WES MOORE, Governor Ch. 173
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Chapter 173
(Senate Bill 783)
AN ACT concerning
Historic Properties Disposition and Preservation Team Preservation and Reuse
of Historic Complexes Study and Extension of Alterations to the Income Tax
Credit for Catalytic Revitalization Projects
FOR the purpose of establishing the Historic Properties Disposition and Preservation Team
within the Department of Housing and Community Development; providing for the
membership, duties, and staffing of the Team; extending the sunset for the income
tax credit for catalytic revitalization projects; allowing multiple final tax certificates
to be issued for a catalytic revitalization project in certain circumstances; requiring
the Smart Growth Subcabinet to study Maryland’s historic complexes and make
recommendations about an implementation plan to address the preservation and
reuse of historic complexes in the State; and generally relating to the disposition and
preservation of historic properties by the State.
BY repealing and reenacting, without amendments,
Article – Housing and Community Development
Section 1–101(a) and (d), 6–901, and 6–902(a)
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 2–201 6–902(a), 6–903(a)(1), and 6–905 and 6–903(a)(1) and (e)
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY adding to
Article – Housing and Community Development
Section 5–101 through 5–105 to be under the new title “Title 5. Historic Properties
Disposition and Preservation Team” 6–902(c) and 6–903(e)
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 – Housing and Community Development
1–101.
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(a) In this Division I of this article the following words have the meanings
indicated.
(d) “Department” means the Department of Housing and Community
Development.
2–201.
The Department consists of:
(1) the Division of Credit Assurance;
(2) the Division of Development Finance;
(3) THE HISTORIC PROPERTIES DISPOSITION AND PRESERVATION
TEAM;
(4) the Division of Neighborhood Revitalization;
[(4)] (5) the Community Development Administration;
[(5)] (6) the Community Legacy Program;
[(6)] (7) the Housing Finance Review Committee;
[(7)] (8) the Lead Hazard Advisory Committee;
[(8)] (9) the Maryland Housing Fund;
[(9)] (10) the Neighborhood Business Development Program; and
[(10)] (11) any other governmental unit that under law is a part of the
Department.
TITLE 5. HISTORIC PROPERTIES DISPOSITION AND PRESERVATION TEAM.
5–101.
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS
INDICATED.
(B) “HISTORIC PROPERTY ” HAS THE MEANING STAT ED IN § 5A–301 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE.
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(C) “PRESERVATION ” HAS THE MEANING STAT ED IN § 5A–301 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE.
(D) “TEAM” MEANS THE HISTORIC PROPERTIES DISPOSITION AND
PRESERVATION TEAM OF THE DEPARTMENT .
(E) “UNIT” MEANS A UNIT OF STATE GOVERNMENT .
5–102.
(A) THERE IS A HISTORIC PROPERTIES DISPOSITION AND PRESERVATION
TEAM WITHIN THE DEPARTMENT .
(B) (1) THE TEAM CONSISTS OF THE FOLLOWING EX OFFICIO MEMBERS:
(I) THE SECRETARY OF HOUSING AND COMMUNITY
DEVELOPMENT ;
(II) THE SECRETARY OF GENERAL SERVICES;
(III) THE SECRETARY OF COMMERCE;
(IV) THE SECRETARY OF THE ENVIRONMENT ;
(V) THE SECRETARY OF HEALTH;
(VI) THE SECRETARY OF LABOR;
(VII) THE SECRETARY OF NATURAL RESOURCES; AND
(VIII) THE SECRETARY OF PLANNING.
(2) THE COCHAIRS MAY APPO INT THE HEAD OF A UN IT THAT IS NOT
LISTED IN PARAGRAPH (1) OF THIS SUBSECTION A S AN EX OFFICIO MEMB ER OF THE
TEAM AFTER A REVIEW O F THE UNIT ’S OWNERSHIP OF STATE HISTORIC
PROPERTIES.
(3) AN EX OFFICIO MEMBER MAY DESIGNATE A DEPU TY SECRETARY
FROM THE MEMBER ’S UNIT TO ACT IN THE MEMBER’S ABSENCE.
(C) A MEMBER OF THE TEAM:
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE TEAM;
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(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET .
(D) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , OR
THE SECRETARY’S DESIGNEE, AND THE SECRETARY OF GENERAL SERVICES, OR
THE SECRETARY’S DESIGNEE, SHALL COCHAIR THE TEAM.
(E) (1) A MAJORITY OF THE AUTH ORIZED MEMBERSHIP OF THE TEAM IS
A QUORUM.
(2) THE TEAM SHALL SET THE TIMES AND PLACES OF ITS MEETINGS.
(F) THE DEPARTMENT SHALL PROV IDE STAFF TO THE TEAM, INCLUDING A
DIRECTOR TO OVERSEE THE ACTIVITIES OF TH E TEAM.
5–103.
(A) (1) THE PURPOSE OF THE TEAM IS TO ENSURE THA T HISTORIC
PROPERTIES OWNED BY THE STATE THAT ARE HELD FOR DISPOSITION AND
REDEVELOPMENT ARE PR OPERLY MAINTAINED AN D MANAGED AND SUCCES SFULLY
TRANSFERRED ON DISPO SITION.
(2) AMONG ITS OTHER DUTIE S AND POWERS ESTABLI SHED UNDER
THIS SECTION , THE TEAM IS RESPONSIBLE F OR IMPLEMENTING
RECOMMENDATIONS 2, 4, AND 5 OF THE REPORT “ADVANCING THE PRESERVATION
AND REUSE OF MARYLAND’S HISTORIC COMPLEXES: CHALLENGES AND
OPPORTUNITIES ”, PREPARED FOR THE DEPARTMENT OF PLANNING AND ISSUED
JANUARY 28, 2020.
(B) THE TEAM SHALL:
(1) IDENTIFY AND MAINTAI N INFORMATION ON STATE–OWNED
HISTORIC PROPERTIES ;
(2) SUPPORT THE MAINTENA NCE OF HISTORIC PROP ERTIES BY THE
UNIT IN POSSESSION O F THE PROPERTY BEFOR E DISPOSITION OF THE HISTORIC
PROPERTY BY THE STATE;
(3) EVALUATE, BEFORE DISPOSITION O F A HISTORIC PROPERT Y
OWNED BY THE STATE:
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(I) ENVIRONMENTAL AND HI STORIC REMEDIATION
REQUIREMENTS FOR THE HISTORIC PROPERTY ; AND
(II) ZONING OPTIONS FOR S UBSEQUENT USES ON DI VESTMENT;
(4) FACILITATE, BEFORE DISPOSITION O F A HISTORIC PROPERT Y
OWNED BY THE STATE:
(I) SITE AND BUILDING ASSE SSMENTS; AND
(II) PROJECTS NECESSARY F OR THE STABILIZATION OR
PRESERVATION OF THE HISTORIC PROPERTY ;
(5) CONSULT WITH THE UNI T IN POSSESSION OF T HE STATE–OWNED
HISTORIC PROPERTY TO DEVELOP A PLAN FOR P RESERVATION OR DISPO SITION OF
THE HISTORIC PROPERT Y THAT INCLUDES :
(I) A MULTIDISCIPLINARY REVIEW OF THE POTENT IAL USES
FOR THE PROPERTY AND THE FACTORS AFFECTIN G THESE USES , INCLUDING
ENVIRONMENTAL REVIEW S AND ASSESSMENTS OF THE COMMERCIAL VALUE OF THE
PROPERTY; AND
(II) A DETERMINATION OF WHE THER THE PROPERTY IS
SUITABLE FOR USE OR REDEVELOPMENT AS AFF ORDABLE HOUSING , AS REQUIRED
UNDER § 2–203(B) OF THIS DIVISION I;
(6) IDENTIFY AND MAKE AV AILABLE FINANCIAL AS SISTANCE AND
NONMONETARY RESOURCE S FROM THE FEDERAL G OVERNMENT , THE STATE,
POLITICAL SUBDIVISIO NS, AND PRIVATE ENTITIES TO FACILITATE THE SU CCESSFUL
DISPOSITION OF STATE–OWNED HISTORIC PROPE RTIES; AND
(7) MEET REGULARLY TO AD DRESS ISSUES RELATED TO ITS PURPOSE
AS IDENTIFIED IN SUB SECTION (A) OF THIS SECTION.
(C) THE TEAM, THROUGH THE DEPARTMENT , MAY EXECUTE CONTRACT S
FOR THE PRESERVATION WORK IDENTIFIED IN S UBSECTION (B) OF THIS SECTION.
(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE A
DISPOSITION PLAN FOR STATE–OWNED HISTORIC PROPE RTY IF THE DISPOSI TION
WOULD:
(1) VIOLATE ANY COVENANT OR APPLICABLE FEDERA L LAW;
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(2) IN THE OPINION OF TH E STATE TREASURER, ADVERSELY AFFECT
THE TAX–EXEMPT STATUS OF AN OUTSTANDING STATE BOND, THE PROCEEDS OF
WHICH WERE ALLOCATED TO PURCHASE OR IMPRO VE THE PROPERTY ; OR
(3) SUPERSEDE THE RIGHT OF A PERSON FROM WHO M REAL
PROPERTY WAS ACQUIRE D OR THE PERSON ’S SUCCESSOR IN INTER EST TO
REACQUIRE THE PROPER TY UNDER § 8–309 OF THE TRANSPORTATION ARTICLE.
(E) ON OR BEFORE DECEMBER 1, 2024, THE TEAM SHALL REPORT TO THE
GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE, THE GENERAL ASSEMBLY ON:
(1) THE ACTIVITIES OF TH E TEAM IN THE PRIOR FIS CAL YEAR; AND
(2) RECOMMENDATIONS , INCLUDING LEGISLATIO N, TO ASSIST THE
TEAM IN CARRYING OUT THE PURPOSE AND PERFORMING THE D UTIES UNDER THIS
SECTION.
5–104.
(A) ON OR BEFORE DECEMBER 1, 2024, THE TEAM SHALL COMPILE A
SUMMARY OF HISTORIC PROPERTIES OWNED BY THE STATE.
(B) THE SUMMARY OF STATE–OWNED HISTORIC PROPE RTIES REQUIRED
UNDER SUBSECTION (A) OF THIS SECTION SHALL :
(1) IDENTIFY PROPERTIES THAT ARE ELIGIBLE FO R DISPOSITION;
(2) BE UPDATED REGULARLY BY THE TEAM; AND
(3) BE MADE AVAILABLE TO THE PUBLIC.
(C) THE SUMMARY OF STATE–OWNED HISTORIC PROPE RTIES MAY BE
INTEGRATED WITH LIST S OR RECORDS OF STATE PROPERTY , INCLUDING THE LIST
REQUIRED UNDER § 2–203(B)(2) OF THIS ARTICLE.
5–105.
AT THE DIRECTION OF T HE TEAM, THE DEPARTMENT MAY ADOPT
REGULATIONS TO CARRY OUT THIS TITLE.
6–901.
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In this subtitle, “catalytic revitalization project” means the substantial rehabilitation
of a property in the State:
(1) that was formerly owned by the State or the federal government;
(2) the rehabilitation of which will foster economic, housing, and
community development within the community in which the property is located; and
(3) that is out of service and was formerly used as a college or university,
K–12 school, hospital, mental health facility, or military facility or installation.
6–902.
(a) An individual, a nonprofit organization, or a business entity may claim a tax
credit in an amount equal to 20% of the amount stated in the final tax credit certificate
issued by the Secretary under § 6–903 of this subtitle for 5 consecutive taxable years
beginning with the taxable year in which the catalytic revitalization project is completed.
A FINAL TAX CREDIT C ERTIFICATE IS ISSUED .
(C) THE SECRETARY MAY ISSUE M ULTIPLE FINAL TAX CR EDIT
CERTIFICATES FOR A P ROJECT THAT IS ISSUE D AN INITIAL TAX CER TIFICATE UNDER
THIS SECTION IF:
(1) THE PROJECT HAS BEEN DETERMINED BY THE SECRETARY TO BE
IN PHASES;
(2) A PHASE OF THE PROJE CT HAS BEEN COMPLETE D;
(3) A FINAL TAX CREDIT C ERTIFICATE IS NOT IS SUED FOR MORE THAN
20% OF THE PROJECT ’S ELIGIBLE EXPENSES TO DATE; AND
(4) A FINAL TAX CREDIT C ERTIFICATE IS NOT IS SUED THAT WOULD
EXCEED THE AGGREGATE D LIMIT OF A PROJECT ’S CREDIT.
6–903.
(a) (1) Subject to the limitations of paragraphs (2) and (3) of this subsection
and subsection (b) of this section, on application by an individual, a nonprofit organization,
or a business entity, the Secretary shall issue:
(i) an initial tax credit certificate in an amount equal to 20% of the
individual’s, nonprofit organization’s, or business entity’s estimated new construction costs
and rehabilitation costs for the project; and
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(ii) on completion of the catalytic revitalization project OR A PHASE
OF THE CATALYTIC REV ITALIZATION PROJECT , a final tax credit certificate in an
amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s actual
new construction costs and rehabilitation costs for the project.
(E) (1) THE ORIGINAL RECIPIEN T OF AN INITIAL TAX CREDIT ISSUED IN
ACCORDANCE WITH THIS SECTION MAY TRANSFER THE INITIAL TAX CRED IT
CERTIFICATE TO ONE O R MORE OTHER INDIVID UALS, NONPROFIT ORGANIZATI ONS,
OR BUSINESS ENTITIES .
(2) THE TRANSFER OF AN IN ITIAL TAX CREDIT CER TIFICATE UNDER
PARAGRAPH (1) OF THIS SUBSECTION NEED NOT I NVOLVE A TRANSFER OF THE
CATALYTIC REVITALIZA TION PROJECT, WHETHER BY FEE SIMPL E TRANSFER OF REAL
PROPERTY OR A TRANSF ER OF A PORTION OR A LL OF THE OWNERSHIP INTEREST
THAT THE ORIGINAL RE CIPIENT HOLDS IN THE ENTITY THAT OWNS THE REAL
PROPERTY TO A NEW OWNE R OR OWNERS.
(3) AN INITIAL TAX CREDIT CERTIFICATE ISSUED I N ACCORDANCE
WITH THIS SECTION MA Y NOT:
(I) BE TRANSFERRED TO AN OTHER PERSON WITHOUT THE
EXPRESS WRITTEN CONS ENT OF THE ORIGINAL RECIPIENT; OR
(II) BE TRANSFERRED AS PART OF THE INVOLUNT ARY
TRANSFER OF THE REAL PROPERTY OWNERSHIP I NTEREST IN AN ENTITY THAT OWNS
THE REAL PROPERTY WI THOUT THE PRIOR WRIT TEN CONSENT OF THE O RIGINAL
RECIPIENT OF THE CER TIFICATE AND THE SECRETARY.
[(e)] (F) (1) The amount of the tax credit STATED IN THE FINAL TAX CREDIT
CERTIFICATE THAT IS allowed, but not claimed, under this subtitle may be transferred, by
written instrument, in whole or in part, to any individual, nonprofit organization, or
business entity.
(2) For the taxable year of any transfer under this subsection, the transferee
under paragraph (1) of this subsection may apply the tax credit against the total tax
otherwise payable by the transferee in that taxable year.
(3) If the tax credit exceeds the total tax otherwise payable by the transferee
in any taxable year, the transferee:
(i) may claim a refund in the amount of the excess;
(ii) may carry forward and apply the excess credit for succeeding
taxable years until the full amount of the credit is used; or WES MOORE, Governor Ch. 173
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(iii) may transfer the remainder of the tax credit to an individual, a
nonprofit organization, or a business entity in accordance with paragraph (1) of this
subsection.
6–905.
(a) Subject to subsection (b) of this section, this subtitle and the credit authorized
under it shall terminate January 1, [2031] 2035.
(b) After the termination of this subtitle:
(1) the Secretary may not issue any additional tax credit certificates under
§ 6–903 of this subtitle; and
(2) tax credit certificates issued may be claimed, refunded, carried forward,
or transferred in accordance with §§ 6–902 and 6–903 of this subtitle.
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a) The Smart Growth Subcabinet established under § 9–1406 of the State
Government Article shall study and make recommendations about an implementation plan
to address the preservation and reuse of historic complexes in the State.
(b) In conducting the study and making the recommendations, the Smart Growth
Subcabinet shall:
(1) evaluate relevant studies and publications;
(2) analyze the economic impact of the implementation plan;
(3) identify regulatory and policy issues for the implementation plan; and
(4) solicit input from interested parties including:
(i) government agencies; and
(ii) relevant public and private organizations.
(c) On or before December 31, 2023, the Smart Growth Subcabinet shall report
its findings and recommendations to the Governor and, in accordance with § 2–1257 of the
State Government Article, the General Assembly.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
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Approved by the Governor, April 24, 2023.