EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0759*
SENATE BILL 759
N1 2lr2114
CF 2lr3177
By: Senators Hayes, McCray, Sydnor, Carter, and Washington
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Real Property – Ground Rent Redemption Fund – Establishment 2
FOR the purpose of establishing the Ground Rent Redemption Fund as a special, 3
nonlapsing fund to provide grants to individuals for the redemption of ground rents; 4
and generally relating to the redemption of ground rents. 5
BY repealing and reenacting, without amendments, 6
Article – Real Property 7
Section 8–801(a), (b), and (d) 8
Annotated Code of Maryland 9
(2015 Replacement Volume and 2021 Supplement) 10
BY adding to 11
Article – Real Property 12
Section 8–813 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2021 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Real Property 18
8–801. 19
(a) In this subtitle the following words have the meanings indicated. 20
(b) “Ground lease” means a residential lease or sublease for a term of years 21
renewable forever subject to the payment of a periodic ground rent. 22
2 SENATE BILL 759
(d) “Ground rent” means a rent issuing out of, or collectible in connection with, 1
the reversionary interest under a ground lease. 2
8–813. 3
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(2) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 6
COMMUNITY DEVELOPMENT . 7
(3) “FUND” MEANS THE GROUND RENT REDEMPTION FUND. 8
(4) “GROUND RENT ” DOES NOT INCLUDE IRR EDEEMABLE GROUND 9
RENT UNDER § 8–805 OF THIS SUBTITLE. 10
(B) THERE IS A GROUND RENT REDEMPTION FUND. 11
(C) THE PURPOSE OF THE FUND IS TO PROVIDE GRANTS TO INDIVIDUALS 12
FOR THE REDEMPTION O F GROUND RENT IN THE STATE. 13
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 14
(E) AN INDIVIDUAL MAY APPLY TO THE DEPARTMENT TO RECEIVE GRANTS 15
NECESSARY TO REDEEM GROUND RENT IN ACCOR DANCE WITH THIS SUBS ECTION. 16
(F) THE DEPARTMENT SHALL ESTABLISH APPL ICATION PROCEDURES AND 17
ELIGIBILITY CRITERIA FOR GRANTS FROM THE FUND, INCLUDING MEANS–BASED 18
CRITERIA FOR THE AUTOMATIC ELIGIB ILITY OF CERTAIN IND IVIDUALS TO RECEIVE 19
GRANTS. 20
(G) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 22
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 23
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 24
(H) THE FUND CONSISTS OF: 25
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 26
AND 27
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 28
THE BENEFIT OF THE FUND. 29 SENATE BILL 759 3
(I) IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL 1
BUDGET BILL AN APPRO PRIATION OF $20,000,000 TO THE FUND. 2
(J) THE FUND MAY BE USED ONLY FOR THE REDEMPTION OF GR OUND RENT 3
IN ACCORDANCE WITH T HIS SECTION. 4
(K) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 5
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 6
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 7
THE GENERAL FUND OF THE STATE. 8
(L) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 9
WITH THE STATE BUDGET . 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2022. 12