Maryland Department of Housing and Community Development Celebrates Passage of Legislation and Budget to Increase Housing Production and Affordability, Support Homeless Solutions, and Improve Service to Small Businesses

NEW CARROLLTON, MD (May 26, 2026) – Working with the Maryland General Assembly during the 2026 legislative session, the Moore-Miller Administration and the Maryland Department of Housing and Community Development have secured passage of the Maryland Transit and Housing Opportunity Act and the Maryland Housing Certainty Act, key legislation to address Maryland’s housing crisis. This new housing legislation is accompanied by a Fiscal Year 2027 budget that supports the Department’s robust affordable housing investment and safeguards funding for homelessness services. The Department also secured passage of legislation to reduce the time required to approve and award funds to new and expanding small businesses.

“The 2026 legislative session proved that when we choose partnership, we can deliver real results for our people,” said Gov. Moore. “The bills we are signing today will make Maryland more affordable, protect the dignity of work, and invest in our children’s futures. While this marks the final bill signing of our administration’s first term, our work to leave no one behind is far from over. We will continue to build a state that is safer, stronger, and more competitive for every Marylander.”

“To reduce housing costs in Maryland, we must build more homes. With Governor Moore’s leadership, our department worked in partnership with the Maryland General Assembly and stakeholders to pass legislation that will stimulate housing production, including statewide reforms to permitting processes and unlocking state-owned land for potential transit-oriented housing development,” said Maryland Department of Housing and Community Development Secretary Jake Day. “This is a proud moment. We’re grateful for the support of our partners and this win, but significant steps are still needed to address Maryland’s housing shortage, increase affordability for our residents, and spur economic growth in our state. Our team is already preparing for the 2027 session.”

Introduced by the Administration, House Bill 894: Land Use – Transit-Oriented Development – Alterations (Maryland Transit and Housing Opportunity Act) seeks to increase housing development near rail stations. Per the legislation, any area designated as “Transit-Oriented Development” by the Maryland Department of Transportation (MDOT) automatically receives an additional designation as an “Enterprise Zone.” To promote higher-density development, the Maryland Transit and Housing Opportunity Act reforms statewide zoning to eliminate minimum parking requirements within .25 miles of a rail station and to allow mixed-use development within 0.5 miles of a station.

The act also empowers the Department of Transportation to partner with local governments on development plans for state-owned land, but prevents local governments from putting zoning restrictions on those properties. It is estimated that land currently owned by MDOT in the Baltimore region and along the MARC Penn Line railway could support development of 7,000 housing units and generate $1.4 billion in State and local tax revenue.

“The Maryland Department of Transportation is excited to continue partnering with local communities and accelerate development near transit stations that will create more housing, lower costs for families, spur economic development and connect Marylanders to opportunities,” said Maryland Transportation Secretary Katie Thomson. “I join in thanking Governor Moore for his leadership on the Maryland Transit and Housing Opportunities Act. The Department is utilizing these new tools to expedite transit-oriented development, provide economic mobility for families across Maryland and new opportunities for developers.”

House Bill 548 / Senate Bill 325: Land Use – Permitting – Development Rights (Maryland Housing Certainty Act) improves clarity and predictability in Maryland’s housing development processes. Sponsored by Senator Malcolm Augustine and Delegate Dylan Behler, the legislation effectively changes permitting approval to make Maryland an “early vesting” state, where once a housing development project is approved, for a five-year period, it is only subject to the laws and regulations in effect at the time the application for the project was submitted. This change prevents local jurisdictions from changing requirements or regulations during development that often delay or derail housing production.

The Maryland Housing Certainty Act also delays payment of impact fees and other similar costs to the local jurisdiction by the developer until the property is ready for occupancy rather than at the start of construction. These up-front payments often require additional financing that accrues interest, which increases total development costs, often resulting in higher monthly mortgage and rent payments. By clarifying processes and reducing development costs, the Maryland Housing Certainty Act will encourage faster, less expensive housing development in Maryland, increasing both supply and affordability.

“Maryland’s housing crisis demands urgency, but it also demands certainty. The Housing Certainty Act gives developers and communities a more predictable path forward so we can accelerate the construction of homes Marylanders can actually afford,” said Senator Malcolm Augustine. “By reducing burdensome processes and upfront costs, this bill will help increase housing supply, lower barriers to development, and keep more families in our state.”

“I’m a renter myself, and for too many Marylanders, homeownership, or even finding an affordable place to rent, feels increasingly out of reach,” said Delegate Dylan Behler. “The Maryland Housing Certainty Act is about cutting red tape, creating greater certainty in the housing approval and building process, and making it easier to build more homes faster and at lower cost. If we want to bring down housing costs, we have to increase housing supply — and the Maryland Housing Certainty Act will do just that.”

Additionally, the Department’s Fiscal Year 2026 budget includes $205.4 million for housing programs and $123.1 million for State Revitalization Programs, supporting key Department objectives to make lovable places and expand affordable housing. It also appropriates $73.4 million for programs through the Department’s Division of Homeless Solutions, including $5 million to support Permanent Supportive Housing.

“While the department works to expand housing opportunities and affordability for all Marylanders, we continue our efforts to make sure those facing or experiencing homelessness have access to the shelter and services they need,” said Maryland Department of Housing and Community Development Assistant Secretary of Homeless Solutions Danielle Meister. “I’m grateful the budget crafted and passed by Governor Moore and the General Assembly maintains these critical resources for homelessness prevention.”

The Department also secured passage of House Bill 235: Housing and Community Development – Neighborhood Business Development Program – Local Approval Requirement, which changes processes related to Neighborhood BusinessWorks, the agency’s flagship small business assistance program. The program provides gap financing and other assistance to new and expanding small businesses that cannot be secured through traditional lenders. Under the new legislation, the waiting period for local government approval of a program award will be reduced from 45 days to 15 days.

“Successful small businesses are essential for successful communities. In addition to serving as the economic engines for our state, small businesses generate local pride and become essential parts of their communities’ identity and character,” said Maryland Department of Housing and Community Development Assistant Secretary of Business Development Brad Fallon. “By streamlining processes and reducing wait times, our small business partners will receive important capital much more quickly. This legislation makes the Business Lending Program faster and more effective.”

Visit the Maryland Department of Housing and Community Development website for more information about the agency and its programs.

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