HB0805, the Building Homes Act, authorizes Baltimore City and county or municipal governments to create a local property tax credit for certain affordable housing dwellings. The credit applies to a dwelling that is financed by a nonprofit entity and is subject to a mortgage or deed of trust, along with a legally binding covenant or agreement lasting at least 20 years that restricts income, equity, or appreciation and preserves affordability, including on resale.
The bill sets the maximum credit as the difference between the property tax on the dwelling’s full assessed value and the tax attributable to the portion of value the homeowner is responsible for paying on the first mortgage or deed of trust. Local governments are given discretion to decide whether to adopt the credit and, if they do, to establish the credit’s duration, additional eligibility rules, application procedures, and other implementation details. The act takes effect June 1, 2026, and applies to taxable years beginning after June 30, 2026.
HB0805 adds new Section 9-276 to the Tax-Property Article of the Maryland Code, creating express authority for Baltimore City and local governments to enact a property tax credit for qualifying affordable dwellings. The bill does not mandate a statewide credit; instead, it enables local jurisdictions to reduce property tax burdens on nonprofit-financed homes that remain subject to long-term affordability restrictions. Its practical effect is to support affordable homeownership and resale-restricted housing by lowering local property tax liability for eligible properties.
The available record shows no committee transcript excerpts or recorded votes, so there is no documented debate or opposition in the provided materials. The bill’s enactment and gubernatorial approval suggest it moved through the legislative process successfully and without any visible controversy in the supplied context. Overall, the measure appears to have been treated as a housing-affordability policy with broad acceptance.
No specific points of contention are reflected in the provided transcripts or voting history. Based on the bill text alone, any potential debate would likely center on local discretion, the fiscal impact of property tax credits on county and municipal revenues, and the scope of eligibility for nonprofit-financed affordable housing. However, none of those issues are documented in the materials provided here.