Md. Code Ann., Tax-Prop. § 14-880
Redline — January 1, 2022 → current.View current text →
Current — January 1, 2026
As of January 1, 2022
(a) Each year, the Department shall issue a report that includes: (1) an analysis and summary of the information collected through the survey under § 14–879 of this part; and (2) the following information concerning the activities of the State Tax Sale Ombudsman established under § 2–112 of this article in the preceding taxable year: (i) the number of homeowners who contacted the Ombudsman; (ii) the number of homeowners assisted by the Ombudsman to apply for each of the tax credits under § 9–104 or § 9–105 of this article; (iii) the number of homeowners assisted by the Ombudsman to apply for other discount programs or public benefits and a brief summary of those programs and benefits; (iv) the number of homeowners referred by the Ombudsman to legal services, housing counseling, and other social services, and a brief summary of those services; (v) the number of homeowners enrolled in the Homeowner Protection Program under Part VII of this subtitle; (vi) a summary of the implementation of the Homeowner Protection Program under Part VII of this subtitle; (vii) any statutory or administrative changes the Ombudsman recommends to improve the administration of the Homeowner Protection Program under Part VII of this subtitle; and (viii) any other relevant information.
(a) Each year, the Department shall issue a report that includes: (1) an analysis and summary of the information collected through the survey under § 14–879 of this subtitle; and (2) the following information concerning the activities of the State Tax Sale Ombudsman established under § 2–112 of this article in the preceding taxable year: (i) the number of homeowners who contacted the Ombudsman; (ii) the number of homeowners assisted by the Ombudsman to apply for each of the tax credits under § 9–104 or § 9–105 of this article; (iii) the number of homeowners assisted by the Ombudsman to apply for other discount programs or public benefits and a brief summary of those programs and benefits; (iv) the number of homeowners referred by the Ombudsman to legal services, housing counseling, and other social services, and a brief summary of those services; (v) the number of homeowners enrolled in the Homeowner Protection Program under Part VII of this subtitle; (vi) a summary of the implementation of the Homeowner Protection Program under Part VII of this subtitle, including outreach to homeowners under § 14–886(d) of this subtitle; (vii) the total number of persons making a voluntary donation to the Homeowner Protection Program under Part VII of this subtitle through the website under § 4–201.1 of this article; (viii) the total amount of voluntary donations made to the Homeowner Protection Program under Part VII of this subtitle through the website under § 4–201.1 of this article; (ix) the balance of funds in the Homeowner Protection Fund established under § 14–891 of this subtitle as of the date of the report, and a detailed accounting of revenues received by the Homeowner Protection Fund and expenditures made from the Homeowner Protection Fund in the preceding taxable year; (x) any statutory or administrative changes the Ombudsman recommends to improve the administration of the Homeowner Protection Program under Part VII of this subtitle; and (xi) any other relevant information.
(b) On or before November 15 each year, the Department shall: (1) publish the report required under subsection (a) of this section on the Department’s website; and (2) submit the report required under subsection (a) of this section, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee and the House Committee on Ways and Means. §14–883. NOT IN EFFECT ** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 ** (a) In this part the following words have the meanings indicated. (b) “Combined income” means the combined Maryland adjusted gross income of all individuals who actually reside in a dwelling except an individual who: (1) is a dependent of the homeowner under § 152 of the Internal Revenue Code; or (2) pays a reasonable amount for rent or room and board.
(b) On or before November 15 each year, the Department shall: (1) publish the report required under subsection (a) of this section on the Department’s website; and (2) submit the report required under subsection (a) of this section, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee and the House Committee on Ways and Means.
(c) “Dwelling” has the meaning stated in § 9–105 of this article.
(d) “Homeowner” has the meaning stated in § 9–105 of this article.
(e) “Ombudsman” means the State Tax Sale Ombudsman established under § 2–112 of this article.
(f) “Program” means the Homeowner Protection Program established under this part.
(g) “Tax” has the meaning stated in § 14–801 of this subtitle.
§14–884. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) There is a Homeowner Protection Program administered by the Ombudsman in the Department.
(b) The purpose of the Program is to divert vulnerable homeowners from the private tax lien sale process under Part III of this subtitle into an alternative program with the primary purpose of:
(1) minimizing tax collection costs to homeowners;
(2) assisting homeowners to pay their taxes; and
(3) allowing homeowners to remain in their homes.
§14–885. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) (1) To be eligible for the Program a homeowner shall:
(i) reside in a dwelling that has an assessed value of $300,000 or less; and
(ii) have a combined income of $60,000 or less.
(2) The Department may establish, by regulation, additional eligibility criteria for enrollment in the Program.
(b) The Department shall establish, by regulation, a process to:
(1) give priority for enrollment in the Program to homeowners who are:
(i) at least 60 years old; or
(ii) currently receiving disability benefits from the federal Social Security Disability Insurance program or the federal Supplemental Security Income program; and
(2) ensure that homeowners are enrolled in the Program who reside in each county in the State.
(c) On or before June 30 each year, the Department shall determine the maximum number of homeowners who may be enrolled in the Program in the next succeeding fiscal year based on the amount of funding available for the Program in the Homeowner Protection Fund established under § 14–891 of this subtitle.
(d) The number of homeowners enrolled in the Program in a fiscal year may not exceed the maximum number determined by the Department under subsection (c) of this section.
(e) County or municipal governments may not be required to pay any costs of the Program.
§14–886. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) A homeowner shall submit an application to the Department to be enrolled in the Program.
(b) A homeowner may submit an application for the Program online or by mail.
(c) The Ombudsman shall:
(1) prominently advertise the Program and make applications available on the Ombudsman’s website; and
(2) collaborate with local governments, community organizations, and public and private providers of social services and benefits to raise awareness of the Program and disseminate applications.
(d) The Ombudsman shall cancel the enrollment of a homeowner in the Program if:
(1) the homeowner submits a request to the Ombudsman to withdraw from the Program;
(2) the homeowner submitted false information in the homeowner’s application for enrollment in the Program; or
(3) the Ombudsman determines that the homeowner is not acting in good faith to pay the taxes due.
(e) If the Ombudsman cancels the enrollment of a homeowner in the Program, the Ombudsman shall send a notice of the cancellation to the homeowner that includes the reasons for cancellation.
(f) A homeowner’s enrollment in the Program ends on the earliest of:
(1) the date the homeowner pays the full amount of the taxes owed to the Department;
(2) the date that is 3 years after the date the homeowner first enrolled in the Program; or
(3) the date the homeowner’s enrollment in the Program is canceled under subsection (d) of this section.
§14–887. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) If a homeowner is first enrolled in the Program before the lien on the homeowner’s dwelling is sold at tax sale:
(1) the Department shall pay the county or municipal corporation the full amount of the tax lien and assume exclusive responsibility for collecting the outstanding tax debt; and
(2) the county or municipal corporation shall withhold the dwelling from the next tax sale.
(b) If a homeowner is first enrolled in the Program after the lien on the homeowner’s dwelling is sold at tax sale, the Department shall pay the holder of the tax sale certificate the full amount required to redeem the certificate, including interest and expenses of the certificate holder, and assume exclusive responsibility for collecting the outstanding tax debt.
(c) After a homeowner is enrolled in the Program:
(1) the Department shall pay the county or municipal corporation the full amount of any tax lien that subsequently becomes due on the dwelling during the entire period that the homeowner is enrolled in the Program and assume exclusive responsibility for collecting the outstanding tax debt; and
(2) the county or municipal corporation shall withhold the dwelling from tax sale during the entire period that the homeowner is enrolled in the Program.
(d) After the Department purchases a tax lien on the dwelling of a homeowner under this section, the homeowner’s outstanding tax debt:
(1) is owed to the Department; and
(2) is not owed to any other person.
(e) If a homeowner’s enrollment in the Program is canceled under § 14–886(d) of this subtitle, the Department shall retain a lien on the homeowner’s dwelling for the taxes owed to the Department but may not initiate any collection efforts or otherwise act to enforce the lien until ownership of the dwelling is transferred.
§14–888. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) For each homeowner enrolled in the Program, the Ombudsman shall make intensive efforts to:
(1) determine why the homeowner has not paid the taxes due; and
(2) provide appropriate assistance to help the homeowner pay the taxes due and retain the dwelling.
(b) The Ombudsman shall communicate with each homeowner enrolled in the Program through whatever method is most effective, which may include:
(1) easy–to–understand mailings;
(2) phone calls;
(3) notices posted on the dwelling; and
(4) when necessary or appropriate, an in–person visit.
(c) The Ombudsman may assist a homeowner enrolled in the Program by:
(1) helping the homeowner to apply for existing tax credits and public and private programs and benefits; or
(2) entering into an installment payment plan with the homeowner to pay the taxes due.
(d) The Ombudsman may forgive all or part of the tax debt owed to the Department by a homeowner enrolled in the Program who faces particular hardship or has a special need.
§14–889. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) (1) The Department may charge interest on unpaid taxes owed to the Department at a rate not exceeding 6%.
(2) The Ombudsman may set a lower interest rate or waive interest entirely at the Ombudsman’s discretion.
(b) Other than the interest specified in subsection (a) of this section, the Department may not impose any fees or costs on a homeowner in addition to the taxes owed.
§14–890. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) In this section, “interested party” means:
(1) the person who last appears as owner of the dwelling on the collector’s tax roll;
(2) a mortgagee of the dwelling or assignee of a mortgage of record;
(3) a holder of a beneficial interest in a deed of trust recorded against the dwelling;
(4) a taxing agency that has the authority to collect tax on the dwelling; or
(5) any person having an interest in the dwelling whose identity and address are:
(i) reasonably ascertainable from the county land records; or
(ii) revealed by a full title search consisting of at least 50 years.
(b) The Department may conduct an in rem foreclosure and sale of a dwelling of a homeowner formerly enrolled in the Program in accordance with this section.
(c) The Department may foreclose on and sell a dwelling of a homeowner formerly enrolled in the Program only if:
(1) at least 3 years have elapsed since the homeowner first enrolled in the Program; and
(2) all reasonable efforts to assist the homeowner to pay the taxes owed to the Department have failed.
(d) To initiate an in rem foreclosure action the Department shall:
(1) file a complaint for an in rem foreclosure in the circuit court of the county where the dwelling is located; and
(2) within 5 days after filing the complaint, send notice and a copy of the complaint to each interested party by first–class mail and certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service.
(e) All taxes shall:
(1) be included in the foreclosure action; and
(2) cease to be a lien against the dwelling if a judgment is entered foreclosing the existing interests of all interested parties in the dwelling.
(f) The complaint for an in rem foreclosure shall include:
(1) the name and address of the Department;
(2) a description of the dwelling as it appears in the county land records;
(3) the tax identification number of the dwelling;
(4) a statement that the taxes are delinquent at the time of the filing;
(5) the amount of taxes that are delinquent as of the date of the filing;
(6) the names and last known addresses of all interested parties in the dwelling and, if applicable, a statement that the address of a particular interested party in the dwelling is unknown; and
(7) a request that the circuit court enter a judgment that forecloses the existing interests of all interested parties in the dwelling and orders the dwelling to be sold at public auction.
(g) A complaint for an in rem foreclosure may be amended to include all taxes that become delinquent after the commencement of the in rem foreclosure action.
(h) (1) Subject to paragraph (2) of this subsection, an interested party has the right to cure the delinquent taxes on the dwelling by paying all past due taxes at any time before the entry of the foreclosure judgment.
(2) The right to cure the delinquent taxes on the dwelling is extinguished once the foreclosure judgment is entered.
(i) A circuit court may not set a hearing for an in rem foreclosure until 30 days after the complaint for an in rem foreclosure is filed.
(j) At the hearing, any interested party shall have the right to be heard and to contest the delinquency of the taxes and the adequacy of the proceedings.
(k) If the circuit court finds that the Department sent notice and a copy of the complaint to each interested party and that the information set forth in the complaint is accurate, the court shall:
(1) enter a judgment that proper notice has been provided to all interested parties; and
(2) order that the dwelling be sold at public auction.
(l) (1) After entry of judgment under subsection (k) of this section, the Department shall sell the dwelling at public auction in accordance with the Maryland Rules.
(2) The dwelling may not be sold until at least 45 days after the entry of judgment.
(m) The minimum bid for the sale of the dwelling shall be based on the fair market value of the dwelling, as determined by the Department.
(n) (1) The dwelling shall be sold to the person making the highest bid.
(2) The person making the highest bid shall pay the full bid amount to the Department.
(3) If the minimum bid is not made or exceeded, the Department may bid the minimum bid price and purchase the real property.
(o) (1) The Department shall deposit any amount by which the highest bid exceeds the amount of taxes due on the dwelling in an escrow account.
(2) The circuit court shall distribute the funds deposited into the escrow account to the interested parties in the order of priority of the interests of the interested parties.
(p) After a sale, the Department shall file a notice informing the circuit court of the sale and stating the date of the sale, the sale price, and the identity of the purchaser.
(q) A sale of a dwelling under this section is final and binding on the maker of the highest bid.
(r) (1) The title acquired in an in rem foreclosure proceeding shall be an absolute or fee simple title including the right, title, and interest of each of the defendants in the proceeding whose property has been foreclosed unless a different title is specified in the judgment entered.
(2) A judgment in an action under this section is binding and conclusive, regardless of legal disability, on:
(i) all persons, known and unknown, who were parties to the action and who had a claim to the property, whether present or future, vested or contingent, legal or equitable, or several or undivided; and
(ii) all persons who were not parties to the action and had a claim to the property that was not recorded at the time that the action was commenced.
(s) A homeowner or any interested party in a homeowner’s dwelling may not:
(1) raise as a defense to a foreclosure action under this section that the Department failed to make sufficient efforts to assist the homeowner under § 14–888(a) and (b) of this subtitle or subsection (c) of this section; or
(2) take any legal action against the Department on the basis that the Department failed to make sufficient efforts to assist the homeowner under § 14–888(a) and (b) of this subtitle or subsection (c) of this section.
(t) The Department is not liable for any environmental or other violation related to the dwelling of a homeowner enrolled or formerly enrolled in the Program unless the Department purchases the dwelling under subsection (n)(3) of this section.
§14–891. NOT IN EFFECT
** TAKES EFFECT JULY 1, 2022 PER CHAPTER 382 OF 2021 **
(a) In this section, “Fund” means the Homeowner Protection Fund.
(b) There is a Homeowner Protection Fund.
(c) The purpose of the Fund is to finance the Program.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) tax and interest payments made to the Department by homeowners enrolled in the Program;
(2) money appropriated in the State budget to the Fund;
(3) interest earnings; and
(4) any other money from any other source accepted for the benefit of the Fund.
(g) For each of fiscal years 2023, 2024, and 2025, the Governor shall include in the annual budget bill an appropriation of $750,000 to the Fund.
(h) (1) The Fund may be used only for any expenses associated with the Program.
(2) The Fund may not be used for any expenses of the office of the State Tax Sale Ombudsman that are not directly related to the Program.
(i) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(j) Expenditures from the Fund may be made only in accordance with the State budget.
(k) The Fund is the exclusive source of funding for the Program.
Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.