EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0140*
HOUSE BILL 140
N1 2lr0597
HB 352/21 – ENT (PRE–FILED)
By: Delegate Holmes
Requested: September 29, 2021
Introduced and read first time: January 12, 2022
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Condominiums and Homeowners Associations – Governing 2
Bodies and Annual Meetings 3
FOR the purpose of increasing the number of meetings the board of directors or the 4
developer of a condominium or a homeowners association must convene each year 5
and requiring that unit owners or lot owners have an opportunity to comment; 6
requiring the developer of a condominium to appoint certain persons to the board of 7
directors for the council of unit owners and to establish a board of directors if no 8
board of directors has been established; requiring a declarant to appoint certain 9
persons to the governing body of a homeowners association and to establish a 10
governing body of the homeowners association if no governing body has been 11
established; requiring a developer or a declarant to deliver certain notices regarding 12
a certain bond; requiring a council of unit owners and a homeowners association to 13
maintain certain books and records; making certain provisions of law applicable to 14
the accounts of a condominium or a homeowners association; and generally relating 15
to the governing bodies of condominium councils of unit owners and homeowners 16
associations. 17
BY repealing and reenacting, with amendments, 18
Article – Real Property 19
Section 11–109(a) and (c), 11–116, 11B–106.1, 11B–111, 11B–111.6(d), and 20
11B–112(a) 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2021 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Real Property 25
Section 11–109(b), 11–114.1(d), 11–132, and 11B–101(a), (c), and (d) 26
Annotated Code of Maryland 27
(2015 Replacement Volume and 2021 Supplement) 28 2 HOUSE BILL 140
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Real Property 3
11–109. 4
(a) (1) The affairs of the condominium shall be governed by a council of unit 5
owners which, even if unincorporated, is constituted a legal entity for all purposes. 6
(2) The council of unit owners shall [be comprised of] COMPRISE all unit 7
owners. 8
(b) The bylaws may authorize or provide for the delegation of any power of the 9
council of unit owners to a board of directors, officers, managing agent, or other person for 10
the purpose of carrying out the responsibilities of the council of unit owners. 11
(c) (1) A meeting of the council of unit owners or board of directors may not be 12
held on less notice than required by this section. 13
(2) The council of unit owners shall maintain a current roster of names and 14
addresses of each unit owner to which notice of meetings of the board of directors shall be 15
sent at least annually. 16
(3) Each unit owner shall furnish the council of unit owners with his name 17
and current mailing address. A unit owner may not vote at meetings of the council of unit 18
owners until this information is furnished. 19
(4) A regular or special meeting of the council of unit owners may not be 20
held on less than 10 nor more than 90 days’: 21
(i) Written notice delivered or mailed to each unit owner at the 22
address shown on the roster on the date of the notice; or 23
(ii) Notice sent to each unit owner by electronic transmission, if the 24
requirements of § 11–139.1 of this title are met. 25
(5) Notice of special meetings of the board of directors shall be given: 26
(i) As provided in the bylaws; or 27
(ii) If the requirements of § 11–139.1 of this title are met, by 28
electronic transmission. 29
(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 30
body shall be open and held at a time and location as provided in the notice or bylaws. 31 HOUSE BILL 140 3
(7) (i) 1. This [paragraph] SUBPARAGRAPH does not apply to any 1
meeting of the governing body that occurs at any time before the meeting at which the unit 2
owners elect officers or a board of directors in accordance with paragraph [(16)] (18) of this 3
subsection. 4
[(ii)] 2. Subject to [subparagraph (iii) of this paragraph] 5
SUBSUBPARAGRAPH 3 OF THIS SUBPARAGRAPH and to reasonable rules adopted by the 6
governing body under § 11–111 of this title, a governing body shall provide a designated 7
period of time during [a] EACH meeting to allow unit owners an opportunity to comment 8
on any matter relating to the condominium. 9
[(iii)] 3. During a meeting at which the agenda is limited to specific 10
topics or at a special meeting, the unit owners’ comments may be limited to the topics listed 11
on the meeting agenda. 12
[(iv)] (II) The [governing body] BOARD OF DIRECTORS OR THE 13
DEVELOPER shall convene at least [one meeting] TWO MEETINGS each year at which 14
[the]: 15
1. THE agenda is open to any matter relating to the 16
condominium; AND 17
2. THE UNIT OWNERS HAVE AN OPPORTUNITY TO 18
PROVIDE COMMENT . 19
(8) (i) Unless the bylaws provide otherwise, a quorum is deemed 20
present throughout any meeting of the council of unit owners if persons entitled to cast 25 21
percent of the total number of votes appurtenant to all units are present in person or by 22
proxy. 23
(ii) If the number of persons present in person or by proxy at a 24
properly called meeting of the council of unit owners is insufficient to constitute a quorum, 25
an additional meeting of the council of unit owners may be called for the same purpose if: 26
1. The notice of the initial properly called meeting stated: 27
A. That the procedure authorized by this paragraph might be 28
invoked; and 29
B. The date, time, and place of the additional meeting; and 30
2. A majority of the unit owners present vote in person or by 31
proxy to call for the additional meeting. 32
4 HOUSE BILL 140
(iii) 1. An additional meeting called under subparagraph (ii) of 1
this paragraph shall occur not less than 15 days after the initial properly called meeting. 2
2. Not less than 10 days before the additional meeting, a 3
separate and distinct notice of the date, time, place, and purpose of the additional meeting 4
called under subparagraph (ii) of this paragraph shall be: 5
A. Delivered, mailed, or sent by electronic transmission if the 6
requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 7
on the roster maintained under paragraph (2) of this subsection; 8
B. Advertised in a newspaper published in the county where 9
the condominium is located; or 10
C. If the condominium has a website, posted on the homepage 11
of the website. 12
3. The notice shall contain the quorum and voting provisions 13
of subparagraph (iv) of this paragraph. 14
(iv) 1. At the additional meeting, the unit owners present in 15
person or by proxy constitute a quorum. 16
2. Unless the bylaws provide otherwise, a majority of the 17
unit owners present in person or by proxy: 18
A. May approve or authorize the proposed action at the 19
additional meeting; and 20
B. May take any other action that could have been taken at 21
the original meeting if a sufficient number of unit owners had been present. 22
(v) This paragraph may not be construed to affect the percentage of 23
votes required to amend the declaration or bylaws or to take any other action required to 24
be taken by a specified percentage of votes. 25
(9) At meetings of the council of unit owners each unit owner shall be 26
entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 27
but the proxy is effective only for a maximum period of 180 days following its issuance, 28
unless granted to a lessee or mortgagee. 29
(10) Any proxy may be revoked at any time at the pleasure of the unit owner 30
or unit owners executing the proxy. 31
(11) A proxy who is not appointed to vote as directed by a unit owner may 32
only be appointed for purposes of meeting quorums and to vote for matters of business 33 HOUSE BILL 140 5
before the council of unit owners, other than an election of officers and members of the 1
board of directors. 2
(12) Only a unit owner voting in person or by electronic transmission if the 3
requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 4
by a unit owner may vote for officers and members of the board of directors. 5
(13) Unless otherwise provided in the bylaws, a unit owner may nominate 6
himself or any other person to be an officer or member of the board of directors. A call for 7
nominations shall be sent to all unit owners not less than 45 days before notice of an election 8
is sent. Only nominations made at least 15 days before notice of an election shall be listed 9
on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 10
no indicated candidate preference. Nominations may be made from the floor at the meeting 11
at which the election to the board is held. 12
(14) Election materials prepared with funds of the council of unit owners 13
shall list candidates in alphabetical order and may not indicate a candidate preference. 14
(15) Unless otherwise provided in this title, and subject to provisions in the 15
bylaws requiring a different majority, decisions of the council of unit owners shall be made 16
on a majority of votes of the unit owners listed on the current roster present and voting. 17
(16) IF THERE IS A BOARD O F DIRECTORS FOR THE COUNCIL OF UNIT 18
OWNERS ALREADY ESTAB LISHED BY THE DEVELO PER, WITHIN 30 DAYS AFTER THE 19
DATE ON WHICH UNITS REPRESENTING 25% OF THE VOTES IN THE CONDOMINIUM 20
HAVE BEEN CONVEYED B Y THE DEVELOPER TO M EMBERS OF THE PUBLIC FOR 21
RESIDENTIAL PURPOSES , THE DEVELOPER SHALL APPOINT AT LEAST ONE MEMBER 22
TO THAT BOARD OF DIR ECTORS WHO IS: 23
(I) A UNIT OWNER; AND 24
(II) NOT OTHERWISE AFFILIATED WITH THE DEVELOPER . 25
(17) IF NO BOARD OF DIRECT ORS FOR THE COUNCIL OF UNIT OWNERS 26
HAS BEEN ESTABLISHED BY THE DEVELOPER WIT HIN 30 DAYS AFTER THE DATE ON 27
WHICH UNITS REPRESEN TING 25% OF THE VOTES IN THE CONDOMINIUM HAVE BEEN 28
CONVEYED BY THE DEVELOPER TO MEMBERS OF THE PUBLIC FOR RE SIDENTIAL 29
PURPOSES, THE DEVELOPER SHALL ESTABLISH A BOARD OF DIRECTORS FOR THE 30
COUNCIL OF UNIT OWNE RS AND SHALL APPOINT AT LEAST ONE MEMBER TO THAT 31
BOARD OF DIRECTORS W HO IS: 32
(I) A UNIT OWNER; AND 33
(II) NOT OTHERWISE AFFILIATED WITH THE DEVELOPER . 34
6 HOUSE BILL 140
[(16)] (18) (i) A meeting of the council of unit owners to elect a board of 1
directors for the council of unit owners, as provided in the condominium declaration or 2
bylaws, shall be held within: 3
1. 60 days from the date that units representing 50 percent 4
of the votes in the condominium have been conveyed by the developer to members of the 5
public for residential purposes; or 6
2. If a lesser percentage is specified in the declaration or 7
bylaws of the condominium, 60 days from the date the specified lesser percentage of units 8
in the condominium are sold to members of the public for residential purposes. 9
(ii) 1. Before the date of the meeting held under subparagraph 10
(i) of this paragraph, the developer shall deliver to each unit owner notice that the 11
requirements of subparagraph (i) of this paragraph have been met. 12
2. The notice shall include the date, time, and place of the 13
meeting to elect the board of directors for the council of unit owners. 14
(iii) If a replacement board member is elected, the term of each 15
member of the board of directors appointed by the developer shall end 10 days after the 16
meeting is held as specified in subparagraph (i) of this paragraph. 17
(IV) 1. WITHIN 15 DAYS AFTER THE DA TE OF THE MEETING 18
HELD UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH , THE DEVELOPER SHALL 19
DELIVER TO EACH MEMB ER OF THE BOARD OF DIRE CTORS FOR THE COUNCI L OF 20
UNIT OWNERS WHO IS A UNIT OWNER AND WHO I S NOT AFFILIATED WIT H THE 21
DEVELOPER NOTICE OF: 22
A. ANY BOND PROVIDED BY THE DE VELOPER TO A 23
GOVERNMENTAL UNIT IN CONNECTION WITH THE DEVELOPMENT ; AND 24
B. THE NAME, ADDRESS, AND PHONE NUMBER OF THE 25
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 26
2. AT LEAST 30 DAYS BEFORE A DEVELO PER REQUESTS 27
TO BE RELEASED FROM A BOND PROVIDED BY THE DEVE LOPER TO A 28
GOVERNMENTAL UNIT , THE DEVELOPER SHALL DELIVER TO EACH MEMB ER OF THE 29
BOARD OF DIRECTORS F OR THE COUNCIL OF UN IT OWNERS WHO IS A U NIT OWNER 30
AND WHO IS NOT AFFILIATED WITH THE DEVELOPER NOTICE OF: 31
A. THE INTENTION TO BE R ELEASED FROM THE BON D; 32
AND 33
HOUSE BILL 140 7
B. THE NAME, ADDRESS, AND PHONE NUMBER OF THE 1
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 2
[(iv)] (V) Within 30 days from the date of the meeting held under 3
subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 4
directors for the council of unit owners, as provided in the condominium declaration or 5
bylaws, at the developer’s expense: 6
1. The documents specified in § 11–132 of this title; 7
2. The condominium funds, including operating funds, 8
replacement reserves, investment accounts, and working capital; 9
3. The tangible property of the condominium; and 10
4. A roster of current unit owners, including mailing 11
addresses, telephone numbers, and unit numbers, if known. 12
[(v)] (VI) In Prince George’s County and Montgomery County, the 13
replacement reserves delivered under subparagraph [(iv)2] (V)2 of this paragraph shall be 14
equal to at least the reserve funding amount recommended in the reserve study completed 15
under § 11–109.4 of this title as of the date of the meeting. 16
[(vi)] (VII) 1. This subparagraph does not apply to a contract 17
entered into before October 1, 2009. 18
2. A. In this subparagraph, “contract” means an 19
agreement with a company or individual to handle financial matters, maintenance, or 20
services for the condominium. 21
B. “Contract” does not include an agreement relating to the 22
provision of utility services or communication systems. 23
3. Until all members of the board of directors of the 24
condominium are elected by the unit owners at a transitional meeting as specified in 25
subparagraph (i) of this paragraph, a contract entered into by the officers or board of 26
directors of the condominium may be terminated, at the discretion of the board of directors 27
and without liability for the termination, not later than 30 days after notice. 28
[(vii)] (VIII) If the developer fails to comply with the requirements of 29
this paragraph, an aggrieved unit owner may submit the dispute to the Division of 30
Consumer Protection of the Office of the Attorney General under § 11–130(c) of this title. 31
11–114.1. 32
8 HOUSE BILL 140
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 1
books and records kept and made available by the council of unit owners under § 11–116 of 2
this title. 3
11–116. 4
(a) The council of unit owners shall keep books and records BEGINNING ON THE 5
DATE THE COUNCIL OF UNIT OWNERS IS ESTAB LISHED, in accordance with good 6
accounting practices on a consistent basis. 7
(b) On the request of the unit owners of at least 5 percent of the units, the council 8
of unit owners shall cause an audit of the books and records to be made by an independent 9
certified public accountant, provided an audit shall be made not more than once in any 10
consecutive 12–month period. The cost of the audit shall be a common expense. 11
(c) (1) (i) 1. Except as provided in paragraph (3) of this subsection, all 12
books and records, including insurance policies, kept by the council of unit owners shall be 13
maintained in Maryland or within 50 miles of its borders and shall be available at some 14
place designated by the council of unit owners for examination or copying, or both, by any 15
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 16
attorneys, during normal business hours, and after reasonable notice. 17
2. ALL BOOKS AND RECORDS KEPT BY THE COUNCIL OF 18
UNIT OWNERS SHALL BE MAINTAINED SEPARATE AND APART FROM THE B OOKS AND 19
RECORDS OF THE DEVELOPER OR OF ANY OTHER PERSON . 20
(ii) If a unit owner requests in writing a copy of financial statements 21
of the condominium or the minutes of a meeting of the board of directors or other governing 22
body of the condominium to be delivered, the board of directors or other governing body of 23
the condominium shall compile and send the requested information by mail, electronic 24
transmission, or personal delivery: 25
1. Within 21 days after receipt of the written request, if the 26
financial statements or minutes were prepared within the 3 years immediately preceding 27
receipt of the request; or 28
2. Within 45 days after receipt of the written request, if the 29
financial statements or minutes were prepared more than 3 years before receipt of the 30
request. 31
(2) Books and records required to be made available under paragraph (1) 32
of this subsection shall first be made available to a unit owner not later than 15 business 33
days after a unit is conveyed from a developer and the unit owner requests to examine or 34
copy the books and records. 35
HOUSE BILL 140 9
(3) Books and records kept by or on behalf of a council of unit owners may 1
be withheld from public inspection, except for inspection by the person who is the subject 2
of the record or the person’s designee or guardian, to the extent that they concern: 3
(i) Personnel records, not including information on individual 4
salaries, wages, bonuses, and other compensation paid to employees; 5
(ii) An individual’s medical records; 6
(iii) An individual’s personal financial records, including assets, 7
income, liabilities, net worth, bank balances, financial history or activities, and 8
creditworthiness; 9
(iv) Records relating to business transactions that are currently in 10
negotiation; 11
(v) The written advice of legal counsel; or 12
(vi) Minutes of a closed meeting of the board of directors or other 13
governing body of the council of unit owners, unless a majority of a quorum of the board of 14
directors or governing body that held the meeting approves unsealing the minutes or a 15
recording of the minutes for public inspection. 16
(d) (1) Except for a reasonable charge imposed on a person desiring to review 17
or copy the books and records or who requests delivery of information, the council of unit 18
owners may not impose any charges under this section. 19
(2) A charge imposed under paragraph (1) of this subsection for copying 20
books and records may not exceed the limits authorized under Title 7, Subtitle 2 of the 21
Courts Article. 22
11–132. 23
On transfer of control by the developer to the council of unit owners, the developer 24
shall turn over documents including: 25
(1) Copies of the condominium’s filed articles of incorporation, recorded 26
declaration, and all recorded covenants, bylaws, plats, and restrictions of the condominium; 27
(2) Subject to the restrictions of § 11–116 of this title, all books and records 28
of the condominium, including financial statements, minutes of any meeting of the 29
governing body, and completed business transactions; 30
(3) Any policies, rules, and regulations adopted by the governing body; 31
(4) The financial records of the condominium from the date of creation to 32
the date of transfer of control, including budget information regarding estimated and actual 33 10 HOUSE BILL 140
expenditures by the condominium and any report relating to the reserves required for major 1
repairs and replacement of the common elements of the condominium; 2
(5) A copy of all contracts to which the condominium is a party; 3
(6) The name, address, and telephone number of any contractor or 4
subcontractor employed by the condominium; 5
(7) Any insurance policies in effect and all prior insurance policies; 6
(8) Any permit or notice of code violation issued to the condominium by the 7
county, local, State, or federal government; 8
(9) Any warranty in effect; 9
(10) Drawings, architectural plans, or other suitable documents setting 10
forth the necessary information for location, maintenance, and repair of all condominium 11
facilities; and 12
(11) Individual owner files and records, including assessment account 13
records, correspondence, and notices of any violations. 14
11B–101. 15
(a) In this title the following words have the meanings indicated, unless the 16
context requires otherwise. 17
(c) “Declarant” means any person who subjects property to a declaration. 18
(d) (1) “Declaration” means an instrument, however denominated, recorded 19
among the land records of the county in which the property of the declarant is located, that 20
creates the authority for a homeowners association to impose on lots, or on the owners or 21
occupants of lots, or on another homeowners association, condominium, or cooperative 22
housing corporation any mandatory fee in connection with the provision of services or 23
otherwise for the benefit of some or all of the lots, the owners or occupants of lots, or the 24
common areas. 25
(2) “Declaration” includes any amendment or supplement to the 26
instruments described in paragraph (1) of this subsection. 27
(3) “Declaration” does not include a private right–of–way or similar 28
agreement unless it requires a mandatory fee payable annually or at more frequent 29
intervals. 30
11B–106.1. 31
HOUSE BILL 140 11
(A) IF THERE IS A BOARD O F DIRECTORS FOR THE HOMEOWNERS 1
ASSOCIATION ALREADY ESTABLISHED BY THE D ECLARANT, WITHIN 30 DAYS AFTER 2
THE DATE THAT AT LEAST 25% OF THE CURRENTLY SUB DIVIDED LOTS THAT MA Y BE 3
PART OF THE DEVELOPM ENT AFTER ALL PHASES ARE COMPL ETE HAVE BEEN 4
CONVEYED TO MEMBERS OF THE PUBLIC FOR RE SIDENTIAL PURPOSES , THE 5
DECLARANT SHALL APPO INT AT LEAST ONE MEM BER TO THAT BOARD OF 6
DIRECTORS WHO IS: 7
(1) A LOT OWNER; AND 8
(2) NOT OTHERWISE AFFILIA TED WITH THE DECLARA NT OR A 9
VENDOR OF LOTS IN TH E DEVELOPMENT . 10
(B) IF NO BOARD OF DIRECT ORS FOR THE HOMEOWNERS A SSOCIATION HAS 11
BEEN ESTABLISHED BY THE DECLARANT WHEN A T LEAST 25% OF THE CURRENTLY 12
SUBDIVIDED LOTS THAT MAY BE PART OF THE D EVELOPMENT AFTER ALL PHASES 13
ARE COMPLETE HA VE BEEN CONVEYED TO MEMBERS OF THE PUBLI C FOR 14
RESIDENTIAL PURPOSES , THE DECLARANT SHALL ESTABLISH A BOARD OF 15
DIRECTORS AND SHALL APPOINT AT LEAST ONE MEMBER TO THAT BOARD OF 16
DIRECTORS WHO IS : 17
(1) A LOT OWNER; AND 18
(2) NOT OTHERWISE AFFILIA TED WITH THE DECLARANT OR A 19
VENDOR OF LOTS IN TH E DEVELOPMENT . 20
[(a)] (C) A meeting of the members of the homeowners association to elect a 21
governing body of the homeowners association shall be held within: 22
(1) 60 days from the date that at least 75% of the total number of lots that 23
may be part of the development after all phases are complete are sold to members of the 24
public for residential purposes; or 25
(2) If a lesser percentage is specified in the governing documents of the 26
homeowners association, 60 days from the date the specified lesser percentage of the total 27
number of lots in the development after all phases are complete are sold to members of the 28
public for residential purposes. 29
[(b)] (D) (1) Before the date of the meeting held under subsection [(a)] (C) of 30
this section, the declarant shall deliver to each lot owner notice that the requirements of 31
subsection [(a)] (C) of this section have been met. 32
(2) The notice shall include the date, time, and place of the meeting to elect 33
the governing body of the homeowners association. 34
12 HOUSE BILL 140
[(c)] (E) The term of each member of the governing body of the homeowners 1
association appointed by the declarant shall end 10 days after the meeting under subsection 2
[(a)] (C) of this section is held, if a replacement board member is elected. 3
[(d)] (F) Within 30 days from the date of the meeting held under subsection [(a)] 4
(C) of this section, the declarant shall deliver the following items to the governing body at 5
the declarant’s expense: 6
(1) The deeds to the common areas; 7
(2) Copies of the homeowners association’s filed articles of incorporation, 8
declaration, and all recorded covenants, plats, restrictions, and any other records of the 9
primary development and of related developments; 10
(3) A copy of the bylaws and rules of the primary development and of other 11
related developments as filed in the depository of the county in which the development is 12
located; 13
(4) The minute books, including all minutes; 14
(5) Subject to the restrictions of § 11B–112 of this title, all books and 15
records of the homeowners association, including financial statements, minutes of any 16
meeting of the governing body, and completed business transactions; 17
(6) Any policies, rules, and regulations adopted by the governing body; 18
(7) The financial records of the homeowners association from the date of 19
creation to the date of transfer of control, including budget information regarding estimated 20
and actual expenditures by the homeowners association and any report relating to the 21
reserves required for major repairs and replacement of the common areas of the 22
homeowners association; 23
(8) A copy of all contracts to which the homeowners association is a party; 24
(9) The name, address, and telephone number of any contractor or 25
subcontractor employed by the homeowners association; 26
(10) Any insurance policies in effect; 27
(11) Any permit or notice of code violations issued to the homeowners 28
association by the county, local, State, or federal government; 29
(12) Any warranty in effect and all prior insurance policies; 30
(13) The homeowners association funds, including operating funds, 31
replacement reserves, investment accounts, and working capital; 32
HOUSE BILL 140 13
(14) The tangible property of the homeowners association; 1
(15) A roster of current lot owners, including their mailing addresses, 2
telephone numbers, and lot numbers, if known; 3
(16) Individual member files and records, including assessment account 4
records, correspondence, and notices of any violations; and 5
(17) Drawings, architectural plans, or other suitable documents setting 6
forth the necessary information for location, maintenance, and repairs of all common areas. 7
[(e)] (G) In Prince George’s County and Montgomery County, the replacement 8
reserves delivered under subsection [(d)(13)] (F)(13) of this section shall be equal to at 9
least the reserve funding amount recommended in the reserve study completed under § 10
11B–112.3 of this title as of the date of the meeting. 11
[(f)] (H) (1) This subsection does not apply to a contract entered into before 12
October 1, 2009. 13
(2) (i) In this subsection, “contract” means an agreement with a 14
company or individual to handle financial matters, maintenance, or services for the 15
homeowners association. 16
(ii) “Contract” does not include an agreement relating to the 17
provision of utility services or communication systems. 18
(3) Until all members of the governing body are elected by the lot owners 19
at a transitional meeting under subsection [(a)] (C) of this section, a contract entered into 20
by the governing body may be terminated, at the discretion of the governing body and 21
without liability for the termination, not later than 30 days after notice. 22
(I) (1) WITHIN 15 DAYS AFTER THE DATE OF THE MEETING HELD UNDER 23
SUBSECTION (C) OF THIS SECTION , THE DECLARANT SHALL DELIVER TO EACH 24
MEMBER OF THE BOARD OF DIRECTORS WHO IS A LOT OWNER AND WHO IS NOT 25
AFFILIATED WITH THE DECLARANT NOTICE OF: 26
(I) ANY BOND PROVIDED BY THE DECLARANT TO A 27
GOVERNMENTAL UNIT IN CONNECTION WITH THE DEVELOPMENT ; AND 28
(II) THE NAME, ADDRESS, AND PHONE NUMBER OF THE 29
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 30
(2) AT LEAST 30 DAYS BEFORE A DECLAR ANT REQUESTS TO BE 31
RELEASED FROM A BOND PROVIDED BY THE DECL ARANT TO A GOVERNMEN TAL 32
UNIT, THE DECLARANT SHALL DELIVER TO EACH MEMB ER OF THE BO ARD OF 33 14 HOUSE BILL 140
DIRECTORS WHO IS A L OT OWNER AND WHO IS NOT AFFILIATED WITH THE 1
DECLARANT NOTICE OF: 2
(I) THE INTENTION TO BE R ELEASED FROM THE BON D; AND 3
(II) THE NAME, ADDRESS, AND PHONE NUMBER OF THE 4
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 5
[(g)] (J) If the declarant fails to comply with the requirements of this section, an 6
aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 7
Office of the Attorney General under § 11B–115(c) of this title. 8
11B–111. 9
Except as provided in this title, and notwithstanding anything contained in any of 10
the documents of the homeowners association: 11
(1) Subject to the provisions of item (4) of this section, all meetings of the 12
homeowners association, including meetings of the board of directors or other governing 13
body of the homeowners association or a committee of the homeowners association, shall 14
be open to all members of the homeowners association or their agents; 15
(2) All members of the homeowners association shall be given reasonable 16
notice of all regularly scheduled open meetings of the homeowners association; 17
(3) (i) [This item does not apply to any meeting of a governing body that 18
occurs at any time before] AFTER the lot owners, other than the developer, have a majority 19
of votes in the homeowners association, as provided in the declaration[;]: 20
[(ii)] 1. Subject to item [(iii)] 2 of this item and to reasonable rules 21
adopted by [a] THE governing body, [a] THE governing body shall provide a designated 22
period of time during [a] EACH meeting to allow lot owners an opportunity to comment on 23
any matter relating to the homeowners association; AND 24
[(iii)] 2. During a meeting at which the agenda is limited to specific 25
topics or at a special meeting, the lot owners’ comments may be limited to the topics listed 26
on the meeting agenda; and 27
[(iv)] (II) The [governing body] BOARD OF DIRECTORS OR THE 28
DECLARANT shall convene at least [one meeting] TWO MEETINGS each year at which 29
[the]: 30
1. THE agenda is open to any matter relating to the 31
homeowners association; AND 32
HOUSE BILL 140 15
2. THE LOT OWNERS HAVE A N OPPORTUNITY TO 1
PROVIDE COMMENT ; 2
(4) A meeting of the board of directors or other governing body of the 3
homeowners association or a committee of the homeowners association may be held in 4
closed session only for the following purposes: 5
(i) Discussion of matters pertaining to employees and personnel; 6
(ii) Protection of the privacy or reputation of individuals in matters 7
not related to the homeowners association’s business; 8
(iii) Consultation with legal counsel on legal matters; 9
(iv) Consultation with staff personnel, consultants, attorneys, board 10
members, or other persons in connection with pending or potential litigation or other legal 11
matters; 12
(v) Investigative proceedings concerning possible or actual criminal 13
misconduct; 14
(vi) Consideration of the terms or conditions of a business 15
transaction in the negotiation stage if the disclosure could adversely affect the economic 16
interests of the homeowners association; 17
(vii) Compliance with a specific constitutional, statutory, or judicially 18
imposed requirement protecting particular proceedings or matters from public disclosure; 19
or 20
(viii) Discussion of individual owner assessment accounts; 21
(5) If a meeting is held in closed session under item (4) of this section: 22
(i) An action may not be taken and a matter may not be discussed if 23
it is not permitted by item (4) of this section; and 24
(ii) A statement of the time, place, and purpose of a closed meeting, 25
the record of the vote of each board or committee member by which the meeting was closed, 26
and the authority under this section for closing a meeting shall be included in the minutes 27
of the next meeting of the board of directors or the committee of the homeowners 28
association; and 29
(6) (i) If the number of lot owners present in person or by proxy at a 30
properly called meeting is insufficient to constitute a quorum, an additional meeting of the 31
lot owners may be called for the same purpose if: 32
1. The notice of the initial properly called meeting stated: 33 16 HOUSE BILL 140
A. That the procedure authorized by this item (6) might be 1
invoked; and 2
B. The date, time, and place of the additional meeting; and 3
2. A majority of the lot owners present vote in person or by 4
proxy to call for the additional meeting; 5
(ii) An additional meeting called under item (i) of this item shall 6
occur not less than 15 days after the initial properly called meeting; 7
(iii) 1. Not less than 10 days before the additional meeting, a 8
separate and distinct notice of the date, time, place, and purpose of the additional meeting 9
called under item (i) of this item shall be: 10
A. Delivered, mailed, or sent by electronic transmission, if 11
the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 12
on the roster maintained by the homeowners association; 13
B. Advertised in a newspaper published in the county where 14
the homeowners association is located; or 15
C. If the homeowners association has a website, posted on the 16
homepage of the website; and 17
2. The notice shall contain the quorum and voting provisions 18
of item (iv) of this item; 19
(iv) 1. At the additional meeting, the lot owners present in 20
person or by proxy constitute a quorum; and 21
2. Unless the bylaws provide otherwise, a majority of the lot 22
owners present in person or by proxy: 23
A. May approve or authorize the proposed action at the 24
additional meeting; and 25
B. May take any other action that could have been taken at 26
the original meeting if a sufficient number of lot owners had been present; and 27
(v) This item (6) may not be construed to affect the percentage of 28
votes required to amend the declaration or bylaws or to take any other action required to 29
be taken by a specified percentage of votes. 30
11B–111.6. 31
HOUSE BILL 140 17
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 1
books [and], records, AND ACCOUNTS kept and made available by or on behalf of the 2
homeowners association under § 11B–112 of this title. 3
11B–112. 4
(a) (1) (I) THE HOMEOWNERS ASSOCI ATION SHALL MAINTAIN BOOKS 5
AND RECORDS BEGINNING ON THE DAT E THE HOMEOWNERS ASS OCIATION IS 6
ESTABLISHED. 7
(II) ALL BOOKS AND RECORDS KEPT BY THE HOMEOWNE RS 8
ASSOCIATION SHALL BE MAINTAINED SEPARATE AND APART FROM THE B OOKS AND 9
RECORDS OF THE DECLARANT OR OF ANY OTHER PERSON . 10
[(1)] (2) (i) Subject to the provisions of paragraph [(2)] (3) of this 11
subsection, all books and records kept by or on behalf of the homeowners association shall 12
be made available for examination or copying, or both, by a lot owner, a lot owner’s 13
mortgagee, or their respective duly authorized agents or attorneys, during normal business 14
hours, and after reasonable notice. 15
(ii) Books and records required to be made available under 16
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 17
15 business days after a lot is conveyed by the declarant and the lot owner requests to 18
examine or copy the books and records. 19
(iii) If a lot owner requests in writing a copy of financial statements 20
of the homeowners association or the minutes of a meeting of the governing body of the 21
homeowners association to be delivered, the governing body of the homeowners association 22
shall compile and send the requested information by mail, electronic transmission, or 23
personal delivery: 24
1. Within 21 days after receipt of the written request, if the 25
financial statements or minutes were prepared within the 3 years immediately preceding 26
receipt of the request; or 27
2. Within 45 days after receipt of the written request, if the 28
financial statements or minutes were prepared more than 3 years before receipt of the 29
request. 30
[(2)] (3) Books and records kept by or on behalf of a homeowners 31
association may be withheld from public inspection, except for inspection by the person who 32
is the subject of the record or the person’s designee or guardian, to the extent that they 33
concern: 34
(i) Personnel records, not including information on individual 35
salaries, wages, bonuses, and other compensation paid to employees; 36 18 HOUSE BILL 140
(ii) An individual’s medical records; 1
(iii) An individual’s personal financial records, including assets, 2
income, liabilities, net worth, bank balances, financial history or activities, and 3
creditworthiness; 4
(iv) Records relating to business transactions that are currently in 5
negotiation; 6
(v) The written advice of legal counsel; or 7
(vi) Minutes of a closed meeting of the governing body of the 8
homeowners association, unless a majority of a quorum of the governing body of the 9
homeowners association that held the meeting approves unsealing the minutes or a 10
recording of the minutes for public inspection. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2022. 13