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WES MOORE, Governor Ch. 727
Chapter 727
(House Bill 571)
AN ACT concerning
Nonprofit Housing Corporations – Tax and Enforcement of Judgment Taxes and
Special Assessments Exemptions – Alterations
FOR the purpose of altering the definition of “nonprofit housing corporation” for purposes
of eligibility for an exemption from real property taxes and special assessments of
the State or a political subdivision; exempting certain real property owned by certain
subsidiary entities of a nonprofit housing corporation from taxes and special
assessments of the State or a political subdivision; exempting certain real property
of a nonprofit housing corporation from certain procedures for enforcement of a
judgment against the nonprofit housing corporation; and generally relating to tax
and enforcement of judgment taxes and special assessments exemptions for
nonprofit housing corporations.
BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 12–104
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 – Housing and Community Development
12–104.
(a) In this section, “housing authority entity” means an entity:
(1) that is controlled or wholly owned by an authority; or
(2) in which an authority or an entity controlled or wholly owned by an
authority has an ownership interest, either directly or indirectly, through one or more
wholly or partially owned subsidiary entities.
(b) A nonprofit entity shall be deemed controlled by an authority under subsection
(a) of this section if:
(1) the nonprofit entity is established by an authority under § 12–502(h) of
this title; and
(2) the authority:
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Ch. 727 2026 LAWS OF MARYLAND
(i) has the power to appoint a majority of the board of directors of
the nonprofit entity; or
(ii) is the sole member of the nonprofit entity.
(c) (1) (I) In this subsection, THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.
(II) “AFFORDABLE HOUSING” MEANS RENTAL HOUSING:
1. THAT HAS BEEN AWARDED OR APPROVED FOR A
CREDIT ALLOWED UNDER § 42 OF THE INTERNAL REVENUE CODE AND IS SUBJECT
TO A COVENANT UNDER THE FEDERAL LOW–INCOME HOUSING TAX CREDIT
PROGRAM; OR
2. APPROVED BY THE GOVERNING BODY OF THE
POLITICAL SUBDIVISION IN WHICH THE PROJECT IS LOCATED AND FOR WHICH:
A. AT LEAST 50% OF THE UNITS ARE RESERVED FOR
HOUSEHOLDS EARNING AT OR BELOW 60% OF THE AREA MEDIAN INCOME FOR THE
METROPOLITAN STATISTICAL AREA OF THE PROJECT; AND
B. RENT IS RESTRICTED TO 30% OF GROSS HOUSEHOLD
INCOME FOR A FAMILY OF FOUR AT OR BELOW 60% OF THE AREA MEDIAN INCOME
FOR THE METROPOLITAN STATISTICAL AREA OF THE PROJECT, ADJUSTED TO 1.5
INDIVIDUALS FOR EACH BEDROOM IN THE UNIT.
(III) “nonprofit NONPROFIT housing corporation” means a [nonprofit
or charitable private corporation that provides safe and sanitary housing to persons of
eligible income in such a way that the corporation works essentially like an authority under
this Division II] CORPORATION:
(I) 1. INCORPORATED UNDER THE LAWS OF THE STATE OR
AUTHORIZED TO DO BUSINESS IN THE STATE BY THE STATE DEPARTMENT OF
ASSESSMENTS AND TAXATION;
(II) 2. RECOGNIZED BY THE INTERNAL REVENUE SERVICE
AS AN ORGANIZATION DESCRIBED IN § 501(C)(3) OF THE INTERNAL REVENUE CODE;
AND
(III) 3. ORGANIZED AND OPERATED FOR THE PRIMARY
PURPOSE OF DEVELOPING, OWNING, OR OPERATING SAFE AND SANITARY
AFFORDABLE HOUSING FOR PERSONS OF ELIGIBLE INCOME.
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WES MOORE, Governor Ch. 727
(2) THIS SUBSECTION DOES NOT APPLY TO:
(I) PROPERTY IN BALTIMORE CITY THAT:
1. BELONGS TO A NONPROFIT HOUSING CORPORATION;
OR
2. IS OWNED IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, THROUGH ONE OR MORE WHOLLY OR PARTIALLY OWNED SUBSIDIARY
ENTITIES OF A NONPROFIT HOUSING CORPORATION; OR
(II) A HOUSING PROJECT OWNED BY A NONPROFIT HOUSING
CORPORATION OR AN ENTITY THAT IS CONTROLLED OR WHOLLY OWNED BY A
NONPROFIT HOUSING CORPORATION THAT, BEFORE JULY 1, 2026, RECEIVED A
FINANCIAL CONTRIBUTION, INCLUDING A LOAN, A GRANT, OR OTHER DIRECT
FINANCIAL ASSISTANCE, FOR THE DEVELOPMENT OF THE HOUSING PROJECT FROM
A POLITICAL SUBDIVISION IN WHICH THE HOUSING PROJECT IS LOCATED.
(2) (3) Property is used for essential public and governmental OR
CHARITABLE purposes and is exempt from all taxes and special assessments of the State
or a political subdivision if the property:
(i) belongs to an authority or a nonprofit housing corporation;
(ii) is used as housing for persons of eligible income and is owned in
whole or in part, directly or indirectly, through one or more wholly or partially owned
subsidiary entities of a housing authority entity OR NONPROFIT HOUSING
CORPORATION; or
(iii) 1. is used, or if planned or under construction will be used,
as housing for persons of eligible income and is owned in whole or in part, directly or
indirectly, through one or more wholly or partially owned subsidiary entities of a housing
authority entity OR NONPROFIT HOUSING CORPORATION; and
2. has improvements, or has improvements planned or under
construction, located on land that is owned by:
A. an authority OR A NONPROFIT HOUSING
CORPORATION; or
B. an entity that is controlled or wholly owned by an
authority OR A NONPROFIT HOUSING CORPORATION.
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Ch. 727 2026 LAWS OF MARYLAND
(3) (4) In lieu of those taxes and special assessments, an authority, a
nonprofit housing corporation, or a housing authority entity shall pay the political
subdivision in which a housing project is wholly or partly located an amount, if any, that
may be set by mutual agreement and that does not exceed the amount of regular taxes
levied on similar property.
(d) (1) Except as provided in paragraph (2) or (3) of this subsection:
(i) all real property of an authority is exempt from levy and sale by
virtue of an execution;
(II) ALL REAL PROPERTY OF A NONPROFIT HOUSING
CORPORATION THAT IS USED AS HOUSING FOR PERSONS OF ELIGIBLE INCOME IS
EXEMPT FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION;
[(ii)] (III) an execution or other judicial process may not issue
against the real property DESCRIBED IN ITEMS (I) AND (II) OF THIS PARAGRAPH; [and]
[(iii)] (IV) a judgment against an authority is not a charge or lien on
the authority’s real property; AND
(V) A JUDGMENT AGAINST A NONPROFIT HOUSING
CORPORATION IS NOT A CHARGE OR LIEN ON THE NONPROFIT HOUSING
CORPORATION’S REAL PROPERTY THAT IS USED AS HOUSING FOR PERSONS OF
ELIGIBLE INCOME.
(2) Paragraph (1) of this subsection does not limit a right to foreclose or
otherwise enforce:
(i) a mortgage or deed of trust recorded against property of an
authority OR A NONPROFIT HOUSING CORPORATION; or
(ii) a pledge or lien given by an authority OR A NONPROFIT
HOUSING CORPORATION on its rents, fees, or revenues.
(3) This subsection does not deprive a political subdivision of its right to
collect money agreed to be paid in lieu of taxes in the same manner as taxes are now or may
be collected under State law and the laws of the political subdivision.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 26, 2026.
–4–Every fact on this page links to its source, starting with the official bill record.