE. 4

(2) “HOUSING–SENSITIVE TAX ” DOES NOT INCLUDE A T AX 5
AUTHORIZED OR IMPOSED BY: 6

(I) A COUNTY CHARTER; OR 7

(II) A PUBLIC LOCAL LAW THAT AUTHORIZES GENERAL TAXING 8
AUTHORITY. 9

(F) “QUALIFIED AFFORDABLE HOUSING PROJECT” MEANS A RESIDENTIAL 10
PROJECT THAT: 11

(1) CONSISTS OF NEW CONS TRUCTION OR SUBSTANT IAL 12
RENOVATION, AS ANNUALLY ESTABLISHED AND IDENTIFIED B Y THE DEPARTMENT 13
OF HOUSING AND COMMUNITY DEVELOPMENT IN THE MULTIFAMILY RENTAL 14
FINANCING PROGRAM GUIDE; 15

(2) CONTAINS AT LEAST 25% OF UNITS THAT ARE AFFORDABLE; AND 16

(3) IS DEED –RESTRICTED TO INCLUD E 25% OF UNITS THAT ARE 17
AFFORDABLE DWELLING UNITS FOR A PERIOD OF AT LEAST 40 YEARS. 18

12–402. 19

THIS SUBTITLE APPLIES ONLY TO: 20

(1) A COUNTY WITH A POPULATION OF AT LEAST 150,000 RESIDENTS, 21
NOT INCLUDING ANY RESIDENTS OF A MUNICIPAL CORPORATION LOCATED WITHIN 22
THE COUNTY; AND 23

(2) A MUNICIPAL CORPORATION. 24

12–403. 25

(A) (1) ON OR BEFORE JULY 1, 2027, EACH LOCAL JURISDICT ION AND 26
THE COMMISSION SHALL ADOP T LOCAL PROJECT DESI GN GUIDELINES FOR 27
SENATE BILL 267 17

QUALIFIED AFFORDABLE HOUSING P ROJECTS THAT INCLUDE REQUIREMENTS 1
CONCERNING: 2

(I) PARKING; 3

(II) MAXIMUM HEIGHT; 4

(III) SETBACK; 5

(IV) LOT AREA; 6

(V) OPEN SPACE; 7

(VI) INTERNAL VEHICLE AND PEDESTRIAN MOVEMENT; 8

(VII) LANDSCAPING; 9

(VIII) LIGHTING; 10

(IX) ARCHITECTURE; AND 11

(X) SIGNAGE. 12

(2) THIS SUBSECTION MAY N OT BE CONSTRUED TO P ROHIBIT A 13
LOCAL JURISDICTION O R THE COMMISSION FROM REQUI RING A QUALIFIED 14
AFFORDABLE HOUSING PROJECT APPLICATION TO COMPLY WITH STANDARDS THAT 15
ARE MORE DETAILED OR STRINGENT THAN LOCAL PROJECT DESIGN GUIDELINES. 16

(B) (1) ON OR BEFORE JULY 1, 2027, EACH LOCAL JURISDICT ION AND 17
THE COMMISSION SHALL IMPL EMENT A PRE –APPROVAL BUILDING PE RMIT 18
APPLICATION PROCESS FOR STANDARDIZED MODEL HOME DESIGNS. 19

(2) THE PROCESS REQUIRED UNDER THIS SUBSECTION SHALL: 20

(I) ALLOW BUILDERS AND D EVELOPERS TO SUBMIT MODEL 21
HOME DESIGNS FOR REV IEW AND APPROVAL BEF ORE THE SUBMISSION O F 22
INDIVIDUAL BUILDING PERMIT APPLICATIONS; 23

(II) ENSURE THAT APPROVED MODEL PLANS ARE RETAINED BY 24
THE LOCAL JURISDICTI ON OR THE COMMISSION FOR REFERE NCE AND REUSE 25
THROUGHOUT THE DURATION OF ANY DEVELOPMENT PROJECT; 26

18 SENATE BILL 267

(III) ELIMINATE REDUNDANT PLAN REVIEWS FOR EAC H 1
SUBSEQUENT PERMIT AP PLICATION USING AN A PPROVED MODEL DESIGN , 2
PROVIDED THAT NO SUBSTANTIVE CHANGES ARE MADE TO THE APPLICATION; 3

(IV) REDUCE PERMIT PROCES SING TIMES FOR PRODU CTION 4
HOMES IN APPROVED SUBDIVISIONS; AND 5

(V) MAINTAIN COMPLIANCE WITH APPLICABLE BUIL DING 6
CODES, ZONING REGULATIONS, AND DESIGN STANDARDS. 7

12–404. 8

(A) NOTWITHSTANDING ANY O THER PROVISION OF LA W THAT LIMITS A 9
HOUSING–SENSITIVE TAX OR HOUSING–SENSITIVE FEE, ON A FINDING BY A COUNTY 10
THAT THE COUNTY HAS A SHORTFALL IN TOTAL HOUSING UNITS OR A C LASS OF 11
AFFORDABLE HOUSING UNITS THE COUNTY MAY ESTABLISH, BY LOCAL LAW: 12

(1) A REDUCED HOUSING –SENSITIVE TAX RATE O R 13
HOUSING–SENSITIVE FEE FOR A QUALIFIED AFFORDABLE HOUSING PROJECT; OR 14

(2) AN EXEMPTION FOR A Q UALIFIED AFFORDABLE HOUSING 15
PROJECT. 16

(B) A LOCAL LAW THAT ESTAB LISHES A REDUCED RAT E OR EXEMPTION 17
UNDER SUBSECTION (A) OF THIS SECTION SHAL L BE OF LIMITED DURA TION OR 18
SUBJECT TO TERMINATI ON BASED ON QUANTIFI ABLE FACTORS THAT DE TERMINE 19
THE EXISTENCE OF A S HORTFALL IN TOTAL HO USING UNITS OR A CLA SS OF 20
AFFORDABLE HOUSING UNITS IN THE COUNTY. 21

(C) NOTWITHSTANDING ANY OTHER PROVIS ION OF LAW THAT LIMI TS A 22
HOUSING–SENSITIVE TAX OR HOU SING–SENSITIVE FEE, A COUNTY THAT ADOPTS A 23
REDUCED HOUSING–SENSITIVE TAX RATE UNDER SUBSECTION (A) OF THIS SECTION 24
MAY ESTABLISH HIGHER HOUSING–SENSITIVE TAX RATES OR HOUSING–SENSITIVE 25
FEES FOR CLASSES OF REAL PROPERTY THAT A RE NOT PART OF A QUA LIFIED 26
AFFORDABLE HOUSING PROJECT. 27

Article – Local Government 28

20–128. 29

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31

SENATE BILL 267 19

(2) “DEVELOPMENT EXCISE TAX” MEANS AN EXCISE TAX IMPOSED BY 1
A COUNTY OR MUNICIPA LITY ON THE CONSTRUC TION OR IMPROVEMENT OF A 2
BUILDING. 3

(3) “DEVELOPMENT IMPACT FE E” MEANS A FEE IMPOSED BY A 4
COUNTY OR MUNICIPALITY FOR THE PURPOSE O F FINANCING THE CAPI TAL COSTS 5
OF ADDITIONAL OR EXP ANDED PUBLIC WORKS , IMPROVEMENTS, AND FACILITIES 6
REQUIRED TO ACCOMMODATE NEW CONSTRUCTION OR DEVELOPMENT. 7

(B) THIS SECTION APPLIES ONLY TO: 8

(1) BALTIMORE CITY; 9

(2) A COUNTY WITH A POPULATION OF AT LEAST 150,000 RESIDENTS, 10
NOT INCLUDING ANY RESIDENTS OF A MUNICIPALITY WITHIN THE COUNTY; AND 11

(3) A MUNICIPALITY. 12

(C) (1) A COUNTY OR MUNICIPALI TY MAY REQUIRE UP TO 50% OF THE 13
FULL PAYMENT OF A DE VELOPMENT EXCISE TAX OR DEVELOPMENT IMPAC T FEE 14
IMPOSED ON A RESIDENTIAL UNIT, INCLUDING A RESIDENTIAL UNIT THAT IS PAR T 15
OF A MIXED–USE PROJECT, AS A PRECONDITION FOR THE ISSUANCE OF A BUILDING 16
PERMIT. 17

(2) A COUNTY OR MUNICIPALI TY MAY REQUIRE THE R EMAINING OR 18
FULL PAYMENT OF A DE VELOPMENT EXCISE TAX OR DEVELOPMENT IMPAC T FEE 19
IMPOSED ON A RESIDENTIAL UNIT, INCLUDING A RESIDENTIAL UNIT THAT IS PAR T 20
OF A MIXED –USE PROJECT AS A PRE CONDITION BEFORE THE ISSUANCE OF A 21
CERTIFICATE OF OCCUPANCY, OCCUPANCY PERMIT, OR OTHER LOCAL EQUIVALENT 22
APPLICABLE TO THE RESIDENTIAL UNIT. 23

Article – Real Property 24

10–804. 25

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27

(2) “COMMUNITY DEVELOPMENT ORGANIZATION” HAS THE MEANING 28
STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 29

(3) “REAL ESTATE ENTERPRISE” MEANS A BUSINESS THAT: 30

20 SENATE BILL 267

(I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS; 1

(II) OWNS REAL PROPERTY, INCLUDING IN A TENAN CY BY THE 2
ENTIRETY; AND 3

(III) IS INVOLVED IN BUYING, SELLING, LEASING, OR MANAGING 4
REAL PROPERTY. 5

(B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED, 6
SINGLE–FAMILY RESIDENTIAL REAL PROPERTY. 7

(2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 8
FORECLOSE A MORTGAGE, A DEED OF TRUST, OR ANY OTHER LIEN. 9

(C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 10
SUBJECT TO THIS SECTION FOR SALE TO A THIRD PARTY, THE PERSON MAY ACCEPT 11
AN OFFER TO PURCHASE THE PROPERTY MADE ONLY BY: 12

(1) AN INDIVIDUAL; 13

(2) A COMMUNITY DEVELOPMENT ORGANIZATION; 14

(3) A NONPROFIT ORGANIZATION; OR 15

(4) A REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS 16
THAN 3% OF ALL RESIDENTIAL REAL PROPERTY LOCATED WITHIN THE COUNTY IN 17
WHICH THE PROPERTY IS LOCATED. 18

Article – Tax – Property 19

SUBTITLE 6. TRANSFER TAX ON TRANSFERS OF OWNER–OCCUPIED PROPERTIES. 20

13–601. 21

IN THIS SUBTITLE, “OWNER–OCCUPIED PROPERTY”: 22

(1) MEANS REAL P ROPERTY THAT IS USED AS THE PRIMARY 23
RESIDENCE BY THE OWNER OF THE REAL PROPERTY; 24

(2) INCLUDES A PROPERTY THAT IS ELIGIBLE FOR THE HOMESTEAD 25
PROPERTY TAX CREDIT AUTHORIZED UNDER § 9–105 OF THE TAX – PROPERTY 26
ARTICLE; AND 27

SENATE BILL 267 21

(3) DOES NOT INCLUDE REA L PROPERTY THAT IS RENTED OR HELD 1
FOR INVESTMENT PURPOSES. 2

13–602. 3

(A) (1) ON A FINDING BY A COU NTY THERE IS A SHORT FALL IN TOTAL 4
HOUSING UNITS OR A C LASS OF AFFORDABLE H OUSING UNITS THE COU NTY MAY 5
ESTABLISH, BY LOCAL LAW , A TAX ON THE TRANSFE R OF OWNER –OCCUPIED 6
PROPERTY IF FOLLOWIN G THE TRANSFER THE P ROPERTY IS NO LONGER 7
OWNER–OCCUPIED. 8

(2) THE TAX AUTHORIZED UN DER PARAGRAPH (1) OF THIS 9
SUBSECTION IS IN ADD ITION TO THE AUTHORI TY TO IMPOSE A TRANS FER TAX 10
AUTHORIZED UNDER THIS TITLE. 11

(3) THE RATE OF THE TAX AUTHORIZED UNDER PARAGRAPH (1) OF 12
THIS SUBSECTION MAY NOT EXCEED 5% OF THE CONSIDERATION PAYABLE FOR THE 13
TRANSFER. 14

(B) IF A TRANSFER OF A PR OPERTY RESULTS IN A PORTION OF THE 15
PROPERTY BEING OWNER–OCCUPIED AND A PORTION OF THE PROPERTY NOT BEING 16
OWNER–OCCUPIED, THE TAX APPLIES TO T HE CONSIDERATION PAI D FOR THE 17
PORTION OF THE PROPERTY THAT WILL NOT BE OWNER–OCCUPIED PROPERTY. 18

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
as follows: 20

Article – Tax – Property 21

6–202.1. 22

(A) The Mayor and City Council of Baltimore City or the governing body of a 23
county may establish, by law, a subclass of real property consisting of vacant lots or 24
improved property cited as vacant and unfit for habitation or other authorized use on a 25
housing or building violation notice. 26

(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 27
GOVERNING BODY OF A COUNTY MAY ESTABLISH , BY LAW , A SUBCLASS OF REAL 28
PROPERTY LOCATED IN A PRIORITY FUNDING A REA, AS DESIGNATED IN TITLE 5, 29
SUBTITLE 7B OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THAT 30
CONSISTS OF UNDEVELO PED, UNDERUTILIZED, OR VACANT LAND THAT IS ZONED 31
FOR RESIDENTIAL OR MIXED–USE DEVELOPMENT. 32

22 SENATE BILL 267

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

(I) DEFINE UNDEVELOPED , UNDERUTILIZED, AND VACANT 3
LAND; AND 4

(II) BE DESIGNED TO DISCO URAGE SPECULATIVE 5
LANDHOLDING AND PROM OTE TIMELY DEVELOPME NT CONSISTENT WITH T HE 6
LOCAL MASTER PLAN AND INFRASTRUCTURE SUPPORT. 7

(C) (1) IN THIS SUBSECTION , “PRINCIPAL RESIDENCE ” MEANS A 8
PROPERTY THAT AN IND IVIDUAL PRIMARILY RE SIDES IN AND IS THE ADDRESS 9
LISTED ON THE INDIVI DUAL’S VOTING CARD, DRIVER’S LICENSE, AND INCOME TAX 10
RETURN. 11

(2) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 12
GOVERNING BODY OF A COUNTY MAY ESTABLISH , BY LAW , A SUBCLASS OF REAL 13
PROPERTY THAT IS: 14

(I) RESIDENTIAL REAL PRO PERTY THAT IS NOT TH E OWNER’S 15
PRINCIPAL RESIDENCE; AND 16

(II) OWNED BY AN INDIVIDUAL OR ENTITY THAT OWNS AT LEAST 17
20 RESIDENTIAL REAL PROPERTIES WITHIN BALTIMORE CITY OR THE COUNTY. 18

(3) A LOCAL LAW THAT ESTAB LISHES A SUBCLASS OF REAL 19
PROPERTY UNDER PARAGRAPH (2) OF THIS SUBSECTION M AY NOT INCLUDE REAL 20
PROPERTY THAT IS: 21

(I) ACTIVELY RENTED AT A FFORDABLE HOUSING RA TES AS 22
DEFINED BY THE LOCAL LAW; OR 23

(II) SUBJECT TO HOUSING A FFORDABILITY COVENAN TS OR 24
SUBSIDIES. 25

6–302. 26

(a) Except as otherwise provided in this section and after complying with § 6–305 27
of this subtitle, in each year after the date of finality and before the following June 20, the 28
Mayor and City Council of Baltimore City or the governing body of each county annually 29
shall set the tax rate for the next taxable year on all assessments of property subject to that 30
county’s property tax. 31

SENATE BILL 267 23

(b) (1) Except as provided in [subsection (c)] SUBSECTIONS (C), (E), AND (F) 1
of this section and §§ 6–305 and 6–306 of this subtitle: 2

(i) there shall be a single county property tax rate for all real 3
property subject to county property tax except for operating real property described in § 4
8–109(c) of this article; and 5

(ii) the county tax rate applicable to personal property and the 6
operating real property described in § 8 –109(c) of this article shall be no more than 2.5 7
times the rate for real property. 8

(2) Paragraph (1) of this subsection does not affect a special rate prevailing 9
in a taxing district or part of a county. 10

(c) (1) The Mayor and City Council of Baltimore City or the governing body of 11
a county may set a special rate for a vacant lot or improved property cited as vacant and 12
unfit for habitation or other authorized use on a housing or building violation notice. 13

(2) On or before December 1 each year, the Mayor and City Council of 14
Baltimore City or the governing body of a county that enacts a special rate under paragraph 15
(1) of thi s subsection shall report to the Department of Housing and Community 16
Development and, in accordance with § 2 –1257 of the State Government Article, to the 17
General Assembly on: 18

(i) the special rate set under paragraph (1) of this subsection; 19

(ii) the number of properties to which the special rate applies; 20

(iii) the revenue change resulting from the special rate; 21

(iv) the use of the revenue from the special rate; and 22

(v) whether properties subject to the special rate are viable for 23
adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, 24
and plans to convert viable properties. 25

(d) The Mayor and City Council of Baltimore City may, by law, impose on real 26
property that would otherwise be exempt from property tax under § 7 –202 or § 7 –204 of 27
this article the general property tax rate set under subsection (b)(1)(i) of this section and 28
the special rate authorized under subsection (c)(1) of this section if the real property is: 29

(1) a vacant lot; or 30

(2) improved property cited as vacant and unfit for habitation or other 31
authorized use on a housing or building violation notice. 32

24 SENATE BILL 267

(E) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 1
GOVERNING BODY OF A COUNTY MAY SET A SPE CIAL RATE FOR REAL P ROPERTY 2
LOCATED IN A PRIORITY FUNDING AREA, AS DESIGNATED IN TITLE 5, SUBTITLE 7B 3
OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THAT CONSISTS OF 4
UNDEVELOPED, UNDERUTILIZED, OR VACANT LAND THAT IS ZONED FOR 5
RESIDENTIAL OR MIXED–USE DEVELOPMENT. 6

(2) THE REVENUE FROM THE SPECIAL RATE AUTHORI ZED UNDER 7
PARAGRAPH (1) OF THIS SUBSECTION M AY BE USED ONLY FOR AFFORDABLE 8
HOUSING PROGRAMS, SCHOOL CONSTRUCTION, AND PURPOSES DIRECTLY RELATED 9
TO FACILITATING HOUSING CONSTRUCTION. 10

(F) (1) IN THIS SUBSECTION , “PRINCIPAL RESIDENCE ” MEANS A 11
PROPERTY THAT AN IND IVIDUAL PRIMARILY RE SIDES IN AND IS THE ADDRESS 12
LISTED ON THE INDIVI DUAL’S VOTING CARD, DRIVER’S LICENSE, AND INCOME TAX 13
RETURN. 14

(2) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 15
GOVERNING BODY OF A COUNTY MAY SET A SPE CIAL RATE FOR REAL PR OPERTY 16
THAT IS: 17

(I) RESIDENTIAL REAL PRO PERTY THAT IS NOT TH E OWNER’S 18
PRINCIPAL RESIDENCE; AND 19

(II) OWNED BY AN INDIVIDUAL OR ENTITY THAT OWNS AT LEAST 20
20 RESIDENTIAL REAL PROPERTIES WITHIN BALTIMORE CITY OR THE COUNTY. 21

(3) THE REVENUE FROM THE SPECIAL RATE AUTHORI ZED UNDER 22
PARAGRAPH (2) OF THIS SUBSECTION M AY BE USED ONLY FOR AFFORDABLE 23
HOUSING PROGRAMS, SCHOOL CONSTRUCTION, AND PURPOSES DIRECTLY RELATED 24
TO FACILITATING HOUSING CONSTRUCTION. 25

SECTION 3. AND BE IT FURTHER ENACTED, That: 26

(a) On or before December 31, 2027, the Comptroller, in consultation with the 27
State Department of Assessments and Taxation, shall evaluate and report to the Governor 28
and, in accordance with § 2–1257 of the State Government Article, the General Assembly, 29
on changes to State–level tax policies to reduce the disincentives to homeowners, including 30
older adults and families, to downsize or transition to smaller and more affordable homes. 31

(b) The report required under subsection (a) of this section shall: 32

(1) include recommendations regarding capital gains taxation and tax 33
deferrals or exemptions; and 34
SENATE BILL 267 25

(2) consider the impact of property tax reassessment practices and housing 1
turnover rates. 2

SECTION 4. AND BE IT FURTHER ENACTED, That: 3

(a) (1) The Department of Planning shall conduct a study and publish a 4
comprehensive report on housing infrastructure to assess how existing and planned 5
infrastructure systems support or constrain housing development across the State. 6

(2) The comprehensive report on housing infrastructure shall be organized 7
into the following four primary parts: 8

(i) water and sewer infrastructure; 9

(ii) school facility capacity; 10

(iii) transportation infrastructure; and 11

(iv) policy recommendations. 12

(b) (1) The water and sewer infrastructure part of the report shall: 13

(i) evaluate the interrelationship between current and projected 14
housing development patterns and the availability, condition, and capacity of water and 15
wastewater infrastructure; and 16

(ii) include an analysis of: 17

1. existing public water and sewer service areas, including 18
coverage gaps; 19

2. capacity constraints of wastewater treatment plants; 20

3. the availability and sustainability of private wells; 21

4. the use and environmental impact of septic systems; and 22

5. the age, condition, and maintenance needs of water and 23
sewer infrastructure. 24

(2) The Department of Planning shall consult and coordinate with the 25
following entities in developing the water and sewer infrastructure part of the report: 26

(i) the Department of Environment; 27

(ii) the Maryland Department of Health; 28
26 SENATE BILL 267

(iii) the Department of Housing and Community Development; 1

(iv) the Maryland Municipal League; 2

(v) the Maryland Association of Counties; 3

(vi) the Maryland Building Industry Association; 4

(vii) the Maryland Association of Housing and Community 5
Development Agencies; 6

(viii) the Maryland Association of Municipal Wastewater Agencies; 7
and 8

(ix) the Washington Suburban Sanitary Commission. 9

(c) (1) The school facility capacity part of the report shall: 10

(i) assess the impact of housing development on public school 11
capacity across jurisdictions, including the ability of local education systems to 12
accommodate projected student enrollment growth associated with new housing; and 13

(ii) include an analysis of: 14

1. local and regional school facility utilization and capacity; 15

2. enrollment projections linked to housing development 16
trends; 17

3. State and local school construction funding processes; and 18

4. the adequacy of current school capacity assessment 19
methods. 20

(2) The Department of Planning shall consult and coordinate with the 21
following entities in developing the school facility capacity part of the report: 22

(i) the Interagency Commission on School Construction; 23

(ii) the State Department of Education; 24

(iii) the Public School Superintendents’ Association of Maryland; 25

(iv) the Maryland Association of Board of Education; and 26

(v) the Maryland Association of Counties. 27
SENATE BILL 267 27

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

(i) analyze how access to safe, reliable, and efficient transportation 2
infrastructure influences housing development; and 3

(ii) include an analysis of: 4

1. the capacity and condition of existing road networks and 5
transit services; 6

2. the accessibility of new and proposed housing to major 7
employment centers; 8

3. transportation infrastructure needs related to infill and 9
greenfield development; and 10

4. opportunities for multimodal connectivity, including 11
walking, biking, and public transit. 12

(2) The Department of Planning shall consult and coordinate with the 13
following entities in developing the transportation infrastructure part of the report: 14

(i) the Department of Transportation; 15

(ii) the Maryland Association of Counties; 16

(iii) the Maryland Municipal League; and 17

(iv) the Maryland Building Industry Association. 18

(e) (1) The policy recommendations part of the report shall outline actionable 19
recommendations, based on findings in parts one, two, and three of the comprehensive 20
report on housing infrastructure, for State and local governments to support housing 21
development. 22

(2) The recommendations required under paragr aph (1) of this subsection 23
shall: 24

(i) identify legislative, regulatory, or budgetary changes to better 25
integrate housing and infrastructure planning; 26

(ii) suggest improvements to coordination mechanisms among State 27
agencies and local governments; 28

(iii) propose incentives and funding strategies to encourage 29
infrastructure investment in priority housing areas; and 30
28 SENATE BILL 267

(iv) highlight best practices for State agencies and local 1
governments. 2

(f) On or before December 31, 2027, the Department of Pla nning shall publish 3
the comprehensive report on housing infrastructure on its website and provide copies to the 4
Governor and, in accordance with § 2 –1257 of the State Government Article, the General 5
Assembly. 6

SECTION 5. AND BE IT FURTHER ENACTED, That: 7

(a) In this section, “qualified affordable housing project” has the meaning stated 8
in § 12–401 of the Land Use Article as enacted by Section 1 of this Act. 9

(b) The following State departments shall conduct a comprehensive internal 10
review of any existing process, procedure, regulation, policy, or approval requirement under 11
the department’s jurisdiction that impacts the permitting, review, funding, or development 12
of housing in the State: 13

(1) the Department of Agriculture; 14

(2) the Department of the Environment; 15

(3) the Maryland Department of Health; 16

(4) the Department of Housing and Community Development; 17

(5) the Maryland Department of Labor; 18

(6) the Department of Natural Resources; 19

(7) the Department of Planning; and 20

(8) the Department of Transportation. 21

(c) (1) A comprehensive internal review for each department required under 22
subsection (b) of this section shall: 23

(i) evaluate the department’s review periods and identify instances 24
where the department consistently utili zes the maximum statutory or regulatory review 25
period and recommend bifurcated review periods to expedite approvals for simple or 26
low–risk housing projects; 27

(ii) evaluate the interpretation of laws, regulations, or other 28
standards that unnecessarily restrict housing projects and identify opportunities to provide 29
greater flexibility or alternative compliance mechanisms for existing interpretations of 30
laws, regulations, or other standards that unnecessarily restrict housing projects; 31
SENATE BILL 267 29

(iii) identify a nd evaluate overlapping or duplicative review 1
processes including the necessity of a review process where public infrastructure currently 2
services the housing project; 3

(iv) evaluate opportunities for permit coordination and joint 4
applications to improve coordination across departments and local governments including 5
coordination between the Department of the Environment, the Maryland Department of 6
Health, the Department of Natural Resources, and local governments for the review of 7
permits related to wetlands and stormwater management; 8

(v) identify and evaluate tailored, streamlined, or alternative 9
requirements for qualified affordable housing projects particularly in priority funding areas 10
and for projects that involve infill, redevelopment, or affordable housing; 11

(vi) identify opportunities to delegate project review responsibilities 12
performed by State entities to local governments; 13

(vii) identify technical barriers to housing projects that unnecessarily 14
delay housing projects and recommend alternatives; 15

(viii) identify State policies that prevent the funding or approval of 16
desirable housing types and recommend alternatives; and 17

(ix) recommend updates to streamline or provide flexibility in the 18
application of regulations related to critical areas and forest conservation requirements to 19
housing development and qualified affordable housing projects; 20

(2) The Maryland Department of Labor shall include in the Department’s 21
comprehensive internal review a review of all building code requirements including energy 22
efficiency requirements, fire sprinkler or suppression mandates, and building performance 23
standards, and recommend requirements that should be modified, streamlined, or 24
suspended. 25

(d) (1) Departments required to conduct a comprehe nsive internal review 26
under this section shall, to the extent practicable, coordinate with other departments to 27
align reforms and reduce redundant reviews. 28

(2) Departments with overlapping or similar responsibilities, including the 29
Department of the Environment, the Maryland Department of Health, the Department of 30
Natural Resources, and the State Department of Transportation, shall jointly identify 31
options to consolidate or parallel track the departments’ reviews. 32

(e) (1) On or before December 31, 2 026, each department required to prepare 33
a comprehensive internal review under subsection (b) of this section shall submit an 34
interim report to the Governor and, in accordance with § 2 –1257 of the State Government 35
Article, the General Assembly, that includes: 36
30 SENATE BILL 267

(i) a list of the department’s policies and procedures that have been 1
reviewed; 2

(ii) a summary of the delays or inefficiencies identified; 3

(iii) recommended statutory, regulatory, or procedural reforms; 4

(iv) a timeline for implementation of any internal reforms; and 5

(v) any legislative or budgetary requests necessary to implement 6
any reforms. 7

(2) (i) On or before July 1, 2027, each department required to prepare 8
a comprehensive internal review under subsection (b) of this section shall submit a final 9
report on the comprehensive internal review to the Department of Planning. 10

(ii) On or before December 31, 2027, the Department of Planning 11
shall compile the final reports submitted under subparagraph (i) of this paragraph and 12
submit the compiled consolidated report to the Governor and, in accordance with § 2–1257 13
of the State Government Article, the General Assembly. 14

(iii) The Department of Planning shall make the consolidated report 15
publicly available. 16

SECTION 6. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 17
the application of any provision of this Act to any person or circumstance is held invalid for 18
any reason in a court of competent jurisdiction, the invalidity does not affect other 19
provisions or any other application of this Act that can be given effect without the invalid 20
provision or application, and for this purpose the provisions of this Act are declared 21
severable. 22

SECTION 7. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 23
applicable to all taxable years beginning after June 30, 2026. 24

SECTION 8. 2. AND BE IT FURTHER ENACTED, That Sections 1, 3, 4, 5, 6, and 7 25
of this Act shall take effect October 1, 2026. 26

SECTION 9. AND BE IT FURTHER ENACTED, That, except as provided in Section 27
8 of this Act, this Act shall take effect June 1, 2026. 28