EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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. *sb0166* SENATE BILL 166 C9 3lr1186 CF HB 150 By: Senators Waldstreicher and Hettleman Introduced and read first time: January 19, 2023 Assigned to: Education, Energy, and the Environment Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 10, 2023 CHAPTER ______ AN ACT concerning 1 Housing and Community Development – Adaptive Reuse 2 FOR the purpose of establishing that adaptive reuse of existing buildings to create 3 affordable multifamily housing is an eligible use of certain financial assistance 4 provided by the Department of Housing and Community Development; requiring the 5 Department to notify applicants for certain financial assistance that adaptive reuse 6 is an eligible use of funds; and generally relating to the creation and financing of 7 affordable multifamily housing through the adaptive reuse of existing buildings. 8 BY adding to 9 Article – Housing and Community Development 10 Section 1–102 to be under the amended subtitle “Subtitle 1. General Provisions” 11 Annotated Code of Maryland 12 (2019 Replacement Volume and 2022 Supplement) 13 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14 That the Laws of Maryland read as follows: 15 Article – Housing and Community Development 16 Subtitle 1. [Definitions] GENERAL PROVISIONS. 17 1–102. 18 2 SENATE BILL 166 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (2) “ADAPTIVE REUSE ” MEANS THE RETROFITTI NG AND 3 REPURPOSING OF AN EXISTING BUILD ING TO DEVELOP NEW D WELLING UNITS . 4 (3) “AFFORDABLE MULTIFAMIL Y HOUSING” MEANS A MULTIFAMILY 5 DWELLING WHERE ALL O R A PORTION OF THE D WELLING UNITS ARE RE SERVED FOR 6 INDIVIDUALS WHOSE HO USEHOLD INCOME IS LE SS THAN OR EQUAL TO A CERTAIN 7 LIMIT ON MAXIMUM HOU SEHOLD INCOME . 8 (B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 9 APPLIES TO ANY PROGR AM OPERATED BY THE DEPARTMENT THAT AWARD S LOANS 10 THAT MAY BE USED TO DEVELOP AFFORDABLE M ULTIFAMILY HOUSING . 11 (2) IF THE LAWS OR RE GULATIONS GOVERNING A PARTICULAR 12 PROGRAM ESTABLISH MO RE SPECIFIC RULES RE GARDING THE USE OF L OAN 13 PROCEEDS FOR ADAPTIV E REUSE, THE MORE SPECIFIC RU LES SHALL APPLY . 14 (C) (1) ADAPTIVE REUSE OF A P ROPERTY TO DEVELOP A FFORDABLE 15 MULTIFAMILY HOUSING IS AN ELIGIBLE USE OF THE PROCEE DS OF A LOAN COVERED 16 UNDER THIS SECTION . 17 (2) (I) THE SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 18 THE DEPARTMENT SHALL NOTI FY APPLICANTS FOR A LOAN COVERED UNDER T HIS 19 SECTION THAT ADAPTIV E REUSE OF A PROPERT Y TO DEVELOP AFFORDA BLE 20 MULTIFAMILY HOUSING IS AN ELIGIBLE USE O F LOAN PROCEEDS . 21 (II) THE NOTICE REQUIREMEN T UNDER SUBPARAGRAPH (I) OF 22 THIS PARAGRAPH DOES NOT APPLY WHEN AN IN DIVIDUAL APPLIES FOR A LOAN 23 UNDER A DEPARTMENT PROGRAM TH AT DOES NOT FOCUS ON HOUSING, INCLUDING 24 PROGRAMS WITHIN THE DIVISION OF NEIGHBORHOOD REVITALIZATION. 25 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26 October 1, 2023. 27