EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2023
CHAPTER ______
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 or acquired, constructed, or rehabilitated for the purpose of operating the 8
low–income housing; and generally relating to payment in lieu of taxes agreements 9
for low–income housing in Prince George’s County. 10
BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 7–506.3 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2022 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Tax – Property 18
7–506.3. 19
2 HOUSE BILL 444
(a) (1) In this subsection, “service facilities” includes nondwelling commercial 1
and community facilities, community rooms, dining halls, infirmaries, child and adult day 2
care facilities, and drug rehabilitation facilities. 3
(2) In Prince George’s County, real property may be exempt from county 4
property tax if: 5
(i) the real property is owned by a person engaged in constructing 6
or operating housing structures or projects; 7
(ii) the real property is used for a housing structure or project that: 8
1. is acquired, constructed, or rehabilitated under a federal, 9
State, or local government program that: 10
A. funds construction or rehabilitation or insures the 11
financing of construction or rehabilitation in whole or in part, including a housing 12
investment trust; or 13
B. provides interest subsidy, rent subsidy, or rent 14
supplements; or 15
2. is acquired OR FINANCED under the Right of First Refusal 16
program under Subtitle 13, Division 14 of the Prince George’s County Code; OR 17
3. IS ACQUIRED, CONSTRUCTED , OR REHABILITATED 18
FOR THE PURPOSE OF O PERATING RENTAL HOUS ING FOR LOWER INCOME PERSONS; 19
(iii) the owner and the governing body of Prince George’s County 20
agree that the owner shall pay a negotiated amount in lieu of the applicable county property 21
tax; and 22
(iv) the owner of the real property: 23
1. A. agrees to commence or continue to maintain the 24
real property as rental housing for lower income persons under the requirements of the 25
government programs described in item (ii) of this paragraph; and 26
B. agrees to renew any annual contributions contract or other 27
agreement for rental subsidy or supplement; or 28
2. enters into an agreement with the governing body of 29
Prince George’s County to allow the entire property or the portion of the property that was 30
maintained for lower income persons to remain as housing for lower income persons for a 31
term of at least 5 years. 32
HOUSE BILL 444 3
(3) If the structure and facilities of the real property are used 1
predominantly for residential purposes, the real property may contain service facilities to 2
serve its occupants and the surrounding neighborhood. 3
(b) Real property described in subsection (a) of this section is exempt when the 4
requirements of subsection (a) of this section are met. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2023. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.