Land Use - Permitting - Development Rights (Maryland Housing Certainty 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.
Italics indicate opposite chamber/conference committee amendments.
*sb0325*

SENATE BILL 325
C9, L6 (6lr1437)
ENROLLED BILL
— Education, Energy, and the Environment/Economic Matters —
Introduced by Senator Augustine

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at __ ______________________ o’clock, ________M.

______________________________________________
President.

CHAPTER ______

AN ACT concerning 1

Land Use – Permitting – Development Rights 2
(Maryland Housing Certainty Act) 3

FOR the purpose of requiring the approval of a housing development project application by 4
a local regulatory authority or the Maryland –National Capital Park and Planning 5
Commission to be governed only by certain laws and regulations in effect at the time 6
of submission of a substantially complete application; granting the proponent of an 7
approved housing development project certain vested rights related to use and 8
development for a certain time period; prohibiting the collection of certain 9
development excise taxes and development impact fees before a housing development 10
project is completed, subject to a certain exception certain exceptions; and generally 11
relating to housing development and land use. 12

BY repealing and reenacting, with amendments, 13
Article – Land Use 14
2 SENATE BILL 325

Section 1–401 and 10–103 1
Annotated Code of Maryland 2
(2012 Volume and 2025 Supplement) 3

BY adding to 4
Article – Land Use 5
Section 12 –101 through 12 –301 to be under the new title “Title 12. Maryland 6
Housing Certainty Act” 7
Annotated Code of Maryland 8
(2012 Volume and 2025 Supplement) 9

BY adding to 10
Article – Local Government 11
Section 20–128 12
Annotated Code of Maryland 13
(2013 Volume and 2025 Supplement) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Land Use 17

1–401. 18

(a) Except as provided in this section, this division does not apply to charter 19
counties. 20

(b) The following provisions of this division apply to a charter county: 21

(1) this subtitle, including Parts II and III (Charter county – 22
Comprehensive plans); 23

(2) § 1–101(l), (m), and (o) (Definitions – “Plan”, “Priority funding area”, 24
and “Sensitive area”); 25

(3) § 1–201 (Visions); 26

(4) § 1–206 (Required education); 27

(5) § 1–207 (Annual report – In general); 28

(6) § 1–208 (Annual report – Measures and indicators); 29

(7) Title 1, Subtitle 3 (Consistency); 30

(8) Title 1, Subtitle 5 (Growth Tiers); 31

SENATE BILL 325 3

(9) § 4–104(c) (Limitations – Bicycle parking); 1

(10) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 2

(11) § 4–208 (Exceptions – Maryland Accessibility Code); 3

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

(13) § 4–211 (Change in zoning classification – Energy generating systems); 5

(14) § 4–212 (Agritourism); 6

(15) § 4–213 (Alcohol production); 7

(16) § 4–214 (Agricultural alcohol production); 8

(17) § 4–215 (Pollinator–friendly vegetation management); 9

(18) § 4–216 (Limitations – Family child care homes and large family child 10
care homes); 11

(19) Title 4, Subtitle 5 (Accessory Dwelling Units); 12

(20) § 5–102(d) (Subdivision regulations – Burial sites); 13

(21) § 5–104 (Major subdivision – Review); 14

(22) Title 7, Subtitle 1 (Development Mechanisms); 15

(23) Title 7, Subtitle 2 (Transfer of Development Rights); 16

(24) except in Montgomery County or Prince George’s County, Title 7, 17
Subtitle 3 (Development Rights and Responsibilities Agreements); 18

(25) Title 7, Subtitle 4 (Inclusionary Zoning); 19

(26) Title 7, Subtitle 5 (Housing Expansion and Affordability); 20

(27) § 8–401 (Conversion of overhead facilities); 21

(28) for Baltimore County only, Title 9, Subtitle 3 (Single –County 22
Provisions – Baltimore County); 23

(29) for Frederick County only, Title 9, Subtitle 10 (Single –County 24
Provisions – Frederick County); 25

4 SENATE BILL 325

(30) for Howard County only, Ti tle 9, Subtitle 13 (Single –County 1
Provisions – Howard County); 2

(31) for Talbot County only, Title 9, Subtitle 18 (Single –County 3
Provisions – Talbot County); [and] 4

(32) Title 11, Subtitle 2 (Civil Penalty); AND 5

(33) TITLE 12 (MARYLAND HOUSING CERTAINTY ACT). 6

(c) This section supersedes any inconsistent provision of Division II of this article. 7

10–103. 8

(a) Except as provided in this section, this division does not apply to Baltimore 9
City. 10

(b) The following provisions of this division apply to Baltimore City: 11

(1) this title; 12

(2) § 1–101(m) (Definitions – “Priority funding area”); 13

(3) § 1–101(o) (Definitions – “Sensitive area”); 14

(4) § 1–201 (Visions); 15

(5) § 1–206 (Required education); 16

(6) § 1–207 (Annual report – In general); 17

(7) § 1–208 (Annual report – Measures and indicators); 18

(8) Title 1, Subtitle 3 (Consistency); 19

(9) Title 1, Subtitle 4, Parts II and III (Home Rule Counties – 20
Comprehensive Plans; Implementation); 21

(10) § 4–104(c) (Limitations – Bicycle parking); 22

(11) § 4–104(d) (Limitations – Manufactured homes and modular dwellings); 23

(12) § 4–205 (Administrative adjustments); 24

(13) § 4–208 (Exceptions – Maryland Accessibility Code); 25

SENATE BILL 325 5

(14) § 4–210 (Permits and variances – Solar panels); 1

(15) § 4–211 (Change in zoning classification – Energy generating systems); 2

(16) § 4–215 (Pollinator–friendly vegetation management); 3

(17) § 4–216 (Limitations – Family child care homes and large family child 4
care homes); 5

(18) Title 4, Subtitle 5 (Accessory Dwelling Units); 6

(19) § 5–102(d) (Subdivision regulations – Burial sites); 7

(20) Title 7, Subtitle 1 (Development Mechanisms); 8

(21) Title 7, Subtitle 2 (Transfer of Development Rights); 9

(22) Title 7, Subtitle 3 (Development Rights and Responsibilities 10
Agreements); 11

(23) Title 7, Subtitle 4 (Inclusionary Zoning); 12

(24) Title 7, Subtitle 5 (Housing Expansion and Affordability); [and] 13

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

(26) TITLE 12 (MARYLAND HOUSING CERTAINTY ACT). 15

TITLE 12. MARYLAND HOUSING CERTAINTY ACT. 16

SUBTITLE 1. GENERAL PROVISIONS. 17

12–101. 18

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 19
INDICATED. 20

(B) “COMMISSION” MEANS THE MARYLAND–NATIONAL CAPITAL PARK AND 21
PLANNING COMMISSION. 22

(C) “COMPLETE AP PLICATION” MEANS A HOUSING DEVE LOPMENT 23
PROJECT APPLICATION THAT INCLUDES ALL MA TERIALS AND INFORMAT ION 24
REQUIRED FOR PROCESS ING AND SUBSTANTIVE REVIEW AS DETERMINED BY THE 25
COMMISSION OR THE LOC AL REGULATORY AUTHOR ITY, BUT MAY CONTAIN 26
6 SENATE BILL 325

NONSUBSTANTIVE ERROR S, OMISSIONS, OR SIMILAR INCONSEQU ENTIAL 1
DEFICIENCIES. 2

(D) “HOUSING CONSTRUCTION PERMIT” MEANS A BUILDING PER MIT 3
REQUIRED BY A LOCAL REGULATORY AUTHORITY OR THE COMMISSION TO 4
COMMENCE OR CONTINUE THE CONSTRUCTION , SUBSTANTIAL RENOVATI ON, OR 5
IMPROVEMENT OF RESIDENTIAL REAL ESTATE. 6

(D) (E) “HOUSING DEVELOPMENT P ROJECT” MEANS THE NEW 7
CONSTRUCTION OR SUBS TANTIAL RENOVATION O F A RESIDENTIAL REAL ESTATE 8
PROJECT. 9

(E) (F) “HOUSING DEVELOPMENT P ROJECT APPLICATION ” MEANS AN 10
APPLICATION FOR A BU ILDING PERMIT , CERTIFICATION, AUTHORIZATION, SITE 11
PLAN APPROVAL , SUBDIVISION APPROVAL , CONCEPTUAL PLAN , OR ANY OTHER 12
DETERMINATION BY A L OCAL REGULATORY AUTH ORITY OR THE COMMISSION 13
RELATING TO A HOUSING DEVELOPMENT PROJECT THAT HAS BEEN SUBMITTED TO 14
A LOCAL REGULATORY A UTHORITY OR THE COMMISSION IN COMPLIA NCE WITH 15
APPLICABLE REQUIREMENTS. 16

(F) (G) “LOCAL REGULATORY AUTHORITY” MEANS: 17

(1) THE GOVERNING BODY OF A LOCAL JURISDICTION; OR 18

(2) A DEPARTMENT , BOARD, COMMISSION, OR OTHER ENTITY OF A 19
LOCAL JURISDICTION R ESPONSIBLE FOR PROCESSING OR APPROVING AN 20
APPLICATION FOR A HOUSING CONSTRUCTION PERMIT. 21

(H) “PHASE” MEANS A DISCRETE , PLANNED PORTION OF A LARGER 22
HOUSING DEVELOPMENT PROJECT THAT: 23

(1) IS CONSTRUCTED INDEPENDENTLY OF AND SEQUENTIALLY WITH 24
OTHER PORTIONS OF THE PROJECT; 25

(2) INCLUDES 25 OR MORE HOUSING UNITS; AND 26

(3) INCLUDES ANY IMPROVE MENTS NECESSARY TO F UNCTION 27
INDEPENDENTLY FROM THE OTHER PORTIONS OF THE PROJECT. 28

(G) (I) “PHASED DEVELOPMENT PL AN” MEANS A SUBDIVISION OR SITE 29
PLAN IN WHICH THE APPLICANT PROPOSES TO DEVELOP A PROPERTY IN 2 OR MORE 30
INDIVIDUAL PHASES OVER A PERIOD OF TIME. 31

SENATE BILL 325 7

(H) “SUBSTANTIALLY COMPLET E APPLICATION ” MEANS A HOUSING 1
DEVELOPMENT PROJECT APPLICATION THAT SATISFIES A SUBSTANTIAL MAJORITY 2
OF THE APPLICATION R EQUIREMENTS, BUT MAY CONTAIN NONSUBST ANTIVE 3
ERRORS, OMISSIONS, OR SIMILAR INCONSEQUENTIAL DEFICIENCIES. 4

SUBTITLE 2. LOCAL REGULATORY PROCEDURES. 5

12–201. 6

(A) (1) SUBJECT TO THE PROVIS IONS OF THIS SUBSECT ION, THE 7
APPROVAL, CONDITIONAL APPROVAL , OR DENIAL OF A HOUSI NG DEV ELOPMENT 8
PROJECT APPLICATION BY A LOCAL REGULATORY AUTHORITY OR THE COMMISSION 9
SHALL BE GOVERNED ON LY BY THE DULY ADOPT ED LAWS AND REGULATI ONS IN 10
EFFECT AT THE TIME O F SUBMISSION OF A SUBSTANTIALLY COMPLETE 11
APPLICATION. 12

(2) (I) WITHIN 15 30 DAYS AFTER RECEIPT O F A HOUSING 13
DEVELOPMENT PROJECT APPLICATION, A LOCAL REGULATORY AUTHORITY OR THE 14
COMMISSION SHALL MAKE A DETERMINATION AS TO WHETHER THE APPLICATION IS 15
A SUBSTANTIALLY COMPLETE APPLICATION. 16

(II) AFTER MAKING A DETERM INATION UNDER T HIS 17
PARAGRAPH, THE LOCAL REGULATORY AUTHORITY OR THE COMMISSION SHALL: 18

1. PROMPTLY NOTIFY THE APPLICANT OF THE 19
DETERMINATION AND THE DATE OF THE DETERMINATION; AND 20

2. IF THE LOCAL REGULAT ORY AUTHORITY OR THE 21
COMMISSION HAS DETERMINED THAT THE APPLICATION IS NOT A SUBSTANTIALLY 22
COMPLETE APPLICATION, PROVIDE THE APPLICANT WITH A LIST OF DEF ICIENCIES 23
AND A REASONABLE TIME FRAME FOR CURING THE DEFICIENCIES. 24

(3) IF A LOCAL REGULATORY AUTHORITY OR THE COMMISSION FAILS 25
TO NOTIFY AN APPLICANT OF ITS DETERMINATION REGARDING THE COMPLETENESS 26
OF A HOUSING DEVELOPMENT APPLICATION WITHIN 20 35 DAYS AFTER RECEIPT OF 27
THE APPLICATION , THE APPLICATION IS D EEMED TO BE A SUBSTANTIALLY 28
COMPLETE APPLICATION FOR PURPOSES OF THIS SECTION. 29

(4) (I) WHEN A LOCAL REGUL ATORY AUTHORITY OR T HE 30
COMMISSION PROVIDES FOR THE APP ROVAL OF A HOUSING D EVELOPMENT 31
PROJECT IN MULTIPLE STAGES REQUIRES APPROVAL OF MULTIPLE HOUSING 32
DEVELOPMENT PROJECT APPLICATIONS FOR THE COMPLETION OF A HOUS ING 33
DEVELOPMENT PROJECT , THE DATE OF A COMPLETE OR SUBSTANTIALLY 34
8 SENATE BILL 325

COMPLETE APPLICATION SUBMISSION UNDER PARAGRAPH (1) OF THIS SUBSECTION 1
SHALL BE THE DATE OF THE FIRST COMPLETE OR SUBSTANT IALLY COMPLETE 2
APPLICATION SUBMISSION FOR ANY PROCESS THAT MAY CULMINATE IN THE FINAL 3
APPROVAL OF THE APPL ICATION COMPLETION OF A HOUS ING DEVELOPMENT 4
PROJECT. 5

(II) A ZONING TEXT AMENDMEN T, APPLICATION FOR 6
REZONING, OR OTHER LOCAL EQUIVALENT MAY NOT BE CONSIDERED AS A PROCESS 7
THAT MAY CULMINATE I N THE FINAL APPROVAL OF AN APPLICATION UNDER THIS 8
PARAGRAPH COMPLETION OF A HOUSING DEVELOPMENT PROJECT. 9

(B) AFTER A HOUSING DEVEL OPMENT PROJECT HAS R ECEIVED ALL 10
REQUIRED APPROVALS, THE PROPONENT OF THE PROJECT SHALL HAVE A VESTED 11
RIGHT TO THAT AUTHORIZED USE AND DEVELOPMENT FOR THE LONGER OF: 12

(1) 5 YEARS; OR 13

(2) A PERIOD DETERMINED BY THE LOCAL REGULATORY AUTHORITY 14
OR THE COMMISSION. 15

(C) FOR PURPOSES OF THIS SECTION, EACH DISCRETE PHASE OF A 16
HOUSING DEVELOPMENT PROJECT SUBJECT TO A PHASED DEVELOPMENT P LAN 17
SHALL BE CONSIDERED A DISCRETE HOUSING DEVELOPMENT PROJECT. 18

(D) THIS SECTION MAY NOT BE CONSTRUED TO: 19

(1) SUBJECT TO THE VESTI NG PERIOD IN SUBSECT ION (B) OF THIS 20
SECTION, PREVENT THE EXPIRATI ON OF AN APPROVAL OF A HOUSING 21
DEVELOPMENT PROJECT APPLICATION IN ACCOR DANCE WITH THE LAWS OR 22
REGULATIONS GOVERNIN G A LOCAL REGULATORY AUTHORITY OR THE 23
COMMISSION; OR 24

(2) LIMIT THE ABILITY OF A LOCAL REGULATORY AUTHORITY OR THE 25
COMMISSION TO: 26

(I) REQUIRE APPROVALS OR PERMITS FOR EACH PHA SE OF A 27
HOUSING DEVELOPMENT PROJECT SUBJECT TO A PHASED DEVELOPMENT PLAN IN 28
ACCORDANCE WITH THE LAWS AND REGULATIONS IN EFFECT AT THE TIM E OF 29
SUBMISSION OF A SUBSTANTIALLY COMPLETE APPLICATION FOR EACH RESPECTIVE 30
PHASE; 31

(II) ENFORCE HEALTH AND S AFETY LAWS OR REGULA TIONS 32
THAT ARE NECESSARY TO ADDRESS IMMEDIATE THREATS TO PUBLIC SAFETY; 33
SENATE BILL 325 9

(III) EXECUTE A DEVELOPMENT RIGHTS AND RESPONSIBILITIES 1
AGREEMENT UNDER TITLE 7, SUBTITLE 3 OF THIS ARTICLE; OR 2

(IV) APPROVE A ZONING TEX T AMENDMENT, APPLICATION FOR 3
REZONING, OR OTHER LOCAL EQUIV ALENT TO INCREASE TH E DENSITY OF A 4
HOUSING DEVELOPMENT PROJECT BEYOND THE MAXIMUM ALLOWABLE AMOUNT AT 5
THE TIME OF COMPLETE OR SUBSTANTIALLY COMPLETE APPLICATION SUBMISSION 6
UNDER SUBSECTION (A) OF THIS SECTION. 7

(E) THE REQUIREMENTS OF THIS SECTION APPLY TO A LOCAL REGULATORY 8
AUTHORITY AND THE COMMISSION ONLY TO THE EXTENT THAT THE REQUIREMENTS 9
DO NOT CONFLICT WITH OTHER STATE OR FEDERAL LAWS OR REGULATIONS. 10

SUBTITLE 3. SHORT TITLE. 11

12–301. 12

THIS TITLE MAY BE CITED AS THE MARYLAND HOUSING CERTAINTY ACT. 13

Article – Local Government 14

20–128. 15

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17

(2) “DEVELOPMENT EXCISE TAX” MEANS AN EXCISE TAX IMPOSED BY 18
A COUNTY OR MUNICIPA LITY ON THE CONSTRUC TION OR IMPROVEMENT OF A 19
BUILDING. 20

(3) “DEVELOPMENT IMPACT FE E” MEANS A FEE IMPOSED BY A 21
COUNTY OR MUNICIPALITY FOR THE PURPOSE OF FINANCING ANY OF THE CAPITAL 22
COSTS OF ADDITIO NAL OR EXPANDED PUBL IC WORKS , IMPROVEMENTS, AND 23
FACILITIES REQUIRED TO ACCOMMODATE NEW CONSTRUCTION OR DEVELOPMENT. 24

(4) “RESIDENTIAL REAL ESTATE PROJECT” INCLUDES A MIXED–USE 25
DEVELOPMENT THAT INCLUDES RESIDENTIAL UNITS. 26

(B) THIS SECTION APPLIES ONLY TO: 27

(1) A COUNTY THAT: 28

10 SENATE BILL 325

(I) IS A CHARTER COUNTY THAT IMPOSES , BY LAW , 1
DEVELOPMENT IMPACT F EES, SURCHARGES,, SURCHARGES, OR DEVELOPMENT 2
EXCISE TAXES; 3

(II) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT 4
REQUIRE THE PAYMENT OF DEVELOPMENT IMPAC T FEES , SURCHARGES,, 5
SURCHARGES, OR DEVELOPMENT EXCISE TAXES; OR 6

(III) IS A COMMISSION COUNTY THAT: 7

1. HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT 8
IMPACT FEES, SURCHARGES,, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 9

2. HAS ENACTED , BY LOCAL LAW , DEVELOPMENT 10
IMPACT FEES, SURCHARGES,, SURCHARGES, OR DEVELOPMENT EXCISE TAXES; AND 11

(2) A MUNICIPALITY THAT IMPOSES, BY LOCAL LAW , DEVELOPMENT 12
IMPACT FEES, SURCHARGES,, SURCHARGES, OR DEVELOPMENT EXCISE TAXES. 13

(C) (1) ANY EXCEPT AS PROVIDED IN PARAGRAPH PARAGRAPHS (2) AND 14
(3) OF THIS SUBSECTION , ANY DEVELOPMENT EXCISE T AX OR DEVELOPMENT 15
IMPACT FEE IMPOSED O N A RESIDENTIAL REAL ESTATE PROJECT UNDER THE 16
AUTHORITY GRANTED IN THIS ARTICLE MAY NOT BE COLLECTED UNTIL AFTER: 17

(1) (I) CONSTRUCTION OF THE RESIDENTIAL REAL EST ATE 18
PROJECT IS COMPLETE; AND 19

(2) (II) ALL REQUIREMENTS FOR A CERTIFICATE OF OCC UPANCY, 20
OCCUPANCY PERMIT, OR OTHER LOCAL EQUIV ALENT FOR THE RESIDE NTIAL REAL 21
ESTATE PROJECT HAVE BEEN MET. 22

(2) A DEVELOPMENT EXCISE T AX OR DEVELOPMENT IMPACT FEE 23
IMPOSED ON A RESIDEN TIAL REAL ESTATE PRO JECT UNDER THE AUTHORITY 24
GRANTED IN THIS ARTI CLE MAY BE COLLECTED AS A PRECONDITION TO 25
CONDUCTING A FINAL I NSPECTION, BUT NOT MORE THAN 30 DAYS BEFORE THE 26
DATE OF THE INSPECTION. 27

(3) THIS SUBSECTION DOES NOT APPLY TO THE COL LECTION OF A 28
DEVELOPMENT EXCISE TAX OR DEVELOPMENT IMPACT FEE THAT WAS IMPOSED ON A 29
RESIDENTIAL REAL EST ATE PROJECT TO FINAN CE A COUNTY DEBT THA T WAS 30
INCURRED ON OR BEFORE JANUARY 1, 2026. 31

SENATE BILL 325 11

(D) NOTWITHSTANDING ANY O THER LAW , A COUNTY O R MUNICIPALITY 1
THAT IMPOSES A DEVEL OPMENT EXCISE TAX OR DEVELOPMENT IMPACT FEE ON A 2
RESIDENTIAL REAL EST ATE PROJECT UNDER THE AUTHORITY GRANTED IN THIS 3
ARTICLE MAY DENY , WITHHOLD, OR REVOKE A CERTIFIC ATE OF OCCUPANCY , 4
OCCUPANCY PERMIT, OR OTHER LOCAL EQUIVALENT IF THE DEVELOPMENT EXCISE 5
TAX OR DEVELOPMENT I MPACT FEE IS NOT PAI D WITHIN A REASONABL E TIME 6
PERIOD SET BY THE COUNTY OR MUNICIPALITY. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9

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