Department of Housing and Community Development - Appraisal Gap From Historic Redlining Financial Assistance Program - Qualified Properties, the official text

WES MOORE, Governor                      Ch. 715

Chapter 715

                              (House Bill 1466)

AN ACT concerning

Department of Housing and Community Development – Appraisal Gap From
   Historic Redlining Financial Assistance Program – Qualified Properties

FOR the purpose of expanding the definition of a qualified property for purposes of the
         Appraisal Gap From Historic Redlining Financial Assistance Program; and generally
         relating to the Appraisal Gap From Historic Redlining Financial Assistance
         Program.

BY repealing and reenacting, without amendments,
         Article – Housing and Community Development
         Section 4–2801(a) and (i) and 4–2802
         Annotated Code of Maryland
         (2019 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Housing and Community Development
         Section 4–2801(h)
         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

4–2801.

(a) In this subtitle the following words have the meanings indicated.

(h) “Qualified property” means residential real property that is:

                  (1) newly constructed or a formerly vacant structure that has been
substantially rehabilitated;

             (2) located in:

                         (i) 1. a low–income census tract as defined by the U.S.
Department of Housing and Urban Development; and

             [(ii)] 2.        an area designated as a sustainable community; [and] OR
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Ch. 715  2026 LAWS OF MARYLAND

                         (II) AN AREA THAT MEETS CRITERIA ESTABLISHED BY THE
DEPARTMENT FOR THE IDENTIFICATION NEIGHBORHOODS THAT:

                                 1. HAVE BEEN HISTORICALLY REDLINED; OR

                                 2. HAVE UNDERGONE URBAN RENEWAL; AND

                  (3) constructed or rehabilitated with the purpose of being sold to an
owner–occupant at an affordable sales price.

         (i) “Sustainable community” means an area designated as a sustainable
community under § 6–205 of this article.

4–2802.

         (a) There is an Appraisal Gap From Historic Redlining Financial Assistance
Program in the Department.

         (b) The purpose of the Program is to help close appraisal gaps that occur in
historically redlined neighborhoods by making financial assistance available to:

                  (1) affordable housing developers working in low–income census tracts and
sustainable communities; and

                  (2) individuals who purchase a qualified property:

                           (i) after a qualified project is completed;

                           (ii) at an affordable sales price as determined by regulations adopted
by the Department; and

                           (iii) as an owner–occupant.

         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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