EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING 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.
*hb0674*
HOUSE BILL 674
P1 3lr1972
CF SB 425
By: Delegate Watson
Introduced and read first time: February 6, 2023
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2023
CHAPTER ______
AN ACT concerning 1
Maryland Historic Trust – Historic Preservation Partnership Program and 2
Fund – Established Loan Fund – Qualified Cooperating Nonprofit Organizations 3
– Transfers 4
FOR the purpose of altering the uses of the Historic Preservation Loan Fund; establishing 5
the Historic Preservation Partnership Program in authorizing the Maryland Historic 6
Trust to implement and encourage the preservation of historic properties in 7
partnership with transfer funds from the Fund to a qualified cooperating nonprofit 8
organization for certain purposes; establishing the Historic Preservation 9
Partnership Fund as a special, nonlapsing fund; requiring certain funds to be 10
transferred by the Trust to the qualified cooperating nonprofit organization by a 11
certain date each year; requiring the Governor to transfer certain funds to the 12
Partnership Fund by a certain date; transferring the funds of the Historic 13
Preservation Loan Fund to the Partnership Fund and dissolving the Historic 14
Preservation Loan Fund; and generally relating to the Historic Preservation 15
Partnership Program and Loan Fund. 16
BY repealing and reenacting, with amendments, 17
Article – State Finance and Procurement 18
Section 5A–327 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2022 Supplement) 21
BY adding to 22
Article – State Finance and Procurement 23 2 HOUSE BILL 674
Section 5A–327 5A–331 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2022 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – State Finance and Procurement 6
[5A–327. 7
(a) (1) In this section the following words have the meanings indicated. 8
(2) “MHT Loan Fund” means the Historic Preservation Loan Fund of the 9
Trust. 10
(3) “MHT Loan Program” means the Historic Preservation Loan Program 11
of the Trust. 12
(b) (1) There is an MHT Loan Program in the Trust. 13
(2) The purpose of the MHT Loan Program is to implement and encourage 14
the preservation of historic properties. 15
(3) The Trust shall administer the MHT Loan Program and coordinate the 16
MHT Loan Program with federal and State programs that complement or facilitate 17
carrying out the MHT Loan Program. 18
(c) There is an MHT Loan Fund in the Trust. 19
(d) The MHT Loan Fund may be used: 20
(1) to pay administrative costs directly related to the MHT Loan Program; 21
(2) to pay for the Trust to acquire historic properties or interests in historic 22
properties for its authorized purposes or for resale or lease subject to appropriate 23
preservation covenants; 24
(3) to pay costs, including preparation costs, to restore or rehabilitate 25
historic properties owned by the Trust for: 26
(i) the Trust’s authorized purposes; or 27
(ii) resale or lease subject to appropriate preservation covenants; or 28
(4) to make loans to nonprofit organizations, political subdivisions, 29
business entities, and individuals to: 30 HOUSE BILL 674 3
(i) acquire, rehabilitate, restore, or refinance historic properties; or 1
(ii) provide short–term financing for costs, including preparation 2
costs, directly related to work that the Trust or the State Historic Preservation Officer 3
requires or recommends to be undertaken before a construction project financed with 4
federal or State money is begun or continued; OR 5
(5) TO MAKE A TRANSFER T O A QUALIFIED COOPER ATING NONPROFIT 6
ORGANIZATION AS PROV IDED FOR UNDER § 5A–331 OF THIS PART. 7
(e) (1) The MHT Loan Fund is a continuing, nonlapsing special fund that is 8
not subject to § 7–302 of this article. 9
(2) The State Treasurer shall hold and the Comptroller shall account for 10
the MHT Loan Fund. 11
(f) The MHT Loan Fund consists of: 12
(1) money appropriated in the State budget to the MHT Loan Program; 13
(2) money received as interest or repayment of principal on loans made 14
under the MHT Loan Program or the Capital Revolving Fund for Historic Preservation; 15
(3) the proceeds from the resale or lease of property originally acquired by 16
the Trust with money from the MHT Loan Fund or the Capital Revolving Fund for Historic 17
Preservation; 18
(4) money received from other public or private sources for the benefit of 19
the MHT Loan Fund; and 20
(5) money received from the sale of general obligation bonds. 21
(g) Money in the MHT Loan Fund shall be invested in the same manner as other 22
State money. 23
(h) (1) The Department shall adopt regulations to carry out the purposes of 24
the MHT Loan Program. 25
(2) The regulations shall include: 26
(i) application procedures; 27
(ii) procedures to give adequate notice to the public of assistance 28
available under the MHT Loan Program; 29
(iii) provisions for the review of plans and specifications; 30 4 HOUSE BILL 674
(iv) provisions for the inspection of projects during construction; and 1
(v) selection criteria the Trust must consider in evaluating loan 2
applications, including: 3
1. the relative historical or cultural significance of, and the 4
urgency of need for, the project to be financed by the loan; 5
2. any proposed contribution by the appropriate political 6
subdivision to the project; 7
3. the geographic distribution of loan assistance from the 8
MHT Loan Fund; and 9
4. other relevant factors. 10
(i) (1) With the approval of the Secretary, for each loan the Trust may set: 11
(i) the principal amount; 12
(ii) the maturity; 13
(iii) the repayment terms; and 14
(iv) an interest rate that complies with applicable federal regulations 15
governing State borrowing. 16
(2) A loan from the MHT Loan Fund may be granted at an interest rate 17
lower than rates on other loans from the MHT Loan Fund if: 18
(i) the loan recipient is a nonprofit organization or a political 19
subdivision; or 20
(ii) the Secretary of Housing and Community Development 21
determines under § 4–212 of the Housing and Community Development Article that after 22
restoration or rehabilitation, the historic property will be wholly or partly occupied by 23
individuals or families of limited income. 24
(3) A loan from the MHT Loan Program may be secured by: 25
(i) a mortgage lien, which may be subordinate to other mortgage 26
liens; 27
(ii) a guarantee of repayment; or 28
(iii) another form of collateral acceptable to the Trust. 29 HOUSE BILL 674 5
(4) Without approval or execution by the Board of Public Works, the Trust 1
may take title to a mortgaged property by foreclosure or by deed in lieu of foreclosure and: 2
(i) convey title to a buyer; and 3
(ii) obtain and seek enforcement of a deficiency judgment. 4
(5) An individual or business entity may receive a loan only if the recipient 5
can document that private financing is unavailable. 6
(6) The Trust shall ensure that no loan is made under the MHT Loan 7
Program to acquire, restore, or rehabilitate a historic property unless the historic property 8
is listed in or eligible to be listed in the Historic Register. 9
(j) (1) The Trust shall require the recipient of a loan from the MHT Loan 10
Program to enter into an agreement to preserve and maintain the property. 11
(2) If the property is real property, the agreement shall be a recordable 12
historic preservation easement. 13
(3) The Secretary may waive the agreement requirement if the Secretary 14
finds that an agreement is impracticable. 15
(k) The trustees shall review and make recommendations to the Secretary about 16
loans and expenditures from the MHT Loan Fund, and the Secretary shall approve each 17
loan and expenditure from the MHT Loan Fund. 18
(l) (1) To the extent required by regulations adopted by the Secretary and 19
approved by the Board of Public Works, the Secretary shall submit to the Board of Public 20
Works for approval a proposed loan or expenditure from the MHT Loan Fund that will be 21
financed through the sale of State general obligation bonds. 22
(2) Except for an expenditure under subsection (d)(2) or (3) of this section, 23
a loan or expenditure from the MHT Loan Fund is not subject to Titles 4 and 5 of this 24
article. 25
(m) On or before December 31 of each year, the Trust shall report to the Governor 26
and, in accordance with § 2–1257 of the State Government Article, to the General Assembly 27
on the financial status and the activities of the MHT Loan Program for the preceding fiscal 28
year. 29
(n) (1) A person may not knowingly make or cause to be made a material false 30
statement of fact, including an understatement or overstatement of financial condition, in 31
a statement or report in or regarding an application for a loan or affecting an existing loan. 32
6 HOUSE BILL 674
(2) A person who violates this subsection is guilty of a misdemeanor and 1
on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding 2
$5,000 or both.] 3
5A–327. 5A–331. 4
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(2) “PARTNERSHIP FUND” MEANS THE HISTORIC PRESERVATION 7
PARTNERSHIP FUND OF THE TRUST. 8
(3) “PARTNERSHIP PROGRAM” MEANS THE HISTORIC 9
PRESERVATION PARTNERSHIP PROGRAM OF THE TRUST. 10
(4) “QUALIFIED, A “QUALIFIED COOPERATING NONPROFI T 11
ORGANIZATION ” MEANS A NONPROFIT OR GANIZATION IN GOOD S TANDING WITH THE 12
STATE DEPARTMENT OF ASSESSMENTS AND TAXATION THAT: 13
(I) (1) IS BASED IN THE STATE; 14
(II) (2) OPERATES STATEWIDE ; AND 15
(III) (3) HAS DEMONSTRATED EXP ERIENCE: 16
1. (I) REHABILITATING HISTO RIC STRUCTURES ; 17
2. (II) MANAGING PRESERVATIO N FUNDS; AND 18
3. (III) HOLDING PRESERVATION EASEMENTS. 19
(B) (1) THERE IS A PARTNERSHIP PROGRAM IN THE TRUST. 20
(2) THE PURPOSE OF THE PARTNERSHIP PROGRAM IS TO 21
IMPLEMENT AND ENCOUR AGE THE PRESERVATION OF HISTORIC PROPERTI ES BY 22
PARTNERING WITH A QU ALIFIED COOPERATING NONPROFIT ORGANIZATI ON THAT 23
WILL ADMINISTER FLEX IBLE FINANCIAL ASSIS TANCE FOR COMPLEX PR ESERVATION 24
PROJECTS AROUND THE STATE. 25
(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE A 26
QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION MAY USE FUNDS P ROVIDED 27
BY THE TRUST ONLY: 28
HOUSE BILL 674 7
(I) TO PAY FOR THE QUALI FIED COOPERATING NON PROFIT 1
ORGANIZATION TO ACQU IRE HISTORIC PROPERTIES OR INTERE STS IN HISTORIC 2
PROPERTIES FOR RESAL E OR LEASE; 3
(II) TO PAY COSTS , INCLUDING PREPARATIO N AND 4
ADMINISTRATIVE COSTS , TO RESTORE OR REHABI LITATE HISTORIC PROP ERTIES 5
OWNED BY THE QUALIFI ED COOPERATING NONPR OFIT ORGANIZATION FO R RESALE 6
OR LEASE; 7
(III) TO MAKE LOANS TO OTH ER NONPROFIT ORGANIZ ATIONS, 8
POLITICAL SUBDIVISIO NS, AND BUSINESS ENTITIE S TO ACQUIRE, REHABILITATE , 9
RESTORE, OR REFINANCE HISTORI C PROPERTIES; 10
(IV) TO MAKE LOANS TO IND IVIDUALS TO REHABILI TATE OR 11
RESTORE HISTORI C PROPERTIES RECOGNI ZED BY THE NATIONAL PARK SERVICE AS 12
NATIONAL HISTORIC LANDMARKS; OR 13
(V) FOR NECESSARY ADMINI STRATIVE AND PROGRAM MATIC 14
EXPENSES ASSOCIATED WITH CARRYING OUT TH E GOALS OF THE PARTNERSHIP 15
PROGRAM TRANSFER OF FUNDS . 16
(2) (I) THE TRUST A QUALIFIED COOPERATIN G NONPROFIT 17
ORGANIZATION SHALL DEVELOP A COMP ETITIVE PROCESS FOR MAKING AWARDS OF 18
FINANCIAL ASSISTANCE UNDER THE PARTNERSHIP PROGRAM WITH FUNDS 19
RECEIVED FROM THE TRUST. 20
(II) THE QUALIFIED COOPERA TING NONPROFIT ORGAN IZATION 21
SHALL AWARD FINANCIAL ASSI STANCE UNDER THE PARTNERSHIP PROGRAM IN A 22
MANNER CONSISTENT WI TH THE PROCESS DEVEL OPED BY THE TRUST IN 23
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 24
(D) (1) THERE IS A PARTNERSHIP FUND. 25
(2) THE PURPOSE OF THE PARTNERSHIP FUND IS TO PROVIDE F UNDS 26
IN THE FORM OF A GRA NT OR COOPERATIVE AG REEMENT TO A QUALIFI ED 27
COOPERATING NONPROFI T ORGANIZATION TO AD MINISTER THE PARTNERSHIP 28
PROGRAM. 29
(3) THE TRUST SHALL ADMINISTE R THE PARTNERSHIP FUND. 30
(4) (I) THE PARTNERSHIP FUND IS A SPECIAL, NONLAPSING F UND 31
THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT 32
ARTICLE. 33
8 HOUSE BILL 674
(II) THE STATE TREASURER SHALL HOLD THE FUND 1
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(5) THE PARTNERSHIP FUND CONSISTS OF : 3
(I) MONEY RECEIVED AS INTEREST OR REPAY MENT OF 4
PRINCIPAL ON LOANS M ADE UNDER THE PARTNERSHIP PROGRAM OR THE CAPITAL 5
REVOLVING FUND FOR HISTORIC PRESERVATION ; 6
(II) THE PROCEEDS FROM TH E RESALE OR LEASE OF PROPERTY 7
ORIGINALLY ACQUIRED BY THE QUALIFIED COO PERATING NONPROFIT 8
ORGANIZATION WITH MO NEY FROM THE PARTNERSHIP FUND OR THE CAPITAL 9
REVOLVING FUND FOR HISTORIC PRESERVATION ; 10
(III) MONEY RECEIVED FROM OTHER PUBLIC OR PRIV ATE 11
SOURCES FOR THE BENE FIT OF THE PARTNERSHIP FUND; AND 12
(IV) MONEY RECEIVED FROM THE SALE OF GENERAL 13
OBLIGATION BONDS . 14
(6) THE PARTNERSHIP FUND MAY BE USED FOR THE PURPOSE 15
IDENTIFIED IN PARAGR APH (2) OF THIS SUBSECTION . 16
(7) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 17
PARTNERSHIP FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 18
INVESTED. 19
(8) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , 20
THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION 21
TO THE PARTNERSHIP PROGRAM TRANSFERRING THE AMOUNT OF 22
UNENCUMBERED AND UNA PPROPRIATED FUNDS IN THE PARTNERSHIP FUND TO 23
THE QUALIFIED COOPER ATING NONPROFIT ORGA NIZATION FOR THE PUR POSE 24
IDENTIFIED IN PARAGR APH (2) OF THIS SUBSECTION . 25
(E) (1) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, THE TRUST SHALL 26
TRANSFER TO THE QUAL IFIED COOPERATING NO NPROFIT ORGANIZATION THE 27
FUNDS APPROPRI ATED TO THE PARTNERSHIP PROGRAM FOR THE CURRE NT FISCAL 28
YEAR. 29
(II) TO THE EXTENT POSSIBL E, THE GOAL WILL BE TO 30
PRESERVE THE CORPUS OF THE PARTNERSHIP FUND AS A REVOLVING F UND. 31
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 32
PARAGRAPH , THE QUALIFIED COOPERATING N ONPROFIT ORGANIZATIO N SHALL 33 HOUSE BILL 674 9
MAINTAIN A SEPARATE INTERNAL ACCOUNT FOR FUNDS PROVIDED FROM THE 1
PARTNERSHIP FUND. 2
(II) SUBJECT TO THE APPROV AL OF THE QUALIFIED 3
COOPERATING NONPROFI T ORGANIZATION ’S INVESTMENT POLICY BY THE BOARD 4
OF DIRECTORS OF THE QUALIF IED COOPERATING NONP ROFIT ORGANIZATION , 5
FUNDS MAY BE COMMING LED WITH OTHER FUNDS OF THE ORGANIZATION IF THE 6
FUNDS CAN BE ACCOUNT ED FOR INDEPENDENTLY OF OTHER FUNDS . 7
(3) ON THE TRANSFER OF FU NDS TO THE PARTNERSHIP FUND, THE 8
USE OF FUNDS IS NO LONGER S UBJECT TO § 5A–325 OF THIS SUBTITLE. 9
(F) (C) THE A QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION 10
SELECTED TO ADMINISTER THE PARTNERSHIP PROGRAM RECEIVING FUNDS FROM 11
THE TRUST, IN COORDINATION WITH THE DIRECTOR, SHALL ADOPT APPROPRI ATE 12
GUIDELINES TO CARRY OUT THE PURPOSES OF THE PARTNERSHIP PROGRAM 13
ENUMERATED IN SUBSEC TION (B) OF THIS SECTION. 14
(G) (D) THE A QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION 15
SHALL MAKE THE FOLLO WING INFORMATION AVA ILABLE ON ITS WEBSIT E: 16
(1) THE GUIDELINES ESTAB LISHED UNDER SUBSECT ION (F) (C) OF 17
THIS SECTION; 18
(2) THE AVAILABILITY OF PARTNERSHIP PROGRAM FUNDS; AND 19
(3) INFORMATION ON PROJE CTS RECEIVING FINANC IAL ASSISTANCE 20
FROM THE PARTNERSHIP FUND TRANSFERRED FUNDS . 21
(H) (E) (1) ON OR BEFORE JUNE 30 EACH YEAR, THE A QUALIFIED 22
COOPERATING NONPROFI T ORGANIZATION SHALL PROVIDE AN ANNUAL RE PORT TO 23
THE TRUST OUTLINING THE USE, ACCOUNTING , AND SUCCESS OF THE 24
PARTNERSHIP FUND ALL FUNDS RECEIVED . 25
(2) THE ANNUAL FINANCIAL REVIEW OR AUD IT OF THE 26
ORGANIZATION SHALL B E PROVIDED AT THE RE QUEST OF THE TRUST TO CONFIRM 27
THE INTENDED USE OF THE PARTNERSHIP FUND TRANSFERRED FUNDS . 28
SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding any other 29
provision of law, on or before July 31, 2023, the Governor shall transfer the funds 30
appropriated in fiscal year 2024 for the Historic Preservation Loan Program established 31
under § 5A–327 of the State Finance and Procurement Article to the Historic Preservation 32
Partnership Program established under § 5A–327 of the State Finance and Procurement 33
Article, as enacted by Section 1 of this Act. 34
10 HOUSE BILL 674
SECTION 3. AND BE IT FURTHER ENACTED, That: 1
(a) After June 30, 2023, the State Treasurer shall credit any funds received for 2
the benefit of the Historic Preservation Loan Fund established under § 5A–327 of the State 3
Finance and Procurement Article to the Historic Preservation Partnership Fund 4
established under § 5A–327 of the State Finance and Procurement Article, as enacted by 5
Section 1 of this Act. 6
(b) On or before July 31, 2023, all funds remaining in the Historic Preservation 7
Loan Fund established under § 5A–327 of the State Finance and Procurement Article shall 8
be transferred to the Historic Preservation Partnership Fund established under § 5A–327 9
of the State Finance and Procurement Article, as enacted by Section 1 of this Act, and shall 10
be used only in accordance with the provisions of § 5A–327 of the State Finance and 11
Procurement Article, as enacted by Section 1 of this Act. 12
(c) After July 31, 2023, the Historic Preservation Loan Fund established under § 13
5A–327 of the State Finance and Procurement Article shall be dissolved and no new 14
appropriations shall be made to the Historic Preservation Loan Fund. 15
SECTION 4. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
July 1, 2023. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.