EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 13, 2022
CHAPTER ______
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 2 HOUSE BILL 927
Article – Housing and Community Development 1
Section 4–504(e) 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2021 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – State Finance and Procurement 6
Section 5–310(a) and (b) 7
Annotated Code of Maryland 8
(2021 Replacement Volume) 9
BY adding to 10
Article – State Finance and Procurement 11
Section 5–310(d) 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
BY repealing and reenacting, with amendments, 15
Article – State Finance and Procurement 16
Section 10–305(b) and 10–306(c) 17
Annotated Code of Maryland 18
(2021 Replacement Volume) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Housing and Community Development 22
2–203. 23
(A) IN THIS SECTION , “AFFORDABLE HOUSING ” MEANS RESIDENTIAL 24
PROPERTY THAT IS : 25
(1) RENTED TO THE PUBLIC AT A RATE THAT ALLOW S A HOUSEHOLD 26
OF LOW– OR MODERATE –INCOME IN THE STATE TO PAY NOT MORE THAN 30% OF ITS 27
MONTHLY INCOME IN RE NT; OR 28
(2) SOLD TO THE PUBLIC AT A PR ICE THAT IS AFFORDAB LE TO A 29
HOUSEHOLD OF LOW – OR MODERATE –INCOME IN THE STATE. 30
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 31
INDICATED. 32
(2) “AFFORDABLE HOUSING ” MEANS RESIDENTIAL PR OPERTY THAT 33
IS RENTED OR SOLD TO THE PUBLIC AS LOW –INCOME HOUSING OR WO RKFORCE 34
HOUSING. 35 HOUSE BILL 927 3
(3) “AREA MEDIAN INCOME ” HAS THE MEANING STAT ED IN § 4–1801 1
OF THIS ARTICLE. 2
(4) “LOW–INCOME HOUSING ” MEANS HOUSING THAT I S AFFORDABLE 3
FOR A HOUSEHOLD WITH AN AG GREGATE ANNUAL INCOM E THAT IS BELOW 60% OF 4
THE AREA MEDIAN INCO ME. 5
(5) “WORKFORCE HOUSING ” HAS THE MEANING STAT ED IN § 4–1801 6
OF THIS ARTICLE. 7
(B) (1) (I) ON RECEIPT OF THE LIS T OF EXCESS REAL PRO PERTY NOT 8
LATER THAN 60 DAYS AFTER THE NOTICE PROVIDED UNDER § 5–310 5–310(D) OF 9
THE STATE FINANCE AND PROCUREMENT ARTICLE, THE DEPARTMENT SHALL , IN 10
CONSULTATION WITH TH E UNITS UNIT OF STATE GOVERNMENT THAT CONTROL 11
CONTROLS THE PROPERTIES PROPERTY, DETERMINE IF ANY OF THE LISTED 12
PROPERTIES ARE THE PROPERTY IS SUITABLE FOR USE OR REDEVELOPMENT AS 13
AFFORDABLE HOUSING . 14
(II) THE DEPARTMENT SHALL IDEN TIFY A PROPERTY AS 15
SUITABLE FOR USE OR REDEVELOPMENT AS AFF ORDABLE HOUSING IF T HE 16
PROPERTY: 17
1. IS LOCATED IN AN ARE A DESIGNATED AS A PR IORITY 18
FUNDING AREA UNDER TITLE 5, SUBTITLE 7B OF THE STATE FINANCE AND 19
PROCUREMENT ARTICLE; 20
2. DOES NOT BELONG IN A CATEGORY OF PROPERTY 21
LISTED IN § 5–310(C)(1)(I) OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 22
3. IS ADEQUATELY SIZED FOR ANY TYPE OF 23
RESIDENTIAL USE ; 24
4. HAS ACCESS TO PUBLIC UTILITIES; AND 25
5. HAS ACCESS TO FEASIB LE INGRESS AND EGRES S 26
POINTS. 27
(III) THE DEPARTMENT MAY CONSID ER OTHER FACTORS IN 28
ADDITION TO THE PROV ISIONS OF SUBPARAGRA PH (II) OF THIS PARAGRAPH WH EN 29
DETERMINING THE SUIT ABILITY OF A PROPERT Y FOR USE OR REDEVEL OPMENT AS 30
AFFORDABLE HOUSING . 31
4 HOUSE BILL 927
(2) ON OR BEFORE DECEMBER 31, 2023, AND EACH DECEMBER 31 1
THEREAFTER , THE THE DEPARTMENT SHALL COMP ILE AND REGULARLY UPDATE A 2
LIST OF PROPERTIES I T HAS DETERMINED ARE SUITABLE FOR USE OR 3
REDEVELOPMENT AS AFF ORDABLE HOUSING . 4
(3) FOR EACH PROPERTY INC LUDED IN THE LIST RE QUIRED UNDER 5
PARAGRAPH (2) OF THIS SUBSECTION , THE DEPARTMENT SHALL : 6
(I) GIVE NOTICE OF THE D ETERMINATION TO THE UNIT OF 7
STATE GOVERNMENT THAT CONTROLS THE PROPERT Y; AND 8
(II) ADVISE THE UNIT OF STATE GOVERNMENT OF T HE 9
REQUIREMENTS OF SUBS ECTION (C) OF THIS SECTION. 10
(4) THE LIST REQUIRED UND ER PARAGRAPH (2) OF THIS SUBSECTION 11
SHALL BE MADE AVAILA BLE TO THE PUBLIC . 12
(C) (1) (I) EXCEPT AS PROVIDED IN PARAGRAPHS (4) AND (5) OF THIS 13
SUBSECTION, ON RECEIPT OF THE NO TICE REQUIRED UNDER SUBSECTION (B)(3) OF 14
THIS SECTION, A THE UNIT OF STATE GOVERNMENT SHAL L, IN CONSULTATION WITH 15
THE DEPARTMENT AND THE DEPARTMENT OF PLANNING, DEVELOP A PROPOSAL TO 16
DISPOSE OF THE A LISTED PROPERTY BY : 17
1. DONATING OR SELLING THE PROPERTY TO A 18
NONPROFIT ORGANIZATI ON THAT INTENDS TO U SE OR REDEVELOP THE PROPERTY 19
AS AFFORDABLE HOUSIN G; OR 20
2. SELLING THE PROPERTY TO A BUYER THAT INTE NDS 21
TO USE OR RED EVELOP THE PROPERTY AS AFFORDABLE HOUSIN G. 22
(II) IF, AFTER REASONABLE EFF ORT, THE UNIT IS UNABLE T O 23
IDENTIFY A SUITABLE NONPROFIT ORGANIZATI ON OR BUYER IN ACCOR DANCE WITH 24
SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE UNIT SHALL DEVEL OP A PROPOSAL 25
TO SELL THE PROPERTY AT AUCTION . 26
(III) A PROPOSAL DEVELOPED U NDER THIS PARAGRAPH SHALL 27
BE SUBMITTED TO THE BOARD OF PUBLIC WORKS FOR CONSIDERATI ON IN 28
ACCORDANCE WITH § 10–305 OF THE STATE FINANCE AND PROCUREMENT 29
ARTICLE. 30
(2) ANY PROCEEDS FROM A S ALE OF EXCESS R EAL PROPERTY THAT 31
RESULTS FROM A PROPO SAL DEVELOPED UNDER THIS SUBSECTION SHAL L BE 32
APPLIED TO THE RENTAL HOUSING FUND UNDER § 4–504 OF THIS ARTICLE THE 33
UNIT OF STATE GOVERNMENT SHAL L CONSIDER THE PROPO SED PERIOD OF 34 HOUSE BILL 927 5
AFFORDABILITY , THE NUMBER OF AFFORD ABLE HOUSING UNITS CREATE D, AND THE 1
VIABILITY OF AN OFFE R WHEN EVALUATING OF FERS FROM MULTIPLE N ONPROFIT 2
ORGANIZATIONS OR BUY ERS UNDER THIS SUBSE CTION. 3
(3) WHEN A PROPERTY IS DI SPOSED OF IN ACCORDA NCE WITH A 4
PROPOSAL DEVELOPED U NDER THIS SUBSECTION , THE UNIT SHALL GIVE NOTICE OF 5
THE DISPOSITION TO T HE DEPARTMENT . 6
(4) A UNIT MAY NOT PROPOSE TO DISPOSE OF A PROP ERTY UNDER 7
THIS SUBSECTION IN A MANNER THAT WOULD VI OLATE ANY COVENANT O R 8
APPLICABLE FEDERAL L AW. 9
(5) NOTHING IN THIS SUBSE CTION SHALL BE CONST RUED TO 10
SUPERSEDE THE RIGHT OF A PERSON FROM WHO M REAL PROPERTY WAS ACQUIRED 11
OR THEIR SUCCESSOR I N INTEREST TO REACQU IRE THE PROPERTY UND ER § 8–309 12
OF THE TRANSPORTATION ARTICLE. 13
(D) ON OR BEFORE DECEMBER 31, 2024, AND EACH DECEMBER 31 14
THEREAFTER , THE DEPARTMENT SHALL REPORT TO THE GENERAL ASSEMBLY, IN 15
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE: 16
(1) THE NUMBER OF PROPOS ALS SUBMITTED TO THE BOARD OF 17
PUBLIC WORKS UNDER THIS SECT ION; 18
(2) THE NUMBER OF PROPER TIES THAT WERE DONAT ED PURSUANT 19
TO PROPOSALS DEVELOPE D UNDER THIS SECTION ; AND 20
(3) THE NUMBER OF PROPER TIES THAT WERE SOLD PURSUANT TO 21
PROPOSALS DEVELOPED UNDER THIS SECTION ; AND 22
(4) THE TOTAL AMOUNT OF PROCEEDS APPLIED TO THE RENTAL 23
HOUSING FUND AS A RESULT OF P ROPOSALS DEVELOPED U NDER THIS SECTION . 24
4–504. 25
(b) There is a Rental Housing Fund. 26
(e) The Fund consists of: 27
(1) money appropriated by the State for the Rental Housing Program under 28
§ 4–402 of this title; 29
(2) repayments and prepayments of loans made under the Rental Housing 30
Program and from loan programs under this title that have been repealed; 31
6 HOUSE BILL 927
(3) money appropriated under § 4–501(c) of this subtitle; 1
(4) money transferred to the Fund in accordance with §§ 4 –502(e), 2
4–503(d), and 4–505(h) of this subtitle and § 3–203(i) of this article; 3
(5) funds received by the Department or the Administration from the 4
federal government or other public or private sources; [and] 5
(6) investment earnings of the Fund; AND 6
(7) PROCEEDS FROM SALES OF EXCESS REAL PROPE RTY CONDUCTED 7
IN ACCORDANCE WITH P ROPOSALS DEVELOPED U NDER § 2–203(C) OF THIS 8
ARTICLE. 9
Article – State Finance and Procurement 10
5–310. 11
(a) Each unit of the State government shall notify the Department in writing of: 12
(1) any real property that is in excess of the needs of the unit; or 13
(2) any substantial change to any real property owned by the State. 14
(b) Subject to subsection (c) of this section, for any real property identified under 15
subsection (a) of this section, the Department shall: 16
(1) study the proper disposition of the property; 17
(2) determine whether any local government or unit of the State 18
government is interested in the property; and 19
(3) make an appropriate recommendation to the using unit of the State 20
government and to the Board of Public Works. 21
(D) ON OR BEFORE JUNE 1, 2023, AND EACH JUNE 1 THEREAFTER , THE THE 22
DEPARTMENT SHALL PROVIDE A LIST OF AL L PROPERTIES NOTIFY THE 23
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT OF ANY PR OPERTY 24
SUBMITTED TO THE DEPARTMENT UNDER SUBS ECTION (A)(1) OF THIS SECTION 25
WHICH HAS NOT BEEN D ISPOSED OF UNDER SUB SECTION (B) OF THIS SECTION TO 26
THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT . 27
10–305. 28
(b) (1) (i) Except as provided under subparagraph (ii) of this paragraph, 29
this subsection applies to the sale, transfer, grant, or exchange of: 30 HOUSE BILL 927 7
1. real property identified under § 5–310(c)(1) of this article; 1
and 2
2. State–owned real or personal property, funded in 3
accordance with an appropriation act of the General Assembly, that has an appraised value 4
over $100,000. 5
(ii) This subsection does not apply to the following dispositions of 6
property identified in subparagraph (i) of this paragraph: 7
1. leasing the property; or 8
2. the sale, transfer, grant, or exchange of a corrective or 9
access easement on the property. 10
(2) The Board may not approve the sale, transfer, exchange, or grant of 11
property until: 12
(i) the Department of General Services or the Department of 13
Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted 14
to the Board two independent appraisals of the property that: 15
1. with regard to real property, consider the value of any 16
restrictive covenant that may be placed on the property; and 17
2. may not be publicly disclosed if the property is to be sold 18
at auction; 19
(ii) the following information has been submitted, by electronic mail 20
or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House 21
Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of 22
this subsection, the Legislative Policy Committee: 23
1. a description of the property; and 24
2. if applicable, any justification for not selling, transferring, 25
exchanging, or granting the property in a manner that generates the highest return for the 26
State; 27
(iii) 45 days have elapsed since: 28
1. the information required by item (ii) of this paragraph was 29
received by the appropriate committees; and 30
2. the Board declared the property surplus; and 31
8 HOUSE BILL 927
(iv) except for property sold under paragraph (4) of this subsection, 1
for property that meets both criteria under paragraph (1)(i) of this subsection and for which 2
the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General 3
Assembly has approved the proposed disposition as provided under paragraph (3) of this 4
subsection. 5
(3) (i) Within 45 days after receiving the information submitted under 6
paragraph (2) of this subsection, the Legislative Policy Committee shall: 7
1. review the information and the public record created by 8
the Department of Planning for the property; and 9
2. A. approve the proposed disposition of the surplus 10
property and refer the property back to the Board for final disposition; or 11
B. refer the proposed disposition of the property to the full 12
General Assembly and notify the Board of the referral. 13
(ii) If the Legislative Policy Committee fails to take any action under 14
subparagraph (i)2 of this paragraph within the specified time period, the proposed 15
disposition shall be deemed approved by the Committee. 16
(iii) 1. If the proposed disposition of the surplus property is 17
referred by the Legislative Policy Committee to the full General Assembly, the proposed 18
disposition may not be approved by the Board unless it is approved by the passage of 19
legislation during the next legislative session of the General Assembly. 20
2. In any legislation passed in accordance with 21
subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed 22
disposition with or without conditions. 23
(4) If the Board has declared the property surplus, the Board shall sell the 24
property to the federal government, a local government, or a unit of federal or local 25
government for $1.00, if: 26
(i) the government or unit has indicated its interest in acquiring the 27
land; and 28
(ii) a restrictive covenant is placed on the deed of transfer, in 29
accordance with § 5–906(e)(7) and (8) of the Natural Resources Article, that requires the 30
property to be maintained in a use that is consistent with its use at the time of transfer. 31
(5) Any revenues derived from the sale, transfer, exchange, or grant of 32
property identified under paragraph (1)(i)1 of this subsection shall be deposited in the 33
Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article. 34
HOUSE BILL 927 9
(6) (I) IF THE BOARD HAS DECLARED TH E PROPERTY SURPLUS , 1
THE BOARD SHALL DISPOSE O F PROPERTY DETERMINE D BY THE DEPARTMENT OF 2
HOUSING AND COMMUNITY DEVELOPMENT TO BE SUI TABLE FOR USE OR 3
REDEVELOPMENT AS AFFORDABLE HOUSIN G IN ACCORDANCE WITH A PROPOSAL 4
DEVELOPED UNDER § 2–203 OF THE HOUSING AND COMMUNITY DEVELOPMENT 5
ARTICLE. 6
(II) ANY REVENUES DERIVED FROM THE SALE , TRANSFER, 7
EXCHANGE, OR GRANT OF PROPERTY IN ACCORDANCE WITH A PROPOSAL 8
DEVELOPED UNDER § 2–203 OF THE HOUSING AND COMMUNITY DEVELOPMENT 9
ARTICLE SHALL BE DEPO SITED IN THE RENTAL HOUSING FUND UNDER § 4–504 OF 10
THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 11
10–306. 12
(c) (1) THIS SUBSECTION DOES NOT APPLY TO PROPERT Y DISPOSED OF 13
IN ACCORDANCE WITH A PROPOSA L DEVELOPED UNDER § 2–203 OF THE HOUSING 14
AND COMMUNITY DEVELOPMENT ARTICLE. 15
(2) Except as provided in paragraphs [(2) and] (3) AND (4) of this 16
subsection, if cash is received as consideration for the disposition of a capital asset of the 17
State or any unit of the State government, the cash shall be applied to the State Annuity 18
Bond Fund Account for the payment of the principal of and interest on the bonded 19
indebtedness of the State. 20
[(2)] (3) If the capital asset is real property that is being leased or sold to 21
a private party for the purpose of realizing a transit–oriented development as defined under 22
§ 7–101 of the Transportation Article, at the discretion of the State agency that is disposing 23
of the property, all or a portion of the cash proceeds resulting from the transaction shall be 24
deposited in the Baltimore City Community Enhancement Transit–Oriented Development 25
Fund established under Title 15 of the Economic Development Article for the purposes of 26
that Fund. 27
[(3)] (4) (i) If cash is received as consideration for the disposition of a 28
capital asset, and if the capital asset was originally purchased with special funds, the cash 29
shall be applied to the special fund. 30
(ii) Notwithstanding subparagraph (i) of this paragraph, cash 31
received as consideration for the disposition of helicopters, auxiliary helicopter equipment, 32
ground support equipment, or other capital equipment related to helicopters shall be 33
applied to the State Annuity Bond Fund Account for the payment of the principal of and 34
interest on the bonded indebtedness of the State. 35
10 HOUSE BILL 927
[(4)] (5) If cash is received as consideration for the disposition of any real 1
or personal property of the State or any unit of the State government, other than a capital 2
asset, the cash shall be accounted for and paid into the State Treasury. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2022. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.