Title 12. Provisions of Statewide Applicability — Subtitle 2. Establishment and Organization of Authorities
Statutes in effect as of October 1, 2026.
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.