Income Tax – Angel Investor Tax Credit for Investments in Emergent Technology
HB1128 expands the powers of Maryland land bank authorities, which are public entities used to acquire, manage, and repurpose vacant or distressed property. The bill authorizes certain land bank authorities to create special funds, make loans or grants, and enter into partnerships to help finance projects that further the purposes of the land bank subtitle. It also requires that when a land bank sells, leases, transfers, or otherwise disposes of property, the transaction include an agreement setting terms for property maintenance, intended use, and other conditions the authority deems appropriate.
The bill further gives land bank authorities stronger enforcement tools. It allows them to reenter property and retake possession if a purchaser breaches the required agreement, fails to obtain permits, does not diligently pursue construction or rehabilitation, or misses agreed completion deadlines. In addition, if a county or municipal corporation authorizes it by law, a land bank authority may file and pursue an in rem foreclosure action against qualifying vacant or unsafe property under the Tax-Property Article, and the bill updates related foreclosure procedures to recognize land bank authorities as potential filing and receiving entities.
HB1128 amends provisions in the Local Government Article and Tax-Property Article to expand the legal authority of land bank authorities in Maryland. It changes the statutory framework governing land banks by adding financing powers, partnership authority, property disposition conditions, reentry rights, and the ability to conduct in rem foreclosure actions when locally authorized. The bill also updates foreclosure notice, filing, and judgment provisions to allow land bank authorities to act in place of counties or municipal corporations in designated circumstances, affecting owners of vacant, unsafe, or tax-delinquent properties and the local governments that oversee land bank programs.
The bill appears to have been received favorably in the House, with the committee report marked favorable and the House adopting the measure. The recorded floor vote was 99 yeas to 38 nays, indicating overall support but not unanimity. No committee transcript excerpts were provided, so the available record suggests broad legislative approval with some opposition, likely tied to the bill’s expansion of land bank powers and foreclosure authority.
The main points of contention likely center on the expanded authority granted to land bank authorities, especially the ability to create special funds, leverage private investment, make loans or grants, enter partnerships, and reenter property after a purchaser default. Another likely area of concern is the authorization for land bank authorities to initiate in rem foreclosure actions, which can affect property rights and due process interests for owners of vacant or tax-delinquent property. Supporters would likely view these powers as tools to accelerate redevelopment and address blight, while opponents may worry about government overreach, foreclosure practices, and the transfer of property control away from traditional county or municipal processes.