EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0979*
HOUSE BILL 979
Q1 2lr2749
By: Delegates Kaiser and Atterbeary
Introduced and read first time: February 10, 2022
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Tax Sales – Homeowner Protection Program – Automatic Enrollment and 2
Funding 3
FOR the purpose of requiring the State Department of Assessments and Taxation to 4
establish a process to automatically enroll each homeowner who meets certain 5
eligibility requirements in the Homeowner Protection Program; repealing the 6
authority of the Department to establish additional eligibility criteria for the 7
Program; repealing the requirement that a homeowner submit an application to the 8
Department to enroll in the Program; repealing certain provisions relating to the 9
process of enrolling homeowners in the Program; repealing a requirement that the 10
Department determine the maximum number of homeowners who may be enrolled 11
in the Program in each fiscal year; altering a requirement that the Governor include 12
a certain appropriation for the Program in the annual budget bill for a certain fiscal 13
year; and generally relating to the Homeowner Protection Program. 14
BY repealing and reenacting, without amendments, 15
Article – Tax – Property 16
Section 14–812(a)(1) 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2021 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – Property 21
Section 14–812(b)(7) and (9), 14–885 through 14–887, and 14–891 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2021 Supplement) 24
(As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 25
BY repealing 26
Article – Tax – Property 27
Section 14–812(b)(8) 28 2 HOUSE BILL 979
Annotated Code of Maryland 1
(2019 Replacement Volume and 2021 Supplement) 2
(As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 3
BY repealing and reenacting, without amendments, 4
Article – Tax – Property 5
Section 14–884 6
Annotated Code of Maryland 7
(2019 Replacement Volume and 2021 Supplement) 8
(As enacted by Chapter 382 of the Acts of the General Assembly of 2021) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Tax – Property 12
14–812. 13
(a) (1) At least 30 days before any property is first advertised for sale under 14
this subtitle, the collector shall have mailed to the person who last appears as owner of the 15
property on the collector’s tax roll, at the last address shown on the tax roll, a statement 16
giving the name of the person, and the amounts of taxes due. 17
(b) The mailing required under subsection (a) of this section shall include a 18
separate insert that includes the following: 19
(7) if the collector uses the tax sale process to enforce a lien for unpaid 20
charges for water or sewer service and a water or sewer utility serving the collector’s 21
jurisdiction offers a program for discounted water or sewer rates for low–income customers: 22
(i) a brief description of the program for discounted water or sewer 23
rates for low–income customers; and 24
(ii) information on how to apply for the program, including, if 25
applicable, a website address and telephone number where more information and 26
applications are available; AND 27
[(8) the following information concerning the Homeowner Protection 28
Program under Part VII of this subtitle: 29
(i) the statement, “If you are a homeowner of limited income you 30
may qualify for the Homeowner Protection Program, which could keep your home out of tax 31
sale for at least 3 years and could help you to pay the taxes you owe and keep your home.”; 32
and 33
(ii) the website address and telephone number of the State Tax Sale 34
Ombudsman where more information is available about the Homeowner Protection 35 HOUSE BILL 979 3
Program and how to apply; and] 1
[(9)] (8) any other information that may assist low–income homeowners 2
in avoiding tax sale costs or foreclosure that the collector considers appropriate. 3
14–884. 4
(a) There is a Homeowner Protection Program administered by the Ombudsman 5
in the Department. 6
(b) The purpose of the Program is to divert vulnerable homeowners from the 7
private tax lien sale process under Part III of this subtitle into an alternative program with 8
the primary purpose of: 9
(1) minimizing tax collection costs to homeowners; 10
(2) assisting homeowners to pay their taxes; and 11
(3) allowing homeowners to remain in their homes. 12
14–885. 13
(a) [(1)] To be eligible for the Program a homeowner shall: 14
[(i)] (1) reside in a dwelling that has an assessed value of $300,000 15
or less; and 16
[(ii)] (2) have a combined income of $60,000 or less. 17
[(2) The Department may establish, by regulation, additional eligibility 18
criteria for enrollment in the Program. 19
(b) The Department shall establish, by regulation, a process to: 20
(1) give priority for enrollment in the Program to homeowners who are: 21
(i) at least 60 years old; or 22
(ii) currently receiving disability benefits from the federal Social 23
Security Disability Insurance program or the federal Supplemental Security Income 24
program; and 25
(2) ensure that homeowners are enrolled in the Program who reside in each 26
county in the State. 27
(c) On or before June 30 each year, the Department shall determine the 28 4 HOUSE BILL 979
maximum number of homeowners who may be enrolled in the Program i n the next 1
succeeding fiscal year based on the amount of funding available for the Program in the 2
Homeowner Protection Fund established under § 14–891 of this subtitle. 3
(d) The number of homeowners enrolled in the Program in a fiscal year may not 4
exceed the maximum number determined by the Department under subsection (c) of this 5
section.] 6
(B) THE DEPARTMENT SHALL ESTA BLISH, BY REGULATION , A PROCESS TO 7
AUTOMATICALLY ENROLL EACH HOMEOWNER WHO MEETS THE ELIGIBILIT Y 8
REQUIREMENTS UNDER S UBSECTION (A) OF THIS SECTION IN THE PROGRAM. 9
(C) A HOMEOWNER ’S ENROLLMENT IN THE PROGRAM SHALL BECOME 10
EFFECTIVE ON A DATE DETERMINED BY THE DEPARTMENT THAT IS : 11
(1) AFTER THE HOMEOWNER ’S DWELLING IS ADVERT ISED FOR SALE 12
UNDER § 14–813 OF THIS SUBTITLE; BUT 13
(2) BEFORE THE HOMEOWNER ’S DWELLING IS OFFERED FOR SALE AT 14
THE TAX SALE. 15
[(e)] (D) County or municipal governments may not be required to pay any costs 16
of the Program. 17
14–886. 18
[(a) A homeowner shall submit an application to the Department to be enrolled in 19
the Program. 20
(b) A homeowner may submit an application for the Program online or by mail. 21
(c) The Ombudsman shall: 22
(1) prominently advertise the Program and make applications available on 23
the Ombudsman’s website; and 24
(2) collaborate with local governments, community organizations, and 25
public and private providers of social services and benefits to raise awareness of the 26
Program and disseminate applications.] 27
[(d)] (A) The Ombudsman shall cancel the enrollment of a homeowner in the 28
Program if: 29
(1) the homeowner submits a request to the Ombudsman to withdraw from 30
the Program; OR 31 HOUSE BILL 979 5
(2) [the homeowner submitted false information in the homeowner’s 1
application for enrollment in the Program; or 2
(3)] the Ombudsman determines that the homeowner is not acting in good 3
faith to pay the taxes due. 4
[(e)] (B) If the Ombudsman cancels the enrollment of a homeowner in the 5
Program, the Ombudsman shall send a notice of the cancellation to the homeowner that 6
includes the reasons for cancellation. 7
[(f)] (C) A homeowner’s enrollment in the Program ends on the earliest of: 8
(1) the date the homeowner pays the full amount of the taxes owed to the 9
Department; 10
(2) the date that is 3 years after the date the homeowner first enrolled in 11
the Program; or 12
(3) the date the homeowner’s enrollment in the Program is canceled under 13
subsection [(d)] (A) of this section. 14
14–887. 15
(a) [If a homeowner is first enrolled in the Program before the lien on the 16
homeowner’s dwelling is sold at tax sale] FOR EACH HOMEOWNER ENROLLED I N THE 17
PROGRAM: 18
(1) the Department shall pay the county or municipal corporation the full 19
amount of the tax lien ON THE HOMEOWNER ’S DWELLING and assume exclusive 20
responsibility for collecting the outstanding tax debt; and 21
(2) the county or municipal corporation shall withhold the HOMEOWNER ’S 22
dwelling from the next tax sale. 23
[(b) If a homeowner is first enrolled in the Program after the lien on the 24
homeowner’s dwelling is sold at tax sale, the Department shall pay the holder of the tax 25
sale certificate the full amount required to redeem the certificate, including interest and 26
expenses of the certificate holder, and assume exclusive responsibility for collecting the 27
outstanding tax debt.] 28
[(c)] (B) After a homeowner is enrolled in the Program: 29
(1) the Department shall pay the county or municipal corporation the full 30
amount of any tax lien that subsequently becomes due on the dwelling during the entire 31
period that the homeowner is enrolled in the Program and assume exclusive responsibility 32 6 HOUSE BILL 979
for collecting the outstanding tax debt; and 1
(2) the county or municipal corporation shall withhold the dwelling from 2
tax sale during the entire period that the homeowner is enrolled in the Program. 3
[(d)] (C) After the Department purchases a tax lien on the dwelling of a 4
homeowner under this section, the homeowner’s outstanding tax debt: 5
(1) is owed to the Department; and 6
(2) is not owed to any other person. 7
[(e)] (D) If a homeowner’s enrollment in the Program is canceled under § 8
[14–886(d)] 14–886(A) of this subtitle, the Department shall retain a lien on the 9
homeowner’s dwelling for the taxes owed to the Department but may not initiate any 10
collection efforts or otherwise act to enforce the lien until ownership of the dwelling is 11
transferred. 12
14–891. 13
(a) In this section, “Fund” means the Homeowner Protection Fund. 14
(b) There is a Homeowner Protection Fund. 15
(c) The purpose of the Fund is to finance the Program. 16
(d) The Department shall administer the Fund. 17
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 18
the State Finance and Procurement Article. 19
(2) The State Treasurer shall hold the Fund separately, and the 20
Comptroller shall account for the Fund. 21
(f) The Fund consists of: 22
(1) tax and interest payments made to the Department by homeowners 23
enrolled in the Program; 24
(2) money appropriated in the State budget to the Fund; 25
(3) interest earnings; and 26
(4) any other money from any other source accepted for the benefit of the 27
Fund. 28
(g) [For each of fiscal years 2023, 2024, and 2025, the Governor shall include in 29 HOUSE BILL 979 7
the annual budget bill an appropriation of $750,000 to the Fund.] THE GOVERNOR SHALL 1
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION TO THE FUND OF: 2
(1) $750,000 IN FISCAL YEAR 2023; 3
(2) $20,750,000 IN FISCAL YEAR 2024; AND 4
(3) $750,000 IN FISCAL YEAR 2025. 5
(h) (1) The Fund may be used only for any expenses associated with the 6
Program. 7
(2) The Fund may not be used for any expenses of the office of the State 8
Tax Sale Ombudsman that are not directly related to the Program. 9
(i) (1) The State Treasurer shall invest the money of the Fund in the same 10
manner as other State money may be invested. 11
(2) Any interest earnings of the Fund shall be credited to the Fund. 12
(j) Expenditures from the Fund may be made only in accordance with the State 13
budget. 14
(k) The Fund is the exclusive source of funding for the Program. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 16
1, 2023. 17