Maryland Constitution Article XI-H - City of Baltimore - Residential Financing Loans
Maryland Constitution – Article XI-H: City of Baltimore – Residential Financing Loans
Purpose:
Article XI-H grants the Mayor and City Council of Baltimore the constitutional authority to make or guarantee loans to help finance residential property improvements. The goal is to stimulate housing development and rehabilitation within Baltimore City.
🔹 Key Provisions:
Loan Authority:
Baltimore City may make or guarantee loans to individuals, businesses, or organizations for:
Acquisition
Construction
Rehabilitation
Improvement of residential buildings or property.
Funding Mechanism:
The City may issue and sell bonds to raise funds for these loans.
Bonds must be approved by a majority of voters in a city-wide referendum.
Loans may be made from the proceeds of these bonds.
Loan Terms and Conditions:
Terms, interest rates, security, and qualifications for loans are set by the City Council.
Loans may be secured or unsecured, as determined by ordinance.
The City can subordinate its loan claims to other liens, making its loan secondary if it promotes development.
Public Purpose Clause:
Loans made under this article are declared to serve a public purpose—including eliminating blight and providing safe housing.
Autonomy and Limitations:
The General Assembly is not required to pass enabling legislation—Baltimore may act independently under this authority.
However, all actions must comply with other applicable constitutional provisions and general laws.
🏠 Summary:
Article XI-H is essentially a home-rule amendment that empowers Baltimore City to address housing issues using public financing tools, without needing case-by-case approval from the state legislature. It reflects the State’s support for local solutions to urban housing challenges.
RELATED Blog
0 comments