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.
*sb0704*
SENATE BILL 704
C9 4lr2595
CF HB 873
By: Senator Hayes
Introduced and read first time: January 30, 2024
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable
Senate action: Adopted
Read second time: February 26, 2024
CHAPTER ______
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 Development 20
2 SENATE BILL 704
4–2801. 1
(a) In this subtitle the following words have the meanings indicated. 2
(e) “Financial assistance” includes: 3
(1) a grant; 4
(2) a loan; 5
(3) a reduction in the principal obligation of or rate of interest payable on 6
a loan or portion of a loan; 7
(4) a prepayment of interest on a subordinate or superior loan or portion of 8
a loan; 9
(5) an assurance; 10
(6) a guarantee; and 11
(7) any other form of credit enhancement. 12
(g) “Qualified project” means the construction or substantial rehabilitation of a 13
qualified property if the eligible construction expenses do not exceed $500,000. 14
(h) “Qualified property” means residential real property that is: 15
(1) newly constructed or a formerly vacant structure that has been 16
substantially rehabilitated; 17
(2) located in: 18
(i) a low–income census tract as defined by the U.S. Department of 19
Housing and Urban Development; and 20
(ii) an area designated as a sustainable community; and 21
(3) constructed or rehabilitated with the purpose of being sold to an 22
owner–occupant at an affordable sales price. 23
4–2802. 24
(a) There is an Appraisal Gap From Historic Redlining Financial Assistance 25
Program in the Department. 26
(b) The purpose of the Program is to [make] HELP CLOSE APPRAISAL GAPS 27
THAT OCCUR IN HISTOR ICALLY REDLINED NEIG HBORHOODS BY MAKING financial 28 SENATE BILL 704 3
assistance available to: 1
(1) affordable housing developers working in low–income census tracts and 2
sustainable communities [in order to help close appraisal gaps that occur in historically 3
redlined neighborhoods]; AND 4
(2) INDIVIDUALS WHO PURC HASE A QUALIFIED PRO PERTY: 5
(I) AFTER A QUALIFIED PR OJECT IS COMPLETED ; 6
(II) AT AN AFFORDABLE SAL ES PRICE AS DETERMI NED BY 7
REGULATIONS ADOPTED BY THE DEPARTMENT ; AND 8
(III) AS AN OWNER–OCCUPANT. 9
4–2804. 10
(a) Subject to § 4–2805 of this subtitle and the regulations of the [department] 11
DEPARTMENT , the Department shall accept an application for financial assistance from: 12
(1) an individual or business entity that proposes to develop a qualified 13
project; AND 14
(2) AN INDIVIDUAL THAT P ROPOSES TO PURCHASE A QUALIFIED 15
PROPERTY. 16
(b) The application shall be in the form and shall contain any information that 17
the Department requires by regulation. 18
(c) The Department shall approve all applications that qualify for financial 19
assistance under this subtitle in a timely manner. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2024. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.