MD
Maryland House Bill HB1085

Maryland 2025 Regular Session

Maryland House Bill HB1085 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [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.
85 *hb1085*
96
107 HOUSE BILL 1085
118 C9, Q1, Q2 5lr2644
129
1310 By: Delegates Fair, Palakovich Carr, Allen, Charkoudian, Ebersole, Foley,
1411 Holmes, Kaufman, Kerr, Schindler, Simpson, Solomon, Spiegel, and Stewart
1512 Introduced and read first time: February 5, 2025
1613 Assigned to: Environment and Transportation and Ways and Means
17-Committee Report: Favorable with amendments
18-House action: Adopted
19-Read second time: March 5, 2025
2014
21-CHAPTER ______
15+A BILL ENTITLED
2216
2317 AN ACT concerning 1
2418
2519 Housing Authorities – Tax–Exempt Status – Modifications 2
2620
2721 FOR the purpose of exempting certain property owned by public housing authorities, 3
2822 certain subsidiary entities of public housing authorities, and certain nonprofit 4
2923 housing corporations from State and local taxation; directing public housing 5
3024 authorities, certain subsidiary entities of public housing authorities, and certain 6
3125 nonprofit housing corporations to make payments in lieu of taxes that may be set by 7
3226 agreements with political subdivisions; and generally relating to the tax–exempt 8
33-status of public housing authorities in the State real property owned by certain 9
34-nonprofit entities created by public housing authorities from State and local property 10
35-taxation; directing certain nonprofit entities created by public housing authorities to 11
36-make payments in lieu of taxes that may be set by mutual agreement with a political 12
37-subdivision; and generally relating to a tax exemption for nonprofit entities created 13
38-by public housing authorities. 14
27+status of public housing authorities in the State. 9
3928
40-BY repealing and reenacting, with amendments, 15
41- Article – Housing and Community Development 16
42-Section 12–104 17
43- Annotated Code of Maryland 18
44- (2019 Replacement Volume and 2024 Supplement) 19
29+BY repealing and reenacting, with amendments, 10
30+ Article – Housing and Community Development 11
31+Section 12–104 12
32+ Annotated Code of Maryland 13
33+ (2019 Replacement Volume and 2024 Supplement) 14
4534
46- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
47-That the Laws of Maryland read as follows: 21
35+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
36+That the Laws of Maryland read as follows: 16
37+
38+Article – Housing and Community Development 17
39+
40+12–104. 18
41+
42+ (a) [(1)] In this section [the following words have the meanings indicated], 19
43+“HOUSING AUTHORITY ENTITY” MEANS AN ENTITY : 20
44+
45+ [(2) “Baltimore Housing Authority entity” means an entity: 21
4846 2 HOUSE BILL 1085
4947
5048
51-Article – Housing and Community Development 1
49+ (i) that is controlled or wholly owned by the Housing Authority of 1
50+Baltimore City; or 2
5251
53-12–104. 2
52+ (ii) in which the Housing Authority of Baltimore City or an entity 3
53+controlled or wholly owned by the Housing Authority of Baltimore City has an ownership 4
54+interest, either directly or indirectly, through one or more wholly or partially owned 5
55+subsidiary entities. 6
5456
55- (a) [(1)] In this section [the following words have the meanings indicated], 3
56-“HOUSING AUTHORITY EN TITY” MEANS AN ENTITY : 4
57+ (3) “Howard County Housing Commission entity” means an entity: 7
5758
58- [(2) “Baltimore Housing Authority entity” means an entity: 5
59+ (i) that is controlled or wholly owned by the Howard County 8
60+Housing Commission; or 9
5961
60- (i) that is controlled or wholly owned by the Housing Authority of 6
61-Baltimore City; or 7
62+ (ii) in which the Howard County Housing Commission or an entity 10
63+controlled or wholly owned by the Howard County Housing Commission has an ownership 11
64+interest, either directly or indirectly, through one or more wholly or partially owned 12
65+subsidiary entities. 13
6266
63- (ii) in which the Housing Authority of Baltimore City or an entity 8
64-controlled or wholly owned by the Housing Authority of Baltimore City has an ownership 9
65-interest, either directly or indirectly, through one or more wholly or partially owned 10
66-subsidiary entities. 11
67+ (4) “Montgomery County Housing Authority entity” means an entity that 14
68+is controlled or wholly owned by the Housing Opportunities Commission of Montgomery 15
69+County.] 16
6770
68- (3) “Howard County Housing Commission entity” means an entity: 12
71+ (1) THAT IS CONTROLLED O R WHOLLY OWNED BY AN AUTHORITY; OR 17
6972
70- (i) that is controlled or wholly owned by the Howard County 13
71-Housing Commission; or 14
73+ (2) IN WHICH AN AUTHORIT Y OR AN ENTITY CONTR OLLED OR WHOLLY 18
74+OWNED BY AN AUTHORIT Y HAS AN OWNERSHIP I NTEREST, EITHER DIRECTLY OR 19
75+INDIRECTLY, THROUGH ONE OR MORE WHOLLY OR PARTIALLY OWNED SUBSIDI ARY 20
76+ENTITIES. 21
7277
73- (ii) in which the Howard County Housing Commission or an entity 15
74-controlled or wholly owned by the Howard County Housing Commission has an ownership 16
75-interest, either directly or indirectly, through one or more wholly or partially owned 17
76-subsidiary entities. 18
78+ (b) [(1)] A nonprofit entity shall be deemed controlled by [the Housing Authority 22
79+of Baltimore City] AN AUTHORITY under subsection [(a)(2)] (A) of this section if: 23
7780
78- (4) “Montgomery County Housing Authority entity” means an entity that 19
79-is controlled or wholly owned by the Housing Opportunities Commission of Montgomery 20
80-County.] 21
81+ [(i) the nonprofit entity is established by the Housing Authority of 24
82+Baltimore City under § 12–502(h) of this title; and 25
8183
82- (1) THAT IS CONTROLLED O R WHOLLY OWNED BY AN AUTHORITY; OR 22
84+ (ii) the Housing Authority of Baltimore City: 26
8385
84- (2) IN WHICH AN AUTHORIT Y OR AN ENTITY CONTR OLLED OR WHOLLY 23
85-OWNED BY AN AUTHORIT Y HAS AN OWNERSHIP I NTEREST, EITHER DIRECTLY OR 24
86-INDIRECTLY, THROUGH ONE OR MORE WHOLLY OR PARTIALLY OWNED SUBSIDIARY 25
87-ENTITIES. 26
86+ 1. has the power to appoint a majority of the board of 27
87+directors of the nonprofit entity; or 28
8888
89- (b) [(1)] A nonprofit entity shall be deemed controlled by [the Housing Authority 27
90-of Baltimore City] AN AUTHORITY under subsection [(a)(2)] (A) of this section if: 28
89+ 2. is the sole member of the nonprofit entity. 29
9190
92- [(i) the nonprofit entity is established by the Housing Authority of 29
93-Baltimore City under § 12–502(h) of this title; and 30
94-
95- (ii) the Housing Authority of Baltimore City: 31
91+ (2) A nonprofit entity shall be deemed controlled by the Howard County 30
92+Housing Commission under subsection (a)(3) of this section if: 31
9693 HOUSE BILL 1085 3
9794
9895
99- 1. has the power to appoint a majority of the board of 1
100-directors of the nonprofit entity; or 2
96+ (i) the nonprofit entity is established by the Howard County 1
97+Housing Commission under § 12–502(h) of this title; and 2
10198
102- 2. is the sole member of the nonprofit entity. 3
99+ (ii) the Howard County Housing Commission: 3
103100
104- (2) A nonprofit entity shall be deemed controlled by the Howard County 4
105-Housing Commission under subsection (a)(3) of this section if: 5
101+ 1. has the power to appoint a majority of the board of 4
102+directors of the nonprofit entity; or 5
106103
107- (i) the nonprofit entity is established by the Howard County 6
108-Housing Commission under § 12–502(h) of this title; and 7
104+ 2. is the sole member of the nonprofit entity. 6
109105
110- (ii) the Howard County Housing Commission: 8
106+ (3) A nonprofit entity shall be deemed controlled by the H ousing 7
107+Opportunities Commission of Montgomery County under subsection (a)(4) of this section if: 8
111108
112- 1. has the power to appoint a majority of the board of 9
113-directors of the nonprofit entity; or 10
109+ (i) the nonprofit entity is established by the Housing Opportunities 9
110+Commission of Montgomery County under § 12–502(h) of this title; and 10
114111
115- 2. is the sole member of the nonprofit entity. 11
112+ (ii) the Housing Opportunities Commission of Montgomery County: 11
116113
117- (3) A nonprofit entity shall be deemed controlled by the Housing 12
118-Opportunities Commission of Montgomery County under subsection (a)(4) of this section if: 13
114+ 1. has the power to appoint a majority of the board of 12
115+directors of the nonprofit entity; 13
119116
120- (i) the nonprofit entity is established by the Housing Opportunities 14
121-Commission of Montgomery County under § 12–502(h) of this title; and 15
117+ 2. holds a majority of all managing member interests in the 14
118+entity; 15
122119
123- (ii) the Housing Opportunities Commission of Montgomery County: 16
120+ 3. holds a majority of the general partner interests in the 16
121+entity; or 17
124122
125- 1. has the power to appoint a majority of the board of 17
126-directors of the nonprofit entity; 18
123+ 4. holds a majority of all ownership interests in the entity.] 18
127124
128- 2. holds a majority of all managing member interests in the 19
129-entity; 20
125+ (1) THE NONPROFIT ENTITY IS ESTABLISHED BY AN AUTHORITY 19
126+UNDER § 12–502(H) OF THIS TITLE; AND 20
130127
131- 3. holds a majority of the general partner interests in the 21
132-entity; or 22
128+ (2) THE AUTHORITY : 21
133129
134- 4. holds a majority of all ownership interests in the entity.] 23
130+ (I) HAS THE POWER TO AP POINT A MAJORITY OF THE BOARD OF 22
131+DIRECTORS OF THE NON PROFIT ENTITY; OR 23
135132
136- (1) THE NONPROFIT ENTITY IS ESTABLISHED BY AN AUTHORITY 24
137-UNDER § 12–502(H) OF THIS TITLE; AND 25
133+ (II) IS THE SOLE MEMBER O F THE NONPROFIT ENTI TY. 24
138134
139- (2) THE AUTHORITY : 26
140-
141- (I) HAS THE POWER TO APP OINT A MAJORITY OF T HE BOARD OF 27
142-DIRECTORS OF THE NON PROFIT ENTITY; OR 28
143-
144- (II) IS THE SOLE MEMBER O F THE NONPROFIT ENTI TY. 29 4 HOUSE BILL 1085
135+ (c) (1) In this subsection, “nonprofit housing corporation” means a nonprofit 25
136+or charitable private corporation that provides safe and sanitary housing to persons of 26
137+eligible income in such a way that the corporation works essentially like an authority under 27
138+this Division II. 28
139+ 4 HOUSE BILL 1085
145140
146141
142+ (2) Property is used for essential public and governmental purposes and is 1
143+exempt from all taxes and special assessments of the State or a political subdivision if the 2
144+property: 3
147145
148- (c) (1) In this subsection, “nonprofit housing corporation” means a nonprofit 1
149-or charitable private corporation that provides safe and sanitary housing to persons of 2
150-eligible income in such a way that the corporation works essentially like an authority under 3
151-this Division II. 4
146+ (i) belongs to an authority or a nonprofit housing corporation; [or 4
152147
153- (2) Property is used for essential public and governmental purposes and is 5
154-exempt from all taxes and special assessments of the State or a political subdivision if the 6
155-property: 7
148+ (ii) is used as housing for persons of eligible income and is owned in 5
149+whole or in part, directly or indirectly, through one or more wholly or partially owned 6
150+subsidiary entities of a Baltimore Housing Authority entity; or 7
156151
157- (i) belongs to an authority or a nonprofit housing corporation; [or 8
152+ (iii) 1. is used, or if under construction will be used, as housing 8
153+for persons of eligible income and is owned in whole or in part, directly or indirectly, 9
154+through one or more wholly or partially owned subsidiary entities of a Howard County 10
155+Housing Commission entity; 11
158156
159- (ii) is used as housing for persons of eligible income and is owned in 9
160-whole or in part, directly or indirectly, through one or more wholly or partially owned 10
161-subsidiary entities of a Baltimore Housing Authority entity; or 11
157+ 2. has improvements, or has improvements under 12
158+construction, located on land that is owned by: 13
162159
163- (iii) 1. is used, or if under construction will be used, as housing 12
164-for persons of eligible income and is owned in whole or in part, directly or indirectly, 13
165-through one or more wholly or partially owned subsidiary entities of a Howard County 14
166-Housing Commission entity; 15
160+ A. the Howard County Housing Commission; or 14
167161
168- 2. has improvements, or has improvements under 16
169-construction, located on land that is owned by: 17
162+ B. an entity that is controlled or wholly owned by the Howard 15
163+County Housing Commission; and 16
170164
171- A. the Howard County Housing Commission; or 18
165+ 3. has improvements, or has improvements under 17
166+construction, owned by an entity: 18
172167
173- B. an entity that is controlled or wholly owned by the Howard 19
174-County Housing Commission; and 20
168+ A. for which the Howard County Hous ing Commission 19
169+publicly solicited development partners pursuant to its procurement policies; or 20
175170
176- 3. has improvements, or has improvements under 21
177-construction, owned by an entity: 22
171+ B. that has a general partner or managing member that is 21
172+controlled or wholly owned by the Howard County Housing Commission; or 22
178173
179- A. for which the Howard County Housing Commission 23
180-publicly solicited development partners pursuant to its procurement policies; or 24
174+ (iv) is used as housing for persons of eligible income and is owned by 23
175+a Montgomery County Housing Authority entity.] 24
181176
182- B. that has a general partner or managing member that is 25
183-controlled or wholly owned by the Howard County Housing Commission; or 26
177+ (II) IS USED AS HOUSING F OR PERSONS OF ELIGIB LE INCOME 25
178+AND IS OWNED IN WHOL E OR IN PART, DIRECTLY OR INDIRECT LY, THROUGH ONE OR 26
179+MORE WHOLLY OR PARTI ALLY OWNE D SUBSIDIARY ENTITIE S OF A HOUSING 27
180+AUTHORITY ENTITY ; OR 28
184181
185- (iv) is used as housing for persons of eligible income and is owned by 27
186-a Montgomery County Housing Authority entity.] 28
187-
188- (II) IS USED AS HOUSING F OR PERSONS OF ELIGIB LE INCOME 29
189-AND IS OWNED IN WHOL E OR IN PART, DIRECTLY OR INDIRECT LY, THROUGH ONE OR 30
190-MORE WHOLLY OR PARTI ALLY OWNED SUBSIDIAR Y ENTITIES OF A HOUS ING 31
191-AUTHORITY ENTITY ; OR 32
182+ (III) 1. IS USED, OR IF UNDER CONSTRUC TION WILL BE USED , 29
183+AS HOUSING FOR PERSO NS OF ELIGIBLE INCOM E AND IS OWNED IN WH OLE OR IN 30
184+PART, DIRECTLY OR INDIRECT LY, THROUGH ONE OR MORE WHOLLY OR PARTIALLY 31
185+OWNED SUBSIDIARY ENT ITIES OF A HOUSING A UTHORITY ENTITY ; AND 32
192186 HOUSE BILL 1085 5
193187
194188
195- (III) 1. IS USED, OR IF PLANNED OR UNDER CONSTRUCTION 1
196-WILL BE USED, AS HOUSING FOR PERSO NS OF ELIGIBLE INCOM E AND IS OWNED IN 2
197-WHOLE OR IN PART , DIRECTLY OR INDIRECT LY, THROUGH ONE OR MORE WHOLLY 3
198-OR PARTIALLY OWNED S UBSIDIARY ENTITIES O F A HOUSING AUTH ORITY ENTITY; 4
199-AND 5
189+ 2. HAS IMPROVEMENTS , OR HAS IMPROVEMENTS UNDER 1
190+CONSTRUCTION , LOCATED ON LAND THAT IS OWNED BY: 2
200191
201- 2. HAS IMPROVEMENTS , OR HAS IMPROVEMENTS 6
202-PLANNED OR UNDER CONSTRUCTION , LOCATED ON LAND THAT IS OWNED BY: 7
192+ A. AN AUTHORITY ; OR 3
203193
204- A. AN AUTHORITY ; OR 8
194+ B. AN ENTITY THAT IS CO NTROLLED OR WHOLLY O WNED 4
195+BY AN AUTHORITY . 5
205196
206- B. AN ENTITY THAT IS CO NTROLLED OR WHOLLY O WNED 9
207-BY AN AUTHORITY . 10
197+ (3) In lieu of those taxes and special assessments, an authority, a nonprofit 6
198+housing corporation, [a Baltimore Housing Authority entity, a Howard County Housing 7
199+Commission entity, or a Montgomery County Housing Authority entity] OR A HOUSING 8
200+AUTHORITY ENTITY shall pay the political subdivision in which a housing project is wholly 9
201+or partly located an amount, if any, that may be set by mutual agreement and that does 10
202+not exceed the amount of regular taxes levied on similar property. 11
208203
209- (3) In lieu of those taxes and special assessments, an authority, a nonprofit 11
210-housing corporation, [a Baltimore Housing Authority entity, a Howard County Housing 12
211-Commission entity, or a Montgomery County Housing Authority entity] OR A HOUSING 13
212-AUTHORITY ENTITY shall pay the political subdivision in which a housing project is wholly 14
213-or partly located an amount, if any, that may be set by mutual agreement and that does 15
214-not exceed the amount of regular taxes levied on similar property. 16
204+ (d) (1) Except as provided in paragraph (2) or (3) of this subsection: 12
215205
216- (d) (1) Except as provided in paragraph (2) or (3) of this subsection: 17
206+ (i) all real property of an authority is exempt from levy and sale by 13
207+virtue of an execution; 14
217208
218- (i) all real property of an authority is exempt from levy and sale by 18
219-virtue of an execution; 19
209+ (ii) an execution or other judicial process may not issue against the 15
210+real property; and 16
220211
221- (ii) an execution or other judicial process may not issue against the 20
222-real property; and 21
212+ (iii) a judgment against an authority is not a charge or lien on the 17
213+authority’s real property. 18
223214
224- (iii) a judgment against an authority is not a charge or lien on the 22
225-authority’s real property. 23
215+ (2) Paragraph (1) of this subsection does not limit a right to foreclose or 19
216+otherwise enforce: 20
226217
227- (2) Paragraph (1) of this subsection does not limit a right to foreclose or 24
228-otherwise enforce: 25
218+ (i) a mortgage or deed of trust recorded against property of an 21
219+authority; or 22
229220
230- (i) a mortgage or deed of trust recorded against property of an 26
231-authority; or 27
221+ (ii) a pledge or lien given by an authority on its rents, fees, or 23
222+revenues. 24
232223
233- (ii) a pledge or lien given by an authority on its rents, fees, or 28
234-revenues. 29
224+ (3) This subsection does not deprive a political subdivision of its right to 25
225+collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may 26
226+be collected under State law and the laws of the political subdivision. 27
235227
236- (3) This subsection does not deprive a political subdivision of its right to 30
237-collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may 31
238-be collected under State law and the laws of the political subdivision. 32
239- 6 HOUSE BILL 1085
240-
241-
242- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1
243-1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 2
244-
245-
246-
247-
248-Approved:
249-________________________________________________________________________________
250- Governor.
251-________________________________________________________________________________
252- Speaker of the House of Delegates.
253-________________________________________________________________________________
254- President of the Senate.
228+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 28
229+1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 29