The Maryland General Assembly passed the Maryland Transit and Housing Opportunity Act and the Maryland Housing Certainty Act into law in 2026, key legislation to address Maryland’s housing crisis. This new housing legislation is accompanied by a Fiscal Year 2027 budget that supports the Maryland Department of Housing and Community Development’s robust affordable housing investment and safeguards funding for homelessness services.
Introduced by the Governor’s 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.
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.
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.
