2023 Maryland Statutes › Housing and Community Development › Division I - Housing and Community Programs › Title 2 - Department of Housing and Community Development › Subtitle 2 - Governmental Units in Department › Section 2-203 - Identification of Property as Suitable for Use as Affordable Housing -- Donation or Sale of Listed Property -- Annual Reports

(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–income housing or workforce housing.
(3)    “Area median income” has the meaning stated in § 4–1801 of this article.
(4)    “Low–income housing” means housing that is affordable for a household with an aggregate annual income that is below 60% of the area median income.
(5)    “Workforce housing” has the meaning stated in § 4–1801 of this article.
(b)    (1)    (i)    Not later than 60 days after the notice provided under § 5–310(d) of the State Finance and Procurement Article, the Department shall, in consultation with the unit of State government that controls the property, determine if the property is suitable for use or redevelopment as affordable housing.
(ii)    The Department shall identify a property as suitable for use or redevelopment as affordable housing if the property:
1.    is located in an area designated as a priority funding area under Title 5, Subtitle 7B of the State Finance and Procurement Article;
2.    does not belong in a category of property listed in § 5–310(c)(1)(i) of the State Finance and Procurement Article;
3.    is adequately sized for any type of residential use;
4.    has access to public utilities; and
5.    has access to feasible ingress and egress points.
(iii)    The Department may consider other factors in addition to the provisions of subparagraph (ii) of this paragraph when determining the suitability of a property for use or redevelopment as affordable housing.
(2)    The Department shall compile and regularly update a list of properties it has determined are suitable for use or redevelopment as affordable housing.
(3)    For each property included in the list required under paragraph (2) of this subsection, the Department shall:
(i)    give notice of the determination to:
1.    the unit of State government that controls the property; and
2.    the State Treasurer; and
(ii)    advise the unit of State government of the requirements of subsection (c) of this section.
(4)    The list required under paragraph (2) of this subsection shall be made available to the public.
(c)    (1)    (i)    Except as provided in paragraphs (4) and (5) of this subsection, on receipt of the notice required under subsection (b)(3) of this section, the unit of State government shall, in consultation with the Department and the Department of Planning, develop a proposal to donate or sell the listed property by:
1.    donating or selling the property to a nonprofit organization that contracts to use or redevelop the property as affordable housing; or
2.    selling the property to a buyer that contracts to use or redevelop the property as affordable housing.
(ii)    If, after reasonable effort, the unit is unable to identify a suitable nonprofit organization or buyer in accordance with subparagraph (i) of this paragraph, the unit shall develop a proposal to sell the property at auction.
(iii)    A proposal developed under this paragraph shall be submitted to the Board of Public Works for consideration in accordance with § 10–305 of the State Finance and Procurement Article.
(2)    The unit of State government shall consider the proposed period of affordability, the number of affordable housing units created, and the viability of an offer when evaluating offers from multiple nonprofit organizations or buyers under this subsection.
(3)    When a property is donated or sold in accordance with a proposal developed under this subsection, the unit shall give notice of the disposition to the Department.
(4)    A unit may not propose to donate or sell a property under this subsection if the donation or sale would:
(i)    violate any covenant or applicable federal law; or
(ii)    in the opinion of the State Treasurer, adversely affect the tax–exempt status of an outstanding State bond, the proceeds of which were allocated to purchase or improve the property.
(5)    Nothing in this subsection shall be construed to supersede the right of a person from whom real property was acquired or their successor in interest to reacquire the property under § 8–309 of the Transportation Article.
(d)    On or before December 31, 2024, and each December 31 thereafter, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article:
(1)    the number of proposals submitted to the Board of Public Works under this section;
(2)    the number of properties that were donated pursuant to proposals developed under this section; and
(3)    the number of properties that were sold pursuant to proposals developed under this section.