Bill > HB1128

This bill expands the powers and authority of land bank authorities in Maryland, allowing them to create special funds to leverage private investment, make loans or grants, and enter into partnerships to accomplish their objectives. The legislation enables land bank authorities, with county or municipal authorization, to foreclose on certain properties through an in rem foreclosure action, which is a legal procedure to transfer ownership of vacant or unsafe properties that have delinquent taxes. When selling or transferring property, land bank authorities must now include agreements specifying property maintenance, intended uses, and other conditions. The bill also provides that if a property purchaser breaches the agreed-upon terms—such as failing to obtain permits, not pursuing construction, or not completing improvements by the specified time—the land bank authority can re-enter the property and terminate the purchaser's interest. Specifically, the properties eligible for this process must be vacant lots or improved properties cited as unsafe or unfit for habitation, with total unpaid tax liens exceeding the property's value. The new provisions aim to help local governments more effectively manage and rehabilitate abandoned or neglected properties, with the law set to take effect on October 1, 2025.

Education, Transportation and Infrastructure

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1128?ys=2025RS