MARYLAND MD
We are halfway through the 2018 Legislative Session. MBIA has submitted testimony for over 80 bills. Our Legislative Committee continues to meet weekly to discuss pending legislation. 
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   BALTIMORE CITYcity
Baltimore City Affordable Housing Task Force Created
On December 7th, the City Council adopted a resolution to create a new task force to study affordable housing in Baltimore City. The task force is expected to be named shortly and will contain multiple development industry professionals representing MBIA.
 
Transfer and Recordation Tax Increase Proposed
Councilman Bill Henry introduced legislation to raise the transfer tax from 1.5% to 1.75% of the taxable base and the recordation tax from $5 to $6 of every $500 of consideration paid to fund affordable housing. The MBIA is opposed to creating a new tax burden on investment and home ownership although the Councilman's goal is laudable. No hearing is set on this legislation at this time. This legislation is likely to be considered as a part of the City's Affordable Housing Task Force
 
Inspections of 1 and 2 Unit Rentals Proposed to Improve Quality of Rental Housing
Councilman Henry also introduced legislation to begin licensing and inspecting 1 and 2 unit rental properties located in the City. Currently, the City inspects only 3 or more unit dwellings. To handle the increased inspection burden, third party inspectors will be employed by property owners to conduct inspections. The legislation is drafted to incentivize responsible property owners through a system of less frequent inspections for less complaints and infractions against the property. The MBIA supports this legislation intended to improve the overall quality and safety of rental housing and rewarding the MBIA members who already keep their rental units in safe condition. Read the MBIA testimony in support >>>
 CHARLES COUNTYcharles
Robinson will not seek third commissioner term
Commissioner Ken Robinson (D), who represents District 1, has announced that he will not be seeking re-election to the Charles County Board of Commissioners.
 
Collins will run for Board of Commissioner President
Former Charles County Commissioner Reuben B. Collins has filed to run for Board of Commissioners President.  This will be Collins' second time running for this position, after being defeated by then Delegate Peter Murphy in 2014.
 DORCHESTER COUNTYDor
Comprehensive Plan Bid Award
The Dorchester County Council awarded the Comprehensive Plan Consultant Services to the low bidder AECOM for $125,779.  The update of the comprehensive plan is expected to take two years.

The Eastern Shore Builders will hold a Chapter Conference Call to update members on local and state legislation and progress on the apprenticeship program and construction class.  Time and date to be announced.  If you have any questions, please contact Joan Strang at [email protected] or call 410-845-0132. 
   HOWARD COUNTYhoward
Howard County Council Passes Development Moratorium Bill
The Howard County Council passed, and County Executive Kittleman signed, Council Bill 1, creating a home building moratorium in the County beginning in July 2019. The MBIA opposed this legislation in the strongest possible terms and took the following actions to urge the Council to craft more reasonable legislation. Working together with NAIOP and the Howard County Chamber of Commerce, the MBIA took dozens of meetings with legislators, attended and testified at numerous hearings and sent hundreds of emails to legislators, but the Council chose to ignore the business community. Read MBIA's final piece of testimony on this matter>>>

Green Neighbhorhoods
Council Resolution 112, to make the Green Neighborhoods program more flexible so that developers can take advantage of the green allocations that exist has been tabled for further consideration by the County Council in September. The County Council heard this resolution, which the MBIA supports on July 17th.
   MONTGOMERY COUNTYmontcoun
County Council Begins Work on Montgomery County's Capital Budget
On February 12, Council Committees began working on the County's capital budget. The County Executive's recommended six-year CIP totals $4.521 billion. Staff reports for the Parks Department, DHCA, Economic Development and more can be viewed here:

County Council Introduces Bill to Expand Solar Production
On February 13, Councilmember Hucker introduced ZTA 18-01, Solar Collection System - Standards. The ZTA would revise the Solar Collection System use standards to allow larger facilities in Rural Residential, Residential, Commercial/Residential, Employment, and Industrial zones.  The intent is to offer the benefit of solar to those who cannot, or prefer not to, install solar panels on their homes. These projects enable individuals, businesses or organizations to purchase or lease a share in a community solar project. The ZTA includes standards to prevent glare and to buffer the facility from surrounding land uses. Maryland has a statewide goal to reach 25 percent renewable energy sources by 2020. A public hearing is tentatively scheduled for April 3 at 1:30 pm.

Public Hearing on Subdivision Regulation Amendment to Allow Minor Subdivisions - Ownership Units
On Tuesday, February 27 the Council will hold a public hearing on Councilmember Floreen's SRA 18-01, Minor Subdivisions - Ownership Units. The subdivision code only allows the creation of an ownership unit on a record plat covered by an approved site plan. SRA 18-01 would also allow the creation of these units when the property described in a plat was subject to conditional use or special exception approval.
A PHED committee meeting is tentatively scheduled for March 12, 2018.

MPDU Bills Head to PHED Committee
Both Councilmember Floreen's and Council President Reimer's MPDU bills will be discussed in the PHED Committee beginning in March. There are three work sessions scheduled for Bill 34-17 and two for Bill 38-17. The Floreen MPDU Bill (34-17) will be discussed on the March 5th, 12th and 19th; Reimer's bill will be discussed on March 12th and March 19th. MBIA Chapter leadership provided testimony on both bills and has worked closely with sponsors on suggested language and changes to the proposed legislation. 
  PRINCE GEORGE'S COUNTYprinceg
Residential Driveways
Department of Permitting Inspections and Enforcement (DPIE) has issued Techno-Gram (001-2018) concerning residential driveways with the purpose of establishing standards for residential three-car front entry garage driveways and drive aprons and to clarify residential driveway spacing requirements (see attachment).
 
Roadway Improvement in SHA Right of Way
Department of Permitting Inspections and Enforcement (DPIE) has issued Techno-Gram (002-2018) concerning roadway improvement in SHA right of way.  The purpose is to clarify county permits that are required for road improvements projects in the SHA right of way (see attachment).
 
New Requirement for Tenant Build-out ePlan Application Submittals
Effective April 1, 2018, applications and plans for all tenant build-out commercial building projects that are 10,000 square feet of gross floor area and above will be required to be submitted through the County's electronic plans (ePlan) review system.  To complete the building permit application CLICK HERE  and enter the information into the County's permitting system.  Select the ePlan option on the application, so the plans can be submitted for review.
  WICOMICO COUNTYwicomico
Introduction of Legislative Bill No. 2018-3
The Wicomico County Council introduced Bill No. 2018-3 that would amend the Wicomico County Official Zoning Map.  It will rezone property consisting of 4.12 acres, more or less, situated in the Salisbury Election District, Wicomico County, Maryland, bounded on the northerly side of Nanticoke Road, westerly side of Kenney Drive, and southerly side of Old Quantico Road. 

The Eastern Shore Builders will hold a Chapter Conference Call to update members on local and state legislation and progress on the apprenticeship program and construction class.  Time and date to be announced.  If you have any questions, please contact Joan Strang at [email protected] or call 410-845-0132. 
  WORCESTER COUNTYworchester
Resolution No. 18-1 - 2017 National Electrical Code with Local Amendments
The Worcester County Commissioners have passed Resolution No. 18-1 to adopt the 2017 National Electrical Code with Local Amendments.  The resolution will take effect June 1, 2018.
 
Resolution No. 2018-1 a Resolution in Opposition to Permanent Offshore Wind Turbines Visible From Ocean City
The Town of Ocean City formalized its objection to offshore wind energy turbines within view of the resort's coastline.  The town is asking for the turbines to be placed 26 miles off its coast.  The current plan places the turbines in phase one 17 miles off the coast, phase two 15 miles off the coast and phase three 13 miles off the coast.  The town's elected officials do not oppose the proposed wind farms, but merely the placement of turbines within view of the Ocean City coast. 
 
Ocean City Tax Differential
Worcester County asked the Worcester County Circuit Court in Snow Hill to extend the deadline for the suit filed against them by the Town of Ocean City seeking a declaratory judgement regarding the resort's right to a split tax schedule that would levy one property rate on resort property owners and another on county properties.  The court has extended the deadline until Tuesday, March 26, 2018.

The Eastern Shore Builders will hold a Chapter Conference Call to update members on local and state legislation and progress on the apprenticeship program and construction class.  Time and date to be announced.  If you have any questions, please contact Joan Strang at [email protected] or call 410-845-0132. 
  OTHER INDUSTRY NEWSother
WSSC Proposed Budget for FY 2019
(Montgomery & Prince George's Counties)
On February 21st, Jude Burke spoke on behalf of MBIA before the WSSC Commissioners on the impact of increased fees and charges in the WSSC Proposed FY 2019 Budget.  The fees include a $6,500 Design Review Fee that was previously credited the Construction Services Fee. Read his statement >>> 

Softwood Lumber Prices Climb to Record Highs
Largely due to the tariffs imposed by the U.S. Commerce Department and related negotiations grinding to a halt, prices for softwood lumber imports have skyrocketed 30 percent since Hurricane Harvey hit last summer. Unlike lumber, OSB prices had been steadily declining in recent months. However, those declines came to an end last week when prices jumped 6 percent. The good news is that those increases are expected to be short-lived. Canada has filed a complaint with the World Trade Organization as well as the NAFTA arbitration panel, accusing the U.S. of violating international trade rules. According to NAHB news, the most likely path forward is lengthy litigation during which lumber prices remain high.

Congress Approves 2-Year Budget Framework
On February 9th, Congress approved a two-year budget framework to keep the government running following a brief shutdown that began at midnight and lasted less than six hours. The accord includes massive increases to defense and discretionary spending, as well as key housing provisions. Lawmakers now have until March 23 to pass a long-term spending package that will fund the government through the end of the current fiscal year, which expires Sept. 30. Congress would have to negotiate a separate measure to fund the government through fiscal 2019.
The agreement means that the National Flood Insurance Program (NFIP) will be extended only through March 23. NAHB is working with lawmakers to include the NFIP in any long-term spending package.  In addition, the budget package includes the following Energy and Home Owner Tax Credits provisions that are positive for housing:
As part of the Bipartisan Budget Act of 2018, Congress retroactively extended a number of expired energy and home owner tax provisions. The following tax credits were reinstated on a retroactive basis for 2017 only:
  • Section 45L Credit for Energy-efficient New Homes: Provides a $2,000 tax credit for the construction of homes exceeding heating and cooling energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Builders must have tax basis in the home to claim the credit (i.e., they must own and then sell/lease the residence).
  • Section 179D Energy Efficient Commercial Buildings Deduction. Provides a deduction up to $1.80 per square foot for commercial and multifamily buildings that exceed specific energy efficiency requirements under ASHRAE 2007.
  • Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This policyoffers a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products like windows, for consumers to install qualified energy-efficient upgrades.
  • Mortgage insurance premiums. Subject to income phase outs, consumers who file their taxes can deduct premiums paid for private mortgage insurance in 2017.
  • Mortgage forgiveness tax relief. The budget accord eliminates any taxes home owners might face due to renegotiating the terms of a home loan, which result in forgiving or canceling a portion of the outstanding mortgage, particularly in connection with short sales. The debt forgiveness pertains to debt discharged in 2017 but not in 2018.
Congress also included a fix NAHB had sought for the Section 25D tax credit, which offers a 30% tax creditfor the installation of qualifying alternative energy equipment. In 2016, Congress extended the 25D tax credit but limited its use to solar technology only.
This bill restores the ability to claim the 25D tax credit for geothermal heat pumps, small wind turbines, and fuel cell property.  Unlike the credits listed above, the Section 25D tax credit remains in effect for 2018 under a phase-out regime. Starting in 2022, this credit is scheduled to expire.

FHFA Establishes Affordable Housing Goals for Fannie Mae, Freddie Mac
The Federal Housing Finance Agency (FHFA) announced February 6th that it has published a final rule establishing single-family and multifamily housing goals for Fannie Mae and Freddie Mac for 2018 through 2020.  Click here to view the 2018-2020 single-family and multifamily benchmarks. The final rule will become effective 30 days after publication in the Federal Register.

NAHB Seeks Nationwide Injunction on WOTUS Rule
After the Supreme Court's January decision holding that only the district courts have jurisdiction to hear challenges to the 2015 WOTUS rule, NAHB and its coalition partners believed it was imperative to obtain a nationwide injunction. Therefore, NAHB joined a broad coalition of farmers, miners and foresters Feb. 7 to ask the U.S. District Court in Texas to issue a nationwide preliminary injunction prohibiting the federal government from enforcing or implementing the rule, which defines the extent of the Environmental Protection Agency and Army Corps of Engineers' regulatory jurisdiction under the Clean Water Act. The Trump Administration continues its efforts to rescind the 2015 WOTUS rule and replace it with a new definition that will seek to provide needed clarity and narrow federal CWA authority. On January 31st, the EPA announced a two-year delay of the rule to give the agency more time to work with the U.S. Army Corps of Engineers to replace it with definitions that provide clarity for those that are regulated by the Clean Water Act. 
MARCH 2018
IN THIS ISSUE
Maryland
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