WES MOORE, Governor Ch. 204
– 1 –
Chapter 204
(House Bill 674)
AN ACT concerning
Maryland Historic Trust – Historic Preservation Partnership Program and
Fund – Established Loan Fund – Qualified Cooperating Nonprofit Organizations
– Transfers
FOR the purpose of altering the uses of the Historic Preservation Loan Fund; establishing
the Historic Preservation Partnership Program in authorizing the Maryland Historic
Trust to implement and encourage the preservation of historic properties in
partnership with transfer funds from the Fund to a qualified cooperating nonprofit
organization for certain purposes; establishing the Historic Preservation
Partnership Fund as a special, nonlapsing fund; requiring certain funds to be
transferred by the Trust to the qualified cooperating nonprofit organization by a
certain date each year; requiring the Governor to transfer certain funds to the
Partnership Fund by a certain date; transferring the funds of the Historic
Preservation Loan Fund to the Partnership Fund and dissolving the Historic
Preservation Loan Fund; and generally relating to the Historic Preservation
Partnership Program and Loan Fund.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 5A–327
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY adding to
Article – State Finance and Procurement
Section 5A–327 5A–331
Annotated Code of Maryland
(2021 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 – State Finance and Procurement
[5A–327.
(a) (1) In this section the following words have the meanings indicated.
(2) “MHT Loan Fund” means the Historic Preservation Loan Fund of the
Trust.
Ch. 204 2023 LAWS OF MARYLAND
– 2 –
(3) “MHT Loan Program” means the Historic Preservation Loan Program
of the Trust.
(b) (1) There is an MHT Loan Program in the Trust.
(2) The purpose of the MHT Loan Program is to implement and encourage
the preservation of historic properties.
(3) The Trust shall administer the MHT Loan Program and coordinate the
MHT Loan Program with federal and State programs that complement or facilitate
carrying out the MHT Loan Program.
(c) There is an MHT Loan Fund in the Trust.
(d) The MHT Loan Fund may be used:
(1) to pay administrative costs directly related to the MHT Loan Program;
(2) to pay for the Trust to acquire historic properties or interests in historic
properties for its authorized purposes or for resale or lease subject to appropriate
preservation covenants;
(3) to pay costs, including preparation costs, to restore or rehabilitate
historic properties owned by the Trust for:
(i) the Trust’s authorized purposes; or
(ii) resale or lease subject to appropriate preservation covenants; or
(4) to make loans to nonprofit organizations, political subdivisions,
business entities, and individuals to:
(i) acquire, rehabilitate, restore, or refinance historic properties; or
(ii) provide short–term financing for costs, including preparation
costs, directly related to work that the Trust or the State Historic Preservation Officer
requires or recommends to be undertaken before a construction project financed with
federal or State money is begun or continued; OR
(5) TO MAKE A TRANSFER T O A QUALIFIED COOPER ATING NONPROFIT
ORGANIZATION AS PROV IDED FOR UNDER § 5A–331 OF THIS PART.
(e) (1) The MHT Loan Fund is a continuing, nonlapsing special fund that is
not subject to § 7–302 of this article.
WES MOORE, Governor Ch. 204
– 3 –
(2) The State Treasurer shall hold and the Comptroller shall account for
the MHT Loan Fund.
(f) The MHT Loan Fund consists of:
(1) money appropriated in the State budget to the MHT Loan Program;
(2) money received as interest or repayment of principal on loans made
under the MHT Loan Program or the Capital Revolving Fund for Historic Preservation;
(3) the proceeds from the resale or lease of property originally acquired by
the Trust with money from the MHT Loan Fund or the Capital Revolving Fund for Historic
Preservation;
(4) money received from other public or private sources for the benefit of
the MHT Loan Fund; and
(5) money received from the sale of general obligation bonds.
(g) Money in the MHT Loan Fund shall be invested in the same manner as other
State money.
(h) (1) The Department shall adopt regulations to carry out the purposes of
the MHT Loan Program.
(2) The regulations shall include:
(i) application procedures;
(ii) procedures to give adequate notice to the public of assistance
available under the MHT Loan Program;
(iii) provisions for the review of plans and specifications;
(iv) provisions for the inspection of projects during construction; and
(v) selection criteria the Trust must consider in evaluating loan
applications, including:
1. the relative historical or cultural significance of, and the
urgency of need for, the project to be financed by the loan;
2. any proposed contribution by the appropriate political
subdivision to the project;
Ch. 204 2023 LAWS OF MARYLAND
– 4 –
3. the geographic distribution of loan assistance from the
MHT Loan Fund; and
4. other relevant factors.
(i) (1) With the approval of the Secretary, for each loan the Trust may set:
(i) the principal amount;
(ii) the maturity;
(iii) the repayment terms; and
(iv) an interest rate that complies with applicable federal regulations
governing State borrowing.
(2) A loan from the MHT Loan Fund may be granted at an interest rate
lower than rates on other loans from the MHT Loan Fund if:
(i) the loan recipient is a nonprofit organization or a political
subdivision; or
(ii) the Secretary of Housing and Community Development
determines under § 4–212 of the Housing and Community Development Article that after
restoration or rehabilitation, the historic property will be wholly or partly occupied by
individuals or families of limited income.
(3) A loan from the MHT Loan Program may be secured by:
(i) a mortgage lien, which may be subordinate to other mortgage
liens;
(ii) a guarantee of repayment; or
(iii) another form of collateral acceptable to the Trust.
(4) Without approval or execution by the Board of Public Works, the Trust
may take title to a mortgaged property by foreclosure or by deed in lieu of foreclosure and:
(i) convey title to a buyer; and
(ii) obtain and seek enforcement of a deficiency judgment.
(5) An individual or business entity may receive a loan only if the recipient
can document that private financing is unavailable.
WES MOORE, Governor Ch. 204
– 5 –
(6) The Trust shall ensure that no loan is made under the MHT Loan
Program to acquire, restore, or rehabilitate a historic property unless the historic property
is listed in or eligible to be listed in the Historic Register.
(j) (1) The Trust shall require the recipient of a loan from the MHT Loan
Program to enter into an agreement to preserve and maintain the property.
(2) If the property is real property, the agreement shall be a recordable
historic preservation easement.
(3) The Secretary may waive the agreement requirement if the Secretary
finds that an agreement is impracticable.
(k) The trustees shall review and make recommendations to the Secretary about
loans and expenditures from the MHT Loan Fund, and the Secretary shall approve each
loan and expenditure from the MHT Loan Fund.
(l) (1) To the extent required by regulations adopted by the Secretary and
approved by the Board of Public Works, the Secretary shall submit to the Board of Public
Works for approval a proposed loan or expenditure from the MHT Loan Fund that will be
financed through the sale of State general obligation bonds.
(2) Except for an expenditure under subsection (d)(2) or (3) of this section,
a loan or expenditure from the MHT Loan Fund is not subject to Titles 4 and 5 of this
article.
(m) On or before December 31 of each year, the Trust shall report to the Governor
and, in accordance with § 2–1257 of the State Government Article, to the General Assembly
on the financial status and the activities of the MHT Loan Program for the preceding fiscal
year.
(n) (1) A person may not knowingly make or cause to be made a material false
statement of fact, including an understatement or overstatement of financial condition, in
a statement or report in or regarding an application for a loan or affecting an existing loan.
(2) A person who violates this subsection is guilty of a misdemeanor and
on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding
$5,000 or both.]
5A–327. 5A–331.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “PARTNERSHIP FUND” MEANS THE HISTORIC PRESERVATION
PARTNERSHIP FUND OF THE TRUST. Ch. 204 2023 LAWS OF MARYLAND
– 6 –
(3) “PARTNERSHIP PROGRAM” MEANS THE HISTORIC
PRESERVATION PARTNERSHIP PROGRAM OF THE TRUST.
(4) “QUALIFIED, A “QUALIFIED COOPERATING NONPROFI T
ORGANIZATION ” MEANS A NONPROFIT OR GANIZATION IN GOOD S TANDING WITH THE
STATE DEPARTMENT OF ASSESSMENTS AND TAXATION THAT:
(I) (1) IS BASED IN THE STATE;
(II) (2) OPERATES STATEWIDE; AND
(III) (3) HAS DEMONSTRATED EXP ERIENCE:
1. (I) REHABILITATING HISTO RIC STRUCTURES ;
2. (II) MANAGING PRESERVATIO N FUNDS; AND
3. (III) HOLDING PRESERVATION EASEMENTS.
(B) (1) THERE IS A PARTNERSHIP PROGRAM IN THE TRUST.
(2) THE PURPOSE OF THE PARTNERSHIP PROGRAM IS TO
IMPLEMENT AND ENCOUR AGE THE PRESERVATION OF HISTORIC PROPERTI ES BY
PARTNERING WITH A QU ALIFIED COOPERATING NONPROFIT ORGANIZATI ON THAT
WILL ADMINISTER FLEX IBLE FINANCIAL ASSIS TANCE FOR COMPLEX PR ESERVATION
PROJECTS AROUND THE STATE.
(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE A
QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION MAY USE FUNDS P ROVIDED
BY THE TRUST ONLY:
(I) TO PAY FOR THE QUALI FIED COOPERATING NON PROFIT
ORGANIZATION TO ACQU IRE HISTORIC PROPERTIES OR INTERESTS IN HIST ORIC
PROPERTIES FOR RESAL E OR LEASE;
(II) TO PAY COSTS , INCLUDING PREPARATIO N AND
ADMINISTRATIVE COSTS , TO RESTORE OR REHABI LITATE HISTORIC PROP ERTIES
OWNED BY THE QUALIFI ED COOPERATING NONPR OFIT ORGANIZATION FO R RESALE
OR LEASE;
(III) TO MAKE LOANS TO OTH ER NONPROFIT ORGANIZ ATIONS,
POLITICAL SUBDIVISIO NS, AND BUSINESS ENTITIE S TO ACQUIRE, REHABILITATE ,
RESTORE, OR REFINANCE HISTORI C PROPERTIES; WES MOORE, Governor Ch. 204
– 7 –
(IV) TO MAKE LOANS TO IND IVIDUALS TO REHABILI TATE OR
RESTORE HISTORIC PROPERTIES RECOGNIZED BY THE NATIONAL PARK SERVICE AS
NATIONAL HISTORIC LANDMARKS; OR
(V) FOR NECESSARY ADMINI STRATIVE AND PROGRAM MATIC
EXPENSES ASSOCIATED WITH CARRYING OUT TH E GOALS OF THE PARTNERSHIP
PROGRAM TRANSFER OF FUNDS .
(2) (I) THE TRUST A QUALIFIED COOPERATIN G NONPROFIT
ORGANIZATION SHALL DEVELOP A COMP ETITIVE PROCESS FOR MAKING AWARDS OF
FINANCIAL ASSISTANCE UNDER THE PARTNERSHIP PROGRAM WITH FUNDS
RECEIVED FROM THE TRUST.
(II) THE QUALIFIED COOPERA TING NONPROFIT ORGANIZATION
SHALL AWARD FINANCIA L ASSISTANCE UNDER T HE PARTNERSHIP PROGRAM IN A
MANNER CONSISTENT WI TH THE PROCESS DEVEL OPED BY THE TRUST IN
SUBPARAGRAPH (I) OF THIS PARAGRAPH .
(D) (1) THERE IS A PARTNERSHIP FUND.
(2) THE PURPOSE OF THE PARTNERSHIP FUND IS TO PROVIDE FU NDS
IN THE FORM OF A GRA NT OR COOPERATIVE AG REEMENT TO A QUALIFI ED
COOPERATING NONPROFI T ORGANIZATION TO AD MINISTER THE PARTNERSHIP
PROGRAM.
(3) THE TRUST SHALL ADMINISTE R THE PARTNERSHIP FUND.
(4) (I) THE PARTNERSHIP FUND IS A SPECIAL, NONLAPSING FUND
THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE.
(II) THE STATE TREASURER SHALL HOLD THE FUND
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(5) THE PARTNERSHIP FUND CONSISTS OF :
(I) MONEY RECEIVED AS IN TEREST OR REPAYMENT OF
PRINCIPAL ON LOANS M ADE UNDER THE PARTNERSHIP PROGRAM OR THE CAPITAL
REVOLVING FUND FOR HISTORIC PRESERVATION ;
(II) THE PROCEEDS FROM TH E RESALE OR LEASE OF PROPERTY
ORIGINALLY ACQUIRED BY THE QUALIFIED CO OPERATING NONPROFIT Ch. 204 2023 LAWS OF MARYLAND
– 8 –
ORGANIZATION WITH MO NEY FROM THE PARTNERSHIP FUND OR THE CAPITAL
REVOLVING FUND FOR HISTORIC PRESERVATION ;
(III) MONEY RECEIVED FROM OTHER PUBLIC OR PRIV ATE
SOURCES FOR THE BENE FIT OF THE PARTNERSHIP FUND; AND
(IV) MONEY RECEIVE D FROM THE SALE OF G ENERAL
OBLIGATION BONDS .
(6) THE PARTNERSHIP FUND MAY BE USED FOR THE PURPOSE
IDENTIFIED IN PARAGR APH (2) OF THIS SUBSECTION .
(7) THE STATE TREASURER SHALL INVES T THE MONEY OF THE
PARTNERSHIP FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE
INVESTED.
(8) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER ,
THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION
TO THE PARTNERSHIP PROGRAM TRANSFERRING THE AMOUNT OF
UNENCUMBERED AND UNA PPROPRIATED FUNDS IN THE PARTNERSHIP FUND TO
THE QUALIFIED COOPER ATING NONPROFIT ORGA NIZATION FOR THE PUR POSE
IDENTIFIED IN PARAGR APH (2) OF THIS SUBSECTION .
(E) (1) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, THE TRUST SHALL
TRANSFER TO THE QUAL IFIED COOPERATING NO NPROFIT ORGANIZATIO N THE
FUNDS APPROPRIATED T O THE PARTNERSHIP PROGRAM FOR THE CURRE NT FISCAL
YEAR.
(II) TO THE EXTENT POSSIBL E, THE GOAL WILL BE TO
PRESERVE THE CORPUS OF THE PARTNERSHIP FUND AS A REVOLVING F UND.
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , THE QUALIFIED COOPER ATING NONPROFIT ORGA NIZATION SHALL
MAINTAIN A SEPARATE INTERNAL ACCOUNT FOR FUNDS PROVIDED FROM THE
PARTNERSHIP FUND.
(II) SUBJECT TO THE APPROV AL OF THE QUALIFIED
COOPERATING NONPROFI T ORGANIZATION ’S INVESTMENT POL ICY BY THE BOARD
OF DIRECTORS OF THE QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION,
FUNDS MAY BE COMMING LED WITH OTHER FUNDS OF THE ORGANIZATION IF THE
FUNDS CAN BE ACCOUNT ED FOR INDEPENDENTLY OF OTHER FUNDS .
WES MOORE, Governor Ch. 204
– 9 –
(3) ON THE TRANSFER OF FU NDS TO THE PARTNERSHIP FUND, THE
USE OF FUNDS IS NO L ONGER SUBJECT TO § 5A–325 OF THIS SUBTITLE.
(F) (C) THE A QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION
SELECTED TO ADMINISTER THE PARTNERSHIP PROGRAM RECEIVING FUNDS FROM
THE TRUST, IN COORDINATION WITH THE DIRECTOR, SHALL ADOPT APPROPRI ATE
GUIDELINES TO CARRY OUT THE PURPOSES OF THE PARTNERSHIP PROGRAM
ENUMERATED IN SUBSEC TION (B) OF THIS SECTION.
(G) (D) THE A QUALIFIED COOPERATIN G NONPROFIT ORGANIZA TION
SHALL MAKE THE FOLLO WING INFORMATION AVA ILABLE ON ITS WEBSITE:
(1) THE GUIDELINES ESTAB LISHED UNDER SUBSECT ION (F) (C) OF
THIS SECTION;
(2) THE AVAILABILITY OF PARTNERSHIP PROGRAM FUNDS; AND
(3) INFORMATION ON PROJE CTS RECEIVING FINANC IAL ASSISTANCE
FROM THE PARTNERSHIP FUND TRANSFERRED FUNDS .
(H) (E) (1) ON OR BEFORE JUNE 30 EACH YEAR, THE A QUALIFIED
COOPERATING NONPROFI T ORGANIZATION SHALL PROVIDE AN ANNUAL RE PORT TO
THE TRUST OUTLINING THE USE, ACCOUNTING , AND SUCCESS OF THE
PARTNERSHIP FUND ALL FUNDS RECEIVED .
(2) THE ANNUAL FINANCIAL REVIEW OR AUDIT OF T HE
ORGANIZATION SHALL B E PROVIDED AT THE RE QUEST OF THE TRUST TO CONFIRM
THE INTENDED USE OF THE PARTNERSHIP FUND TRANSFERRED FUNDS .
SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, on or before July 31, 2023, the Governor shall transfer the funds
appropriated in fiscal year 2024 for the Historic Preservation Loan Program established
under § 5A–327 of the State Finance and Procurement Article to the Historic Preservation
Partnership Program established under § 5A–327 of the State Finance and Procurement
Article, as enacted by Section 1 of this Act.
SECTION 3. AND BE IT FURTHER ENACTED, That:
(a) After June 30, 2023, the State Treasurer shall credit any funds received for
the benefit of the Historic Preservation Loan Fund established under § 5A–327 of the State
Finance and Procurement Article to the Historic Preservation Partnership Fund
established under § 5A–327 of the State Finance and Procurement Article, as enacted by
Section 1 of this Act.
Ch. 204 2023 LAWS OF MARYLAND
– 10 –
(b) On or before July 31, 2023, all funds remaining in the Historic Preservation
Loan Fund established under § 5A–327 of the State Finance and Procurement Article shall
be transferred to the Historic Preservation Partnership Fund established under § 5A–327
of the State Finance and Procurement Article, as enacted by Section 1 of this Act, and shall
be used only in accordance with the provisions of § 5A–327 of the State Finance and
Procurement Article, as enacted by Section 1 of this Act.
(c) After July 31, 2023, the Historic Preservation Loan Fund established under §
5A–327 of the State Finance and Procurement Article shall be dissolved and no new
appropriations shall be made to the Historic Preservation Loan Fund.
SECTION 4. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2023.
Approved by the Governor, April 24, 2023.