MD
Maryland Senate Bill SB704

Maryland 2024 Regular Session

Maryland Senate Bill SB704 Compare Versions

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1- WES MOORE, Governor Ch. 156
21
3-– 1 –
4-Chapter 156
5-(Senate Bill 704)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0704*
89
9-Appraisal Gap From Historic Redlining Financial Assistance Program –
10-Alterations
10+SENATE BILL 704
11+C9 4lr2595
12+ CF HB 873
13+By: Senator Hayes
14+Introduced and read first time: January 30, 2024
15+Assigned to: Education, Energy, and the Environment
16+Committee Report: Favorable
17+Senate action: Adopted
18+Read second time: February 26, 2024
1119
12-FOR the purpose of expanding eligibility for financial assistance under the Appraisal Gap
13-From Historic Redlining Financial Assistance Program to include individuals who
14-purchase certain qualified property as an owner–occupant; and generally relating to
15-the Appraisal Gap From Historic Redlining Financial Assistance Program.
20+CHAPTER ______
1621
17-BY repealing and reenacting, without amendments,
18- Article – Housing and Community Development
19- Section 4–2801(a), (e), (g), and (h)
20- Annotated Code of Maryland
21- (2019 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
2223
23-BY repealing and reenacting, with amendments,
24- Article – Housing and Community Development
25- Section 4–2802 and 4–2804
26- Annotated Code of Maryland
27- (2019 Replacement Volume and 2023 Supplement)
24+Appraisal Gap From Historic Redlining Financial Assistance Program – 2
25+Alterations 3
2826
29- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND ,
30-That the Laws of Maryland read as follows:
27+FOR the purpose of expanding eligibility for financial assistance under the Appraisal Gap 4
28+From Historic Redlining Financial Assistance Program to include individuals who 5
29+purchase certain qualified property as an owner–occupant; and generally relating to 6
30+the Appraisal Gap From Historic Redlining Financial Assistance Program. 7
3131
32-Article – Housing and Community Development
32+BY repealing and reenacting, without amendments, 8
33+ Article – Housing and Community Development 9
34+ Section 4–2801(a), (e), (g), and (h) 10
35+ Annotated Code of Maryland 11
36+ (2019 Replacement Volume and 2023 Supplement) 12
3337
34-4–2801.
38+BY repealing and reenacting, with amendments, 13
39+ Article – Housing and Community Development 14
40+ Section 4–2802 and 4–2804 15
41+ Annotated Code of Maryland 16
42+ (2019 Replacement Volume and 2023 Supplement) 17
3543
36- (a) In this subtitle the following words have the meanings indicated.
44+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
45+That the Laws of Maryland read as follows: 19
3746
38- (e) “Financial assistance” includes:
47+Article – Housing and Community Development 20
48+ 2 SENATE BILL 704
3949
40- (1) a grant;
4150
42- (2) a loan;
51+4–2801. 1
4352
44- (3) a reduction in the principal obligation of or rate of interest payable on
45-a loan or portion of a loan;
53+ (a) In this subtitle the following words have the meanings indicated. 2
4654
47- (4) a prepayment of interest on a subordinate or superior loan or portion of
48-a loan;
49- Ch. 156 2024 LAWS OF MARYLAND
55+ (e) “Financial assistance” includes: 3
5056
51-– 2 –
52- (5) an assurance;
57+ (1) a grant; 4
5358
54- (6) a guarantee; and
59+ (2) a loan; 5
5560
56- (7) any other form of credit enhancement.
61+ (3) a reduction in the principal obligation of or rate of interest payable on 6
62+a loan or portion of a loan; 7
5763
58- (g) “Qualified project” means the construction or substantial rehabilitation of a
59-qualified property if the eligible construction expenses do not exceed $500,000.
64+ (4) a prepayment of interest on a subordinate or superior loan or portion of 8
65+a loan; 9
6066
61- (h) “Qualified property” means residential real property that is:
67+ (5) an assurance; 10
6268
63- (1) newly constructed or a formerly vacant structure that has been
64-substantially rehabilitated;
69+ (6) a guarantee; and 11
6570
66- (2) located in:
71+ (7) any other form of credit enhancement. 12
6772
68- (i) a low–income census tract as defined by the U.S. Department of
69-Housing and Urban Development; and
73+ (g) “Qualified project” means the construction or substantial rehabilitation of a 13
74+qualified property if the eligible construction expenses do not exceed $500,000. 14
7075
71- (ii) an area designated as a sustainable community; and
76+ (h) “Qualified property” means residential real property that is: 15
7277
73- (3) constructed or rehabilitated with the purpose of being sold to an
74-owner–occupant at an affordable sales price.
78+ (1) newly constructed or a formerly vacant structure that has been 16
79+substantially rehabilitated; 17
7580
76-4–2802.
81+ (2) located in: 18
7782
78- (a) There is an Appraisal Gap From Historic Redlining Financial Assistance
79-Program in the Department.
83+ (i) a low–income census tract as defined by the U.S. Department of 19
84+Housing and Urban Development; and 20
8085
81- (b) The purpose of the Program is to [make] HELP CLOSE APPRAISAL GAPS
82-THAT OCCUR IN HISTOR ICALLY REDLINED NEIG HBORHOODS BY MAKING financial
83-assistance available to:
86+ (ii) an area designated as a sustainable community; and 21
8487
85- (1) affordable housing developers working in low–income census tracts and
86-sustainable communities [in order to help close appraisal gaps that occur in historically
87-redlined neighborhoods]; AND
88+ (3) constructed or rehabilitated with the purpose of being sold to an 22
89+owner–occupant at an affordable sales price. 23
8890
89- (2) INDIVIDUALS WHO PURC HASE A QUALIFIED PRO PERTY:
91+4–2802. 24
9092
91- (I) AFTER A QUALIFIED PROJECT IS COMPLETED ;
93+ (a) There is an Appraisal Gap From Historic Redlining Financial Assistance 25
94+Program in the Department. 26
9295
93- (II) AT AN AFFORDABLE SAL ES PRICE AS DETERMIN ED BY
94-REGULATIONS ADOPTED BY THE DEPARTMENT ; AND
96+ (b) The purpose of the Program is to [make] HELP CLOSE APPRAISAL GAPS 27
97+THAT OCCUR IN HISTOR ICALLY REDLINED NEIG HBORHOODS BY MAKING financial 28 SENATE BILL 704 3
9598
96- (III) AS AN OWNER–OCCUPANT. WES MOORE, Governor Ch. 156
9799
98-– 3 –
100+assistance available to: 1
99101
100-4–2804.
102+ (1) affordable housing developers working in low–income census tracts and 2
103+sustainable communities [in order to help close appraisal gaps that occur in historically 3
104+redlined neighborhoods]; AND 4
101105
102- (a) Subject to § 4–2805 of this subtitle and the regulations of the [department]
103-DEPARTMENT , the Department shall accept an application for financial assistance from:
106+ (2) INDIVIDUALS WHO PURC HASE A QUALIFIED PRO PERTY: 5
104107
105- (1) an individual or business entity that proposes to develop a qualified
106-project; AND
108+ (I) AFTER A QUALIFIED PR OJECT IS COMPLETED ; 6
107109
108- (2) AN INDIVIDUAL THAT P ROPOSES TO PURCHASE A QUALIFIED
109-PROPERTY.
110+ (II) AT AN AFFORDABLE SAL ES PRICE AS DETERMI NED BY 7
111+REGULATIONS ADOPTED BY THE DEPARTMENT ; AND 8
110112
111- (b) The application shall be in the form and shall contain any information that
112-the Department requires by regulation.
113+ (III) AS AN OWNER–OCCUPANT. 9
113114
114- (c) The Department shall approve all applications that qualify for financial
115-assistance under this subtitle in a timely manner.
115+4–2804. 10
116116
117- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
118-1, 2024.
117+ (a) Subject to § 4–2805 of this subtitle and the regulations of the [department] 11
118+DEPARTMENT , the Department shall accept an application for financial assistance from: 12
119119
120-Approved by the Governor, April 25, 2024.
120+ (1) an individual or business entity that proposes to develop a qualified 13
121+project; AND 14
122+
123+ (2) AN INDIVIDUAL THAT P ROPOSES TO PURCHASE A QUALIFIED 15
124+PROPERTY. 16
125+
126+ (b) The application shall be in the form and shall contain any information that 17
127+the Department requires by regulation. 18
128+
129+ (c) The Department shall approve all applications that qualify for financial 19
130+assistance under this subtitle in a timely manner. 20
131+
132+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
133+1, 2024. 22
134+
135+
136+
137+Approved:
138+________________________________________________________________________________
139+ Governor.
140+________________________________________________________________________________
141+ President of the Senate.
142+________________________________________________________________________________
143+ Speaker of the House of Delegates.