EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0704*
SENATE BILL 704
C9 4lr2595
CF 4lr2596
By: Senator Hayes
Introduced and read first time: January 30, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Appraisal Gap From Historic Redlining Financial Assistance Program – 2
Alterations 3
FOR the purpose of expanding eligibility for financial assistance under the Appraisal Gap 4
From Historic Redlining Financial Assistance Program to include individuals who 5
purchase certain qualified property as an owner–occupant; and generally relating to 6
the Appraisal Gap From Historic Redlining Financial Assistance Program. 7
BY repealing and reenacting, without amendments, 8
Article – Housing and Community Development 9
Section 4–2801(a), (e), (g), and (h) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2023 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Housing and Community Development 14
Section 4–2802 and 4–2804 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2023 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Housing and Community De velopment 20
4–2801. 21
(a) In this subtitle the following words have the meanings indicated. 22
(e) “Financial assistance” includes: 23
2 SENATE BILL 704
(1) a grant; 1
(2) a loan; 2
(3) a reduction in the principal obligation of or rate of interest payable on 3
a loan or portion of a loan; 4
(4) a prepayment of interest on a subordinate or superior loan or portion of 5
a loan; 6
(5) an assurance; 7
(6) a guarantee; and 8
(7) any other form of credit enhancement. 9
(g) “Qualified project” means the construction or substantial rehabilitation of a 10
qualified property if the eligible construction expenses do not exceed $500,000. 11
(h) “Qualified property” means residential real property that is: 12
(1) newly constructed or a formerly vacant structure that has been 13
substantially rehabilitated; 14
(2) located in: 15
(i) a low–income census tract as defined by the U.S. Department of 16
Housing and Urban Development; and 17
(ii) an area designated as a sustainable community; and 18
(3) constructed or rehabilitated with the purpose of being sold to an 19
owner–occupant at an affordable sales price. 20
4–2802. 21
(a) There is an Appraisal Gap From Historic Redlining Financial Assistance 22
Program in the Department. 23
(b) The purpose of the Program is to [make] HELP CLOSE APPRAISAL GAPS 24
THAT OCCUR IN HISTORICALLY REDL INED NEIGHBORHOODS B Y MAKING financial 25
assistance available to: 26
(1) affordable housing developers working in low–income census tracts and 27
sustainable communities [in order to help close appraisal gaps that occur in historically 28
redlined neighborhoods]; AND 29 SENATE BILL 704 3
(2) INDIVIDUALS WHO PURC HASE A QUALIFIED PRO PERTY: 1
(I) AFTER A QUALIFIED PR OJECT IS COMPLETED ; 2
(II) AT AN AFFORDABLE SAL ES PRICE AS DETERMIN ED BY 3
REGULATIONS ADOPTED BY THE DEPARTMENT ; AND 4
(III) AS AN OWNER–OCCUPANT. 5
4–2804. 6
(a) Subject to § 4–2805 of this subtitle and the regulations of the [department] 7
DEPARTMENT , the Department shall accept an application for financial assistance from: 8
(1) an individual or business entity that proposes to develop a qualified 9
project; AND 10
(2) AN INDIVIDUAL THAT P ROPOSES TO PURCHASE A QUALIFIED 11
PROPERTY. 12
(b) The application shall be in the form and shall contain any information that 13
the Department requires by regulation. 14
(c) The Department shall approve all applications that qualify for financial 15
assistance under this subtitle in a timely manner. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2024. 18