Maryland Building Industry Association Records Successful Legislative Session
PRIORITY ISSUES

As the 2018 Maryland Legislative Session began, the Maryland Building Industry was focused on five priority issue areas. We are happy to report that we were able to defeat or mitigate the negative impact these bills would have had on the building industry in Maryland.

NOT INTRODUCED (Wood Frame Construction) Would require DHCD to adopt by regulation a statewide building code, relating to buildings constructed with or being constructed by specified light frame (wood) combustible construction; would establish requirements for the construction of specific buildings; and would prohibit a construction project using a specified type of construction (wood) from proceeding unless a fire watch warden is present. This bill will make use of wood frame construction on projects 4 or more stories financially infeasible.

DEFEATED - SB 610/HB 766 (Forest Conservation Act Amendment) Amended to establish the Task Force on the Forest Conservation Act Offset Policy to study and review issues relating to changes to forested lands and the effectiveness of the Forest Conservation Act. Defeated.

DEFEATED - HB 458 (Critical Areas) Requires a homeowner of a home located in the State in the Chesapeake and Atlantic Coastal Bays Critical Area to upgrade the home's on-site sewage disposal to utilize nitrogen removal technology before the home can be sold or transferred.

DEFEATED - HB 1086 (Drainage Defects) Requires a builder of a new home to correct a drainage defect within 30 days after receiving written notice of the defect. The bill also expands the definition of “actual loss” for the purposes of the Home Builder Guaranty Fund to include the costs of restoration, repair, replacement, or completion that arise from a “drainage defect.” It also authorizes an owner to pursue a claim for compensation from the Home Builder Guaranty Fund for an actual loss if a home builder fails to correct a drainage defect as required by the bill.

DEFEATED - HB 1390 (Development Rights) Requires a development rights and responsibilities agreement (DRRA) to include a description of the “enhanced public benefit” that supports the agreement and the proposed development of the real property. “Enhanced public benefit” is defined as an improvement that benefits the public and exceeds the improvements a person would be required to provide under local planning, zoning, and environmental laws.
SESSION REVIEW AND INDUSTRY IMPACT

The Maryland Building Industry Association reviewed 357 of the over 3,217 bills introduced by the Senate and the House this year. MBIA took a position on 307 and submitted testimony on 149 bills. In the end, 890 bills were passed by the legislature. We are very proud of the successes we achieved during the 2018 Legislative Session and the MBIA Government Affairs team will continue to work hard on behalf of the building industry to make it easier for you to do your job.
 
DEFEATED - SB 70 Requires the Articles of Organization for an LLC to include personal identifying information, like names and addresses, for each member of the LLC.

PASSED - SB 92/HB 968 Establishes an incentive pilot program to encourage local school systems in Harford, Prince George’s, and Washington counties to pursue innovative, cost-saving public school construction projects. Passed.

DEFEATED - SB 250/HB 580 Prohibits a landlord, in the case of a residential lease with a tenant who receives a government benefit, from including a penalty for the late payment of rent that is imposed before five business days after the date the government benefit is issued.

AMENDED and PASSED - SB 278/HB 546 Alters the prevailing wage law to apply to structures or works, including bridges, buildings, ditches, roads, alleys, waterworks, or sewage disposal plants, funded with certain bond proceeds in certain tax increment financing development districts.

DEFEATED - SB 432/HB 564 Amends various provisions of the Maryland Condominium Act (MCA) and the Maryland Homeowners Association Act (MHAA) to require the governing body of a condominium to meet at least twice a year; and requires the developer to appoint a Board of Directors that includes a unit owner within 30 days from the day 25 percent of the units are conveyed.

DEFEATED - SB 520/HB 832 Makes multiple changes to the process by which a landlord may repossess property for failure to pay rent in Baltimore City, including extending the hearing date and requiring the court to refund charges if the sheriff cannot successfully serve the tenant.

PASSED - SB 755 Allows a lending institution to create an escrow account for water and sewer facilities assessments.

AMENDED and PASSED - SB 821/HB 109 Establishes the Community Development Program in the Dept of Housing & Community Development to provide financial assistance for community development projects and community development organizations around the State.

DEFEATED - SB 837/HB 635 Prohibits a merchant in a consumer contract from extending the period of time during which the merchant may file a civil action against a consumer, and from shortening the period of time during which the consumer may file a civil action against the merchant.

DEFEATED - SB 931/HB 1097 Establishes a mechanism for dispute settlement within Condo and Homeowners Associations, and changes the actions a council of unit owners or board must take before imposing a penalty on a violator.

PASSED SB 960/HB 1230 Requires the Maryland Historical Trust (MHT) to notify an applicant within 90 days of the decision of the Director of MHT on an application for a change or alteration, for general repair and maintenance, to a property subject to a historic preservation easement held by MHT.

PASSED - SB 999 Alters an exemption from the recordation tax by expanding the definition of original mortgagor to include a person that has received property from the original mortgagor under a deed that was exempt from the recordation tax under specified circumstances. The bill alters the definition of business entity to include a limited partnership or statutory trust so that these entities will be exempt from the recordation tax for transfers between specified related business entities. The definitions of owner and ownership interest are altered to include limited partner or beneficial owner and limited partnership interest or beneficial interest, respectively. The bill alters an exemption from recordation tax for specified transfers of a controlling interest.

PASSED - SB 1084/HB 1548 Establishes the Continuing the Creating Opportunities for Renewal and Enterprise Partnership Fund within the Department of Housing and Community Development to assist the department, in conjunction with the Maryland Stadium Authority and Baltimore City, in expeditiously removing blighted property within Baltimore City.

DEFEATED - SB 1192 Authorizes the Baltimore County Council to impose, by ordinance or resolution, development impact fees to finance any of the capital costs of additional or expanded public works, improvements, and facilities required to accommodate new construction or development.

DEFEATED - SB 1209/HB 1158 This bill creates the State Board of Common Ownership Community Managers to regulate the provision of common ownership community property management services in Maryland, and requires an individual to be issued a license by the Board before providing management services for a common ownership community.

DEFEATED - HB 55 Requires a licensed real estate broker, associate broker, or salesperson, when acting as a buyer’s agent on the date of closing, to provide the client with a voter registration application and information on registering to vote in the local jurisdiction.

AMENDED and PASSED - HB 109/SB 821 Establishes the Community Development Program in the Dept of Housing & Community Development to provide financial assistance for community development projects and community development organizations around the State.

PASSED - HB 203/SB 586 Authorizes senatorial or delegate scholarship recipients to use the scholarship to reimburse educational expenses for a certificate or license program at a community college if the recipient is currently enrolled or was enrolled in the last 2 years.

DEFEATED - HB 234 Requires a specified surety bond to be filed in connection with certain development of property, and surety bond to be used by a local jurisdiction to safeguard the property.

AMENDED and PASSED - HB 239 Requires a home builder in Prince George’s County to make a copy of any recreational facilities agreement recorded with the Prince George’s County Planning Department available to prospective purchasers in the sales or management office of a community development. The bill also requires a home builder in Prince George’s County to display specified information in the sales or management office in a location visible to prospective purchasers.

AMENDED and PASSED - HB 546/SB 278 Alters the prevailing wage law to apply to structures or works, including bridges, buildings, ditches, roads, alleys, waterworks, or sewage disposal plants, funded with certain bond proceeds in certain tax increment financing development districts.

PASSED - HB 575 Allows a council of owners of a condominium to suspend of the use of parking or recreational facility elements to an owner that is more than 60 days delinquent in assessments.

AMENDED and PASSED - HB 669 A declarant must have the number of votes equal to the number of lots that have been subdivided, recorded and not yet sold to members of the public when voting on a homeowners association matter, until all lots in a homeowners association have been subdivided and recorded.

DEFEATED - HB 997 Requires a developer to turn over any reserve account records and a specified reserve study when transferring control of a condominium to the council of unit owners. The developer must also turn over a reserve account containing funds equal to at least five times the annual funding amount recommended in the current reserve study report. 

DEFEATED - HB 1021 Prohibits an individual from claiming the residential heritage structure rehabilitation tax credit if the individual’s federal adjusted gross income exceeds $500,000 ($1.0 million if married filing jointly).

PASSED - HB 1234/SB 618 The Division of Workforce Development and Adult Learning must partner with State departments to identify opportunities to create registered apprenticeship programs to help address workforce shortages.

DEFEATED - HB 1381 Requires local jurisdictions to submit an annual report on the enforcement of sediment and erosion control laws to the Maryland Department of the Environment by January 1 of each year. The report must provide information related to specified environmental violations. By March 1 of each year, MDE must report to the Governor and the General Assembly on the information collected under the bill.

DEFEATED - HB 1651 Expands the criteria upon which a sustainable community designation may be based. Under the bill, the Smart Growth Subcabinet may designate an area as a sustainable community based on (1) the proposed sustainable community plan addressing the need for affordable housing, including the need for low- and moderate-income housing, and (2) the existing criteria applicable to every application for a sustainable community designation – the sponsor demonstrating that past and current trends in homeownership, property values, commercial and residential vacancy, and business or housing investment show a need for reinvestment in the area.

AMENDED and PASSED - HB 1765 Authorizes a local jurisdiction to count a reduction in nitrogen from a certain upgrade to an on-site sewage disposal system toward a nitrogen load reduction required in a watershed implementation plan, and allows fee revenue from the Bay Restoration Fund to provide financial assistance to homeowners for pumping out on-site sewage disposal systems.
To discuss any of the above bills or find out how you can become more involved, please contact MBIA CEO, Lori Graf.