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HB 1128

Land Bank Authorities - Powers and Authority

2025 Regular Session Introduced by Marvin Holmes

HB 1128 expands land banks’ financing, requires clear property-use contracts with breach remedies, and, where authorized, lets them pursue in rem foreclosure to revive blighted pro

Hearing 3/20 at 1:00 p.m.
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Bill Summary · HB 1128

HB 1128 — Land Bank Authorities: Powers and Authority (Maryland)

Status & Key Dates
- Bill number: HB 1128
- Title: Land Bank Authorities – Powers and Authority
- Sponsor: Delegate Nakamura
- Introduced: Nov 12, 2024 (Maryland General Assembly, 2025 session)
- Hearing: Scheduled 3/20 at 1:00 p.m. (Environment & Transportation / Education, Energy, and the Environment)
- Cross files / related: HB 2366 (companion), SB 1447 (companion)
- Fiscal note prepared by: Department of Legislative Services (2025 session)

Purpose / Intent
The bill expands and clarifies the statutory powers and remedies of local land bank authorities to increase their ability to finance, rehabilitate, and return vacant, abandoned, or dilapidated properties to productive use — and, where authorized by local law, to pursue in rem tax foreclosure of properties whose tax liens exceed value.

Major provisions
- Special fund and financing tools
- Authorizes a land bank authority to create a special fund and pledge its assets to leverage private investment.
- Authorizes the authority to make loans or grants (in forms it requires) to assist project financing.
- Authorizes the authority to enter into partnerships with other public or private entities to facilitate project financing.

  • Property disposition agreements and enforcement

    • Requires any sale, lease, transfer, or other disposition of a land bank’s property to include a written agreement that specifies: (i) property maintenance requirements; (ii) intended outcomes and uses; and (iii) any other conditions the authority considers appropriate.
    • Authorizes the land bank to reenter and retake possession/ownership and terminate the purchaser’s interest if the purchaser: (a) breaches the agreement and has not completed agreed improvements; (b) fails to obtain agreed permits; (c) fails to diligently pursue construction or rehabilitation; or (d) fails to complete agreed work by the agreed deadline.

  • In rem tax foreclosure authority

    • Permits a county or municipal law that authorizes in rem foreclosure to also authorize a land bank authority (established under Title 1, Subtitle 14 of the Local Government Article) to exercise the county’s/municipality’s powers and duties for in rem foreclosure under existing tax-property procedures (applicable only to vacant or cited unsafe/unfit properties where total unpaid liens exceed property value).

Who is affected
- Land bank authorities — gain additional financing tools, partnership authority, contractual enforcement remedies, and, if locally authorized, the ability to bring in rem tax foreclosure actions.
- Counties and municipalities — may choose to authorize land banks to exercise in rem foreclosure powers; may benefit from rehabilitated properties and increased tax revenue.
- Property purchasers & owners of vacant/dilapidated property — subject to new contractual terms and potential reversion remedies for noncompliance.
- Small businesses & contractors — potential increased demand for rehabilitation, construction, maintenance, and related services.

Fiscal and procedural impacts
- State finances: no direct effect per the Department of Legislative Services.
- Local finances: potentially affected — land banks could use new tools to leverage private capital, accelerate rehabilitations, and increase local tax collections; implementation costs depend on local choices.
- Small business effect: potentially meaningful positive impact from increased rehabilitation activity.
- Procedural safeguards: in rem foreclosure remains subject to existing statutory prerequisites (e.g., at least six months tax delinquency, notice and appeal tolling, circuit court filing and notice requirements, right to cure prior to judgment).

Bottom line
HB 1128 gives Maryland local land banks broader financing and partnership authority, stronger contractual controls over transferred properties (including the ability to retake properties on breach), and — where a county/municipal law authorizes it — the option to exercise in rem foreclosure powers to address tax-delinquent vacant and unsafe properties. The changes are intended to improve land banks’ effectiveness in returning blighted properties to productive use and to enable greater leveraging of private investment.

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

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