Legislative Update: 2026 Housing Wrap-up
Yesterday was an exciting day for the Industry and for Housing.
The 2026 Maryland General Assembly delivered a strong set of wins for housing, advancing measures that improve development predictability, expand financing tools, strengthen rental access, and support revitalization in communities across the state. Together, these actions create a more stable, efficient, and opportunity-rich environment for building and preserving the homes Maryland needs. We will be sending out more detailed information in the coming days, but wanted to get information out to our valued membership as soon as possible.
Your membership and support made these victories possible.
Note: this is just a snap shot, we will send out more information in the upcoming days.
2026 Maryland General Assembly Housing Wrap-Up
Pro-Housing Bills That Passed:
HB548 / SB325 – Maryland Housing Certainty Act
What it does:
- Locks in the rules at the time a complete development application is submitted, preventing mid-process regulatory changes.
- Grants vested rights for at least 5 years, giving builders predictable timelines and reducing risk.
- Defers certain development and impact fees until after construction to improve project financing and keep capital flowing.
Why it matters: This is the session’s biggest win for housing production. It directly addresses Maryland’s chronic unpredictability in permitting and helps accelerate new units.
HB1216 – Insurance- Certificates of Guarantee for County Bond Requirements (All Counties)
What it does:
HB1216 creates a new statewide option allowing insurance companies to issue “Certificates of Guarantee” that counties may accept in place of traditional development bonds. These guarantees can be used to satisfy county requirements for:
- Subdivision bonds
- Public improvements bonds
- Performance guarantees
- Other local development-related bonding obligations
Why it matters: Expands the types of financial instruments developers can use to meet county bonding requirements.
HB894 – Maryland Transit and Housing Opportunity Act
What it does:
- Modernizes how Maryland designates and supports transit oriented development areas
- Expands tools that help local jurisdictions attract mixed-use and residential development in walkable, infrastructure-served locations
Why it matters: This bill complements the Certainty Act and other pro-housing measures by improving the regulatory environment for housing
SB829 / HB1137- “Bring Back Main Street”
What it does:
- Will study and recommend laws that require local jurisdictions to allow certain residential and mixed-used developments in Commercial zones.
Why it matters: this bill reinforces the 2026 session’s theme: more tools, more predictability, and more pathways to get housing built.
Bills that were defeated by the industry that would have been harmful to housing:
Common Themes Across These Bills
These proposals would have introduced one or more of the following impacts:
- New or duplicative environmental, flood-risk, or permitting reviews that could extend timelines.
- Additional fees, surcharges, or bonding requirements that increase the cost of building homes.
- Land-use restrictions or down-zoning that reduce opportunities for infill, redevelopment, or mixed-use housing.
- Expanded local veto points or procedural hurdles that reduce predictability for builders and lenders.
- New compliance mandates that disproportionately affect small and mid-sized builders.
- Operational requirements that could raise long-term costs for housing providers.
|
Bill |
Bill Title |
Primary Issue Area |
Why It Was Viewed as Harmful to Housing |
|
SB225 |
Environment – Interjurisdictional Watersheds-Flood Management |
Environmental / Permitting |
Added new review layers that could slow approvals and extend timelines. |
|
SB267 |
Land Use – Residential Housing- Oversight and Approvals |
Land Use Restrictions |
Limited development flexibility and reduced opportunities for new housing. Creates new fees and taxes. |
|
SB457 |
Property Taxes- Authority of Counties to Establish Subclasses and set separate rates for land and improvements to land. |
Fees / Cost Increases |
Gives local jurisdictions authority to impose new taxes. |
|
SB462 / HB774 |
Landlord and Tenant- Residential Leases and Holdover Tenancies (Good Cause eviction) |
Local Authority Expansion |
Authorized local jurisdictions to prohibit landlords from failing to renew a lease. |
|
SB687 |
Environment – Flood Risk Review Process |
Compliance / Reporting |
Establishes a new flood risk review program. |
|
SB733 |
Land Use- Definitions and Board of Appeals |
Environmental / Flood-Risk |
Alters the Board of Appeal process that could further delay projects. |
|
SB781 / HB1268 |
Environment- Requirements for Burden Analysis, Issuance and Renewal, Public Participation (CHERISH our communities act) |
Land Use / Zoning |
Adds new permitting process to certain areas in the state that are considered at-risk. |
|
SB811 / HB920 |
Real Property – New Home Sales- Entry of Final Sale Price in Multiple Listing Service |
Operational Requirements |
Required builders/developers to enter final sales price in to a database within 30 days of sale. |
|
HB93 |
Home Builders- Model Homes and Contracts for the Intent to Purchase New Homes - Requirements |
Operational Requirements |
Requires homebuilders to make certain information available and gave home buyers additional rights to rescind contract. |
|
HB437 |
Transportation- Major Highway Capacity Expansion Projects and Impact Assessments. |
Transportation |
Required MDOT to perform impact assessments of certain projects. |
|
HB669 |
State Highway Administration- Third Party Road Improvements |
Transportation |
Required certain work to be completed prior to receiving Use and Occupancy Permit |
|
HB1188 |
Excess Ownership of Single-Family Residences Excise Tax (End Hedge Fund Ownership in Maryland) |
Taxes |
Imposed a tax on certain Single-Family residences |
|
HB1213 |
State Transfer Tax- Rate- Alterations |
Taxes |
Increased the Transfer tax on certain properties. |
|
HB1296 |
Preliminary Subdivision and Site Plans- Safe School Routes Reports |
Land Use |
Requires developers to prepare and submit report on safe school routes |
Bills that passed that could add more regulation to housing:
SB130/HB220- Environment- Water- Individual Water Meters (passed with Industry Amendments)
What it does:
- Authorizes in the installation of individual sub water meters
- Owner is prohibited from imposing costs other than what the actual charge is from the water service provider
- Owner must maintain certain records
- Effective date: October 1, 2026 (more information will follow regarding implementation)
SB523/HB701- Department of Natural Resources – Identification of Vernal Pools (passed with industry amendments)
What it does:
- Bill was amended to have little impact on the industry.
- Department of Natural Resources and MDE will identify vernal pools in the State
- Effective date: October 1, 2026 (more information will follow regarding implementation)
SB430/HB538 – Fish and Wildlife- Endangered and Threatened Species and Migratory Birds (passed with Industry amendments)
What it does:
- Bill was amended to have less impact on the industry.
- Requires DNR to review and update regulations related to Natural Areas Program
- Effective date: October 1, 2026 (more information will follow regarding implementation)
HB850- Home Builders- Open House- Sales Representative Disclosure Requirements
What it does:
- Requires a home builder holding property open to public to display a notice to prospective buyers disclosing the duties of a home builder sales representative.
- Effective date: October 1, 2026 (more information will follow regarding implementation)