(a) The owner of a dwelling unit must obtain a rental housing license before operating the dwelling unit as rental housing. If the owner is a corporation, the corporation must be qualified to do business in Maryland under state law. Each owner must certify to the Department the name, address and telephone number of an agent who resides in Maryland and is qualified to accept service of process on behalf of the owner. (b) The Director must issue three classes of rental housing licenses. Class 1 is a multifamily rental housing license. Class 2 is a single-family rental housing license. Class 3 is a single-family accessory apartment license. (c) A Class 1 rental housing license is required for each apartment complex and personal living quarters building, and for each multifamily dwelling unit operated as rental housing. A Class 2 rental housing license is required for each single-family dwelling unit operated as rental housing. A Class 3 license is required for each single-family residence with an accessory apartment that does not have a special exception approved before May 20, 2013. (a) issue a rental housing license for more than six personal living quarters buildings; or (b) issue a rental housing license for more than one personal living quarters building in any policy area designated in the County Growth Policy. The Department must issue an annual report not later than February 1 each year which must describe each personal living quarters building licensed during the previous year and may contain any other information about personal living quarters buildings that would assist the Council and Executive in deciding whether to allow further licensing of personal living quarters buildings beyond that allowed under this Section."

The Director must not issue a license to operate rental housing that is subject to Chapter 53A unless a notice is recorded in County land records that transfer of an interest in the rental housing is subject to Chapter 53A.

(a) Any person has committed a class A violation if the person: (1) operates, attempts to operate, or permits the operation of rental housing that the person owns without first having obtained a rental housing license, or (2) does not comply with a Commission order or summons. If a person stops operating rental housing, no penalty will apply during the sixty-day period that tenants have to vacate the housing as specified in Section 29-25. (b) In addition to any criminal or other penalty provided in this Chapter, the County Attorney may initiate an appropriate civil action to correct any violation of this Article under Section 29-8, and any court with jurisdiction may issue restraining orders, temporary or permanent injunctions or other appropriate relief.

(a) To obtain a rental housing license, the prospective operator must apply on a form furnished by the Director and must pay the required fee. If the Director notifies the applicant of any violation of law within 30 days, the Director may issue a temporary license for a period of time the Director finds necessary to achieve compliance with all applicable laws. (b) Accessory dwelling unit rental license. (1) An owner of a lot or parcel in a zone that permits accessory dwelling units must obtain a license to operate an accessory dwelling unit to live in or to rent if: (A) the owner places a sign provided by the Director on the lot of the proposed accessory dwelling unit within 5 days after the Director accepts an application license. The sign must identify any requested waivers under Section 29-26(b). The sign provided by the Director must remain in place on the lot for a period of time and in a location determined by the Director. (B) the principal dwelling or accessory dwelling unit is the primary residence of the applicant for an accessory dwelling unit rental license. Evidence of primary residence includes: (i) the owner’s most recent Maryland income tax return; (ii) the owner’s current Maryland driver’s license; or (iii) the owner’s real estate tax bill for the address of the proposed accessory dwelling unit; (C) the applicant certifies to the Director that an accessory dwelling unit is not prohibited by any common ownership community governing documents and any common ownership community fees for the dwelling unit are no more than 30 days past due; and (D) the Director finds that: (i) the accessory dwelling unit satisfies the standards for an accessory dwelling unit in Section 59.3.3.3 and if needed, a Hearing Examiner granted a waiver under Section 29-26; or (ii) the accessory dwelling unit was approved under Article 59-G as a special exception under the Zoning Ordinance applicable before October 30, 2014 or under 2014 Zoning Ordinance § 59.3.3.3 as a conditional use. (2) Upon receipt of an application for an accessory dwelling unit license, the Director must: (A) send a copy of the application to the Office of Zoning and Administrative Hearings and the governing body for any applicable common ownership community, within 5 days after the date the application was accepted by the Director; (B) inspect the lot or parcel identified in the application and the proposed accessory dwelling unit; (C) complete a report on any repairs or improvements needed to approve the application; (D) issue a report on all required findings within 30 days after the date the application was accepted by the Director; (E) post a copy of the Director’s report on findings on the internet web site identified on the applicant’s sign; and (F) issue or deny a new license 30 days after the issuance of the Director’s report unless: (i) a timely objection is filed under Section 29-26; or (ii) improvements to the property are required before the license may be approved. (3) The Director may renew a license for an accessory dwelling unit at the request of the applicant if: (A) the applicant: (i) attests that the number of occupants will not exceed the requirements of Section 26-5 and there will be no more than 2 residents in the dwelling unit who are older than 18 years; (ii) attests that one of the dwelling units on the lot or parcel will be the primary residence of the owner; and (iii) acknowledges that by obtaining a license the applicant gives the Director the right to inspect the lot or parcel including the accessory dwelling unit. (4) The Director may renew a Class 1 license for an accessory dwelling unit that was approved as a special exception, as a Class 1 license if the conditions of the special exception remain in effect and the applicant is in compliance with those conditions. (5) The Director may transfer an accessory dwelling unit license to a new owner of a licensed dwelling unit if the new owner applies for the transfer. The conditions and fees for any transfer are the same as the conditions and fees for a license renewal. (6) The Director must maintain a public list and map showing each Class 3 license and each accessory dwelling unit with a Class 1 license. (c) Where a rental building has not been completely constructed or renovated, the Director may issue a temporary license for that part of the building that has been completely constructed or renovated if the landlord has: (1) obtained a temporary certificate of occupancy under Chapter 8; and (2) complied with all other applicable laws. However, the temporary license expires when a license to operate the entire building is issued. (d) The Director must not issue a rental housing license for a personal living quarters building unless the applicant has submitted a satisfactory management plan. The plan must specify who will manage the building and explain what the manager will do to achieve acceptable levels of safety, sanitation, and security in the building's common areas. (e) Common ownership community fees. (1) The Director must not issue or renew a rental housing license for a dwelling unit in a common ownership community unless the owner certifies that the common ownership community fees for the dwelling unit are no more than 30 days past due. If a common ownership community decides to charge a fee to certify that the common ownership fees for a dwelling unit have been paid, the fee must be no more than $25. (2) The Director may deny, suspend, revoke, or refuse to renew a housing rental license for a dwelling unit in a common ownership community if the governing body of a common ownership community submits proof of unpaid common ownership community fees for the dwelling unit through: (A) a recorded statement of lien obtained under the Maryland Contract Lien Act; or (B) an unsatisfied judgment against the owner. (f) Each licensee must give the Department a current address for the receipt of mail. If the Department sends first class or certified mail to the licensee at the designated address and the mail is returned as undeliverable, the Department may treat the mail as having been received.

(a) Except as provided in subsections (b) and (c), the annual license fee per dwelling unit is: (1) for a Class 1 multi-family rental facility license: (A) $44.00 per dwelling unit in an apartment complex or an accessory dwelling unit approved by special exception; and (B) $59.00 per dwelling unit for all others; (2) for a Class 2 single-family rental facility license, $101.00 per dwelling unit; (3) for a Class 3 accessory dwelling unit license $101.00 per unit. (b) Fee exemption for an accessory dwelling unit occupied by an individual with disabilities. (1) A license applicant is exempt from any fee associated with the licensure of an accessory dwelling unit occupied by an individual with disabilities. (2) To establish that an individual with disabilities occupies an accessory dwelling unit, a license applicant annually must certify, on a form provided by the Director, that an occupant of the accessory dwelling unit: (A) receives Social Security Disability benefits based on blindness or disability under Title II of the Social Security Act, as amended; (B) receives Supplemental Security Income benefits based on blindness or disability under Title XVI of the Social Security Act, as amended; (C) receives disability compensation from the U.S. Department of Veterans Affairs; (D) is the beneficiary of an ABLE account under Section 529A of the Internal Revenue Code, as amended; or (E) has a written certification, signed by a physician licensed in the State of Maryland, that the individual: (i) has a severe medically determinable impairment that results in marked and severe functional limitations, which have lasted, or can be expected to last, for at least 12 months or to result in death; or (ii) is blind, which means the individual has central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. (3) If the Director requests evidence sufficient to verify the information certified under this subsection, the license applicant or licensee must provide such evidence. (4) The Director must protect the confidentiality of any individual health information received under this Section to the maximum extent permitted by law. (c) Annual fee exemption for a rent-free accessory apartment. (1) A license applicant is exempt from the annual license fee under subsection (a) for an accessory apartment if the applicant does not charge rent for the apartment. (2) To qualify for an exemption under this subsection, a license applicant annually must certify, on a form provided by the Director, that the applicant does not charge rent for the apartment. (3) If the Director requests evidence sufficient to verify the information certified under this subsection, the license applicant or licensee must provide such evidence. (d) By method (3) regulation, the Executive may establish annual fees that are: (1) higher than those specified in subparagraph (a); and (2) in amounts sufficient to pay the costs of administering this Chapter.

The licensee for an apartment complex or a personal living quarters building must display the rental housing license in the lobby, vestibule, rental office, or other prominent public place on the premises during the entire period the license is effective. In all other licensed rental dwelling units the landlord need not display the license.

(a) Except as provided in this Section, the Director must inspect each apartment complex and personal living quarters building licensed as rental housing, at least once within each three-year period to determine if it complies with all applicable laws. The Director may inspect an apartment complex or personal living quarters building more often than the triennial inspection. (b) The Director must inspect, at least once each year, any rental housing which, after inspection, the Director: (1) finds in violation of any applicable law that adversely affects the immediate health and safety of the tenants, including: (A) rodent or insect infestation affecting 20% or more units in a building; (B) extensive and visible mold growth on interior walls or surfaces exposed to the occupied space; (C) windows that do not permit a safe means of egress; (D) pervasive and recurring water leaks that result in chronic dampness, mold growth, or personal property damage in more than one unit; or (E) lack of one or more working utilities that is not shut off due to tenant non-payment, including: (i) natural gas; (ii) electricity; (iii) water; (iv) sewage disposal; or (2) determines to be a troubled property, under a procedure established by method (2) regulation that: (A) classifies violation types by severity; and (B) rates properties by: (i) severity of violations; and (ii) quantity of violations. (c) The Director must require a corrective action plan for any property subject to annual inspections under subsection (b). A property required to develop and implement a corrective action plan must be inspected at least once each year until the Director determines that the corrective action plan has been successfully completed. (d) The Director may inspect any other rental housing if the Director receives a complaint or a request from a landlord or tenant or believes that the rental housing does not comply with all applicable laws. (e) As a condition of receiving a license under this Chapter, a landlord must agree to: (1) allow access to the Department for any inspection required under this Chapter or Chapter 26; (2) notify any affected tenant whose unit requires inspection at least 72 hours in advance of a scheduled inspection under subsection (a) of this Section; and (3) when subject to annual inspection under subsection (b), provide quarterly updates to the Director listing all maintenance requests received by the landlord from tenants. (f) If an inspection indicates that any rental housing does not comply with all applicable laws, the Director must notify the landlord in writing and order correction of each violation within a specified period of time. If the landlord does not correct the violation in the specified period of time, the Director may: (1) authorize a tenant to: (A) have the violation corrected by a licensed contractor selected from a list maintained by the Director; and (B) deduct the reasonable cost of the repair up to the amount of one month’s rent, from the tenant’s rent; or (2) revoke the license or take other remedial action under Section 29-25. (g) A landlord of licensed rental housing notified after initial inspection of a violation of applicable laws must pay the cost of the third, and subsequent inspections, as established by regulation, if the violation is not corrected by the second inspection. (a) The Director must, by July 1, 2019, inspect a sample of each multifamily rental property for which a certificate of occupancy was issued before January 1, 2015. (b) The Director must provide to the Council, by January 15, 2017, a plan to inspect rental housing under subsection (a) that includes: (1) a means of prioritizing inspections; (2) standardized inspections for all units; and (3) an estimate of the cost for conducting the inspections.

Each license must be issued for a term of one year, renewable for additional one-year terms, subject to payment of the license fee and compliance with all applicable laws. Renewal of licenses must follow procedures established by the Director.

(a) If an applicant for or the holder of a license transfers ownership or no longer is an agent for the licensed rental housing or changes address, the applicant or licensee must notify the Department within 10 days of the change. The Director may reject an application or suspend or revoke a license if the applicant or licensee does not notify the Department as required by this subsection. (b) Any person who takes over the operation of licensed rental housing may transfer the license for the unexpired portion of the term for which it was issued by applying to the Director within 15 days after taking over operation and paying a license transfer fee of at least $5 per dwelling unit, but not exceeding $25. Nothing in this Section affects the validity of any sale, transfer, or disposition of any interest in real estate. This subsection does not apply to accessory dwelling units. (c) Whenever the ownership of any rental housing changes hands, the transferor must notify all tenants of the name, address and office location of the transferee. If the transferee is a corporation, the transferor must list the name and address of the resident agent of the transferee.

(a) The Director may revoke, deny, or suspend a license for all or part of any rental housing at any time if the landlord, after 10 days' written notice, does not eliminate or initiate bona fide efforts to eliminate violations of applicable laws. Revocation, denial or suspension of a license is in addition to, and not a substitute for, any other penalties provided for the violations. (b) If a license is revoked or any application, including an application for license renewal, is denied, and the landlord stops renting the housing, the landlord must give any tenants occupying the housing 2 months written notice to vacate the premises. The 2 month period must begin on the first day of the month after service of the notice. In addition, a copy of the notice must be delivered to the Director. (c) Any person aggrieved by an action of the Director under this Article may, within 10 days after receiving written notice of the action, appeal that action to the Commission by filing a notice of appeal with the Director. Except for the revocation of a license, an appeal does not stay the Director's action unless the Commission stays the action for good cause. An appeal does not stay revocation of a license. (d) Within 15 days after a notice of appeal is filed, the Commission or a panel designated under Section 29-14 must conduct a hearing, at which the person aggrieved must have an opportunity to be heard. The hearing must be open to the public and the Commission must maintain records and minutes. The Commission may summon all witnesses it deems necessary. A summons so issued must be signed by the chair of the Commission or the chair's designee and requires the attendance of named persons and the production of relevant documents and records. Failure to comply with the summons is a violation of this Chapter. (e) Within 10 days after the hearing, the Commission or Commission panel must, by order, either reverse, modify, or affirm the action appealed. The Commission or Commission panel must issue its findings, opinions, and orders in writing and provide a copy to the person aggrieved. The Commission may extend the time for any hearing and the issuance of any findings, opinions, and orders.

(a) Any person aggrieved by a final action of the Commission rendered under this Article may appeal to the Circuit Court under the Maryland Rules of Procedure for judicial review of a final administrative agency decision. An appeal does not stay enforcement of the Commission’s order. (b) Waivers and objections concerning any new accessory dwelling unit license. (1) The applicant for a new license for an accessory dwelling unit may request a waiver of a standard to the extent allowed by Section 59.3.3.3 or object to an adverse finding of fact by the Director by filing a waiver or an objection and a request for a hearing with the Office of Zoning and Administrative Hearings. (2) Any other aggrieved person may file an objection and request for a hearing with the Office of Zoning and Administrative Hearings by: (A) objecting to any finding of fact by the Director; or (B) alleging that on-street parking is inadequate. (3) A request for a waiver or an objection must be submitted to the Office of Zoning and Administrative Hearings within 30 days after the date of the Director’s report and must state the basis for the waiver or objection. (4) The Hearing Examiner must send notice of an adjudicatory hearing to the applicant and any aggrieved person who filed an objection within 10 days after the waiver or objection is received and conduct any such hearing within 30 days of the date the objection is received unless the Hearing Examiner determines that necessary parties are unable to meet that schedule. (5) The Hearing Examiner may only decide the issues raised by the waiver or objection. (6) The Hearing Examiner may waive on-site parking standards if: (A) the available on-street parking for residents within 300 feet of the proposed accessory dwelling unit would permit a resident to park on- street near his or her residence on a regular basis; and (B) the proposed accessary dwelling unit is not likely to reduce the available on-street parking within 300 feet of the proposed accessory apartment. (7) The Hearing Examiner may find that more than the minimum on-site parking must be required as a condition of the license and may impose other conditions to assure adequate parking on granting the waiver. [(8)] [Reserved.] (9) The Hearing Examiner may consolidate public hearings on any requested waivers and any objections to the Director’s findings that involve the same license application. (10) The Hearing Examiner must issue a final decision within 30 days after the close of the record of the adjudicatory hearing. If both a waiver request and an objection relating to the same accessory apartment license application are filed, the Hearing Examiner must issue a final decision within 30 days after the close of the record in both cases. (11) The Director must issue or deny the license based on the final decision of the Hearing Examiner. (12) Any party aggrieved by the Hearing Examiner’s decision on an objection or a waiver may request the Circuit Court to review the Hearing Examiner’s final decision under the Maryland Rules of Procedure. An appeal to the Circuit Court does not automatically stay the Director’s authority to grant a license.