A bill to expand Maryland’s existing Payment in Lieu of Taxes (PILOT) program — which allows property tax abatements in exchange for housing reserved for low-income tenants — has been signed into law by Gov. Wes Moore (D), a move lauded by affordable housing advocates.
The state’s Affordable Housing Payment In Lieu of Taxes Expansion Act will authorize the owner of rental property “to enter into a payment in lieu of taxes agreement for maintaining at least 25% of the rental housing units located at the real property as affordable dwelling units for at least 15 years,” according to the language of the bill reviewed by HousingWire.
The legislation also authorizes county governments to “require the owner of real property to maintain a higher percentage of rental housing units as affordable dwelling units than the minimum percentage specified in the act.”
Initially introduced into the Maryland General Assembly this past January by Delegate Marc Korman (D), committee testimony over the next few months was largely positive and came from a variety of affordable housing groups from across the state and country.
Of the 25 submitted testimonies on the record for the House version of the bill, only one is listed as “unfavorable” and appears to have originated from a private citizen. Among the 36 testimonies for the Senate version, there were only four unfavorable submissions, none of which included formal submissions.
HousingWire reached out to Moore’s office but did not receive an immediate response. But Delegate Marc Korman, who was the chief sponsor of the bill in the State House, described his satisfaction with seeing the bill signed and anticipated the impact it will make in his district.
“I was pleased to work with partners like Montgomery County to expand the potential uses of the Payment in Lieu of Taxes tool to maintain naturally occurring affordable housing,” Korman told HousingWire.
“This can be applied in places like Bradley Boulevard and Battery Lane in my district in Bethesda, as well as many other places around the state. And it is a flexible tool that does not mandate that counties do anything. It’s just another option as they tackle the housing affordability challenge,” he said.
Sen. Shelly Hettleman, who served as the chief sponsor of the Senate version, is happy with the development.
“I’m very pleased the governor signed the bill into law yesterday and am optimistic that it can be a useful tool for our local governments in their efforts to expand our desperately-needed stock of attainable housing,” Hettleman told HousingWire in a statement.
Janine Lind, president of nonprofit multifamily developer Enterprise Community Development, lauded the signing in a statement provided to HousingWire.
“Today’s bill signing unlocks a powerful tool for preserving and expanding affordable housing across Maryland,” Lind said. “By streamlining eligibility for the PILOT program, which has already been instrumental in supporting affordable housing development, this legislation will make it easier for housing providers to take action, including saving at risk properties, in an expensive and competitive environment.”
Enterprise owns and operates complexes with a total of 13,000 units across the Mid-Atlantic region. The firm is pleased that the state government is taking action on the state’s need for more affordable housing
“We’re grateful to Delegate Korman and Gov. Moore for advancing this game-changing legislation, and we look forward to leveraging this opportunity to create more homes Maryland residents can afford.”
Editor’s note: This story has been updated with a statement from the bill’s chief sponsor, Delegate Marc Korman.
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