EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0927*
HOUSE BILL 927
C9, P3 2lr1557
CF SB 744
By: Delegate Palakovich Carr
Introduced and read first time: February 7, 2022
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Housing and Community Development – Affordable Housing – Listing and 2
Disposal of Excess Real Property 3
FOR the purpose of requiring the Department of Planning to provide a list of excess real 4
property owned by the State to the Department of Housing and Community 5
Development; requiring the Department of Housing and Community Development 6
to determine whether any of the listed properties are suitable for use or 7
redevelopment as affordable housing; requiring units of State government to develop 8
proposals to donate or sell excess real property determined to be suitable for use or 9
redevelopment as affordable housing; and generally relating to the listing and 10
disposal of excess real property for use as affordable housing. 11
BY adding to 12
Article – Housing and Community Development 13
Section 2–203 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2021 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Housing and Community Development 18
Section 4–504(b) 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2021 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Housing and Community Development 23
Section 4–504(e) 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2021 Supplement) 26
BY repealing and reenacting, without amendments, 27 2 HOUSE BILL 927
Article – State Finance and Procurement 1
Section 5–310(a) and (b) 2
Annotated Code of Maryland 3
(2021 Replacement Volume) 4
BY adding to 5
Article – State Finance and Procurement 6
Section 5–310(d) 7
Annotated Code of Maryland 8
(2021 Replacement Volume) 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 10–305(b) and 10–306(c) 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 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
2–203. 18
(A) IN THIS SECTION , “AFFORDABLE HOUSING” MEANS RESIDENTIAL 19
PROPERTY THAT IS: 20
(1) RENTED TO THE PUBLIC AT A RATE THAT ALLOWS A HOUSEHOLD 21
OF LOW– OR MODERATE –INCOME IN THE STATE TO PAY NO T MORE THAN 30% OF ITS 22
MONTHLY INCOME IN RE NT; OR 23
(2) SOLD TO THE PUBLIC AT A PRICE THAT IS AFFORDABLE T O A 24
HOUSEHOLD OF LOW– OR MODERATE –INCOME IN THE STATE. 25
(B) (1) (I) ON RECEIPT OF THE LIST OF EXCESS REAL PROPERTY 26
PROVIDED UNDER § 5–310 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, 27
THE DEPARTMENT SHALL , IN CONSULTATION WITH THE UNITS OF STATE 28
GOVERNMENT THAT CONTROL THE PROPERTIES , DETERMINE IF ANY OF THE LISTED 29
PROPERTIES ARE SUITA BLE FOR USE OR REDEVELOPMENT AS AFFORDABLE 30
HOUSING. 31
(II) THE DEPARTMENT SHALL IDENTIFY A PROPERTY AS 32
SUITABLE FOR USE OR REDEVELOPMENT AS AFF ORDABLE HOUSING IF T HE 33
PROPERTY: 34
HOUSE BILL 927 3
1. IS LOCATED IN AN AREA DESIGNATED AS A PRIORITY 1
FUNDING AREA UNDER TITLE 5, SUBTITLE 7B OF THE STATE FINANCE AND 2
PROCUREMENT ARTICLE; 3
2. DOES NOT BELONG IN A CATEGORY OF PROPERTY 4
LISTED IN § 5–310(C)(1)(I) OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 5
3. IS ADEQUA TELY SIZED FOR ANY T YPE OF 6
RESIDENTIAL USE ; 7
4. HAS ACCESS TO PUBLIC UTILITIES; AND 8
5. HAS ACCESS TO FEASIB LE INGRESS AND EGRES S 9
POINTS. 10
(2) ON OR BEFORE DECEMBER 31, 2023, AND EACH DECEMBER 31 11
THEREAFTER , THE DEPARTMENT SHALL COMPILE A LIST OF PR OPERTIES IT HAS 12
DETERMINED ARE SUITA BLE FOR USE OR REDEVELOPMENT AS AFFORDABLE 13
HOUSING. 14
(3) FOR EACH PROPERTY INC LUDED IN THE LIST RE QUIRED UNDER 15
PARAGRAPH (2) OF THIS SUBSECTION , THE DEPARTMENT SHALL : 16
(I) GIVE NOTICE OF THE DETE RMINATION TO THE UNIT OF 17
STATE GOVERNMENT THAT CONTROLS THE PROPERTY ; AND 18
(II) ADVISE THE UNIT OF STATE GOVERNMENT OF T HE 19
REQUIREMENTS OF SUBS ECTION (C) OF THIS SECTION. 20
(4) THE LIST REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION 21
SHALL BE MADE AVAILA BLE TO THE PUBLIC . 22
(C) (1) (I) EXCEPT AS PROVIDED IN PARAGRAPHS (4) AND (5) OF THIS 23
SUBSECTION, ON RECEIPT OF THE NO TICE REQUIRED UNDER SUBSECTION (B)(3) OF 24
THIS SECTION, A UNIT OF STATE GOVERNMENT S HALL, IN CONSULTATION WITH THE 25
DEPARTMENT AND THE DEPARTMENT OF PLANNING, DEVELOP A PROPOSAL TO 26
DISPOSE OF THE LISTE D PROPERTY BY : 27
1. DONATING THE PROPERT Y TO A NONPROFIT 28
ORGANIZATION THAT INTENDS TO USE OR REDEVELOP THE PROPERTY AS 29
AFFORDABLE HOUSING ; OR 30
4 HOUSE BILL 927
2. SELLING THE PROPERTY TO A BUYER THAT INTENDS 1
TO USE OR REDEVELOP THE PROPERTY AS AFFORDABLE HOUSING . 2
(II) IF, AFTER REASONABLE EFF ORT, THE UNIT IS UNABLE T O 3
IDENTIFY A SUITABLE NONPROFIT ORGANIZATI ON OR BUYER IN ACCOR DANCE WITH 4
SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE UNIT SHALL DEVELOP A PROPOSAL 5
TO SELL THE PROPERTY AT AUCTION. 6
(III) A PROPOSAL DEVELOPED U NDER THIS PARAGRAPH SHALL 7
BE SUBMITTED TO THE BOARD OF PUBLIC WORKS FOR CONSIDERATI ON IN 8
ACCORDANCE WITH § 10–305 OF THE STATE FINANCE AND PROCUREMENT 9
ARTICLE. 10
(2) ANY PROCEEDS FROM A S ALE OF EXCESS REAL PROPE RTY THAT 11
RESULTS FROM A PROPOSAL DEVELOPED UNDER THIS SUBSECTIO N SHALL BE 12
APPLIED TO THE RENTAL HOUSING FUND UNDER § 4–504 OF THIS ARTICLE. 13
(3) WHEN A PROPERTY IS DI SPOSED OF IN ACCORDANCE WITH A 14
PROPOSAL DEVELOPED U NDER THIS SUBSECTION , THE UNIT SHALL GIVE NOTICE OF 15
THE DISPOSITION TO THE DEPARTMENT . 16
(4) A UNIT MAY NOT PROPOSE TO DISPOSE OF A PROPERTY UNDER 17
THIS SUBSECTION IN A MANNER THAT WOU LD VIOLATE ANY COVENANT OR 18
APPLICABLE FEDERAL L AW. 19
(5) NOTHING IN THIS SUBSECTION SHALL BE CON STRUED TO 20
SUPERSEDE THE RIGHT OF A PERSON FROM WHO M REAL PROPERTY WAS ACQUIRED 21
OR THEIR SUCCESSOR I N INTEREST TO REACQUIRE THE PRO PERTY UNDER § 8–309 22
OF THE TRANSPORTATION ARTICLE. 23
(D) ON OR BEFORE DECEMBER 31, 2024, AND EACH DECEMBER 31 24
THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 25
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE: 26
(1) THE NUMBER OF PROPOS ALS SUBMITTED TO THE BOARD OF 27
PUBLIC WORKS UNDER THIS SECT ION; 28
(2) THE NUMBER OF PROPER TIES THAT WERE DONAT ED PURSUANT 29
TO PROPOSALS DEVELOP ED UNDER THIS SECTION ; 30
(3) THE NUMBER OF PROPER TIES THAT WERE SOLD PURSUANT TO 31
PROPOSALS DEVELOPED UNDER THIS SECTION ; AND 32
HOUSE BILL 927 5
(4) THE TOTAL AMOUNT OF PR OCEEDS APPLIED TO TH E RENTAL 1
HOUSING FUND AS A RESULT OF PROPO SALS DEVELOPED UNDER THIS SECTION . 2
4–504. 3
(b) There is a Rental Housing Fund. 4
(e) The Fund consists of: 5
(1) money appropriated by the State for the Rental Housing Program under 6
§ 4–402 of this title; 7
(2) repayments and prepayments of loans made under the Rental Housing 8
Program and from loan programs under this title that have been repealed; 9
(3) money appropriated under § 4–501(c) of this subtitle; 10
(4) money transferred to the Fund in accordance with §§ 4–502(e), 11
4–503(d), and 4–505(h) of this subtitle and § 3–203(i) of this article; 12
(5) funds received by the Department or the Administration from the 13
federal government or other public or private sources; [and] 14
(6) investment earnings of the Fund; AND 15
(7) PROCEEDS FROM SALES OF EXCESS REAL PROPE RTY CONDUCTED 16
IN ACCORDANCE WITH PROPOSALS DEVELOPED UNDER § 2–203(C) OF THIS 17
ARTICLE. 18
Article – State Finance and Procurement 19
5–310. 20
(a) Each unit of the State government shall notify the Department in writing of: 21
(1) any real property that is in excess of the needs of the unit; or 22
(2) any substantial change to any real property owned by the State. 23
(b) Subject to subsection (c) of this section, for any real property identified under 24
subsection (a) of this section, the Department shall: 25
(1) study the proper disposition of the property; 26
(2) determine whether any local government or unit of the State 27
government is interested in the property; and 28 6 HOUSE BILL 927
(3) make an appropriate recommendation to the using unit of the State 1
government and to the Board of Public Works. 2
(D) ON OR BEFORE JUNE 1, 2023, AND EACH JUNE 1 THEREAFTER , THE 3
DEPARTMENT SHALL PROV IDE A LIST OF ALL PR OPERTIES SUBMITTED T O THE 4
DEPARTMENT UNDER SUBSECTIO N (A)(1) OF THIS SECTION TO THE DEPARTMENT 5
OF HOUSING AND COMMUNITY DEVELOPMENT . 6
10–305. 7
(b) (1) (i) Except as provided under subparagraph (ii) of this paragraph, 8
this subsection applies to the sale, transfer, grant, or exchange of: 9
1. real property identified under § 5–310(c)(1) of this article; 10
and 11
2. State–owned real or personal property, funded in 12
accordance with an appropriation act of the General Assembly, that has an appraised value 13
over $100,000. 14
(ii) This subsection does not apply to the following dispositions of 15
property identified in subparagraph (i) of this paragraph: 16
1. leasing the property; or 17
2. the sale, transfer, grant, or exchange of a corrective or 18
access easement on the property. 19
(2) The Board may not approve the sale, transfer, exchange, or grant of 20
property until: 21
(i) the Department of General Services or the Department of 22
Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted 23
to the Board two independent appraisals of the property that: 24
1. with regard to real property, consider the value of any 25
restrictive covenant that may be placed on the property; and 26
2. may not be publicly disclosed if the property is to be sold 27
at auction; 28
(ii) the following information has been submitted, by electronic mail 29
or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House 30
Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of 31
this subsection, the Legislative Policy Committee: 32
HOUSE BILL 927 7
1. a description of the property; and 1
2. if applicable, any justification for not selling, transferring, 2
exchanging, or granting the property in a manner that generates the highest return for the 3
State; 4
(iii) 45 days have elapsed since: 5
1. the information required by item (ii) of this paragraph was 6
received by the appropriate committees; and 7
2. the Board declared the property surplus; and 8
(iv) except for property sold under paragraph (4) of this subsection, 9
for property that meets both criteria under paragraph (1)(i) of this subsection and for which 10
the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General 11
Assembly has approved the proposed disposition as provided under paragraph (3) of this 12
subsection. 13
(3) (i) Within 45 days after receiving the information submitted under 14
paragraph (2) of this subsection, the Legislative Policy Committee shall: 15
1. review the information and the public record created by 16
the Department of Planning for the property; and 17
2. A. approve the proposed disposition of the surplus 18
property and refer the property back to the Board for final disposition; or 19
B. refer the proposed disposition of the property to the full 20
General Assembly and notify the Board of the referral. 21
(ii) If the Legislative Policy Committee fails to take any action under 22
subparagraph (i)2 of this paragraph within the specified time period, the proposed 23
disposition shall be deemed approved by the Committee. 24
(iii) 1. If the proposed disposition of the surplus property is 25
referred by the Legislative Policy Committee to the full General Assembly, the proposed 26
disposition may not be approved by the Board unless it is approved by the passage of 27
legislation during the next legislative session of the General Assembly. 28
2. In any legislation passed in accordance with 29
subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed 30
disposition with or without conditions. 31
(4) If the Board has declared the property surplus, the Board shall sell the 32
property to the federal government, a local government, or a unit of federal or local 33
government for $1.00, if: 34 8 HOUSE BILL 927
(i) the government or unit has indicated its interest in acquiring the 1
land; and 2
(ii) a restrictive covenant is placed on the deed of transfer, in 3
accordance with § 5–906(e)(7) and (8) of the Natural Resources Article, that requires the 4
property to be maintained in a use that is consistent with its use at the time of transfer. 5
(5) Any revenues derived from the sale, transfer, exchange, or grant of 6
property identified under paragraph (1)(i)1 of this subsection shall be deposited in the 7
Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article. 8
(6) (I) IF THE BOARD HAS DECLARED TH E PROPERTY SURPLUS , 9
THE BOARD SHALL DISPOSE O F PROPERTY DETERMINE D BY THE DEPARTMENT OF 10
HOUSING AND COMMUNITY DEVELOPMENT TO BE SUI TABLE FOR USE OR 11
REDEVELOPMENT AS AFF ORDABLE HOUSING IN ACCORDANCE WITH A PROPOSAL 12
DEVELOPED UNDER § 2–203 OF THE HOUSING AND COMMUNITY DEVELOPMENT 13
ARTICLE. 14
(II) ANY REVENUES DERIVED FROM THE SALE , TRANSFER, 15
EXCHANGE, OR GRANT OF PROPERTY IN ACCORDANCE WITH A PROPOSAL 16
DEVELOPED UNDER § 2–203 OF THE HOUSING AND COMMUNITY DEVELOPMENT 17
ARTICLE SHALL BE DEPO SITED IN THE RENTAL HOUSING FUND UNDER § 4–504 OF 18
THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 19
10–306. 20
(c) (1) THIS SUBSECTION DOES NOT APPLY TO PROPERT Y DISPOSED OF 21
IN ACCORDANCE WITH A PROPOSAL DEVELOPED UNDER § 2–203 OF THE HOUSING 22
AND COMMUNITY DEVELOPMENT ARTICLE. 23
(2) Except as provided in paragraphs [(2) and] (3) AND (4) of this 24
subsection, if cash is received as consideration for the disposition of a capital asset of the 25
State or any unit of the State government, the cash shall be applied to the State Annuity 26
Bond Fund Account for the payment of the principal of and interest on the bonded 27
indebtedness of the State. 28
[(2)] (3) If the capital asset is real property that is being leased or sold to 29
a private party for the purpose of realizing a transit–oriented development as defined under 30
§ 7–101 of the Transportation Article, at the discretion of the State agency that is disposing 31
of the property, all or a portion of the cash proceeds resulting from the transaction shall be 32
deposited in the Baltimore City Community Enhancement Transit–Oriented Development 33
Fund established under Title 15 of the Economic Development Article for the purposes of 34
that Fund. 35
HOUSE BILL 927 9
[(3)] (4) (i) If cash is received as consideration for the disposition of a 1
capital asset, and if the capital asset was originally purchased with special funds, the cash 2
shall be applied to the special fund. 3
(ii) Notwithstanding subparagraph (i) of this paragraph, cash 4
received as consideration for the disposition of helicopters, auxiliary helicopter equipment, 5
ground support equipment, or other capital equipment related to helicopters shall be 6
applied to the State Annuity Bond Fund Account for the payment of the principal of and 7
interest on the bonded indebtedness of the State. 8
[(4)] (5) If cash is received as consideration for the disposition of any real 9
or personal property of the State or any unit of the State government, other than a capital 10
asset, the cash shall be accounted for and paid into the State Treasury. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2022. 13