MD
Maryland House Bill HB979

Maryland 2022 Regular Session

Maryland House Bill HB979 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0979*
66
77 HOUSE BILL 979
88 Q1 2lr2749
99
1010 By: Delegates Kaiser and Atterbeary
1111 Introduced and read first time: February 10, 2022
1212 Assigned to: Ways and Means
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Tax Sales – Homeowner Protection Program – Automatic Enrollment and 2
1919 Funding 3
2020
2121 FOR the purpose of requiring the State Department of Assessments and Taxation to 4
2222 establish a process to automatically enroll each homeowner who meets certain 5
2323 eligibility requirements in the Homeowner Protection Program; repealing the 6
2424 authority of the Department to establish additional eligibility criteria for the 7
2525 Program; repealing the requirement that a homeowner submit an application to the 8
2626 Department to enroll in the Program; repealing certain provisions relating to the 9
2727 process of enrolling homeowners in the Program; repealing a requirement that the 10
2828 Department determine the maximum number of homeowners who may be enrolled 11
2929 in the Program in each fiscal year; altering a requirement that the Governor include 12
3030 a certain appropriation for the Program in the annual budget bill for a certain fiscal 13
3131 year; and generally relating to the Homeowner Protection Program. 14
3232
3333 BY repealing and reenacting, without amendments, 15
3434 Article – Tax – Property 16
3535 Section 14–812(a)(1) 17
3636 Annotated Code of Maryland 18
3737 (2019 Replacement Volume and 2021 Supplement) 19
3838
3939 BY repealing and reenacting, with amendments, 20
4040 Article – Tax – Property 21
4141 Section 14–812(b)(7) and (9), 14–885 through 14–887, and 14–891 22
4242 Annotated Code of Maryland 23
4343 (2019 Replacement Volume and 2021 Supplement) 24
4444 (As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 25
4545
4646 BY repealing 26
4747 Article – Tax – Property 27
4848 Section 14–812(b)(8) 28 2 HOUSE BILL 979
4949
5050
5151 Annotated Code of Maryland 1
5252 (2019 Replacement Volume and 2021 Supplement) 2
5353 (As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 3
5454
5555 BY repealing and reenacting, without amendments, 4
5656 Article – Tax – Property 5
5757 Section 14–884 6
5858 Annotated Code of Maryland 7
5959 (2019 Replacement Volume and 2021 Supplement) 8
6060 (As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 9
6161
6262 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
6363 That the Laws of Maryland read as follows: 11
6464
6565 Article – Tax – Property 12
6666
6767 14–812. 13
6868
6969 (a) (1) At least 30 days before any property is first advertised for sale under 14
7070 this subtitle, the collector shall have mailed to the person who last appears as owner of the 15
7171 property on the collector’s tax roll, at the last address shown on the tax roll, a statement 16
7272 giving the name of the person, and the amounts of taxes due. 17
7373
7474 (b) The mailing required under subsection (a) of this section shall include a 18
7575 separate insert that includes the following: 19
7676
7777 (7) if the collector uses the tax sale process to enforce a lien for unpaid 20
7878 charges for water or sewer service and a water or sewer utility serving the collector’s 21
7979 jurisdiction offers a program for discounted water or sewer rates for low–income customers: 22
8080
8181 (i) a brief description of the program for discounted water or sewer 23
8282 rates for low–income customers; and 24
8383
8484 (ii) information on how to apply for the program, including, if 25
8585 applicable, a website address and telephone number where more information and 26
8686 applications are available; AND 27
8787
8888 [(8) the following information concerning the Homeowner Protection 28
8989 Program under Part VII of this subtitle: 29
9090
9191 (i) the statement, “If you are a homeowner of limited income you 30
9292 may qualify for the Homeowner Protection Program, which could keep your home out of tax 31
9393 sale for at least 3 years and could help you to pay the taxes you owe and keep your home.”; 32
9494 and 33
9595
9696 (ii) the website address and telephone number of the State Tax Sale 34
9797 Ombudsman where more information is available about the Homeowner Protection 35 HOUSE BILL 979 3
9898
9999
100100 Program and how to apply; and] 1
101101
102102 [(9)] (8) any other information that may assist low–income homeowners 2
103103 in avoiding tax sale costs or foreclosure that the collector considers appropriate. 3
104104
105105 14–884. 4
106106
107107 (a) There is a Homeowner Protection Program administered by the Ombudsman 5
108108 in the Department. 6
109109
110110 (b) The purpose of the Program is to divert vulnerable homeowners from the 7
111111 private tax lien sale process under Part III of this subtitle into an alternative program with 8
112112 the primary purpose of: 9
113113
114114 (1) minimizing tax collection costs to homeowners; 10
115115
116116 (2) assisting homeowners to pay their taxes; and 11
117117
118118 (3) allowing homeowners to remain in their homes. 12
119119
120120 14–885. 13
121121
122122 (a) [(1)] To be eligible for the Program a homeowner shall: 14
123123
124124 [(i)] (1) reside in a dwelling that has an assessed value of $300,000 15
125125 or less; and 16
126126
127127 [(ii)] (2) have a combined income of $60,000 or less. 17
128128
129129 [(2) The Department may establish, by regulation, additional eligibility 18
130130 criteria for enrollment in the Program. 19
131131
132132 (b) The Department shall establish, by regulation, a process to: 20
133133
134134 (1) give priority for enrollment in the Program to homeowners who are: 21
135135
136136 (i) at least 60 years old; or 22
137137
138138 (ii) currently receiving disability benefits from the federal Social 23
139139 Security Disability Insurance program or the federal Supplemental Security Income 24
140140 program; and 25
141141
142142 (2) ensure that homeowners are enrolled in the Program who reside in each 26
143143 county in the State. 27
144144
145145 (c) On or before June 30 each year, the Department shall determine the 28 4 HOUSE BILL 979
146146
147147
148148 maximum number of homeowners who may be enrolled in the Program i n the next 1
149149 succeeding fiscal year based on the amount of funding available for the Program in the 2
150150 Homeowner Protection Fund established under § 14–891 of this subtitle. 3
151151
152152 (d) The number of homeowners enrolled in the Program in a fiscal year may not 4
153153 exceed the maximum number determined by the Department under subsection (c) of this 5
154154 section.] 6
155155
156156 (B) THE DEPARTMENT SHALL ESTA BLISH, BY REGULATION , A PROCESS TO 7
157157 AUTOMATICALLY ENROLL EACH HOMEOWNER WHO MEETS THE ELIGIBILIT Y 8
158158 REQUIREMENTS UNDER S UBSECTION (A) OF THIS SECTION IN THE PROGRAM. 9
159159
160160 (C) A HOMEOWNER ’S ENROLLMENT IN THE PROGRAM SHALL BECOME 10
161161 EFFECTIVE ON A DATE DETERMINED BY THE DEPARTMENT THAT IS : 11
162162
163163 (1) AFTER THE HOMEOWNER ’S DWELLING IS ADVERT ISED FOR SALE 12
164164 UNDER § 14–813 OF THIS SUBTITLE; BUT 13
165165
166166 (2) BEFORE THE HOMEOWNER ’S DWELLING IS OFFERED FOR SALE AT 14
167167 THE TAX SALE. 15
168168
169169 [(e)] (D) County or municipal governments may not be required to pay any costs 16
170170 of the Program. 17
171171
172172 14–886. 18
173173
174174 [(a) A homeowner shall submit an application to the Department to be enrolled in 19
175175 the Program. 20
176176
177177 (b) A homeowner may submit an application for the Program online or by mail. 21
178178
179179 (c) The Ombudsman shall: 22
180180
181181 (1) prominently advertise the Program and make applications available on 23
182182 the Ombudsman’s website; and 24
183183
184184 (2) collaborate with local governments, community organizations, and 25
185185 public and private providers of social services and benefits to raise awareness of the 26
186186 Program and disseminate applications.] 27
187187
188188 [(d)] (A) The Ombudsman shall cancel the enrollment of a homeowner in the 28
189189 Program if: 29
190190
191191 (1) the homeowner submits a request to the Ombudsman to withdraw from 30
192192 the Program; OR 31 HOUSE BILL 979 5
193193
194194
195195
196196 (2) [the homeowner submitted false information in the homeowner’s 1
197197 application for enrollment in the Program; or 2
198198
199199 (3)] the Ombudsman determines that the homeowner is not acting in good 3
200200 faith to pay the taxes due. 4
201201
202202 [(e)] (B) If the Ombudsman cancels the enrollment of a homeowner in the 5
203203 Program, the Ombudsman shall send a notice of the cancellation to the homeowner that 6
204204 includes the reasons for cancellation. 7
205205
206206 [(f)] (C) A homeowner’s enrollment in the Program ends on the earliest of: 8
207207
208208 (1) the date the homeowner pays the full amount of the taxes owed to the 9
209209 Department; 10
210210
211211 (2) the date that is 3 years after the date the homeowner first enrolled in 11
212212 the Program; or 12
213213
214214 (3) the date the homeowner’s enrollment in the Program is canceled under 13
215215 subsection [(d)] (A) of this section. 14
216216
217217 14–887. 15
218218
219219 (a) [If a homeowner is first enrolled in the Program before the lien on the 16
220220 homeowner’s dwelling is sold at tax sale] FOR EACH HOMEOWNER ENROLLED I N THE 17
221221 PROGRAM: 18
222222
223223 (1) the Department shall pay the county or municipal corporation the full 19
224224 amount of the tax lien ON THE HOMEOWNER ’S DWELLING and assume exclusive 20
225225 responsibility for collecting the outstanding tax debt; and 21
226226
227227 (2) the county or municipal corporation shall withhold the HOMEOWNER ’S 22
228228 dwelling from the next tax sale. 23
229229
230230 [(b) If a homeowner is first enrolled in the Program after the lien on the 24
231231 homeowner’s dwelling is sold at tax sale, the Department shall pay the holder of the tax 25
232232 sale certificate the full amount required to redeem the certificate, including interest and 26
233233 expenses of the certificate holder, and assume exclusive responsibility for collecting the 27
234234 outstanding tax debt.] 28
235235
236236 [(c)] (B) After a homeowner is enrolled in the Program: 29
237237
238238 (1) the Department shall pay the county or municipal corporation the full 30
239239 amount of any tax lien that subsequently becomes due on the dwelling during the entire 31
240240 period that the homeowner is enrolled in the Program and assume exclusive responsibility 32 6 HOUSE BILL 979
241241
242242
243243 for collecting the outstanding tax debt; and 1
244244
245245 (2) the county or municipal corporation shall withhold the dwelling from 2
246246 tax sale during the entire period that the homeowner is enrolled in the Program. 3
247247
248248 [(d)] (C) After the Department purchases a tax lien on the dwelling of a 4
249249 homeowner under this section, the homeowner’s outstanding tax debt: 5
250250
251251 (1) is owed to the Department; and 6
252252
253253 (2) is not owed to any other person. 7
254254
255255 [(e)] (D) If a homeowner’s enrollment in the Program is canceled under § 8
256256 [14–886(d)] 14–886(A) of this subtitle, the Department shall retain a lien on the 9
257257 homeowner’s dwelling for the taxes owed to the Department but may not initiate any 10
258258 collection efforts or otherwise act to enforce the lien until ownership of the dwelling is 11
259259 transferred. 12
260260
261261 14–891. 13
262262
263263 (a) In this section, “Fund” means the Homeowner Protection Fund. 14
264264
265265 (b) There is a Homeowner Protection Fund. 15
266266
267267 (c) The purpose of the Fund is to finance the Program. 16
268268
269269 (d) The Department shall administer the Fund. 17
270270
271271 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 18
272272 the State Finance and Procurement Article. 19
273273
274274 (2) The State Treasurer shall hold the Fund separately, and the 20
275275 Comptroller shall account for the Fund. 21
276276
277277 (f) The Fund consists of: 22
278278
279279 (1) tax and interest payments made to the Department by homeowners 23
280280 enrolled in the Program; 24
281281
282282 (2) money appropriated in the State budget to the Fund; 25
283283
284284 (3) interest earnings; and 26
285285
286286 (4) any other money from any other source accepted for the benefit of the 27
287287 Fund. 28
288288
289289 (g) [For each of fiscal years 2023, 2024, and 2025, the Governor shall include in 29 HOUSE BILL 979 7
290290
291291
292292 the annual budget bill an appropriation of $750,000 to the Fund.] THE GOVERNOR SHALL 1
293293 INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION TO THE FUND OF: 2
294294
295295 (1) $750,000 IN FISCAL YEAR 2023; 3
296296
297297 (2) $20,750,000 IN FISCAL YEAR 2024; AND 4
298298
299299 (3) $750,000 IN FISCAL YEAR 2025. 5
300300
301301 (h) (1) The Fund may be used only for any expenses associated with the 6
302302 Program. 7
303303
304304 (2) The Fund may not be used for any expenses of the office of the State 8
305305 Tax Sale Ombudsman that are not directly related to the Program. 9
306306
307307 (i) (1) The State Treasurer shall invest the money of the Fund in the same 10
308308 manner as other State money may be invested. 11
309309
310310 (2) Any interest earnings of the Fund shall be credited to the Fund. 12
311311
312312 (j) Expenditures from the Fund may be made only in accordance with the State 13
313313 budget. 14
314314
315315 (k) The Fund is the exclusive source of funding for the Program. 15
316316
317317 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 16
318318 1, 2023. 17