Housing (Housing Finance)

HB 805, the Building Homes Act, creates a property tax credit for affordable homes in Maryland. It allows Baltimore City or county/municipal governments to offer tax credits against property taxes for dwellings with mortgages from nonprofit lenders and a 20-year agreement ensuring affordable pricing (including resale restrictions). The credit equals the difference between taxes on the home's full value and the portion covered by the homeowner's first mortgage. This directly affects homeowners in nonprofit-managed affordable housing units, reducing their annual property tax burden starting June 1, 2026.

HB 1279 modifies Maryland's Catalytic Revitalization Project Tax Credit program to expand eligibility and adjust credit calculations. It updates definitions to include properties formerly owned by the federal government or state, or those formerly used as schools/hospitals, and clarifies income thresholds for "workforce housing" (e.g., 60-150% area median income in designated areas). The bill changes how tax credits are claimed: for workforce housing projects, 50% of the credit applies to workforce units in the first year, with 33% of non-workforce costs spread over three subsequent years. This directly affects developers and property owners rehabilitating qualifying properties seeking state tax credits. The changes aim to simplify claiming while expanding opportunities for projects in targeted communities.

SB 455 establishes the Transformational Project Financing Program to help local governments fund large-scale development projects in designated areas. It allows counties or cities to apply to the Maryland Economic Development Corporation for "State-supported development district" status, requiring them to redirect property tax increases (tax increment) from these areas into a special fund instead of the general budget. This fund finances projects in priority areas like sustainable communities, transit-oriented developments, and designated enterprise zones. The bill creates new rules for calculating state revenue contributions and managing bond proceeds specifically for these designated districts.

HB 343 requires housing development projects receiving state funding to offer HUD-certified housing counseling services to prospective residents. It mandates that these services must be provided by counselors employed by an agency approved by the U.S. Department of Housing and Urban Development (HUD). The bill also requires the Governor to appropriate $200,000 annually starting in fiscal year 2028 for community development organizations to partner with approved housing counseling agencies. This directly affects developers receiving state housing funds and prospective residents of subsidized housing projects.

SB 389, the Maryland Transit and Housing Opportunity Act, automatically designates transit-oriented development (TOD) areas near rail stations with hourly weekday service (8 a.m.-6 p.m.) as enterprise zones - bypassing normal limits on such designations. It requires Maryland’s development corporation to prioritize loans for projects redeveloping state-owned land near rail stations and delays development taxes/fees for qualifying residential projects. The bill also adds project labor agreements as a scoring factor for TOD funding and adjusts local land-use regulations to support transit-focused development. Directly affecting developers, local governments, and communities near transit hubs, it aims to accelerate housing and infrastructure near rail corridors.

HB 168 allows Maryland school districts to use state housing funds for developing housing specifically for teachers and school staff (called "educator workforce housing"). It explicitly states that such housing qualifies as an eligible use of state financial assistance under housing programs and ensures teachers are recognized as a "specified group" for federal low-income housing tax credits. The bill modifies existing laws to clarify that school districts can repurpose unused school properties for this housing and that state housing agencies must inform applicants about this eligibility. This directly affects school districts seeking to address housing needs for educators and teachers applying for federal housing tax credits.