2013 Maryland Code
TAX - PROPERTY
§ 7-506 - Governmentally subsidized housing in Baltimore City

§7-506.

(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, and infirmaries.

(2) In this subsection, “urban renewal area”:

(i) means an urban renewal project that is acquired and disposed of by the Mayor and City Council of Baltimore City under the Baltimore City Charter, Article II(15); and

(ii) does not include the Madison Park North, the Madison Park South, and the Mount Vernon projects.

(3) Real property is exempt from Baltimore City property tax if:

(i) the real property is located in an urban renewal area;

(ii) the real property is owned by a person engaged in constructing and operating housing structures or projects; and

(iii) the real property is used for a housing structure or project that:

1. is substantially constructed or rehabilitated on and after July 1, 1973; and

2. is governmentally controlled as to rents, charges, rates of return, and methods of operation so that the real property operates on a nonprofit or limited distribution basis; and

(iv) the owner of the real property and the Baltimore City Board of Estimates agree on the payment that the owner shall make to Baltimore City in lieu of Baltimore City property taxes.

(4) If the structure and facilities of the property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.

(b) Real property described in subsection (a) of this section is exempt from Baltimore City property tax as the parties agree under subsection (a) of this section.

(c) Subject to § 2-1246 of the State Government Article, annually on or before February 1, Baltimore City shall report to the General Assembly on the effect and operation of all agreements adopted during the previous year under this section.

§ 7-506 - 1. Governmentally subsidized housing outside Baltimore City

(a) Requirements for exemption. --

(1) In this subsection, "service facilities" includes nondwelling commercial and community facilities, community rooms, dining halls, infirmaries, child and adult day care facilities, and drug rehabilitation facilities.

(2) Except in Baltimore City, real property may be exempt from county and municipal corporation property tax if:

(i) the real property is owned by a person engaged in constructing or operating housing structures or projects;

(ii) the real property is used for a housing structure or project that is constructed or substantially rehabilitated under a federal, State, or local government program that:

1. funds construction or insures its financing in whole or in part; or

2. provides interest subsidy, rent subsidy, or rent supplements;

(iii) the owner and the governing body of the county and, where applicable, the municipal corporation where the real property is located agree that the owner shall pay a negotiated amount in lieu of the applicable county or municipal corporation property tax; and

(iv) the owner of the real property:

1. A. agrees to continue to maintain the real property as rental housing for lower income persons under the requirements of the government programs described in paragraph (2)(ii) of this subsection; and

B. agrees to renew any annual contributions contract or other agreement for rental subsidy or supplement; or

2. enters into an agreement with the governing body of the county or municipal corporation to allow the entire property or the portion of the property which was maintained for lower income persons to remain as housing for lower income persons for a term of at least 5 years.

(3) If the structure and facilities of the real property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.

(b) When exemption begins. -- Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.

§ 7-506 - 2. Housing for low to moderate income households

(a) Requirements for exemption. -- Real property may be exempt from municipal corporation property tax if:

(1) the real property is owned by:

(i) a former tenant of the real property;

(ii) an association of tenants or former tenants of the real property;

(iii) an entity in which former tenants or an association of tenants or former tenants holds a majority interest; or

(iv) a cooperative housing corporation that:

1. operates on a nonprofit basis;

2. operates on a limited equity basis; or

3. is subject to controls on the corporation's rates of return;

(2) the owner and the governing body of the municipal corporation where the real property is located agree that the owner shall pay a negotiated amount in lieu of the applicable municipal corporation property tax; and

(3) the owner of the real property agrees to maintain at least 10% of the total number of residential units as housing for low to moderate income households, as set forth in an agreement between the owner and the governing body of the municipal corporation where the real property is located.

(b) When exemption begins. -- Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.