Housing (Property Taxes)

HB 571 expands tax exemptions and judgment protections for nonprofit housing corporations in Maryland. It exempts real property used for housing eligible income residents (owned directly or through subsidiaries) from state and local taxes/special assessments, and prohibits court seizures of such property for unpaid debts. The bill defines "nonprofit housing corporation" as entities meeting specific IRS 501(c)(3) and housing purpose criteria, clarifying that subsidiary-owned properties qualify for these benefits. It directly affects nonprofit housing organizations providing affordable housing, ensuring their properties used for eligible residents remain tax-exempt and shielded from enforcement actions. The changes take effect July 1, 2026.

SB 353 delays residential foreclosure actions by requiring lenders to wait 90 days after a loan default or 45 days after sending a foreclosure notice before filing a lawsuit. It applies to single-family homes occupied by owners as their primary residence. Exceptions allow immediate foreclosure for fraud, no payments ever made, destroyed property, bankruptcy cases, or vacant abandoned properties. Lenders must now include loss mitigation affidavits and specific documentation with foreclosure filings.