Preemption, Density, and the New Rules of Engagement: How HB 538 Is Reshaping Maryland Real Estate
BYLINE: Barry O'Connell
When Governor Wes Moore signed the Housing Expansion and Affordability Act (HB 538), the administration pitched it as a bold, historic mandate to chip away at Maryland’s housing deficit by overriding local obstructionism. But if you talk to the land-use attorneys and local planning officials tasked with turning state mandates into actual dirt being moved, the narrative gets far more complex.
We are seeing local planning boards and state agencies continue drafting rules following recent legislative mandates on housing density and climate transition targets. Commercial real estate owners and developers are modeling compliance pathways for state building decarbonization mandates—like Building Energy Performance Standards (BEPS)—with an eye toward potential legislative adjustments in the 2027 session. Meanwhile, municipal and county planning commissions are grappling with implementation rules for state-backed high-density residential zoning around transit hubs, generating steady work for local land-use practices.
Some jurisdictions are digging in their heels against state preemption. Others are demonstrating how to integrate state guardrails smoothly into local code.
"I would note that many jurisdictions are doing a great job implementing the state’s housing guardrails," noted land-use attorney Tom Coale told The Maryland Wire this week. "Howard County is a model there."
The contrast between jurisdictions fighting the mandates and those seamlessly absorbing them isn't accidental—it is the direct result of how HB 538 was drafted, lobbied, and ultimately compromised in the halls of the General Assembly.
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Unlock the rest of this article to see the specific architects behind HB 538, the lobbying dynamics driving local implementation, and the tactical playbooks top land-use firms are using in Howard County and beyond.
THE ANATOMY OF A MANDATE: WHO ACTUALLY WROTE HB 538?
To understand why implementation looks so different across county lines, you have to look at the legislative origin story.
HB 538 was a cornerstone administration bill, pushed through the House with key leadership support from delegates like Marlon Amprey, Adrian Boafo, and David Moon. But while the Executive Branch provided the political air cover, the underlying statutory mechanics were heavily shaped by a coalition of smart-growth advocates, affordable housing developers, and regional land-use attorneys who recognized that local zoning boards were bottlenecking state housing supply goals.
The primary pressure points centered on three core elements now causing operational headaches for county attorneys:
Transit-Oriented Density (TOD): Overriding local restrictions to mandate density bonuses within 3/4 mile of passenger rail stations for projects setting aside affordable units.
Manufactured and Modular Preemption: Stripping local jurisdictions of the ability to outright ban modular and manufactured housing in single-family residential zones.
Streamlined Permitting: Capping the number of public hearings local boards can require for qualified projects, effectively neutering local stall tactics.
WHY HOWARD COUNTY IS WINNING THE IMPLEMENTATION RACE
While several charter counties spent early 2025 trying to carve out local loopholes or delay zoning map adjustments, Howard County’s Department of Planning and Zoning (DPZ) took a drastically different approach: proactive integration.
Howard County quickly issued formal policy guidance explicitly outlining how HB 538 integrates into the local code. Rather than forcing developers to litigate every density bonus or transit-hub overlay, Howard County created a transparent framework that gives applicants predictability while keeping local infrastructure checks intact.
This clear, predictable approach is why top land-use practitioners are using Howard County as the benchmark when advising developer clients across the state. It cuts down on endless appeals, lowers capital carry costs, and gives both the county and the developer a clear roadmap.
THE 2027 LEGISLATIVE HORIZON
The battle over land use isn't over—it’s just shifting venues. As commercial real estate developers model the cost of compliance for Building Energy Performance Standards (BEPS) alongside new housing density rules, the pressure on the General Assembly to offer statutory carve-outs or tax credits will peak heading into the 2027 legislative session.
Firms that understand both the technical land-use policy and the political undercurrents in Annapolis are the ones guiding these projects from concept to shovel. If your jurisdiction isn't following the Howard County model, expect a long, expensive cycle of board appeals and legislative pushback.