The remainder of this paper will present an overview, in question and answer format, of many of the key issues relating to the annexation of land in Maryland. This paper is not intended to provide an in-depth analysis of the law and procedural requirements of annexation, or to provide legal advice. Much of what is discussed in this paper is depicted on an excellent flow chart prepared by the Maryland Municipal League. A copy of that flow chart is attached.

Are there any restrictions as to what land may be annexed into a city or town?

Yes - there are certain basic requirements and limitations as to what types of land may be annexed. In order to be annexed, land (i) may not be located in another municipality, and (ii) must be “contiguous and adjoining” the existing municipal boundaries. Additionally, the annexation of the land must not result in an “enclave”, that is, an area of land in the unincorporated part of the county that is totally surrounded by the corporate limits of the existing municipality, by real property proposed to be located within the municipality, or by a combination of such properties.

A municipality may annex land owned by the State or a county, including State land that lies under a body of water, as long as the land is contiguous to and adjoining the existing municipal boundaries, or contiguous to other land that is being annexed to the municipality.

How does the annexation process begin?

The annexation process can begin in two ways. First, the municipal legislative body may initiate an annexation by introducing a resolution to annex certain land into the municipal corporate boundaries. The resolution must be introduced in the same manner as generally applies to legislative enactments. Before doing so, however, the legislative body must obtain the consent for the proposal from the owners of not less than 25% of the assessed value of the real property in the area to be annexed, and from 25% of the persons who reside in the area to be annexed and who are registered to vote in county elections. Alternatively, the annexation process may be initiated by the filing with the legislative body of a written petition requesting annexation signed by the owners of not less than 25% of the assessed value of the real property in the area to be annexed, and by 25% of the persons who reside in the area to be annexed and who are registered to vote in county elections.

If landowners and residents file a petition requesting annexation, must the municipality consider the request?

Yes, if the petition satisfies all requirements of the law. When a petition is submitted to the legislative body, the presiding officer must cause the signatures on the petition to be verified and must determine that the signatures represent the requisite percentage of residents and property owners. Once the petition has been verified as complying with the law, the legislative body must introduce a resolution to annex the land referred to in the petition.

Are there any things that the annexation resolution must include?

The resolution must describe by survey of courses and distances, and also by landmarks and other well-known terms, the exact area to be annexed. The resolution also must include complete and detailed provisions as to the conditions and circumstances applicable to the change in municipal boundaries and to the residents and property in the area to be annexed. Additionally, the resolution may contain only one subject, which must be described in its title. Finally, if the annexation is accomplished by an amendment to the municipal charter, the resolution must contain the complete text of the charter provision as it would read when amended or enacted.

After the annexation resolution is introduced, the local legislative body must conduct a public hearing on the resolution. Notice of the public hearing must be published in one or more newspapers of general circulation in the municipality and the area to be annexed. If the proposed annexation is for 25 acres of land or less, the notice must be published at least two times at not less than weekly intervals. However, if the proposed annexation involves more than 25 acres, the notice must be published at least four times at not less than weekly intervals. The published notice must (i) describe the annexation proposal and the proposed terms and conditions of the annexation, and (ii) advise the public of the date, time and location of the public hearing.

The public hearing may not take place until at least 15 days after the final publication of the hearing notice. The public hearing may be continued or rescheduled, in which event additional newspaper notification is required.

Is any other notice required?

Yes. Immediately after the first publication of notice of the public hearing, a copy of the public notice must be provided to the governing body of the county and any regional and state planning agencies (e.g., M-NCP&PC and Maryland Department of State Planning) having jurisdiction within the county. At least 30 days before the public hearing, these agencies also must be provided with a copy of the outline for extension of services and public facilities described below.

Are there any other key documents in the annexation process?

Yes - the outline for extension of services and public facilities and the annexation agreement. The municipal legislative body must prepare and make available for public review and discussion at the public hearing an outline detailing (i) the proposed land use or uses in the area to be annexed, (ii) available land that could be used for anticipated public facilities that may be needed to serve the area to be annexed, (iii) a schedule for extending municipal services to the area to be annexed, and (iv) anticipated means for financing the extension of services.

The annexation agreement is discussed below.

When may the local legislative body act on the annexation resolution?

The legislative body may act on the annexation resolution at any time after the public notice and hearing requirements have been satisfied. Individual municipalities may have other requirements for the consideration of, and action on, such resolutions. However, the municipal legislative body may not amend an annexation resolution in substance without undertaking the public notice and hearing procedures again. Because annexation is a discretionary act by the local legislative body, the legislative body is not required to act on the resolution unless required to do so by some provision of a local charter or ordinance.

Do persons who oppose an annexation have any recourse?

Yes. Maryland law provides that certain classes of persons may petition to referendum an annexation resolution that has been approved by the local legislative body. A written petition for referendum may be filed with the municipality’s chief executive and administrative officer, within 45 days after the resolution is adopted, by (i) at least 20% of the registered voters in the existing municipality, (ii) at least 20% of the registered voters in the area to be annexed, or (iii) the county governing body, by at least a 2/3rds majority vote.

Additionally, persons who oppose an annexation may file a proceeding in court to invalidate the annexation if there has been some flaw in complying with the requirements for annexation or the annexation process. However, a person usually cannot contest the wisdom of annexing a particular parcel of land since the annexation decision is a discretionary one.

What happens if a petition for referendum is filed?

Promptly after receiving one or more petitions for referendum, the chief executive and administrative officer must verify that the petition meets the requirements of the law. If at least one petition is determined to satisfy all legal requirements, the effectiveness of the annexation resolution is suspended pending the outcome of a referendum election.

When is a referendum election held?

The municipality determines when the referendum election is to be held, and must provide notice in the local newspaper of the date, time and place of the referendum election. The notice must be published at least two times at a minimum of weekly intervals. The election must be held not less than 15, nor more than 90, days after the publication of the notices.

How many elections must be held?

One election must be held if registered voters of the existing municipality file a referendum petition. A separate referendum election of voters in the area to be annexed must be held if a petition is filed by such registered voters or by the county governing body. If there are less than 20 persons living in the area to be annexed, then any person, including partnerships, corporations, etc., owning real property in the area to be annexed, shall be entitled to vote. Unless the annexation is approved by majority votes in each election (if more than one), counted separately, the annexation is void.

Where is the referendum election held?

An election must be held in the existing municipality if registered voters in the municipality filed the referendum petition. In other cases, an election must be held within the area to be annexed.

When does an annexation take effect?

Must the municipality register the new municipal boundaries with any other government agencies?

Yes. Promptly after the annexation resolution becomes effective, the chief executive and administrative officer of the municipality must file a copy of the annexation resolution with the new municipal boundaries with the municipal clerk, with the clerk of the circuit court for the county where the municipality is located, and, for municipalities lying within the regional district, with the Maryland-National Capital Park and Planning Commission. The Mayor or other chief executive officer of the municipality must send a copy of each annexation resolution to the State Department of Legislative Services within ten days after the resolution becomes effective.

When does land that is annexed into the city or town become zoned?

If the city or town has, and exercises, the power to zone land, land that is annexed into the municipality may be zoned as part of the annexation proceeding, or the land may be zoned in a separate proceeding at the same time or at a later date. In cases where the city or town does not exercise zoning authority, the land will retain the same zoning as existed before the annexation until the zoning is changed by the zoning authority.

Are there any restrictions on the zoning of annexed land?

Yes. For a period of five years after the land is annexed, the municipality may not place the annexed land in a zoning classification that permits uses of the land that are “substantially different” from the uses for the land allowed by the County’s (or regional planning agency’s) master plan for the County. However, the municipal zoning may provide for land uses different from the uses allowed by the County (or regional planning agency) master plan if the county governing body expressly approves of the change. Additionally, a municipality must comply with certain other procedural requirements contained in Article 66B of the Maryland Annotated Code before zoning land as part of an annexation. A separate paper entitled “Zoning Considerations in the Municipal Annexation of Land” that provides a detailed discussion of legal issues related to the zoning of annexed land is attached.

May a municipality obtain considerations from a landowner in exchange for annexing land?

Yes. A municipality may negotiate with a landowner or developer to establish the terms and conditions under which land will be annexed into the municipality.

What is an "annexation agreement"?

An annexation agreement is a legally binding contract between the municipality and other parties that establishes the obligations of the parties regarding the annexation. Typically the annexation agreement will spell out all of the conditions and contributions that the municipality has exacted in exchange for annexing the land. Maryland courts have held that such agreements are legally enforceable.

Generally, what should an annexation agreement address?

Annexation agreements typically address issues such as the proposed dedications of land for streets, parks, recreational facilities and other public works, on-site or off-site improvements to be provided by the land-owner or developer, construction and environmental protection restrictions, timetables for the extension and provision of public utilities and other services, payment of the expenses of annexation, monetary contributions to the municipality, and the temporary abatement of municipal taxes to be assessed against the property to be annexed. Additionally, annexation agreements may provide for specific patterns of development or subdivision, although the annexation agreement may not bind the municipality to grant any particular zoning for the land. However, in 2002 the Maryland Court of Appeals held that an annexation agreement may not limit or restrict the uses of annexed land in a manner different from what would be allowed by the zoning classification placed on the annexed land by the municipality.

Who should be parties to the annexation agreement?

The city or town, the owner(s) of the land, and any persons holding liens on the land should be parties to the annexation agreement. It is important that lienholders subordinate their interest in the property to the terms and effect of the annexation agreement so that the agreement will not be extinguished by a subsequent foreclosure sale.

When should the annexation agreement be negotiated?

Since the annexation agreement should specify the terms and conditions of the annexation, it should be negotiated in all material respects prior to the public hearing on the annexation. Although the annexation resolution must include the terms and conditions of the annexation, having a copy of the annexation agreement attached to the resolution and incorporated by reference can satisfy this requirement. The annexation agreement should be fully executed by all parties before the local legislative body acts on the annexation resolution. However, the annexation agreement should contain escape hatches for the land owner and the municipality in the event that the land is not annexed or the annexation is invalidated through referendum or by a court.

What should be done with the annexation agreement after it has been executed?

After the annexation agreement has been signed and notarized by all parties, the agreement should be recorded among the Land Records of the county in which the municipality is located. This will ensure that all successors in interest to the property have full knowledge of the terms, conditions and obligations of the agreement and any restrictions that have been placed on the use of the land.