Committee backs county bill to implement Habitat for Humanity property tax credit

Madam Chair opened the committee session and the panel recommended Bill 15-26, a local ordinance to implement a state tax credit for Habitat for Humanity–owned properties, be forwarded to the full County Council for passage.

The bill implements the state enabling language referenced in the staff packet (Maryland code, tax-property provision cited in the report) to allow a 100% property tax credit for properties while they are owned by Habitat for Humanity Metro Maryland during rehabilitation or construction, up to the point of conveyance to the eventual homeowners. Mr. Gorzlek, who presented the bill to the committee, said implementation would begin on July 1, 2027 and would rely on processes coordinated with the Department of Finance.

The measure includes an annual reporting requirement from Habitat for Humanity to verify conveyance dates and ensure tax credits align with the period of Habitat ownership, a step Mr. Gorzlek described as a “belts and suspenders” approach required by the state enabling legislation. He told the committee the Office of Management and Budget projected a decline in property tax revenues of about $458,000 over the first five-year horizon; he also said the Habitat president and CEO had testified that the organization expects to recoup roughly $70,000–$80,000 per year, funds that would be reinvested in future projects.

Councilmember Andrew Friedson, the lead sponsor, said the policy is already in use in several Maryland counties and called it a cost‑effective way to reduce construction and carrying costs, expand financing options for the nonprofit, and create more predictable pathways to homeownership for households in roughly the 30–80% area median income range. Councilmember Katz said she was “certainly in favor of it,” praising the state carve‑out for Habitat and noting homeownership’s role in improving economic stability.

The committee voted to move the bill forward with a recommendation to the full council. The full council packet and staff report will include the fiscal and implementation materials presented at committee; the committee asked that updated analysis be posted with the council records. No formal vote tally was recorded in the committee transcript.

The committee’s recommendation sends Bill 15-26 to the County Council for further consideration and potential final passage.