Summary
The Maryland Housing Certainty Act (the Act) was signed on May 26, 2026, and takes effect October 1, 2026. The Act (1) establishes that the approval, conditional approval, or denial of a housing development project application must be governed by the laws and regulations in effect at the time of submission of a complete application; (2) grants vested rights for at least five years following project approval; and (3) delays collection of development impact fees and development excise taxes until after construction is complete.
The Upshot
- Applications for housing development projects in Maryland will be governed by the laws and regulations in effect when a complete application is submitted, not by a law that is subsequently changed by the time the project is approved.
- After receiving all required approvals, developers will have a vested right to the authorized use and development for at least five years, or a longer period as determined by the local jurisdiction.
- Counties and municipalities will be prohibited from collecting development impact fees or excise taxes on residential projects until construction is complete.
The Bottom Line
Developers planning new residential construction in Maryland should understand how this law affects their future projects. Ballard Spahr’s Real Estate Development and Property Rights Group is prepared to address your questions and concerns.
The Maryland General Assembly passed the Maryland Housing Certainty Act (the Act) on April 10, 2026, and Governor Moore signed the Act into effect on May 26, 2026. The Act will help address Maryland’s housing supply shortage, which is currently expected to balloon to nearly 600,000 units by 2045. Maryland’s current “late vesting” law, and the resulting uncertainty around housing development approvals, is often cited as a driver for the housing shortage.
Applicable Law for Housing Development Project Applications
The Act establishes that approval, conditional approval, or denial of any housing development project application must be governed by the laws and regulations in effect at the time a complete application is submitted. A complete application requires all materials and information necessary for processing and substantive review as determined by the commission or the local regulatory authority, excluding minor, non-substantive errors. The local regulatory authority must determine whether an application is complete within 30 days of submission.
For multi-phase housing development projects, each phase is treated as a discrete housing development project for purposes of determining applicable law and vested rights.
Vested Rights
After a housing development project receives all required approvals, the developer has a vested right to the authorized use and development for at least five years, or a longer period as determined by the local jurisdiction. Under current Maryland law, development rights do not vest until a building permit has been issued and substantial construction has commenced.
Development Impact Fees and Development Excise Taxes
With minor exceptions, the Act prohibits counties and municipalities from collecting development impact fees or development excise taxes on residential projects, including mixed-use developments, until construction is complete and all certificate of occupancy requirements have been met.
The Bottom Line
Developers planning new residential construction in Maryland should understand how this law affects their future projects. Ballard Spahr’s Real Estate Development and Property Rights Group is prepared to address related questions and concerns.
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