Housing Legislation: Status of HB239 and SB36 and Summary of Amendments

Legislative Actions

• Introduction of the Legislation. After the Governor announced his plan to address the issues of housing in Maryland, the Department of Housing and Community Development [DHCD] prefiled HB239 in the House and the companion bill, SB36, in the Senate.  See this PRA News article for a description of the original bills.
• House Hearing.  The House Economic Matters Committee held a hearing on HB 239 on February 12, 2026.  Over 40 organizations and individuals testified. 
• Senate Hearing. The Senate Education, Energy, and the Environment Committee held a hearing on SB36 on February 17, 2026.  Again, over 40 organizations and individuals testified, many of them the same groups and people who testified on HB239.
• Amendments. By the time of the hearings, the Department of Housing and Community Development [DHCD] had already met with various stakeholders—primarily municipalities, political organizations, and some individuals—and had drafted multiple amendments which many of the members did not yet have at the time of the hearing.  Jake Day, Sectary of DHCD, reported that the Department and the stakeholders had already agreed to many of these amendments and was optimistic that they could reach a compromise on most of the others. The department’s letter of explanation of the amendments along with the text is here. A brief summary of the major amendments is below.
• Those testifying at the hearings were grouped into three categories of panels: 
  • Favorable [to the legislation]
  • Favorable [at least to the goals of the legislation] but with Amendments
  • Unfavorable
• Schedule. The schedule of meetings for the House and Senate committees does not yet indicate when they will consider the amendments or when they will vote on the committee-amended versions of the bills. 
• Critical Dates:
  • March 17:  Each Chamber’s committees report their own bills by this date. 
  • March 23:  Each Chamber sends to the other Chamber those bills it intends to pass favorably. [So called Cross Over date.]
  • April 13: Legislature adjourns

Summary of Major DHCD Proposed Amendments to Original Bills

• Limit development to areas where water and sewer will exist in the next five years.
• Limit development to those areas intended for growth.
• Areas outside designated growth areas are exempt.
• Allow environmental design option.
• Protect forests.
• Exempt future historic districts.
• Ensure building heights and setbacks are consistent with adjacent houses.
• Allowable lot coverage maximum limited to 75%.
• Confirm bill does not override local Adequate Public Facility Ordnances [APFOs].
• Confirm bill does not allow stacked units or duplexes by definition of town houses.

Significantly, the amendments, as least so far, do not appear to change the By Right directive to allow town houses to be built in areas zoned for single family homes.  Nor do they address affordability directly.  The DHCH contends, however, that allowing townhouses on single family house lots will produce more houses at lower costs.

Summaries of the hearings by panel group will follow in the next News article.