Subject
title
Consideration of 2024 State Legislation
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Department
City Manager's Office (CMO)
Recommendation
Staff recommends the Mayor and Council consider 2024 State legislation and provide direction to staff.Discussion
During the annual General Assembly Session staff forwards summary information and recommendations for action on State legislation that align with Rockville priorities and/or have impact to the City. At the time of the preparation of this staff report (1/31/24), staff is continuing to review and assess bills with impact. Recommendations on the bills previewed in this report are still under development and will be forwarded to the Mayor and Council via email in advance of the February 12 meeting. The information will be posted to the agenda center so that it is accessible to the public.
With the Senate bill introduction deadlines of February 5 for the House and February 9 for the Senate, other bills that that have yet to be introduced are not available. The following information is an initial preview of bills that staff is bringing to the Mayor and Council’s attention.
Governor Moore’s Housing Package has been introduced and will be a major focus of the General Assembly Session. At Attachment A is an informational overview of the bills from the Office of Governor Moore that was created for the Maryland Municipal League. At attachment B is a power point presentation from the Governor’s staff that was provided to the Maryland Municipal League’s Legislative Committee. These documents provide details regarding the purpose and elements of the legislation.
Governor Moore introduced the trio of bills to address the housing shortage of 96,000 units in Maryland. The Administration views the package as a holistic approach to addressing Maryland’s Housing Crisis. It contains three main elements: 1) increases funding for housing 2) reduces barriers to new construction and 3) provides for protections for Maryland’s most vulnerable renters.
SB 481/HB693 - Renters Rights and Housing <https://mgaleg.maryland.gov/2024RS/bills/sb/sb0481F.pdf> Stabilization Act of 2024
The following information highlights some of the new protections provided in the legislation for renters including:
• The establishment of an Office of Tenant Rights to serve as an advocate for renters; provides education on tenant rights under the law and how to execute them; and provides enforcement for landlords that are out of compliance with local, state and federal housing laws.
• The Office of Tenant Rights would create a Tenant’s Bill of Rights that would be provided to all tenants as part of their lease.
• Raises eviction filing fees to discourage unwarranted eviction.
• Reduces the allowable security deposit in Maryland from two months to one month’s rent.
The Senate bill hearing is scheduled for February 16. The House hearing has not yet been scheduled.
MML did not take a position on the legislation. Staff is reviewing the bill for impact and will forward a recommendation on a potential position prior to the February 12 meeting.
SB 483 - Housing and Community Development Financing Act of 2024
<https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0483>
The following highlights the main elements of the legislation:
• Establishes the Maryland Community Investment Corporation which is a new Community Development Entity that would be certified by the United State Treasury to channel Federal investment into low-income communities in Maryland.
• Expands the eligible costs for which a grant or a loan can be issued to a local government or community development organization under the Strategic Demolition and Smart Growth Impact Fund to include debt payment and credit enhancements. Current law authorizes pre-development activities.
The House hearing is scheduled for February 20. The Senate hearing has not yet been scheduled.
MML is supporting the legislation. Staff is reviewing the bill for impact and will forward a recommendation via email on a potential position prior to the February 12 meeting.
SB 484 - Land Use - Affordable Housing - Zoning Density and Permitting (Housing Expansion and Affordability Act of 2024)
<https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0484>
The following highlights the main elements of the legislation:
• Provides density bonuses to encourage new construction of affordable housing units in targeted areas including former state-owned complexes (5 municipalities impacted - none in Rockville), rail transit areas within a mile of a station (23 municipalities impacted- includes Rockville), and land owned by nonprofits.
• Expands single-family residential zones to include manufactured homes if it will be attached to a foundation.
• Adequate Public Facilities Ordinances cannot be used to deny a permit for affordable housing projects financed by Low Income Housing Tax credits or other affordable housing financing programs managed by the State’s Department Housing and Community Development. This provision would be sunset in fifteen years.
• Limits public engagement in the development process by limiting public hearings to one each before the local governing body, the Planning Commission, a historic commission, and the Board of Appeals
MML took a support with amendment position on the legislation. Staff is analyzing this extensive bill and is assessing the impact. A recommendation will be forwarded to the Mayor and Council via email in advance of the February 12 meeting.
Next Steps
Staff will forward completed recommendations for the legislation in the report and share additional information on any new bills of interest that are introduced prior to the February 12 meeting. For any bills that the Mayor and Council choose to take a position, staff will work with the designated Mayor and Council member to draft and finalize testimony. Rockville’s State lobbyists will assist the City with testimony sign-ups and submittals to General Assembly committees.