Maryland 2025 Regular Session

Maryland House Bill HB1128 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 *hb1128*
96
107 HOUSE BILL 1128
118 L6, Q2 5lr3354
129 CF 5lr3355
1310 By: Delegate Holmes
1411 Introduced and read first time: February 5, 2025
1512 Assigned to: Environment and Transportation
16-Committee Report: Favorable
17-House action: Adopted
18-Read second time: February 27, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Land Bank Authorities – Powers and Authority 2
2519
2620 FOR the purpose of authorizing certain land bank authorities to create a special fund for 3
2721 certain purposes, make loans or grants for certain purposes, and enter into 4
2822 partnerships for certain purposes; requiring a land bank authority to include in the 5
2923 sale, lease, transfer, or disposition of the land bank authority’s property a certain 6
3024 agreement; authorizing a land bank authority to reenter and take possession of 7
3125 certain property under certain circumstances; authorizing a county or municipal 8
3226 corporation to authorize, by law, a land bank authority to foreclose on certain 9
3327 property through a certain in rem foreclosure action; and generally relating to the 10
3428 powers and authority of land bank authorities. 11
3529
3630 BY repealing and reenacting, with amendments, 12
3731 Article – Local Government 13
3832 Section 1–1405(b)(18) and (19) and 1–1406(a)(4) and (5) 14
3933 Annotated Code of Maryland 15
4034 (2013 Volume and 2024 Supplement) 16
4135
4236 BY adding to 17
4337 Article – Local Government 18
4438 Section 1–1405(b)(19), (20), and (21) and 1–1406(a)(6) and (d) 19
4539 Annotated Code of Maryland 20
4640 (2013 Volume and 2024 Supplement) 21
4741
48-BY repealing and reenacting, with amendments, 22 2 HOUSE BILL 1128
42+BY repealing and reenacting, with amendments, 22
43+ Article – Tax – Property 23
44+Section 14–874, 14–875(a), (b), and (d), and 14–876(c) and (d)(1) 24
45+ Annotated Code of Maryland 25
46+ (2019 Replacement Volume and 2024 Supplement) 26
47+
48+BY repealing and reenacting, without amendments, 27 2 HOUSE BILL 1128
4949
5050
5151 Article – Tax – Property 1
52-Section 14–874, 14–875(a), (b), and (d), and 14–876(c) and (d)(1) 2
52+Section 14–875(c) 2
5353 Annotated Code of Maryland 3
5454 (2019 Replacement Volume and 2024 Supplement) 4
5555
56-BY repealing and reenacting, without amendments, 5
57- Article – Tax – Property 6
58-Section 14–875(c) 7
59- Annotated Code of Maryland 8
60- (2019 Replacement Volume and 2024 Supplement) 9
56+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
57+That the Laws of Maryland read as follows: 6
6158
62- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
63-That the Laws of Maryland read as follows: 11
59+Article – Local Government 7
6460
65-Article – Local Government 12
61+1–1405. 8
6662
67-1–1405. 13
63+ (b) An authority may: 9
6864
69- (b) An authority may: 14
65+ (18) raise revenue by any legal means required to make the operations and 10
66+activities of the authority self–sustaining; [and] 11
7067
71- (18) raise revenue by any legal means required to make the operations and 15
72-activities of the authority self–sustaining; [and] 16
68+ (19) CREATE A SPECIAL FUN D FOR THE PURPOSE OF PLEDGING THE 12
69+ASSETS OF THE AUTHOR ITY IN ORDER TO LEVE RAGE PRIVATE INVESTM ENT TO 13
70+ACCOMPL ISH THE PURPOSES OF THIS SUBTITLE; 14
7371
74- (19) CREATE A SPECIAL FUN D FOR THE PURPOSE OF PLEDG ING THE 17
75-ASSETS OF THE AUTHOR ITY IN ORDER TO LEVE RAGE PRIVATE INVESTM ENT TO 18
76-ACCOMPLISH THE PURPO SES OF THIS SUBTITLE ; 19
72+ (20) MAKE LOANS OR GRANTS , IN THE FORM REQUIRED BY THE 15
73+AUTHORITY, TO ASSIST WITH THE F INANCING OF PROJECTS TO ACCOMPLISH THE 16
74+PURPOSES OF THIS SUB TITLE; 17
7775
78- (20) MAKE LOANS OR GRANTS , IN THE FORM REQUIRED BY THE 20
79-AUTHORITY, TO ASSIST WITH THE F INANCING OF PROJECTS TO ACCOMPLISH THE 21
80-PURPOSES OF THIS SUB TITLE; 22
76+ (21) ENTER INTO PARTNERSH IPS WITH OTHER ENTIT IES TO 18
77+FACILITATE THE FINANCING OF PRO JECTS TO ACCOMPLISH THE PURPOSES OF THIS 19
78+SUBTITLE; AND 20
8179
82- (21) ENTER INTO PARTNERSH IPS WITH OTHER ENTIT IES TO 23
83-FACILITATE THE FINAN CING OF PROJECTS TO ACCOMPLISH THE PURPO SES OF THIS 24
84-SUBTITLE; AND 25
80+ [(19)] (22) do all things necessary or convenient to carry out the powers 21
81+expressly granted by this subtitle or by an ordinance adopted under this subtitle. 22
8582
86- [(19)] (22) do all things necessary or convenient to carry out the powers 26
87-expressly granted by this subtitle or by an ordinance adopted under this subtitle. 27
83+1–1406. 23
8884
89-1–1406. 28
85+ (a) An authority may: 24
9086
91- (a) An authority may: 29
87+ (4) procure insurance against loss in connection with the property, assets, 25
88+or activities of the authority; [and] 26
9289
93- (4) procure insurance against loss in connection with the property, assets, 30
94-or activities of the authority; [and] 31
95- HOUSE BILL 1128 3
90+ (5) execute deeds, mortgages, contracts, leases, purchases, or other 27
91+agreements regarding the property of the authority; AND 28
92+
93+ (6) IF AUTHORIZED UNDER §§ 14–873 THROUGH 14–876 OF THE TAX 29
94+– PROPERTY ARTICLE, FORECLOSE ON A PROPE RTY THROUGH AN IN REM 30
95+FORECLOSURE ACTION . 31 HOUSE BILL 1128 3
9696
9797
98- (5) execute deeds, mortgages, contracts, leases, purchases, or other 1
99-agreements regarding the property of the authority; AND 2
10098
101- (6) IF AUTHORIZED UNDER §§ 14–873 THROUGH 14–876 OF THE TAX 3
102-– PROPERTY ARTICLE, FORECLOSE ON A PROPE RTY THROUGH AN IN REM 4
103-FORECLOSURE ACTION . 5
99+ (D) (1) IF AN AUTHORITY SELLS , LEASES, TRANSFERS, OR DISPOSES OF 1
100+AN INTEREST IN THE AUTHORITY ’S PROPERTY, THE SALE, LEASE, TRANSFER, OR 2
101+DISPOSITION SHALL IN CLUDE AN AGREEMENT T HAT STATES THE TERMS 3
102+REGARDING: 4
104103
105- (D) (1) IF AN AUTHORITY SELLS , LEASES, TRANSFERS, OR DISPOSES OF 6
106-AN INTEREST IN THE AUTHORITY ’S PROPERTY, THE SALE, LEASE, TRANSFER, OR 7
107-DISPOSITION SHALL IN CLUDE AN AGREEMENT T HAT STATES THE TERMS 8
108-REGARDING: 9
104+ (I) PROPERTY MAINTENANCE ; 5
109105
110- (I) PROPERTY MAINTENANCE ; 10
106+ (II) PROPERTY OUTCOMES AN D USES; AND 6
111107
112- (II) PROPERTY OUTCOMES AND USES ; AND 11
108+ (III) ANY OTHER CONDITIONS OR PROVISIONS THE AU THORITY 7
109+CONSIDERS APPROPRIATE . 8
113110
114- (III) ANY OTHER CONDITIONS OR PROVISIONS THE AU THORITY 12
115-CONSIDERS APPROPRIATE . 13
111+ (2) THE AUTHORITY MAY REENTE R A PROPERTY AND TAK E ANY 9
112+ACTION NECESSARY TO TAKE POSSESSION OF A PROPERTY AND TERMINATE THE 10
113+INTEREST CONVEYED TO A PURCHASER IF THE PURCHASER : 11
116114
117- (2) THE AUTHORITY MAY REENTE R A PROPERTY AND TAK E ANY 14
118-ACTION NECESSARY TO TAKE POSSESSION OF A PROPERTY AND TERMINATE THE 15
119-INTEREST CONVEYED TO A PURCHASER IF THE PURCHASER : 16
115+ (I) BREACHES AN Y AGREEMENT UNDER PARA GRAPH (1) OF 12
116+THIS SUBSECTION AND HAS NOT COMPLETED ANY AGREED–ON IMPROVEMENTS TO 13
117+THE PROPERTY ; 14
120118
121- (I) BREACHES AN Y AGREEMENT UNDER PARA GRAPH (1) OF 17
122-THIS SUBSECTION AND HAS NOT COMPLETED AN Y AGREED–ON IMPROVEMENTS TO 18
123-THE PROPERTY ; 19
119+ (II) FAILS TO OBTAIN PERM ITS THAT THE PURCHAS ER AGREED 15
120+TO OBTAIN; 16
124121
125- (II) FAILS TO OBTAIN PERM ITS THAT THE PURCHAS ER AGREED 20
126-TO OBTAIN; 21
122+ (III) FAILS TO DILIGENTLY PURSUE CONSTRUCTION OR 17
123+REHABILITATION OF TH E PROPERTY; OR 18
127124
128- (III) FAILS TO DILIGENTLY PURSUE CO NSTRUCTION OR 22
129-REHABILITATION OF TH E PROPERTY; OR 23
125+ (IV) FAILS TO COMPLETE AN Y CONSTRUCTION ON OR 19
126+REHABILITATION OF TH E PROPERTY BY THE TIME THAT THE PURCHASER AGREED . 20
130127
131- (IV) FAILS TO COMPLETE AN Y CONSTRUCTION ON OR 24
132-REHABILITATION OF TH E PROPERTY BY THE TIME THAT THE PURCHASER AGREED . 25
128+Article – Tax – Property 21
133129
134-Article – Tax – Property 26
130+14–874. 22
135131
136-14–874. 27
132+ (a) Real property may be subject to foreclosure and sale under this part only if: 23
137133
138- (a) Real property may be subject to foreclosure and sale under this part only if: 28
139- 4 HOUSE BILL 1128
134+ (1) the property consists of a vacant lot or improved property cited as 24
135+vacant and unsafe or unfit for habitation or other authorized use on a housing or building 25
136+violation notice; and 26
137+
138+ (2) the total amount of liens for unpaid taxes on the property exceeds the 27
139+lesser of the total value of the property as last determined by the Department or as 28
140+determined by an appraisal report prepared not more than 6 months before the filing of a 29
141+complaint under this section by a real estate appraiser who is licensed under Title 16 of the 30
142+Business Occupations and Professions Article. 31 4 HOUSE BILL 1128
140143
141144
142- (1) the property consists of a vacant lot or improved property cited as 1
143-vacant and unsafe or unfit for habitation or other authorized use on a housing or building 2
144-violation notice; and 3
145145
146- (2) the total amount of liens for unpaid taxes on the property exceeds the 4
147-lesser of the total value of the property as last determined by the Department or as 5
148-determined by an appraisal report prepared not more than 6 months before the filing of a 6
149-complaint under this section by a real estate appraiser who is licensed under Title 16 of the 7
150-Business Occupations and Professions Article. 8
146+ (b) (1) A county or municipal corporation may authorize by law an in rem 1
147+foreclosure in accordance with this part. 2
151148
152- (b) (1) A county or municipal corporation may authorize by law an in rem 9
153-foreclosure in accordance with this part. 10
149+ (2) A LAW THAT AUTHORIZES AN IN REM FORECLOSUR E MAY 3
150+AUTHORIZE A LAND BAN K AUTHORITY ESTABLIS HED UNDER TITLE 1, SUBTITLE 14 4
151+OF THE LOCAL GOVERNMENT ARTICLE TO EXERCISE T HE POWERS AND DUTIES OF 5
152+THE COUNTY OR MUNICI PALITY UNDER THIS PA RT. 6
154153
155- (2) A LAW THAT A UTHORIZES AN IN REM FORECLOSURE MAY 11
156-AUTHORIZE A LAND BAN K AUTHORITY ESTABLIS HED UNDER TITLE 1, SUBTITLE 14 12
157-OF THE LOCAL GOVERNMENT ARTICLE TO EXERCISE T HE POWERS AND DUTIES OF 13
158-THE COUNTY OR MUNICI PALITY UNDER THIS PA RT. 14
154+ (3) A law that authorizes an in rem foreclosure shall: 7
159155
160- (3) A law that authorizes an in rem foreclosure shall: 15
156+ (i) state the date after which real property may be subject to in rem 8
157+foreclosure under this part; 9
161158
162- (i) state the date after which real property may be subject to in rem 16
163-foreclosure under this part; 17
159+ (ii) establish criteria for designating real property to be foreclosed 10
160+under this part; 11
164161
165- (ii) establish criteria for designating real property to be foreclosed 18
166-under this part; 19
162+ (iii) authorize the county [or], THE municipal corporation, OR A 12
163+LAND BANK AUTHORITY ESTABLISHED UNDER TITLE 1, SUBTITLE 14 OF THE LOCAL 13
164+GOVERNMENT ARTICLE to file a complaint for an in rem foreclosure under this part; and 14
167165
168- (iii) authorize the county [or], THE municipal corporation, OR A 20
169-LAND BANK AUTHORITY ESTABLISHED UNDER TITLE 1, SUBTITLE 14 OF THE LOCAL 21
170-GOVERNMENT ARTICLE to file a complaint for an in rem foreclosure under this part; and 22
166+ (iv) include administrative rules and procedures necessary to carry 15
167+out an in rem foreclosure under this part. 16
171168
172- (iv) include administrative rules and procedures necessary to carry 23
173-out an in rem foreclosure under this part. 24
169+ (c) (1) Subject to subsection (d) of this section, a county or municipal 17
170+corporation may authorize, by law, the sale of real property after an in rem foreclosure and 18
171+designate real property to be sold under this part. 19
174172
175- (c) (1) Subject to subsection (d) of this section, a county or municipal 25
176-corporation may authorize, by law, the sale of real property after an in rem foreclosure and 26
177-designate real property to be sold under this part. 27
173+ (2) A law that authorizes a sale of real property after an in rem foreclosure 20
174+shall: 21
178175
179- (2) A law that authorizes a sale of real property after an in rem foreclosure 28
180-shall: 29
176+ (i) state the date after which the real property may be subject to sale 22
177+after an in rem foreclosure under this part; 23
181178
182- (i) state the date after which the real property may be subject to sale 30
183-after an in rem foreclosure under this part; 31
179+ (ii) establish criteria for designating real property to be sold under 24
180+this part; and 25
184181
185- (ii) establish criteria for designating real property to be sold under 32
186-this part; and 33
182+ (iii) include administrative rules and procedures necessary to carry 26
183+out a sale under this part. 27
184+
185+ (d) Only real property that consists of a vacant lot or improved property cited as 28
186+vacant and unsafe or unfit for habitation or other authorized use on a housing or building 29
187+violation notice may be sold under this part. 30
188+
189+14–875. 31
187190 HOUSE BILL 1128 5
188191
189192
190- (iii) include administrative rules and procedures necessary to carry 1
191-out a sale under this part. 2
193+ (a) A county [or], municipal corporation, OR LAND BANK AUTHORI TY 1
194+AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may file a complaint for an 2
195+in rem foreclosure action in accordance with this part. 3
192196
193- (d) Only real property that consists of a vacant lot or improved property cited as 3
194-vacant and unsafe or unfit for habitation or other authorized use on a housing or building 4
195-violation notice may be sold under this part. 5
197+ (b) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 4
198+AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may not file a complaint for 5
199+an in rem foreclosure action unless: 6
196200
197-14–875. 6
201+ (1) the tax on the real property has been delinquent for at least 6 months; 7
202+and 8
198203
199- (a) A county [or], municipal corporation, OR LAND BANK AUTHORI TY 7
200-AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may file a complaint for an 8
201-in rem foreclosure action in accordance with this part. 9
204+ (2) the right to appeal the notice of the property as vacant and unsafe or 9
205+unfit has tolled. 10
202206
203- (b) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 10
204-AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may not file a complaint for 11
205-an in rem foreclosure action unless: 12
207+ (c) All taxes shall: 11
206208
207- (1) the tax on the real property has been delinquent for at least 6 months; 13
208-and 14
209+ (1) be included in the foreclosure action; and 12
209210
210- (2) the right to appeal the notice of the property as vacant and unsafe or 15
211-unfit has tolled. 16
211+ (2) cease to be a lien against the real property if a judgment is entered 13
212+foreclosing the existing interests of all interested parties in the real property. 14
212213
213- (c) All taxes shall: 17
214+ (d) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 15
215+AUTHORIZED BY THE CO UNTY OR MUNICIPAL CO RPORATION shall: 16
214216
215- (1) be included in the foreclosure action; and 18
217+ (1) file the complaint for an in rem foreclosure in the circuit court of the 17
218+county where the real property is located; and 18
216219
217- (2) cease to be a lien against the real property if a judgment is entered 19
218-foreclosing the existing interests of all interested parties in the real property. 20
220+ (2) within 5 days after filing the complaint, send notice and a copy of the 19
221+complaint to each interested party by first–class mail and certified mail, postage prepaid, 20
222+return receipt requested, bearing a postmark from the United States Postal Service. 21
219223
220- (d) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 21
221-AUTHORIZED BY THE CO UNTY OR MUNICIPAL CORPORATIO N shall: 22
224+14–876. 22
222225
223- (1) file the complaint for an in rem foreclosure in the circuit court of the 23
224-county where the real property is located; and 24
226+ (c) If the circuit court finds that the county [or], municipal corporation, OR LAND 23
227+BANK AUTHORITY AUTHO RIZED BY THE COUNTY OR MUNICIPAL CORPORA TION sent 24
228+notice and a copy of the complaint to each interested party in accordance with § 14–875(d) 25
229+of this subtitle and that the information set forth in the complaint is accurate, the court 26
230+shall: 27
225231
226- (2) within 5 days after filing the complaint, send notice and a copy of the 25
227-complaint to each interested party by first–class mail and certified mail, postage prepaid, 26
228-return receipt requested, bearing a postmark from the United States Postal Service. 27
232+ (1) enter a judgment that: 28
229233
230-14–876. 28
234+ (i) proper notice has been provided to all interested parties; and 29
231235
232- (c) If the circuit court finds that the county [or], municipal corporation, OR LAND 29
233-BANK AUTHORITY AUTHORIZED BY THE COUNTY OR MUN ICIPAL CORPORATION sent 30
234-notice and a copy of the complaint to each interested party in accordance with § 14–875(d) 31 6 HOUSE BILL 1128
235-
236-
237-of this subtitle and that the information set forth in the complaint is accurate, the court 1
238-shall: 2
239-
240- (1) enter a judgment that: 3
241-
242- (i) proper notice has been provided to all interested parties; and 4
243-
244- (ii) the real property is a vacant lot or an improved property cited as 5
245-vacant and unsafe or unfit for habitation or other authorized use on a housing or building 6
246-violation notice; and 7
247-
248- (2) order that ownership of the real property be transferred to the county 8
249-[or], municipal corporation, OR LAND BANK AUTHORI TY on behalf of which the complaint 9
250-was filed. 10
251-
252- (d) (1) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 11
253-AUTHORIZED BY THE CO UNTY OR MUNICIPAL CO RPORATION shall record a judgment 12
254-under subsection (c) of this section in the land records of the county. 13
255-
256- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
257-October 1, 2025. 15
236+ (ii) the real property is a vacant lot or an improved property cited as 30
237+vacant and unsafe or unfit for habitation or other authorized use on a housing or building 31
238+violation notice; and 32 6 HOUSE BILL 1128
258239
259240
260241
261-Approved:
262-________________________________________________________________________________
263- Governor.
264-________________________________________________________________________________
265- Speaker of the House of Delegates.
266-________________________________________________________________________________
267- President of the Senate.
242+ (2) order that ownership of the real property be transferred to the county 1
243+[or], municipal corporation, OR LAND BANK AUTHORI TY on behalf of which the complaint 2
244+was filed. 3
245+
246+ (d) (1) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 4
247+AUTHORIZED BY THE CO UNTY OR MUNICIPAL CO RPORATION shall record a judgment 5
248+under subsection (c) of this section in the land records of the county. 6
249+
250+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
251+October 1, 2025. 8