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HB 1444

Local Government - Moderate Income Housing Unit Requirements - Prohibition Against Fee-in-Lieu

2025 Regular Session Introduced by Gabriel Acevero and 4 co-sponsors

Maryland HB 1444 prohibits local governments from accepting developer fees instead of requiring actual moderate-income housing construction in new residential developments.

Hearing 3/04 at 1:00 p.m.
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Bill Summary · HB 1444

Legislative bill overview

HB 1444 prohibits local governments in Maryland from allowing developers to pay fees-in-lieu as an alternative to including moderate-income housing units in new residential developments. Instead of paying a fee to avoid building affordable units on-site, developers would be required to actually construct the affordable housing or participate in alternative compliance methods approved by the legislation.

Why is this important

Housing affordability is a critical issue in Maryland, particularly in areas experiencing rapid development and population growth. By eliminating fee-in-lieu options, this bill aims to ensure that affordable housing is physically created in communities rather than potentially redirected to projects elsewhere, potentially increasing the actual supply of moderate-income units available for residents.

Potential points of contention

  • Development costs and feasibility: Developers argue that mandatory on-site construction increases project costs and may make some developments economically unfeasible, potentially reducing overall housing production
  • Local government flexibility: Municipalities may oppose losing discretion to collect fees that fund affordable housing programs tailored to local needs and preferences
  • Market dynamics: Critics worry the requirement could push developers toward higher-income housing projects in less-regulated areas, potentially worsening affordability in specific regions

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

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