Sponsor seeks to curb county housing moratoria, restore IAC authority over school construction funds

Delegate Moon told the House Appropriations Committee that House Bill 38 aims to “ensure we are better stewards of school construction tax dollars and school construction resources” by limiting how counties use adequate public facilities ordinances (APFOs) to block housing when nearby schools have unused capacity.

Moon said the bill would restore the Interagency Commission (IAC)’s authority to withhold matching funds from school systems that seek state money to add capacity at schools adjacent to other schools with available seats. “It doesn't change how much any county gets in school construction dollars. It simply makes it not possible to get money for seats when that school system has available seats,” Moon said. He also described a data-sharing provision to give the IAC non‑identifying residence data so it can audit capacity claims and a reporting requirement. The bill includes a four‑year cap on how long an APFO can halt housing for school overcrowding; Moon said a drafting error currently would extinguish older APFOs and that he has a clarifying amendment.

Supporters at the hearing argued the bill would protect limited school construction dollars and avoid using moratoria as a de facto housing ban. Dan Reed of Greater Greater Washington testified, “APFOs and moratoria do not build schools,” and said the measure would help align limited state funds with jurisdictions that permit needed housing. Lori Graff of the Maryland Building Industry Association and Lisa May of Maryland Realtors also urged a favorable report, citing the state’s housing shortage and local examples where redistricting and state capacity calculations—not new housing—explained seat losses.

Don Butchko of the Maryland Association of Counties opposed the bill, saying counties fund schools but do not control school district redistricting or curriculum decisions. “By pausing APFOs for counties, this is not going to address school redistricting capacity,” he said, noting that APFOs are a broad infrastructure tool and are sometimes used as a temporary pause while jurisdictions finance improvements.

Committee members asked for additional information on best practices in other states and clarifications about how the bill defines “shutting down housing.” Moon and testifiers referenced studies from Howard, Anne Arundel and Montgomery counties showing enrollment increases were not primarily driven by new multifamily construction but by turnover of existing housing into households with school‑aged children.

The hearing concluded with the sponsor and stakeholders agreeing to work on technical fixes to the draft language. No vote occurred in the hearing record provided.