EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0444*
HOUSE BILL 444
Q2 3lr1426
By: Prince George’s County Delegation
Introduced and read first time: January 30, 2023
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Prince George’s County – Payment in Lieu of Taxes Agreements – Low–Income 2
Housing 3
PG 403–23 4
FOR the purpose of authorizing the governing body of Prince George’s County to enter into 5
a payment in lieu of taxes agreement with an owner of real property that is used for 6
low–income housing that is financed through the county’s Right of First Refusal 7
program; and generally relating to payment in lieu of taxes agreements for 8
low–income housing in Prince George’s County. 9
BY repealing and reenacting, with amendments, 10
Article – Tax – Property 11
Section 7–506.3 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2022 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Tax – Property 17
7–506.3. 18
(a) (1) In this subsection, “service facilities” includes nondwelling commercial 19
and community facilities, community rooms, dining halls, infirmaries, child and adult day 20
care facilities, and drug rehabilitation facilities. 21
(2) In Prince George’s County, real property may be exempt from county 22
property tax if: 23
2 HOUSE BILL 444
(i) the real property is owned by a person engaged in constructing 1
or operating housing structures or projects; 2
(ii) the real property is used for a housing structure or project that: 3
1. is acquired, constructed, or rehabilitated under a federal, 4
State, or local government program that: 5
A. funds construction or rehabilitation or insures the 6
financing of construction or rehabilitation in whole or in part, including a housing 7
investment trust; or 8
B. provides interest subsidy, rent subsidy, or rent 9
supplements; or 10
2. is acquired OR FINANCED under the Right of First Refusal 11
program under Subtitle 13, Division 14 of the Prince George’s County Code; 12
(iii) the owner and the governing body of Prince George’s County 13
agree that the owner shall pay a negotiated amount in lieu of the applicable county property 14
tax; and 15
(iv) the owner of the real property: 16
1. A. agrees to commence or continue to maintain the 17
real property as rental housing for lower income persons under the requirements of the 18
government programs described in item (ii) of this paragraph; and 19
B. agrees to renew any annual contributions contract or other 20
agreement for rental subsidy or supplement; or 21
2. enters into an agreement with the governing body of 22
Prince George’s County to allow the entire property or the portion of the property that was 23
maintained for lower income persons to remain as housing for lower income persons for a 24
term of at least 5 years. 25
(3) If the structure and facilities of the real property are used 26
predominantly for residential purposes, the real property may contain service facilities to 27
serve its occupants and the surrounding neighborhood. 28
(b) Real property described in subsection (a) of this section is exempt when the 29
requirements of subsection (a) of this section are met. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2023. 32