Maryland 2025 Regular Session

Maryland Senate Bill SB238 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 *sb0238*
96
107 SENATE BILL 238
118 C9 5lr0153
129 (PRE–FILED) CF HB 127
1310 By: Chair, Education, Energy, and the Environment Committee (By Request –
1411 Departmental – Housing and Community Development)
1512 Requested: October 6, 2024
1613 Introduced and read first time: January 8, 2025
1714 Assigned to: Education, Energy, and the Environment
18-Committee Report: Favorable
19-Senate action: Adopted
20-Read second time: January 24, 2025
2115
22-CHAPTER ______
16+A BILL ENTITLED
2317
2418 AN ACT concerning 1
2519
2620 Department of Housing and Community Development – Maryland Housing 2
2721 Rehabilitation Program – Local Rehabilitation Program Administration 3
2822
2923 FOR the purpose of expanding the entities eligible to administer local rehabilitation 4
3024 programs to include certain nonprofit sponsors; and generally relating to the 5
3125 administration of the Maryland Housing Rehabilitation Program. 6
3226
3327 BY repealing and reenacting, without amendments, 7
3428 Article – Housing and Community Development 8
3529 Section 4–901(a), (h), and (i) 9
3630 Annotated Code of Maryland 10
3731 (2019 Replacement Volume and 2024 Supplement) 11
3832
3933 BY repealing and reenacting, with amendments, 12
4034 Article – Housing and Community Development 13
4135 Section 4–901(e), 4–911, and 4–914 14
4236 Annotated Code of Maryland 15
4337 (2019 Replacement Volume and 2024 Supplement) 16
4438
4539 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
4640 That the Laws of Maryland read as follows: 18
4741
48-Article – Housing and Community Development 19 2 SENATE BILL 238
42+Article – Housing and Community Development 19
43+
44+4–901. 20
45+
46+ (a) In this subtitle the following words have the meanings indicated. 21
47+ 2 SENATE BILL 238
4948
5049
50+ (e) “Local rehabilitation program” means a rehabilitation program that uses 1
51+Program loans and is administered by a political subdivision OR A NONPROFIT SPONS OR. 2
5152
52-4–901. 1
53+ (h) “Nonprofit sponsor” means: 3
5354
54- (a) In this subtitle the following words have the meanings indicated. 2
55+ (1) a nonprofit organization; 4
5556
56- (e) “Local rehabilitation program” means a rehabilitation program that uses 3
57-Program loans and is administered by a political subdivision OR A NONPROFIT SPONS OR. 4
57+ (2) a political subdivision; or 5
5858
59- (h) “Nonprofit sponsor” means: 5
59+ (3) a limited partnership formed to undertake a rehabilitation project that 6
60+is eligible wholly or partly for federal programs or incentives, if: 7
6061
61- (1) a nonprofit organization; 6
62+ (i) each general partner is a nonprofit organization or a political 8
63+subdivision; or 9
6264
63- (2) a political subdivision; or 7
65+ (ii) 1. each general partner is a wholly owned subsidiary of a 10
66+nonprofit organization or political subdivision; and 11
6467
65- (3) a limited partnership formed to undertake a rehabilitation project that 8
66-is eligible wholly or partly for federal programs or incentives, if: 9
68+ 2. a nonprofit organization or political subdivision manages 12
69+the rehabilitation project or will receive net cash flow or the residual sale proceeds on the 13
70+sale of the rehabilitation project. 14
6771
68- (i) each general partner is a nonprofit organization or a political 10
69-subdivision; or 11
72+ (i) “Program” means the Maryland Housing Rehabilitation Program. 15
7073
71- (ii) 1. each general partner is a wholly owned subsidiary of a 12
72-nonprofit organization or political subdivision; and 13
74+4–911. 16
7375
74- 2. a nonprofit organization or political subdivision manages 14
75-the rehabilitation project or will receive net cash flow or the residual sale proceeds on the 15
76-sale of the rehabilitation project. 16
76+ (a) To ensure that all areas of the State are served, the Department shall allocate 17
77+at least annually among the counties the money appropriated for making Program loans 18
78+under the Regular Rehabilitation Program. 19
7779
78- (i) “Program” means the Maryland Housing Rehabilitation Program. 17
80+ (b) When allocating money to a county, the Department shall consider: 20
7981
80-4–911. 18
82+ (1) the number of families of limited income in the county; 21
8183
82- (a) To ensure that all areas of the State are served, the Department shall allocate 19
83-at least annually among the counties the money appropriated for making Program loans 20
84-under the Regular Rehabilitation Program. 21
84+ (2) the need to rehabilitate buildings in the county; 22
8585
86- (b) When allocating money to a county, the Department shall consider: 22
86+ (3) the capability of the county to administer a local rehabilitation 23
87+program; and 24
8788
88- (1) the number of families of limited income in the county; 23
89+ (4) other standards that the Department considers relevant to ensure fair 25
90+and equitable distribution of money among counties. 26
8991
90- (2) the need to rehabilitate buildings in the county; 24
92+ (c) The Department may: 27
9193
92- (3) the capability of the county to administer a local rehabilitation 25
93-program; and 26
94-
95- (4) other standards that the Department considers relevant to ensure fair 27
96-and equitable distribution of money among counties. 28
94+ (1) allocate on a countywide basis first and then make suballocations 28
95+among participating municipal corporations AND NONPROFIT SPONSO RS within counties; 29
9796 SENATE BILL 238 3
9897
9998
100- (c) The Department may: 1
99+ (2) allocate up to 25% of the total money available in the Special Loan 1
100+Programs Fund to a reserve; and 2
101101
102- (1) allocate on a countywide basis first and then make suballocations 2
103-among participating municipal corporations AND NONPROFIT SPONSO RS within counties; 3
102+ (3) from time to time, reallocate the money held in the reserve. 3
104103
105- (2) allocate up to 25% of the total money available in the Special Loan 4
106-Programs Fund to a reserve; and 5
104+4–914. 4
107105
108- (3) from time to time, reallocate the money held in the reserve. 6
106+ (a) If the Department certifies a political subdivision OR NONPROFIT SPONSOR 5
107+as capable of administering a local rehabilitation program, the political subdivision OR 6
108+NONPROFIT SPONSOR may originate and administer Program loans under regulations of 7
109+the Department. 8
109110
110-4–914. 7
111+ (b) (1) By regulation, the Department shall establish standards for 9
112+determining the capability of a political subdivision OR NONPROFIT SPONSOR to 10
113+administer a local rehabilitation program. 11
111114
112- (a) If the Department certifies a political subdivision OR NONPROFIT SPONSOR 8
113-as capable of administering a local rehabilitation program, the political subdivision OR 9
114-NONPROFIT SPONSOR may originate and administer Program loans under regulations of 10
115-the Department. 11
115+ (2) The standards shall include provisions on: 12
116116
117- (b) (1) By regulation, the Department shall establish standards for 12
118-determining the capability of a political subdivision OR NONPRO FIT SPONSOR to 13
119-administer a local rehabilitation program. 14
117+ (i) the size, training, and experience of the professional staff that 13
118+would administer the Program; and 14
120119
121- (2) The standards shall include provisions on: 15
120+ (ii) the capability of the professional staff to: 15
122121
123- (i) the size, training, and experience of the professional staff that 16
124-would administer the Program; and 17
122+ 1. determine rehabilitation needs; 16
125123
126- (ii) the capability of the professional staff to: 18
124+ 2. establish rehabilitation programs; 17
127125
128- 1. determine rehabilitation needs; 19
126+ 3. evaluate applications for Program loans; and 18
129127
130- 2. establish rehabilitation programs; 20
128+ 4. monitor Program loans and the rehabilitation work done 19
129+with them. 20
131130
132- 3. evaluate applications for Program loans; and 21
131+ (c) If the Department determines that a political subdivision OR NONPROFIT 21
132+SPONSOR cannot or does not want to administer a local rehabilitation program, the 22
133+Department may originate and administer Program loans from the allocation or 23
134+suballocation to that political subdivision. 24
133135
134- 4. monitor Program loans and the rehabilitation work done 22
135-with them. 23
136+ (d) The Department may: 25
136137
137- (c) If the Department determines that a political subdivision OR NONPROFIT 24
138-SPONSOR cannot or does not want to administer a local rehabilitation program, the 25
139-Department may originate and administer Program loans from the allocation or 26
140-suballocation to that political subdivision. 27
138+ (1) help train employees of political subdivisions AND NONPROFIT 26
139+SPONSORS to administer local rehabilitation programs under the standards that the 27
140+Department sets; and 28
141141
142- (d) The Department may: 28
143- 4 SENATE BILL 238
142+ (2) provide political subdivisions AND NONPROFIT SPONSO RS advice and 29
143+technical assistance on the administration of their local rehabilitation programs, including 30 4 SENATE BILL 238
144144
145145
146- (1) help train employees of political subdivisions AND NONPROFIT 1
147-SPONSORS to administer local rehabilitation programs under the standards that the 2
148-Department sets; and 3
146+loan packaging, contractor and bid selection, zoning, marketing, engineering, and related 1
147+services. 2
149148
150- (2) provide political subdivisions AND NONPROFIT SPONS ORS advice and 4
151-technical assistance on the administration of their local rehabilitation programs, including 5
152-loan packaging, contractor and bid selection, zoning, marketing, engineering, and related 6
153-services. 7
149+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
150+1, 2025. 4
154151
155- SECTION 2. AND BE IT FURTHER ENACTED, That thi s Act shall take effect July 8
156-1, 2025. 9
157-
158-
159-
160-
161-Approved:
162-________________________________________________________________________________
163- Governor.
164-________________________________________________________________________________
165- President of the Senate.
166-________________________________________________________________________________
167- Speaker of the House of Delegates.