Affordable Housing Payment In Lieu of Taxes Expansion Act

SB 327, the Affordable Housing Payment In Lieu of Taxes Expansion Act, allows rental property owners in Maryland to pay a negotiated amount instead of county property taxes if they agree to maintain at least 50% of their rental units as affordable housing for 15 years. This applies to properties where "affordable" means units costing no more than 30% of a household’s income, defined as households earning 60% or less of the area median income (as updated by HUD). The bill modifies existing tax law to expand this payment-in-lieu-of-taxes option, replacing previous requirements with the new 50% affordability threshold and 15-year term. It directly affects rental property owners and county governments, creating a formal process for these agreements.