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HB 155

Housing and Community Development – Greenhouse Gas Emissions Reductions – Issuance of Loans and Achievement of Targets

2025 Regular Session

Allows DHCD to issue loans (not just grants) for energy upgrades in affordable multifamily housing and counts more funding sources toward EmPOWER targets, easing ratepayer burdens.

Referred Education, Energy, and the Environment
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Bill Summary · HB 155

Summary — HB 155

Title: Housing and Community Development – Greenhouse Gas Emissions Reductions – Issuance of Loans and Achievement of Targets
Primary subject: Expands financing options for energy upgrades in multifamily affordable housing and broadens the funding sources DHCD may count toward EmPOWER greenhouse‑gas (GHG) reduction targets.
Effective date: July 1, 2025

Main purpose / intent

HB 155 (departmental bill requested by the Department of Housing and Community Development, DHCD) is intended to (1) make the State’s GHG reduction program for multifamily affordable housing more accessible by allowing loans (in addition to grants) for energy conservation and renewable energy projects, and (2) expand which funding sources DHCD may include when calculating achievement of EmPOWER Maryland GHG reduction targets.

Key provisions

  • Authorizes DHCD (via the Community Development Administration) to issue loans as well as grants for:
    • Energy conservation projects and installation of renewable energy generating systems in “covered buildings” (multifamily residential buildings that primarily house low‑ to moderate‑income households).
    • Prohibits use of grants/loans to install new fossil‑fuel equipment or to improve the efficiency of existing fossil‑fuel equipment.
  • Continues statutory appropriation guidance already in place: the Governor’s annual budget must include $5,000,000 in each of FY 2024–2026 for the program (unchanged language now applied to grants and loans).
  • Changes Public Utilities (EmPOWER) reporting/calculation rules so DHCD may include savings achieved through all funding sources when calculating its GHG reduction target attainment — provided the savings are achieved (a) in a manner consistent with U.S. Department of Energy requirements, or (b) consistent with the energy‑savings rules applicable to those funding sources.
  • Statutory cross‑references amended: Article — Housing & Community Development §4‑211(d); Public Utilities §7‑224(c).

Who is affected

  • DHCD / Community Development Administration: new loan authority and expanded counting rules for EmPOWER targets.
  • Owners/operators of covered multifamily buildings (including Low‑Income Housing Tax Credit properties) — increases access to financing for energy upgrades because some subsidized properties cannot accept grants.
  • Low‑income tenants: potential benefits through energy upgrades and reduced building emissions.
  • Electric companies / ratepayers: expanding eligible funding sources likely reduces the amount of ratepayer‑collected EmPOWER surcharge funds that would otherwise flow to DHCD programs.
  • State budget and special‑fund (ratepayer) flows.

Fiscal and operational impacts (from fiscal note)

  • Authorizing loans (in addition to grants) is not expected to materially affect State finances or operations through FY 2030. Typical loan terms DHCD expects: 0% interest, deferred repayment, maturities 15–40 years; DHCD expects many loans will not be repaid in practice.
  • Allowing a broader set of funding sources to count toward EmPOWER targets likely reduces special fund (ratepayer) revenues and expenditures that would otherwise be remitted to DHCD — probably beginning FY 2026. DHCD estimates about half of its EmPOWER program is ratepayer‑funded; FY 2026 context included ~$63.5 million in ratepayer funds.

Timeline / procedural notes

  • Effective date: July 1, 2025.
  • EmPOWER context: DHCD must submit plans and procure programs on a multi‑year schedule (plans beginning Jan 1, 2025, and every three years thereafter) to meet targets on a trajectory to at least 0.9% GHG reductions (relative to a 2016 baseline) after 2027 for the 2025–2033 period.

Practical effect

The bill lowers a financing barrier for retrofits of affordable multifamily housing (by allowing loans where grants are infeasible), while giving DHCD more flexibility to count federal and other non‑ratepayer funding toward its EmPOWER GHG targets — reducing pressure to increase ratepayer surcharges to meet statutory targets.

Compiled from official sources — confirm details with the bill’s official record.

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