Maryland law allows homes on some commercial and recreation lots

Counties with more than 150,000 people must allow qualifying apartment and mixed-use developments as permitted uses. The lot must have water and sewer service and be zoned for commercial or recreation use. An apartment building must be designed for at least five homes. In a mixed-use building, nonresidential uses must take up less than half the floor space and be on the first floor of a building with at least two stories. A county may require up to 20% of available floor space for retail and may require on-site parking. A permitted use can be approved without a public hearing or other discretionary zoning action, but the county may still check that the site plan follows zoning rules. The act states that it ends on May 31, 2027; its effective date is unclear.

Counties may not impose certain limits on permitted developments, including lower density caps or certain parking requirements. These limits apply to permitted apartment and mixed-use developments in counties with more than 150,000 people. Counties may regulate where and how projects are built and may require on-site parking, but generally may not set a minimum off-street parking requirement unless federal law requires it. The bill also limits requirements for walls, fences, screening, outdoor pavement, and nonpublic open space, with exceptions for disability access and public health and safety. The act states that it ends on May 31, 2027; its effective date is unclear.

A land-use restriction in certain property documents may not unreasonably limit an owner’s ability to build a residential or mixed-use development. The rule covers restrictions in deeds, declarations, contracts, homeowners association rules, security instruments, and other documents affecting real property. The owner must have the exclusive right to use the property and follow applicable laws and rules. A restriction is unreasonable if it significantly raises development costs or explicitly or effectively bars the project. This rule does not apply to historic property listed in, or found eligible for, the Maryland Register of Historic Properties. The act states that it ends on May 31, 2027; its effective date is unclear.

The Maryland Department of Housing and Community Development must study residential-in-commercial-zone laws and report its findings and recommendations. The Department must report to the Governor and General Assembly. The study must compare other states’ laws and assess effects on communities, local infrastructure, economic goals, and housing production. It must recommend possible rules for parking, density, first-floor nonresidential space, building height, suitable commercial areas, and urban, suburban, and rural places. The report is due on or before December 1, 2026. The act states that it ends on May 31, 2027; its effective date is unclear.