Tax Sales - Homeowner Protection Program - Funding and Alterations
Summary
HB953 makes several changes to Maryland’s Homeowner Protection Program, which is designed to keep vulnerable homeowners out of the private tax lien sale process and help them resolve delinquent property taxes while staying in their homes. The bill requires county tax collectors with websites to post a concise description of the program and a direct application link in a conspicuous location, making the program easier to find and access online.
The bill also expands reporting requirements for the State Department of Assessments and Taxation and the State Tax Sale Ombudsman. The Department must collect and report additional county-level tax sale data, including the number of real property tax accounts, delinquent accounts, and interest collected on overdue property taxes, as well as more information about dwellings withheld from tax sale for low-income, elderly, or disabled homeowners. The annual report must now also include data on voluntary donations made through the website, the balance and accounting of the Homeowner Protection Fund, and related program implementation details.
Impact
HB953 amends several provisions in the Tax-Property Article governing tax sales, the Homeowner Protection Program, and the Homeowner Protection Fund. It removes the Department’s authority to charge interest on unpaid taxes owed by homeowners enrolled in the program and clarifies that no additional fees or costs may be imposed beyond the taxes owed. It also directs the Ombudsman to actively maximize enrollment through outreach, screening, and encouragement of eligible homeowners, and it changes how canceled enrollments are handled by preserving the lien until transfer of ownership but delaying enforcement until then.
On the funding side, the bill changes the program’s financing structure by requiring annual State budget appropriations and creating a mandatory county-government contribution to the Homeowner Protection Fund, allocated among counties based on their share of statewide real property accounts. The Fund remains the exclusive source of program funding and may be used only for program-related expenses.
Sentiment
The bill appears to have broad legislative support. It passed the House 133-3 and the Senate 47-0, indicating strong bipartisan approval and little recorded opposition. The lack of committee transcript material suggests no major public controversy is reflected in the available record, and the vote totals point to a generally favorable view of the bill’s homeowner-protection goals.
Contention
The main policy tension in HB953 is funding responsibility and the scope of county obligations. The bill requires counties collectively to contribute $1,000,000 annually to the Homeowner Protection Fund, with each county’s share based on its number of real property accounts and paid from interest on overdue county property taxes. That requirement may be a point of concern for county governments, especially because the bill also increases reporting and administrative expectations tied to tax sale practices. Another potential point of contention is the bill’s restriction on charging interest to enrolled homeowners, which favors participant relief but reduces the Department’s ability to recover costs through interest.