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MarylandHB 05712026 Regular SessionHouseWALLET

Nonprofit Housing Corporations - Taxes and Special Assessments Exemptions - Alterations

Sponsored By: Nick Allen (Democratic)

Signed by Governor

Housing and Community DevelopmentTaxes - PropertyAssessments -see also- Property TaxAssessments and Taxation, Department ofCorporations -see also- Municipal Corps; Public Corps & InstFederal GovernmentHousing -see also- Apartments; Condos; Mobile & Manuf HomesIncome TaxJudgmentsLeases and RentLocal Government MandatesLow-IncomeNonprofit OrganizationsProperty TaxReal PropertySafety -see also- Occupational SafetyTax Credits

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Property tax changes for nonprofit housing

Beginning July 1, 2026, affordable housing owned by a housing authority, a nonprofit housing corporation, or their subsidiaries uses a payment in lieu of taxes (PILOT) system. Instead of regular property taxes and special assessments, the owner and the local government agree on a yearly payment that cannot be higher than the tax on similar property. To qualify as affordable housing, a project either has federal low‑income housing tax credits, or the local government approves it with at least 50% of units for households at or below 60% of area median income and rents capped at 30% of a four‑person household’s income, with bedroom sizing at 1.5 persons per bedroom. These rules also cover property under construction and improvements on land owned by a qualifying nonprofit or entity it controls. The changes do not apply to specified Baltimore City property or to projects that got local government funding before July 1, 2026.

Nonprofit housing loses lien protections

Beginning July 1, 2026, nonprofit housing corporations no longer have special protections that blocked liens or forced sale of their real property used for eligible‑income housing. Housing authorities keep these protections. Creditors can enforce judgments and mortgages against nonprofit‑owned properties under normal rules, and local governments can still collect any agreed PILOT payments.

Sponsors & Cosponsors

Sponsor

  • Nick Allen

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 219 • No: 84

House vote • 4/11/2026

Third Reading Passed

Yes: 96 • No: 33 • Other: 6

Senate vote • 4/8/2026

Third Reading Passed

Yes: 24 • No: 17 • Other: 5

House vote • 3/23/2026

Third Reading Passed

Yes: 99 • No: 34 • Other: 6

Actions Timeline

  1. Approved by the Governor - Chapter 727

    5/26/2026

  2. Passed Enrolled

    4/11/2026House

  3. Third Reading Passed (96-33)

    4/11/2026House

  4. House Concurs Senate Amendments

    4/11/2026House

  5. Third Reading Passed (24-17)

    4/8/2026Senate

  6. Motion Special Order until 4/8 (Senator A. Washington) Adopted

    4/7/2026Senate

  7. Second Reading Passed with Amendments

    4/6/2026Senate

  8. Motion Reconsider Floor Amendment {553426/1 (Senator Ellis) Rejected

    4/6/2026Senate

  9. Floor Amendment {553426/1 (Senator McCray) Adopted

    4/6/2026Senate

  10. Favorable Adopted

    4/6/2026Senate

  11. Favorable Report by Budget and Taxation

    4/6/2026Senate

  12. Hearing 3/31 at 1:00 p.m.

    3/25/2026Senate

  13. Referred Budget and Taxation

    3/23/2026Senate

  14. Third Reading Passed (99-34)

    3/23/2026House

  15. Second Reading Passed with Amendments

    3/23/2026House

  16. Favorable with Amendments {743127/1 Adopted

    3/23/2026House

  17. Favorable with Amendments Report by Economic Matters

    3/23/2026House

  18. Hearing 2/19 at 1:00 p.m.

    2/3/2026House

  19. First Reading Economic Matters

    1/28/2026House

Bill Text

  • Enacted

    5/26/2026

    PDF

  • Enrolled

    4/11/2026

    PDF

  • Third Reading

    3/23/2026

    PDF

  • First Reading

    1/28/2026

    PDF

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