Senator pitches 'Back Main Street' bill to allow housing above commercial zones; advocates praise, counties urge caution

Education, Energy, and the Environment Committee · February 24, 2026

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Summary

SB 829 would permit residential development above commercially zoned properties in larger counties; supporters said it unlocks underused commercial space and boosts housing supply while opponents raised concerns on parking, local public‑facilities ordinances and preemption of local tools.

Senator Waldstreicher told the committee SB 829 seeks to repurpose underused commercial and retail properties by allowing residential units above commercial uses in large counties, an approach he said would create predictable rules for mixed‑use redevelopment without changing residential zoning.

"This bill only relates to commercial zones," Waldstreicher said, describing the proposal as a "ratchet" that allows housing to be added above commercial development but not vice versa. Supporters including Dan Reed of Greater Greater Washington, Lisa May of Maryland Realtors and building industry representatives said the bill helps convert vacant malls, office parks and strip centers into housing near infrastructure and transit.

Several municipal and county witnesses urged caution and asked the committee to preserve local planning tools. Don Butchko of Mako and other county representatives warned that the bill could undermine Adequate Public Facilities Ordinances and local affordability tools and asked for amendments. Vice Chair Kagan pressed witnesses on parking enforcement and how the bill's parking exemption for permitted developments would work in practice.

The testimony included perspectives from faith groups and community organizers who said mixed‑use development can expand affordable options and revitalize commercial corridors, while local government officials emphasized implementation details and the need for local coordination.

Committee members asked technical questions about first‑floor retail requirements, parking and municipal carve‑outs. The hearing closed without a vote; sponsors and stakeholders said they will continue to negotiate clarifying amendments.