In this Division II the following words have the meanings indicated. “Area of operation” means the geographical area within which an authority is empowered to act. “Authority” means a public corporation created as a housing authority under this Division II. “Bond” includes a note, an interim certificate, a debenture, and any other obligation issued by an authority under this Division II. “Chief elected official” means: the individual who exercises the office of the chief publicly elected executive official of the political subdivision; or in a political subdivision without a chief publicly elected executive official, the highest executive body. “Code authority” means an authority activated on or after July 1, 1990. “County” means a county of the State or Baltimore City. “Custodian of records” means: the clerk of the political subdivision; the officer charged with the duties customarily imposed on a clerk; or the political subdivision’s designee to be the custodian of records for this Division II. “Economically depressed or physically deteriorated area” means an area in which most housing is harmful to safety, health, and morals because of: dilapidation; overcrowding; faulty arrangement or design; or lack of ventilation, light, or sanitary facilities. “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. “Housing project” means a work or undertaking to: demolish, clear, or remove buildings from an economically depressed or physically deteriorated area; or 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. “Housing project” includes: work connected to planning, constructing, reconstructing, altering, or repairing improvements, acquiring property, or demolishing structures; adapting an economically depressed or physically deteriorated area to public purposes, including parks and other recreational or community purposes; and acquiring buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable: appurtenances; streets; sewers; water service; parks; site preparation; gardening; and administrative, community, health, recreational, educational, welfare, or other purposes. “Legislative body” means the council, commissioners, or other legislative body of a political subdivision. “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. “Obligee” includes: a bondholder and a trustee for a bondholder; 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 the State or federal government when it is a party to a contract with an authority. “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. “Person of eligible income” means an individual or family that qualifies under § 12-106 of this subtitle. “Political subdivision” means a county or municipal corporation of the State. “Pre-existing authority” means an authority that was activated before July 1, 1990. “Real property” includes: land; improvements and fixtures on the land; property of any nature appurtenant to or used in connection with the land; and each legal or equitable estate, interest, and right in the land, including: terms for years and liens by way of judgment, mortgage, or otherwise; and the indebtedness secured by those liens. “State public body” means any political subdivision, commission, district, authority, or unit of the State.

The General Assembly finds that: there is unsanitary or unsafe housing in which individuals of low and moderate income are forced to live; 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; there are many families living in housing that, while decent and safe, is inadequate for the size of the family; the conditions: cause disease and crime to increase and spread, threaten the public health, safety, morals, and welfare, and impair economic values; and 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; construction of housing projects for individuals of low and moderate income does not compete with private enterprise because: there are economically depressed or physically deteriorated areas that cannot be assisted through the private housing market; and the private housing market cannot relieve the shortage of safe and sanitary housing for individuals of low and moderate income; 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; it is the policy of the State to develop safe, sanitary, and decent housing for State residents; 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 this Division II is needed in the public interest.

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.

In this section, “housing authority entity” means an entity: that is controlled or wholly owned by an authority; or 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. A nonprofit entity shall be deemed controlled by an authority under subsection (a) of this section if: the nonprofit entity is established by an authority under § 12–502(h) of this title; and the authority: has the power to appoint a majority of the board of directors of the nonprofit entity; or is the sole member of the nonprofit entity. In this subsection the following words have the meanings indicated. “Affordable housing” means rental housing: 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 approved by the governing body of the political subdivision in which the project is located and for which: 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 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. “Nonprofit housing corporation” means a corporation: incorporated under the laws of the State or authorized to do business in the State by the State Department of Assessments and Taxation; recognized by the Internal Revenue Service as an organization described in § 501(c)(3) of the Internal Revenue Code; and organized and operated for the primary purpose of developing, owning, or operating safe and sanitary affordable housing. This subsection does not apply to: property in Baltimore City that: belongs to a nonprofit housing corporation; or 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 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. 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: belongs to an authority or a nonprofit housing corporation; 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 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 has improvements, or has improvements planned or under construction, located on land that is owned by: an authority or a nonprofit housing corporation; or an entity that is controlled or wholly owned by an authority or a nonprofit housing corporation. 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. Except as provided in paragraph (2) or (3) of this subsection: all real property of an authority is exempt from levy and sale by virtue of an execution; an execution or other judicial process may not issue against the real property; and a judgment against an authority is not a charge or lien on the authority’s real property. Paragraph (1) of this subsection does not limit a right to foreclose or otherwise enforce: a mortgage or deed of trust recorded against property of an authority; or a pledge or lien given by an authority on its rents, fees, or revenues. 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.

An authority of a municipal corporation or Baltimore City may: operate within its territorial boundaries; and without regard to location: administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants; own or manage housing projects in operation before January 1, 1990; and develop, own, or operate a housing project at the request of and within the territorial boundaries of another political subdivision. Anywhere in its county an authority of a county may: administer rent subsidy payments and housing assistance programs for both eligible landlords and tenants; and own or manage housing projects in operation before: January 1, 1990, if the authority is of Baltimore City; or January 1, 1991, if the authority is of another county. Subject to paragraph (3) of this subsection, an authority of a county may conduct its other operations within the county. 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. An authority created under § 12–208 of this title may conduct its operations in the area prescribed under its articles of organization.

An individual or family qualifies as a person of eligible income: 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 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. 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. 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.

A provision applicable to a particular political subdivision or its authority in another title of this Division II: takes precedence over a conflicting provision of this title; and may not be used to interpret how this title applies to another political subdivision or its authority.