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.
*hb1128*
HOUSE BILL 1128
L6, Q2 5lr3354
CF 5lr3355
By: Delegate Holmes
Introduced and read first time: February 5, 2025
Assigned to: Environment and Transportation
Committee Report: Favorable
House action: Adopted
Read second time: February 27, 2025
CHAPTER ______
AN ACT concerning 1
Land Bank Authorities – Powers and Authority 2
FOR the purpose of authorizing certain land bank authorities to create a special fund for 3
certain purposes, make loans or grants for certain purposes, and enter into 4
partnerships for certain purposes; requiring a land bank authority to include in the 5
sale, lease, transfer, or disposition of the land bank authority’s property a certain 6
agreement; authorizing a land bank authority to reenter and take possession of 7
certain property under certain circumstances; authorizing a county or municipal 8
corporation to authorize, by law, a land bank authority to foreclose on certain 9
property through a certain in rem foreclosure action; and generally relating to the 10
powers and authority of land bank authorities. 11
BY repealing and reenacting, with amendments, 12
Article – Local Government 13
Section 1–1405(b)(18) and (19) and 1–1406(a)(4) and (5) 14
Annotated Code of Maryland 15
(2013 Volume and 2024 Supplement) 16
BY adding to 17
Article – Local Government 18
Section 1–1405(b)(19), (20), and (21) and 1–1406(a)(6) and (d) 19
Annotated Code of Maryland 20
(2013 Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22 2 HOUSE BILL 1128
Article – Tax – Property 1
Section 14–874, 14–875(a), (b), and (d), and 14–876(c) and (d)(1) 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Tax – Property 6
Section 14–875(c) 7
Annotated Code of Maryland 8
(2019 Replacement Volume and 2024 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Local Government 12
1–1405. 13
(b) An authority may: 14
(18) raise revenue by any legal means required to make the operations and 15
activities of the authority self–sustaining; [and] 16
(19) CREATE A SPECIAL FUN D FOR THE PURPOSE OF PLEDG ING THE 17
ASSETS OF THE AUTHOR ITY IN ORDER TO LEVE RAGE PRIVATE INVESTM ENT TO 18
ACCOMPLISH THE PURPO SES OF THIS SUBTITLE ; 19
(20) MAKE LOANS OR GRANTS , IN THE FORM REQUIRED BY THE 20
AUTHORITY, TO ASSIST WITH THE F INANCING OF PROJECTS TO ACCOMPLISH THE 21
PURPOSES OF THIS SUB TITLE; 22
(21) ENTER INTO PARTNERSH IPS WITH OTHER ENTIT IES TO 23
FACILITATE THE FINAN CING OF PROJECTS TO ACCOMPLISH THE PURPO SES OF THIS 24
SUBTITLE; AND 25
[(19)] (22) do all things necessary or convenient to carry out the powers 26
expressly granted by this subtitle or by an ordinance adopted under this subtitle. 27
1–1406. 28
(a) An authority may: 29
(4) procure insurance against loss in connection with the property, assets, 30
or activities of the authority; [and] 31
HOUSE BILL 1128 3
(5) execute deeds, mortgages, contracts, leases, purchases, or other 1
agreements regarding the property of the authority; AND 2
(6) IF AUTHORIZED UNDER §§ 14–873 THROUGH 14–876 OF THE TAX 3
– PROPERTY ARTICLE, FORECLOSE ON A PROPE RTY THROUGH AN IN REM 4
FORECLOSURE ACTION . 5
(D) (1) IF AN AUTHORITY SELLS , LEASES, TRANSFERS, OR DISPOSES OF 6
AN INTEREST IN THE AUTHORITY ’S PROPERTY, THE SALE, LEASE, TRANSFER, OR 7
DISPOSITION SHALL IN CLUDE AN AGREEMENT T HAT STATES THE TERMS 8
REGARDING: 9
(I) PROPERTY MAINTENANCE ; 10
(II) PROPERTY OUTCOMES AND USES ; AND 11
(III) ANY OTHER CONDITIONS OR PROVISIONS THE AU THORITY 12
CONSIDERS APPROPRIATE . 13
(2) THE AUTHORITY MAY REENTE R A PROPERTY AND TAK E ANY 14
ACTION NECESSARY TO TAKE POSSESSION OF A PROPERTY AND TERMINATE THE 15
INTEREST CONVEYED TO A PURCHASER IF THE PURCHASER : 16
(I) BREACHES AN Y AGREEMENT UNDER PARA GRAPH (1) OF 17
THIS SUBSECTION AND HAS NOT COMPLETED AN Y AGREED–ON IMPROVEMENTS TO 18
THE PROPERTY ; 19
(II) FAILS TO OBTAIN PERM ITS THAT THE PURCHAS ER AGREED 20
TO OBTAIN; 21
(III) FAILS TO DILIGENTLY PURSUE CO NSTRUCTION OR 22
REHABILITATION OF TH E PROPERTY; OR 23
(IV) FAILS TO COMPLETE AN Y CONSTRUCTION ON OR 24
REHABILITATION OF TH E PROPERTY BY THE TIME THAT THE PURCHASER AGREED . 25
Article – Tax – Property 26
14–874. 27
(a) Real property may be subject to foreclosure and sale under this part only if: 28
4 HOUSE BILL 1128
(1) the property consists of a vacant lot or improved property cited as 1
vacant and unsafe or unfit for habitation or other authorized use on a housing or building 2
violation notice; and 3
(2) the total amount of liens for unpaid taxes on the property exceeds the 4
lesser of the total value of the property as last determined by the Department or as 5
determined by an appraisal report prepared not more than 6 months before the filing of a 6
complaint under this section by a real estate appraiser who is licensed under Title 16 of the 7
Business Occupations and Professions Article. 8
(b) (1) A county or municipal corporation may authorize by law an in rem 9
foreclosure in accordance with this part. 10
(2) A LAW THAT A UTHORIZES AN IN REM FORECLOSURE MAY 11
AUTHORIZE A LAND BAN K AUTHORITY ESTABLIS HED UNDER TITLE 1, SUBTITLE 14 12
OF THE LOCAL GOVERNMENT ARTICLE TO EXERCISE T HE POWERS AND DUTIES OF 13
THE COUNTY OR MUNICI PALITY UNDER THIS PA RT. 14
(3) A law that authorizes an in rem foreclosure shall: 15
(i) state the date after which real property may be subject to in rem 16
foreclosure under this part; 17
(ii) establish criteria for designating real property to be foreclosed 18
under this part; 19
(iii) authorize the county [or], THE municipal corporation, OR A 20
LAND BANK AUTHORITY ESTABLISHED UNDER TITLE 1, SUBTITLE 14 OF THE LOCAL 21
GOVERNMENT ARTICLE to file a complaint for an in rem foreclosure under this part; and 22
(iv) include administrative rules and procedures necessary to carry 23
out an in rem foreclosure under this part. 24
(c) (1) Subject to subsection (d) of this section, a county or municipal 25
corporation may authorize, by law, the sale of real property after an in rem foreclosure and 26
designate real property to be sold under this part. 27
(2) A law that authorizes a sale of real property after an in rem foreclosure 28
shall: 29
(i) state the date after which the real property may be subject to sale 30
after an in rem foreclosure under this part; 31
(ii) establish criteria for designating real property to be sold under 32
this part; and 33
HOUSE BILL 1128 5
(iii) include administrative rules and procedures necessary to carry 1
out a sale under this part. 2
(d) Only real property that consists of a vacant lot or improved property cited as 3
vacant and unsafe or unfit for habitation or other authorized use on a housing or building 4
violation notice may be sold under this part. 5
14–875. 6
(a) A county [or], municipal corporation, OR LAND BANK AUTHORI TY 7
AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may file a complaint for an 8
in rem foreclosure action in accordance with this part. 9
(b) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 10
AUTHORIZED BY A COUN TY OR MUNICIPAL CORP ORATION may not file a complaint for 11
an in rem foreclosure action unless: 12
(1) the tax on the real property has been delinquent for at least 6 months; 13
and 14
(2) the right to appeal the notice of the property as vacant and unsafe or 15
unfit has tolled. 16
(c) All taxes shall: 17
(1) be included in the foreclosure action; and 18
(2) cease to be a lien against the real property if a judgment is entered 19
foreclosing the existing interests of all interested parties in the real property. 20
(d) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 21
AUTHORIZED BY THE CO UNTY OR MUNICIPAL CORPORATIO N shall: 22
(1) file the complaint for an in rem foreclosure in the circuit court of the 23
county where the real property is located; and 24
(2) within 5 days after filing the complaint, send notice and a copy of the 25
complaint to each interested party by first–class mail and certified mail, postage prepaid, 26
return receipt requested, bearing a postmark from the United States Postal Service. 27
14–876. 28
(c) If the circuit court finds that the county [or], municipal corporation, OR LAND 29
BANK AUTHORITY AUTHORIZED BY THE COUNTY OR MUN ICIPAL CORPORATION sent 30
notice and a copy of the complaint to each interested party in accordance with § 14–875(d) 31 6 HOUSE BILL 1128
of this subtitle and that the information set forth in the complaint is accurate, the court 1
shall: 2
(1) enter a judgment that: 3
(i) proper notice has been provided to all interested parties; and 4
(ii) the real property is a vacant lot or an improved property cited as 5
vacant and unsafe or unfit for habitation or other authorized use on a housing or building 6
violation notice; and 7
(2) order that ownership of the real property be transferred to the county 8
[or], municipal corporation, OR LAND BANK AUTHORI TY on behalf of which the complaint 9
was filed. 10
(d) (1) The county [or], municipal corporation, OR LAND BANK AUTHORI TY 11
AUTHORIZED BY THE CO UNTY OR MUNICIPAL CO RPORATION shall record a judgment 12
under subsection (c) of this section in the land records of the county. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2025. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.