MARYLAND 
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The following topics are priority issues for MBIA during the Maryland Legislative Session.
Accounting for New Growth and Maryland's Watershed Implementation Plan
As Maryland prepares for phase 111 of the Watershed Implementation Plan, our actions must include science based methods and must be analyzed for cost effectiveness, prioritized and implemented as revenues are available. An offset policy must accurately deter mine net impacts and provide cost effective opportunities to offset those new loads.
Forest Conservation
The Forest Conservation Act should be used as one of many too ls to maintain Maryland's 40% forest canopy coverage.
Currently, Maryland's coverage exceeds the 40% threshold. This is a result of enforcement of the existing FCA and other policies throughout the state. This provides evidence that Maryland's tree canopy policies are working as intended and do not need to change at this time.
Light Frame Combustible Construction
Wood framing is a cost effective, safe and environmentally sustainable material that is recognized as such by the
International Construction Code, International Residential Code, the National Fire Prevention Code and the International Green Code. There is no scientific or life safety reason to make housing less affordable by forcing the industry to use concrete and steel framing on all structures more than three stories high.
Business Climate
Maryland must look for opportunities to assist businesses in navigating regulatory compliance and coordinating the complicated development approval process.
Drainage Defects
The definition of "Drainage Defects" fails to understand the complexity of stormwater management. Environmental Site Design and Storm Water Management are complex and proven methods to help the environment. Prior to building a home the developer, builders and engineer s go through a complex process to ensure that all regulations are followed.
Adequate Public Facilities Ordinances
APFOs have emerged as a popular planning technique however local jurisdictions' attempts to reduce A PF capacities artificially constrain development and negatively impacts jobs growth and economic development.
Inclusionary Zoning
While the policy offers a solution for the growing need f or affordable housing across the state, we must ensure there are appropriate offsets and incentives to compensate f or the economic impact to builders and developers.
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ANNE ARUNDEL
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School Capacity
Councilman Grasso passed Council Bill 92-17, lowering the APF school capacity threshold to 95 percent until the first of either the adoption of a new General Development Plan or January 1, 2020. The MBIA remained opposed to this legislation until the end and is continuing to advocate for legislative approaches to mitigating this bill's impact.
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BALTIMORE CITY
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Affordable Housing Task Force
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 Tax
Councilman Bill Henry introduced legislation to raise the transfer tax from 1.5 percent to 1.75 percent 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.
Rental Inspections
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 has not yet taken a position on this legislation.
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CALVERT COUNTY
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Calvert County Comprehensive Plan First Draft
The Planning Commission and Board of County Commissioners will hold a Joint Work Session on the first draft of the Comprehensive Plan on Tuesday, February 6, 2018 at 12:15 p.m. at the Harriet E. Brown Community Center, 901 Dares Beach Road, Prince Frederick, MD. The Planning Commission continues to seek comments on the Comprehensive Plan First Draft. You may submit your comments via mail to 175 Main Street, Prince Frederick, MD 20678 or email to
[email protected]
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The revised second draft is anticipated to be published in the spring of 2018. There will be additional opportunities for public comment on the second draft. Steps in adoption include the Planning Commission approving the plan and recommending that the Board of County Commissioners adopt the plan, and the Board of County Commissioners adopting the plan. A public hearing will be held prior to the Planning Commission recommending adoption of the plan.
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HOWARD COUNTY
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APFO
Council Bill 1, a bill regarding the County's Adequate Public Facilities Ordinance, was formally introduced on January 2nd and heard on January 16th. This bill is identical to the bill the Council attempted but failed to pass in November when time elapsed before the bill could be voted upon. It creates a development moratorium in the County and is opposed by MBIA. The Council is likely to vote on this legislation in early February.
Green Neighborhoods
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.
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MONTGOMERY COUNTY
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Montgomery County's Building Code Program Achieves a Best Rating Category
The Montgomery County Department of Permitting Services (DPS) has improved its building code effectiveness rating and is now in the best rating category for insurance rate credits for new construction. This higher rating
is important because it means new construction projects are now eligible for the most favorable insurance rate discounts from insurers that follow the Insurance Services Office (ISO) advisory ratings. According to ISO, only two percent of the jurisdictions in the State of Maryland are included in the best rating category and Montgomery County's score is one of the top three scores for building code enforcement agencies in Maryland.
Carol Rubin Appointed Acting Deputy Director of the Montgomery County Planning Department
On January 8th, the Montgomery County Planning Department announced the appointment of Carol Rubin as the Acting Deputy Planning Director. Rubin will serve in this position while the Planning Department recruits and hires a permanent replacement for Deputy Director Rose Krasnow, who retired at the end of 2017. Prior to the appointment, Rubin served as principal counsel in the Office of the General Counsel at The Maryland-National Capital Park and Planning Commission. While Rubin serves as Acting Deputy Planning Director, Matthew Mills will be the Acting Principal Counsel for M-NCPPC, overseeing the legal team for the Montgomery County Planning Board.
County Executive Leggett Releases Final Capital Construction Budget
County Executive Leggett released his recommended FY19 Capital Budget and six-year FY 19-24 Capital Improvement Program (CIP) on January 16th. As proposed, the six-year CIP totals $4.521 billion. It includes $1.751 billion for the Montgomery County Public Schools.
The capital budget includes funding for Marriott's new headquarters in Bethesda and development in White Flint, White Oak and Wheaton. It also includes a $33 million increase in support for affordable housing and a $36.6 million increase in road maintenance funding over the previous CIP. In all, the FY19 capital budget and six-year CIP, focuses on public schools, transportation, economic development, affordable housing and Montgomery College. T
o review the recommended FY19 Capital Budget and amended FY19-24 Capital Improvements Program, visit
montgomerycountymd.gov/capitalbudget
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PRINCE GEORGE'S COUNTY
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PG 412-18 - Sale of Residential Real Property - Community Amenities - Advertising
Delegate Susie Proctor has put in a bill requiring an advertisement selling residential property in a community development that includes a community amenity which has not been completed yet must include a disclosure statement specifying the amenity and when it will be completed.
PGMC 102-18 - Special Exception Hearings - Required Notice
Delegate Jimmy Tarlau has put in a bill that would require in Prince George's and Montgomery County, the board of appeal, the district council or an administrative officer or agency to provide notice of a hearing for a special exception to all parties of record. This bill is now before the county's Bi-County Subcommittee for review.
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ST. MARY'S COUNTY
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2019 State Budget Funds Third Building
Gov. Larry Hogan's fiscal 2019 budget includes $28.4 million to begin construction on the highly anticipated third building at the Southern Maryland Higher Education Center (SMHEC). This third building will be the hub of unmanned and autonomous systems research and development led by the University System of Maryland. The goal for the county is to develop high technology for civilian commercial use and diversify the local economy away from the military.
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WICOMICO COUNTY
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Salisbury Construction
The City of Salisbury has had its best year for construction in more than a decade. Permits were issued for 19 new single family homes inside the city limits. The boom was attributed to the moratorium on city building fees that were put into effect a year ago.
Permit Fees
The City of Salisbury has passed Resolution No. 2808 to extend their "Infill Fee Moratorium" for a period of one-year on building permits, plan review, plumbing permit, mechanical permit, capacity and central line fees for the construction of homeowner occupied single family dwellings built on infill lots in R-5, R-8 and R-10 residential zoned districts. The resolution also applies to certain established subdivisions abandoned due to the poor economic climate including Heritage, Aydelotte Farm PRD#7, Parcel C Residential Detached Dwellings, Parson Lake Phase I and Sassafras Meadows. The owner must occupy the property for 10 years before all fees will be waived.
Next Meeting
The Eastern Shore Builders will hold a Chapter Meeting on Tuesday, January 30, 2018 from 4:30 pm to 6:30 pm at the Ocean Pines Library, 11107 Cathell Road, Berlin. Please contact Joan Strang at
[email protected] or call 410-845-0132.
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WORCESTER COUNTY
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Offshore Wind
The Maryland Energy Administration has awarded three companies grants for offshore wind development. Arcon Welding Training School, of Salisbury, was awarded $100,000 for the Offshore Wind Workforce Development Grant. Martin Holdings Inc., of Ocean City, was awarded $375,000 and Devreco LLC, of Salisbury, was awarded $100,000 for the Offshore Wind Business Development Grant.
Offshore Drilling
Ocean City Mayor, Rick Meehan and State Senator Jim Mathias represented the resort at a meeting in Annapolis to reaffirm the resorts position of opposing offshore drilling. In 1974 and 2015 the resort passed resolutions opposing offshore drilling.
Ocean City Tax Differential
The Town of Ocean City has filed suit against the Worcester County Commissioners 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.
2018 State Election
Berlin Councilman Zack Tyndall has announced he is running for District 3 (Berlin) Worcester County Commissioners seat. The seat is currently occupied by four-term Commissioner Bud Church.
Former Worcester County Commissioner, Virgil Shockley has filed to reclaim his District Four seat from Ted Elder who defeated him in the 2014 election.
Ed Tinus has filed to run for Delegate Mary Beth Carozza's seat as a Republican. He has previously run for office as a Democrat and Independent. In addition, Joe Schanno, Jim Shaffer and Ocean City Councilman Wayne Hartman have entered the race. They are all running as republicans. Additional candidates are expected to file for the seat. The filing deadline is February 27, 2018.
Apprenticeship Training and Information
The DLLR will provide an Apprenticeship Training and Information Session on Monday, February 5, 2018 from 10:00 am to 12 noon at the One Stop Job Market/American Job Center, Conference Room 25, 31901 Tri-County Way, Salisbury, MD 21804. The instructor will be Andre Keyser, DLLR Apprenticeship & Training Navigator. The following topics will be covered:
- Information on How to Sponsor a Program
- Maryland Registered Apprenticeship Tax Credit Information
- Apprenticeship and Training Council
- Apprenticeship and Training Regulations
- How to become an Apprentice
- How to find an Apprenticeship
- How to become an Apprenticeship Sponsor
If you are interested in establishing an apprenticeship program in your business, please plan to attend.
Next Meeting
The Eastern Shore Builders will hold a Chapter Meeting on Tuesday, January 30, 2018 from 4:30 pm to 6:30 pm at the Ocean Pines Library, 11107 Cathell Road, Berlin. Please contact Joan Strang at
[email protected]
or call 410-845-0132.
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OTHER INDUSTRY NEWS
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D.C. Bill Breaks Up the Department of Consumer and Regulatory Affairs
On January 23rd, DC Council Chairman Phil Mendelson introduced a majority-backed bill. B22-669, Department of Buildings Establishment Act of 2018, to break up the Department of Consumer and Regulatory Affairs into two separate agencies, a Department of Buildings charged with permitting, inspection and enforcement of building codes and the Department of Licensing and Consumer Protection retaining duties related to business licensing, regulatory investigations, consumer protection and small business resources. The legislation follows the 2017 release of a nearly 100-page critical review of DCRA's management of the city's vacant and blighted property program by the D.C. Auditor.
DC Comprehensive Plan Amendments Proposed
DC Bill
B22-663, Comprehensive Plan Amendment Act of 2018
, was introduced on January 8th on behalf of the Mayor, and is currently under Council review. The bill proposes amendments to the Framework Element of the Comprehensive Plan that would correct technical errors, reflect current District planning priorities and best practices, and refine land use descriptions to more clearly reflect longstanding District policy. The remaining elements of the Comprehensive Plan and two maps will be brought in for amendments at a later date.
More bill information >>>
U.S. Dept. of Labor Proposal Expands Access to Healthcare through Small Business Health Plans
The U.S. Department of Labor proposed regulations to expand the opportunity to offer employment-based health insurance to small businesses through Small Business Health Plans, also known as Association Health Plans. Up to 11 million Americans working for small businesses/sole proprietors and their families lack employer-sponsored insurance. These 11 million Americans could find coverage under this proposal.
The proposed rule, which applies only to employer-sponsored health insurance, would allow employers to join together as a single group to purchase insurance in the large group market. These improvements stand to open health insurance coverage for millions of Americans and their families by making it more affordable for thousands of small businesses and sole proprietors. By joining together, employers may reduce administrative costs through economies of scale, strengthen their bargaining position to obtain more favorable deals, enhance their ability to self-insure, and offer a wider array of insurance options. The proposed rule includes important protections for Americans. Small Business Health Plans (Association Health Plans) cannot charge individuals higher premiums based on health factors or refuse to admit employees to a plan because of health factors.
- Federal eRulemaking Portal:Follow the instructions for submitting comments.
- Mail: Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5655, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC 20210, Attention: Definition of Employer-Small Business Health Plans RIN 1210-AB85.
The Department of the Interior has reversed a controversial Obama Administration decision to subject private landowners, including home builders, to federal prosecution under the Migratory Bird Treaty Act. The decision nullifies the previous legal interpretation of the act that included civil and criminal penalties for unintentional "incidental takings," or killing or injuring endangered species.
Supreme Court to Hear About Frog that Never Was
The U.S. Supreme Court has agreed to review a case concerning whether the federal government may designate about 1,600 acres of private property in Louisiana as "unoccupied critical habitat" for the endangered Dusky Gopher Frog, a designation that translates into $34 million in lost development value for the property's owner. The Dusky Gopher Frog has not been seen in Louisiana for more than 50 years, and the designated property does not contain the physical and biological features needed for the frog to survive. However, both a federal district court and an appeals court upheld the Fish and Wildlife Service decision to designate the land, citing the service's authority do to so under the Endangered Species Act. The fundamental issue in the case concerns the proper interpretation and scope of this authority.
A newly released
NAHB survey
shows that as builders ramp up their green building practices, more of their homes could be certified to the ANSI-approved National Green Building Standard (NGBS). According to survey results, almost 25% of these homes would be eligible for 2015 NGBS bronze-level certification. The survey noted that resource efficiency, site and lot design are the most challenging aspects of residential green building. It also found that the size of the construction firm made little difference in its sustainable building practices. Builders would not have to change their construction practices or materials to achieve bronze-level certification.
The Environmental Protection Agency has named Home Innovation Research Labs as the first Multifamily Review Organization (MRO) for high-rise, non-commercial projects seeking Energy Star certification. Rather than submitting Energy Star project documentation to EPA, project teams can work directly with Home Innovation for the review and approval of their submissions. Home Innovation staff will review and approve Energy Star documentation submissions by developers.
Developers seeking Energy Star certification in response to local mandates, to achieve market differentiation or to qualify for financing incentives can learn about other programs that Home Innovation offers. Fannie Mae and HUD, for example, both offer preferred financing for green-certified properties and both
NGBS Green
and the
Energy Star MFHR (multifamily high-rise) program
are among the recognized programs. Many HUD programs also require, or at least, encourage Energy Star certification as a minimum for energy efficiency in new construction.
Provisions for energy-efficiency compliance in the 2015 NGBS include Energy Star certification as an alternative compliance path to Bronze and Silver certification for multifamily projects.
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ACRONYM GLOSSARY
Acronyms are often used as time saving, shorthand ways to communicate lengthy titles or basic concepts. This glossary provides a quick reference to the terms, acronyms and abbreviations commonly used in this industry.
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Maryland Building
Industry Association
11825 West Market Place
Fulton, MD 20759
301-776-MBIA (6242)
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Chief Executive Officer
Manager, Legislative and Regulatory Affairs
Vice President,
Government Affairs
Erin Bradley
Vice President,
Government Affairs
Vice President,
Government Affairs
Director,
Regulatory Affairs
Vice President,
Government Affairs
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WHO DO YOU KNOW?
Help us make a connection.
Tell us if you know a Federal or Maryland State legislator and how you know them. Are you a neighbor, friend, business associate or second cousin twice removed? We want to know.
In the future, we may call on you to introduce us to that legislator. This can make a big difference when important legislation effecting the building industry comes our way.
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JOIN MBIA TODAY
Together We Can Do More
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The Maryland Building Industry Association has a government affairs staff of representing you and your interests in each county and at the state level from the Maryland State Builders Association and federally f
rom the National Association of Home Builders.
Add up the dollar value of our advocacy victories and you're talking real money - from $6,882 up to $61,000 per housing start depending on the jurisdiction. That's a big number, and a big step toward success.
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Look back through the monthly reports of issues impacting the home building industry.
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