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Important Maryland Housing Legislation Passed in 2014

Posted by IKO Community Management on July 17, 2014 at 4:00 AM

IKO Community Management knows that it may be difficult to keep up with all of the Maryland State governmental proceedings. We want to make sure you’re kept up to date, so we’re sharing a list of important housing legislation passed in 2014. Many of these laws will be (or are) effective this summer, so take notes!

Affordable Housing and Taxes

HB 223

Urban Agricultural Property Applicability

Effective June 1, 2014

Local governments can now provide property tax credit to properties engaged in urban agriculture. Previously, properties had to be dedicated to urban agriculture, but now properties may have other purposes in addition to urban agriculture. Local governments will determine eligibility requirements for properties to receive this credit.

Urban agriculture can include:

    • Crop Production
    • Environmental Mitigation Activities
    • Produce Stands
    • Certain Recreational Activities

HB 510

Sustainable Communities Tax Credit Program

Effective June 1, 2014

Extends the Sustainable Communities Tax Credit Program until June 30, 2017 and appropriates up to $4 million for “small commercial projects.”

Small commercial projects are:

  • Limited to less than $500,000 in rehabilitation expenditures
  • Both commercial and residential rentals

HB 923/SB 596

Mortgage Forgiveness Debt Relief

Extends state tax relief for mortgage debt forgiveness for two years, to June 30, 2016. Amount of debt forgiveness lowered from $1 million to $100,000 for individuals and from $2 million to $200,000 for married couples.

Land-use, Property Rights, and the Environment

HB 11

Bay Restoration Fund

Effective June 1, 2014

Bay Restoration Fund septic account can now be used to pay the principle on local government bonds issued to connect homes on septic to municipal wastewater facilities that use enhanced nitrogen removal.

HB 553

Energy-Efficient Homes Construction Loan Program

Effective July 1, 2014

Creates a loan program for low-energy or “net-zero” homes.

Net-zero homes generate only the power they need.

The program will be focused on construction loans and allows the Department of Housing and Community Development to enter into agreements with private sector partners to run and fund the program.

SB 172

Budget Reconciliation and Financing Act of 2014

Effective June 1, 2014

Carroll County and Frederick County may enter into an agreement with the Maryland Department of Environment to pay for storm water remediation costs through an alternative source of funding than the “rain tax.”

HB 249/SB 345

Residential Leases

Effective January 1, 2015

Requires landlords to return security deposits with an interest rate of 1.5% or a rate equal to the US. Treasury Daily Yield Curve Rate, whichever is higher.

 

How will these changes affect you and your business? Did we miss any important housing legislation passed or going into effect this year? Let us know in the comments!

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Topics: Developers