Housing Policy Newsletter – January 20
Legislation, research and news
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Good morning!
The January 20 edition of the newsletter is below, featuring a spotlight on Maryland’s recent announcements, recent state legislative activity, insightful research, and a roundup of housing news.
CSG East is convening its 3rd regional Housing Policy Summit on February 27-28, 2026 in Wilmington, Delaware, bringing together state government officials, staff, and invited experts to discuss housing policies and actions taken across the CSG East region. Reply to this email if you’re interested in further details on sessions, speakers, or registration information.
CSG East is on its way to Annapolis, Maryland to visit with members on January 27-28. We’ll be in New Hampshire on February 3-4 and Maine on February 10-11. More visits soon to follow!
Sincerely,
Joseph
In early January, Maryland Governor Wes Moore announced details of his administration’s 2026 housing growth and affordability agenda, including support for three pieces of legislation.
The Maryland Transit and Housing Opportunity Act. Addresses zoning and financial hurdles to foster housing growth and mixed-use developments near transit hubs; aims to eliminate minimum parking requirements for transit-oriented developments; provides state agencies more authority to develop housing on land surrounding transit stations.
The Housing Certainty Act. This bill would ensure that approved projects are not subject to future rule changes that may otherwise delay or derail development. It aims to restore certainty to the development process and avoid unforeseen costs from being added to a project.
The Starter and Silver Homes Act (S.36 / H.239). Aims to allow for single-family homes to be built on smaller lots, and for townhomes to be allowed in residential areas statewide. The proposed legislation prohibits the following land use restrictions:
- Prohibits any restriction of townhouses from being constructed in areas zoned for single-family homes.
- Prohibits minimum lot sizes greater than 5,000 sq ft for single-family homes in areas connected to public water and sewer.
- Prohibits minimum square footage or exterior dimension requirements for single-family homes.
- Prohibits lot coverage maximums for single-family homes and accessory structures.
- Prohibits minimum building setbacks for single-family homes and accessory structures, greater than 10 feet for front and rear, and 5 feet for sides.
This legislative agenda follows several initiatives Maryland has taken in recent years. In 2024, Maryland passed critical legislation. H.538 legalized manufactured and modular homes in areas zoned for single-family housing, increased density and affordability requirements in areas near public transit and on state-owned land. H.693 strengthened tenant protections and eviction diversion initiatives by increasing eviction filing fees, establishing an Office of Tenant and Landlord Affairs responsible for developing a Tenants’ Bill of Rights, and establishing a tenant’s right of first refusal.
In 2025, Maryland updated its Housing Needs Assessment and issued an executive order, which directs state agencies to explore transit-oriented development strategies, creates a State Housing Ombudsman to streamline permitting processes, requires housing production targets to be updated every 5 years, and creates the Housing Leadership Award to support municipalities pursuing housing growth and meeting production targets.
*Checkout CSG East’s research on states’ efforts to loosen restrictions on manufactured housing and expand housing options in single-family zones.
DE (S.115) provides a pathway to shield eviction filings from public view (signed by Governor July 2025).
MA (S.768) creates a special commission on affordable housing insurance (reported favorably Jan 2026).
ME (LD 1184) requires municipal reporting on residential building permits, dwelling units permitted and demolished, and certificates of occupancy issued (signed by Governor July 2025).
NJ (A.3360 / S.483) authorizes establishment of municipal homeless trust funds and adoption of homeless housing plans by municipalities (passed both chambers Jan 2026). The bill would enable funds to be collected by increasing fees on building permits, business licensing, parking tickets, court fines, and similar fees.
NJ (A.4913 / S.4364) establishes funding preferences for municipalities that incorporate strategies to develop housing (passed both chambers Jan 2026). Among the 10 strategies: allowing 2-3 unit dwellings, ADUs, and manufactured housing where single-family units are allowed, reducing minimum lot sizes, reducing off-street parking requirements, promoting TOD and more.
NJ (S.451) restricts the use of algorithmic systems to influence price and supply of residential rental units (introduced Jan 2026).
NY (A.1417 / S.7882) restricts the use of algorithmic pricing by landlords to determine rents charged to residential tenants (signed by Governor Oct 2025).
NY (A.4130 / S.885) regulates short-term residential rentals by creating a statewide registry that enables data collection and reporting (signed by Governor Dec 2024)
Who Owns America: Mapping Corporate Ownership on Residential Land
The Lincoln Institute of Land Policy and Center for Geospatial Solutions
The first spike in corporate ownership of residential real estate occurred in the aftermath of the 2008 financial crisis, then surged again during the Covid-19 pandemic, when home prices fell dramatically, but rents did not. Low-income neighborhoods and communities of color, in some cases, were found to be attractive to investors due to home prices being lower than in the surrounding areas, while the rents remained comparable. The report also suggests that investor activity is less common in states with stronger tenant protections. Although a flurry of state legislation has been proposed in recent years, the report found that few of those bills have passed. The authors offer several policy recommendations, including (i) establishing a rent registry, (ii) capping the number of new home purchases, (iii) offering tenants rights of first refusal, (iv) providing property tax relief or homebuyer assistance, and (v) strengthening tenant protections.
Policy tools remediate vacant buildings and utilize vacant lands. Most strategies implement a surtax/surcharge on vacant property to incentivize its rehabilitation or sale. Washington DC significantly increased taxes on vacant and blighted properties (per $100 of assessed value: standard $0.85; vacant $5.00; blighted $10.00). In Baltimore, following enabling legislation by the state, the city will triple or quadruple tax rates for vacant properties the longer they remain vacant. Montana passed 2025 legislation that reduces property taxes on primary residences and increases taxes on second homes and short-term rentals. Pennsylvania uniquely adopted a split-rate land value tax system, allowing municipalities to tax land at a higher rate than buildings. [CUNY Institute for State and Local Governance]
Are unattainable home prices fueling investor activity in rentals? “As homeownership becomes less attainable and less central to wealth creation, the rental market stands out as a resilient and attractive opportunity for investors,” according to JP Morgan analysts. They note 2025 home prices are up 60% nationwide from 2019, reducing the demand for homeownership and spiking demand in the rental market, thus raising appeal to investors. Also noteworthy: the shift in demand is not driven by consumer preference, but market scarcity. [JP Morgan]
Delaware’s digital process aims to streamline tenancy approval for voucher holders. Landlords can now complete an online Request for Tenancy Approval. Delaware State Housing Authority Director Matt Heckles told DE Public Radio, “We’re streamlining that relationship by having the request for tenancy approval be submitted by the landlord electronically, reviewed by the public housing authority that issued that voucher, and approved also electronically.” [DSHA]
Santa Fe ties its minimum wage to housing costs. The New Mexico city of approximately 90,000 passed a measure to adjust future minimum wage increases to the Consumer Price Index and cost of housing, specifically fair market rents, which are adjusted annually by HUD. [AP]
New York converts first hotel to affordable and supportive housing. The JFK Hilton converted into 318 affordable and supportive apartments with a suite of on-site supportive services available to formerly homeless households. The conversion was enabled by 2 state laws: First, the Housing Our Neighbors with Dignity Act (S.5257C; 2021) created a program enabling the state to finance the rehabilitation of distressed hotels and offices for conversion to permanent affordable housing to be owned by nonprofit organizations. Second, S.4937C (2022) exempts Class B hotels converting to permanent housing from undergoing potentially costly land use review processes if located in or near a residential zoning district. [6sqft]
Maryland’s plan to rehabilitate 5,000 vacant properties yields first project. The Baltimore Vacants Reinvestment Initiative allocated $50 million to support these conversions. A nonprofit organization recently renovated 11 of 20 vacant homes, and sold 2 of them. The state is tracking progress towards its goal via public dashboard with real-time data. [WYPR]
Massachusetts’ AG releases new Guide to Landlord and Tenant Rights. “This guide discusses forming rental agreements and leases, types of tenancies, payments, evictions, habitable living conditions, housing discrimination, and methods for resolving conflicts between landlords and tenants,” she writes. [mass.gov]
