Gov. Wes Moore, in a personal pitch for one of his top policy priorities this year, told lawmakers Tuesday they should pass a trio of bills to incentivize the development of new affordable housing, protect renters and rake in millions of federal dollars to solve Maryland’s housing shortage.
“Maryland is facing a true housing crisis,” said Moore, a Democrat whose administration pegs the housing shortage in the state at a “conservative” 96,000 units.
“That crisis is not just hurting some of us,” he said. “That crisis is impacting all of us, no matter where we call home, no matter where our districts are. Every single Marylander is feeling not just a pinch, but a real crunch.”
Moore’s direct appeal to lawmakers — in a House committee where some asked probing questions — was his first time testifying on parts of the 16-bill package he sponsored this year.
After eight years of former Republican Gov. Larry Hogan declining to testify on his legislative priorities before the Democratic-majority House and Senate, lawmakers of both parties celebrated Moore’s change in tactic when he began testifying last year. Though they passed all 10 of his bills in 2023, they significantly scaled back some of the proposals, including on the minimum wage and tax cuts for veterans.
The governor, in a renewed and forceful theme for his second year in office, has promised to work closely with the legislature. He told its members Tuesday he was testifying “not just as the chief executive but … as your colleague.”
Questions about ‘downstream impacts’
His constantly positive approach came into play during the committee meeting when faced with some skeptical questions by lawmakers of both parties who are concerned about how increasing housing density could put pressure on public services like schools and infrastructure.
“That brings me to pause,” said Republican Del. Ryan Nawrocki, of Baltimore County, “How do we deal with these communities when we’ve frankly been fighting to get adequate public facilities and this could maybe make that worse in some communities?”
Moore responded by saying he’s worked closely with local governments to ensure the provision to increase density “doesn’t have downstream impacts.”
As he did a few times throughout the hearing, he also added in a personal appeal — saying his legislation is designed not just for the lowest-income individuals but for people like a police officer in Baltimore County who’s making a $65,000 salary and has a stay-at-home spouse who’s raising their children. In other moments, he made the case that affordable housing would help public servants like teachers and school bus drivers.
Another Baltimore County lawmaker, Democratic Del. Michele Guyton, said she was concerned about creating new areas of concentrated poverty. Speaking to Housing Secretary Jake Day later in the hearing, Guyton also said she has questions about whether the housing would draw new residents to her communities or simply provide more affordable housing to those who are already there.
“What I’m not sure I believe is that they’re already living in my district and utilizing my schools. I’m sorry if that sounded harsh but I think that’s the question. That’s what constituencies are worried about. Not whether they’re in the state. We know they are and we want to do something about that,” Guyton said.
What the bills do
Moore’s three bills would make multiple zoning, regulatory and financing changes to incentivize housing development.
The most robust zoning-focused plan, dubbed the Housing Expansion and Affordability Act, would allow for development in higher-density areas and prevent local governments from setting “unreasonable” limits or requirements that threaten the viability of new development.
The density provisions would require local governments to allow developments that have a certain percentage of “affordable” units that are planned within one mile of a passenger rail station, on property owned by a nonprofit organization and on property previously owned by the state. Units are considered affordable if a household that earns 60% or less of the area median income can spend 30% or less of its income on housing costs.
The bill would also require local governments to allow for the placement of “manufactured homes” — smaller residences that are transportable – in areas that are zoned for single-family residences.
Another bill, the Housing and Community Development Financing Act, would establish a new entity responsible for applying for federal tax credits and then facilitating investments, loans and financial assistance for development and low-income communities.
Called the Maryland Community Investment Corporation, it would be set up as a Community Development Entity, which can apply for tax credits that can be used to subsidize 15% to 20% of commercial and mixed-use development projects, according to a housing policy brief from the governor’s office.
“Our bill will be a magnet of tens of millions of dollars in federal money that is out there right now and that is ready for the taking,” Moore said.
The bill would also give local governments more flexibility to use an existing state fund that provides grants and loans for pre-development work like demotion or engineering.
Moore’s third bill focuses on renters. The Renters’ Rights and Stabilization Act would establish a new Office of Tenants Rights within the Department of Housing and Community Development. As an advocate for renters, the office would outline and publish a Maryland Tenants Bill of Rights but would not be allowed to create new rights. Maximum filing fees in eviction cases would also be increased — from what the administration calls the nation’s lowest — from $8 to $93, and it would prohibit landlords from passing the fee on to residents.
Other housing funding
The governor’s bills would not require an influx of state funding to immediately bolster development at a time when the state is facing a looming multi-billion-dollar deficit and Moore has pitched fiscal discipline. Still, his proposed budget would spend $290 million on housing and community development projects in the fiscal year starting July 1, a 65% increase from the previous year.
Larger investments would come in the form of doubling a state program — to $110 million — called Rental Housing Works that supports the development of affordable housing. Another $26 million would go to homeownership and rental programs that provide housing assistance and help with construction and home improvements.
The budget further calls for more than doubling the state’s investment in Project C.O.R.E, which demolishes or rehabilitates vacant structures in Baltimore. Mayor Brandon Scott, a Democrat, has praised the proposed $50 million allocation as a way of putting the city on track to fulfill his $3 billion, 15-year plan to address the thousands of vacant properties.
Democratic lawmakers who control supermajorities of both chambers of the General Assembly have generally been supportive of Moore’s budget and housing plans but must amend, approve or reject them before the session ends April 8. Moore has not announced if or when he will testify again in the coming weeks.
