Ramos 2023 General Assembly priorities
In my former role as the Executive Director of the Community Development Network of Maryland, and a former lobbyist representing various organizations, I am familiar with the General Assembly and it’s importance to Baltimore. Often, Baltimore and other jurisdictions need to ask permission from the General Assembly to do certain things, like create new tax credits, reform our tax sale system, some real estate law, and more. Along with massive coalitions, we were able to pass significant legislation to provide more tools to address vacant properties such as the In Rem Foreclosure tool that Baltimore is using now, and begin the long road toward tax sale reform.
In this year’s General Assembly, I am promoting the following pieces of legislation and will keep this page updated as to their status:
Expansion of Judicial In Rem: Currently In Rem allows for jurisdictions to foreclose on properties when they are vacant and the liens exceed the value of the property. Baltimore is implementing this important tool now. This year, want permission from the General Assembly to allow Baltimore City to foreclose on vacant properties when the liens do not exceed the value of the property. As I explained in my op-ed in the Baltimore Banner, this tool allows us to control the outcome of the vacant property and it is an expedited process. In our district, 28% of the 455 vacant properties in two neighborhoods are ready for In Rem now, and 35% are approaching In Rem status. If we had the expanded In Rem today, we could acquire 63% of the vacant properties in our district and ensure they are available for redevelopment based on community goals. This is one of the Mayor’s legislative priorities as well.
Differential Tax Rates/Vacancy Tax: Right now, every jurisdiction in the state has to tax their properties the same rate - the jurisdiction decides what that rate is, but it is the same for each property in that jurisdiction. Delegate Boyce’s legislation asks the General Assembly to enable us to have different tax rates for different properties. We can use this to create a Vacancy Tax to help stack up the liens on vacant properties. Once this legislation passes at the state level I will be introducing the vacancy tax here in Baltimore City.
Complete Tax Sale reform: Several bills this session will be geared toward complete reform of our tax sale system. Some will allow the jurisdictions to determine when to sell the liens (or never), some will enable jurisdictions to create their own systems and not have to use a third party collector. Baltimore City will be asking for complete and total reform of the system - from payment plans, to not having to sell the liens at all, to using In Rem only as a last resort. This is massive reform many of us have been working toward for decades, it’s very exciting! The goal is to ensure that no one has their home foreclosed because they cannot pay the taxes.
Changes to the Homeowner’s Property Tax Credit: The best way to avoid tax sale is for elders and those who make $60,000 or less to apply for the Homeowner’s Property Tax Credit. This is a credit that will significantly reduce your property tax burden and the City gets paid by the state. Currently applicants have to apply each year. Delegate Feldmark has legislation to change that to a recertification and other reforms to make it much easier for residents to apply for this credit.
Preventing Exclusive Right to List: Many constituents and residents in our city and state have unfortunately fallen prey to a new scam - there is a specific company that offers a few hundred dollars in exchange for the exclusive right to list the home for the next 40 years should the owner or heirs sell, and make more money off of the transaction. At my request, Del. Amprey is introducing legislation to make this listing an instrument that will be subject the transfer and recordation taxes. Then I’ll introduce a bill to add the taxes to this new instrument. It is our hope that this practice will end with these actions.
Limiting Wholesaling: The We Buy Houses companies are wholesalers - they are not licensed realtors for the most part, and offer lower prices to sellers, ask them to assign the contract to the wholesaler so they can turn around an sell the property for a higher value. Homeowners then do not get the full value of their property. Del. Rosenberg’s legislation requires any agent doing real estate transactions to be licensed, which would significantly curb this practice.
Budget Priorities: Baltimore needs millions to eliminate vacant and abandoned property through rehab or demolition - these funds should be used for stabilization, for the subsidy between the cost of rehab and what the home will be sold for or for affordable homeownership, and demolition when necessary. Mayor Scott has asked for $100 million for this effort, and I’m hoping we can double it. We’ll work hard for our community development needs as well.
You might ask why I’m not working on public safety or gun legislation, or any other topic. I’ll be happy to support legislation that furthers the goals of our city. I also can’t spend all my time in Annapolis like I used to because I am working hard to ensure challenges in our neighborhoods are addressed, and passing legislation here. I am really excited about our progress and look forward to the work at the state level.