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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 369
C9, Q1 6lr1817
CF 6lr1818
By: Senator Hettleman
Introduced and read first time: January 27, 2026
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Nonprofit Housing Corporations – Tax and Enforcement of Judgment 2
Exemptions – Alterations 3
FOR the purpose of exempting certain real property owned by certain subsidiary entities 4
of a nonprofit housing corporation from t axes and special assessments of the State 5
or a political subdivision; exempting certain real property of a nonprofit housing 6
corporation from certain procedures for enforcement of a judgment against the 7
nonprofit housing corporation; and generally relating to tax and enforcement of 8
judgment exemptions for nonprofit housing corporations. 9
BY repealing and reenacting, with amendments, 10
Article – Housing and Community Development 11
Section 12–104 12
Annotated Code of Maryland 13
(2019 Replacement 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 – Housing and Community Development 17
12–104. 18
(a) In this section, “housing authority entity” means an entity: 19
(1) that is controlled or wholly owned by an authority; or 20
(2) in which an authority or an entity controlled or wholly owned by an 21
authority has an ownership interest, either directly o r indirectly, through one or more 22
wholly or partially owned subsidiary entities. 23
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(b) A nonprofit entity shall be deemed controlled by an authority under subsection 1
(a) of this section if: 2
(1) the nonprofit entity is established by an authority under § 12–502(h) of 3
this title; and 4
(2) the authority: 5
(i) has the power to appoint a majority of the board of directors of 6
the nonprofit entity; or 7
(ii) is the sole member of the nonprofit entity. 8
(c) (1) In this subsection, “nonprofit housing corporation” means a [nonprofit 9
or charitable private corporation that provides safe and sanitary housing to persons of 10
eligible income in such a way that the corporation works essentially like an authority under 11
this Division II] CORPORATION: 12
(I) INCORPORATED UNDER T HE LAWS OF THE STATE OR 13
AUTHORIZED TO DO BUS INESS IN THE STATE BY THE STATE DEPARTMENT OF 14
ASSESSMENTS AND TAXATION; 15
(II) RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN 16
ORGANIZATION DESCRIBED IN § 501(C)(3) OF THE INTERNAL REVENUE CODE; AND 17
(III) ORGANIZED AND OPERATED FOR THE PRIMARY PURPOSE OF 18
DEVELOPING, OWNING, OR OPERATING HOUSING FOR PERSONS OF ELIGI BLE 19
INCOME. 20
(2) Property is used for essential public and governmental OR 21
CHARITABLE purposes and is exempt from all taxes and special assessments of the State 22
or a political subdivision if the property: 23
(i) belongs to an authority or a nonprofit housing corporation; 24
(ii) is used as housing for persons of eligible income and is owned in 25
whole or in part, directly or indirectly, through one or more wholly or partially owned 26
subsidiary entities of a housing authority entity OR NONPROFIT HOUSING 27
CORPORATION; or 28
(iii) 1. is used, or if planned or under construction will be used, 29
as housing for persons of eligible income and is owned in whole or in part, directly or 30
indirectly, through one or more wholly or partially owned subsidiary entities of a housing 31
authority entity OR NONPROFIT HOUSING CORPORATION; and 32
SENATE BILL 369 3
2. has improvements, or has improvements planned or under 1
construction, located on land that is owned by: 2
A. an authority OR A NONPROFIT HOUSING 3
CORPORATION; or 4
B. an entity that is controlle d or wholly owned by an 5
authority OR A NONPROFIT HOUSING CORPORATION. 6
(3) In lieu of those taxes and special assessments, an authority, a nonprofit 7
housing corporation, or a housing authority entity shall pay the political subdivision in 8
which a housing project is wholly or partly located an amount, if any, that may be set by 9
mutual agreement and that does not exceed the amount of regular taxes levied on similar 10
property. 11
(d) (1) Except as provided in paragraph (2) or (3) of this subsection: 12
(i) all real property of an authority is exempt from levy and sale by 13
virtue of an execution; 14
(II) ALL REAL PROPERTY OF A NONPROFIT HOUSING 15
CORPORATION THAT IS USED AS HOUSING FOR PERSONS OF ELIGIBLE INCOME IS 16
EXEMPT FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION; 17
[(ii)] (III) an execution or other judicial process may not issue 18
against the real property DESCRIBED IN ITEMS (I) AND (II) OF THIS PARAGRAPH; [and] 19
[(iii)] (IV) a judgment against an authority is not a charge or lien on 20
the authority’s real property; AND 21
(V) A JUDGMENT AGAINST A NONPROFIT HOUSING 22
CORPORATION IS NOT A CHARGE OR LIEN ON TH E NONPROFIT HOUSING 23
CORPORATION’S REAL PROPERTY THAT IS USED AS HOUSING F OR PERSONS OF 24
ELIGIBLE INCOME. 25
(2) Paragraph (1) of this subsection does not limit a right to forecl ose or 26
otherwise enforce: 27
(i) a mortgage or deed of trust recorded against property of an 28
authority OR A NONPROFIT HOUSING CORPORATION; or 29
(ii) a pledge or lien given by an authority OR A NONPROFIT 30
HOUSING CORPORATION on its rents, fees, or revenues. 31
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(3) This subsection does not deprive a political subdivision of its right to 1
collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may 2
be collected under State law and the laws of the political subdivision. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
1, 2026. 5