EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0506*
SENATE BILL 506
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By: Senator Muse
Introduced and read first time: February 3, 2023
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Town of Forest Heights (Prince George’s County) – Urban Renewal Authority 2
for Blight Clearance 3
FOR the purpose of granting the Town of Forest Heights in Prince George’s County the 4
authority to exercise urban renewal powers in areas zoned for commercial use for 5
blight clearance and redevelopment under Article III, Section 61 of the Maryland 6
Constitution; authorizing the municipality to levy certain taxes and issue general 7
obligation bonds and revenue bonds to carry out urban renewal powers; an d 8
generally relating to urban renewal authority for blight clearance for the Town of 9
Forest Heights in Prince George’s County. 10
BY adding to 11
Chapter 33 – Charter of the Town of Forest Heights 12
Section A1–101 through A1–114 to be under the new heading “Appendix I – Urban 13
Renewal Authority for Blight Clearance” 14
Public Local Laws of Maryland – Compilation of Municipal Charters 15
(2015 Replacement Edition and 2021 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Chapter 33 – Charter of the Town of Forest Heights 19
APPENDIX I – URBAN RENEWAL AUTHORITY FOR BLIGHT CLEARANCE 20
A1–101. DEFINITIONS. 21
(A) IN THIS APPENDIX THE FOLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
2 SENATE BILL 506
(B) “BLIGHTED AREA ” MEANS AN AREA OR SINGL E PROPERTY IN WHICH 1
THE BUILDING OR BUIL DINGS HAVE DECLINED IN PRODUCTIVITY BY R EASON OF 2
OBSOLESCENCE , DEPRECIATION , OR OTHER CAUSES TO A N EXTENT THAT THEY N O 3
LONGER JUSTIFY FUNDA MENTAL REPAIRS AND A DEQUATE MAINTENANCE . 4
(C) “BONDS” MEANS ANY BONDS (INCLUDING REFUNDING BONDS), NOTES, 5
INTERIM CERTIFICATES , CERTIFICATES OF INDE BTEDNESS, DEBENTURES , OR 6
OTHER OBLIGATIONS . 7
(D) “FEDERAL GOVERNMENT ” MEANS THE UNITED STATES OF AMERICA OR 8
ANY AGENCY OR INSTRU MENTALITY, CORPORATE OR OTHERWI SE, OF THE UNITED 9
STATES OF AMERICA. 10
(E) “MUNICIPALITY” MEANS THE TOWN OF FOREST HEIGHTS, MARYLAND. 11
(F) “PERSON” MEANS ANY INDIVIDUAL , FIRM, PARTNERSHIP , 12
CORPORATION , COMPANY, ASSOCIATION, JOINT STOCK ASSOCIAT ION, OR BODY 13
POLITIC. IT INCLUDES ANY TRUST EE, RECEIVER, ASSIGNEE, OR OTHER PERSON 14
ACTING IN SIMILAR RE PRESENTATIVE CAPACIT Y. 15
(G) “URBAN RENEWAL AREA ” MEANS A BLIGHTED ARE A WHICH THE 16
MUNICIPALITY DESIGNA TES AS APPROPRIATE F OR AN URBAN RENEWAL PROJECT. 17
(H) “URBAN RENEWAL PLAN ” MEANS A PLAN , AS IT EXISTS FROM TIME TO 18
TIME, FOR AN URBAN RENEWAL PROJECT. THE PLAN SHALL BE SUF FICIENTLY 19
COMPLETE TO INDICATE ANY LAND ACQUISITION , DEMOLITION, AND REMOVAL OF 20
STRUCTURES , REDEVELOPMENT , IMPROVEMENTS , AND REHABILITATION A S MAY BE 21
PROPOSED TO BE CARRI ED OUT IN THE URBAN RENEWAL AR EA, ZONING AND 22
PLANNING CHANGES , IF ANY, LAND USES, MAXIMUM DENSITY , AND BUILDING 23
REQUIREMENTS . 24
(I) “URBAN RENEWAL PROJECT ” MEANS UNDERTAKINGS A ND ACTIVITIES 25
OF A MUNICIPALITY IN AN URBAN RENEWAL ARE A FOR THE ELIMINATIO N AND FOR 26
THE PREVENTION OF THE DE VELOPMENT OR SPREAD OF BLIGHT, AND MAY INVOLVE 27
CLEARANCE AND REDEVE LOPMENT IN AN URBAN RENEWAL AREA , OR 28
REHABILITATION OR CO NSERVATION IN AN URB AN RENEWAL AREA , OR ANY 29
COMBINATION OR PART OF THEM IN ACCORDANC E WITH AN URBAN RENE WAL PLAN. 30
THESE UNDERTAKINGS AN D ACTIVITIES MAY INC LUDE: 31
(1) ACQUISITION OF A BLIG HTED AREA OR PORTION OF THE 32
BLIGHTED AREA ; 33
(2) DEMOLITION AND REMOVA L OF BUILDINGS AND I MPROVEMENTS ; 34 SENATE BILL 506 3
(3) INSTALLATION , CONSTRUCTION OR RECO NSTRUCTION OF 1
STREETS, UTILITIES, PARKS, PLAYGROUNDS , AND OTHER IMPROVEMEN TS 2
NECESSARY FOR CARRYI NG OUT THE URBAN REN EWAL OBJECTIVES OF T HIS 3
APPENDIX IN ACCORDAN CE WITH THE URBAN RE NEWAL PLAN; 4
(4) DISPOSITION OF ANY PR OPERTY ACQUIRED IN T HE URBAN 5
RENEWAL AREA , INCLUDING SALE , INITIAL LEASING, OR RETENTION BY THE 6
MUNICIPALITY ITSELF , AT ITS FAIR VALUE FO R USES IN ACCORDANCE WITH THE 7
URBAN RENEWAL PLAN ; 8
(5) CARRYING OUT PLANS FO R A PROGRAM OF VOLUN TARY OR 9
COMPULSORY REPAIR AN D REHABILITATION OF BUILDINGS OR OTHER 10
IMPROVEMENTS IN ACCORDANCE WITH THE URBAN RENEWAL PLAN ; 11
(6) ACQUISITION OF ANY OT HER REAL PROPERTY IN THE URBAN 12
RENEWAL AREA WHERE N ECESSARY TO ELIMINAT E UNHEALTHFUL , UNSANITARY, 13
OR UNSAFE CONDITIONS , LESSEN DENSITY , ELIMINATE OBSOLETE O R OTHER USES 14
DETRIMENTAL TO THE PUBLIC WELFARE , OR OTHERWISE TO REMO VE OR PREVENT 15
THE SPREAD OF BLIGHT OR DETERIORATION , OR TO PROVIDE LAND F OR NEEDED 16
PUBLIC FACILITIES ; AND 17
(7) THE PRESERVATION , IMPROVEMENT , OR EMBELLISHMENT OF 18
HISTORIC STRUCTURES OR MONUMENTS . 19
A1–102. POWERS. 20
(A) THE MUNICIPALITY MAY UNDERTAKE AND CARRY OUT URBAN RENEWAL 21
PROJECTS IN AREAS OF THE MUNICIPALITY THA T ARE ZONED FOR COMM ERCIAL 22
USE. 23
(B) THESE PROJECTS SHALL BE LIMITED: 24
(1) TO BLIGHT CLEARANCE I N BLIGHTED AREAS AND 25
REDEVELOPMENT OR THE REHABILITATION OF BLIGHTED AREAS ; 26
(2) TO ACQUIRE IN CONNECT ION WITH THOSE PROJE CTS, WITHIN 27
THE CORPORATE LIMITS OF THE MUNICIPALITY , LAND AND PROPERTY OF EVERY 28
KIND AND ANY RIGHT , INTEREST, FRANCHISE, EASEMENT, OR PRIVILEGE , 29
INCLUDING LAND OR PR OPERTY AND ANY RIGHT OR INTEREST ALREADY D EVOTED 30
TO PUBLIC USE, BY PURCHASE, LEASE, GIFT, CONDEMNATION , OR ANY OTHER LEGAL 31
MEANS; AND 32
4 SENATE BILL 506
(3) TO SELL, LEASE, CONVEY, TRANSFER, OR OTHERWISE DISPOSE OF 1
ANY OF THE LAND OR P ROPERTY, REGARDLESS OF WHETHE R OR NOT IT HAS BEEN 2
DEVELOPED , REDEVELOPED , ALTERED, OR IMPROVED AND IRRE SPECTIVE OF THE 3
MANNER OR MEANS IN O R BY WHICH IT MAY HA VE BEEN ACQUIRED , TO ANY PRIVATE, 4
PUBLIC, OR QUASI–PUBLIC CORPORATION , PARTNERSHIP , ASSOCIATION, PERSON, 5
OR OTHER LEGAL ENTIT Y. 6
(C) LAND OR PROPERTY TAKE N BY THE MUNICIPALITY FOR ANY OF THESE 7
PURPOSES OR IN CONNE CTION WITH THE EXERC ISE OF ANY OF THE PO WERS WHICH 8
ARE GRANTED BY THIS APPENDIX TO THE MUNI CIPALITY BY EXERCISI NG THE 9
POWER OF EMINENT DOM AIN MAY NOT BE TAKEN WITHOUT JUST COMPENS ATION, 10
AS AGREED ON BETWEEN THE PARTIES , OR AWARDED BY A JURY , BEING FIRST PAID 11
OR TENDERED TO THE P ARTY ENTITLED TO THE COMPENSATION . 12
(D) ALL LAND OR PROPERTY NEEDED OR TAKEN BY T HE EXERCISE OF THE 13
POWER OF EMINENT DOM AIN BY THE MUNICIPAL ITY FOR ANY OF THESE PURPOSES 14
OR IN CONNECTION WITH TH E EXERCISE OF ANY OF THE POWERS GRANTED B Y THIS 15
APPENDIX IS DECLARED TO BE NEEDED OR TAKE N FOR PUBLIC USES AN D 16
PURPOSES. 17
(E) ANY OR ALL OF THE ACT IVITIES AUTHORIZED P URSUANT TO THIS 18
APPENDIX CONSTITUTE GOVERNMENTAL FUNCTIO NS UNDERTAKEN FOR PUBLI C 19
USES AND PURPOSES AN D THE POWER OF TAXAT ION MAY BE EXERCISED , PUBLIC 20
FUNDS EXPENDED , AND PUBLIC CREDIT EX TENDED IN FURTHERANC E OF THEM. 21
A1–103. ADDITIONAL POWERS . 22
THE MUNICIPALITY HAS THE FOLLOWING ADDITI ONAL POWERS . THESE 23
POWERS A RE DECLARED TO BE NE CESSARY AND PROPER T O CARRY INTO FULL 24
FORCE AND EFFECT THE SPECIFIC POWERS GRAN TED IN THIS APPENDIX AND TO 25
FULLY ACCOMPLISH THE PURPOSES AND OBJECTS CONTEMPLATED BY THE 26
PROVISIONS OF THIS S ECTION: 27
(1) TO MAKE OR HAVE MADE ALL SURVEYS AND PLANS NECESSARY TO 28
THE CARRYING OUT OF THE PURPOSES OF THIS APPENDIX AND TO ADOP T OR 29
APPROVE, MODIFY, AND AMEND THOSE PLAN S. THESE PLANS MAY INCLU DE, BUT 30
ARE NOT LIMITED TO : 31
(I) PLANS FOR CARRYING OU T A PROGRAM OF VOLUN TARY OR 32
COMPULSORY REPAIR A ND REHABILITATION OF BUILDINGS AND IMPROV EMENTS; 33
(II) PLANS FOR THE ENFORCE MENT OF CODES AND 34
REGULATIONS RELATING TO THE USE OF LAND A ND THE USE AND OCCUP ANCY OF 35 SENATE BILL 506 5
BUILDINGS AND IMPROV EMENTS AND TO THE CO MPULSORY REPAIR , 1
REHABILITATION , DEMOLITION, OR REMOVAL OF BUILDINGS A ND IMPROVEMENTS ; 2
AND 3
(III) APPRAISALS, TITLE SEARCHES , SURVEYS, STUDIES, AND 4
OTHER PLANS AND WORK NECESSARY TO PREPARE FOR THE UNDERTAKING OF 5
URBAN RENEWAL PROJEC TS AND RELATED ACTIV ITIES, AND TO APPLY FOR , 6
ACCEPT, AND UTILIZE GRANT S OF FUNDS FROM THE FEDERAL GOVERNMENT O R ANY 7
OTHER GOVERNMENTAL E NTITY FOR THOSE PURP OSES; 8
(2) TO PREPARE PLANS FOR THE RELOCATION OF PE RSONS 9
(INCLUDING FAMILIES , BUSINESS CONCERNS , AND OTHERS ) DISPLACED FROM AN 10
URBAN RENEWAL AREA , AND TO MAKE RELOCATI ON PAYMENTS TO OR WI TH 11
RESPECT TO THOSE PER SONS FOR MOVING EXPE NSES AND LOSSES OF P ROPERTY 12
FOR WHICH REIMBURSEM ENT OR COMPENSATION IS NOT OTHERWISE MAD E, 13
INCLUDING THE MAKING OF PAYMENTS FINANCED BY THE FEDERAL GOVER NMENT; 14
(3) TO APPROPRIATE WHATEV ER FUNDS AND MAKE WHATEVE R 15
EXPENDITURES AS MAY BE NECESSARY TO CARR Y OUT THE PURPOSES O F THIS 16
APPENDIX, INCLUDING, BUT NOT LIMITED : 17
(I) TO THE PAYMENT OF ANY AND ALL COSTS AND EX PENSES 18
INCURRED IN CONNECTI ON WITH, OR INCIDENTAL TO , THE ACQUISITION OF L AND 19
OR PROPERTY, AND FOR THE DEMOLITI ON, REMOVAL, RELOCATION , RENOVATION , 20
OR ALTERATION OF LAN D, BUILDINGS, STREETS, HIGHWAYS, ALLEYS, UTILITIES, OR 21
SERVICES, AND OTHER STRUCTURES OR IMPROVEMENTS , AND FOR THE 22
CONSTRUCTION , RECONSTRUCTION , INSTALLATION, RELOCATION, OR REPAIR OF 23
STREETS, HIGHWAYS, ALLEYS, UTILITIES, OR SERVICES, IN CONNECTION WITH 24
URBAN RENEWAL PROJEC TS; 25
(II) TO LEVY TAXES AND ASS ESSMENTS FOR THOSE P URPOSES; 26
(III) TO BORROW MONEY AND T O APPLY FOR AND ACCE PT 27
ADVANCES, LOANS, GRANTS, CONTRIBUTIONS , AND ANY OTHER FORM O F FINANCIAL 28
ASSISTANCE FROM THE FEDERAL GOVERNMENT , THE STATE, COUNTY, OR OTHER 29
PUBLIC BODIES, OR FROM ANY SOURCES , PUBLIC OR PRIVATE , FOR THE PURPOSES 30
OF THIS APPENDIX , AND TO GIVE WHATEVER SECURITY AS MAY BE R EQUIRED FO R 31
THIS FINANCIAL ASSIS TANCE; AND 32
(IV) TO INVEST ANY URBAN R ENEWAL FUNDS HELD IN RESERVES 33
OR SINKING FUNDS OR ANY OF THESE FUNDS N OT REQUIRED FOR IMME DIATE 34
DISBURSEMENT IN PROP ERTY OR SECURITIES W HICH ARE LEGAL INVES TMENTS FOR 35
OTHER MUNICIPAL FUND S; 36 6 SENATE BILL 506
(4) (I) TO HOLD , IMPROVE, CLEAR, OR PREPARE FOR 1
REDEVELOPMENT ANY PR OPERTY ACQUIRED IN C ONNECTION WITH URBAN 2
RENEWAL PROJECTS ; 3
(II) TO MORTGAGE , PLEDGE, HYPOTHECATE , OR OTHERWISE 4
ENCUMBER THAT PROPER TY; AND 5
(III) TO INSURE OR PROVIDE FOR THE INSURA NCE OF THE 6
PROPERTY OR OPERATIO NS OF THE MUNICIPALI TY AGAINST ANY RISKS OR 7
HAZARDS, INCLUDING THE POWER TO PAY PREMIUMS ON A NY INSURANCE ; 8
(5) TO MAKE AND EXECUTE A LL CONTRACTS AND OTH ER 9
INSTRUMENTS NECESSAR Y OR CONVENIENT TO T HE EXERCISE OF ITS P OWERS 10
UNDER THIS APPENDIX , INCLUDING THE POWER TO ENTER INTO AGREEM ENTS WITH 11
OTHER PUBLIC BODIES OR AGENCIES (THESE AGREEMENTS MAY EXTEND OVER ANY 12
PERIOD, NOTWITHSTANDING ANY PROVISION OR RULE OF LAW TO THE CONTRARY ), 13
AND TO INCLUDE IN AN Y CONTRACT FOR FINAN CIAL ASSISTANCE WITH THE 14
FEDERAL GOVERNMENT F OR OR WITH RESPECT T O AN URBAN RENEWAL P ROJECT 15
AND RELATED ACTIVITI ES ANY CONDITIONS IM POSED PURSUANT TO FE DERAL LAWS 16
AS THE MUNICIPALITY CONSIDERS REASONABLE AND APPROPRIATE ; 17
(6) TO ENTER INTO ANY BUI LDING OR PRO PERTY IN ANY URBAN 18
RENEWAL AREA IN ORDE R TO MAKE INSPECTION S, SURVEYS, APPRAISALS, 19
SOUNDINGS, OR TEST BORINGS , AND TO OBTAIN AN ORD ER FOR THIS PURPOSE FROM 20
THE CIRCUIT COURT FO R THE COUNTY IN WHIC H THE MUNICIPALITY I S SITUATED IN 21
THE EVENT ENTRY IS D ENIED OR RESISTED; 22
(7) TO PLAN, REPLAN, INSTALL, CONSTRUCT, RECONSTRUCT , 23
REPAIR, CLOSE, OR VACATE STREETS , ROADS, SIDEWALKS, PUBLIC UTILITIES , 24
PARKS, PLAYGROUNDS , AND OTHER PUBLIC IMP ROVEMENTS IN CONNECT ION WITH 25
AN URBAN RENEWAL PRO JECT AND TO MAKE EXC EPTIONS FROM BUILDING 26
REGULATIONS ; 27
(8) TO GENERALLY ORGANIZE , COORDINATE , AND DIRECT THE 28
ADMINISTRATION OF TH E PROVISIONS OF THIS APPENDIX AS THEY APP LY TO THE 29
MUNICIPALITY IN ORDE R THAT THE OBJECTIVE OF REMEDYING BLIGHTE D AREAS 30
AND PREVENTING ITS C AUSES WITHIN THE MUNICIPALITY M AY BE PROMOTED AND 31
ACHIEVED MOST EFFECT IVELY; AND 32
(9) TO EXERCISE ALL OR AN Y PART OR COMBINATIO N OF THE 33
POWERS GRANTED IN TH IS APPENDIX. 34
SENATE BILL 506 7
A1–104. ESTABLISHMENT OF URBA N RENEWAL AGENCY . 1
(A) A MUNICIPALITY MAY ITS ELF EXERCISE ALL THE POWERS GRANTED BY 2
THIS APPENDIX , OR MAY, IF ITS LEGISLATIVE B ODY BY ORDINANCE DET ERMINES 3
THE ACTION TO BE IN THE PUBLIC INTEREST , ELECT TO HAVE THE PO WERS 4
EXERCISED BY A SEPAR ATE PUBLIC BODY OR A GENCY. 5
(B) IN THE EVENT THE LEGI SLATIVE BODY MAKES T HAT DETERMINATION , 6
IT SHALL PROCEED BY ORDINANCE TO ESTABLI SH A PUBLIC BODY OR AGENCY TO 7
UNDERTAKE IN THE MUN ICIPALITY THE ACTIVI TIES AUTHORIZED BY T HIS 8
APPENDIX. 9
(C) THE ORDINANCE SHALL I NCLUDE PROVISIONS ES TABLISHING THE 10
NUMBER OF MEMBERS OF THE PUBLIC BODY OR AGENCY, THE MANNER OF THEIR 11
APPOINTMENT AND REMO VAL, AND THE TERMS OF THE MEMBERS AND THEIR 12
COMPENSATION . 13
(D) THE ORDINANCE MAY INC LUDE WHATEVER ADDITI ONAL PROVISIONS 14
RELATING TO THE ORGA NIZATION OF THE PUBL IC BODY OR AGENCY AS MAY BE 15
NECESSARY. 16
(E) IN THE EVENT THE LEGI SLATIVE BODY ENACTS THIS ORDINANCE , ALL 17
OF THE POWERS BY THI S APPENDIX GRANTED T O THE MUNICIPALITY , FROM THE 18
EFFECTIVE DATE OF TH E ORDINANCE, ARE VESTED IN THE PU BLIC BODY OR AGENCY 19
ESTABLISHED BY THE O RDINANCE. 20
A1–105. POWERS WITHHE LD FROM THE AGENCY . 21
THE AGENCY MAY NOT : 22
(1) PASS A RESOLUTION TO INITIATE AN URBAN RE NEWAL PROJECT 23
PURSUANT TO SECTIONS A1–102 AND A1–103 OF THIS APPENDIX ; 24
(2) ISSUE GENERAL OBLIGAT ION BONDS PURSUANT T O SECTION 25
A1–111 OF THIS APPENDIX ; OR 26
(3) APPROPRIATE FUNDS OR LEVY TAXES AND ASSES SMENTS 27
PURSUANT TO SECTION A1–103(3) OF THIS APPENDIX . 28
A1–106. INITIATION OF PROJECT . 29
IN ORDER TO INITIATE AN URBAN RENEWAL PRO JECT, THE LEGISLATIVE 30
BODY OF THE MUNICIPA LITY SHALL ADOPT A R ESOLUTION WHICH : 31 8 SENATE BILL 506
(1) FINDS THAT ONE OR MOR E BLIGHTED AREAS EXI ST IN THE 1
MUNICIPALITY; 2
(2) LOCATES AND DEFINES T HE BLIGHTED AREA ; AND 3
(3) FINDS THAT THE REHABI LITATION, REDEVELOPMENT , OR A 4
COMBINATION OF THEM , OF THE AREA OR AREAS , IS NECESSARY AND IN THE 5
INTEREST OF THE PUBLIC HEALTH , SAFETY, MORALS, OR WELFARE OF THE 6
RESIDENTS OF THE MUN ICIPALITY. 7
A1–107. PREPARATION AND APPRO VAL OF PLAN FOR URBA N RENEWAL PROJECT . 8
(A) IN ORDER TO CARRY OUT THE PURPOSES OF THIS APPENDIX, THE 9
MUNICIPALITY SHALL H AVE PREPARED AN URBA N RENEWAL PLAN FOR BLIG HTED 10
AREAS IN THE MUNICIP ALITY AND SHALL APPR OVE THE PLAN FORMALL Y. THE 11
MUNICIPALITY SHALL H OLD A PUBLIC HEARING ON AN URBAN RENEWAL PROJECT 12
AFTER PUBLIC NOTICE OF IT BY PUBLICATION IN A NEWSPAPER HAVIN G A GENERAL 13
CIRCULATION WITHIN T HE CORPORATE LIMITS OF THE MUNICIPALITY . THE NOTICE 14
SHALL DESCRIBE THE T IME, DATE, PLACE, AND PURPOSE OF THE H EARING, SHALL 15
GENERALLY IDENTIFY T HE URBAN RENEWAL ARE A COVERED BY THE PLA N, AND 16
SHALL OUTLINE THE GE NERAL SCOPE OF THE U RBAN RENEWAL PROJECT UNDER 17
CONSIDERATION . FOLLOWING THE HEARING , THE MUNICIPALITY MAY APPROVE AN 18
URBAN RENEWAL PROJEC T AND THE PLAN THERE FOR IF IT FINDS THAT: 19
(1) A FEASIBLE METHOD EXIS TS FOR THE LOCATION OF ANY 20
FAMILIES OR NATURAL PERSONS WHO WILL BE DISPLACED FROM THE U RBAN 21
RENEWAL AREA IN DECENT , SAFE, AND SANITARY DWELLIN G ACCOMMODATIONS 22
WITHIN THEIR MEANS A ND WITHOUT UNDUE HAR DSHIP TO THE FAMILIE S OR 23
NATURAL PERSONS ; 24
(2) THE URBAN RENEWAL PLA N CONFORMS SUBSTANTI ALLY TO THE 25
MASTER PLAN OF THE M UNICIPALITY AS A WHO LE; AND 26
(3) THE URBAN RENEWAL PLA N WILL AFFORD MAXIMU M 27
OPPORTUNITY , CONSISTENT WITH THE SOUND NEEDS OF THE M UNICIPALITY AS A 28
WHOLE, FOR THE REHABILITATI ON OR REDEVELOPMENT OF THE URBAN RENEWAL 29
AREA BY PRIVATE ENTE RPRISE. 30
(B) AN URBAN RENEWAL PLAN MAY BE MODIFIE D AT ANY TIME . IF 31
MODIFIED AFTER THE L EASE OR SALE OF REAL PROPERTY IN THE URBA N RENEWAL 32
PROJECT AREA , THE MODIFICATION MAY BE CONDITIONED ON WH ATEVER 33
APPROVAL OF THE OWNE R, LESSEE, OR SUCCESSOR IN INTE REST AS THE 34 SENATE BILL 506 9
MUNICIPALITY CONSIDE RS ADVISABLE. IN ANY EVENT, IT SHALL BE SUBJECT TO 1
WHATEVER RIGHTS AT L AW OR IN EQUITY AS A LESSEE OR PURCHASER , OR THE 2
SUCCESSOR OR SUCCESS ORS IN INTEREST , MAY BE ENTITLED TO A SSERT. WHERE 3
THE PROPOSED MODIFIC ATION WILL CHANGE SU BSTANTIALLY THE URBA N 4
RENEWAL PLAN AS APPR OVED P REVIOUSLY BY THE MUN ICIPALITY, THE 5
MODIFICATION SHALL B E APPROVED FORMALLY BY THE MUNICIPALITY , AS IN THE 6
CASE OF AN ORIGINAL PLAN. 7
(C) ON THE APPROVAL BY TH E MUNICIPALITY OF AN URBAN RENEWAL PLAN 8
OR OF ANY MODIFICATI ON OF IT, THE PLAN OR MODIFICA TION SHALL BE 9
CONSIDERED TO BE IN FULL FORCE AND EFFEC T FOR THE RESPECTIVE URBAN 10
RENEWAL AREA . THE MUNICIPALITY MAY HAVE THE PLAN OR MOD IFICATION 11
CARRIED OUT IN ACCOR DANCE WITH ITS TERMS . 12
A1–108. DISPOSAL OF PROPERTY IN URBAN RENEWAL ARE A. 13
(A) THE MUNICIPALITY, BY ORDINANCE , MAY SELL, LEASE, OR OTHERWISE 14
TRANSFER REAL PROPER TY OR ANY INTEREST I N IT ACQUIRED BY IT FOR AN URBAN 15
RENEWAL PROJECT TO A NY PERSON FOR RESIDE NTIAL, RECREATIONAL , 16
COMMERCIAL , INDUSTRIAL, EDUCATIONAL , OR OTHER USES OR FOR PUBLIC USE, OR 17
IT MAY RETAIN THE PR OPERTY OR INTEREST F OR PUBLIC USE , IN ACCORDANCE 18
WITH THE URBAN RENEW AL PLAN AND SUBJECT TO WHATEVER COVENANT S, 19
CONDITIONS, AND RESTRICTIONS , INCLUDING COVENANTS RUNNING WITH THE 20
LAND, AS IT CONSIDERS NECE SSARY OR DESIRABLE T O ASSIST IN PREVENTING THE 21
DEVELOPMENT OR SPREA D OF FUTURE BLIGHTED AREAS OR TO OTHERWIS E CARRY 22
OUT THE PURPOSES OF THIS APPENDIX. THE PURCHASERS OR LES SEES AND THEIR 23
SUCCESSORS AND ASSIG NS SHALL BE OBLIGATE D TO DEVOTE THE REAL PROPERTY 24
ONLY TO THE USES SPE CIFIED IN THE URBAN R ENEWAL PLAN AND MAY BE 25
OBLIGATED TO COMPLY WITH WHATEVER OTHER REQUIREMENTS THE 26
MUNICIPALITY DETERMI NES TO BE IN THE PUB LIC INTEREST, INCLUDING THE 27
OBLIGATION TO BEGIN WITHIN A REASONABLE TIME ANY IMPROVEMENT S ON THE 28
REAL PROPERTY REQUI RED BY THE URBAN REN EWAL PLAN. THE REAL PROPERTY 29
OR INTEREST MAY NOT BE SOLD, LEASED, OTHERWISE TRANSFERRE D, OR RETAINED 30
AT LESS THAN ITS FAI R VALUE FOR USES IN ACCORDANCE WITH THE URBAN 31
RENEWAL PLAN . IN DETERMINING THE FA IR VALUE OF REAL PRO PERTY FOR USES 32
IN ACCORDANCE WITH T HE URBAN RENEWAL PLA N, THE MUNICIPALITY SHA LL TAKE 33
INTO ACCOUNT AND GIV E CONSIDERATION TO T HE USES PROVIDED IN THE PLAN, 34
THE RESTRICTIONS ON , AND THE COVENANTS , CONDITIONS, AND OBLIGATIONS 35
ASSUMED BY THE PURCH ASER OR LESSEE OR BY THE MUNICIPALITY RETAININ G THE 36
PROPERTY, AND THE OBJECTIVES O F THE PLAN FOR THE P REVENTION OF THE 37
RECURRENCE OF BLIGHT ED AREAS. IN ANY INSTRUMENT OR CONVEYANCE TO A 38
PRIVATE PURCHASER OR LESSEE, THE MUNICIPALITY MAY PROVIDE THAT THE 39
PURCHASER OR LESSEE MAY NOT SELL, LEASE, OR OTHERWISE TRANSFE R THE REAL 40 10 SENATE BILL 506
PROPERTY WITHOUT THE PRIOR WRITTEN CONSEN T OF THE MUNICIPALIT Y UNTIL 1
THE PURCHASER OR LES SEE HAS COMPLETED TH E CONSTRUCTION OF AN Y OR ALL 2
IMPROVEMENTS WHICH T HE PURCHASER OR LESS EE HAS BEEN OBLIGATE D TO 3
CONSTRUCT ON THE PROPERTY . REAL PROPERTY ACQUIRE D BY THE MUNICIPALIT Y 4
WHICH, IN ACCORDANCE WITH T HE PROVISIONS OF THE URBAN RENEWAL PLAN , IS 5
TO BE TRANSFERRED , SHALL BE TRANSFERRED AS RAPIDLY AS FEASIB LE IN THE 6
PUBLIC INTEREST CONS ISTENT WITH THE CARR YING OUT OF THE PROVISIONS OF 7
THE URBAN RENEWAL PL AN. ANY CONTRACT FOR THE TRANSFER AND THE URB AN 8
RENEWAL PLAN (OR ANY PART OR PARTS OF THE CONTRACT OR P LAN AS THE 9
MUNICIPALITY DETERMI NES) MAY BE RECORDED IN T HE LAND RECORDS OF T HE 10
COUNTY IN WHICH THE MUNICIPALITY IS SIT UATED IN A MANNER SO AS TO AFFORD 11
ACTUAL OR CONSTRUCTI VE NOTICE OF IT. 12
(B) THE MUNICIPALITY , BY ORDINANCE , MAY DISPOSE OF REAL PROPERTY 13
IN AN URBAN RENEWAL AREA TO PRIVATE PERS ONS. THE MUNICIPALITY MAY , BY 14
PUBLIC NOTICE BY PUB LICATION IN A NEWSPA PER HAVI NG A GENERAL 15
CIRCULATION IN THE C OMMUNITY, INVITE PROPOSALS FRO M AND MAKE AVAILABLE 16
ALL PERTINENT INFORM ATION TO PRIVATE RED EVELOPERS OR ANY PER SONS 17
INTERESTED IN UNDERT AKING TO REDEVELOP O R REHABILITATE AN UR BAN 18
RENEWAL AREA , OR ANY PART THEREOF . THE NOTICE SHALL IDENTIFY TH E AREA, 19
OR PORTION THEREOF , AND SHALL STATE THAT PROPOSALS SHALL BE M ADE BY 20
THOSE INTERESTED WIT HIN A SPECIFIED PERI OD. THE MUNICIPALITY SHAL L 21
CONSIDER ALL REDEVEL OPMENT OR REHABILITA TION PROPOSALS AND T HE 22
FINANCIAL AND LEGAL ABILITY OF THE PERSONS MAKING P ROPOSALS TO CARRY 23
THEM OUT, AND MAY NEGOTIATE WI TH ANY PERSONS FOR P ROPOSALS FOR THE 24
PURCHASE, LEASE, OR OTHER TRANSFER OF ANY REAL PROPERTY AC QUIRED BY 25
THE MUNICIPALITY IN THE URBAN RENEWAL AR EA. THE MUNICIPALITY MAY ACCEPT 26
ANY PROPOS AL AS IT DEEMS TO BE IN THE PUBLIC INTERE ST AND IN FURTHERANC E 27
OF THE PURPOSES OF T HIS APPENDIX. THEREAFTER , THE MUNICIPALITY MAY 28
EXECUTE AND DELIVER CONTRACTS, DEEDS, LEASES, AND OTHER INSTRUMENT S 29
AND TAKE ALL STEPS N ECESSARY TO EFFECTUA TE THE TRANSFERS . 30
(C) THE MUNICIPALITY MAY OPERATE TEMPORARILY AND MAINTAIN REAL 31
PROPERTY ACQUIRED BY IT IN AN URBAN RENEW AL AREA FOR OR IN CO NNECTION 32
WITH AN URBAN RENEWA L PROJECT PENDING TH E DISPOSITION OF THE PROPERTY 33
AS AUTHORIZED IN THI S APPENDIX, WITHOUT REGARD TO T HE PROVISIONS OF 34
SUBSECTION (A) OF THIS SECTION , FOR USES AND PURPOSE S CONSIDERED 35
DESIRABLE EVEN THOUG H NOT IN CONFORMITY WITH THE URBAN RENEW AL PLAN. 36
(D) ANY INSTRUMENT EXECUT ED BY THE MUNICIPALI TY AND PURPORTING 37
TO CONVEY ANY RIGHT , TITLE, OR INTEREST IN ANY PROPERTY UNDE R THIS 38
APPENDIX SHALL BE PR ESUMED CONCLUSIVELY TO HAVE BEEN EXECUTE D IN 39
COMPLIANCE WITH THE PROVISIONS OF THIS A PPENDIX INSOFAR AS T ITLE OR 40 SENATE BILL 506 11
OTHER INTEREST OF AN Y BONA FIDE PURCHASE RS, LESSEES, OR TRANSFEREES OF 1
THE PROPERTY IS CONC ERNED. 2
A1–109. EMINENT DOMAIN . 3
CONDEMNATION OF LAND OR PROPERTY UNDER TH E PROVISIONS OF THIS 4
APPENDIX SHALL BE IN ACCORDANCE WITH THE PROCEDURE PROVIDED I N THE 5
REAL PROPERTY ARTICLE OF THE ANNOTATED CODE OF MARYLAND. 6
A1–110. ENCOURAGEMENT OF PRIV ATE ENTERPR ISE. 7
THE MUNICIPALITY , TO THE EXTENT IT DET ERMINES TO BE FEASIB LE IN 8
CARRYING OUT THE PRO VISIONS OF THIS APPE NDIX, SHALL AFFORD MAXIMUM 9
OPPORTUNITY TO THE R EHABILITATION OR RED EVELOPMENT OF ANY UR BAN 10
RENEWAL AREA BY PRIV ATE ENTERPRISE CONSI STENT WITH THE SOUND NEEDS OF 11
THE MUNICIPALITY AS A WHOLE. THE MUNICIPALITY SHAL L GIVE CONSIDERATION 12
TO THIS OBJECTIVE IN EXERCISING ITS POWER S UNDER THIS APPENDI X. 13
A1–111. GENERAL OBLIGATION BO NDS. 14
FOR THE PURPOSE OF FI NANCING AND CARRYING OUT AN URBAN RENEWAL 15
PROJECT AND RELATED ACTIV ITIES, THE MUNICIPALITY MAY ISSUE AND SELL ITS 16
GENERAL OBLIGATION B ONDS. ANY BONDS ISSUED BY T HE MUNICIPALITY 17
PURSUANT TO THIS SEC TION SHALL BE ISSUED IN THE MANNER AND WI THIN THE 18
LIMITATIONS PRESCRIB ED BY APPLICABLE LAW FOR THE ISSUANC E AND 19
AUTHORIZATION OF GEN ERAL OBLIGATION BOND S BY THE MUNICIPALIT Y, AND 20
ALSO WITHIN LIMITATI ONS DETERMINED BY TH E MUNICIPALITY. 21
A1–112. REVENUE BONDS . 22
(A) IN ADDITION TO THE AU THORITY CONFERRED BY SECTION A1–111 OF 23
THIS APPENDIX, THE MUNICIPALITY MAY ISSUE REVENUE BONDS TO FINANCE THE 24
UNDERTAKING OF ANY U RBAN RENEWAL PROJECT AND RELATED ACTIVITI ES. ALSO, 25
IT MAY ISSUE REFUNDI NG BONDS FOR THE PAY MENT OR RETIREMENT O F THE 26
BONDS ISSUED PREVIOU SLY BY IT. THE BONDS SHALL BE MA DE PAYABLE, AS TO 27
BOTH PRINCIPAL AND INTEREST , SOLELY FROM THE INCO ME, PROCEEDS, 28
REVENUES, AND FUNDS OF THE MUN ICIPALITY DERIVED FR OM OR HELD IN 29
CONNECTION WITH THE UNDERTAKING AND CARR YING OUT OF URBAN RE NEWAL 30
PROJECTS UNDER THIS APPENDIX. HOWEVER, PAYMENT OF THE BONDS , BOTH AS 31
TO PRINCIPAL AND INTEREST , MAY BE FURTHER SECUR ED BY A PLEDGE OF AN Y 32
LOAN, GRANT, OR CONTRIBUTION FROM THE FEDERAL GOVERNME NT OR OTHER 33
SOURCE, IN AID OF ANY URBAN RENEWAL PROJECTS OF THE MUNICIPALITY UND ER 34
THIS APPENDIX, AND BY A MORTGAGE OF ANY URBAN RENEWAL PR OJECT, OR ANY 35 12 SENATE BILL 506
PART OF A PROJECT , TITLE TO WHICH IS IN THE MUNICIPALITY . IN ADDITION, THE 1
MUNICIPALITY MAY ENT ER INTO AN INDENTURE OF TRUST WITH ANY PR IVATE 2
BANKING INSTITUTION OF THIS STATE HAVING TRUST PO WERS AND MAY MAKE IN 3
THE INDENTURE OF TRU ST COVENANTS AND COMMITMENTS REQU IRED BY ANY 4
PURCHASER FOR THE AD EQUATE SECURITY OF T HE BONDS. 5
(B) BONDS ISSUED UNDER TH IS SECTION DO NOT CO NSTITUTE AN 6
INDEBTEDNESS WITHIN THE MEANING OF ANY C ONSTITUTIONAL OR STA TUTORY 7
DEBT LIMITATION OR R ESTRICTION, ARE NOT SUBJECT TO THE PROVISIONS OF ANY 8
OTHER LAW OR CHARTER RELATING TO THE AUTH ORIZATION, ISSUANCE, OR SALE 9
OF BONDS , AND ARE EXEMPTED SPE CIFICALLY FROM THE R ESTRICTIONS 10
CONTAINED IN §§ 19–205 AND 19–206 OF THE LOCAL GOVERNMENT ARTICLE OF 11
THE ANNOTATED CODE OF MARYLAND. BONDS ISSUED UNDER TH E PROVISIONS OF 12
THIS APPENDIX ARE DE CLARED TO BE ISSUED FOR AN ESSENTIAL PUB LIC AND 13
GOVERNMENTAL PURPOSE AND, TOGETHER WITH INTERE ST ON THEM AND INCOM E 14
FROM THEM, ARE EXEMPT FROM ALL TAXES. 15
(C) BONDS ISSUED UNDER TH IS SECTION SHAL L BE AUTHORIZED BY 16
RESOLUTION OR ORDINA NCE OF THE LEGISLATI VE BODY OF THE MUNIC IPALITY. 17
THEY MAY BE ISSUED IN ONE OR MORE SERIES A ND SHALL: 18
(1) BEAR A DATE OR DATES ; 19
(2) MATURE AT A TIME OR T IMES; 20
(3) BEAR INTEREST AT A RA TE OR RATES; 21
(4) BE IN A DENOMINATION OR DE NOMINATIONS ; 22
(5) BE IN A FORM EITHER W ITH OR WITHOUT COUPO N OR 23
REGISTERED; 24
(6) CARRY A CONVERSION OR REGISTRATION PRIVILE GE; 25
(7) HAVE A RANK OR PRIORI TY; 26
(8) BE EXECUTED IN A MANN ER; 27
(9) BE PAYABLE IN A MEDIU M OF PAYMENT, AT A PLACE OR PLACES , 28
AND BE SUBJECT TO TE RMS OF REDEMPTION (WITH OR WITHOUT PREM IUM); 29
(10) BE SECURED IN A MANNE R; AND 30
SENATE BILL 506 13
(11) HAVE OTHER CHARACTERI STICS, AS ARE PROVIDED BY T HE 1
RESOLUTION, TRUST INDENTURE , OR MORTGAGE ISSUED P URSUANT TO IT. 2
(D) THESE BONDS MAY NOT B E SOLD AT LESS THAN PAR VALUE AT PUBLIC 3
SALES WHICH ARE HELD AFTER NOTICE IS PUBL ISHED PRIOR TO THE S ALE IN A 4
NEWSPAPER HAVING A G ENERAL CIRCULATION I N THE AREA IN WHICH THE 5
MUNICIPALITY IS LOCA TED AND IN WHATEVER OTHER MEDIUM OF PUBLICATION AS 6
THE MUNICIPALITY MAY DETERMINE. THE BONDS MAY BE EXCH ANGED ALSO FOR 7
OTHER BONDS ON THE B ASIS OF PAR. HOWEVER, THE BONDS MAY NOT BE SOLD TO 8
THE FEDERAL GOVERNME NT AT PRIVATE SALE A T LESS THAN PAR , AND, IN THE 9
EVENT LESS THAN ALL OF THE AUTHOR IZED PRINCIPAL AMOUN T OF THE BONDS IS 10
SOLD TO THE FEDERAL GOVERNMENT , THE BALANCE MAY NOT BE SOLD AT PRIVATE 11
SALE AT LESS THAN PA R AT AN INTEREST COS T TO THE MUNICIPALIT Y WHICH DOES 12
NOT EXCEED THE INTER EST COST TO THE MUNI CIPALITY OF THE PORT ION OF THE 13
BONDS SOLD TO THE FEDER AL GOVERNMENT . 14
(E) IN CASE ANY OF THE PU BLIC OFFICIALS OF TH E MUNICIPALITY WHOSE 15
SIGNATURES APPEAR ON ANY BONDS OR COUPONS ISSUED UNDER THIS AP PENDIX 16
CEASE TO BE OFFICIAL S OF THE MUNICIPALIT Y BEFORE THE DELIVER Y OF THE 17
BONDS OR IN THE EVENT ANY OF THE OFF ICIALS HAVE BECOME S UCH AFTER THE 18
DATE OF ISSUE OF THE M, THE BONDS ARE VALID AND BINDING OBLIGATI ONS OF THE 19
MUNICIPALITY IN ACCO RDANCE WITH THEIR TE RMS. ANY PROVISION OF ANY LAW 20
TO THE CONTRARY NOTW ITHSTANDING, ANY BONDS ISSUED PUR SUANT TO THIS 21
APPENDIX ARE FULLY N EGOTIABLE. 22
(F) IN ANY SUIT, ACTION, OR PROCEEDING INVOLV ING THE VALIDITY OR 23
ENFORCEABILITY OF AN Y BOND ISSUED UNDER THIS APPENDIX, OR THE SECURITY 24
FOR IT, ANY BOND WHICH RECIT ES IN SUBSTANCE THAT IT HAS BEEN ISSUED B Y THE 25
MUNICIPALITY IN CONNEC TION WITH AN URBAN R ENEWAL PROJECT SHALL BE 26
CONSIDERED CONCLUSIV ELY TO HAVE BEEN ISS UED FOR THAT PURPOSE , AND THE 27
PROJECT SHALL BE CON SIDERED CONCLUSIVELY TO HAVE BEEN PLANNED , 28
LOCATED, AND CARRIED OUT IN A CCORDANCE WITH THE P ROVISIONS OF THIS 29
APPENDIX. 30
(G) ALL BANKS, TRUST COMPANIES , BANKERS, SAVINGS BANKS , AND 31
INSTITUTIONS, BUILDING AND LOAN AS SOCIATIONS, SAVINGS AND LOAN 32
ASSOCIATIONS, INVESTMENT COMPANIES , AND OTHER PERSONS CA RRYING ON A 33
BANKING OR INVESTMEN T BUSINESS; ALL INSURANCE COMPANIES, INSURANCE 34
ASSOCIATIONS, AND OTHER PERSONS CA RRYING ON AN INSURAN CE BUSINESS; AND 35
ALL EXECUTORS , ADMINISTRATORS , CURATORS, TRUSTEES, AND OTHER 36
FIDUCIARIES, MAY LEGALLY INVEST A NY SINKING FUNDS , MONEYS, OR OTHER 37
FUNDS BELONGING TO T HEM OR WITHIN THEIR CONTROL IN ANY BONDS OR OTHER 38
OBLIGATIONS ISSUED B Y THE MUNICIPALITY P URSUANT TO THIS APPE NDIX. 39 14 SENATE BILL 506
HOWEVER, THE BONDS AND OTHER OBLIGATIONS SHALL BE SECURED BY AN 1
AGREEMENT BETWEEN TH E ISSUER AND THE FED ERAL GOVERNMENT IN W HICH THE 2
ISSUER AGREES TO BOR ROW FROM THE FEDERAL GOVERNMENT AND THE F EDERAL 3
GOVERNMENT AGREES TO LEND TO THE ISSUER , PRIOR TO THE MATURIT Y OF THE 4
BONDS OR OTHER OBLIG ATIONS, MONEYS IN AN AMOUNT WHICH (TOGETHER WITH 5
ANY OTHER MONEYS COM MITTED IRREVOCABLY T O THE PAYMENT OF PRI NCIPAL 6
AND INTEREST ON THE BOND S OR OTHER OBLIGATIO NS) WILL SUFFICE TO PAY THE 7
PRINCIPAL OF THE BON DS OR OTHER OBLIGATI ONS WITH INTEREST TO MATURITY 8
ON THEM. THE MONEYS UNDER THE TERMS OF THE AGREEME NT SHALL BE 9
REQUIRED TO BE USED FOR THE PURPOSE OF P AYING THE PRINC IPAL OF AND THE 10
INTEREST ON THE BOND S OR OTHER OBLIGATIO NS AT THEIR MATURITY . THE BONDS 11
AND OTHER OBLIGATION S SHALL BE AUTHORIZE D SECURITY FOR ALL P UBLIC 12
DEPOSITS. THIS SECTION AUTHORIZ ES ANY PERSONS OR PU BLIC OR PRIVATE 13
POLITICAL SUBDIVISIO NS AND OFFICERS TO USE ANY FUNDS OWN ED OR 14
CONTROLLED BY THEM F OR THE PURCHASE OF A NY BONDS OR OTHER 15
OBLIGATIONS. WITH REGARD TO LEGAL INVESTMENTS , THIS SECTION MAY NOT BE 16
CONSTRUED TO RELIEVE ANY PERSON OF ANY DU TY OF EXERCISING REA SONABLE 17
CARE IN SELECTING SE CURITIES. 18
A1–113. SHORT TITLE. 19
THIS APPENDIX SHALL B E KNOWN AND MAY BE C ITED AS THE FOREST 20
HEIGHTS URBAN RENEWAL AUTHORITY FOR BLIGHT CLEARANCE ACT. 21
A1–114. AUTHORITY TO AMEND OR REPEAL. 22
THIS APPENDIX, ENACTED PURSUANT TO ARTICLE III, SECTION 61 OF THE 23
MARYLAND CONSTITUTION, MAY BE AMENDED OR RE PEALED ONLY BY THE 24
GENERAL ASSEMBLY OF MARYLAND. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2023. 27