# Housing and Community Development (GHS)

## Title 12. Provisions of Statewide Applicability

### Subtitle 5. Powers and Limitations on Powers

#### Section 12-501

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.

#### Section 12-502

(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.

#### Section 12-503

(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.

#### Section 12-504

(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.

#### Section 12-505

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.

#### Section 12-506

(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.

#### Section 12-507

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.

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Md. Code Ann., Hous. & Cmty. Dev. (as displayed at mgaleg.maryland.gov, October 16, 2026)