EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1061*
HOUSE BILL 1061
P1, C9, M5 5lr0753
By: Delegate Moon
Introduced and read first time: February 5, 2025
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
State–Owned Property – Inventory and Disposition – Housing and Solar Energy 2
Production 3
FOR the purpose of requiring each unit of State government to submit to the Department 4
of Planning an inventory of State–owned property used or controlled by the unit; 5
requiring the Department to determine the suitability of each property for use or 6
redevelopment for housing or solar energy production; requiring a unit to sell or 7
donate certain State–owned property in a certain manner for certain uses under 8
certain circumstances; and generally relating to the use and disposition of 9
State–owned property. 10
BY repealing and reenacting, with amendments, 11
Article – Housing and Community Development 12
Section 2–203 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – State Finance and Procurement 17
Section 5–101 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – State Finance and Procurement 22
Section 5–1001 and 5–1002 to be under the new subtitle “Subtitle 10. State–Owned 23
Real Property” 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2024 Supplement) 26
2 HOUSE BILL 1061
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Housing and Community Development 3
2–203. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) “Affordable housing” means residential property that is rented or sold 6
to the public as low–income housing or workforce housing. 7
(3) “Area median income” has the meaning stated in § 4–1801 of this 8
article. 9
(4) “Low–income housing” means housing that is affordable for a household 10
with an aggregate annual income that is below 60% of the area median income. 11
(5) “Workforce housing” has the meaning stated in § 4–1801 of this article. 12
(b) (1) (i) Not later than 60 days after the notice provided under § 5–310(d) 13
of the State Finance and Procurement Article, the Department shall, in consultation with 14
the unit of State government that controls the property, determine if the property is 15
suitable for use or redevelopment as affordable housing. 16
(ii) The Department may not identify a property as suitable for use 17
or redevelopment as affordable housing if the property: 18
1. is located outside an area designated as a priority funding 19
area under Title 5, Subtitle 7B of the State Finance and Procurement Article; or 20
2. belongs in a category of property listed in § 5–310(c)(1)(i) 21
of the State Finance and Procurement Article. 22
(iii) When determining if a property is suitable for use or 23
redevelopment as affordable housing, the Department shall consider whether the property: 24
1. is adequately sized for any type of residential use; 25
2. has access to public utilities; 26
3. has access to feasible ingress and egress points; and 27
4. meets any other factors determined by the Department 28
that are necessary for the property to be used or redeveloped as affordable housing. 29
HOUSE BILL 1061 3
(2) The Department shall compile and regularly update a list of properties 1
it has determined are suitable for use or redevelopment as affordable housing. 2
(3) For each property included in the list required under paragraph (2) of 3
this subsection, the Department shall: 4
(i) give notice of the determination to: 5
1. the unit of State government that controls the property; 6
and 7
2. the State Treasurer; and 8
(ii) advise the unit of State government of the requirements of 9
subsection (c) of this section. 10
(4) The list required under paragraph (2) of this subsection shall be made 11
available to the public. 12
(c) (1) (i) Except as provided in paragraphs (4) and (5) of this subsection, 13
on receipt of the notice required under subsection (b)(3) of this section, the unit of State 14
government shall, in consultation with the Department and the Department of Planning, 15
develop a proposal to donate or sell the listed property by: 16
1. donating or selling the property to a nonprofit 17
organization that contracts to use or redevelop the property, IN WHOLE OR IN PART , as 18
affordable housing OR A MIXED –USE DEVELOPMENT CONT AINING AFFORDABLE 19
HOUSING; or 20
2. selling the property to a buyer that contracts to use or 21
redevelop the property as [affordable] housing OR A MIXED–USE DEVELOPMENT 22
CONTAINING HOUSING . 23
(ii) 1. If, after reasonable effort, the unit is unable to identify a 24
suitable nonprofit organization or buyer in accordance with subparagraph (i) of this 25
paragraph, EXCEPT AS PROVIDED I N SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH , 26
the unit shall develop a proposal to sell the property at auction. 27
2. IF, AFTER REASONABLE EFF ORT, THE UNIT IS UNABLE 28
TO IDENTIFY A SUITAB LE NONPROFIT ORGANIZ ATION OR BUYE R IN ACCORDANCE 29
WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH AN D IF THE DEPARTMENT OF 30
PLANNING HAS DETERMIN ED THAT THE PROPERTY IS SUITABLE FOR USE FOR 31
SOLAR ENERGY PRODUCT ION UNDER § 5–1002 OF THE STATE FINANCE AND 32
PROCUREMENT ARTICLE, THE UNIT SHALL DEVELOP A PROPOSAL T O FIRST 33
ATTEMPT TO LEASE THE PROPERTY FOR SOLAR E NERGY PRODUCTION AND IF THE 34
UNIT IS UNABLE TO LE ASE THE PROPERTY , THEN SELL THE PROPER TY AT AUCTION. 35 4 HOUSE BILL 1061
(iii) A proposal developed under this paragraph shall be submitted to 1
the Board of Public Works for consideration in accordance with § 10–305 of the State 2
Finance and Procurement Article. 3
(2) The unit of State government shall consider the proposed period of 4
affordability, the number of affordable housing units created, and the viability of an offer 5
when evaluating offers from multiple nonprofit organizations or buyers under this 6
subsection. 7
(3) When a property is donated or sold in accordance with a proposal 8
developed under this subsection, the unit shall give notice of the disposition to the 9
Department. 10
(4) A unit may not propose to donate or sell a property under this 11
subsection if the donation or sale would: 12
(i) violate any covenant or applicable federal law; or 13
(ii) in the opinion of the State Treasurer, adversely affect the 14
tax–exempt status of an outstanding State bond, the proceeds of which were allocated to 15
purchase or improve the property. 16
(5) Nothing in this subsection shall be construed to supersede the right of 17
a person from whom real property was acquired or their successor in interest to reacquire 18
the property under § 8–309 of the Transportation Article. 19
(d) On or before December 31, 2024, and each December 31 thereafter, the 20
Department shall report to the General Assembly, in accordance with § 2–1257 of the State 21
Government Article: 22
(1) the number of proposals submitted to the Board of Public Works under 23
this section; 24
(2) the number of properties that were donated pursuant to proposals 25
developed under this section; and 26
(3) the number of properties that were sold pursuant to proposals 27
developed under this section. 28
Article – State Finance and Procurement 29
5–101. 30
(a) In this title the following words have the meanings indicated. 31
(b) “Department” means the Department of Planning. 32 HOUSE BILL 1061 5
(c) “Secretary” means the Secretary of Planning. 1
SUBTITLE 10. STATE–OWNED REAL PROPERTY. 2
5–1001. 3
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(B) “AFFORDABLE HOUSING ” MEANS RESIDENTIAL PR OPERTY THAT IS 6
RENTED OR SOLD TO TH E PUBLIC AS LOW –INCOME HOUSING OR WO RKFORCE 7
HOUSING. 8
(C) “AREA MEDIAN INCOME ” HAS THE MEANING STAT ED IN § 4–1801 OF THE 9
HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 10
(D) “LOW–INCOME HOUSING ” MEANS HOUSING THAT I S AFFORDABLE FOR A 11
HOUSEHOLD WITH AN AG GREGATE ANNUAL INCOM E THAT IS BELOW 60% OF THE 12
AREA MEDIAN INCOME . 13
(E) “WORKFORCE HOUSING ” HAS THE MEANING STAT ED IN § 4–1801 OF THE 14
HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 15
5–1002. 16
(A) (1) ON OR BEFORE DECEMBER 31, 2027, AND EVERY 5 YEARS 17
THEREAFTER , EACH UNIT OF STATE GOVERNMENT SHALL PROVIDE TO THE 18
DEPARTMENT AN INVENTO RY OF ALL STATE–OWNED REAL PROPERTY USED BY OR 19
UNDER THE CONTROL OF THE UNIT. 20
(2) THE INVENTORY SHALL C ONTAIN A DESCRIPTION OF EACH 21
PROPERTY AND HOW IT IS USED BY THE UNIT . 22
(3) IN CONSULTATION WITH THE DEPARTMENT OF HOUSING AND 23
COMMUNITY DEVELOPMENT AND THE MARYLAND ENERGY ADMINISTRATION , THE 24
DEPARTMENT SHALL DETE RMINE THE SUITABILIT Y OF EACH PROPERTY I N THE 25
INVENTORY FOR USE OR REDEVELOPMENT FOR: 26
(I) 1. AFFORDABLE HOUSING, IN WHOLE OR IN PART ; OR 27
2. A MIXED –USE DEVELOPMENT CONT AINING 28
AFFORDABLE HOUSING; OR 29 6 HOUSE BILL 1061
(II) SOLAR ENERGY PRODUCT ION. 1
(4) PROPERTY IN THE INVEN TORY MAY BE DETERMIN ED TO BE 2
SUITABLE FOR USE OR REDEVELOPMENT AS HOU SING ONLY IF THE PRO PERTY IS 3
LOCATED IN AN AREA Z ONED FOR RESIDENTIAL OR MIXED USE. 4
(5) WHEN DETERMINING IF A PROPERTY IS SUITABLE FOR USE OR 5
REDEVELOPMENT AS HOU SING, THE DEPARTMENT SHALL CONS IDER WHETHER THE 6
PROPERTY: 7
(I) IS ADEQUATELY SIZED FOR ANY TYPE OF RESI DENTIAL USE; 8
(II) HAS ACCESS TO PUBLIC UTILITIES; 9
(III) HAS ACCESS TO FEASIB LE INGRESS AND EGRES S POINTS; 10
AND 11
(IV) MEETS ANY OTHER FACT ORS DETERMINED BY TH E 12
DEPARTMENT THAT ARE N ECESSARY FOR THE PRO PERTY TO BE USED OR 13
REDEVELOPED AS HOUSI NG. 14
(6) THE DEPARTMENT MAY CONSIDER T HE SUITABILITY OF 15
PROPERTY TO BE : 16
(I) LEASED FOR SOLAR ENE RGY PRODUCTION ; AND 17
(II) USED FOR SOLAR ENERG Y PRODUCTION CONCURR ENTLY 18
WITH A SEPARATE USE OF THE PROPERTY BY T HE UNIT. 19
(7) FOR EACH PROPERTY , THE DEPARTMENT SHALL SPECIFY: 20
(I) WHETHER THE PROPERTY IS APPROPRIATE FOR ONE OF 21
THE USES SPECIFIED I N PARAGRAPH (3) OF THIS SUBSECTION ; AND 22
(II) WHICH USE IS APPROPR IATE FOR EACH PROPER TY ON THE 23
LIST, IF ANY. 24
(8) ON OR BEFORE JULY 1, 2028, AND EVERY 5 YEARS THEREAFTER , 25
THE DEPARTMENT SHALL SEND THE INVENTORY TO THE GOVERNOR AND , IN 26
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL 27
ASSEMBLY. 28
HOUSE BILL 1061 7
(B) (1) NOT LATER THAN 60 DAYS AFTER THE NOTIC E PROVIDED UNDER 1
§ 5–310(D) OF THIS TITLE, THE DEPARTMENT , IN CONSULTATION WITH THE 2
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND THE MARYLAND 3
ENERGY ADMINISTRATION , SHALL IDENTIFY WHICH RELEVANT PROPERTIES IN THE 4
INVENTORY ARE SUITABLE FOR USE OR REDEVELOPMENT FOR HO USING OR SOLAR 5
ENERGY PRODUCTION . 6
(2) FOR EACH PROPERTY IDENTIFIED UNDER PARAGRAPH (1) OF 7
THIS SUBSECTION AS SUITABLE FOR USE OR REDEVELOPMENT FOR HOUSING OR 8
SOLAR ENERGY PRODUCT ION, THE DEPARTMENT SHALL : 9
(I) GIVE NOTICE OF THE D ETERMINATION TO : 10
1. THE UNIT OF STATE GOVERNMENT THAT CONTROLS 11
THE PROPERTY ; AND 12
2. THE STATE TREASURER; AND 13
(II) ADVISE THE UNIT OF STATE GOVERNMENT OF T HE 14
REQUIREMENTS OF SUBS ECTION (C) OF THIS SECTION. 15
(3) THE LIST OF PROPERTIES IDENTIFIED UNDER PARAGRAPH (1) OF 16
THIS SUBSECTION AS SUITABLE FOR USE OR REDEVELOPMENT FOR HOUSING SHALL 17
BE MADE AVAILABLE TO THE PUBLIC. 18
(C) (1) (I) EXCEPT AS PROVIDED IN SUBSECTION S (D) AND (E) OF THIS 19
SECTION, AND ON RECEIPT OF THE NO TICE REQUIRED UNDER SUBSECTION (B)(2) 20
OF THIS SECTION , THE UNIT OF STATE GOVERNMENT SHAL L, IN CONSULTATION 21
WITH THE DEPARTMENT , DEVELOP A PROPOSAL T O DONATE OR SELL THE 22
RELEVANT PROPERTY AS FOLLOWS: 23
1. IF THE PROPERTY HAS BEEN DETERMINED TO BE 24
SUITABLE FOR HOUSING , INCLUDING AFFORDABLE HOUSING, BY: 25
A. DONATING OR SELLING THE PROPERTY TO A 26
NONPROFIT ORGANIZATI ON THAT CONTRACTS TO USE OR REDEVELOP THE 27
PROPERTY IN WHOLE OR IN PART FOR HOUSING, WITH A PRIORITY FOR USE AS 28
AFFORDABLE HOUSING ; OR 29
B. SELLING THE PR OPERTY TO A BUYER TH AT 30
CONTRACTS TO USE OR REDEVELOP THE PROPER TY IN WHOLE OR IN PART AS 31
HOUSING, WITH A PRIORITY FOR USE AS AFFORDABLE HO USING; OR 32
8 HOUSE BILL 1061
2. IF THE PROPERTY HAS BEEN DETERMINED TO B E 1
SUITABLE FOR SOLAR ENERGY PRODUCT ION, BY SELLING THE PROPERTY TO A 2
PERSON THAT CONTRACTS TO US E OR REDEVELOP THE P ROPERTY FOR SOLAR 3
ENERGY PRODUCTION . 4
(II) IF THE PROPERTY HAS B EEN DETERMINED TO BE SUITABLE 5
FOR MORE THAN ONE US E UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 6
PROPERTY SHALL BE OFFERED FOR DONATION OR SALE FOR A USE LI STED IN 7
SUBPARAGRAPH (I) OF THIS PARAGRAPH IN THE ORDER THAT THE U SES ARE LISTED. 8
(III) IF, AFTER REASONABLE EFF ORT, THE UNIT IS UNABLE T O 9
IDENTIFY A SUITABLE NONPROFIT ORGANIZATI ON OR BUYER IN ACCOR DANCE WITH 10
SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE UNIT SHALL DEVEL OP A PROPOSAL 11
TO SELL THE PROPERTY AT AUCTION. 12
(IV) A PROPOSAL DEVELOPED U NDER THIS PARAGRAPH SHALL 13
BE SUBMITTED TO THE BOARD OF PUBLIC WORKS FOR CONSIDERATI ON IN 14
ACCORDANCE WITH § 10–305 OF THIS ARTICLE. 15
(2) IF THE PROPERTY SHALL BE USED OR REDEVELOP ED, IN WHOLE 16
OR IN PART , FOR AFFORDABLE HOUSI NG, THE UNIT SHALL CONSID ER THE 17
PROPOSED PERIOD OF A FFORDABILITY , THE NUMBER OF AFFORD ABLE HOUSING 18
UNITS CREATED , AND THE VIABILITY OF AN OFFER WHEN EVALUA TING OFFERS 19
FROM MULTIPLE NONPRO FIT ORGANIZATIONS OR BUYERS UNDER PARAGRAPH 20
(1)(I)1A OF THIS SUBSECTION . 21
(3) WHEN A PROPERTY IS DO NATED OR SOLD IN ACC ORDANCE WITH 22
A PROPOSAL DEVELOPED UNDER THIS SUBSECTIO N, THE UNIT SHALL GIVE NOTICE 23
OF THE DISPOSITION T O THE DEPARTMENT . 24
(D) IF THE DEPARTMENT HAS DETERM INED THAT A PROPERTY IS NOT 25
SUITABLE FOR USE AS HOUSING BUT IS SUITABLE F OR USE FOR SOLAR ENE RGY 26
PRODUCTION , THE UNIT, IN CONSULTATION WITH THE DEPARTMENT , MAY 27
CONSIDER: 28
(1) LEASING THE PROPERTY FOR SOLAR ENERGY PRO DUCTION; OR 29
(2) USING THE PROPERTY FOR SOLAR ENERGY PRO DUCTION 30
CONCURRENTLY WITH A SEPARATE USE OF THE PROPERTY BY THE UNIT . 31
(E) (1) A UNIT MAY NOT PROPOSE TO DONATE OR SELL A PROPERTY 32
UNDER THIS SECTION I F THE DONATION OR SA LE WOULD: 33
HOUSE BILL 1061 9
(I) VIOLATE ANY COVENANT OR APPLICABLE FEDERA L LAW; OR 1
(II) IN THE OPINION OF TH E STATE TREASURER, ADVERSELY 2
AFFECT THE TAX –EXEMPT STATUS OF AN OUTSTANDING STATE BOND , THE 3
PROCEEDS OF WHICH WE RE ALLOCATED TO PURC HASE OR IMPROVE THE 4
PROPERTY. 5
(2) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO SUPERSEDE 6
THE RIGHT OF A PERSO N FROM WHOM REAL PRO PERTY WAS ACQUIRED OR THE 7
PERSON’S SUCCESSOR IN INTERES T TO REACQUIRE THE P ROPERTY UNDER § 8–309 8
OF THE TRANSPORTATION ARTICLE. 9
(F) ON OR BEFORE DECEMBER 31, 2025, AND EACH DECEMBER 31 10
THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 11
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE: 12
(1) THE NUMBER OF PROPOS ALS SUBMITTED TO THE BOARD OF 13
PUBLIC WORKS UNDER SUBSECTION (C) OF THIS SECTION; 14
(2) THE NUMBER OF PROPER TIES THAT WERE DONAT ED IN 15
ACCORDANCE WITH PROPOSALS DEVELOPED UNDER SUBSECTION (C) OF THIS 16
SECTION; 17
(3) THE NUMBER OF PROPER TIES THAT WERE SOLD IN ACCORDANCE 18
WITH PROPOSALS DEVELOPED UNDER SUBSECTION (C) OF THIS SECTION; AND 19
(4) THE NUMBER OF PROPER TIES LEASED OR USED CONCURRENTLY 20
WITH A UNIT UNDER SUBSECTIO N (D) OF THIS SECTION. 21
SECTION 2. AND BE IT FURTHER ENACTED, That , on or before December 31, 22
2030: 23
(1) at least 10,000 housing units shall be constructed on land that was 24
owned by the State on the effective date of this Act; and 25
(2) at least 55 megawatts of solar energy shall be produced on land that 26
was owned by the State on the effective date of this Act. 27
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2025. 29