MD HB1188

Imposes a 50% excise tax on the fair market value when corporations, LLCs, partnerships, or REITs that manage pooled investor funds acquire single-family residences (1-4 units) in Maryland

Requires "hedge fund taxpayers" (entities with $50 million+ in net value or assets under management) to divest all Maryland single-family homes within 5 years, phasing down 20% annually from their holdings as of July 1, 2026

Allows smaller applicable taxpayers to retain up to 25 single-family residences after the 5-year phase-out period, while imposing a $10,000 annual penalty per property exceeding permitted limits

Establishes the Down Payment and Settlement Expense Loan Program Fund as a special nonlapsing fund to receive tax revenue and provide financing for eligible homebuyers' down payments and closing costs

Exempts 501(c)(3) nonprofits, home construction/rehabilitation organizations, properties acquired through foreclosure, owner-occupied residences, and homes built with federal or state funds