MSLaw Blog

Freddie Mac published a Guide Bulletin on April 21 that summarizes recent changes to the Guide and rolls out a new Conventional Small loan product. These changes impact property inspection requirements, property management requirements and title requirements. Here’s what you need to know. The SBL Program is being folded into Freddie Mac’s conventional arm through a new product, “Conventional-Small.” This program aims to align the smaller transactions with standard Freddie Mac documentation but continues to allow for some streamlined processing that was

The rapid expansion and evolution of state and local property tax exemptions has become a critical tool in affordable and workforce housing finance. In many jurisdictions, these exemptions can materially improve project feasibility, enhance debt service coverage and, in some cases, function as a partial substitute for traditional subsidy sources. At the same time, these programs are highly jurisdiction-specific and frequently require careful structuring, ranging from nonprofit ownership overlays to public agency participation, ground lease arrangements and long-term regulatory agreements. As a

In welcome news for the industry and Miles & Stockbridge’s lender and developer clients, on September 23, 2025, the Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs published a Federal Register final notice that reduces Multifamily Mortgage Insurance Premiums (MIPs) to 0.25% across all FHA Multifamily programs. This Notice does not apply to HUD’s healthcare facility financing programs. Background/History President Donald Trump signed a presidential memorandum Jan. 20, “Delivering Emergency Price Relief for American Families and Defeating the Cost-Of-Living Crisis,” and an

Freddie Mac published a Guide Bulletin on Aug. 26 that imposes new requirements on mortgages originated on or after Oct. 1, 2025. These requirements should be familiar to those who also originate Fannie Mae loans. Freddie Mac now requires that Optigo Lenders deliver the following items in the full delivery package: For acquisitions loans:Copies of any property-seller-side settlement statements For all loans:Copies of all documents that evidence the chain of title for the 36-month period preceding the mortgage origination; A copy of the

Fannie Mae recently announced updates to its Multifamily Loan Documents with Lender Letter (25-04). Since that time, Fannie Mae released a revised Lender Letter (25-04R) that changed the mandatory date for use of the loan documents from July 28, 2025 to August 4, 2025. The updates may be used immediately and must be used for: (i) all Mortgage Loans (other than forward conversions), with a confirmed Commitment Date on or after August 4, 2025, and (ii) forward conversions occurring on

The Maryland Attorney General’s Office recently announced a series of fair housing enforcement actions, resulting in several major settlements with housing providers across the state. These actions address issues related to source-of-income discrimination, tenant screening practices and minimum-income requirements for voucher holders. Relevant Federal and State Law Unlike federal law, Maryland law includes “source of income” as a protected class for discrimination. Under Maryland’s HOME Act, passed in 2020, landlords cannot discriminate against individuals based on their source of income and

Continuing a focus on knowing your clients and fraud, Fannie Mae released last week Title and Closing Requirements for Multifamily Mortgage Loans Form 4650, a comprehensive update that will impact how you set up future closings. The requirements detailed in the new Form 4650 apply to all new loans under application on or after May 8, 2025. What’s New Approved Title Insurance Underwriter – Fannie Mae will be releasing an Approved Title Insurance Underwriter Schedule naming the Title Insurance Underwriters from which

Fannie Mae published its Preferred Equity Guide Update (25-06) and its Preferred Equity Checklist (Form 6441) in mid-April. Although unpublished iterations have been circulating for the past two years, lenders and law firms have interpreted the requirements in varying ways, at times leading to different outcomes for very similar equity structures. The Krooth & Altman Team at Miles & Stockbridge welcomes this newly published Checklist, as we expect it to bring more clarity and consistency to the treatment of preferred equity structures

“Build-to-rent” means what it sounds like: A builder constructs single-family homes specifically designed for renters. Also known as “build-for-rent,” these communities began in Phoenix during the Great Recession and have since spread across the Sunbelt. There were 83,000 build-to-rent construction starts last year, accounting for more than 8% of all single-family construction starts. Analysts believe demand will remain strong because the supply of for-sale homes remains tight due to high home prices and mortgage rates. Developers, investors, lenders and borrowers in

While there have been previous efforts to reduce the federal government’s real estate footprint, the scope and speed with which the Trump administration proposes to reduce that footprint is unprecedented. Acting through the U.S. General Services Administration (GSA), the administration is targeting a 50% reduction of leased office space. It has instructed the GSA to terminate GSA leases, which has been a source of confusion for landlords with tenants under GSA leases. Although government contracts generally permit federal agencies to terminate

Freddie Mac published Thursday an update to the Freddie Mac Guide, which included a discussion of various underwriting, fraud detection and loan document changes. Here's what you need to know. Loan Documents/Legal Matters Most of the changes to the loan documents, including Loan Agreement and Guaranty, are minor and ministerial in nature but widespread. The biggest change is to incorporate the provisions of splitting the note riders to the Loan Agreement and Guaranty directly into the bodies of the documents. This allows Freddie

The Mortgage Bankers Association hosted its annual Commercial Multifamily Finance Convention and Expo (CREF) in San Diego last week, bringing together industry leaders, experts and professionals. Members of the Krooth & Altman GSE and HUD Team at Miles & Stockbridge headed west to network, exchange insights and engage in dynamic sessions that tackled the fast-changing economic, regulatory and political landscape. Below are some of the key takeaways from the event that are important to know. Updated Guidance Coming from Fannie Mae, Freddie Mac Fannie

Maryland has long been a solar-friendly state, and the Brighter Tomorrow Act, signed into law by Gov. Wes Moore last month, will expand access and adoption of solar energy. The legislation is both a supportive and forward-looking policy aimed at enhancing sustainability, economic growth and technological advancement within Maryland. Some of the key takeaways from the act are: Creating the Small Solar Energy Generating System Incentive Program by the Maryland Public Service Commission (PSC). The program will allow eligible solar energy generating

Maryland Comptroller Brooke Lierman issued a letter Feb. 28 to address the challenges and concerns of tax practitioners regarding the policy and procedural changes to pass-through entity (PTE) filings and payments. Most significantly, the comptroller has agreed to provide a one-time waiver for taxpayers who missed electing PTE treatment on the first filing of the year. Background The comptroller said last April that, for tax years beginning after Dec. 31, 2022, PTEs are required to elect (or not elect) to pay tax

The Montgomery County Department of Finance published the required biennial update of its development impact taxes for transportation and public school improvements May 1. These taxes must be paid prior to the issuance of building permit(s) for a project. Absent County Council action to the contrary, effective July 1, all transportation impact tax rates will increase by 9.47%. This increase represents the change in the Engineering-News Record's Baltimore Construction Cost Index for calendar years 2021 and 2022. Meanwhile, most school impact

Montgomery County is in the process of updating several of its master plans, which make recommendations regarding land use, zoning, transportation and public facilities that shape the future development of specific properties. The master plan adoption process entails the development of a draft plan by Montgomery County Planning Staff (“Planning Staff”) and the Planning Board, approval by the County Council, and, finally, adoption by the full Maryland-National Capital Park and Planning Commission. Below is a list of key master plans

The City of Rockville has launched the rewrite of its Zoning Ordinance to modernize it and implement the 2040 Comprehensive Plan of the City of Rockville (2040 Plan). Because the city anticipates the rewrite to be a lengthy process, the Mayor and Council have introduced an interim zoning text amendment (Interim ZTA) to allow development in accordance with the 2040 Plan in the near-term. The city’s Planning Commission is reviewing and developing its recommendations to the Mayor and Council on

Many U.S. enterprises and U.S. real estate holdings have some degree of foreign ownership. Federal law requires the filing of detailed reports on foreign ownership every five years by U.S. enterprises “in which a foreign person . . . owned or controlled, directly or indirectly, 10 percent or more of the voting securities in an incorporated U.S. business enterprise, or an equivalent interest in an unincorporated business enterprise.” 15 C.F.R. part 801.10(b). The U.S. government expects this requirement to apply

A divided three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled earlier this month that the National Labor Relations Board violated the Administrative Procedure Act (APA) in 2019 by issuing certain rules governing union election procedures without seeking public comment. The 2019 Rule – issued by a Trump Board – modified what is colloquially known as the Obama Board’s 2014 “quickie election” rules. The AFL-CIO challenged the 2019 Rule and in 2020, now-Supreme Court Justice Ketanji Brown

The Federal Trade Commission (“FTC”) announced Jan. 23 annual revisions to the applicable thresholds under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). These revisions will apply to all transactions closing on or after Feb. 22. The new minimum size of transaction threshold has been adjusted upward, from $101 million to $111.4 million. Under the HSR Act, the parties to any proposed acquisition of assets, voting securities or non-corporate interests meeting prescribed thresholds must notify the FTC

The U.S. Environmental Protection Agency (“U.S. EPA”) has revised the standards by which real property purchasers, lessees and environmental professionals should conduct a Phase I Environmental Site Assessment (“Phase I ESA”). Compliance with the new rule matters because failure to follow the new standard may cost a client the protection of important legal defenses to Superfund claims for past contamination discovered after the transaction closes. The agency has taken final action to amend the standards for conducting an All Appropriate Inquiries

Under recent amendments to Montgomery County’s Energy Benchmarking and Performance Standards Law, residential and non-residential buildings in the County - including buildings in Rockville and Gaithersburg - that are 25,000 gross square feet (GSF) and greater must now benchmark and report building profile and energy data to the Montgomery County Department of Environmental Protection. Effective Aug. 1, 2022, these building types must begin reporting to the County per the following schedule: Non-Residential Buildings 25,000 to 50,000 GSF and previously exempted buildings such

District of Columbia Mayor Muriel Bowser signed two significant pieces of legislation recently to build on the success of the Clean Energy DC Omnibus Act of 2018 and to further help transition the District to a new energy future. Both acts build on and accelerate the District of Columbia’s commitment to obtaining renewable energy and becoming a better environmental steward. The first piece of legislation is the Climate Commitment Act of 2022 (A24-0527) (the “Climate Commitment Act”). The Climate Commitment Act

On July 26, 2022, the Montgomery County Council unanimously passed ZTA 22-02, which allows for additional height and development flexibility for research and development (“R&D”) and medical/scientific manufacturing facilities in the Commercial Residential, Life Science Center, Employment Office, and Moderate Industrial zones. For qualifying properties, subject to Planning Board approval, the ZTA allows for additional height and flexibility for R&D and medical/scientific manufacturing facilities as follows: On properties where the maximum zoned height is 100 feet or less, building height for

On June 14, 2022, the Montgomery County Council introduced ZTA 22-05, which proposes substantial revisions to Montgomery County’s Sign Ordinance. The intent of the ZTA is to remove inefficiencies from the sign review process and clarify the regulatory status of certain types of signs. Key changes proposed include: Allowing the Department of Permitting Services to approve changes to canopy signs without the need to amend the applicable Site Plan. Providing the Planning Board authority to approve residential entrance signs without further approvals

In a significant regulatory change that will impact real property transactions and loan financings, the Maryland Department of the Environment (MDE) joins a handful of states that requires the reporting of historical petroleum contamination above applicable cleanup standards or action levels if discovered or detected while conducting environmental due diligence investigations. The revised regulation at COMAR 26.10.08.01.B took effect on June 13, 2022. The regulation now imposes upon the environmental consultant or person conducting an environmental site assessment and/or the owner of

When can a data breach can get worse? When the process of notifying victims creates a second breach. Take the example of a cancer treatment center that recently paid $425,000 to settle allegations that included a faulty notification process following a breach. The story provides an important lesson. One Breach Leads to Another It began with a spear phishing attack. Employees at the facility fell victim to the attack and their email accounts were compromised. The result: protected health information and other

Well, summer is more than half over, and although the initial pandemic has nearly run its course, a new COVID variant appears to be on the rise. Before we hunker down and mask up to fight off this stronger DELTA version of COVID, we urge the mortgage finance community and state regulators to permanently apply the valuable lessons learned from the initial COVID convergence and allow licensed mortgage loan originators (“MLOs”), under proper conditions and safeguards, to originate residential mortgage

In my last post, “Real Estate Alphabet Soup: Y Is for Yard”, I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” and completes the recipe with the final ingredient, the letter Z. I once heard a marketing consultant suggest that everyone should have a brief “elevator speech” for responding to inquiries about what you do for a profession and, in my case, what areas of law I practice. So my short

In my last post, “Real Estate Alphabet Soup: X Is for X-factor” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter Y. Y is for “Yard.”  Not a “yard” in the sense of a precise linear measurement, but rather, a “yard” in the sense of the open area situated around buildings and structures. Although, of course, there are precise measurements required to determine the location, boundaries and area

In my last post, “Real Estate Alphabet Soup: W is for Warranties” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter X. I knew when I started to stir up this “alphabet soup” that the letter X would prove to be a challenging ingredient to mix into the soup. And now that I have reached this step in the recipe, that challenge still stands, but I’ll do my

In my last post, “Real Estate Alphabet Soup: V is for Variance” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter W.” W is for “Warranties”. A “warranty” is an assurance by one party in a transaction to the other party of the existence of a fact upon which the other party may rely. The “warranty” is intended as a promise that certain matters are true. If a

In my last post, “Real Estate Alphabet Soup: U Is for Unities,” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “V.” V is for “variance.” In the realm of real estate and, more specifically, zoning law, a “variance” is an exemption from the application of certain zoning ordinances or regulations, thereby permitting a use which varies from the regulations otherwise permitted under the zoning ordinance. A “variance” may

The Consolidated Appropriations Act of 2021 (CAA) was signed into law on December 27, 2020, after receiving overwhelming bipartisan support. The Act, in addition to providing appropriations for various government departments, as well as coronavirus stimulus, made a number of changes to the Bankruptcy Code (Title 11 of the United States Code). Landlords of commercial properties should be aware of certain changes directly impacting their rights under the Bankruptcy Code. The amendments addressed below, however, are temporary and, absent further

In my last post, “Real Estate Alphabet Soup: T Is for Tenancy” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “U.” U is for “Unities”. Under the common law there are four “unities” that are required in order to create certain forms of tenancy.  As a bit of a refresher, you may recall from my last post that some of the forms of taking “tenancy” or title

In my last post, “Real Estate Alphabet Soup: S Is for Survey,” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “T.” T is for Tenancy. A “Tenancy” is a right to hold title to property and can take several forms of title or ownership. A “Sole Tenancy,” by definition, is an interest held totally and solely by one individual tenant. The most common forms of joint ownership

In my last post, “Real Estate Alphabet Soup: R Is for Real Property” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “S.” S is for “Survey.”  A “survey” or “land survey” is the determination of a three dimensional image of land and positions, using points and distances, as determined by electronic distance measurements. A professional land “survey” is prepared by a trained, licensed professional land surveyor using

Its Presidential election time, and we strongly encourage you to vote on or before November 3rd. If you have not yet done so, please vote, whoever may be your preference. Now that we have addressed our civic duty, we also encourage you to elect to renew any state licenses you hold through the Nationwide Multistate Licensing System (“NMLS”). Regardless of whether you hold a mortgage finance, consumer credit, money service business, collection agency, other state license through the NMLS, the renewal period

The new California law discussed in this Legislative Alert does not have the earth-shattering significance of Trump versus Biden, or even Godzilla versus Mothra, but tremors have originated on the Pacific coast and are likely to be felt near the Potomac and in all lands in between. Late last month, California Governor Gavin Newsom signed into law California Assembly Bill 1864, creating a state agency that is analogous to the federal Consumer Financial Protection Bureau ("CFPB"), an agency that has been under

In my last post, “Real Estate Alphabet Soup: Q Is for Quitclaim” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “R.” R is for “Restrictive Covenants” which are written promises governing and restricting the use of “Real Property”, which can include the kinds of buildings that may be constructed on it. Restrictive Covenants may be included in a deed or in a separate written document, which is

A look at selected soon-to-be-reported decisions on various False Claims Act issues. This month we can glean three quick lessons: 1) A lesson for corporate executives: If you are the owner/CEO, don’t transfer company funds to your personal bank account, particularly if the funds represent Medicaid payments received from inappropriately submitted claims. A home health care company, with a single owner/CEO and six employees, allegedly submitted claims for reimbursement to the D.C. Medicaid program for services provided to patients without adequate documentation of

In my last post, “Real Estate Alphabet Soup: P Is for Property” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “Q.” Q is for “Quitclaim”.  A “Quitclaim Deed” is a form of deed which conveys only that right, title or interest which the owner or grantor has, or may have, in the property conveyed, and does not require that the grantor thereby necessarily pass good title to

In my last post, “Real Estate Alphabet Soup: O Is for Option” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “P.” P is for “Property”.  The legal term “property” in the world of real estate can include both personal property and real property. “Real Property” includes real estate; specifically, the land and improvements built and situated upon it.  “Personal Property” may include items contained within the improvements

On May 23, 2020, Howard County Executive Calvin Ball approved emergency legislation (Bill No. 33-2020) (the “Bill”) passed by the Howard County Council, which prohibits certain rent increases, changes in lease terms and certain other actions by residential and commercial landlords and mobile home park owners. This discussion will focus on the Bill’s provisions regarding commercial landlords and tenants. Prohibitions on Landlords During the Catastrophic Health Emergency declared by Governor Hogan on March 5, 2020 (the “Emergency”), and thereafter for the duration of

In my last post, “Real Estate Alphabet Soup: N Is for Notice” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “O.” O is for “Option”.  In both the sale and leasing of real estate there may be an “option” involved. An “option” contract is a binding agreement or contract between the parties in which the property owner agrees that a party shall have the privilege to purchase the

In my last post, “Real Estate Alphabet Soup: M Is for Force Majeure” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “N.” N is for “Notice.”  Every real estate contract or lease should include a paragraph containing “notice” provisions. Notice provisions typically will include the name, address and contact information for where and how any notice should be provided when required under the terms of the contract

The coronavirus has had an adverse impact on many businesses and affected their ability to meet financial obligations. To relieve financial strain, business owners have various options to discharge debt, modify loans and transfer property to their lenders. Below are some of the tax issues a business should consider when assessing debt relief options. Note this list is not exhaustive, and the options available will vary depending on a business’s particular situation. Transferring Property to Lender. The tax treatment of a

On April 9, 2020, the IRS issued Notice 2020-23 (the “Notice”), which extends additional tax deadlines to cover individuals, estates, corporations and others. The Notice also provides relief with respect to certain “Specified Time-Sensitive Actions” that are due to be performed on or after April 1, 2020, and before July 15, 2020. For purposes of the Notice, the term “Specified Time-Sensitive Action” includes certain deadlines for taxpayers to identify property and complete a 1031 exchange. It also includes the prescribed

In my last post, “Real Estate Alphabet Soup: L Is for Lease” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “M.” As I write this blog, we are in the midst of the COVID-19 coronavirus pandemic. So I’m working remotely from home and “social distancing” to do my part and civic duty in helping to “flatten the curve” and slow the spread of the virus. When I first

The COVID-19 pandemic is creating havoc on all business sectors, including the commercial real estate industry. Among many challenges are determining safe and secure mechanisms for documenting business transactions and coordination and transmittal of the information needed to consummate them.  This is an appropriate time to revisit the benefits of blockchain, a transparent and secure method of document and information delivery, which has the added benefit of reducing personal interaction between the participants to the transaction. Blockchain, once known primarily as

On Friday, April 3, 2020, Maryland Governor Larry Hogan issued Executive Order 20-04-03-01, which amended and restated his March 16, 2020, Executive Order in its entirety.  In the March 16 Executive Order, Governor Hogan placed temporary prohibitions on evictions for residential real property. The April 3 Executive Order extended that temporary prohibition to commercial and industrial real property. Therefore, until the current state of emergency is terminated and the catastrophic health emergency is rescinded, no Maryland court may grant judgment for

Many jurisdictions, including Maryland, the District of Columbia and Virginia, have faced court closures and other logistical issues surrounding the current COVID-19 emergency. This is in addition to proclamations and orders issued by the Department of Housing and Urban Development that have placed a moratorium on foreclosures and evictions for millions of Americans with FHA-insured mortgages for a period of 60 days. This article highlights the temporary changes to the foreclosure and eviction process in Maryland, D.C. and Virginia. Maryland In Maryland,

A key tool in mitigating the risks due to unforeseen events is the force majeure clause contained in many commercial and other types of contracts.  In various states, including Maryland, residential and commercial construction companies have been deemed “essential” and may remain open even when a shelter-in-place order has been executed by a state’s Governor.  So how will COVID-19 affect construction contracts and, in particular, will a force majeure clause contained in a construction clause provide any relief should delays

To assist our clients with properties in Montgomery and Frederick Counties, and the Cities of Gaithersburg, Rockville and Frederick, with understanding how the Covid-19 related closures may affect their pending and anticipated land use and regulatory entitlement reviews, we offer below a summary of how the various jurisdictions are approaching the situation. This information is current as of March 22, and is subject to change at any point. For further information, or to better understand how these closures may impact

Commercial landlords and tenants are encouraged to closely review their lease documents to determine (1) whether, and to what extent, the COVID-19 events, declarations and restrictions qualify as a force majeure performance excuse under the applicable lease, and (2) any applicable requirements for providing notice of nonperformance under that lease. Force majeure provisions are included in many commercial leases and generally operate to excuse a party’s nonperformance when an event outside of the party’s control prevents them from fulfilling their

In my last post, “Real Estate Alphabet Soup: K Is for Knowledge” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “L.” L is for “Lease.” A Lease is a written agreement between two parties involving a right to the use and possession of certain real property for a set period of time. The first party is the “Lessor” sometimes also referred to as the “Landlord”, which is

In my last post, “Real Estate Alphabet Soup: J Is for Just Compensation” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “K.” K is for “knowledge.” In the realm of real estate, just as they say in life, “knowledge is power.”   “Knowledge” from a real estate perspective, and particularly for a potential purchaser, is essential to ensuring that the purchaser knows exactly what they are buying

In my last post, “Real Estate Alphabet Soup: I Is for Improvements” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “J.” J is for “just compensation.” In the realm of real estate, “just compensation” relates to the government’s “taking” of a property under its power of eminent domain. A government can exercise its power of eminent domain to “take” a property for a public purpose. The Fifth

In my last post, “Real Estate Alphabet Soup: H is for Homeowners’ Association” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “I.” I is for “Improvements.” In the area of real estate, “improvements” are a valuable addition to property, or an upgrade or enhancement to its condition, more than mere repairs, the cost of which, in terms of labor or capital, are intended to enhance the value,

In my last post, “Real Estate Alphabet Soup: G is for Guaranty” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “H.” H is for “homeowners association.” A homeowners association or “HOA” is an incorporated or unincorporated association which has the authority to govern a group comprised of individual lot owners or home owners within a development of properties, often referred to as a subdivision. The rights afforded

In my last post, “Real Estate Alphabet Soup: F is for Foreclosure” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “G.” G is for “guaranty.” A guaranty is a promise or agreement to answer for, that is, to be responsible for, the debt or default of another. The “guarantor” is the person who makes the promise or “guaranty” for the benefit of the “guarantee” or beneficiary. The

Banks, builders, developers and all those active in commercial real estate, particularly in Maryland, D.C., and Virginia, should be closely following proposed new Treasury Department rules governing foreign investment in real estate. Those rules may greatly complicate commercial real estate transactions in these states, especially transactions in real property near military installations.   Depending on the final wording of certain key provisions, these rules may sweep in far more transactions than Congress or the Treasury Department intended, transactions without any plausible

Certain rental real estate owners are likely resting more comfortably knowing that they may take certain deductions from their federal taxes due to the IRS’ recent finalization of its earlier proposed Revenue Procedure. This Revenue Procedure delineates a safe harbor under which certain rental real estate owners may deduct income from qualified businesses or trades under Internal Revenue Code Section 199A. Until now, there had been much confusion as to which rental real estate owners were permitted to take this

In my last post, “Real Estate Alphabet Soup: E is for Easement and Eminent Domain” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “F.” F is for “foreclosure.” A foreclosure is the termination of a right to property. A foreclosure action is an equitable action to compel the owner of the property to make payment on a mortgage or other debt, such as a deed of trust,

In my last post, “Real Estate Alphabet Soup: D is for Deed” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “E.” E is for “easement.” An easement is a right, created by either express or implied agreement, of one land owner (the servient estate) to allow another land owner (the dominant estate) to have lawful use and benefit of its land for the specific purpose stated. There

In my last post, “Real Estate Alphabet Soup: C is for Contract” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “D.” D is for “deed.” As part of any agreement for the transfer of real estate there must be a deed from the grantor (the owner or seller) conveying to the grantee (the buyer or recipient) all of the grantor’s right, title and interest in the real

In my last post, “Real Estate Alphabet Soup: B is for Buyer” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “C.” C is for “contract.” As part of any agreement for the transfer of real estate there must be a contract of sale between the seller and buyer. For a contract to be valid there must be an offer and an acceptance of the offer, or a

In my last post, “Real Estate Alphabet Soup: A Is for Acquisition” I introduced a new primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter B. B is for “buyer.” As part of any agreement for the transfer of real estate, there must be a willing seller and a willing buyer. A “bona fide” purchaser or “buyer” in the ordinary course of business is one who purchases the property, for valuable

When I am asked what I do or what type of law I practice, my ten second “elevator speech” is to say that I primarily focus on every aspect of real estate law “from A to Z, from acquisition to zoning and everything in between,” among other areas. The general practice of real estate law, which is very broad, diverse and “covers a lot of ground,” if you’ll pardon the pun, really is an “alphabet soup” of sorts. So in

On a day yielding no sunshine, but rather the first snow of the winter season in parts of Maryland, the Maryland Court of Special Appeals reissued its decision inBoard of County Commn. of Washington County v. Perennial Solar, LLC, (citations currently unavailable), as a reported opinion. Perennial Solar may now be used as precedent for the proposition that state law preempts local zoning authority with respect to solar fields. On August 28, 2018, the Court of Special Appeals issued unreported opinion, Board of County

The U.S. Department of Treasury (“Treasury”) is expected to issue regulations providing administrative rules and guidance to clarify the operation and application of the Opportunity Zone program (the “OZP”); such regulations are currently under review by the Office of Management and Budget as of the date hereof. This long-awaited Treasury guidance is expected as early as the end of October 2018. In December 2017, Congress passed the Tax Cuts and Jobs Act, which amended the Internal Revenue Code (the “Code”) to

On October 1, 2018, Maryland Senate Bill 853, also known as Maryland’s General Contractor Liability for Unpaid Wages Act, went into effect, expanding the liability of a general contractor on a construction project under the Maryland Wage Payment and Collection Law. In the paragraphs below, we detail what this means for contractors, subcontractors and their employees.   Generally, the Maryland Wage Payment and Collection Law requires that an employer set regular pay periods and pay employees at least once every two

They say you can’t stop progress. And growth and development is an inevitable part of progress. The State of Maryland and its more rural counties have made efforts to find some balance to the inevitable growth and development by providing incentives to farmers to preserve agricultural land and our rural areas.  Despite all of the growth and development in Maryland, agriculture still remains an important industry in Maryland, and particularly in some of the less urban metro areas. Fortunately, the

The rains over the past few months of summer piqued the curiosity of some Maryland property owners who now would like to know if: (1) neighbors are liable for flood damage to adjacent or nearby properties, and (2) they are able to redirect water from their properties when doing so adversely impacts other properties. Much of Maryland experienced record breaking levels of rainfall over the course of the summer. While the rains may have caused certain crops to flourish, the

A breath of fresh air and a second wind was breathed into dreams and potential plans for a large wind farm in Allegany County, Maryland. The Court of Special Appeals of Maryland in Dan’s Mountain Wind Force, LLC, et. al. v. Allegany County Board of Zoning Appeals, __ Md. App. __, __ A.3d __ (2018)(Case No. 804, September Term 2016; filed April 3, 2018), recently held that the Allegany County Board of Zoning Appeals (the “BZA”) did not properly apply the

Online retail giant Amazon recently shortened the list of potential locations for its future second corporate headquarters, referred to as Amazon’s “HQ2”, to twenty locations around the country. Three of those 20 locations for the potential new HQ2 site are located in the Maryland, District of Columbia and northern Virginia region. Regions that made the “short list” for the potential future HQ2 are all anxious to have Amazon select their area for the future HQ2 site, which Amazon estimates will

The DLLR recently issued new guidance concerning the Maryland Healthy Working Families Act for employers. The new guidance takes the form of sample policies and updated or new responses to the previously posted frequently asked questions. The new guidance is helpful and may answer some of the questions employers face as they implement the Act. The new guidance may be found here. The sample policies address three different scenarios: (i) an employer that awards sick and safe leave at the beginning of

The Maryland General Assembly is currently considering House Bill 1390 (“HB1390”). As introduced, HB 1390 will materially impact the utility of the Development Rights and Responsibility Agreement (“DRRA”) for land owners, developers and local jurisdictions.    In a three part blog series that included “Development Rights and Responsibility Agreements: The Give and Take of Development”; “Two Recent Maryland Rulings on Development Rights and Responsibility Agreements”; and “A New Maryland Ruling on Development Rights and Responsibility Agreements – Score Another Round for

In a case of first impression in Maryland, the Court of Appeals of Maryland recently held in Waterman Family Limited Partnership v. Boomer, 456 Md. 330, 173 A.3d 1069 (2017) that a newly elected Board of County Commissioners (“BCC”) has the common-law authority to rescind the decision of an outgoing BCC’s approval of a rezoning project. The case arose out of the Town of Queenstown (the “Town”) in Queen Anne’s County (the “County”), on the eastern shore of Maryland when the Waterman

H.R. 1, originally known as the “Tax Cuts and Jobs Act,” makes certain changes to mortgage interest and property interest deductions. These changes will affect taxpayers who own real property, including homeowners and companies that own their business properties. Mortgage Interest Deduction Current law provides that “qualified residence interest” is generally allowed as an itemized deduction. Qualified residence interest includes interest paid or accrued on debt incurred in acquiring, constructing, or substantially improving a taxpayer’s residence (“acquisition indebtedness”) and home equity indebtedness.

The Maryland Court of Appeals recently heard and decided a case involving Development Rights and Responsibility Agreements.  In my first blog post on this topic, “Development Rights and Responsibility Agreements: The Give and Take of Development.” I discussed the purposes of and requirements for a Development Rights and Responsibility Agreement (“DRRA”) between a land developer and the local government having jurisdiction over the property. In my subsequent blog post, “Two Recent Maryland Rulings on Development Rights and Responsibility Agreements.” I discussed two decisions by

Amid the uncertainty plaguing brick and mortar retail establishments, some commercial landlords may find themselves with an extra tool in their arsenals to temporarily stave off tenant vacancies: continuous operations clauses. Conversely, these same clauses may force some commercial tenants to incur operational losses. Continuous operations clauses are covenants commonly found in commercial leases that compel tenants to operate efficiently and profitably by requiring them to conduct regular business at all times during the lease term. Some continuous operations clauses

On March 7, 2017 and June 27, 2017, respectively, the Montgomery County Council enacted Bills 42-16 and 13-17 to provide a property tax credit for elderly individuals and retired veterans. Individuals eligible to receive the tax credit are either: (i) individuals sixty-five years old or older (birthday on or before June 30, 1953) who have lived in the same dwelling in Montgomery County, which is assessed for no more than Six Hundred and Fifty Thousand Dollars, for at least forty

In my previous article “The Tiny House Craze: Zoning Laws Could Be a Tiny Impediment” I discussed the popular new “tiny house” trend in residential housing options. Along with the “tiny house” craze, another new and growing trend in housing options, particularly in urban areas, is the increasing popularity of the “micro unit.” Whether the popularity and demand is being driven by economic factors and the need for more affordable housing, or by peoples’ preference to downsize to a more simplified lifestyle,

In Private Letter Ruling 201725022 (the “PLR”), the IRS determined that rental income an S-corporation received from its operations is not passive investment income that would subject the S-corporation to termination. In the PLR, the taxpayer was an S-corporation active in the business of acquiring, developing, leasing and managing commercial real estate, primarily medical office suites and clinics.  The taxpayer received rental income in connection with such operations. An S-corporation with accumulated earnings and profits will be subject to the highest level

Beginning on October 1, 2017, several new laws will go into effect in Maryland governing condominiums and homeowners associations (“HOA”). With so much of new residential real estate being developed as part of an HOA or a condominium regime, these new laws will affect many homeowners in Maryland. HOA Resale Inspection Fee – Under this new bill, an HOA is now authorized to charge a fee of up to $50.00 to conduct an inspection in connection with the resale of a lot

A Country Inn provides a venue for a cozy dinner or event and possibly an overnight stay nestled in a rural setting in Montgomery County. It is a nice, relaxing getaway from the hustle and bustle of the busier parts of Montgomery County. However, the Montgomery County Council is proposing to further limit Country Inn locations. Under the Montgomery County Zoning Ordinance, Country Inns that were not approved before the October 30, 2014 effective date of the comprehensive amendment to the zoning

As I write this article, powerful Hurricane Irma is bearing down on Florida, and Hurricane Jose is close behind it, farther out in the Atlantic Ocean. Hurricane Irma has already devastated parts of the Caribbean Islands, and now threatens Florida. By the time you read this, sadly, there will have been more damage and devastation. And these two storms come on the heels of Hurricane Harvey which just recently wreaked its own havoc on the City of Houston and coastal

With anticipation and wonder many of us stood still for several moments on August 21, 2017 hoping to catch at least a glimpse of the much anticipated total eclipse of the sun. Whether you were fortunate to be in the area of “totality” or anywhere else in the contiguous United States, you could witness at least a portion of the full solar eclipse (with proper eye protection of course). A total eclipse of the sun is a rare occurrence, especially one

The “tiny house” movement is all the rage right now. The cause of the craze may be many faceted. Whether the popularity and demand is being driven by a shift in peoples’ preference to downsize to a more simplified lifestyle (remember Henry David Thoreau’s advice to “…simplify, simplify”) or whether it is driven by economic factors and the need for more affordable housing, the “tiny house” is becoming more popular and common. So how will local governments deal with the demand

Co-working space offers the amenities of a large sophisticated office to companies of varying size without the hassle of dealing with buying furniture, securing utility hookups, or buying coffee. The upside to spaces popularized by companies like “WeWork” is that they are turn-key. No hassle, no fuss, just show up and work. This new way of using space may be good for some, but first, we must evaluate the form in which this space is often provided to companies—via a

In my previous blog post, “Development Rights and Responsibility Agreements: The Give and Take of Development,” I discussed the purpose and requirements for a Development Rights and Responsibility Agreement (“DRRA”) between a land developer and the local government having jurisdiction over the property. Now that developers are using DRRAs, and as issues inevitably arise regarding the interpretation and enforcement of a DRRA, those agreements are being put to judicial scrutiny. Under Maryland case law, the rights of a land developer do not “vest”

Under Maryland law, the rights of a land developer to develop property for commercial or residential uses generally do not “vest” until there is some visible, lawful, construction on the property. Of course, development of a property takes time, and intervening market conditions can have a significant impact on the timing, financial viability, and ultimate development of a property. As a way to provide protections from uncertainties, both to the developer and to the local government, Maryland adopted laws to

Last week the Trump Administration issued its FY2018 federal budget, which begins October 1. The plan would reduce HUD funding by $6.2 billion, changing the agency’s total funding from $46.9 billion in 2017 to $40.7 billion. This reduction in funding represents a fraction of the cuts needed to offset a proposed $54 billion increase in defense spending, increased spending for immigration enforcement and border security, and $200 billion in infrastructure spending over the next decade. A copy of the budget

The City of Cambridge, Massachusetts recently sold $2,000,000 of community-sourced minibonds (the “Community Bonds”) to finance various capital projects, including school building renovations and street and sidewalk improvements. The Community Bonds are referred to as “minibonds” because (a) they were marketed only to residents of the City of Cambridge, (b) minimum denominations were lowered to $1,000 from the customary $5,000 and (c) individual orders were capped at $20,000. The hope of such a sale is to engage residents and to