Community Development Network of Maryland


Legislative Wrap-up April 14, 2016
CDN Members and Friends:
The Maryland General Assembly is now over, and community development legislation and  budget items were front and center this Session. Below is our report on CDN's legislative and budget priorities, as well as additional legislation CDN supported.

Thanks to everyone who sent in letters and contacted their legislators! It makes a difference!

I will be traveling across the state for CDN's regional meetings and housing counseling regional roundtables to talk about the results of the General Assembly. Check out the calendar on our website for those meetings.  See you then!

Significant Community Development Legislation Passed
HB326 Expands the Neighborhood BusinessWorks Program. The Maryland Department of Housing and Community Development introduced legislation to expand the Neighborhood Business Works (NBW) program, which CDN supported and worked to pass. This program provides low interest financing to small businesses in neighborhood corridors to enhance neighborhood revitalization, provide jobs, and increase small business. The legislation authorizes the Department to issue revenue bonds to expand the lending from $5 million to potentially $50 million in the next few years. The legislation also allows the program to be in Priority Funding Areas, not just Sustainable Communities (with language about making sure the funds do not leave the Sustainable Communities Areas). More importantly, the legislation changes the way local resolution works for the NBW and Community Legacy programs. The Department gives the local jurisdiction notice of the project, and they have 45 days to approve or not, and if they don't respond in 45 days, then it is an approval. CDN supported this legislation with letters, testimony and negotiations.

HB686 Codifies and expands Strategic Demolition and Smart Growth Impact Fund. Delegate Hammen (Baltimore City) introduced this legislation to codify the Strategic Demolition and Smart Growth Impact Fund which the Maryland Department of Housing and Community Development has had in the budget for several years. It also codifies the Governor's commitment of significant funding for demolition in Baltimore City and adds another $3.5 million for demolition, site stabilization etc. for the rest of the state. Mandated amounts are established starting FY2017. CDN supported this legislation with letters and testimony. Although the Governor said he would veto mandated spending, he did not veto this legislation!  

HB684 Codifies and expands the Baltimore Regional Neighborhood Initiative. Delegate Hammen and others introduced legislation that mandates $12 million in operating and capital dollars for the Baltimore Regional Neighborhood Initiative (BRNI) which has been in place for three years. It was previously funded at around $3 million for capital and $750,000 for operating. Now more communities in Baltimore and Inner Beltway will be eligible to apply for this funding, and the current projects can keep and expand their funding. This program is used for strategic investments to revitalize neighborhoods in these areas. The $12 million will be included in the budget each year starting FY2018 through FY2022. CDN was proud to support this legislation, which the Governor has moved forward. Local resolution requirement has been removed from this program, so there will be notice and comment process instead.

HB1476 provides a mandate to fund the Shelter and Transitional Facilities Grant program at $3 million per year starting in FY2018. This program provides capital match funding for permanent supportive housing, shelters and transitional housing. It is the only program at the state available for permanent supportive housing. The program had been funded at $1.5million each year, with $6million in the pipeline. The Governor has not taken action on this one yet, we are hopeful!  CDN was proud to work with advocates and Delegate Jalisi (Baltimore County) on this effort.

HB1400 Creates and funds the Seed Community Development Anchor Institution FundThis new fund, created with legislation sponsored by Delegate Glenn (Baltimore City), provides $5 million in grants and loans for anchor institutions for community development projects in blighted areas of the state. Anchor institutions include major hospitals and institutions of higher education. The program is funded until 2022. The funding must be matched from a private source and is distributed on a competitive basis. CDN supported this legislation and it has been enacted by the Governor.

SB322 Promotes the use of the Homeowner's Tax Credit. Senator Pinsky (Prince George's County) and advocates passed legislation to require the Comptroller to notify families who are eligible for the Homeowner's Tax Credit who have not used the credit in the past three years, that they are eligible for the credit. This is important legislation to ensure all families eligible, particularly senior citizens, are eligible for the credit. This legislation awaits the Governor's signature. CDN supported this bill with written testimony.

HB1010 and HB1013 change transit operations and funding decisions. HB1010 was introduced by Delegate Lierman (Baltimore City) to create a planning and oversight board for the Maryland Transit Authority (MTA). This Board does not make funding decisions, but assists with performance of the systems. This bill passed both chambers and awaits the Governor's signature. HB1013 sponsored by Delegate Beidle (Anne Arundel County) changes the way decisions are made related to state transportation funding by creating a scoring system by which projects have to be measured to receive funding. This bill was vetoed by the Governor but the General Assembly overrode his veto.

CDN Priority Legislation Falters, but good foundation for next year.
HB1274 Community Development Fund Act is on hold until next year. CDN worked with legislators to negotiate a new funding source (because the original source in the bill would not be approved by the legislators). We needed more time to garner support for the new version, and decided that working over the summer would be best. Thanks to Delegate Darryl Barnes (Prince George's County), Chairwoman Sheila Hixson (Montgomery County) and Senator Andrew Serafini (Washington County) for your leadership in this dialogue. Thanks to our members and friends for sending in letters and contacting legislators. It really made a difference! Community Development Week will be the start of our campaign to get this critical legislation that provides operating funding for community development passed. 

HB759 The HOME Act would have ended discrimination based on the source of income in housing in Maryland. Several factors went in to the decision to hold this legislation for the future. It is a much needed piece of legislation CDN will work on in future years. Thanks to Delegate Lafferty (Baltimore County) and Delegate McIntosh (Baltimore City) for sponsoring, and to the statewide HOME Act coalition.

HB395 would have required insurance companies to give notice to homeowners and business owners about the state's insurance of last resort if coverage was denied. In negotiations with the industry, they wanted to try to think about educating consumers on the options, rather than this legislation. Thanks to Delegate Lafferty for taking this on!

HB508/SB330 would have required banks to file the deed of sale 30 days after a foreclosure.  All foreclosure legislation introduced this year was sent to Summer Study. There were several bills designed to open up the Foreclosed Property registry as well. Critical thinking has to be done around the issue of the vacant properties after the foreclosure. Senator Conway (Baltimore City) and Delegate Lafferty were the sponsors.

HB1080 was the result of several conversations regarding common ownership communities challenges with fee delinquencies. The legislation changed the definition of "good standing" for votes within common ownership communities associations, making sure that only owners who are current on their fees can vote, and also change the quorum requirements. Thanks to Delegate Cullison (Montgomery County) for her help on this!

HB201 was the LLC transparency legislation designed to try to gain more accountability for problem LLCs. The Economic Matters Committee voted this down early in session. We are unsure if we will take this one on next session. Thanks to Delegate Lafferty for sponsoring.

FY2017 Community Development Budget summary
Thanks for all your calls and emails related to the community development budget. It was a complicated year for the community development capital budget, as most of it was moved to the general funds budget. 

Here is our chart of what happened this year:. 

What we wanted
Final Capital Budget
Final General Funds budget
Community Legacy
$10 million capital funds
(increase from $6million in FY2016)
$6million total
Baltimore Regional Neighborhood Initiative
$6 million (increase of $3million from FY2016)
$1.5million capital
$750,000 operating
$2,861,199 capital
$750,000 operating
Rental Housing Works
$25 million (up from $20million)
$2.5 million
(with intent language for full funding in future years)
Shelter and Transitional Housing Grant program
$5million (up from $1.5million)
$1.5 million
Strategic Demolition and Smart Growth Investment Fund
$7.5 million capital funds
(level funding from FY2016)
$3.5million capital for other parts of the state
$18million Baltimore City
$3.5million other parts of the state
$18million Baltimore City
Neighborhood Business Works
$4.5 million capital and operating
(level funding from FY2016)
Nonprofit Assistance Fund
$1million (up from $600,000)
$700,000 (special funds)
$700,000 (special funds)
Rural Maryland Prosperity Fund
$6million (never been funded before)
Maryland Community Action
$1million (not funded previously)
$150K each
$150K each
$150K each

Maryland Housing Counseling Fund - about $4-5 million will be available for distribution for FY2017.

Please note, several of these line items have been codified and mandated in legislation (BRNI, Strategic Demolition, Shelter, NBW). CDN will monitor those funding sources that are not codified and mandated to ensure full funding in the future.

As always, please let me know if you have questions or thoughts on any of the items in this e-newsletter.  We want to hear from you!  

Odette Ramos
Executive Director
Community Development Network of Maryland



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Other legislation that CDN was tracking and supported


HB275 expands the Community Investment Tax Credit program from $1.75 million in tax credits to $3.5 million in tax credits. No action was taken on this bill.


SB737 provides tax incentives and opportunities for businesses to move into rural areas of Maryland. There was no action on this bill.


HB538 requires banks to notify the family if the foreclosure sale is canceled or postponed. This legislation passed the House with no opposition, and died in the Senate Judicial Proceedings Committee.


HB1061 created a registry for common ownership communities. This legislation passed the House, and no action in the Senate.


EITC expansion. CDN supported the three peices of legislation expanding the EITC. none were enacted after lots of negocations. One of the versions had a tax cut for the middle class included in it.

About CDN 


The Community Development Network of Maryland's purpose is to promote, strengthen and advocate for Maryland's community development industry.


CDN is a statewide member organization made up of over 180 member organizations across the state. CDN represents the critically important nonprofit, small developer and community based organization members of the industry. 


Find out more on our website here.

Other CDN News:
--Save The Date:  October 17-26, 2016 Maryland Community Development Week (CDN's Annual Meeting will be during this week!)

--Check out the CDN website for updates on meetings, the member spotlight, and new jobs have been posted on the Job Board.  

Find out more on our website here.

Community Development Network of Maryland | P.O. Box 22426 | Baltimore | MD | 21203