Housing (Property Taxes)

SB 267, the "Building Affordably in My Back Yard Act," aims to increase residential housing development by changing oversight, regulation, and tax policies. It requires property owners to certify contact information to the housing department, empowers local governments to streamline approvals for housing projects, and sets housing production targets. The bill allows counties to reduce certain taxes or fees for affordable housing projects while increasing them for non-affordable developments, and permits local tax adjustments for different property types. These changes directly affect property owners, local governments, and housing developers across Maryland.

SB 369 exempts certain real property owned by nonprofit housing corporations (or their subsidiaries) that provides housing for low-income residents from state and local taxes and special assessments. It also protects this housing property from being seized through court judgments or enforcement actions, while allowing nonprofits to pay a mutually agreed fee instead of taxes. The bill applies to organizations meeting specific criteria: incorporated in Maryland, recognized as 501(c)(3) nonprofits, and operating primarily for affordable housing. Key changes include clarifying which properties qualify for exemptions and reinforcing that judgments against these nonprofits cannot create liens on their housing properties. The law takes effect July 1, 2026.

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.