# Land Use (GLU)

## Title 7. Other Development Management Tools

### Subtitle 5. Housing Expansion and Affordability

#### Section 7-504

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Controlled by" means a business structure in which a nonprofit organization is a managing member, general partner, or otherwise controlling entity with a for-profit member or partner as demonstrated by an attorney licensed in the State.

  (3) "Nonprofit organization" means an organization that is qualified as tax-exempt under Sec. 501(c)(3) of the Internal Revenue Code and has been designated as such for at least 3 years.

  (4) "Qualified project" means a residential project that:

    (i) consists of new construction or substantial renovation;

    (ii) is on land, including land that is subject to a ground lease, that:

      (1) is wholly owned by a nonprofit organization; or

      (2) includes improvements owned by an entity that is controlled by a nonprofit organization;

    (iii) contains at least 25% of units that are affordable dwelling units; and

    (iv) is deed-restricted to include 25% of units that are affordable dwelling units for a period of at least 40 years.

(b)

  (1) In accordance with this subsection, a local jurisdiction shall allow the density of a qualified project to exceed the density otherwise authorized in a district or zone.

  (2) In an area zoned for single-family residential use, a qualified project may include middle housing units.

  (3) In an area zoned for multifamily residential use, a qualified project:

    (i) shall have a density limit that exceeds by 30% the allowable density in that zone for uses that are not part of a qualified project; and

    (ii) may consist of mixed-use.

  (4) Subject to Sec. 7-509 of this subtitle, in an area zoned for nonresidential use, a qualified project may consist of mixed-use development with density limits that do not exceed the highest allowable density in the local jurisdiction's multifamily residential zones.

  (5) In an area zoned for mixed-use, a qualified project may include 30% more housing units than are allowed in that zone for uses that are not part of a qualified project.

  (6) If a qualified project is allowed to exceed the density otherwise authorized by a local jurisdiction in a district or zone under this section, the qualified project may not also exceed the authorized density under Sec. 7-502 or Sec. 7-503 of this subtitle.

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Md. Code Ann., Land Use (as displayed at mgaleg.maryland.gov, October 16, 2026)