Housing and Community Development (GHS) — Title 12. Provisions of Statewide Applicability
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions; General Provisions
Md. Code Ann., Hous. & Cmty. Dev. § 12-101 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–101LinkCopy Citation
(a)
In this Division II the following words have the meanings indicated.
(b)
“Area of operation” means the geographical area within which an authority is empowered to act.
(c)
“Authority” means a public corporation created as a housing authority under this Division II.
(d)
“Bond” includes a note, an interim certificate, a debenture, and any other obligation issued by an authority under this Division II.
(e)
“Chief elected official” means:
(1)
the individual who exercises the office of the chief publicly elected executive official of the political subdivision; or
(2)
in a political subdivision without a chief publicly elected executive official, the highest executive body.
(f)
“Code authority” means an authority activated on or after July 1, 1990.
(g)
“County” means a county of the State or Baltimore City.
(h)
“Custodian of records” means:
(1)
the clerk of the political subdivision;
(2)
the officer charged with the duties customarily imposed on a clerk; or
(3)
the political subdivision’s designee to be the custodian of records for this Division II.
(i)
“Economically depressed or physically deteriorated area” means an area in which most housing is harmful to safety, health, and morals because of:
(1)
dilapidation;
(2)
overcrowding;
(3)
faulty arrangement or design; or
(4)
lack of ventilation, light, or sanitary facilities.
(j)
“Extraordinary majority” means two-thirds or more of the authorized number of members of the legislative body or the board of commissioners of an authority, as applicable.
(k)
(1)
“Housing project” means a work or undertaking to:
(i)
demolish, clear, or remove buildings from an economically depressed or physically deteriorated area; or
(ii)
provide decent, safe, and sanitary housing for persons of eligible income and, to the extent authorized by § 12-503(a)(4) of this title, for other persons.
(2)
“Housing project” includes:
(i)
work connected to planning, constructing, reconstructing, altering, or repairing improvements, acquiring property, or demolishing structures;
(ii)
adapting an economically depressed or physically deteriorated area to public purposes, including parks and other recreational or community purposes; and
(iii)
acquiring buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable:
(1)
appurtenances;
(2)
streets;
(3)
sewers;
(4)
water service;
(5)
parks;
(6)
site preparation;
(7)
gardening; and
(8)
administrative, community, health, recreational, educational, welfare, or other purposes.
(l)
“Legislative body” means the council, commissioners, or other legislative body of a political subdivision.
(m)
“Military personnel” includes all civilian and military employees of the military and naval forces of the United States and their families and other dependents who are living with them.
(n)
“Obligee” includes:
(1)
a bondholder and a trustee for a bondholder;
(2)
a lessor that leases to the authority property used in connection with a housing project, and an assignee of all or part of the lessor’s interest; and
(3)
the State or federal government when it is a party to a contract with an authority.
(o)
“Person” means an individual, a receiver, a trustee, a guardian, a personal representative, a fiduciary, a representative of any kind, a partnership, a firm, an association, a corporation, a public corporation, or any other entity.
(p)
“Person of eligible income” means an individual or family that qualifies under § 12-106 of this subtitle.
(q)
“Political subdivision” means a county or municipal corporation of the State.
(r)
“Pre-existing authority” means an authority that was activated before July 1, 1990.
(s)
“Real property” includes:
(1)
land;
(2)
improvements and fixtures on the land;
(3)
property of any nature appurtenant to or used in connection with the land; and
(4)
each legal or equitable estate, interest, and right in the land, including:
(i)
terms for years and liens by way of judgment, mortgage, or otherwise; and
(ii)
the indebtedness secured by those liens.
(t)
“State public body” means any political subdivision, commission, district, authority, or unit of the State.
Md. Code Ann., Hous. & Cmty. Dev. § 12-102 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–102LinkCopy Citation
The General Assembly finds that:
(1)
there is unsanitary or unsafe housing in which individuals of low and moderate income are forced to live;
(2)
there is a shortage of safe or sanitary housing that is available at rents that individuals of low and moderate income can afford, forcing these individuals to live in overcrowded housing;
(3)
there are many families living in housing that, while decent and safe, is inadequate for the size of the family;
(4)
the conditions:
(i)
cause disease and crime to increase and spread, threaten the public health, safety, morals, and welfare, and impair economic values; and
(ii)
cause too much public money to be spent for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities;
(5)
construction of housing projects for individuals of low and moderate income does not compete with private enterprise because:
(i)
there are economically depressed or physically deteriorated areas that cannot be assisted through the private housing market; and
(ii)
the private housing market cannot relieve the shortage of safe and sanitary housing for individuals of low and moderate income;
(6)
clearing, replanning, and reconstructing areas in which unsanitary or unsafe housing exists and providing safe and sanitary housing for persons of low and moderate income are public purposes and essential governmental functions for which public money may be spent and private property acquired;
(7)
it is the policy of the State to develop safe, sanitary, and decent housing for State residents;
(8)
there is a need for available mortgage credit because many purchasers and owners of housing cannot afford mortgage credit at the market interest rate or get mortgage credit because the mortgage credit market is severely restricted; and
(9)
this Division II is needed in the public interest.
Md. Code Ann., Hous. & Cmty. Dev. § 12-103 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–103LinkCopy Citation
The purpose of this Division II is to authorize each authority to do all that is necessary or desirable to secure the financial aid or cooperation of political subdivisions, State government, or federal government to help the authority undertake, construct, maintain, or operate a housing project.
Md. Code Ann., Hous. & Cmty. Dev. § 12-104 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–104LinkCopy Citation
(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:
(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 housing corporation” means a corporation:
(1)
incorporated under the laws of the State or authorized to do business in the State by the State Department of Assessments and Taxation;
(2)
recognized by the Internal Revenue Service as an organization described in § 501(c)(3) of the Internal Revenue Code; and
(3)
organized and operated for the primary purpose of developing, owning, or operating safe and sanitary affordable housing.
(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.
(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.
(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)
an execution or other judicial process may not issue against the real property; and
(iii)
a judgment against an authority is not a charge or lien on the authority’s real property.
(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
(ii)
a pledge or lien given by an authority 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.
Md. Code Ann., Hous. & Cmty. Dev. § 12-105 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–105LinkCopy Citation
(a)
An authority of a municipal corporation or Baltimore City may:
(1)
operate within its territorial boundaries; and
(2)
without regard to location:
(i)
administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants;
(ii)
own or manage housing projects in operation before January 1, 1990; and
(iii)
develop, own, or operate a housing project at the request of and within the territorial boundaries of another political subdivision.
(b)
(1)
Anywhere in its county an authority of a county may:
(i)
administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants; and
(ii)
own or manage housing projects in operation before:
(1)
January 1, 1990, if the authority is of Baltimore City; or
(2)
January 1, 1991, if the authority is of another county.
(2)
Subject to paragraph (3) of this subsection, an authority of a county may conduct its other operations within the county.
(3)
An authority of a county other than Baltimore City may not conduct its other operations within a municipal corporation unless the governing body of the municipal corporation consents by resolution to its inclusion in the authority’s area of operation.
(c)
An authority created under § 12–208 of this title may conduct its operations in the area prescribed under its articles of organization.
Md. Code Ann., Hous. & Cmty. Dev. § 12-106 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–106LinkCopy Citation
(a)
An individual or family qualifies as a person of eligible income:
(1)
for projects that are State or federally funded, if the individual or family meets the income requirements of the State or federal program involved; or
(2)
for other projects, if the individual or family, by a determination under subsection (b) of this section, lacks sufficient income or assets without financial assistance to purchase or rent decent, safe, and sanitary housing without overcrowding.
(b)
(1)
The chief elected official or the chief elected official’s designee, who may be the executive director of an authority or the board of commissioners of the authority, shall determine whether an individual or family qualifies as a person of eligible income under subsection (a)(2) of this section.
(2)
Determination of qualifying income levels may vary for the elderly, individuals with disabilities, other persons with special needs, particular projects or programs, or particular parts of the political subdivision.
Md. Code Ann., Hous. & Cmty. Dev. § 12-107 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 1. Definitions; General Provisions
§ 12–107LinkCopy Citation
A provision applicable to a particular political subdivision or its authority in another title of this Division II:
(1)
takes precedence over a conflicting provision of this title; and
(2)
may not be used to interpret how this title applies to another political subdivision or its authority.
Subtitle 2. Establishment and Organization of Authorities
Md. Code Ann., Hous. & Cmty. Dev. § 12-201 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–201LinkCopy Citation
Except as provided in § 12–208 of this subtitle, in each political subdivision, there is a public body corporate and politic known as the “housing authority” of the political subdivision or as otherwise designated in the articles of organization.
Md. Code Ann., Hous. & Cmty. Dev. § 12-202 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–202LinkCopy Citation
Sections 12-203 through 12-206 of this subtitle are only enabling legislation allowing a political subdivision to authorize an authority to operate in the political subdivision.
Md. Code Ann., Hous. & Cmty. Dev. § 12-203 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–203LinkCopy Citation
A code authority may not do business or exercise its powers unless:
(1)
its articles of organization have been recommended in writing by the chief elected official, adopted by a resolution or ordinance of the legislative body, and filed with the Secretary of State; and
(2)
the Secretary of State has issued a certificate of organization to the code authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-204 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–204LinkCopy Citation
(a)
Except as provided in § 12–208 of this subtitle, each pre–existing authority continues to exist.
(b)
(1)
Except as provided in paragraph (3) of this subsection, a pre-existing authority governed only by this title:
(i)
may exercise the powers granted by Subtitles 6 and 7 and §§ 12-501, 12-502, 12-504, and 12-506(a) of this title; and
(ii)
if it adopts articles of organization, may exercise the powers listed in § 12-503 of this title that are authorized by the articles of organization in accordance with § 12-205(b)(1)(vi) of this subtitle; and
(iii)
is entitled to the exemptions from State law provided in § 12-505 of this title.
(2)
Except as provided in paragraph (3) of this subsection, a pre-existing authority governed by this title and by a title in this Division II that is applicable in a particular political subdivision:
(i)
may exercise the powers granted under the title that applies to the particular political subdivision;
(ii)
may exercise the powers granted by Subtitles 6 and 7 and §§ 12-501, 12-502, 12-504, and 12-506(a) of this title as modified by the title that applies to the particular political subdivision;
(iii)
if it adopts articles of organization, may exercise the powers listed in § 12-503 of this title that are authorized by the articles of organization in accordance with § 12-205(b)(1)(vi) of this subtitle; and
(iv)
is entitled to the exemptions from State law provided in § 12-505 of this title.
(3)
If articles of organization are adopted, the powers set forth in §§ 12-501 through 12-506(a) of this title may be limited to the extent allowed under §§ 12-205(b)(2) and 12-207 of this subtitle.
Md. Code Ann., Hous. & Cmty. Dev. § 12-205 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–205LinkCopy Citation
(a)
Articles of organization, if they are not inconsistent with this title, may be adopted for an authority governed by another title in this Division II.
(b)
(1)
Articles of organization shall state:
(i)
the name of the authority, which may be “housing authority of (here insert name of political subdivision)” or some other name that includes the name of the political subdivision;
(ii)
that a need exists for the authority to function in the political subdivision;
(iii)
whether appointments of commissioners of the authority by the chief elected official require the prior approval of the legislative body;
(iv)
whether the board of commissioners of the authority will consist of five, seven, or nine commissioners;
(v)
whether commissioners of the authority will have 3- or 5-year terms;
(vi)
whether the authority may exercise any power set forth in § 12-503 of this title, and, if so, any limitations on those powers; and
(vii)
any limitation on or elimination of any power granted to the authority under any title of this Division II.
(2)
The powers of the authority:
(i)
shall be sufficient for it to comply with each existing agreement between it and a State or federal governmental unit and with federal law; and
(ii)
may not be limited in a way that is inconsistent with such an agreement or with federal law.
(3)
The articles of organization of an authority shall designate an official of the political subdivision to be the custodian of records of the political subdivision for the purposes of this Division II.
(c)
(1)
Subject to paragraph (2) of this subsection, the articles of organization may contain specific terms governing the operation of the authority and its housing projects, including financial reporting, budgetary, and personnel requirements.
(2)
The specific terms may not add powers to the authority other than those allowed under subsection (b)(1)(vi) of this section and may not be inconsistent with:
(i)
any existing agreement between the authority and any State or federal governmental unit;
(ii)
federal law; or
(iii)
this Division II or other State law.
(d)
Articles of organization may not require the authority directly or indirectly to pay any of its reserves or other money to the political subdivision.
(e)
The custodian of records shall file with the Secretary of State a certified copy of the written recommendation of the chief elected official and the resolution or ordinance adopting the articles of organization.
(f)
(1)
If the Secretary of State finds that the requirements of § 12-203 of this subtitle have been met, the Secretary of State shall endorse the articles of organization “approved” and issue to the authority a certificate of approval attached to them and a certificate of organization.
(2)
On issuance of the certificate of approval, the articles of organization as filed are considered to have been adopted.
(g)
The Secretary of State:
(1)
shall record and maintain all endorsed articles of organization and amendments in records kept for that purpose; and
(2)
on request, shall issue certified copies of the endorsed articles of organization and amendments.
(h)
(1)
In a proceeding involving or relating to a contract of an authority, the authority is considered to be authorized to do business and exercise its powers if the Secretary of State has issued a certificate of organization.
(2)
A copy of the certificate of organization is admissible in evidence.
Md. Code Ann., Hous. & Cmty. Dev. § 12-206 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–206LinkCopy Citation
(a)
(1)
A pre–existing authority may be governed by articles of organization if:
(i)
the pre–existing authority meets the requirements of subsection (b) or (c) of this section;
(ii)
the custodian of records files with the Secretary of State the documents required under subsection (d) of this section; and
(iii)
the Secretary of State issues a certificate of approval in accordance with subsection (e) of this section.
(2)
Articles of organization shall comply with § 12–205(b) through (d) of this subtitle.
(b)
Before a pre–existing authority may adopt articles of organization under this subsection, the articles of organization must be:
(1)
recommended in writing by the chief elected official;
(2)
approved by an extraordinary majority of the board of commissioners of the authority; and
(3)
adopted by an extraordinary majority of the legislative body.
(c)
Before a pre–existing authority may adopt articles of organization under this subsection:
(1)
the custodian of records shall provide documentation to the Secretary of State that within 5 years before the date the documentation is submitted:
(i)
the political subdivision, within each of any 3 fiscal years within the 5–year period, has provided financial assistance to the authority from local tax revenues or bond sale proceeds in an amount equal to the greater of:
(1)
the product of $1 times the number of residents of the political subdivision as published annually by the Maryland Department of Health or as otherwise available; and
(2)
the product of $100 times the total number of housing units owned or managed by the authority; and
(ii)
the authority, at the request and with the financial support of the political subdivision, is operating one or more housing projects for which the federal government provided no more than half of the development and operating costs; and
(2)
the articles of organization must be:
(i)
recommended in writing by the chief elected official;
(ii)
approved by a resolution of the board of commissioners of the authority; and
(iii)
adopted by a resolution or ordinance of the legislative body.
(d)
The custodian of records shall file with the Secretary of State:
(1)
a copy of the documentation described in subsection (c)(1) of this section, if applicable;
(2)
the articles of organization and the applicable recommending, approving, and adopting instruments described in subsection (b) or (c)(2) of this section;
(3)
certification by the custodian of records that the articles of organization have been recommended and adopted by the political subdivision in accordance with the applicable requirements of subsection (b)(1) and (3) or subsection (c)(2)(i) and (iii) of this section; and
(4)
certification by the secretary of the pre–existing authority that the articles of organization have been approved by the board of commissioners of the authority in accordance with the applicable requirements of subsection (b)(2) or subsection (c)(2)(ii) of this section.
(e)
(1)
If the Secretary of State finds that the requirements of subsection (b) or (c) and subsection (d) of this section have been satisfied, the Secretary of State shall endorse the articles as “approved” and issue a certificate of approval attached to the endorsed articles.
(2)
When the certificate of approval is issued, the articles of organization as filed are considered to have been adopted.
Md. Code Ann., Hous. & Cmty. Dev. § 12-207 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–207LinkCopy Citation
(a)
Articles of amendment or restatement of articles of organization of an authority must be:
(1)
recommended in writing by the chief elected official;
(2)
if required by subsection (d) of this section, approved by a resolution of the board of commissioners of the authority; and
(3)
adopted by a resolution or ordinance of the legislative body.
(b)
An amendment or restatement of articles of organization shall comply with § 12-205(b) through (d) of this subtitle.
(c)
A political subdivision may not amend the articles of organization to change the number of commissioners of an authority or the length of terms of commissioners stated in the initial articles of organization.
(d)
A political subdivision may not amend the articles of organization of a pre-existing authority without the approval of the board of commissioners of the pre-existing authority.
(e)
The custodian of records shall file with the Secretary of State:
(1)
a copy of the articles of amendment or restatement, the recommending and adopting instruments required by subsection (a)(1) and (3) of this section, and any approving instrument required by subsection (a)(2) of this section;
(2)
the certification of the custodian of records that the articles of amendment or restatement have been recommended and adopted by the political subdivision in accordance with the requirements of subsection (a)(1) and (3) of this section; and
(3)
if required by subsection (a)(2) of this section, the certification of the secretary of the authority that the articles of amendment or restatement have been approved by the board of commissioners of the authority in accordance with the requirements of subsection (a)(2) of this section.
(f)
(1)
If the Secretary of State finds that the requirements of subsections (a) and (e) of this section have been met, the Secretary of State shall endorse the articles of amendment or restatement as “approved” and issue an attached certificate of approval.
(2)
On issuance of the certificate of approval, the articles of amendment or restatement as filed are considered to have been adopted.
Md. Code Ann., Hous. & Cmty. Dev. § 12-208 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 2. Establishment and Organization of Authorities
§ 12–208LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Consolidation” means the dissolution of separate existing authorities and the simultaneous creation of a new authority.
(3)
“Merger” means the absorption of one existing authority by another existing authority in which the one authority dissolves and the other authority continues to exist.
(b)
The Housing Commission of Talbot County and the St. Michaels Housing Authority may unite by consolidation or merger to form one authority.
(c)
(1)
The unification of the Housing Commission of Talbot County and the St. Michaels Housing Authority shall be initiated by the passage of a proposal of unification in substantially the same form by the legislative body of the Town of Easton and the legislative body of the Town of St. Michaels.
(2)
The proposal of unification shall:
(i)
include a description of the boundaries of the area of operation for the proposed authority; and
(ii)
be approved by each municipal corporation in the same manner provided for the adoption of a resolution or ordinance in the charter or bylaws of the municipal corporation that is considering the proposal of unification.
(d)
(1)
After both municipal corporations approve a proposal of unification, each municipal corporation shall appoint an equal number of representatives, which may not be less than three nor more than five, to a commission charged with drafting articles of organization for the proposed authority.
(2)
The members of the commission shall:
(i)
adopt rules and elect officers to govern their meetings and expedite the drafting of the articles of organization; and
(ii)
complete a draft of the articles of organization no later than 6 months after the approval of the proposals of unification.
(3)
In the draft articles of organization or in a separate document, the commission shall:
(i)
describe the boundaries of the area of operation for the proposed authority; and
(ii)
provide for:
(1)
the disposition of any debts, bonds, and other obligations of the Housing Commission of Talbot County and any debts, bonds, and other obligations of the St. Michaels Housing Authority;
(2)
the transfer to the proposed authority of any property and other assets of the Housing Commission of Talbot County and any property and other assets of the St. Michaels Housing Authority; and
(3)
the designation of the chief elected official, custodian of records, and legislative body of which municipal corporation that shall govern the operations of the proposed authority.
(e)
(1)
The commission created under subsection (d) of this section shall submit the draft articles of organization to the legislative body of each municipal corporation for adoption or rejection.
(2)
The legislative body of each municipal corporation must adopt or reject the draft articles of organization as a whole.
(3)
No amendment or change may be made to the draft articles of organization unless the legislative body of each municipal corporation concurs in the amendment or change.
(4)
If the legislative body of each municipal corporation adopts the draft articles of organization, the appropriate custodian of records shall file the articles of organization with the Secretary of State.
(f)
(1)
If the Secretary of State finds that the appropriate requirements of §§ 12–205 and 12–206 of this subtitle have been satisfied, the Secretary of State shall endorse the articles as “approved” and issue a certificate of approval attached to the endorsed articles of organization.
(2)
When the certificate of approval is issued, the articles of organization as filed are considered to have been adopted.
(3)
An authority created under this section may not do business or exercise its powers unless the Secretary of State has issued a certificate of approval.
Subtitle 3. Commissioners
Md. Code Ann., Hous. & Cmty. Dev. § 12-301 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–301LinkCopy Citation
The required number of commissioners of an authority:
(1)
for an authority not governed by articles of organization, is five; and
(2)
for an authority governed by articles of organization, is the number set forth in the articles of organization as required by § 12-205(b)(1)(iv) of this title.
Md. Code Ann., Hous. & Cmty. Dev. § 12-302 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–302LinkCopy Citation
(a)
The chief elected official shall appoint the required number of commissioners of the authority.
(b)
(1)
A certificate of the appointment of a commissioner of an authority shall be filed with the custodian of records.
(2)
The certificate is conclusive evidence of the appointment.
Md. Code Ann., Hous. & Cmty. Dev. § 12-303 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–303LinkCopy Citation
(a)
A commissioner of an authority may not be an employee of the authority.
(b)
(1)
If an authority is governed by articles of organization, only one commissioner of the authority may be an employee of the political subdivision.
(2)
Otherwise, a commissioner of an authority may not be an employee of the political subdivision.
(c)
A commissioner of an authority may not be an elected official of the political subdivision.
(d)
This subtitle does not bar a tenant of a housing project or of property included or planned to be included in a housing project from being a commissioner of an authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-304 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–304LinkCopy Citation
(a)
(1)
This subsection applies to authorities for which the Secretary of State approves articles of organization on or after July 1, 1990.
(2)
All initial appointments of commissioners of an authority after the Secretary of State approves the articles of organization shall have the same effective date.
(3)
The effective date shall be set forth along with the term of appointment on each initial certificate of appointment required by § 12-302(b) of this subtitle.
(4)
For authorities whose articles of organization say that commissioners of the authority have 5-year terms, those who are initially appointed shall have staggered terms of:
(i)
1, 2, 3, 4, and 5 years for five-member authorities;
(ii)
1, 2, 3, 3, 4, 5, and 5 years for seven-member authorities; and
(iii)
1, 2, 2, 3, 3, 4, 4, 5, and 5 years for nine-member authorities.
(5)
For authorities whose articles of organization say that commissioners of the authority have 3-year terms, those who are initially appointed shall have staggered terms of:
(i)
1, 2, 2, 3, and 3 years for five-member authorities;
(ii)
1, 1, 2, 2, 3, 3, and 3 years for seven-member authorities; and
(iii)
1, 1, 1, 2, 2, 2, 3, 3, and 3 years for nine-member authorities.
(6)
Notwithstanding § 12-311 of this subtitle, a commissioner of an authority who is an employee of the political subdivision serves at the pleasure of the chief elected official.
(b)
(1)
The term of a commissioner of an authority who was in office before the adoption of articles of organization ends on the effective date of the initial appointments under the articles of organization.
(2)
Except as provided in paragraphs (3) and (4) of this subsection, before the effective date of the initial appointments under the articles of organization, the chief elected official shall appoint each commissioner of an authority who was in office before the adoption of the articles of organization to a term as a commissioner of the authority under the articles of organization.
(3)
A commissioner of an authority who has delivered to the chief elected official written notice declining appointment may not be appointed under this subsection.
(4)
If the number of commissioners of an authority is reduced by the articles of organization so that there are not enough places for all those who did not decline appointment, the chief elected official shall choose which ones to appoint, and when they are appointed and qualify they are the successors of all those who were in office before the adoption of the articles of organization.
(5)
Notwithstanding § 12-205(b)(1)(iii) of this title, any other provision of this Division II, and the articles of organization, an appointment under this subsection does not require approval of the legislative body.
(c)
If an authority is not governed by articles of organization:
(1)
commissioners of the authority who are initially appointed shall have terms of 1, 2, 3, 4, and 5 years; and
(2)
each term thereafter shall be 5 years.
(d)
(1)
At the end of a term, a commissioner of an authority serves until a successor is appointed and qualifies.
(2)
A commissioner of an authority who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
Md. Code Ann., Hous. & Cmty. Dev. § 12-305 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–305LinkCopy Citation
(a)
(1)
The chief elected official shall choose as chair a commissioner who is appointed when the authority is first activated.
(2)
When the office of the chair becomes vacant thereafter, the authority shall choose a chair from among its commissioners.
(b)
An authority shall choose a vice chair from among its commissioners.
Md. Code Ann., Hous. & Cmty. Dev. § 12-306 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–306LinkCopy Citation
(a)
The powers of each authority are vested in the commissioners.
(b)
A quorum is:
(1)
three commissioners of a five-member authority;
(2)
four commissioners of a seven-member authority; or
(3)
five commissioners of a nine-member authority.
(c)
An authority may take action on a vote of a majority of the commissioners present at a meeting at which there is a quorum, unless a larger number is required by law or the bylaws of the authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-307 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–307LinkCopy Citation
With the approval of the legislative body, a commissioner of an authority may receive reasonable compensation for the commissioner’s services and is entitled to the necessary expenses, including traveling expenses, incurred in the discharge of the commissioner’s duties.
Md. Code Ann., Hous. & Cmty. Dev. § 12-308 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–308LinkCopy Citation
(a)
(1)
An authority may employ:
(i)
a secretary, who shall serve as executive director; and
(ii)
technical experts and other officers, agents, and employees, permanent and temporary.
(2)
An authority shall determine the qualifications, duties, and compensation of its employees.
(b)
For legal services, an authority may use the chief law officer of the political subdivision or may employ its own counsel and legal staff.
(c)
An authority may delegate to one or more of its agents or employees the powers or duties it considers proper.
Md. Code Ann., Hous. & Cmty. Dev. § 12-309 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–309LinkCopy Citation
(a)
Each commissioner, the executive director, and each employee of an authority is:
(1)
a local official for the purposes of Title 5, Subtitle 8, Part II of the General Provisions Article and subject to local ethics laws; and
(2)
an employee of a local government for the purposes of Title 5, Subtitle 3 of the Courts and Judicial Proceedings Article and entitled to the protections of the Local Government Tort Claims Act.
(b)
A commissioner of an authority is not liable for a statement made or action taken in good faith in the exercise or performance of a power or duty of the commissioner.
Md. Code Ann., Hous. & Cmty. Dev. § 12-310 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–310LinkCopy Citation
(a)
Except for bonds purchased before appointment and interests in mutual funds, a commissioner or employee of an authority may not acquire any direct or indirect interest in a housing project or in property included or planned to be included in a housing project.
(b)
A commissioner or employee of an authority may not have any direct or indirect interest in a contract or proposed contract for materials or services to be furnished or used in connection with a housing project.
(c)
(1)
A commissioner or employee of an authority who owns or controls a direct or indirect interest in property included or planned to be included in a housing project shall immediately disclose the interest in writing to the authority.
(2)
The disclosure shall be entered in the minutes of the authority.
(3)
Failure to disclose the interest is misconduct in office.
Md. Code Ann., Hous. & Cmty. Dev. § 12-311 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–311LinkCopy Citation
(a)
A commissioner of an authority may be removed by the chief elected official in accordance with this section for neglect of duty or misconduct in office, including violations of local ethics laws and misconduct identified in § 12-310 of this subtitle.
(b)
(1)
The chief elected official shall file charges with the office of the custodian of records and promptly deliver a copy of the charges to the commissioner and to the secretary of the authority.
(2)
Written notice of the date, time, and place of a hearing shall be given to the commissioner at least 14 days before the hearing.
(3)
Unless the commissioner has resigned from office, the chief elected official shall hold the hearing, at which the commissioner shall have an opportunity to be represented by counsel and to be heard in person.
(4)
On completion of the hearing, the chief elected official shall make written findings.
(c)
If a commissioner of an authority is removed, a record of the proceedings and the charges and findings shall be filed in the office of the custodian of records.
(d)
(1)
On the filing of charges under subsection (b)(1) of this section with the office of the custodian of records, the chief elected official may temporarily suspend a commissioner of an authority.
(2)
The chief elected official shall immediately reinstate the commissioner in office if the chief elected official finds the charges have not been substantiated.
(3)
The commissioner shall be reinstated automatically, unless a hearing on removal has been held and a decision made by the chief elected official within 45 days after the filing of charges.
(4)
The chief elected official may not temporarily appoint a person to perform the duties of a suspended member.
Md. Code Ann., Hous. & Cmty. Dev. § 12-312 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 3. Commissioners
§ 12–312LinkCopy Citation
(a)
(1)
When a code authority becomes authorized to do business and exercise its powers, the political subdivision:
(i)
immediately shall estimate the amount of money necessary for the administrative expenses and overhead of the code authority during the first year thereafter; and
(ii)
shall appropriate that amount to the code authority out of money in the political subdivision’s treasury not appropriated to some other purpose.
(2)
The political subdivision shall pay the money appropriated to the code authority as a donation.
(b)
(1)
Subject to paragraph (2) of this subsection, the political subdivision shall appropriate to the code authority money needed to comply with any requirement imposed on it by its articles of organization, if enough money for the code authority to comply is not available from State, federal, or other sources.
(2)
A political subdivision is not required to provide any money for a code authority to satisfy a judgment, liability, debt, or other financial obligation to a third party.
(c)
(1)
A political subdivision located wholly or partly in the area of operation of a code authority may lend, donate, or agree to lend or donate money to the code authority.
(2)
The code authority, when it has the money available, shall reimburse the political subdivision for all loans made to it by the political subdivision.
Subtitle 4. Duties of Authorities
Md. Code Ann., Hous. & Cmty. Dev. § 12-401 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 4. Duties of Authorities
§ 12–401LinkCopy Citation
(a)
It is State policy that an authority:
(1)
shall manage and operate its housing projects efficiently to enable it to fix the rent for housing units at the lowest rates consistent with its providing decent, safe, and sanitary housing units and meeting the financial needs under subsection (b) of this section; but
(2)
may not operate for profit or as a source of revenue to the political subdivision.
(b)
An authority shall fix the rents for housing units in its housing projects at rates no higher than it finds necessary to produce revenues that with all other available money, revenue, income, and receipts will be sufficient to:
(1)
pay the principal and interest on bonds of the authority, as they become due;
(2)
pay and provide for maintaining and operating the housing projects, including the cost of insurance and the administrative expenses of the authority;
(3)
(i)
create during a period of at least 6 years right after it issues any bonds, a reserve that can meet the largest principal and interest payments that will be due on the bonds in any year thereafter; and
(ii)
maintain the reserve;
(4)
create reserves for operations, emergencies, renovations, replacements, and the repayment of debt; and
(5)
create funds necessary or desirable to:
(i)
subsidize rents;
(ii)
develop or operate housing projects; or
(iii)
operate or provide services located in housing projects or that otherwise benefit their residents.
Md. Code Ann., Hous. & Cmty. Dev. § 12-402 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 4. Duties of Authorities
§ 12–402LinkCopy Citation
Except for rental units that may be occupied by others under § 12-503(a)(4) of this title, an authority:
(1)
shall rent the housing units in a housing project only:
(i)
to persons of eligible income, except for a reasonable number of housing units that may be occupied by management and security personnel; and
(ii)
at rentals within the financial reach of persons of eligible income;
(2)
may not accept a person as a tenant in a housing project if the aggregate annual income of the person or persons who would occupy the housing unit exceeds the maximum income level established for persons of eligible income; and
(3)
shall prohibit subletting by tenants.
Md. Code Ann., Hous. & Cmty. Dev. § 12-403 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 4. Duties of Authorities
§ 12–403LinkCopy Citation
Except as provided in § 12-506(b)(9) of this title, all housing projects of an authority are subject to the planning, zoning, sanitary, health, fire, housing, subdivision, and building laws, ordinances, codes, rules, and regulations that apply where the housing project is located.
Md. Code Ann., Hous. & Cmty. Dev. § 12-404 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 4. Duties of Authorities
§ 12–404LinkCopy Citation
(a)
At least annually, an authority shall file with the custodian of records a financial report of its activities for the preceding year and recommend any further action by the political subdivision that it considers necessary or useful to carry out the purpose of this Division II.
(b)
The political subdivision may require an authority to provide it with an annual operating budget and program reports that the political subdivision designates.
(c)
The political subdivision or its designee may at any time:
(1)
examine the books and records of the authority; or
(2)
conduct an audit of the authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-405 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 4. Duties of Authorities
§ 12–405LinkCopy Citation
This subtitle does not limit the power of an authority to vest in an obligee the right, if the authority defaults, to:
(1)
take possession of a housing project;
(2)
have a receiver of a housing project appointed; or
(3)
acquire title to a housing project, through foreclosure or otherwise, free from all restrictions of this subtitle.
Subtitle 5. Powers and Limitations on Powers
Md. Code Ann., Hous. & Cmty. Dev. § 12-501 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–501LinkCopy Citation
An authority is a public body corporate and politic that:
(1)
exercises public and essential governmental functions; and
(2)
has all the powers necessary or convenient to carry out the purposes of this Division II.
Md. Code Ann., Hous. & Cmty. Dev. § 12-502 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–502LinkCopy Citation
(a)
In addition to any powers set forth elsewhere, an authority has the powers set forth in this section.
(b)
An authority may:
(1)
sue and be sued;
(2)
have and alter a seal at pleasure;
(3)
have perpetual existence;
(4)
make contracts and other instruments necessary or convenient to the exercise of the authority’s powers;
(5)
make, amend, and repeal bylaws, rules, and regulations not inconsistent with this Division II; and
(6)
carry out the purposes of the authority.
(c)
An authority may also:
(1)
prepare, carry out, acquire, own, lease, and operate housing projects in its area of operation;
(2)
provide for the construction, reconstruction, improvement, alteration, or repair of a housing project;
(3)
provide directly or arrange or contract for a person or governmental unit to furnish facilities or services, including drug rehabilitation, elderly or child day care, and other social services for or in connection with:
(i)
a housing project; or
(ii)
the residents of a housing project; and
(4)
notwithstanding any other law, require in a contract in connection with a housing project that the contractor and any subcontractors comply with:
(i)
requirements about minimum wages and maximum hours of labor; and
(ii)
any conditions that the State or federal government attaches to financial aid for the housing project.
(d)
An authority may also:
(1)
make rent subsidy payments to or on behalf of persons of eligible income;
(2)
rent out houses, accommodations, lands, buildings, structures, or facilities in a housing project;
(3)
subject to the limitations contained in this Division II, establish and revise the rents or charges;
(4)
own, hold, and improve real and personal property;
(5)
purchase, lease, obtain options on, or acquire by gift, grant, bequest, devise, or otherwise any real or personal property;
(6)
sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property;
(7)
insure or provide for the insurance of real or personal property or operations of the authority against any risks or hazards; and
(8)
get from the State or federal government insurance or guarantees of payment of debts secured by mortgages on property in any of its housing projects, whether or not the debts are incurred by the authority.
(e)
(1)
When an authority has money that is held in a reserve or sinking fund or is not needed for immediate disbursement, the authority may invest the money in property or securities in which savings banks may invest.
(2)
An authority may purchase its bonds at not more than their principal amount and accrued interest, all bonds so purchased to be canceled.
(f)
An authority may also:
(1)
investigate living and housing conditions in its area of operation and ways to improve those conditions;
(2)
determine where:
(i)
economically depressed or physically deteriorated areas exist; or
(ii)
there is a shortage of decent, safe, and sanitary housing for persons of eligible income;
(3)
make studies and recommendations on clearing, replanning, and reconstructing economically depressed or physically deteriorated areas and providing housing for persons of eligible income;
(4)
cooperate with the State or a political subdivision to solve the problems set forth in this subsection; and
(5)
conduct research, studies, and experiments on housing issues.
(g)
Acting through one or more of its commissioners or designees, an authority may also:
(1)
examine, investigate, hear testimony, and take evidence at public or private hearings on any matter material to its duties;
(2)
make findings and recommendations about any property where conditions pose a danger to the public health, morals, safety, or welfare; and
(3)
make those findings and recommendations available to appropriate governmental units, including those that in its area of operation have the duty to:
(i)
abate or require the correction of nuisances or like conditions; or
(ii)
demolish unsafe or unsanitary structures.
(h)
An authority may also establish and control nonprofit entities, including corporations, partnerships, and limited liability companies, that may own, operate, and take steps necessary or convenient to develop or otherwise undertake housing projects in the authority’s area of operation.
(i)
(1)
In the manner provided under Title 12 of the Real Property Article or any other applicable statutory law, an authority may also acquire by eminent domain real property that the authority considers necessary for its purposes under this Division II, if:
(i)
the authority adopts a resolution declaring that the acquisition of the real property is necessary for those purposes; and
(ii)
the legislative body and the chief elected official approve.
(2)
(i)
Subject to subparagraph (ii) of this paragraph, property devoted to a public use may similarly be acquired by eminent domain.
(ii)
Real property that belongs to the State or a political subdivision may not be acquired without the consent of the State or the political subdivision.
(j)
An authority may also:
(1)
borrow money and accept grants and other financial assistance from the political subdivision, the State, and the federal government and accept grants from nongovernmental sources for a housing project in its area of operation;
(2)
take over, lease, or manage a housing project or undertaking constructed, financed, or owned by the political subdivision, the State, or the federal government; and
(3)
comply with conditions and enter into mortgages, trust indentures, leases, and agreements as may be necessary or desirable.
Md. Code Ann., Hous. & Cmty. Dev. § 12-503 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–503LinkCopy Citation
(a)
If authorized under its articles of organization, an authority within its area of operation may:
(1)
make mortgage loans and mortgage subsidy payments to or for the benefit of persons of eligible income;
(2)
make construction loans and long-term mortgage loans to any person to produce housing for persons of eligible income;
(3)
purchase mortgages secured by housing for persons of eligible income;
(4)
subject to any applicable agreement, allow a number of residents of a housing project or a part of one that the authority finances to have incomes above the levels for persons of eligible income, if the number does not exceed the percentage allowed in the articles of organization, which may not exceed 80%;
(5)
acquire, develop, construct, rehabilitate, own, operate, and lease, as lessor or lessee, commercial facilities on the site of a housing project that make an economic or social contribution to the housing project, if:
(i)
the commercial facilities are intended substantially for the use and benefit of the tenants of the housing project; and
(ii)
the intended use by other persons is incidental;
(6)
with the approval of the legislative body and the chief elected official, acquire, develop, construct, rehabilitate, own, operate, and lease, as lessor or lessee, commercial facilities that:
(i)
are adjacent to the site of a housing project;
(ii)
are not intended substantially for the use and benefit of the tenants of the housing project; or
(iii)
are intended for use more than incidentally by persons other than the tenants of the housing project; and
(7)
act and invest as a general partner and as a limited partner in housing projects.
(b)
This section does not limit the powers granted to authorities by other titles in this Division II.
Md. Code Ann., Hous. & Cmty. Dev. § 12-504 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–504LinkCopy Citation
(a)
An authority may exercise the powers that are granted by this Division II, even if economic competition is displaced or limited as a result.
(b)
This section does not preempt or supersede the regulatory authority of a State unit under public general law.
Md. Code Ann., Hous. & Cmty. Dev. § 12-505 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–505LinkCopy Citation
Unless the General Assembly specifically states otherwise, State law on the financing, acquisition, operation, or disposition of property by other State public bodies does not apply to an authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-506 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–506LinkCopy Citation
(a)
Two or more authorities may join or cooperate with one another in the exercise of any power under this subtitle to finance, plan, undertake, construct, or operate a housing project or housing projects in the area of operation of any one or more of them.
(b)
To aid and cooperate in the planning, undertaking, construction, or operation of housing projects located wholly or partly in the area in which it may act, a State public body, with or without consideration and on terms that it determines, may:
(1)
dedicate, sell, convey, or lease any of the State public body’s property to an authority or the federal government;
(2)
cause parks, playgrounds, recreational, community, water, sewer, or drainage facilities, or any other works that the State public body otherwise may undertake, to be furnished adjacent to or in connection with housing projects;
(3)
furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other places that the State public body otherwise may undertake;
(4)
make, with an authority, the State, or the federal government, agreements that:
(i)
deal with action to be taken by the State public body under a power granted by this Division II; and
(ii)
may last for any length of time, notwithstanding any other law;
(5)
do what is necessary or convenient to aid and cooperate in the planning, financing, undertaking, construction, or operation of the housing projects;
(6)
grant easements, licenses, or any other related rights to an authority or the federal government;
(7)
cause services to be furnished to the authority of the character that the State public body otherwise may furnish;
(8)
make agreements about the exercise by the State public body of its powers relating to repairing, closing, or demolishing unsafe, unsanitary, or unfit housing;
(9)
plan, replan, zone, or rezone any part of the State public body, make exceptions to its sanitary, building, housing, fire, health, subdivision, or other similar laws, rules, regulations, and ordinances or make any changes to its map or master plan; and
(10)
agree with an authority that the authority pay the State public body an amount, if any, in lieu of taxes for any year or period of years.
(c)
Powers conferred under this section on State public bodies are in addition to and do not supplant any other power conferred by law.
(d)
(1)
The State public body may incur the entire expense of any public improvement that the State public body makes under this section.
(2)
Notwithstanding any other law, a State public body may make a sale, conveyance, lease, or agreement provided for in this section without appraisal, public notice, advertisement, or public bidding.
Md. Code Ann., Hous. & Cmty. Dev. § 12-507 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 5. Powers and Limitations on Powers
§ 12–507LinkCopy Citation
A State public body may not require changes to be made in a housing project or the manner of its construction or take any other action relating to the construction if the authority:
(1)
has acquired or taken over the housing project from the federal government; and
(2)
has found and declared by resolution that the housing project was constructed in a way that will promote the public interest and afford necessary safety, sanitation, and other protection.
Subtitle 6. Housing for Military Personnel
Md. Code Ann., Hous. & Cmty. Dev. § 12-601 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–601LinkCopy Citation
(a)
An authority may develop and administer projects to make safe and sanitary housing available for military personnel.
(b)
(1)
An authority has all the rights, powers, privileges, and immunities under this subtitle that it has under any law relating to the ownership, development, or administration of housing projects for persons of eligible income.
(2)
Except as otherwise provided in this subtitle, a project is not subject to the limitations under §§ 12-401 and 12-402 of this title, or any other limitation on the amount of rentals or the eligibility of tenants, if an authority, or another authority cooperating with it, administers the project under this subtitle:
(i)
with financial aid from the federal government; or
(ii)
as agent for the federal government.
(3)
An authority may pay the amount that it finds necessary or desirable for any services, facilities, works, privileges, or improvements furnished for or in connection with housing for military personnel.
Md. Code Ann., Hous. & Cmty. Dev. § 12-602 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–602LinkCopy Citation
An authority may:
(1)
exercise its powers to cooperate with, or act as agent for, the federal government in the development or administration of projects by the federal government to make safe and sanitary housing available for military personnel; and
(2)
develop or administer such a project for the federal government.
Md. Code Ann., Hous. & Cmty. Dev. § 12-603 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–603LinkCopy Citation
A State public body has the same rights and powers to cooperate with authorities in the development or administration of projects to make safe and sanitary housing available for military personnel that the State public body has under this Division II to assist in the development or administration of housing projects for persons of eligible income.
Md. Code Ann., Hous. & Cmty. Dev. § 12-604 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–604LinkCopy Citation
Bonds issued by an authority for a project developed or administered under this subtitle are legal investments to the same extent and for the same bodies and officers as bonds issued under any other section of this Division II to develop a housing project for persons of eligible income.
Md. Code Ann., Hous. & Cmty. Dev. § 12-605 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–605LinkCopy Citation
(a)
This subtitle is an independent authorization for an authority to:
(1)
develop or administer projects to make safe and sanitary housing available for military personnel as provided in this Division II; and
(2)
cooperate with, or act as agent for, the federal government in the development or administration of similar projects by the federal government.
(b)
Except for laws relating to land acquisition, an authority acting under this subtitle is not subject to any limitation, restriction, or requirement of any other law that sets forth the procedure or action to develop or administer public works.
(c)
To develop speedily or administer projects for safe and sanitary housing for military personnel, an authority may do all that is necessary or desirable to:
(1)
work with or act as agent for the federal government;
(2)
get financial aid; and
(3)
carry out the purposes of this subtitle.
Md. Code Ann., Hous. & Cmty. Dev. § 12-606 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–606LinkCopy Citation
An authority may exercise its powers anywhere in the State as an agent or lessee of the federal government in the development, construction, operation, or management of a project undertaken by the federal government for housing military personnel.
Md. Code Ann., Hous. & Cmty. Dev. § 12-607 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 6. Housing for Military Personnel
§ 12–607LinkCopy Citation
(a)
The powers conferred under this subtitle are in addition to and do not supplant any other powers conferred by law.
(b)
This subtitle does not limit any other power of an authority.
Subtitle 7. Bonds
Md. Code Ann., Hous. & Cmty. Dev. § 12-701 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 7. Bonds
§ 12–701LinkCopy Citation
(a)
An authority may:
(1)
issue bonds for any of its corporate purposes;
(2)
issue refunding bonds to pay or retire its bonds; and
(3)
issue any kinds of bonds, including bonds on which the principal and interest are payable:
(i)
only from the income and revenues of the housing project financed with the proceeds of the bonds or with these proceeds and a grant from the State or federal government in aid of the housing project;
(ii)
only from the income and revenues of designated housing projects whether or not they were financed wholly or partly with the proceeds of the bonds; or
(iii)
from its revenues generally.
(b)
To secure any of its bonds, an authority may pledge any revenue or mortgage a housing project or other property of the authority.
Md. Code Ann., Hous. & Cmty. Dev. § 12-702 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 7. Bonds
§ 12–702LinkCopy Citation
(a)
Bonds of an authority are issued for an essential public and governmental purpose.
(b)
(1)
Neither a commissioner of an authority nor a person who executes the bond for an authority is personally liable on the bonds.
(2)
Neither the State nor a political subdivision is liable on the bonds.
(c)
The bonds of an authority:
(1)
are not a debt of the State or a political subdivision and shall state so on their face;
(2)
are payable only out of money or property of the authority; and
(3)
are not an indebtedness for purposes of a constitutional or statutory debt limitation or restriction.
(d)
Bonds issued under this Division II and their transfer and the income from them, including any profit made on their sale, shall be free from taxation of every kind by the State and by all political subdivisions.
(e)
Bonds issued by an authority are negotiable for the purposes of the Maryland Uniform Commercial Code, subject to the registration provisions of the Code.
(f)
(1)
Bonds issued by an authority are securities in which money may be invested by:
(i)
public officers and governmental units of the State or its political subdivisions;
(ii)
banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business;
(iii)
insurance companies, insurance associations, and others carrying on an insurance business;
(iv)
personal representatives, guardians, trustees, and other fiduciaries; and
(v)
all other persons.
(2)
Money that may be invested in the bonds includes capital that an investor owns or controls.
(g)
Bonds issued by an authority are securities that may be deposited with or received by any State or municipal officer, governmental unit, or political subdivision of the State for any purpose for which the deposit of bonds of the State is authorized by law.
(h)
(1)
This subsection:
(i)
is intended only for any public approval requirement of the Internal Revenue Code relating to the issuance of tax-exempt obligations; and
(ii)
does not determine whether an authority is a governmental unit of the State or of a political subdivision.
(2)
Subject to paragraph (1) of this subsection, an authority authorized under a resolution or ordinance of a political subdivision derives its authorization from the resolution or enactment rather than directly from State law.
Md. Code Ann., Hous. & Cmty. Dev. § 12-703 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 7. Bonds
§ 12–703LinkCopy Citation
(a)
(1)
Bonds of an authority shall be authorized by its resolution and may be issued in one or more series.
(2)
The resolution, the trust indenture, or the mortgage shall provide for the bonds:
(i)
a date or dates;
(ii)
the time or times of maturity;
(iii)
the interest rate or rates;
(iv)
the denomination or denominations;
(v)
whether they will be in coupon or registered form;
(vi)
the conversion or registration privileges;
(vii)
their rank or priority;
(viii)
the manner of execution;
(ix)
the medium of payment;
(x)
the place or places of payment; and
(xi)
the terms of redemption, with or without premium.
(3)
Bonds may be sold at public or private sale in the manner and on the terms that a resolution of the authority authorizes.
(b)
If a commissioner or officer of the authority whose signature is on a bond or coupon leaves office before the bond is delivered, the signature nevertheless is valid and sufficient, the same as if the commissioner or officer had remained in office until delivery.
(c)
A bond reciting in substance that it has been issued by an authority to aid in financing a housing project to provide housing for persons of eligible income shall be considered to have been issued for that purpose in a proceeding involving the validity or enforceability of the bond or its security.
Md. Code Ann., Hous. & Cmty. Dev. § 12-704 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 7. Bonds
§ 12–704LinkCopy Citation
(a)
In connection with issuing bonds or incurring obligations under leases, and to secure payment of the bonds or obligations, an authority, in addition to its other powers, may:
(1)
pledge any or all of the gross or net rents, fees, or revenues that are or will become due to it;
(2)
mortgage any or all of the real or personal property that it owns or will own;
(3)
covenant against:
(i)
pledging any or all of its rents, fees, or other revenue;
(ii)
mortgaging any or all of the real or personal property that it owns or will own; or
(iii)
suffering any lien on anything listed under item (i) or (ii) of this item;
(4)
covenant about limits on its right to sell, lease, or dispose of all or part of a housing project;
(5)
covenant as to what other debts or obligations it may incur;
(6)
covenant as to:
(i)
the bonds to be issued;
(ii)
their issuance, in escrow or otherwise; and
(iii)
the use and disposition of their proceeds;
(7)
provide for the replacement of lost, destroyed, or mutilated bonds;
(8)
covenant against extending the time for the payment of its bonds or interest on them;
(9)
redeem the bonds, covenant for their redemption, and provide the terms and conditions for their redemption;
(10)
covenant, subject to the limitations in this Division II, as to:
(i)
the rents and fees to be charged in the operation of a housing project or projects;
(ii)
the amount to be raised each year or other period by rents, fees, and other revenues; and
(iii)
the use and disposition of the rents, fees, and other revenues;
(11)
create or authorize the creation of special funds for money held for construction or operating costs, debt service reserves, or other purposes, and covenant as to the use and disposition of the money held in those funds;
(12)
prescribe any procedure by which the terms of contracts with bondholders may be amended or abrogated, the dollar amount of bonds whose holders must consent to an amendment or abrogation, and the way in which consent may be given;
(13)
covenant as to the use of any or all of the authority’s real or personal property, the replacement of the property, the insurance to be carried on the property, and the use and disposition of insurance money;
(14)
covenant as to the rights, liabilities, powers, and duties arising on the breach by it of a covenant, condition, or obligation;
(15)
covenant and prescribe as to the events of default and terms and conditions on which any or all of its bonds become or may be declared due before maturity, and as to the terms and conditions on which a declaration and its consequences may be waived;
(16)
vest in a trustee or trustees or in the bondholders or any proportion of them the right to enforce:
(i)
payment of the bonds; or
(ii)
covenants securing or relating to the bonds;
(17)
vest in a trustee or trustees the right, if the authority defaults, to:
(i)
take in possession, use, operate, and manage all or part of a housing project;
(ii)
collect the rents and revenues; and
(iii)
dispose of the money in accordance with the agreement of the authority with the trustee or trustees;
(18)
provide for the powers and duties of a trustee or trustees and limit the liabilities of the trustee or trustees;
(19)
provide the terms and conditions on which the trustee or trustees or bondholders or any proportion of them may enforce any covenant or rights securing or relating to the bonds;
(20)
make other covenants of a character like or unlike that of the covenants expressly authorized under this section; and
(21)
make covenants and do acts and things that, although not listed in this section:
(i)
are necessary, convenient, or desirable to secure the bonds of the authority; or
(ii)
in the discretion of the authority, will tend to make the bonds more marketable.
(b)
(1)
A pledge made by an authority is binding from the time the pledge is made.
(2)
The lien of the pledge, without any physical delivery or further act, attaches immediately to revenues or property pledged and thereafter received by an authority.
(3)
The lien is binding against all persons having claims against the authority, whether or not:
(i)
those persons have notice of the pledge; or
(ii)
the determination or other instrument has been recorded or filed.
Md. Code Ann., Hous. & Cmty. Dev. § 12-705 (2026)
Title 12. Provisions of Statewide Applicability
Subtitle 7. Bonds
§ 12–705LinkCopy Citation
(a)
In addition to all other rights that a contract may confer on an obligee of an authority, subject only to binding contractual restrictions, the obligee may:
(1)
by a writ of mandamus or a proceeding at law or in equity, compel the authority and the authority’s commissioners, officers, agents, or employees to perform each term, provision, and covenant contained in a contract of the authority with or for the benefit of the obligee;
(2)
require the carrying out of any covenant or agreement of the authority and the fulfillment of all duties imposed on the authority by this Division II; and
(3)
by a proceeding in equity, enjoin any unlawful act or thing or the violation of any right of the obligee.
(b)
(1)
By resolution, trust indenture, mortgage, lease, or other contract, an authority may confer the right to take action under subsection (c) of this section if a default, as defined in the resolution or instrument, occurs.
(2)
The right may be conferred on an obligee that:
(i)
holds or represents a specified amount in bonds or notes; or
(ii)
holds a mortgage, deed of trust, security instrument, or lease.
(c)
(1)
An obligee that has the right under subsection (b) of this section to take action under this subsection may, by a proceeding in a court of competent jurisdiction:
(i)
have possession of all or part of a housing project surrendered to any such obligee;
(ii)
require the authority and its commissioners to account as if the authority and its commissioners were trustees of an express trust; and
(iii)
have a receiver appointed for all or part of a housing project and its rents and profits.
(2)
If a receiver is appointed, the receiver may:
(i)
enter and take possession of the housing project or any part of the housing project;
(ii)
operate and maintain it; and
(iii)
collect and receive all fees, rents, revenues, or other charges thereafter arising from it.
(3)
The receiver shall keep the money in a separate account or accounts and apply the money in accordance with the obligations of the authority as the court directs.