| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *sb0759* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 759 |
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| 8 | 8 | | N1 2lr2114 |
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| 9 | 9 | | CF 2lr3177 |
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| 10 | 10 | | By: Senators Hayes, McCray, Sydnor, Carter, and Washington |
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| 11 | 11 | | Introduced and read first time: February 7, 2022 |
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| 12 | 12 | | Assigned to: Judicial Proceedings |
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| 13 | 13 | | |
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| 14 | 14 | | A BILL ENTITLED |
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| 15 | 15 | | |
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| 16 | 16 | | AN ACT concerning 1 |
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| 17 | 17 | | |
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| 18 | 18 | | Real Property – Ground Rent Redemption Fund – Establishment 2 |
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| 19 | 19 | | |
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| 20 | 20 | | FOR the purpose of establishing the Ground Rent Redemption Fund as a special, 3 |
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| 21 | 21 | | nonlapsing fund to provide grants to individuals for the redemption of ground rents; 4 |
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| 22 | 22 | | and generally relating to the redemption of ground rents. 5 |
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| 23 | 23 | | |
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| 24 | 24 | | BY repealing and reenacting, without amendments, 6 |
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| 25 | 25 | | Article – Real Property 7 |
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| 26 | 26 | | Section 8–801(a), (b), and (d) 8 |
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| 27 | 27 | | Annotated Code of Maryland 9 |
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| 28 | 28 | | (2015 Replacement Volume and 2021 Supplement) 10 |
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| 29 | 29 | | |
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| 30 | 30 | | BY adding to 11 |
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| 31 | 31 | | Article – Real Property 12 |
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| 32 | 32 | | Section 8–813 13 |
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| 33 | 33 | | Annotated Code of Maryland 14 |
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| 34 | 34 | | (2015 Replacement Volume and 2021 Supplement) 15 |
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| 35 | 35 | | |
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| 36 | 36 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 |
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| 37 | 37 | | That the Laws of Maryland read as follows: 17 |
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| 38 | 38 | | |
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| 39 | 39 | | Article – Real Property 18 |
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| 40 | 40 | | |
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| 41 | 41 | | 8–801. 19 |
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| 42 | 42 | | |
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| 43 | 43 | | (a) In this subtitle the following words have the meanings indicated. 20 |
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| 44 | 44 | | |
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| 45 | 45 | | (b) “Ground lease” means a residential lease or sublease for a term of years 21 |
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| 46 | 46 | | renewable forever subject to the payment of a periodic ground rent. 22 |
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| 47 | 47 | | 2 SENATE BILL 759 |
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| 48 | 48 | | |
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| 49 | 49 | | |
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| 50 | 50 | | (d) “Ground rent” means a rent issuing out of, or collectible in connection with, 1 |
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| 51 | 51 | | the reversionary interest under a ground lease. 2 |
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| 52 | 52 | | |
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| 53 | 53 | | 8–813. 3 |
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| 54 | 54 | | |
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| 55 | 55 | | (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 4 |
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| 56 | 56 | | INDICATED. 5 |
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| 57 | 57 | | |
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| 58 | 58 | | (2) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 6 |
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| 59 | 59 | | COMMUNITY DEVELOPMENT . 7 |
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| 60 | 60 | | |
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| 61 | 61 | | (3) “FUND” MEANS THE GROUND RENT REDEMPTION FUND. 8 |
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| 62 | 62 | | |
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| 63 | 63 | | (4) “GROUND RENT ” DOES NOT INCLUDE IRR EDEEMABLE GROUND 9 |
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| 64 | 64 | | RENT UNDER § 8–805 OF THIS SUBTITLE. 10 |
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| 65 | 65 | | |
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| 66 | 66 | | (B) THERE IS A GROUND RENT REDEMPTION FUND. 11 |
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| 67 | 67 | | |
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| 68 | 68 | | (C) THE PURPOSE OF THE FUND IS TO PROVIDE GRANTS TO INDIVIDUALS 12 |
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| 69 | 69 | | FOR THE REDEMPTION O F GROUND RENT IN THE STATE. 13 |
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| 70 | 70 | | |
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| 71 | 71 | | (D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 14 |
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| 72 | 72 | | |
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| 73 | 73 | | (E) AN INDIVIDUAL MAY APPLY TO THE DEPARTMENT TO RECEIVE GRANTS 15 |
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| 74 | 74 | | NECESSARY TO REDEEM GROUND RENT IN ACCOR DANCE WITH THIS SUBS ECTION. 16 |
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| 75 | 75 | | |
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| 76 | 76 | | (F) THE DEPARTMENT SHALL ESTABLISH APPL ICATION PROCEDURES AND 17 |
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| 77 | 77 | | ELIGIBILITY CRITERIA FOR GRANTS FROM THE FUND, INCLUDING MEANS–BASED 18 |
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| 78 | 78 | | CRITERIA FOR THE AUTOMATIC ELIGIB ILITY OF CERTAIN IND IVIDUALS TO RECEIVE 19 |
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| 79 | 79 | | GRANTS. 20 |
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| 80 | 80 | | |
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| 81 | 81 | | (G) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21 |
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| 82 | 82 | | SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 22 |
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| 83 | 83 | | |
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| 84 | 84 | | (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 23 |
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| 85 | 85 | | AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 24 |
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| 86 | 86 | | |
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| 87 | 87 | | (H) THE FUND CONSISTS OF: 25 |
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| 88 | 88 | | |
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| 89 | 89 | | (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 26 |
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| 90 | 90 | | AND 27 |
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| 91 | 91 | | |
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| 92 | 92 | | (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 28 |
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| 93 | 93 | | THE BENEFIT OF THE FUND. 29 SENATE BILL 759 3 |
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| 94 | 94 | | |
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| 95 | 95 | | |
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| 96 | 96 | | |
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| 97 | 97 | | (I) IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL 1 |
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| 98 | 98 | | BUDGET BILL AN APPRO PRIATION OF $20,000,000 TO THE FUND. 2 |
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| 99 | 99 | | |
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| 100 | 100 | | (J) THE FUND MAY BE USED ONLY FOR THE REDEMPTION OF GR OUND RENT 3 |
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| 101 | 101 | | IN ACCORDANCE WITH T HIS SECTION. 4 |
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| 102 | 102 | | |
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| 103 | 103 | | (K) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 5 |
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| 104 | 104 | | IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 6 |
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| 105 | 105 | | |
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| 106 | 106 | | (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 7 |
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| 107 | 107 | | THE GENERAL FUND OF THE STATE. 8 |
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| 108 | 108 | | |
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| 109 | 109 | | (L) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 9 |
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| 110 | 110 | | WITH THE STATE BUDGET . 10 |
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| 111 | 111 | | |
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| 112 | 112 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11 |
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| 113 | 113 | | October 1, 2022. 12 |
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