House passes Building Homes Act after questions about nonprofit safeguards

Annapolis, March 6 — The Maryland House of Delegates on Friday passed a package of bills on third reading, including the Building Homes Act (HB 805), after a brief floor exchange about safeguards for nonprofit recipients of tax credits.

During consideration of HB 805, a delegate from Anne Arundel questioned whether the measure applied to all nonprofits and whether it included protections to keep “nefarious nonprofits” from obtaining tax credits and then disappearing. The delegate asked, “I saw Habitat for Humanity was in there, which is outstanding. But is this bill going to apply to any nonprofit? Do you know if there's any safeguards in the bill?”

The sponsor responded that the measure is an enabling bill. “It's an enabling bill,” the sponsor said, adding that local governments are empowered to adopt any requirements they deem appropriate.

After the exchange, the clerk recorded 120 affirmative votes and 10 negative votes and declared HB 805 passed on its third reading and final passage.

Votes at a glance

- HB 311 (public schools; individuals with disabilities — accessibility and emergency planning): passed, 119–0.
- HB 359 (property tax; urban agricultural property alterations): passed, 119–0.
- HB 396 (residential child-care programs; training of child and youth care practitioners): passed, 116–4.
- HB 430 (family child-care providers; reserve component members; substitute provider): passed, 119–0.
- HB 735 (earned income tax credit assistance program delay and study): passed, 122–0.
- HB 805 (Building Homes Act): passed, 120–10.
- HB 851 (Maryland Statewide Independent Living Council legal status): passed, 121–0 (recording corrections noted on the floor).

Several members announced vote changes during roll call and clerks corrected records where voting devices initially failed to register; the clerk acknowledged at least one member reporting “my button didn't work.”

Why it matters

The Building Homes Act expands local authority to incentivize housing development through tax credits tied to nonprofit involvement, an approach that committee supporters say will mobilize partners such as Habitat for Humanity. Opponents and cautious members pressed for clarity on safeguards to ensure taxpayer-funded incentives do not benefit organizations that later fail to complete projects or misuse funds. Because HB 805 is enabling, protections and specific eligibility rules will depend on subsequent local ordinances or regulations adopted by counties or municipalities.

Other floor business and announcements

Earlier in the session the clerk read a message from the chief executive submitting Supplemental Budget No. 1 for the fiscal year ending June 30, 2027, which was referred to the Appropriations Committee; the message cited Article 3, Section 52, Subsection 5 of the Maryland Constitution. Leaders and committee chairs also announced schedules for voting sessions and hearings across Appropriations, Economic Matters, Environment and Transportation, Health, Judiciary, and other committees. Members recognized guests in the gallery, including the National Association of Women in Construction (Baltimore chapter) and the doctor of the day, Dr. Ilsa Levin of Holy Cross Hospital.

What’s next

The House recessed and will reconvene on Monday, March 9, at 8:00 a.m., when committees and subcommittees will continue scheduled hearings and voting sessions.