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WES MOORE, Governor Ch. 678
Chapter 678
(House Bill 168)
AN ACT concerning
Housing and Community Development – Affordable Housing – Educator
Workforce Housing and Municipal Corporations
FOR the purpose of authorizing a county board of education to consider the provision of
educator workforce housing as a school purpose under certain provisions of law;
establishing that providing educator workforce housing is an eligible use of certain
financial assistance provided by the Department of Housing and Community
Development; establishing that teachers and other employees of a local school
system shall be considered a specified group for purposes of the federal
Low–Income Housing Tax Credit program; altering the eligible recipients of certain
financial assistance altering the eligible recipients of certain financial assistance and
the housing innovation projects the Department of Housing and Community
Development shall prioritize for certain financial assistance under the Housing
Innovation Pilot Program; altering the projects qualifying as eligible to provide
services to a priority funding area under the Neighborhood and Community
Assistance Program; and generally relating to affordable housing.
BY repealing and reenacting, with amendments,
Article – Education
Section 4–115
Annotated Code of Maryland
(2025 Replacement Volume and 2025 Supplement)
BY adding to
Article – Housing and Community Development
Section 1–103
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 1–101, 4–512, 4–3001 through 4–3004, and 6–405
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Education
4–115.
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Ch. 678 2026 LAWS OF MARYLAND
(a) (1) In this subtitle[, “county] THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.
(2) “COUNTY council” means, in Baltimore City, the Mayor and City
Council of Baltimore.
(3) “SCHOOL PURPOSES” INCLUDES PROVIDING EDUCATOR
WORKFORCE HOUSING IN ACCORDANCE WITH § 1–103, AS DEFINED IN § 1–101 OF
THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE.
(2) FOR PURPOSES OF THIS SUBTITLE, A COUNTY BOARD MAY
CONSIDER THE PROVISION OF EDUCATOR WORKFORCE HOUSING, AS DEFINED IN §
1–101 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE, AS A SCHOOL
PURPOSE.
(b) With the approval of the State Superintendent, or the State Superintendent’s
designee, each county board may:
(1) Buy or otherwise acquire land, school sites, or buildings; and
(2) Rent, repair, improve, and build school buildings or approve contracts
for doing so, if the plans conform to the bylaws, rules, and regulations of the State Board.
(c) (1) (i) Except as provided in this subsection, if, with the approval of the
State Superintendent, or the State Superintendent’s designee, a county board finds that
any land, school site, or building no longer is needed for school purposes, it shall inform the
county commissioners or county council of the county board’s determination under this
subparagraph.
(ii) When the county commissioners or county council receives notice
under subparagraph (i) of this paragraph, the county commissioners or county council shall
notify the county board within 30 days after receiving the notice from the county board:
1. Of the need to transfer the land, school site, or building to
the county commissioners or county council if the land, school site, or building is an integral
component of an existing economic development plan that will, in the judgment of the
county commissioners or county council, significantly benefit the county; or
2. That the county commissioners or county council has no
existing plans for the use of the land, school site, or building.
(iii) 1. If the county commissioners or county council provides the
required notice to the county board under subparagraph (ii)1 of this paragraph or a public
charter school does not need the school site or building under § 9–111 of this article, the
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WES MOORE, Governor Ch. 678
land, school site, or building shall be transferred by the county board to the county
commissioners or county council and may be used, sold, leased, or otherwise disposed of,
except by gift, by the county commissioners or county council.
2. If the county commissioners or county council provides the
required notice to the county board under subparagraph (ii)2 of this paragraph, the county
board shall comply with the provisions of § 9–111 of this article.
(2) In Harford County, if, with the approval of the State Superintendent,
or the State Superintendent’s designee, the county board finds that any land, school site,
or building is no longer needed for school purposes, it shall be transferred by the county
board to Harford County, Maryland, and disposed of in accordance with this section.
(3) With the approval of the State Superintendent, or the State
Superintendent’s designee, the Cecil County Board may transfer, with or without charge,
any of its property to the board of trustees of a public community college.
(d) In Baltimore County, the Baltimore County Board of Education must notify
the Baltimore County Office of Planning and Zoning of any schools it is considering for
closure and request from that Office a written recommendation on the proposed action. If
the Office of Planning and Zoning wishes to make a recommendation, it must be submitted
to the board no later than November 1 of the calendar year preceding the proposed closure.
The board of education shall consider these recommendations at least 3 months before
taking final action. These provisions may be waived by mutual agreement.
(e) (1) In Baltimore City, the Board of School Commissioners shall notify the
Baltimore City Department of Planning of any school buildings the board is considering for
closure simultaneously as the board releases its school building closure list in accordance
with COMAR 13A.02.09, and request from that department a written recommendation on
the proposed action and the relative merit for Baltimore City.
(2) A recommendation by the Baltimore City Department of Planning shall
be submitted to the board no later than 30 days after notification by the board.
(3) The board shall consider these recommendations before taking final
action.
(4) The requirements of this subsection may be waived by mutual
agreement between the board and the Baltimore City Department of Planning.
Article – Housing and Community Development
1–101.
(a) In this Division I of this article the following words have the meanings
indicated.
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Ch. 678 2026 LAWS OF MARYLAND
(b) (1) “Community assistance” means activities designed to enhance the
physical, social, or economic environment of a community to improve the health, safety, or
socio–economic welfare of its citizens.
(2) “Community assistance” includes the promotion of activities specified
in paragraph (1) of this subsection through the concentration and coordination in
communities in the State of federal, State, regional, and local public and private resources.
(c) “County” means a county of the State or Baltimore City.
(d) “Department” means the Department of Housing and Community
Development.
(e) “EDUCATOR WORKFORCE HOUSING” MEANS ANY HOUSING THAT IS:
(1) RENTED OR SOLD AS AFFORDABLE, LOW– OR MODERATE–INCOME
HOUSING; AND
(2) RESERVED FOR TEACHERS OR OTHER EMPLOYEES OF A LOCAL
SCHOOL SYSTEM WHO ARE NOT ADMINISTRATORS RESPONSIBLE FOR THE
STRATEGIC DIRECTION AND DAILY OPERATIONS OF THE LOCAL SCHOOL SYSTEM OR
A PUBLIC SCHOOL.
(F) (1) “Financial assistance” means any form of assurance, guarantee, grant,
payment, or other assistance.
(2) “Financial assistance” includes a loan, loan guarantee, or reduction in
the principal obligations of or rate of interest payable on a loan or portion of a loan.
[(f)] (G) “Governmental unit” means an agency, authority, board, commission,
council, office, or other unit or instrumentality of the government of the State or of a
political subdivision of the State.
[(g)] (H) “Nonprofit organization” means a corporation, foundation, or other
legal entity, no part of the net earnings of which inures to the benefit of a private
shareholder or individual holding an interest in the entity.
[(h)] (I) “Person” means an individual, receiver, trustee, guardian, personal
representative, fiduciary, representative of any kind, partnership, firm, association,
corporation, or other entity.
[(i)] (J) “Political subdivision” means a county or municipal corporation of the
State.
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WES MOORE, Governor Ch. 678
[(j)] (K) “Secretary” means the Secretary of Housing and Community
Development.
[(k)] (L) “Veteran” has the meaning stated in § 9–901 of the State Government
Article.
1–103.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “AFFORDABLE HOUSING” MEANS RESIDENTIAL PROPERTY THAT
IS RENTED OR SOLD TO THE PUBLIC AS LOW– OR MODERATE–INCOME HOUSING OR
WORKFORCE HOUSING.
(3) “EDUCATOR WORKFORCE HOUSING” MEANS AFFORDABLE
HOUSING THAT IS RESERVED FOR TEACHERS OR OTHER EMPLOYEES OF A LOCAL
SCHOOL SYSTEM.
(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION
APPLIES TO ANY PROGRAM OPERATED BY THE DEPARTMENT THAT AWARDS LOANS,
GRANTS, TAX CREDITS, OR OTHER FINANCIAL SUPPORT THAT MAY BE USED TO
DEVELOP AFFORDABLE HOUSING.
(2) IF THE LAWS OR REGULATIONS GOVERNING A PARTICULAR
PROGRAM ESTABLISH MORE SPECIFIC RULES REGARDING THE USE OF LOAN
PROCEEDS, GRANTS, TAX CREDITS, OR OTHER FINANCIAL SUPPORT FOR EDUCATOR
WORKFORCE HOUSING, THE MORE SPECIFIC RULES APPLY.
(C) (1) PROVIDING EDUCATOR WORKFORCE HOUSING, INCLUDING ON
LAND, SCHOOL SITES, OR BUILDINGS BOUGHT OR OTHERWISE ACQUIRED BY A
COUNTY BOARD OF EDUCATION AND USED TO DEVELOP AFFORDABLE HOUSING, IS
AN ELIGIBLE USE OF THE PROCEEDS OF A LOAN, GRANT, TAX CREDIT, OR OTHER
FINANCIAL SUPPORT COVERED UNDER THIS SECTION.
(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
DEPARTMENT SHALL NOTIFY APPLICANTS FOR A LOAN, GRANT, TAX CREDIT, OR
OTHER FINANCIAL SUPPORT COVERED UNDER THIS SECTION THAT PROVIDING
EDUCATOR WORKFORCE HOUSING, INCLUDING ON LAND, SCHOOL SITES, OR
BUILDINGS BOUGHT OR OTHERWISE ACQUIRED BY A COUNTY BOARD OF EDUCATION
AND USED TO DEVELOP AFFORDABLE HOUSING, IS AN ELIGIBLE USE OF THE
FINANCIAL SUPPORT.
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Ch. 678 2026 LAWS OF MARYLAND
(II) THE NOTICE REQUIREMENT UNDER SUBPARAGRAPH (I) OF
THIS PARAGRAPH DOES NOT APPLY WHEN AN INDIVIDUAL APPLIES FOR A LOAN,
GRANT, TAX CREDIT, OR OTHER FINANCIAL SUPPORT UNDER A DEPARTMENT
PROGRAM THAT DOES NOT FOCUS ON HOUSING.
(D) (1) IT IS THE POLICY OF THE STATE TO SUPPORT EDUCATOR
WORKFORCE HOUSING DEVELOPMENT IN THE STATE.
(2) TEACHERS AND OTHER EMPLOYEES OF A LOCAL SCHOOL SYSTEM
SHALL BE CONSIDERED A SPECIFIED GROUP FOR PURPOSES OF THE FEDERAL
LOW–INCOME HOUSING TAX CREDIT PROGRAM AND ANY OTHER APPLICABLE
FEDERAL AFFORDABLE HOUSING DEVELOPMENT PROGRAM THAT USES STATE LAW
TO DETERMINE ELIGIBILITY.
4–512.
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “EDUCATOR WORKFORCE HOUSING” HAS THE MEANING STATED
IN § 1–103 OF THIS ARTICLE.
(3) “Fund” means the Housing Innovation Fund.
(b) There is a Housing Innovation Fund.
(c) The purpose of the Fund is to provide loans for local housing authorities [and],
county governments, MUNICIPAL CORPORATIONS, AND COUNTY BOARDS OF
EDUCATION to develop mixed–income, cross–subsidized housing AND, INCLUDING
EDUCATOR WORKFORCE HOUSING.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund; and
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WES MOORE, Governor Ch. 678
(2) any other money from any other source accepted for the benefit of the
Fund.
(g) (1) Subject to paragraph (2) of this subsection and subsection (j) of this
section, the Fund may be used only to provide low– or no–interest loans to local housing
authorities [or to], county governments, MUNICIPAL CORPORATIONS, OR COUNTY
BOARDS OF EDUCATION partnering with housing developers through the Housing
Innovation Pilot Program in accordance with Subtitle 30 of this title.
(2) The Fund may be used for projects where a county, MUNICIPAL
CORPORATION, OR COUNTY BOARD OF EDUCATION, in conjunction with a local housing
authority or a housing developer, acquires existing private sector housing.
(h) (1) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the General Fund
of the State.
(i) Expenditures from the Fund may be made only in accordance with the State
budget.
(j) (1) (i) For fiscal year 2025, an allocation to the Fund shall be committed
to projects before July 1, 2026, subject to applicants being afforded a reasonable period of
time to complete the application.
(ii) For fiscal year 2026 and each fiscal year thereafter, an allocation
to the Fund in a fiscal year shall be committed to projects before the end of that fiscal year,
subject to applicants being afforded a reasonable period of time to complete the application.
(2) If an allocation of funds to the Fund under paragraph (1) of this
subsection has not been committed to projects before the end of the fiscal year when they
were allocated, the funds shall be eligible for use in support of projects that apply to the
Rental Housing Program established under Subtitle 4 of this title.
4–3001.
(a) In this subtitle the following words have the meanings indicated.
(b) “Authority” has the meaning stated in § 12–101 of this article.
(c) “Fund” means the Housing Innovation Fund.
(d) “Housing innovation project” means a project to provide mixed–income,
cross–subsidized housing OR, INCLUDING EDUCATOR WORKFORCE HOUSING, that
qualifies under § 4–3003 of this subtitle.
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Ch. 678 2026 LAWS OF MARYLAND
(e) “Program” means the Housing Innovation Pilot Program.
(f) “Public ownership” means that the authority of the political subdivision of the
state in which OR THE COUNTY BOARD OF EDUCATION IN WHOSE JURISDICTION the
project is located possesses majority ownership or control.
4–3002.
(a) There is a Housing Innovation Pilot Program.
(b) The purposes of the Program are:
(1) to create opportunities for the State’s public housing authorities [and],
county governments, MUNICIPAL CORPORATIONS, AND COUNTY BOARDS OF
EDUCATION to increase the volume of housing production; and
(2) to reward counties, MUNICIPAL CORPORATIONS, AND COUNTY
BOARDS OF EDUCATION pursuing innovative solutions to the problem of housing scarcity.
(c) The Program shall be operated with money in the Fund.
4–3003.
(a) A project qualifies as a housing innovation project if it provides new housing
in which:
(1) at least 20% of the units are set aside for households with a gross
annual income of not more than 50% of the area median income for a household of like size;
[or]
(2) at least 40% of the units are set aside for households with a gross
annual income of not more than 60% of the area median income for a household of like size;
OR
(3) ANY PORTION OF THE UNITS ARE SET ASIDE FOR EDUCATOR
WORKFORCE HOUSING UNDER § 1–103 OF THIS ARTICLE.
(b) The Department shall prioritize funding for projects that best meet the
following guidelines:
(1) the project does not use low–income housing tax credit equity or
tax–exempt volume cap;
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WES MOORE, Governor Ch. 678
(2) the [affordable] set–asides required under subsection (a) of this section
remain restricted at elected levels for at least 99 years;
(3) the project remains in public ownership; and
(4) the project includes a commitment to prevailing wage requirements;
AND
(5) ANY PORTION OF THE UNITS ARE SET ASIDE FOR EDUCATOR
WORKFORCE HOUSING.
4–3004.
(a) The Department shall:
(1) coordinate with local housing authorities [and], county governments,
MUNICIPAL CORPORATIONS, AND COUNTY BOARDS OF EDUCATION to ensure access to
other financial resources, including senior debt products;
(2) develop new resources in support of statewide housing production;
(3) solicit applicants for the Program; and
(4) subject to subsection (b) of this section, select three projects to receive
assistance from the Program each in a different jurisdiction.
(b) The Department may select fewer than three projects to fund if there is an
insufficient number of eligible applicants.
6–405.
(a) (1) For each fiscal year, a nonprofit organization may submit to the
Department, for approval under the Neighborhood and Community Assistance Program, a
proposal for a project to provide services to a priority funding area.
(2) The project may include:
(i) community services, including child care and recreational
services;
(II) EDUCATOR WORKFORCE HOUSING UNDER § 1–103 OF THIS
ARTICLE;
[(ii)] (III) redevelopment assistance;
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Ch. 678 2026 LAWS OF MARYLAND
[(iii)] (IV) job training for individuals whose incomes do not exceed
the upper income limits that the Secretary sets under § 4–212 of this article;
[(iv)] (V) education; and
[(v)] (VI) crime prevention.
(b) A proposal under this section shall include:
(1) the project to be conducted;
(2) the priority funding area that will benefit from the project;
(3) a description of the applicant’s experience and capabilities;
(4) the estimated costs of the project;
(5) a description of the plans for implementing the project; and
(6) any other information that the Department determines is necessary.
(c) (1) The Department shall provide written notice to the political subdivision
OR IF THE PROPOSED PROJECT IS AN EDUCATOR WORKFORCE HOUSING
DEVELOPMENT PROJECT, THE LOCAL SCHOOL SYSTEM, in which the proposed project
is located.
(2) [Except] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION AND
EXCEPT as provided in paragraph [(4)] (5) of this subsection, the Department may not
approve a proposal submitted under this section unless the proposal is approved by the
governing body or authorized designee of:
(i) each county that includes any of the priority funding area that
benefits from the project, if the project is not in a municipal corporation;
(ii) each municipal corporation that includes any of the priority
funding area that benefits from the project; or
(iii) each political subdivision that includes any of the priority
funding area that benefits from the project, if the priority funding area is partly within and
partly outside of any municipal corporation.
(3) IF THE PROJECT IS AN EDUCATOR WORKFORCE HOUSING
DEVELOPMENT PROJECT,:
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WES MOORE, Governor Ch. 678
(I) APPROVAL BY A COUNTY BOARD OF EDUCATION OR AN
AUTHORIZED DESIGNEE OF A LOCAL SCHOOL SYSTEM THAT BENEFITS FROM A
PROJECT IS NOT REQUIRED; BUT
(II) THE DEPARTMENT MAY NOT APPROVE A PROPOSAL
SUBMITTED UNDER THIS SECTION UNLESS THE PROPOSAL IS ALSO APPROVED BY
WITHOUT NOTIFYING THE COUNTY BOARD OF EDUCATION OR AUTHORIZED
DESIGNEE OF AT LEAST ONE LOCAL SCHOOL SYSTEM THAT BENEFITS FROM THE
PROJECT IN ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION.
[(3)] (4) An approval shall:
(i) be in writing; and
(ii) state the maximum amount of contributions to the approved
project that are eligible for a tax credit under § 6–404 of this subtitle.
[(4)] (5) If the Department does not receive notice of approval or denial of
an application from the affected jurisdictions within 45 days after notice of the proposed
project is given in accordance with paragraph (1) of this subsection, the Department may
approve the application.
[(5)] (6) The sum of contributions eligible for a tax credit under § 6–404
of this subtitle for all approved projects for a fiscal year may not exceed $3,500,000.
(d) In approving or disapproving a proposal and in determining the maximum
amount of contributions eligible for tax credits under § 6–404 of this subtitle, the
Department:
(1) shall consider:
(i) the need for the project in relation to the need for other proposed
projects;
(ii) the anticipated benefit to the priority funding area;
(iii) the capacity of the applicant to raise money for the project;
(iv) the readiness of the applicant to proceed with the project;
(v) the ability of the applicant to complete the project as proposed;
(vi) the geographic distribution of projects; and
(vii) any other relevant factors;
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Ch. 678 2026 LAWS OF MARYLAND
(2) may give preference to a proposal that benefits:
(i) a sustainable community under § 6–305 of this title; or
(ii) a neighborhood conservation district that is locally designated in
coordination with the Department’s Neighborhood and Community Assistance Program;
(3) may request data and assistance from other units of the State; and
(4) shall apportion among all approved projects the limit imposed by
subsection [(c)(5)] (C)(6) of this section.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 26, 2026.
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