EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
*sb0203*
SENATE BILL 203
C9 4lr0830
SB 315/23 – EEE (PRE–FILED) CF HB 7
By: Senator Waldstreicher
Requested: October 3, 2023
Introduced and read first time: January 10, 2024
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 21, 2024
CHAPTER ______
AN ACT concerning 1
Housing Innovation Pilot Program and Housing Innovation Fund – 2
Establishment 3
(Housing Innovation Pilot Program Act of 2024) 4
FOR the purpose of establishing the Housing Innovation Pilot Program in the Department 5
of Housing and Community Development to provide funds for certain mixed–income, 6
cross–subsidized housing; establishing the Housing Innovation Fund as a special, 7
nonlapsing fund; and generally relating to the Housing Innovation Pilot Program. 8
BY adding to 9
Article – Housing and Community Development 10
Section 4–512; and 4–3001 through 4–3007 4–3005 to be under the new subtitle 11
“Subtitle 30. Housing Innovation Pilot Program” 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2023 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Housing and Community Development 17
4–512. 18
(A) IN THIS SECTION, “FUND” MEANS THE HOUSING INNOVATION FUND. 19 2 SENATE BILL 203
(B) THERE IS A HOUSING INNOVATION FUND. 1
(C) THE PURPOSE OF THE FUND IS TO PROVIDE LO ANS FOR LOCAL HOUSIN G 2
AUTHORITIES AND COUNTY GOVERNMEN TS TO DEVELOP MIXED –INCOME, 3
CROSS–SUBSIDIZED HOUSING . 4
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 5
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 8
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 9
(F) THE FUND CONSISTS OF : 10
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 11
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 12
THE BENEFIT OF THE FUND. 13
(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION AND 14
SUBSECTION (J) OF THIS SECTION , THE FUND MAY BE USED ONLY TO PROVIDE 15
LOW– OR NO–INTEREST LOANS TO LO CAL HOUSING AUTHORIT IES OR TO COUNTY 16
GOVERNMENTS PARTNERI NG WITH HOUSING DEVE LOPERS THROUGH THE HOUSING 17
INNOVATION PILOT PROGRAM IN ACCORDANCE WITH SUBTITLE 30 OF THIS TITLE. 18
(2) THE FUND MAY BE USED FOR PROJECTS WHERE A C OUNTY, IN 19
CONJUNCTION WITH A L OCAL HOUSING AUTHORI TY OR A HOUSING DEVELOP ER, 20
ACQUIRES EXISTING PR IVATE SECTOR HOUSING . 21
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 22
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 23
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 24
THE GENERAL FUND OF THE STATE. 25
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 26
WITH THE STATE BUDGET . 27
(J) (1) (I) FOR FISCAL YEAR 2025, AN ALLOCATION TO THE HOUSING 28
INNOVATION FUND SHALL BE COMMITT ED TO PROJECTS BEFOR E JULY 1, 2026, 29 SENATE BILL 203 3
SUBJECT TO APPLICANT S BEING AFFORDED A R EASONABLE PERIOD OF TIME TO 1
COMPLETE THE APPLICA TION. 2
(II) FOR FISCAL YEAR 2026 AND EACH FIS CAL YEAR 3
THEREAFTER , AN ALLOCATION TO THE HOUSING INNOVATION FUND IN A FISCAL 4
YEAR SHALL BE COMMIT TED TO PROJECTS BEFO RE THE END OF THAT F ISCAL YEAR, 5
SUBJECT TO APPLICANT S BEING AFFORDED A R EASONABLE PERIOD OF TIME TO 6
COMPLETE THE APPLICA TION. 7
(2) IF AN ALLOCATION OF FUNDS TO THE HOUSING INNOVATION 8
FUND UNDER PARAGRAPH (1) OF THIS SUBSECTION H AS NOT BEEN COMMITTE D TO 9
PROJECTS BEFORE THE END OF THE FISCAL YE AR WHEN THEY WERE AL LOCATED, 10
THE FUNDS SHALL BE E LIGIBLE FOR USE IN S UPPORT OF PROJECTS T HAT APPLY TO 11
THE RENTAL HOUSING PROGRAM ESTABLISHED U NDER SUBTITLE 4 OF THIS TITLE. 12
SUBTITLE 30. HOUSING INNOVATION PILOT PROGRAM. 13
4–3001. 14
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 15
INDICATED. 16
(B) “AUTHORITY” HAS THE MEANING STAT ED IN § 12–101 OF THIS ARTICLE. 17
(B) (C) “FUND” MEANS THE HOUSING INNOVATION FUND. 18
(C) (D) “HOUSING INNOVATION PR OJECT” MEANS A PROJECT TO 19
PROVIDE MIXED –INCOME, CROSS–SUBSIDIZED HOUSING T HAT QUALIFIES UNDER § 20
4–3003 OF THIS SUBTITL E. 21
(D) (E) “PROGRAM” MEANS THE HOUSING INNOVATION PILOT 22
PROGRAM. 23
(E) (F) “PUBLIC OWNERSHIP ” MEANS THAT THE STATE OR A POLITICAL 24
SUBDIVISION OF THE STATE POSSESSES MAJOR ITY OWNERSHIP OR CON TROL 25
AUTHORITY OF THE POL ITICAL SUBDIVISION O F THE STATE IN WHICH THE PROJECT 26
IS LOCATED POSSESSES MAJORITY OWNERSHIP O R CONTROL. 27
4–3002. 28
(A) THERE IS A HOUSING INNOVATION PILOT PROGRAM. 29
(B) THE PURPOSES OF THE PROGRAM ARE : 30
4 SENATE BILL 203
(1) TO CREATE OPPORTUNIT IES FOR THE STATE’S PUBLIC HOUSING 1
AUTHORITIES AND COUNTY GOVERNMENTS TO INCREASE THE VOLU ME OF HOUSING 2
PRODUCTION ; AND 3
(2) TO INCENTIVIZE HOUSING AUTHORITIES TO INCRE ASE 4
OPPORTUNITIES BY PRO VIDING STATE MATCHING FUNDS FOR HOUSING 5
INNOVATION PROJECTS FUNDED THROUGH LOCAL REVOLVING LOAN FUNDS 6
REWARD COUNTIES PURSUING INNOVATIVE SOLUTIONS TO THE PRO BLEM OF 7
HOUSING SCARCITY . 8
(C) THE PROGRAM SHALL BE OPER ATED WITH MONEY IN T HE FUND. 9
4–3003. 10
(A) A PROJECT QUALIFIES AS A HOUSING INNOVATION PROJECT IF: 11
(1) IT PROVIDES NEW HOUS ING IN WHICH: 12
(I) (1) AT LEAST 20% OF THE UNITS ARE SET ASIDE FOR 13
HOUSEHOLDS WITH A GR OSS ANNUAL INCOME OF NOT MORE THAN 50% OF THE AREA 14
MEDIAN INCOME FOR A HOUSEHOLD OF LIKE SI ZE; AND OR 15
(II) (2) AT LEAST 40% OF THE UNITS ARE SET ASIDE FOR 16
HOUSEHOLDS WITH A GR OSS ANNUAL INCOME OF NOT MORE THAN 60% OF THE AREA 17
MEDIAN INCOME FOR A HOUSEHOLD OF LIKE SI ZE;. 18
(B) THE DEPARTMENT SHALL PRIO RITIZE FUNDING FOR P ROJECTS THAT 19
BEST MEET THE FOLLOW ING GUIDELINES : 20
(1) THE PROJECT DOES NOT USE LOW–INCOME HOUSING TAX C REDIT 21
EQUITY OR TAX–EXEMPT VOLUME CAP ; 22
(2) THE AFFORDABLE SET –ASIDES REQUIRED UNDE R ITEM (1) 23
SUBSECTION (A) OF THIS SECTION REMA IN RESTRICTED AT ELE CTED LEVELS FOR 24
AT LEAST 99 YEARS; 25
(3) THE PROJECT REMAINS IN PUBLIC OWNERSHIP ; AND 26
(4) THE PROJECT INCLUDES A COMMITMENT TO PREVAI LING WAGE 27
REQUIREMENTS . 28
4–3004. 29
SENATE BILL 203 5
BEFORE DRAWING DOWN A NY PROGRAM FUNDS , A LOCAL HOUSING 1
AUTHORITY MUST : 2
(1) PROVIDE EVIDENCE SAT ISFACTORY TO THE DEPARTMENT THAT 3
THE PROGRAM FUNDS WILL BE MATCHED BY THE LOCAL HOUSING AUTHORITY ON A 4
DOLLAR–FOR–DOLLAR BASIS; AND 5
(2) MEET OTHER PROGRAM CRITERIA ADOP TED BY THE SECRETARY. 6
4–3005. 7
(A) THE DEPARTMENT SHALL : 8
(1) COORDINATE WITH LOCA L HOUSING AUTHORITIE S AND COUNTY 9
GOVERNMENTS TO ENSURE ACCESS TO OTHER FINANCIAL RESO URCES, INCLUDING 10
SENIOR DEBT PRODUCTS ; AND 11
(2) DEVELOP NEW RESOURCE S IN SUPPORT OF STAT EWIDE HOUSING 12
PRODUCTION ; 13
(3) SOLICIT APPLICANTS F OR THE PROGRAM; AND 14
(4) SUBJECT TO SUBSECTIO N (B) OF THIS SECTION , SELECT THREE 15
PROJECTS TO RECEIVE ASSISTANCE FROM THE PROGRAM EACH IN A DIF FERENT 16
JURISDICTION. 17
(B) THE DEPARTMENT MAY SELECT FEWER THAN THREE PRO JECTS TO 18
FUND IF THERE IS AN INSUFFICIENT NUMBER OF ELIGIBLE APPLICAN TS. 19
4–3006. 4–3005. 20
(A) A LOCAL HOUSING AUTHOR ITY SHALL PROVIDE A 21
DOLLAR–FOR–DOLLAR MATCH FOR PROGRAM FUNDS AWARDED TO HOUSING 22
INNOVATION PROJECTS UNDER THIS SUBTITLE . 23
(B) (A) (1) IN ADMINISTERING THE PROGRAM, THE DEPARTMENT 24
SHALL TAKE INTO CONS IDERATION THE NEED F OR INCREASED DEVELOPMENT 25
CAPACITY WITHIN LOCA L HOUSING AUTHORITIE S. 26
(2) THE DEPARTMENT MAY NOT CO NDITION THE AWARD OF FUNDING 27
FROM THE PROGRAM ON THE ISSUAN CE OF BONDS BY THE DEPARTMENT . 28
6 SENATE BILL 203
(B) (1) FOR EACH OF FISCAL YE ARS 2026 THROUGH 2029, THE 1
GOVERNOR MAY INCLUDE IN THE ANNUAL OPERAT ING OR CAPITAL BUDGE T BILL AN 2
APPROPRIATION OF $5,000,000 TO THE FUND. 3
(2) AN APPROPRIATION UNDE R PARAGRAPH (1) OF THIS SUBSECTION 4
MAY BE ALLOCATED USI NG FUNDING FOR RENTA L HOUSING PROJECTS 5
ADMINISTERED IN ACCO RDANCE WITH SUBTITLE 4 OF THIS TITLE. 6
4–3007. 7
IN ADMINISTERING THE PROGRAM, THE DEPARTMENT SHALL PRIO RITIZE 8
FUNDING FOR PROJECTS THAT DO NOT USE LOW –INCOME HOUSING TAX C REDIT 9
EQUITY OR TAX–EXEMPT VOLUME CAP . 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2024. It shall remain effective for a period of 5 years and, at the end of June 30, 2029, 12
this Act, with no further action required by the General Assembly, shall be abrogated and 13
of no further force and effect. 14
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.