1. (a) In this section, “qualified project” means a residential project that:

   1. (1) consists of new construction or substantial renovation, as annually established and identified by the Department of Housing and Community Development in the Multifamily Rental Financing Program Guide;

   2. (2) is on property that:

      1. (i) 1. was formerly owned by the State;

         1. 2. consists of more than one building;
         2. 3. includes at least one building that was built more than 50 years before the date of application for the project; and
         3. 4. is appropriate for redevelopment as determined by the Secretary of Housing and Community Development; or

      2. (ii) 1. is currently or was formerly owned by the federal government;

         1. 2. is greater than 80 acres in size; and
         2. 3. was the site of a former U.S. military reservation;
   3. (3) contains at least 25% of units that are affordable dwelling units; and
   4. (4) is deed-restricted to include 25% of units that are affordable dwelling units for a period of at least 40 years.

2. (b)

   1. (1) In accordance with this subsection, a local jurisdiction shall allow the density of a qualified project to exceed the density otherwise authorized in a district or zone.
   2. (2) In an area zoned for single-family residential use, a qualified project may include middle housing units.

   3. (3) In an area zoned for multifamily residential use, a qualified project:

      1. (i) shall have a density limit that exceeds by 30% the allowable density in that zone for uses that are not part of a qualified project; and
      2. (ii) may consist of mixed-use.

   4. (4) Subject to § 7-509 of this subtitle, a qualified project may consist of mixed-use development with density limits that do not exceed the highest allowable density in the local jurisdiction's multifamily residential zones:

      1. (i) in an area zoned for nonresidential use; or

      2. (ii) on land that:

         1. 1. is currently or was formerly owned by the federal government;
         2. 2. is more than 80 acres in size; and
         3. 3. was the site of a former U.S. military reservation.

   5. (5) In an area zoned for mixed-use, a qualified project may consist of residential development with density limits that do not exceed the greater of the following:

      1. (i) the highest allowable density in the local jurisdiction's residential zones; or
      2. (ii) six units per gross acre.
   6. (6) If a qualified project is allowed to exceed the density otherwise authorized by a local jurisdiction in a district or zone under this section, the qualified project may not also exceed the authorized density under § 7-503 or § 7-504 of this subtitle.

Added by Acts 2024, c. 122, § 1, eff. Jan. 1, 2025.