WES MOORE, Governor Ch. 174 – 1 – Chapter 174 (House Bill 150) AN ACT concerning Housing and Community Development – Adaptive Reuse FOR the purpose of establishing that adaptive reuse of existing buildings to create affordable multifamily housing is an eligible use of certain financial assistance provided by the Department of Housing and Community Development; requiring the Department to notify applicants for certain financial assistance that adaptive reuse is an eligible use of funds; and generally relating to the creation and financing of affordable multifamily housing through the adaptive reuse of existing buildings. BY adding to Article – Housing and Community Development Section 1–102 to be under the amended subtitle “Subtitle 1. General Provisions” Annotated Code of Maryland (2019 Replacement Volume and 2022 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 Subtitle 1. [Definitions] GENERAL PROVISIONS. 1–102. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “ADAPTIVE REUSE ” MEANS THE RETROFITTI NG AND REPURPOSING OF AN EX ISTING BUILDING TO D EVELOP NEW DWELLING UNITS . (3) “AFFORDABLE MULTIFAMIL Y HOUSING” MEANS A MULTIFAMILY DWELLING WHERE ALL O R A PORTION OF THE D WELLING UNITS ARE RE SERVED FOR INDIVIDUALS WHOSE HO USEHOLD INCOME IS LE SS THAN OR EQUAL TO A CERTAIN LIMIT ON MAXIMUM HOU SEHOLD INCOME . (B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION APPLIES TO ANY PROGR AM OPERATED BY THE DEPARTMENT THAT AWARD S LOANS THAT MAY BE USED TO DEVELOP AFFORDABLE M ULTIFAMILY HOUSING . Ch. 174 2023 LAWS OF MARYLAND – 2 – (2) IF THE LAWS OR REGULA TIONS GOVERNING A PA RTICULAR PROGRAM ESTABLISH MORE SPECI FIC RULES REGARDING THE USE OF LOAN PROCEEDS FOR ADAPTIV E REUSE, THE MORE SPECIFIC RU LES SHALL APPLY . (C) (1) ADAPTIVE REUSE OF A P ROPERTY TO DEVELOP A FFORDABLE MULTIFAMILY HOUSING IS AN ELIGIBLE USE O F THE PROCEEDS OF A LOAN COVERED UNDER THIS SECTION . (2) (I) THE SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE DEPARTMENT SHALL NOTI FY APPLICANTS FOR A LOAN COVERED UNDER T HIS SECTION THAT ADAPTIV E REUSE OF A PROPERT Y TO DEVELOP AFFORDA BLE MULTIFAMILY HOUSING IS AN ELIGIBLE USE OF LOAN PROCEEDS . (II) THE NOTICE REQUIREMEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT APPLY WHEN AN IN DIVIDUAL APPLIES FOR A LOAN UNDER A DEPARTMENT PROGRAM TH AT DOES NOT FOCUS ON HOUSING, INCLUDING PROGRAMS WITHIN THE DIVISION OF NEIGHBORHOO D REVITALIZATION. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2023. Approved by the Governor, April 24, 2023.