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.
*hb0942*
HOUSE BILL 942
C8, C9 5lr2925
By: Delegate Schindler
Introduced and read first time: January 31, 2025
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 4, 2025
CHAPTER ______
AN ACT concerning 1
Economic Development – Tax Increment Financing – Noncontiguous Areas 2
FOR the purpose of authorizing the designation of certain noncontiguous areas as 3
development districts; authorizing the use of the Community Development 4
Administration in the Department of Housing and Community Development to issue 5
certain bonds; requiring the governing body of a political subdivision to limit certain 6
redevelopment within a development district that is a noncontiguous blighted area 7
for a certain purpose; and generally relating to tax increment financing for 8
noncontiguous areas. 9
BY renumbering 10
Article – Economic Development 11
Section 12–201(e) through (u) 12
to be Section 12–201(f) through (v), respectively 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Economic Development 17
Section 12–201(a) and 12–202(a) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Economic Development 22 2 HOUSE BILL 942
Section 12–201(e) and 12–203(d) 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Economic Development 5
Section 12–201(i) 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2024 Supplement) 8
(As enacted by Section 1 of this Act) 9
BY repealing and reenacting, with amendments, 10
Article – Economic Development 11
Section 12–202, 12–203(a)(1), and 12–204 12–203(a)(1) 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2024 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated 16
Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively. 17
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 18
as follows: 19
Article – Economic Development 20
12–201. 21
(a) In this subtitle the following words have the meanings indicated. 22
(E) “BLIGHTED AREA ” MEANS AN AREA IN WHI CH A MAJORITY OF 23
BUILDINGS HAVE DECLI NED IN PRODUCTIVITY BY REASON OF OBSOLES CENCE, 24
DEPRECIATION , OR OTHER CAUSES TO AN E XTENT THAT THEY NO L ONGER JUSTIFY 25
FUNDAMENTAL REPAIRS AND ADEQUATE MAINTEN ANCE. 26
(i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area 27
designated by a resolution. 28
(2) “Development district” includes an extraordinary development district. 29
12–202. 30
(a) (1) This subtitle is self–executing. 31
(2) A political subdivision need not amend its charter to exercise the 32
powers granted by this subtitle. 33
HOUSE BILL 942 3
(b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 1
SUBSECTION, THIS subtitle does not apply in Baltimore City. 2
(2) THE PROVISIONS OF §§ 12–203(A)(1) AND 12–204(G) OF THIS 3
SUBTITLE PERTAINING TO NONCONTIGUOUS BLI GHTED AREAS APPLY IN 4
BALTIMORE CITY. 5
12–203. 6
(a) Before issuing bonds, the governing body of the political subdivision shall: 7
(1) by resolution: 8
(i) designate a contiguous area within its jurisdiction as a 9
development district; 10
(ii) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, DESIGNATE 11
A NONCONTIGUOUS BLIG HTED AREA WITHIN ITS JURISDICTION AS A DEVELOPMENT 12
DISTRICT; 13
(III) identify an area that has been designated a sustainable 14
community; or 15
[(iii)] (IV) identify an area that has been designated a RISE zone; 16
(D) IF THE DEVELOPMENT DI STRICT IS A NONCONTI GUOUS BLIGHTED 17
AREA, THE GOVERNI NG BODY OF THE POLIT ICAL SUBDIVISION SHA LL LIMIT THE 18
REDEVELOPMENT OF NON CONTIGUOUS PARCELS W ITHIN THE DEVELOPMEN T 19
DISTRICT FOR AFFORDA BLE HOUSING THAT IS DEED RESTRICTED TO H OUSEHOLDS 20
WHOSE HOUSEHOLD INCO ME DOES NOT EXCEED 80% OF AREA MEDIAN INCOM E. 21
12–204. 22
(a) Notwithstanding any limitation of law, an issuer may issue bonds from time 23
to time to finance the development of an industrial, commercial, or residential area. 24
(b) To issue bonds under this subtitle, the governing body of a political subdivision 25
shall adopt an ordinance that: 26
(1) describes the proposed undertaking; and 27
(2) states: 28
(i) that the governing body has complied with §§ 12–203 and 29
12–208(c) and (d) of this subtitle; 30
4 HOUSE BILL 942
(ii) the maximum principal amount of the bonds; and 1
(iii) the maximum rate of interest on the bonds. 2
(c) The ordinance may specify the following for bonds issued to carry out the 3
financing of the proposed undertaking: 4
(1) the principal amount; 5
(2) the rate of interest; 6
(3) the manner and terms of sale; 7
(4) the time of execution, issuance, and delivery; 8
(5) the form and denomination; 9
(6) the manner in which, and the times and places at which principal and 10
interest shall be paid; 11
(7) conditions for redemption before maturity; or 12
(8) other provisions consistent with this subtitle that the governing body of 13
the political subdivision determines are necessary or desirable. 14
(d) The revenue authority of Prince George’s County may issue bonds in 15
accordance with an ordinance adopted by the governing body of Prince George’s County. 16
(e) The ordinance may specify the items listed in subsection (c) of this section or 17
may authorize: 18
(1) the finance board to specify those items by resolution or ordinance; or 19
(2) the chief executive to specify those items by executive order. 20
(f) (1) Except as provided in paragraph (2) of this subsection, neither an 21
ordinance authorizing the bonds nor an ordinance, resolution, or executive order issued, 22
passed, or adopted under this section may be subject to referendum because of any other 23
State or local law. 24
(2) An ordinance that authorizes the pledge of the full faith and credit of a 25
political subdivision to the payment of principal and interest on a bond is subject to any 26
applicable right to referendum. 27
(G) IF THE DEVELOPMENT DI STRICT IS A NONCONTI GUOUS BLIGHTED 28
AREA, THE GOVERNING BODY O F A POLITICAL SUBDIV ISION MAY UTILIZE TH E 29
COMMUNITY DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF 30 HOUSE BILL 942 5
HOUSING AND COMMUNITY DEVELOPMENT TO ISSUE BONDS AUTHORIZED B Y AN 1
ORDINANCE ADOPTED UN DER THIS SECTION . 2
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2025. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.