Maryland Executive Order 01.01.2026.17: Housing Innovation

EXECUTIVE ORDER 01.01.2026.17

Housing Innovation

WHEREAS, Maryland faces an acute housing shortage, with an estimated 184,000 new units needed by the end of2030 to meet current demand and projected population growth;

WHEREAS, The high cost of housing in the state, driven by undersupply, is a significant constraint on economic growth, making it harder for the state to attract and retain a skilled workforce and preventing working Maryland families from finding homes near their jobs and from attaining homeownership;

WHEREAS, The Moore-Miller Administration and Maryland General Assembly have taken significant actions to protect housing stability, promote homeownership, increase supply, streamline permitting and approval processes, and reduce housing costs;

WHEREAS, Further impactful State-level initiatives and partnerships are needed to build upon previous successes and existing programs, maintain momentum, and focus State resources on the urgent housing affordability cns1s;

WHEREAS, As part of the Moore-Miller Administration's commitment to increasing affordability and ensuring all Marylanders are able to obtain safe, stable housing that fits their needs, State government must develop and implement innovative solutions to high building costs and other constraints on housing construction; and

WHEREAS, In order for Maryland to address its housing crisis and prevent population loss and economic stagnation, State government must build upon previous actions to spur housing construction by working to champion pro-housing legislation in the Maryland General Assembly and other reforms, developing innovative solutions to the high costs of building housing, accelerating the adoption of new, more cost-efficient construction techniques, and developing a workforce optimized to address the State's urgent need for more housing.

NOW, THEREFORE, I WES MOORE, GOVERNOR OF THE STATE OF MARYLAND, BY VIRTUE OF THE AUTHORITY VESTED IN ME BY THE CONSTITUTION AND LAWS OF MARYLAND, HEREBY PROCLAIM THE FOLLOWING EXECUTIVE ORDER, EFFECTIVE IMMEDIATELY:

A. Maryland Housing Innovation Incubator.

1. Establishment.

a. There is hereby established as a unit within the Maryland Department of Housing and Community Development ("DHCD"), the Maryland Housing Innovation Incubator ("Incubator").

b. The Incubator shall serve as the State's housing construction research, development, and innovation hub and shall identify, evaluate, test, and advance transformative solutions to address the underlying causes of Maryland's housing shortage.

c. DHCD shall designate a Director of the Incubator who shall coordinate and oversee the Incubator's activities pursuant to this Executive Order.

d. DHCD may designate other State personnel or contractors to administer and support the Incubator's activities.

e. Subject to applicable law, the Incubator may:

i. Pursue funding opportunities to support its' programs and activities; and

ii. Receive and administer funding from State appropriations, philanthropic contributions, grants, partnerships, and other lawful funding sources.

2. Responsibilities. The Incubator shall:

a. Conduct research and analysis concerning housing production, affordability, land use, permitting, infrastructure, supply chains, construction methods, housing finance, workforce development, and other factors affecting Maryland's housing supply;

b. In consultation with the Advisory Council established under Section B of this Executive Order, identify opportunities to modernize, simplify, and improve State and local regulations, policies, and administrative processes affecting housing production and affordability;

c. Design, implement, and evaluate pilot projects intended to test innovative approaches to housing challenges, including:

i. Emerging construction technologies; ii. Innovative construction methods and processes; iii. Policies or regulatory changes to support adoption of new technologies and methods; and iv. Innovative financial products and business models;

d. Ensure pilot programs are designed to produce measurable outcomes and practical findings and recommendations for implementation by State and local governments;

e. Develop and implement recommendations for scaling successful pilot programs and innovative practices throughout the State;

f. Develop recommendations concerning regulatory reform, process improvement, administrative modernization, technological innovation, financing tools, workforce development strategies, and other actions intended to increase housing supply and improve housing outcomes;

g. Subject to available resources and personnel, provide technical assistance, guidance, best practices, model policies, and implementation support to State agencies, local governments, housing providers, and other stakeholders; and

h. Within six (6) months of the effective date of this Executive Order, launch an initiative to support the expanded deployment of factory-built and modular housing, as described in Section C below.

3. Collaboration and Partnerships.

a. The Incubator shall collaborate with the Governor's Innovation Team and may partner with State agencies, local governments, institutions of higher education, nonprofit organizations, research institutions, foundations, industry organizations, private-sector entities, and any other entities or individuals determined to be appropriate.

b. The Incubator shall provide opportunities for entrepreneurs, researchers, practitioners, and subject matter experts in the construction, real estate, design, technology, infrastructure, finance, planning, and related sectors to collaborate in identifying and advancing innovative housing solutions.

c. The Incubator may convene or participate in working groups, advisory panels, stakeholder forums, innovation challenges, demonstration projects, and other collaborative initiatives to advance its mission.

4. Research and Programs.

a. The Incubator shall engage subject matter experts from a broad range of disciplines to explore innovative solutions to Maryland's housing supply and affordability challenges.

b. The Incubator may conduct research, feasibility studies, demonstrations, and pilot programs related to housing policy, development practices, financing tools, regulatory modernization, construction innovation, publicsector process improvement, and other housing-related topics.

c. The Incubator shall prioritize the housing topics recommended by the Advisory Council established under Section B of this Executive Order, for focused research, policy development, and pilot program implementation.

d. On at least a quarterly basis, the Incubator shall provide the Advisory Council with a report on its activities, findings, and recommendations for policy reform based on its research and findings.

5. Reporting. On or before October 1, 2027, and annually thereafter, DHCD shall submit a report to the Governor summarizing the Incubator's progress, including:

a. Research activities;

b. Partnerships and new funding sources established;

c. Pilot programs launched or completed;

d. Measurable outcomes of the pilot programs; and

e. Findings and recommendations.

B. Maryland Housing Innovation Advisory Council.

1. Establishment.

a. There is hereby established a Housing Innovation Advisory Council ("Advisory Council") to:

i. Identify sources of funding for the Incubator; ii. Advise and recommend priority topics of study to the Incubator; and

iii. Based on the Incubator's findings, recommendations, and other relevant information, formalize and advance recommendations for legislative, regulatory, and budgetary actions to address Maryland's undersupply of housing and resulting high housing costs.

b. The Advisory Council shall be administered by DHCD in consultation with the Office of the Governor.

2. Membership.

a. The Advisory Council shall consist of not fewer than twenty (20) and no more than thirty-two (32) members, as designated below:

i. The Secretary of Housing and Community Development or the Secretary's designee;

ii. The Secretary of the Environment or the Secretary's designee;

iii. The Secretary of Labor, or the Secretary's designee;

iv. The Secretary of Transportation or the Secretary's designee;

v. The Secretary of Planning or the Secretary's designee;

vi. The Special Secretary of the Governor's Office for Children, or the Secretary's designee;

vii. The Comptroller or the Comptroller's designee;

viii. Three (3) members of the Maryland House of Delegates, appointed by the Speaker of the House;

ix. Three (3) members of the Maryland Senate, appointed by the President of the Senate; and

x. Additional invitees, at the discretion of the Secretary of Housing and Community Development, to include:

1. One (1) representative from the Maryland Association of Counties;

2. One (1) representative from the Maryland Municipal League;

3. Up to six (6) elected local government officials;

4. Up to four (4) representatives from housing or construction trade associations;

5. Up to two (2) representatives from labor unions or other worker-serving organizations;

6. Up to two (2) representatives from housing advocacy organizations;

7. Up to two (2) representatives from affordable housing developers;

8. One (1) representative from a local planning department in the State;

9. One (1) representative from a local health department in the State;

10. One (1) representative from a financial institution in the State;

11. One (1) representative from an institution of higher education in the State; and

12. Up to two (2) representatives from community stakeholder organizations.

b. The Secretary of Housing and Community Development shall designate the Chair of the Advisory Council.

3. Administration.

a. The Advisory Council shall meet as often as its duties require, but no less than quarterly, at the time and place determined by the Chair.

b. The Chair shall convene and preside over the meetings of the Advisory Council.

c. The Advisory Council shall hold its first meeting within one hundred twenty (120) calendar days of the effective date of this Executive Order.

d. The Advisory Council may form ad hoc subcommittees to promote and advance specific legislative, regulatory, or budgetary reforms recommended by the Advisory Council.

e. The Advisory Council's ad hoc subcommittees may meet in between the full Advisory Council's official meetings.

f. The Advisory Council shall be staffed by DHCD.

g. Members of the Advisory Council may not receive any compensation for their services but may be reimbursed for reasonable expenses incurred by travel for the performance of their duties, in accordance with the Standard State Travel Regulations, and as provided in the State budget.

4. Duties. The Advisory Council shall:

a. On a quarterly basis, identify and recommend to the Incubator potential sources of funding and priority topics for study, research, evaluation, and pilot programs;

b. Based on the findings and recommendations of the Incubator, develop formal recommendations for legislative, regulatory, and budgetary actions to implement and support the findings and recommendations of the Incubator;

c. Beginning on July 1, 2027, and biannually thereafter, report to the Governor and the General Assembly on the activities of the Advisory Council, including:

i. Recommended priority topics for study, research, evaluation, and pilot programs by the Incubator;

ii. The findings and recommendations of the Incubator; and

iii. Any formal recommendations for legislative, regulatory, or budgetary actions resulting from the findings and recommendations of the Incubator; and

d. Develop recommendations that may address regulatory reform, process improvement, administrative modernization, technological innovation, financing tools, workforce development strategies, and other actions intended to increase the supply of housing and improve housing outcomes in Maryland.

C. Governor's Initiative to Accelerate Factory-Built Housing Production.

1. Establishment.

a. There is hereby established the Governor's Initiative to Accelerate Factory-Built Housing Production ("Initiative"), to address housing affordability in Maryland by exploring and encouraging the adoption of innovative construction methods, financing tools, and technical assistance.

b. The Initiative shall be initiated and implemented by DHCD under the auspices of the Maryland Housing Innovation Incubator and in consultation with the Office of the Governor.

2. Factory-Built Housing Summit.

a. Within six (6) months of the effective date of this Executive Order, DHCD shall provide funding and technical assistance to support a Factory-Built Housing Summit ("Summit"), to identify barriers to the production, financing, permitting, approval, shipping, and deployment of factory-built and modular housing in Maryland and develop recommendations to increase the use of these housing technologies.

b. DHCD shall invite stakeholders from the housing, construction, manufacturing, finance, labor, and local government sectors to participate in the Summit.

c. Within sixty (60) days after the Summit, DHCD shall prepare and publish an Action Plan that recommends:

i. Administrative, regulatory, legislative, and programmatic actions to accelerate the production and adoption of factory-built and modular housing in Maryland: and

ii. Studies and pilot programs that should be undertaken by the Maryland Housing Innovation Incubator.

3. Technical Assistance and Support for Local Government.

a. DHCD, in coordination with the Maryland Department of Planning, shall establish a pilot technical assistance program to assist local governments seeking to modernize zoning, permitting, inspection, and development review processes related to factory-built and modular housing.

b. DHCD and the Maryland Department of Planning shall identify and disseminate best practices for local governments to streamline approval processes and remove barriers to factory-built and modular housing.

c. To the extent permitted by law and subject to available funding, DHCD shall evaluate the use of Community Development Block Grant funds and other available grant programs to support local government initiatives that facilitate the production and deployment of factory-built and modular housing.

.4. Modernization of Regulatory Standards.

a. DHCD, in coordination with the Maryland Department of Labor and other relevant State agencies, shall review existing regulations governing factory-built and modular housing and develop recommendations for amendments to the Code of Maryland Regulations to modernize and streamline standards, inspection procedures, certification requirements, and administrative processes, while maintaining public health, safety, and quality standards.

b. DHCD shall submit its recommendations regarding the regulatory framework to the Governor by March 1, 2027.

5. State Framework for Pre-Approved Plans.

a. DHCD, in consultation with the Maryland Department of Planning, shall develop a framework for the review and approval of standardized modular housing plans that may be utilized throughout Maryland.

b. The framework shall explore State-level pre-approval of modular housing designs and shall provide guidance to local jurisdictions regarding the recognition and use of approved plans.

c. To develop the framework, DHCD shall consult with local governments, building officials, modular manufacturers, architects, engineers, and housing providers.

6. Innovative Financing Strategies.

a. DHCD shall evaluate and report on barriers, gaps, pain points, and opportunities related to financing and capital stacks for projects involving factory-built or modular housing and identify innovative financing tools and programs that may support the adoption and scaling of factory-built and modular housing in Maryland.

b. The evaluation should consider financing mechanisms for manufacturers, developers, nonprofit housing providers, local governments, and homebuyers, as well as opportunities to leverage public-private partnerships and federal resources.

c. DHCD shall identify any legislative, regulatory, or administrative actions necessary to facilitate implementation of viable financing tools and submit its recommendations to the Governor and General Assembly by March 1, 2027.

7. Reporting. On or before July 1, 2028, DHCD shall submit to the Governor a report summarizing activities undertaken pursuant to this Executive Order including progress toward the objectives of the Initiative, the implementation of the Action Plan, and any additional recommendations to accelerate the production and adoption of factory-built and modular housing in Maryland.

D. State Modular Workforce Partnership.

1. Establishment.

a. DHCD, in coordination with the Maryland Department of Labor, shall establish a Modular Workforce Partnership ("Partnership") to strengthen and expand the workforce pipeline supporting factory-built and modular housing in Maryland.

b. The Partnership shall include representatives from State agencies, institutions of higher education, community colleges, trade associations, labor organizations, modular manufacturers, housing developers, workforce development organizations, and other stakeholders as determined appropriate by DHCD and the Department of Labor.

c. Within DHCD, the Partnership shall be initiated and implemented under the auspices of the Housing Innovation Incubator.

2. Responsibilities. The Partnership shall:

a. Evaluate current and projected workforce needs associated with factorybuilt and modular housing production and deployment in Maryland;

b. Study and make recommendations regarding workforce training, credentialing, apprenticeship opportunities, and curriculum development necessary to support the growth of the modular housing sector;

c. Identify opportunities to align existing workforce development programs with the needs of modular manufacturers, contractors, developers, and local governments;

d. Develop strategies to expand outreach and recruitment for existing training and other workforce development programs related to housing construction; and

e. Recommend strategies to recruit and retain workers in occupations supporting factory-built and modular housing.

3. Modular Workforce Academy Framework.

a. The Partnership shall develop a framework for the establishment of a Modular Workforce Academy to be administered through a participating Maryland institution of higher education including community colleges.

b. The framework shall address:

i. Curriculum design and industry-recognized credentials;

ii. Apprenticeship and internship opportunities;

iii. Partnerships with manufacturers, contractors, and housing providers;

iv. Workforce recruitment strategies; and

v. Opportunities for dual enrollment, continuing education, and incumbent worker training.

c. The framework shall identify potential funding sources, implementation strategies, and opportunities to leverage existing State workforce development resources.

4. Maryland Corps/Service Year Option Workforce Opportunities.

a. DHCD, in collaboration with the Maryland Department of Service & Civic Innovation, and in consultation with the Maryland Department of Labor and other relevant State agencies, shall identify opportunities to incorporate factory-built and modular housing workforce development into the Maryland Corps/Service Year Option Programs.

b. These efforts shall be coordinated with new and expanded high schoollevel registered apprenticeship programs and shall involve collaboration with manufacturers, educational institutions, nonprofit organizations, workforce development organizations, housing providers, labor unions, and other worker-serving organizations to create opportunities for participants to receive hands-on training and work experience in housing construction, manufacturing, rehabilitation, and related fields.

5. Modular Solutions for Vacant Property Redevelopment.

a. DHCD shall work with the Baltimore Vacants Reinvestment Council and other relevant entities to evaluate opportunities to incorporate factory-built and modular housing solutions into existing vacant-property revitalization initiatives.

b. Such efforts may include incentives, pilot programs, workforce development initiatives, and demonstration projects supporting:

i. Rehabilitation of vacant properties;

ii. Infill development;

iii. Scattered-site housing development; and

iv. Other neighborhood revitalization efforts.

c. Special consideration shall be given to projects that create workforce development opportunities for Maryland residents and support local hiring.

6. Baltimore Modular Training Facility and Demonstration Site.

a. DHCD shall collaborate with Baltimore City, educational institutions, industry partners, and other stakeholders to develop a plan to establish a modular construction training facility and demonstration site within Baltimore City.

b. The plan shall identify potential locations, partnership structures, funding opportunities, workforce development benefits, and opportunities to coordinate with housing construction innovation initiatives operating within the State.

c. DHCD shall report its findings and recommendations to the Governor, the General Assembly, and the Mayor and City Council of Baltimore.

7. Employer and Training Program Assistance.

a. DHCD, the Maryland Department of Labor, and Maryland Department of Planning shall identify opportunities to provide incentives, technical assistance, and other support to employers, educational institutions, apprenticeship programs, and workforce development providers seeking to expand or adapt training programs to support factory-built and modular housing occupations.

b. Such assistance may include support related to:

i. Manufacturing and construction skills;

ii. Digital design and production technologies;

iii. Supply chain and logistics management;

iv. Building inspection and code compliance;

v. Permitting and development review processes;

vi. Land use planning and development administration; and

vii. Other occupations necessary to support the factory-built and modular housing industry. 8. Reporting. On or before July 1, 2028, DHCD and the Maryland Department of Labor shall submit a joint report to the Governor summarizing actions taken pursuant to this Executive Order including the progress of the Partnership, development of the Modular Workforce Academy, and recommending any additional measures necessary to strengthen Maryland's factory-built and modular housing workforce pipeline.

E. General Provisions.

1. This Executive Order shall be implemented in a manner that is consistent with all applicable statutes and regulations. Nothing in this Executive Order shall operate

to contravene any State or federal law or to affect the State's receipt of federal funding.

2. If any provision of this Executive Order or its application to any person, entity, or circumstance is held invalid by any court of competent jurisdiction, all other provisions or applications of the Executive Order shall remain in effect to the extent possible without the invalid provision or application. To achieve this purpose, the provisions of this Executive Order are severable.

GIVEN Under My Hand and the Great Seal of the State of Maryland, in the City of Baltimore, this 1st Day of October 2026.

Wes Moore Governor

ATTEST:

Susan C. Lee Secretary of State