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Committee hears bill to create limited-equity housing cooperatives in Maryland
Summary
Lawmakers and advocates told the House Environment and Transportation Committee that HB1052 would create a workable statutory path for limited-equity housing cooperatives so tenant purchasers can keep homes permanently affordable; sponsors said technical changes are coming after consultations with SDAT and other state agencies.
Delegate Lorig Chircutian asked the Environment and Transportation Committee for a favorable report on HB 10 52, legislation to allow the establishment of limited-equity housing cooperatives in Maryland.
“it will allow for the creation of limited equity housing cooperatives in the state,” Chircutian said, framing the bill as another tool for long-term affordable homeownership. She told the committee the model is already used in the District of Columbia and that Takoma Park tenants who purchased their building using a local right-of-first-refusal want to convert to a limited-equity co-op but found the current state statute unusable.
Claudia Wilson Randall, executive director of the Community Development Network of Maryland, told the committee the existing statute technically allows co-ops but is “simply unworkable as written.” Judy Bridal of the Leland Tenant Association described a local conversion: “In October of 20 22 the Leland Tenant Association utilized Takoma Park's tenant opportunity to purchase law to successfully acquire the property,” and said the group’s intent is to convert to a limited-equity cooperative to keep the building permanently affordable.
Will Bien Duggan, of Mi Casa Inc., described practical support and technical assistance his nonprofit has provided to tenant purchasers and said the group’s experience in DC-style conversions helped shape the bill text. Sponsor and witnesses said they have worked with the State Department of Assessments and Taxation (SDAT) and other agencies about implementation; Chircutian told the committee she expects technical amendments and said a delayed effective date could substantially reduce the bill's fiscal note related to SDAT computer changes.
Committee members asked about tax exemptions, size limits, and whether existing cooperatives could convert under the bill; the sponsor said the draft does not limit the size of a converting project and that the bill’s five-year tax exemption provision was negotiable. There were no formal votes in committee during the hearing.
Supporters urged a favorable report, while the sponsor said she would file amendments to address agency implementation questions and the fiscal note.
