Explanation of House Bill 1557

What is this bill about?

This bill creates a special program called the Program to Protect Individuals Unemployed or Furloughed Due to Federal Actions. It is aimed at helping people in Maryland who lose their jobs or are temporarily not working (furloughed) because of certain federal government actions – for example, a federal government shutdown or federal budget changes starting January 2025.

Key Points of the Bill

• Who qualifies?
  • Federal employees furloughed for 30 days or more during a government shutdown.
  • People unemployed because of federal government personnel actions, budget cuts, contract cancellations, or funding changes starting January 20, 2025.
  • Former federal contractors or employees/business owners affected indirectly by those federal actions.
• The program is run by: The Maryland Department of Labor, which will administer applications, verify eligibility, and notify qualified individuals of their rights.
• Protections provided:
  • Debt collection: Debt collectors must accept partial payments from qualified individuals and cannot charge late fees or repossess property based on debts related to their situation.
  • Credit reports: Consumer reporting agencies cannot add negative credit information about these individuals while they qualify for the program, effectively freezing bad marks related to this situation.
  • Loans and mortgages: Banks, credit unions, mortgage lenders, and loan originators must accept partial payments on home mortgages from qualified individuals and cannot charge late fees for missed payments during this time. They also must allow interest-free payment plans to pay back missed amounts over two years.
  • Utility services: Utility companies (such as electric and gas providers) cannot shut off service or charge late fees if the customer is a qualified individual and works out a payment plan.
  • Foreclosure, rent, and eviction protections: Courts must pause foreclosure or eviction cases involving qualified individuals for a reasonable time while verifying their status and allow partial rent payments without late fees or penalties.
  • Tax sales: The sale of a qualified individual's home for unpaid taxes must be withheld or delayed.
• Verification and application: Qualified individuals can apply to the program through the Maryland Department of Labor. They or their landlords etc., may request official verification of their status to get these protections.
• Time limits:
  • An individual can only be a qualified participant for up to 1 year or while not working.
  • After this period, protections may end but individuals can still work out payment plans.

What does this mean to everyday people?

If you are a federal worker or contractor affected by a federal shutdown or budget changes starting 2025 and lose your job or get furloughed for at least 30 days, this program gives you important protections:

• You won’t be hit with late fees or penalties on your bills or home loans during this time.
• Your credit report won’t be marked negatively because of this unemployment status.
• You can set up manageable payment plans to pay back what you owe.
• Your utility services can’t be cut off if you communicate and make payment arrangements.
• If you rent or own a home, eviction or foreclosure actions can be paused to give you time to recover.

The program is designed to give you some financial breathing room and consumer protections while you face job interruptions due to federal government actions beyond your control.

Emergency Measure

This bill takes effect immediately to quickly provide protections because it concerns urgent financial hardships caused by federal government shutdowns or changes.

Note: The bill also applies retroactively to certain loans and legal actions started before its effective date, so people already in those situations can benefit from these protections.

Explanation of House Bill 1411

What is this bill about?

This bill creates a new fund called the Insufficient Condominium Reserve Account Grant Fund. The purpose of this fund is to help low-income owners of condominium units pay for extra costs that come up when their condominium's reserve fund doesn't have enough money.

What is a reserve account?

A condominium reserve account is money set aside by the condominium association to pay for big repairs and maintenance work in the future (like fixing the roof or elevators).

Why is this fund needed?

Sometimes, the reserve account doesn't have enough money, so the condominium association has to increase the charges (called assessments) it asks from the unit owners to cover the shortfall. For low-income owners, these extra charges can be hard to pay.

Who can get help from this fund?

• Owners of condominium units with household income at or below 80% of the area's median income (considered low-income).
• Priority is given to low-income owners who are 65 years old or older.

How does the fund work?

• The fund will provide grants (money that doesn't have to be paid back) to help cover these extra charges.
• The fund will be managed by the Department of Housing and Community Development.
• Money in the fund will come from the state budget, interest earned by the fund, and other sources.
• The fund is special and will not expire (nonlapsing), meaning leftover money will stay in the fund.
• The fund’s money will be invested, and any interest earned will go back into the fund to help more people.

Additional details:

• The Department will set up the application process and inform people about the fund.
• Grant recipients have to report yearly on their condominium reserve account status.
• The fund is meant to supplement, not replace, other financial help available to unit owners.
• The bill will take effect on October 1, 2025.

In simple terms: This law sets up a special financial help program to assist low-income people who own condos when their buildings need to raise extra money for repairs. It helps make sure these owners aren’t left struggling to pay unexpected increases in condo fees.