WES MOORE, Governor Ch. 123
– 1 –
Chapter 123
(House Bill 599)
AN ACT concerning
Maryland Community Investment Corporation – Establishment
(Housing and Community Development Financing Act of 2024)
FOR the purpose of establishing the Maryland Community Investment Corporation as an
independent unit to make investments in certain low –income communities;
authorizing the Board of Directors of the Corporation to establish a certain advisory
committee and requiring the Corporation to establish an investment committee;
requiring the Corporation to apply for an allocation of federal new markets tax
credits; establishing eligible uses of money of the Corporation; expanding the eligible
uses of the Strategic Demolition and Smart Growth Impact Fund to include grants
and loans for debt payments and for credit enhancement for certain projects; and
generally relating to community investment, the Maryland Community Investment
Corporation, and the Strategic Demolition and Smart Growth Impact Fund.
BY repealing and reenacting, without amendments,
Article – Economic Development
Section 9–101(a), (c), and (e)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY adding to
Article – Economic Development
Section 10–1101 through 10–1123 to be under the new subtitle “Subtitle 11.
Maryland Community Investment Corporation”
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 4–508
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Economic Development
9–101.
(a) In this division the following words have the meanings indicated. Ch. 123 2024 LAWS OF MARYLAND
– 2 –
(c) “Department” means the Department of Commerce.
(e) “Secretary” means the Secretary of Commerce.
SUBTITLE 11. MARYLAND COMMUNITY INVESTMENT CORPORATION .
10–1101.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “BOARD” MEANS THE BOARD OF DIRECTORS OF THE CORPORATION .
(C) “CORPORATION ” MEANS THE MARYLAND COMMUNITY INVESTMENT
CORPORATION .
(D) “INVESTMENT COMMITTEE ” MEANS A CO MMITTEE APPOINTED BY THE
BOARD TO ADVISE ON AN D APPROVE INVESTMENT S AS REQUIRED UNDER THIS
SUBTITLE.
(E) “LOW–INCOME COMMUNITY ” MEANS A COMMUNITY IN THE STATE THAT
MEETS THE DEFINITION OF A LOW–INCOME COMMUNITY UND ER 26 U.S.C. §
45D(E)(1).
(F) “NEW MAR KETS TAX CREDIT ” MEANS THE FEDERAL TA X CREDITS
ALLOCATED UNDER 26 U.S.C. § 45D.
(G) “QUALIFIED COMMUNITY D EVELOPMENT ENTITY ” MEANS AN ENTITY
THAT MEETS THE DEFIN ITION OF A QUALIFIED COMMUNITY DEVELOPMEN T ENTITY
UNDER 26 U.S.C. § 45D(C)(1).
(H) “QUALIFIED EQUITY INVE STMENT” MEANS AN INVESTMENT THAT
MEETS THE DEFINITION OF A QUALIFIED EQUIT Y INVESTMENT UNDER 26 U.S.C. §
45D(B)(1).
10–1102.
THIS SUBTITLE SHALL B E LIBERALLY CONSTRUE D TO CARRY OUT THE
PURPOSES OF THIS SUB TITLE.
10–1103.
(A) THERE IS A MARYLAND COMMUNITY INVESTMENT CORPORATION . WES MOORE, Governor Ch. 123
– 3 –
(B) THE CORPORATION IS A BODY POLITIC AND CORPORAT E AND IS AN
INSTRUMENTALITY OF T HE STATE.
10–1104.
THE PURPOSES OF THE CORPORATION ARE TO :
(1) DO ALL THINGS NECESS ARY TO QUALIFY AS A QUALIFIED
COMMUNITY DEVELOPMEN T ENTITY;
(2) APPLY TO THE U.S. DEPARTMENT OF THE TREASURY TO BE
DESIGNATED AS A QUAL IFIED COMMUNITY DEVE LOPMENT ENTITY ;
(3) APPLY TO THE U.S. DEPARTMENT OF THE TREASURY FOR AN
ALLOCATION OF NEW MA RKETS TAX CREDITS ;
(4) RECEIVE, MAKE, AND FACILITATE QUALI FIED EQUITY
INVESTMENTS AND FINA NCIAL ASSISTANCE AVA ILABLE IN LOW –INCOME
COMMUNITIES IN THE STATE;
(5) ALLOCATE ANY NEW MAR KETS TAX CREDITS REC EIVED BY THE
CORPORATION ;
(6) COORDINATE WITH OTHE R QUALIFIED COMMUNIT Y
DEVELOPMENT ENTITIES IN TH E STATE TO HELP ENSURE THAT LOW–INCOME
COMMUNITIES ARE RECE IVING THE MAXIMUM BE NEFIT OF QUALIFIED E QUITY
INVESTMENTS IN THE STATE;
(7) MAKE INVESTMENTS AND FINANCIAL ASSISTANCE AVAILABLE TO
LOW–INCOME COMMUNITIES IN THE STATE FROM THE CORPORATION ’S MONEY OR
FROM ANY OTHER SOURC E;
(8) BUILD A LONG –TERM FINANCIAL CAPAC ITY AND SUSTAINED
INVESTMENT IN LOW –INCOME COMMUNITIES I N THE STATE;
(9) COORDINATE AND CREAT E PATHWAYS TO FOLLOW –ON FINANCING
IN THE STATE; AND
(10) FOSTER INCLUSIVE AND DIVERS E ENTREPRENEURSHIP A ND
INNOVATION THROUGHOU T THE STATE, WHICH MAY INCLUDE IN ITIATIVES TO RAISE
AWARENESS OF PROGRAM S TO ASSIST LOW–INCOME COMMUNITIES .
10–1105. Ch. 123 2024 LAWS OF MARYLAND
– 4 –
(A) A BOARD OF DIRECTORS SHALL MANAG E THE CORPORATION AND ITS
UNITS AND EXERCISE ITS CORPORAT E POWERS.
(B) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS :
(1) THE COMPTROLLER OR THE COMPTROLLER ’S DESIGNEE;
(2) THE SECRETARY OR THE SECRETARY’S DESIGNEE;
(3) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT
OR THE SECRETARY’S DESIGNEE;
(4) THE SECRETARY OF PLANNING OR THE SECRETARY’S DESIGNEE;
(5) THE SECRETARY OF GENERAL SERVICES OR THE SECRETARY’S
DESIGNEE; AND
(6) THE FOLLOWING MEMBER S APPOINTED BY THE GOVERNOR WITH
THE ADVICE AND CONSE NT OF THE SENATE:
(I) ONE REPRESENTATIVE O F NONPROFIT ENTITIES IN THE
STATE; AND
(II) ONE REPRESENTATIVE O F LOW–INCOME COMMUNITIES .
(C) A MEMBER OF THE BOARD SHALL RESIDE IN THE STATE.
(D) IN MAKING APPOINTMENT S TO THE BOARD, THE GOVERNOR SHALL
CONSIDER:
(1) DIVERSITY; AND
(2) ALL GEOGRAPHIC REGIO NS OF THE STATE.
(E) A MEMBER OF THE BOARD:
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD;
BUT
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET .
(F) (1) THE TERM OF AN APPOIN TED MEMBER IS 4 YEARS. WES MOORE, Governor Ch. 123
– 5 –
(2) THE TERMS OF THE APPO INTED MEMBERS ARE ST AGGERED AS
REQUIRED BY THE TERM S PROVIDED FOR MEMBE RS ON OCTOBER 1, 2024.
(3) AT THE END OF A TERM , AN APPOINTED MEMBER CONTINUES TO
SERVE UNTIL A SUCCES SOR IS APPOINTED AND QUALIFIES.
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND
QUALIFIES.
(G) (1) THIS SUBSECTION APPLI ES TO A MEMBER WHO I S APPOINTED BY
THE GOVERNOR UNDER SUBSEC TION (B)(6) OF THIS SECTION.
(2) THE GOVERNOR MAY REMOVE A N APPOINTED MEMBER F OR
INCOMPETENCE , MISCONDUCT , OR FAILURE TO PERFOR M THE DUTIES OF THE
POSITION.
10–1106.
THE BOARD SHALL ELECT A C HAIR FROM AMONG ITS MEMBERS.
10–1107.
(A) FOUR MEMBERS OF THE BOARD ARE A QUORUM .
(B) A MAJORITY VOTE OF THE MEMBERS PRESENT AT A MEETING HAVING A
QUORUM IS NEEDED FOR THE CORPORATION TO ACT .
10–1108.
(A) THE BOARD SHALL APPOINT M EMBERS OF AN ADVISOR Y COMMITTEE .
(B) THE MEMBERSHIP OF THE ADVISORY COMMITTEE S HALL BE COMPOSED
OF MEMBERS WHO ARE:
(1) REQUIRED FOR THE CORPORATION TO QUALIF Y AS A QUALIFIED
COMMUNITY DEVELOPMEN T ENTITY UNDER 26 U.S.C. § 45D(C)(1);
(2) RESIDENTS OF THE STATE; AND
(3) GEOGRAPHICALL Y REPRESENTATIVE OF THE LOCATIONS OF
LOW–INCOME COMMUNITIES I N THE STATE.
Ch. 123 2024 LAWS OF MARYLAND
– 6 –
(C) THE BOARD SHALL ADOPT POL ICIES ESTABLISHING T HE
RESPONSIBILITIES OF THE ADVISORY COMMITT EE.
(D) THE ADVISORY COMMITTE E SHALL PRIORITIZE P ROJECTS OWNED OR
OPERATED BY ENTITIES THAT HAVE THEIR PRIN CIPAL PLACE OF BUSIN ESS IN THE
STATE WHEN ADVISING O N INVESTMENTS MADE I N LOW–INCOME COMMUNITIES I N
THE STATE.
10–1109.
(A) THE CORPORATION SHALL EST ABLISH AN INVESTMENT COMMITTEE.
(B) THE CORPORATION SHALL ADO PT REGULATIONS ESTABLISHING :
(1) THE RESPONSIBILITIES OF THE INVESTMENT CO MMITTEE; AND
(2) THE PROCEDURES FOR T HE APPOINTMENT OF IN VESTMENT
COMMITTEE MEMBERS .
(C) MEMBERS OF THE INVEST MENT COMMITTEE SHALL BE
GEOGRAPHICALLY REPRE SENTATIVE OF THE LOC ATIONS OF LOW –INCOME
COMMUNITIES IN THE STATE.
(D) THE INVESTMENT COMMIT TEE SHALL PRIORITIZE PROJECTS THAT ARE
OWNED OR OPERATED BY ENTITIES THAT HAVE T HEIR PRINCIPAL PLACE OF
BUSINESS IN THE STATE.
10–1110.
(A) THE CORPORATION SHALL EMP LOY A CHIEF EXECUTIVE OFFICER.
(B) THE CHIEF EXECUTIVE OFFICER SHALL HAVE EX PERIENCE WITH AND
POSSESS QUALIFICATIO NS RELEVANT TO THE A CTIVITIES AND PURPOS ES OF THE
CORPORATION .
(C) THE CHIEF EXECUTIVE OFFICER MAY NOT BE A MEMBER OF THE
BOARD.
10–1111.
(A) THE ATTORNEY GENERAL IS THE LEGAL ADVISOR TO THE
CORPORATION .
WES MOORE, Governor Ch. 123
– 7 –
(B) (1) THE ATTORNEY GENERAL SHALL ASSIGN TO THE CORPORATION
ASSISTANT ATTORNEYS GENERAL.
(2) THE ATTORNEY GENERAL SHALL DESIGNA TE ONE ASSISTANT
ATTORNEY GENERAL AS GENERAL CO UNSEL TO THE CORPORATION .
(3) (I) THE GENERAL COUNSEL T O THE CORPORATION SHALL :
1. ADVISE THE CHIEF EXECUTIVE OFFICER, THE
BOARD, AND ANY OTHER OFFICI AL OF THE CORPORATION AS REQUES TED BY THE
CORPORATION ;
2. SUPERVISE THE OTHER ASSISTANT ATTORNEYS
GENERAL ASSIGNED TO T HE CORPORATION; AND
3. PERFORM FOR THE CORPORATION OTHER DUT IES
THE ATTORNEY GENERAL ASSIGNS .
(II) THE GENERAL COUNSEL M AY NOT PROVIDE ANY O THER
ASSISTANCE NOT SPECI FIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH .
(C) WITH THE APPROVAL OF THE ATTORNEY GENERAL, THE CORPORATION
MAY RETAIN ANY ADDIT IONAL NECESSARY ATTO RNEYS.
10–1112.
(A) THE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT MAY PROVI DE STAFF TO THE CORPORATION AS
PROVIDED IN THE STATE BUDGET .
(B) THE CORPORATION MAY RETAI N ANY NECESSARY ACCOUN TANTS,
ENGINEERS, FINANCIAL ADVISORS , OR OTHER CONSULTANTS .
10–1113.
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B), (C), AND (E) OF THIS
SECTION, THE CORPORATION IS EXEMPT FROM TITLE 10 AND DIVISION II OF THE
STATE FINANCE AND PROCUREME NT ARTICLE.
(B) THE CORPORATION IS SUBJEC T TO THE PUBLIC INFORMATION ACT.
(C) THE BOARD, THE OFFICERS AND EMP LOYEES OF THE CORPORATION ,
MEMBERS OF THE INVES TMENT COMMITTEE , AND MEMBERS OF ANY A DVISORY
COMMITTEE APPOINTED ARE SUBJECT TO THE PUBLIC ETHICS LAW. Ch. 123 2024 LAWS OF MARYLAND
– 8 –
(D) THE OFFICERS AND EMPL OYEES OF THE CORPORATION ARE NOT
SUBJECT TO THE PROVI SIONS OF DIVISION I OF THE STATE PERSONNEL AND
PENSIONS ARTICLE THAT GOVERN T HE STATE PERSONNEL MANAGEMENT SYSTEM.
(E) (1) THE CORPORATION , THE BOARD, AND EMPLOYEES OF THE
CORPORATION ARE SUBJE CT TO TITLE 12, SUBTITLE 4 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.
(2) THE BOARD, THE OFFICERS AND EMP LOYEES OF THE
CORPORATION , THE MEMBERS OF THE I NVESTMENT COMMITTEE , AND THE
MEMBERS OF ANY ADVIS ORY COMMITTEE APPOIN TED SHALL DISCLOSE TO TH E
STATE ETHICS COMMISSION WHETHER TH EY ARE EMPLOYED BY O R HAVE A
FINANCIAL INTEREST I N AN ENTITY THAT CUR RENTLY HAS OR WILL A PPLY FOR
FUNDS OR AN INVESTME NT IN A PROGRAM ADMI NISTERED BY THE CORPORATION .
(F) FOR PURPOSES OF THE OPEN MEETINGS ACT, A PROJECT SITE VISIT OR
EDUCATIONAL FIELD TO UR MAY NOT BE CONSID ERED A MEETING OF TH E
CORPORATION IF NO ORG ANIZATIONAL BUSINESS IS CONDUCTED .
10–1114.
(A) THE CORPORATION SHALL EST ABLISH A SYSTEM OF F INANCIAL
ACCOUNTING , CONTROLS, AUDITS, AND REPORTS .
(B) THE FISCAL YEAR OF TH E CORPORATION BEGINS ON JULY 1 AND ENDS
ON THE FOLLOWING JUNE 30.
10–1115.
(A) THE CORPORATION MAY CREAT E AND ADMINISTER THE ACCOUNTS
THAT IT REQUIRES .
(B) THE CORPORATION SHALL DEP OSIT ITS MONEY INTO A STATE OR
NATIONAL BANK OR A F EDERALLY INSURED SAV INGS AND LOAN ASSOCI ATION THAT
HAS A TOTAL PAID–IN CAPITAL OF AT LEA ST $1,000,000.
(C) THE CORPORATION MAY DESIG NATE THE TRUST DEPAR TMENT OF A
STATE BANK , NATIONAL BANK , OR SAVINGS AND LOAN ASSOCIATION AS A
DEPOSITORY TO RECEIVE SECU RITIES THAT THE CORPORATION OWNS OR
ACQUIRES.
WES MOORE, Governor Ch. 123
– 9 –
(D) UNLESS AN AGREEMENT O R COVENANT BETWEEN T HE CORPORATION
AND THE HOLDERS OF I TS OBLIGATIONS LIMIT S CLASSES OF INVESTM ENTS, THE
CORPORATION MAY INVES T ITS MONEY IN BONDS OR OTHER OBLIGAT IONS OF, OR
GUARANTEED AS TO PRI NCIPAL AND INTEREST BY, THE UNITED STATES, THE
STATE, OR A GOVERNMENTAL UN IT.
(E) ANY INCOME FROM THE I NVESTMENT OF MONEY O F THE CORPORATION ,
INCLUDING INVESTMENT PROCEEDS AND EARNING S, SHALL BE CREDITED TO THE
CORPORATION .
10–1116.
THE CORPORATION MAY :
(1) ADOPT BYLAWS FOR THE CONDUCT OF ITS BUSIN ESS;
(2) ADOPT A SEAL;
(3) MAINTAIN OFFICES AT A PLACE IT DESIGNATE S IN THE STATE;
(4) ACCEPT LOANS , GRANTS, INVESTMENTS , OR ASSISTANCE OF ANY
KIND FROM THE FEDERA L OR STATE GOVERNMENT , A LOCAL GOVERNMENT , A
COLLEGE OR UNIVERSIT Y, OR A PRIVATE SOURCE ;
(5) ENTER INTO CONTRACTS AND OTHER LEGAL INST RUMENTS;
(6) SUE OR BE SUED;
(7) ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE , AND USE:
(I) A FRANCHISE, PATENT, OR LICENSE;
(II) ANY REAL, PERSONAL, MIXED, TANGIBLE, OR INTANGIBLE
PROPERTY; OR
(III) AN INTEREST IN THE P ROPERTY LISTED IN TH IS ITEM;
(8) SELL, LEASE AS LESSOR , TRANSFER, LICENSE, ASSIGN, OR
DISPOSE OF PROPERTY OR A PROPERTY INTERE ST THAT IT ACQUIRES;
(9) FIX AND COLLECT RATE S, RENTALS, FEES, ROYALTIES, AND
CHARGES FOR SERVICES AND RESOURCES IT PRO VIDES OR MAKES AVAIL ABLE;
Ch. 123 2024 LAWS OF MARYLAND
– 10 –
(10) CREATE, OWN, CONTROL, OR BE A MEMBER OF A CORPORATION ,
LIMITED LIABILITY CO MPANY, PARTNERSHIP , OR OTHER ENTITY , WHETHER
OPERATED FOR PROFIT OR NOT FOR PROFIT ;
(11) EXERCISE POWER USUAL LY POSSESSED BY A PR IVATE
CORPORATION IN PERFO RMING SIMILAR FUNCTI ONS UNLESS TO DO SO WOULD
CONFLICT WITH STATE LAW; AND
(12) DO ALL THINGS NECESS ARY OR CONVENIENT TO CARRY OUT T HIS
SUBTITLE.
10–1117.
THE BOARD SHALL:
(1) DEVELOP A PUBLIC AND INTERNAL STRATEGIC P LAN THAT
INCLUDES:
(I) PERFORMANCE GOALS AN D MEASURES;
(II) A MISSION STATEMENT AND CORE VALUES ;
(III) AN ANALYSIS OF STREN GTHS, WEAKNESSES ,
OPPORTUNITIE S, AND THREATS ;
(IV) ACTION PLANS; AND
(V) YEARLY AND LONG –TERM GOALS AND OBJEC TIVES;
(2) REVIEW STRATEGIC PLA NS AND UPDATE THE PL ANS ANNUALLY
TO MEASURE PERFORMAN CE;
(3) APPROVE COMPENSATION PLANS FOR THE CHIEF EXECUTIVE
OFFICER AND EMPLOYEE S OF THE CORPORATION ;
(4) DESIGNATE A PERSON T O REVIEW AND APPROVE EXPENSE
REIMBURSEMENTS OF TH E CHIEF EXECUTIVE OFFICER AND EMPLOYEES OF THE
CORPORATION IN ACCORD ANCE WITH STANDARDS ESTABLISHED BY THE BOARD;
(5) DESIGNATE A PERSON T O RECEIVE ETHICS COMPLAINTS AND ANY
COMPLAINTS INVOLVING THE BOARD, THE CHIEF EXECUTIVE OFFICER, AND
EMPLOYEES OF THE CORPORATION ;
(6) ESTABLISH POLICIES T HAT GOVERN: WES MOORE, Governor Ch. 123
– 11 –
(I) SEVERANCE PACKAGES F OR EMPLOYEES THAT
INVOLUNTARILY LEAVE EMPLOYMENT ;
(II) TUITION REIMBURS EMENT AND LIMITS FOR EMPLOYEES;
(III) ELIGIBLE EXPENSE REI MBURSEMENT REQUIREME NTS
THAT INCLUDE :
1. THE TYPES OF EXPENSE S THAT ARE CONSIDERE D
PART OF CORPORATION FUNCTIONS ;
2. LIMITS ON REIMBURSEM ENTS AND TIME FRAMES FOR
SUBMISSION; AND
3. ALLOWABLE TRAVEL EXP ENSES INCLUDING ANY
OUT–OF–STATE TRAVEL;
(IV) THE USE OF ALL CORPORATION EQUIPMENT , PERSONAL
PROPERTY, AND REAL PROPERTY AN D WHETHER ANY PROPER TY MAY BE
TRANSFERRED TO A DEP ARTING EMPLOYEE ; AND
(V) WHISTLEBLOWER COMPLA INTS AND PROTECTIONS FOR
THOSE FILING COMPLAI NTS; AND
(7) CONDUCT AN ANNUAL PE RFORMANCE REVIEW OF THE CHIEF
OPERATING OFFICER.
10–1118.
(A) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , THE
CORPORATION MAY MAKE QUALIFIED EQUITY INV ESTMENTS AND OTHER FINANCIAL
ASSISTANCE AVAILABLE TO PROJECTS IN LOW –INCOME COMMUNITIES I F THE
INVESTMENTS ARE MADE ON REVIEW AND APPROV AL OF A WRITTEN APPL ICATION
THAT CONTAINS :
(1) SUFFICIENT INFORMATI ON TO VERIFY THAT TH E PROJECT IS IN
THE STATE; AND
(2) A CERTIFICATION OF THE VERACITY OF THE INFO RMATION BY AN
AUTHORIZED SIGNATORY OF THE APPLICANT .
Ch. 123 2024 LAWS OF MARYLAND
– 12 –
(B) IN REGARD TO ANY AND ALL PROGRAMS OF THE CORPORATION , EXCEPT
AS OTHERWISE PROVIDE D IN THIS SUBTITLE , THE CORPORATION SHALL ADO PT
REGULATIONS TO GOVER N INVESTMENTS UNDER THIS SU BSECTION THAT SPECIF Y:
(1) THE TYPES OF BUSINES SES AND PROJECTS IN WHICH AN
INVESTMENT MAY BE MA DE;
(2) THE BASIC STANDARDS AN ENTERPRISE SHALL MEET TO QUALIFY
FOR AN INVESTMENT ;
(3) THE AMOUNT OF MONEY AVAILABLE FOR INVESTMENT;
(4) THE INVESTMENT POLIC Y STATEMENT OF THE CORPORATION
THAT DESCRIBES THE P ROCEDURES , CRITERIA, INVESTMENT PHILOSOPH Y, AND
GUIDELINES FOR HOW T HE CORPORATION ’S INVESTMENT DECISIO NS WILL BE
MADE; AND
(5) A PROCESS FOR CONSID ERING WHETHER I NVESTMENTS HELP TO
FOSTER INCLUSIVE AND DIVERSE ENTREPRENEUR SHIP, INCLUDING THE
CORPORATION ’S SUPPORT FOR LOW –INCOME COMMUNITIES .
(C) THE CORPORATION MAY MAKE INVESTMENTS UNDER AN AGREEMENT
WITH THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND PENSION
SYSTEM UNDER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS ARTICLE.
10–1119.
THE CORPORATION MAY :
(1) PROVIDE EQUITY INVES TMENT TO A QUALIFIED BUSINESS OR
PROJECT IN THE FORM OF A GRANT, LOAN, TAX CREDIT ALLOCATIO N, OR ANY OTHER
FORM OF FINANCIAL AS SISTANCE TO CARRY OU T ITS PURPOSES;
(2) ACQUIRE, DEVELOP, IMPROVE, MANAGE, MARKET, LICENSE,
SUBLICENSE, MAINTAIN, LEASE AS LESSOR OR L ESSEE, OR OPERATE A PROJECT IN
THE STATE TO CARRY OUT IT S PURPOSES; AND
(3) ACQUIRE, DIRECTLY OR INDIRECT LY, FROM A PERSON OR
POLITICAL SUBDIVISIO N, BY PURCHASE , GIFT, OR DEVISE, ANY PROPERTY ,
RIGHTS–OF–WAY, FRANCHISES, EASEMENTS, OR OTHER INTERESTS I N LAND,
INCLUDING SUBMERGED LAND AND RIPARIAN RI GHTS:
WES MOORE, Governor Ch. 123
– 13 –
(I) AS NECESSARY OR CO NVENIENT TO IMPROVE OR OPERATE
A PROJECT TO CARRY O UT ITS PURPOSES ; AND
(II) ON THE TERMS AND AT THE PRICES THAT THE
CORPORATION CONSIDERS REASONABLE .
10–1120.
A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE CORPORATION OR ANY
SUBSIDIARY IS NOT :
(1) A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE STATE, A UNIT
OR INSTRUMENTALITY O F THE STATE, OR OF A STATE OFFICER OR STATE
EMPLOYEE; OR
(2) A PLEDGE OF THE CRED IT OF THE STATE.
10–1121.
THE CORPORATION IS EXEMPT FROM STATE AND LOCAL TAXES .
10–1122.
(A) THE BOOKS AND RECORDS OF THE CORPORATION ARE SUBJE CT TO
AUDIT:
(1) AT ANY TIME BY THE STATE; AND
(2) EACH YEAR BY AN INDE PENDENT AUDITOR , INCLUDING AN
ANNUAL FINANCIAL STA TEMENT UNDER GENERAL LY ACCEPTED ACCOUNTI NG
PRINCIPLES.
(B) THE CORPORATION SHALL CON DUCT AN INDEPENDENT ASSESSMENT
OF THE BOARD AND THE CORPORATION EVERY 5 YEARS.
10–1123.
(A) (1) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CORPORATION
SHALL REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.
(2) THE REPORT REQUIRED U NDER THIS SUBSECTION SHALL
INCLUDE:
Ch. 123 2024 LAWS OF MARYLAND
– 14 –
(I) A COMPLETE OPERATING AND FINANCIAL STATEM ENT
COVERING THE CORPORATION ’S OPERATIONS;
(II) A SUMMARY OF THE CORPORATION ’S ACTIVITIES DURING
THE PRECEDI NG FISCAL YEAR;
(III) INFORMATION ON ALL S ALARIES AND ANY INCE NTIVES
APPROVED BY THE BOARD FOR CORPORATION EMPLOYEES ;
(IV) INFORMATION ON OUTRE ACH, TRAINING, MENTORSHIP ,
SUPPORT, AND INVESTMENT IN MI NORITY– AND WOMEN –OWNED QUALIFIED
BUSINESSES, INCLUDING SUPPORT FOR M ARKETING BY THE MARYLAND SMALL
BUSINESS DEVELOPMENT FINANCING AUTHORITY;
(V) INFORMATION ON ENTIT IES THAT HAVE CURREN T
INVESTMENTS AND ENTI TIES THAT RECEIVED F UNDING OR INVESTMENT S IN THE
CURRENT YEAR ON :
1. THE PRINCIPAL BUSIN ESS OPERATIONS ;
2. THE NUMBER OF EMPLOY EES IN THE STATE AND THE
NUMBER OF EMPLOYEES OUTSIDE THE STATE;
3. THE CAPITAL OR OTHER INVESTMENTS MADE IN THE
STATE; AND
4. THE PROPOSED AND ACT UAL JOB CREATION OR
CAPITAL INVESTMENT I N THE STATE AS A RESULT OF THE INVEST MENT OR
SUPPORT;
(VI) INFORMATION ON THE C REATION OF AND APPOI NTMENTS
MADE TO AN ADVISORY COMMITTEE AND THE RE SPONSIBILITIES OF TH E ADVISORY
COMMITTEE AND MEMBER S OF THE COMMITTEE ; AND
(VII) THE POLICIES OF THE BOARD AND ANY CHANGES TO
EXISTING POLICIES .
(B) (1) ON A QUARTERLY BASIS , THE CORPORATION SHALL REP ORT TO
THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE, THE JOINT AUDIT AND EVALUATION COMMITTEE AND THE GENERAL
ASSEMBLY.
WES MOORE, Governor Ch. 123
– 15 –
(2) THE REPOR T REQUIRED UNDER THI S SUBSECTION SHALL
INCLUDE A LIST OF TH E BUSINESSES AND PRO JECTS RECEIVING SUPP ORT THROUGH
PROGRAMS ADMINISTERE D BY THE CORPORATION , INCLUDING THOSE RECE IVING
INVESTMENTS MADE UND ER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS
ARTICLE.
(3) THE LIST OF BUSINESSE S AND PROJECTS RECEI VING SUPPORT
SHALL INCLUDE FOR EA CH:
(I) THE NUMBER OF EMPLOY EES IN THE STATE;
(II) THE NUMBER OF EMPLOY EES OUTSIDE THE STATE;
(III) THE CAPITAL OR OTHER INVESTMENTS MADE IN THE STATE;
AND
(IV) PROPOSED JOB CREATIO N OR CAPITAL INVESTM ENT IN THE
STATE AS A RESULT OF THE INVESTMENT OR SU PPORT.
(C) THE CORPORATION SHALL PUB LISH ANNUAL FINANCIA L STATEMENTS ,
AUDIT REPORTS , AND POLICIES OF THE BOARD VISIBLY ON ITS WEBSITE.
Article – Housing and Community Development
4–508.
(a) In this section, “Fund” means the Strategic Demolition and Smart Growth
Impact Fund.
(b) There is a Strategic Demolition and Smart Growth Impact Fund.
(c) The purpose of the Fund is to provide grants and loans to assist in
predevelopment activities, including interior and exterior demolition, land assembly,
architecture and engineering, [and] site development, DEBT PAYMENTS , AND CREDIT
ENHANCEMENT for revitalization projects in designated areas of the State.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(f) The Fund consists of: Ch. 123 2024 LAWS OF MARYLAND
– 16 –
(1) money appropriated in the State budget to the Fund;
(2) repayments of loans made from the Fund;
(3) interest earnings of the Fund; and
(4) any other money from any other source accepted for the benefit of the
Fund.
(g) (1) The Fund may be used only to provide grants and loans to government
agencies and community development organizations for interior and exterior demolition,
land assembly, architecture and engineering, [and] site development, DEBT PAYMENTS ,
AND CREDIT ENHANCEME NT for revitalization projects in an area designated as:
(i) a Sustainable Community; or
(ii) a qualified opportunity zone designated under § 1400Z–1 of the
Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico
County.
(2) (i) For fiscal years 2017 through 2019, to be eligible for a grant or
loan from the Fund, a government agency or community development organization shall
provide evidence of a matching fund that is equal to $1 for every $4 in State funding that
the agency or organization is applying for from the Fund.
(ii) The matching fund required under subparagraph (i) of this
paragraph may include:
1. money from the federal government, local government, or
any other public or private source;
2. real property;
3. in–kind contributions; and
4. funds expended before the date the grant or loan is
awarded.
(3) For fiscal year 2020 and each fiscal year thereafter, to be eligible for a
grant or loan from the Fund, a government agency or community development organization
is not required to provide evidence of a matching fund.
(4) The Department shall award grants and loans from the Fund on a
competitive basis.
WES MOORE, Governor Ch. 123
– 17 –
(h) (1) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State
budget.
(j) (1) For fiscal year 2018, the Governor shall include in the annual budget
bill or capital budget bill an appropriation of $25,625,000 from general funds or the
proceeds from the sale of State general obligation bonds to the Fund, which shall be
allocated as follows:
(i) $22,125,000 for projects in Baltimore City; and
(ii) $3,500,000 for projects throughout the State.
(2) For fiscal year 2019, the Governor shall include in the annual budget
bill or capital budget bill an appropriation of $28,500,000 from general funds or the
proceeds from the sale of State general obligation bonds to the Fund, which shall be
allocated as follows:
(i) $25,000,000 for projects in Baltimore City; and
(ii) $3,500,000 for projects throughout the State.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, April 25, 2024.