Fair Housing and Housing Discrimination - Regulations and Discriminatory Effect

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.
*sb0274*

SENATE BILL 274
D5, C9 6lr1284
CF HB 573
By: Senator Sydnor
Introduced and read first time: January 19, 2026
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 3, 2026

CHAPTER ______

AN ACT concerning 1

Fair Housing and Housing Discrimination – Regulations, Intent, and 2
Discriminatory Effect 3

FOR the purpose of authorizing the Department of Housing and Community Development 4
to adopt certain regulations related to affirmatively furthering fair housing; 5
providing that certain discriminatory housing practices may be committed without 6
intent; prohibiting a person from acting in a certain manner that has a 7
discriminatory effect; providing that certain conduct does not constitute a certain 8
violation; and generally relating to fair housing and discriminatory housing 9
practices. 10

BY repealing and reenacting, with amendments, 11
Article – Housing and Community Development 12
Section 2–402 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, without amendments, 16
Article – State Government 17
Section 20–101(a), (b), and (d), 20–701(a), 20–1020, 20–1035, 20–1040, and 20–1041 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – State Government 22
2 SENATE BILL 274

Section 20–701(b–1) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, with amendments, 4
Article – State Government 5
Section 20–702 and 20–705 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2025 Supplement) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYL AND, 9
That the Laws of Maryland read as follows: 10

Article – Housing and Community Development 11

2–402. 12

(a) The Department: 13

(1) shall administer its programs and activities related to housing and 14
community development to affirmatively further fair housing; 15

(2) shall explore ways to ensure it is collaborating with and supporting 16
nonprofit and governmental entities devoted to furthering fair housing; and 17

(3) may not take any action that is materially inconsistent with the 18
obligation to affirmatively further fair housing. 19

(b) (1) The Department shall require political subdivisions and housing 20
authorities to affirmatively further fair housing. 21

(2) To ensure that political subdivisions and housing authorities 22
affirmatively further fair housing, the Department shall, in accordance with § 3–114(d)(2) 23
of the Land Use Article, require a political subdivision or housing authority to submit an 24
assessment of fair housing to the Department as part of the housing element of a 25
comprehensive plan. 26

(c) This section does not: 27

(1) require a political subdivision or housing authority to take a specific 28
action to affirmatively further fair housing; or 29

(2) prohibit a political subdivision or housing authority from taking a 30
specific action to affirmatively further fair housing. 31

(D) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 32
SECTION. 33
SENATE BILL 274 3

Article – State Government 1

20–101. 2

(a) In Subtitles 1 through 11 of this title the following words have the meanings 3
indicated. 4

(b) “Commission” means the Commission on Civil Rights. 5

(d) “Discriminatory act” means an act prohibited under: 6

(1) Subtitle 3 of this title (Discrimination in Places of Public 7
Accommodation); 8

(2) Subtitle 4 of this title (Discrimination by Persons Licensed or Regulated 9
by Maryland Department of Labor); 10

(3) Subtitle 5 of this title (Discrimination in Leasing of Commercial 11
Property); 12

(4) Subtitle 6 of this title (Discrimination in Employment); 13

(5) Subtitle 7 of this title (Discrimination in Housing); or 14

(6) Subtitle 8 of this title (Aiding, Abetting, or Attempting Discriminatory 15
Act; Obstructing Compliance). 16

20–701. 17

(a) In this subtitle the following words have the meanings indicated. 18

(B–1) “DISCRIMINATORY EFFECT ” MEANS AN EFFECT THAT ACTUALLY OR 19
PREDICTABLY HAS A DISPARATE IMPAC T ON A GROUP OF PERS ONS OR CREATES, 20
INCREASES, REINFORCES, OR PERPETUATES SEGRE GATED HOUSING PATTER NS 21
BECAUSE OF RACE, COLOR, RELIGION, SEX, DISABILITY, MARITAL STATUS, FAMILIAL 22
STATUS, SEXUAL ORIENTATION, GENDER IDENTITY, NATIONAL ORIGIN, SOURCE OF 23
INCOME, OR MILITARY STATUS. 24

20–702. 25

(a) It is the policy of the State: 26

(1) to provide for fair housing throughout the State to all, regardless of 27
race, color, religion, sex, familial status, national origin, marital status, sexual orientation, 28
gender identity, disability, source of income, or military status; and 29
4 SENATE BILL 274

(2) to that end, to prohibit discriminatory practices OR ACTS THAT HAVE 1
A DISCRIMINATORY EFF ECT, REGARDLESS OF INTENT , with respect to residential 2
housing by any person, in order to protect and ensure the peace, health, safety, prosperity, 3
and general welfare of all. 4

(b) This subtitle: 5

(1) is an exercise of the police power of the State for the protection of the 6
people of the State; and 7

(2) shall be administered and enforced by the Commission and, as provided 8
in this title, enforced by the appropriate State court. 9

20–705. 10

(A) Except as provided in SUBSECTION (B) OF THIS SECTION AND §§ 20–703 11
and 20–704 of this subtitle, a person may not, REGARDLESS OF INTENT: 12

(1) refuse to sell or rent after the making of a bona fide offer, refuse to 13
negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling to any 14
person because of race, color, religion, sex, disability, marital status, familial status, sexual 15
orientation, gender identity, national origin, source of income, or military status; 16

(2) discriminate against any person in the terms, conditions, or privileges 17
of the sale or rental of a dwelling, or in the provision of services or facilities in connection 18
with the sale or rental of a dwelling, because of race, color, religion, sex, disability, marital 19
status, familial status, sexual orientation, gender identity, national origin, source of 20
income, or military status; 21

(3) make, print, or publish, or cause to be made, printed, or published, any 22
notice, statement, or advertisement with respect to the sale or rental of a dwelling that 23
indicates any preference, limitation, or discrimination based on race, color, religion, sex, 24
disability, marital status, familial status, sexual orientation, gender identity, national 25
origin, source of income, or military status, or an intention to make any preference, 26
limitation, or discrimination; 27

(4) represent to any person, because of race, color, religion, s ex, disability, 28
marital status, familial status, sexual orientation, gender identity, national origin, source 29
of income, or military status, that any dwelling is not available for inspection, sale, or rental 30
when the dwelling is available; [or] 31

(5) for profit, induce or attempt to induce any person to sell or rent any 32
dwelling by representations regarding the entry or prospective entry into the neighborhood 33
of a person of a particular race, color, religion, sex, disability, marital status, familial status, 34
sexual orientation, gender identity, national origin, source of income, or military status; OR 35
SENATE BILL 274 5

(6) ACT IN A MANNER THAT HAS A DISCRIMINATORY EFFECT. 1

(B) A PERSON HAS NOT VIOLA TED A PROHIBITION IN SUBSECTION (A) OF 2
THIS SECTION IF: 3

(1) THE ACTION WAS WITHOUT DISCRIMINATORY INTENT; 4

(2) THE ACTION WAS NECES SARY TO ACHIEVE ONE OR MORE 5
SUBSTANTIAL, LEGITIMATE, AND OR NONDISCRIMINATORY INTERESTS; AND 6

(3) THE PERSON COULD NOT HAVE ACHIEVED THE SU BSTANTIAL, 7
LEGITIMATE, AND OR NONDISCRIMINATORY INTERESTS BY LESS DISC RIMINATORY 8
MEANS. 9

20–1020. 10

(a) In this part the following words have the meanings indicated. 11

(b) “Aggrieved person” means any person that claims to have been injured by a 12
discriminatory housing practice. 13

(c) “Conciliation” means the attempted resolution of issues raised by a complaint, 14
or by the investigation of a complaint, through informal negotiations involving the 15
aggrieved person, the respondent, and the Commission. 16

(d) “Conciliation agreement” means a written agreement between the respondent 17
and the complainant setting forth the resolution of the issues in conciliation. 18

(e) “Discriminatory housing practice” means an act that is prohibited under § 19
20–705, § 20–706, § 20–707, or § 20–708 of this title. 20

(f) “Prevailing party” has the meaning as judicially determined under 42 U.S.C. 21
§ 1988. 22

20–1035. 23

(a) In accordance with this section, an aggrieved person may commence a civil 24
action in an appropriate State court to obtain appropriate relief for an al leged 25
discriminatory housing practice or the breach of a conciliation agreement entered into 26
under this part. 27

(b) (1) The action shall be filed within 2 years after the later of the occurrence 28
or termination of the alleged discriminatory housing practice or the breach of the 29
conciliation agreement. 30

6 SENATE BILL 274

(2) (i) Except as provided in subparagraph (ii) of this paragraph, the 1
computation of the 2–year period does not include any time during which an administrative 2
proceeding under this part was pending for a c omplaint or charge based on the alleged 3
discriminatory housing practice. 4

(ii) Subparagraph (i) of this paragraph does not apply to an action 5
arising from a breach of a conciliation agreement. 6

(3) Except as provided in subsection (c) of this section, an aggrieved person 7
may commence a civil action under this section: 8

(i) not sooner than 130 days after a complaint has been filed under 9
§ 20–1021 of this subtitle; and 10

(ii) regardless of the status of any complaint. 11

(c) (1) If the Commission or a State or local unit has obtained a conciliation 12
agreement with the consent of an aggrieved person, the aggrieved person may not file an 13
action under this section for the alleged discriminatory housing practice that forms the 14
basis for the complaint, exce pt for the purpose of enforcing the terms of the conciliation 15
agreement. 16

(2) An aggrieved person may not commence a civil action under this section 17
with respect to an alleged discriminatory housing practice that forms the basis of a charge 18
issued by the Commission, if an administrative law judge has commenced a hearing on the 19
record under this part with respect to the charge. 20

(d) On application by a person alleging a discriminatory housing practice or a 21
person against whom a discriminatory housing practice is alleged, the court may: 22

(1) appoint an attorney for the person; or 23

(2) if, in the opinion of the court, the person is financially unable to bear 24
the costs of the action, authorize the commencement or continuation of a civil action under 25
subsection (a) of this section without the payment of fees, costs, or security. 26

(e) (1) In a civil action under this section, if the court finds that a 27
discriminatory housing practice has occurred, the court may: 28

(i) award to the plaintiff actual and punitive damages; and 29

(ii) subject to subsection (f) of this section, grant as relief, as the 30
court considers appropriate, any permanent or temporary injunction, temporary 31
restraining order, or other order, including an order enjoining the defendant from engaging 32
in the practice or ordering affirmative action. 33

SENATE BILL 274 7

(2) In a civil action under this section, the court may allow the prevailing 1
party reasonable attorney’s fees and costs. 2

(f) Relief granted under this section may not affect any contract, sal e, 3
encumbrance, or lease consummated before the granting of relief and involving a bona fide 4
purchaser, encumbrancer, or tenant without actual notice of the filing of a complaint with 5
the Commission or civil action under this part. 6

(g) If the Commission certifies that the case is of general public importance and 7
on timely application, the Commission may: 8

(1) intervene in a civil action brought under this section; and 9

(2) obtain any relief that would be available to the Commission under § 10
20–1036(c) of this subtitle. 11

20–1040. 12

(a) In this part the following words have the meanings indicated. 13

(b) “Attorney General” means the Attorney General and the Office of the Attorney 14
General. 15

(c) (1) “Civil rights violation” means an act of discrimination prohibited under 16
the U.S. Constitution, the Maryland Constitution, or State or federal law. 17

(2) “Civil rights violation” includes a discriminatory act as defined in § 18
20–101 of this title. 19

20–1041. 20

(a) The Attorney General may investigate, prosecute, and remediate, on behalf of 21
the residents of the State, any conduct that constitutes a civil rights violation. 22

(b) The Attorney General may not bring a civil rights action under this part: 23

(1) on behalf of an individual; 24

(2) against a political subdivision; 25

(3) against any unit of State or local government established by law; or 26

(4) against any employee or agent of an entity identified in item (2) or (3) 27
of this subsection who is acting under the color of law. 28

(c) Nothing in this part may be interpreted to impair the rights and powers of the 29
Commission under Subtitles 1 through 11 of this title. 30
8 SENATE BILL 274

SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 1
Assembly that this Act: 2

(1) be construed to be consistent with: 3

(ii) the analysis and holding of the U.S. Supreme Court in Texas 4
Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., 576 5
U.S. 519 (2015); and 6

(ii) 78 FR 11460 and 24 CFR 100.500 of the Federal Register; and 7

(2) not be construed to abrogate the holding of the Supreme Court of 8
Maryland in Hare v. David S. Brown Enterprises, Ltd., 491 Md. 653 (2025). 9

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2026. 11

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