Land Use - Accessory Dwelling Units - Requirements and Prohibitions (Maryland Generational Housing Act of 2026)

HB 1538, the Maryland Generational Housing Act of 2026, requires Maryland counties and municipalities to adopt local laws by October 1, 2026, permitting at least one internal accessory dwelling unit (ADU, like a converted basement) and one external ADU (like a backyard cottage) on single-family residential properties. The bill directly affects homeowners, local governments, and utility providers by prohibiting localities from imposing off-street parking requirements on ADUs, banning utility fees for shared meters/services, and exempting ADUs from property taxes. Key provisions include removing ADUs from density calculations for zoning purposes and ensuring they meet basic safety standards without requiring additional parking. This law aims to increase housing options for multi-generational households while streamlining development for existing single-family lots.