LAWRENCE J. HOGAN, JR., Governor Ch. 336
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Chapter 336
(House Bill 927)
AN ACT concerning
Housing and Community Development – Affordable Housing – Listing and
Disposal of Excess Real Property
FOR the purpose of requiring the Department of Planning to provide a list of excess real
property owned by the State to the Department of Housing and Community
Development; requiring the Department of Housing and Community Development
to determine whether any of the listed properties are suitable for use or
redevelopment as affordable housing; requiring units of State government to develop
proposals to donate or sell excess real property determined to be suitable for use or
redevelopment as affordable housing; requiring the Comptroller to distribute a
certain amount of income tax revenue from individuals to the Rental Housing Fund
on or before a certain date; and generally relating to the listing and disposal of excess
real property for use as and affordable housing.
BY adding to
Article – Housing and Community Development
Section 2–203
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – Housing and Community Development
Section 4–504(b), (c), and (d)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 4–504(e)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – Housing and Community Development
Section 4–504(b)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 4–504(e) Ch. 336 2022 LAWS OF MARYLAND
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Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 5–310(a) and (b)
Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to
Article – State Finance and Procurement
Section 5–310(d)
Annotated Code of Maryland
(2021 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 10–305(b) and 10–306(c)
Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to
Article – Tax – General
Section 2–605.2
Annotated Code of Maryland
(2016 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Housing and Community Development
4–504.
(b) There is a Rental Housing Fund.
(c) The Department shall use the Fund to operate, make loans, and pay expenses
of the Rental Housing Program, including reserves for anticipated future losses directly
related to the Rental Housing Program, as provided in the State budget.
(d) The Department shall administer the Fund either directly or through the
Administration.
(e) The Fund consists of:
LAWRENCE J. HOGAN, JR., Governor Ch. 336
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(1) money appropriated by the State for the Rental Housing Program under
§ 4–402 of this title;
(2) repayments and prepayments of loans made under the Rental Housing
Program and from loan programs under this title that have been repealed;
(3) money appropriated under § 4–501(c) of this subtitle;
(4) money transferred to the Fund in accordance with §§ 4–502(e), 4–503(d),
and 4–505(h) of this subtitle and § 3–203(i) of this article;
(5) funds received by the Department or the Administration from the federal
government or other public or private sources; [and]
(6) investment earnings of the Fund; AND
(7) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–605.2 OF THE
TAX – GENERAL ARTICLE.
Article – Tax – General
2–605.2.
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–604 AND 2–605
OF THIS SUBTITLE , ON OR BEFORE JUNE 30, 2022, THE COMPTROLLER SHALL
DISTRIBUTE $30,000,000 OF THE INCOME TAX RE VENUE FROM INDIVIDUA LS TO THE
RENTAL HOUSING FUND ESTABLISHED UNDE R § 4–504 OF THE HOUSING AND
COMMUNITY DEVELOPMENT ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Housing and Community Development
2–203.
(A) IN THIS SECTION , “AFFORDABLE HOUSING ” MEANS RESIDENTIAL
PROPERTY THAT IS :
(1) RENTED TO THE PUBLIC AT A RATE THAT ALLOW S A HOUSEHOLD
OF LOW– OR MODERATE –INCOME IN THE STATE TO PAY NOT MORE THAN 30% OF ITS
MONTHLY INCOME IN RE NT; OR
(2) SOLD TO THE PUBLIC A T A PRICE THAT IS AF FORDABLE TO A
HOUSEHOLD OF LO W– OR MODERATE –INCOME IN THE STATE. Ch. 336 2022 LAWS OF MARYLAND
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(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “AFFORDABLE HOUSING ” MEANS RESIDENTIAL PR OPERTY THAT
IS RENTED OR SOLD TO THE PUBLIC AS LOW –INCOME HOUSING OR WO RKFORCE
HOUSING.
(3) “AREA MEDIAN INCOME ” HAS THE MEANING STAT ED IN § 4–1801
OF THIS ARTICLE.
(4) “LOW–INCOME HOUSING ” MEANS HOUSING THAT I S AFFORDABLE
FOR A HOUSEHOLD WITH AN AGGREGATE ANNUAL INCOME THAT IS BELOW 60% OF
THE AREA MEDIAN INCO ME.
(5) “WORKFORCE HOUSING ” HAS THE MEANING STATED IN § 4–1801
OF THIS ARTICLE.
(B) (1) (I) ON RECEIPT OF THE LIS T OF EXCESS REAL PRO PERTY NOT
LATER THAN 60 DAYS AFTER THE NOTIC E PROVIDED UNDER § 5–310 5–310(D) OF
THE STATE FINANCE AND PROCUREMENT ARTICLE, THE DEPARTMENT SHALL , IN
CONSULTATION WITH TH E UNITS UNIT OF STATE GOVERNMENT THAT CONTROL
CONTROLS THE PROPERTIES PROPERTY, DETERMINE IF ANY OF THE LISTED
PROPERTIES ARE THE PROPERTY IS SUITABLE FOR USE OR REDEVELOPMENT AS
AFFORDABLE HOUSING .
(II) THE DEPARTMENT SHALL IDENTIFY A PROPERTY AS
SUITABLE FOR USE OR REDEVELOPMENT AS AFF ORDABLE HOUSING IF T HE
PROPERTY:
1. IS LOCATED IN AN ARE A DESIGNATED AS A PR IORITY
FUNDING AREA UNDER TITLE 5, SUBTITLE 7B OF THE STATE FINANCE AND
PROCUREMENT ARTICLE;
2. DOES NOT BE LONG IN A CATEGORY O F PROPERTY
LISTED IN § 5–310(C)(1)(I) OF THE STATE FINANCE AND PROCUREMENT ARTICLE;
3. IS ADEQUATELY SIZED FOR ANY TYPE OF
RESIDENTIAL USE ;
4. HAS ACCESS TO PUBLIC UTILITIES; AND
LAWRENCE J. HOGAN, JR., Governor Ch. 336
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5. HAS ACCESS TO FEASIB LE INGRESS AND EGRE SS
POINTS.
(III) THE DEPARTMENT MAY CONSID ER OTHER FACTORS IN
ADDITION TO THE PROV ISIONS OF SUBPARAGRA PH (II) OF THIS PARAGRAPH WH EN
DETERMINING THE SUIT ABILITY OF A PROPERT Y FOR USE OR REDEVEL OPMENT AS
AFFORDABLE HOUSING .
(2) ON OR BEFORE DECEMBER 31, 2023, AND EACH DECEMBER 31
THEREAFTER , THE THE DEPARTMENT SHALL COMP ILE AND REGULARLY UPDATE A
LIST OF PROPERTIES I T HAS DETERMINED ARE SUITABLE FOR USE OR
REDEVELOPMENT AS AFF ORDABLE HOUSING .
(3) FOR EACH PROPERTY INC LUDED IN THE LIST RE QUIRED UNDER
PARAGRAPH (2) OF THIS SUBSECTION , THE DEPARTMENT SHALL :
(I) GIVE NOTICE OF THE D ETERMINATION TO :
1. THE UNIT OF STATE GOVERNMENT THAT CONTROLS
THE PROPERTY ; AND
2. THE STATE TREASURER; AND
(II) ADVISE THE UNIT OF STATE GOVERNMENT OF THE
REQUIREMENTS OF SUBS ECTION (C) OF THIS SECTION.
(4) THE LIST REQUIRED UND ER PARAGRAPH (2) OF THIS SUBSECTION
SHALL BE MADE AVAILA BLE TO THE PUBLIC .
(C) (1) (I) EXCEPT AS PROVIDED IN PARAGRAPHS (4) AND (5) OF THIS
SUBSECTION, ON RECEIPT OF THE NOTICE REQUIRED UNDE R SUBSECTION (B)(3) OF
THIS SECTION, A THE UNIT OF STATE GOVERNMENT SHAL L, IN CONSULTATION WITH
THE DEPARTMENT AND THE DEPARTMENT OF PLANNING, DEVELOP A PROPOSAL T O
DISPOSE OF THE A DONATE OR SELL THE LISTED PROPERTY BY :
1. DONATING OR SELLING THE PROPERTY TO A
NONPROFIT ORGANIZATI ON THAT INTENDS CONTRACTS TO USE OR REDEVELOP THE
PROPERTY AS AFFORDAB LE HOUSING; OR
2. SELLING THE PROPERTY TO A BUYER THAT INTENDS
CONTRACTS TO USE OR REDEVELOP THE PROPERTY AS AFFO RDABLE HOUSING.
(II) IF, AFTER REASONABLE EFF ORT, THE UNIT IS UNABLE T O
IDENTIFY A SUITABLE NONPROFIT ORGANIZATI ON OR BUYER IN ACCOR DANCE WITH Ch. 336 2022 LAWS OF MARYLAND
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SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE UNIT SHALL DEVEL OP A PROPOSAL
TO SELL THE PROPERTY AT AUCTION.
(III) A PROPOSAL DEVELOPED UN DER THIS PARAGRAPH S HALL
BE SUBMITTED TO THE BOARD OF PUBLIC WORKS FOR CONSIDERATI ON IN
ACCORDANCE WITH § 10–305 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE.
(2) ANY PROCEEDS FROM A S ALE OF EXCESS REAL P ROPERTY THAT
RESULTS FROM A P ROPOSAL DEVELOPED UN DER THIS SUBSECTION SHALL BE
APPLIED TO THE RENTAL HOUSING FUND UNDER § 4–504 OF THIS ARTICLE THE
UNIT OF STATE GOVERNMENT SHAL L CONSIDER THE PROPO SED PERIOD OF
AFFORDABILITY , THE NUMBER OF AFFORD ABLE HOUSING UNITS C REATED, AND THE
VIABILITY OF AN OFFER WH EN EVALUATING OFFERS FROM MULTIPLE NONPRO FIT
ORGANIZATIONS OR BUY ERS UNDER THIS SUBSE CTION.
(3) WHEN A PROPERTY IS DISPOSED OF DONATED OR SOLD IN
ACCORDANCE WITH A PR OPOSAL DEVELOPED UND ER THIS SUBSECTION , THE UNIT
SHALL GIVE NOTICE OF THE DISPOSITION T O THE DEPARTMENT .
(4) A UNIT MAY NOT PROPOSE TO DISPOSE OF DONATE OR SELL A
PROPERTY UNDER THIS SUBSECTION IN A MANNER THAT IF THE DONATION OR S ALE
WOULD:
(I) VIOLATE ANY COVENANT OR APPLICABLE FEDERA L LAW; OR
(II) IN THE OPINION OF THE STATE TREASURER, ADVERSELY
AFFECT THE TAX –EXEMPT STATUS OF AN OUTSTANDING STATE BOND , THE
PROCEEDS OF WHICH WE RE ALLOCATED TO PURC HASE OR IMPROVE THE PROPERTY.
(5) NOTHING IN THIS SUBSE CTION SHALL BE CONST RUED TO
SUPERSEDE THE RIGHT OF A PERSON FROM WHO M REAL PROPERTY WAS ACQUIRED
OR THEIR SUCCESSOR I N INTEREST TO REACQU IRE THE PROPERTY UND ER § 8–309
OF THE TRANSPORTATION ARTICLE.
(D) ON OR BEFORE DECEMBER 31, 2024, AND EACH DECEMBER 31
THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE:
(1) THE NUMBER OF PROPOS ALS SUBMITTED TO THE BOARD OF
PUBLIC WORKS UNDER THIS SECT ION;
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(2) THE NUMBE R OF PROPERTIES THAT WERE DONATED PURSUAN T
TO PROPOSALS DEVELOP ED UNDER THIS SECTIO N; AND
(3) THE NUMBER OF PROPER TIES THAT WERE SOLD PURSUANT TO
PROPOSALS DEVELOPED UNDER THIS SECTION ; AND
(4) THE TOTAL AMOUNT OF PROCEEDS APPLIED TO THE RENTAL
HOUSING FUND AS A RESULT OF P ROPOSALS DEVELOPED U NDER THIS SECTION .
4–504.
(b) There is a Rental Housing Fund.
(e) The Fund consists of:
(1) money appropriated by the State for the Rental Housing Program under
§ 4–402 of this title;
(2) repayments and prepayments of loans made under the Rental Housing
Program and from loan programs under this title that have been repealed;
(3) money appropriated under § 4–501(c) of this subtitle;
(4) money transferred to the Fund in accordance with §§ 4 –502(e),
4–503(d), and 4–505(h) of this subtitle and § 3–203(i) of this article;
(5) funds received by the Department or the Administration from the
federal government or other public or private sources; [and]
(6) investment earnings of the Fund; AND
(7) PROCEEDS FROM SALES OF EXCESS REAL PROPE RTY CONDUCTED
IN ACCORDANCE WITH P ROPOSALS DEVELOPED U NDER § 2–203(C) OF THIS
ARTICLE.
Article – State Finance and Procurement
5–310.
(a) Each unit of the State government shall notify the Department in writing of:
(1) any real property that is in excess of the needs of the unit; or
(2) any substantial change to any real property owned by the State.
Ch. 336 2022 LAWS OF MARYLAND
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(b) Subject to subsection (c) of this section, for any real property identified under
subsection (a) of this section, the Department shall:
(1) study the proper disposition of the property;
(2) determine whether any local government or unit of the State
government is interested in the property; and
(3) make an appropriate recommendation to the using unit of the State
government and to the Board of Public Works.
(D) ON OR BEFORE JUNE 1, 2023, AND EACH JUNE 1 THEREAFTER , THE THE
DEPARTMENT SHALL PROVIDE A LIST OF AL L PROPERTIES NOTIFY THE
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND, IN ACCORDANCE
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE SENATE EDUCATION,
HEALTH, AND ENVIRONMENTAL AFFAIRS COMMITTEE, THE SENATE BUDGET AND
TAXATION COMMITTEE, THE HOUSE ENVIRONMENT AND TRANSPORTATION
COMMITTEE, AND THE HOUSE APPROPRIATIONS COMMITTEE OF ANY PROPERTY
SUBMITTED TO THE DEPARTMENT UNDER SUBS ECTION (A)(1) OF THIS SECTION
WHICH HAS NOT BEEN D ISPOSED OF UNDER SUB SECTION (B) OF THIS SECTION TO
THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT .
10–305.
(b) (1) (i) Except as provided under subparagraph (ii) of this paragraph,
this subsection applies to the sale, transfer, grant, or exchange of:
1. real property identified under § 5–310(c)(1) of this article;
and
2. State–owned real or personal property, funded in
accordance with an appropriation act of the General Assembly, that has an appraised value
over $100,000.
(ii) This subsection does not apply to the following dispositions of
property identified in subparagraph (i) of this paragraph:
1. leasing the property; or
2. the sale, transfer, grant, or exchange of a corrective or
access easement on the property.
(2) The Board may not approve the sale, transfer, exchange, or grant of
property until:
LAWRENCE J. HOGAN, JR., Governor Ch. 336
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(i) the Department of General Services or the Department of
Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted
to the Board two independent appraisals of the property that:
1. with regard to real property, consider the value of any
restrictive covenant that may be placed on the property; and
2. may not be publicly disclosed if the property is to be sold
at auction;
(ii) the following information has been submitted, by electronic mail
or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House
Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of
this subsection, the Legislative Policy Committee:
1. a description of the property; and
2. if applicable, any justification for not selling, transferring,
exchanging, or granting the property in a manner that generates the highest return for the
State;
(iii) 45 days have elapsed since:
1. the information required by item (ii) of this paragraph was
received by the appropriate committees; and
2. the Board declared the property surplus; and
(iv) except for property sold under paragraph (4) of this subsection,
for property that meets both criteria under paragraph (1)(i) of this subsection and for which
the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General
Assembly has approved the proposed disposition as provided under paragraph (3) of this
subsection.
(3) (i) Within 45 days after receiving the information submitted under
paragraph (2) of this subsection, the Legislative Policy Committee shall:
1. review the information and the public record created by
the Department of Planning for the property; and
2. A. approve the proposed disposition of the surplus
property and refer the property back to the Board for final disposition; or
B. refer the proposed disposition of the property to the full
General Assembly and notify the Board of the referral.
Ch. 336 2022 LAWS OF MARYLAND
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(ii) If the Legislative Policy Committee fails to take any action under
subparagraph (i)2 of this paragraph within the specified time period, the proposed
disposition shall be deemed approved by the Committee.
(iii) 1. If the proposed disposition of the surplus property is
referred by the Legislative Policy Committee to the full General Assembly, the proposed
disposition may not be approved by the Board unless it is approved by the passage of
legislation during the next legislative session of the General Assembly.
2. In any legislation passed in accordance with
subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed
disposition with or without conditions.
(4) If the Board has declared the property surplus, the Board shall sell the
property to the federal government, a local government, or a unit of federal or local
government for $1.00, if:
(i) the government or unit has indicated its interest in acquiring the
land; and
(ii) a restrictive covenant is placed on the deed of transfer, in
accordance with § 5–906(e)(7) and (8) of the Natural Resources Article, that requires the
property to be maintained in a use that is consistent with its use at the time of transfer.
(5) Any revenues derived from the sale, transfer, exchange, or grant of
property identified under paragraph (1)(i)1 of this subsection shall be deposited in the
Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article.
(6) (I) IF THE BOARD HAS DECLARED TH E PROPERTY SURPLUS ,
THE BOARD SHALL DISPOSE OF DONATE OR SELL THE PROPERTY DETERMINED BY
THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO BE SUI TABLE
FOR USE OR REDEVELOP MENT AS AFFORDABLE H OUSING IN ACCORDANCE WITH A
PROPOSAL DEVELOPED U NDER § 2–203 OF THE HOUSING AND COMMUNITY
DEVELOPMENT ARTICLE.
(II) ANY REVENUES DERIVED FROM THE SALE , TRANSFER,
EXCHANGE, OR GRANT OF PROPERTY IN ACCORDANCE WITH A PROPOSAL
DEVELOPED UNDER § 2–203 OF THE HOUSING AND COMMUNITY DEVELOPMENT
ARTICLE SHALL BE DEPO SITED IN THE RENTAL HOUSING FUND UNDER § 4–504 OF
THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE.
10–306.
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(c) (1) THIS SUBSECTION DOES NOT APPLY TO PROPERT Y DISPOSED OF
IN ACCORDANCE WITH A PROPOSAL DEVELOPED U NDER § 2–203 OF THE HOUSING
AND COMMUNITY DEVELOPMENT ARTICLE.
(2) Except as provided in paragraphs [(2) and] (3) AND (4) of this
subsection, if cash is received as consideration for the disposition of a capital asset of the
State or any unit of the State government, the cash shall be applied to the State Annuity
Bond Fund Account for the payment of the principal of and interest on the bonded
indebtedness of the State.
[(2)] (3) If the capital asset is real property that is being leased or sold to
a private party for the purpose of realizing a transit–oriented development as defined under
§ 7–101 of the Transportation Article, at the discretion of the State agency that is disposing
of the property, all or a portion of the cash proceeds resulting from the transaction shall be
deposited in the Baltimore City Community Enhancement Transit–Oriented Development
Fund established under Title 15 of the Economic Development Article for the purposes of
that Fund.
[(3)] (4) (i) If cash is received as consideration for the disposition of a
capital asset, and if the capital asset was originally purchased with special funds, the cash
shall be applied to the special fund.
(ii) Notwithstanding subparagraph (i) of this paragraph, cash
received as consideration for the disposition of helicopters, auxiliary helicopter equipment,
ground support equipment, or other capital equipment related to helicopters shall be
applied to the State Annuity Bond Fund Account for the payment of the principal of and
interest on the bonded indebtedness of the State.
[(4)] (5) If cash is received as consideration for the disposition of any real
or personal property of the State or any unit of the State government, other than a capital
asset, the cash shall be accounted for and paid into the State Treasury.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect October 1, 2022.
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section
3 of this Act, this Act shall take effect June 1, 2022.
Approved by the Governor, May 12, 2022.