WES MOORE, Governor Ch. 208
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Chapter 208
(House Bill 444)
AN ACT concerning
Prince George’s County – Payment in Lieu of Taxes Agreements – Low–Income
Housing
PG 403–23
FOR the purpose of authorizing the governing body of Prince George’s County to enter into
a payment in lieu of taxes agreement with an owner of real property that is used for
low–income housing that is financed through the county’s Right of First Refusal
program or acquired, constructed, or rehabilitated for the purpose of operating the
low–income housing; and generally relating to payment in lieu of taxes agreements
for low–income housing in Prince George’s County.
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 7–506.3
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 – Tax – Property
7–506.3.
(a) (1) In this subsection, “service facilities” includes nondwelling commercial
and community facilities, community rooms, dining halls, infirmaries, child and adult day
care facilities, and drug rehabilitation facilities.
(2) In Prince George’s County, real property may be exempt from county
property tax if:
(i) the real property is owned by a person engaged in constructing
or operating housing structures or projects;
(ii) the real property is used for a housing structure or project that:
1. is acquired, constructed, or rehabilitated under a federal,
State, or local government program that:
Ch. 208 2023 LAWS OF MARYLAND
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A. funds construction or rehabilitation or insures the
financing of construction or rehabilitation in whole or in part, including a housing
investment trust; or
B. provides interest subsidy, rent subsidy, or rent
supplements; or
2. is acquired OR FINANCED under the Right of First Refusal
program under Subtitle 13, Division 14 of the Prince George’s County Code; OR
3. IS ACQUIRED, CONSTRUCTED , OR REHABILITATED
FOR THE PURPOSE OF O PERATING RENTAL HOUS ING FOR LOWER INCOME PERSONS;
(iii) the owner and the governing body of Prince George’s County
agree that the owner shall pay a negotiated amount in lieu of the applicable county property
tax; and
(iv) the owner of the real property:
1. A. agrees to commence or continue to maintain the
real property as rental housing for lower income persons under the requirements of the
government programs described in item (ii) of this paragraph; and
B. agrees to renew any annual contributions contract or other
agreement for rental subsidy or supplement; or
2. enters into an agreement with the governing body of
Prince George’s County to allow the entire property or the portion of the property that was
maintained for lower income persons to remain as housing for lower income persons for a
term of at least 5 years.
(3) If the structure and facilities of the real property are used
predominantly for residential purposes, the real property may contain service facilities to
serve its occupants and the surrounding neighborhood.
(b) Real property described in subsection (a) of this section is exempt when the
requirements of subsection (a) of this section are met.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2023.
Approved by the Governor, April 24, 2023.