EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0174* HOUSE BILL 174 N1, L2 2lr0494 HB 523/21 – JUD (PRE–FILED) By: Delegate Lehman Requested: September 16, 2021 Introduced and read first time: January 12, 2022 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Landlord and Tenant – Repossession for Failure to Pay Rent – Registration and 2 License Information 3 FOR the purpose of requiring a landlord, or a landlord’s duly authorized agent, at the time 4 of filing a certain complaint in an action for repossession for failure to pay rent to 5 submit certain original or electronic copies of documents in order to prove, by a 6 certain standard of evidence, that a property is in compliance with certain local 7 license requirements and certain lead–based paint abatement laws; specifying that 8 a certain provisional or temporary license is insufficient to satisfy certain filing 9 requirements; prohibiting a court from entering a judgment in favor of a landlord 10 who fails to prove that a property is in compliance with certain local license 11 requirements; and generally relating to actions for repossession for failure to pay 12 rent. 13 BY repealing and reenacting, without amendments, 14 Article – Real Property 15 Section 8–401(a) 16 Annotated Code of Maryland 17 (2015 Replacement Volume and 2021 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – Real Property 20 Section 8–401(b) and (e) 21 Annotated Code of Maryland 22 (2015 Replacement Volume and 2021 Supplement) 23 BY repealing and reenacting, with amendments, 24 The Public Local Laws of Baltimore City 25 Section 9–3 and 9–5 26 Article 4 – Public Local Laws of Maryland 27 2 HOUSE BILL 174 (1979 Edition and 1997 Supplement, and 2000 Supplement, as amended) 1 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 That the Laws of Maryland read as follows: 3 Article – Real Property 4 8–401. 5 (a) Whenever the tenant or tenants fail to pay the rent when due and payable, it 6 shall be lawful for the landlord to have again and repossess the premises in accordance 7 with this section. 8 (b) (1) Whenever any landlord shall desire to repossess any premises to which 9 the landlord is entitled under the provisions of subsection (a) of this section, the landlord 10 or the landlord’s duly qualified agent or attorney shall ensure that the landlord has 11 completed the procedures required under subsection (c) of this section. 12 (2) After completing the procedures required under subsection (c) of this 13 section, a landlord or the landlord’s duly qualified agent or attorney may file the landlord’s 14 written complaint under oath or affirmation, in the District Court of the county wherein 15 the property is situated: 16 (i) Describing in general terms the property sought to be 17 repossessed; 18 (ii) Setting forth the name of each tenant to whom the property is 19 rented or any assignee or subtenant; 20 (iii) Stating the amount of rent and any late fees due and unpaid, less 21 the amount of any utility bills, fees, or security deposits paid by a tenant under § 7–309 of 22 the Public Utilities Article; 23 (iv) Requesting to repossess the premises and, if requested by the 24 landlord, a judgment for the amount of rent due, costs, and any late fees, less the amount 25 of any utility bills, fees, or security deposits paid by a tenant under § 7–309 of the Public 26 Utilities Article; 27 (v) If applicable, stating that, to the best of the landlord’s knowledge, 28 the tenant is deceased, intestate, and without next of kin; and 29 (vi) If the property to be repossessed is an affected property as 30 defined in § 6–801 of the Environment Article, stating that the landlord has registered the 31 affected property as required under § 6–811 of the Environment Article and renewed the 32 registration as required under § 6–812 of the Environment Article and: 33 1. A. If the current tenant moved into the property on or 34 HOUSE BILL 174 3 after February 24, 1996, stating the inspection certificate number for the inspection 1 conducted for the current tenancy as required under § 6–815(c) of the Environment Article; 2 or 3 B. On or after February 24, 2006, stating the inspection 4 certificate number for the inspection conducted for the current tenancy as required under 5 § 6–815(c), § 6–817(b), or § 6–819(f) of the Environment Article; or 6 2. Stating that the owner is unable to provide an inspection 7 certificate number because: 8 A. The owner has requested that the tenant allow the owner 9 access to the property to perform the work required under Title 6, Subtitle 8 of the 10 Environment Article; 11 B. The owner has offered to relocate the tenant in order to 12 allow the owner to perform work if the work will disturb the paint on the interior surfaces 13 of the property and to pay the reasonable expenses the tenant would incur directly related 14 to the relocation; and 15 C. The tenant has refused to allow access to the owner or 16 refused to vacate the property in order for the owner to perform the required work. 17 (3) (I) AT THE TIME OF FILING A WRITTEN COMPLAINT UNDER 18 THIS SUBSECTION , THE LANDLORD OR THE LANDLORD’S DULY AUTHORIZED AG ENT 19 SHALL SUBMIT DOCUMEN TS TO THE DISTRICT COURT DEMONSTRATING T HAT THE 20 RENTAL PROPERTY IS : 21 1. LICENSED WITH THE COU NTY IN COMPLIANCE WI TH 22 ALL APPLICABLE RENTA L PROPERTY LICENSING REQUIREMENTS; AND 23 2. IN COMPLIANCE WITH AL L REGISTRATION 24 REQUIREMENTS UNDER TITLE 6, SUBTITLE 8, PART III OF THE ENVIRONMENT 25 ARTICLE. 26 (II) A PROVISIONAL OR TEMPO RARY LICENSE IS INSU FFICIENT 27 TO SATISFY THE REQUI REMENTS UNDER SUBPAR AGRAPH (I)1 OF THIS PARAGRAPH . 28 [(3)] (4) For the purpose of the court’s determination under subsection (e) 29 of this section the landlord shall also specify the amount of rent due for each rental period 30 under the lease, the day that the rent is due for each rental period, and any late fees for 31 overdue rent payments. 32 [(4)] (5) The District Court shall issue its summons, directed to any 33 constable or sheriff of the county entitled to serve process, and ordering the constable or 34 sheriff to notify the tenant, assignee, or subtenant by first–class mail: 35 4 HOUSE BILL 174 (i) To appear before the District Court at the trial to be held on the 1 fifth day after the filing of the complaint; and 2 (ii) To answer the landlord’s complaint to show cause why the 3 demand of the landlord should not be granted. 4 [(5)] (6) (i) The constable or sheriff shall proceed to serve the 5 summons upon the tenant, assignee, or subtenant or their known or authorized agent as 6 follows: 7 1. If personal service is requested and any of the persons 8 whom the sheriff shall serve is found on the property, the sheriff shall serve any such 9 persons; or 10 2. If personal service is requested and none of the persons 11 whom the sheriff is directed to serve shall be found on the property and, in all cases where 12 personal service is not requested, the constable or sheriff shall affix an attested copy of the 13 summons conspicuously upon the property. 14 (ii) The affixing of the summons upon the property after due 15 notification to the tenant, assignee, or subtenant by first–class mail shall conclusively be 16 presumed to be a sufficient service to all persons to support the entry of a default judgment 17 for possession of the premises, together with court costs, in favor of the landlord, but it shall 18 not be sufficient service to support a default judgment in favor of the landlord for the 19 amount of rent due. 20 [(6)] (7) Notwithstanding the provisions of paragraphs (1) through [(4)] 21 (6) of this subsection: 22 (i) In an action to repossess nonresidential property under this 23 section, service of process on a tenant: 24 1. Shall be directed to the sheriff of the appropriate county 25 or municipality; and 26 2. On plaintiff’s request, may be directed to any person 27 authorized under the Maryland Rules to serve process; and 28 (ii) In Wicomico County, in an action to repossess any premises 29 under this section, service of process on a tenant may be directed to any person authorized 30 under the Maryland Rules to serve process. 31 [(7)] (8) (i) Notwithstanding the provisions of paragraphs [(3)] (5) 32 through [(5)] (7) of this subsection, if the landlord certifies to the court in the written 33 complaint required under paragraph [(1)] (2) of this subsection that, to the best of the 34 HOUSE BILL 174 5 landlord’s knowledge, the tenant is deceased, intestate, and without next of kin, the District 1 Court shall issue its summons, directed to any constable or sheriff of the county entitled to 2 serve process, and ordering the constable or sheriff to notify the occupant of the premises 3 or the next of kin of the deceased tenant, if known, by personal service: 4 1. To appear before the District Court at the trial to be held 5 on the fifth day after the filing of the complaint; and 6 2. To answer the landlord’s complaint to show cause why the 7 demand of the landlord should not be granted. 8 (ii) 1. The constable or sheriff shall proceed to serve the 9 summons upon the occupant of the premises or the next of kin of the deceased tenant, if 10 known, as follows: 11 A. If any of the persons whom the sheriff is directed to serve 12 are found on the property or at another known address, the sheriff shall serve any such 13 persons; or 14 B. If none of the persons whom the sheriff is directed to serve 15 are found on the property or at another known address, the constable or sheriff shall affix 16 an attested copy of the summons conspicuously upon the property. 17 2. The affixing of the summons upon the property shall 18 conclusively be presumed to be a sufficient service to all persons to support the entry of a 19 default judgment for possession of the premises, together with court costs, in favor of the 20 landlord, but it shall not be sufficient service to support a default judgment in favor of the 21 landlord for the amount of rent due. 22 (e) (1) If, at the trial on the fifth day indicated in subsection (b) of this section, 23 the court is satisfied that the interests of justice will be better served by an adjournment to 24 enable either party to procure their necessary witnesses, the court may adjourn the trial 25 for a period not exceeding 1 day, except with the consent of all parties, the trial may be 26 adjourned for a longer period of time. 27 (2) (i) [The information required under subsection (b)(1)(vi) of this 28 section may not be an issue of fact in a trial under this section.] 29 1. DURING TRIAL, THE LANDLORD SHALL H AVE THE 30 BURDEN OF PROVING , BY A PREPONDERANCE O F THE EVIDENCE , THAT THE 31 REQUIREMENTS UNDER S UBSECTION (B)(3)(I)1 OF THIS SECTION HAVE BEEN MET. 32 2. IF THE LANDLORD FAILS TO PROVIDE PROOF UND ER 33 SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH , THE COURT MAY NOT EN TER A 34 JUDGMENT IN FAVOR OF THE LANDLORD . 35 6 HOUSE BILL 174 3. THE LANDLORD MAY PRES ENT AN ELECTRONIC CO PY 1 OF THE LICENSE TO SA TISFY THE BURDEN OF PROOF UNDER SUBSU BPARAGRAPH 1 2 OF THIS SUBPARAGRAPH . 3 (ii) If, when the trial occurs, it appears to the satisfaction of the 4 court, that the rent, or any part of the rent and late fees are actually due and unpaid, the 5 court shall determine the amount of rent and late fees due as of the date the complaint was 6 filed less the amount of any utility bills, fees, or security deposits paid by a tenant under § 7 7–309 of the Public Utilities Article, if the trial occurs within the time specified by 8 subsection [(b)(3)] (B)(5) of this section. 9 (iii) 1. If the trial does not occur within the time specified in 10 subsection [(b)(3)(i)] (B)(5)(I) of this section and the tenant has not become current since 11 the filing of the complaint, the court, if the complaint so requests, shall enter a judgment 12 in favor of the landlord for possession of the premises and determine the rent and late fees 13 due as of the trial date. 14 2. The determination of rent and late fees shall include the 15 following: 16 A. Rent claimed in the complaint; 17 B. Rent accruing after the date of the filing of the complaint; 18 C. Late fees accruing in or prior to the month in which the 19 complaint was filed; and 20 D. Credit for payments of rent and late fees and other fees, 21 utility bills, or security deposits paid by a tenant under § 7–309 of the Public Utilities 22 Article after the complaint was filed. 23 (iv) In the case of a residential tenancy, the court may also give 24 judgment in favor of the landlord for the amount of rent and late fees determined to be due 25 together with costs of the suit if the court finds that the residential tenant was personally 26 served with a summons. 27 (v) In the case of a nonresidential tenancy, if the court finds that 28 there was such service of process or submission to the jurisdiction of the court as would 29 support a judgment in contract or tort, the court may also give judgment in favor of the 30 landlord for: 31 1. The amount of rent and late fees determined to be due; 32 2. Costs of the suit; and 33 3. Reasonable attorney’s fees, if the lease agreement 34 authorizes the landlord to recover attorney’s fees. 35 HOUSE BILL 174 7 (vi) A nonresidential tenant who was not personally served with a 1 summons shall not be subject to personal jurisdiction of the court if that tenant asserts that 2 the appearance is for the purpose of defending an in rem action prior to the time that 3 evidence is taken by the court. 4 (3) The court, when entering the judgment, shall also order that possession 5 of the premises be given to the landlord, or the landlord’s agent or attorney, within 4 days 6 after the trial. 7 (4) The court may, upon presentation of a certificate signed by a physician 8 certifying that surrender of the premises within this 4–day period would endanger the 9 health or life of the tenant or any other occupant of the premises, extend the time for 10 surrender of the premises as justice may require but not more than 15 days after the trial. 11 (5) However, if the tenant, or someone for the tenant, at the trial, or 12 adjournment of the trial, tenders to the landlord the rent and late fees determined by the 13 court to be due and unpaid, together with the costs of the suit, the complaint against the 14 tenant shall be entered as being satisfied. 15 Article 4 – Baltimore City 16 9–3. 17 (A) Whenever any lessor shall desire to have again and repossess any premises to 18 which he is entitled under the provisions of the preceding section, he or his duly qualified 19 agent or attorney, shall make his written complaint under oath or affirmation, in the 20 District Court in Baltimore City, and describing therein in general terms the property 21 sought to be had again and repossessed as aforesaid, and also setting forth the name of the 22 tenant to whom the same is rented, or his assignee or under tenant or tenants, with the 23 amount of rent thereon due and unpaid; and praying by warrant to have again and 24 repossess the premises, together with judgment for the amount of rent due and costs; and 25 it shall thereupon be the duty of said District Court in Baltimore City forthwith to issue 26 summons directed to a Constable of said court, ordering him to notify said tenant, assignee 27 or under tenant forthwith to appear before the said District Court at trial to be held on the 28 fifth day after the filing of said complaint, except as hereinafter provided, to show cause 29 why the prayer of said lessor should not be granted as aforesaid, and the said Constable 30 shall forthwith proceed to serve said summons on or before the third day after the filing of 31 said complaint, upon said tenant, assignee or under tenant in said premises, or upon his or 32 their known or authorized agent, or said Constable shall affix an attested copy of said 33 summons conspicuously upon said premises, and such affixing of said summons shall, for 34 the purposes of this subheading of this article, be deemed and construed a sufficient service 35 upon all persons whomsoever. 36 (B) AT THE TIME OF FILING A WRITTEN COMPLAINT UNDER THIS SECTION , 37 THE LESSOR OR THE LE SSOR’S DULY AUTHORIZED AG ENT SHALL SUBMIT 38 DOCUMENTS TO THE DISTRICT COURT IN BALTIMORE CITY DEMONSTRATING TH AT 39 8 HOUSE BILL 174 THE RENTAL PROPERTY IS IN COMPLIANCE WITH THE REQUIREMENTS OF ARTICLE 1 13, § 5–4 OF THE BALTIMORE CITY CODE AND TITLE 6, SUBTITLE 8, PART III OF 2 THE ENVIRONMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND. A 3 PROVISIONAL OR TEMPO RARY LICENSE IS INSU FFICIENT TO SATISF Y THE 4 REQUIREMENTS OF ARTICLE 13, § 5–4 OF THE BALTIMORE CITY CODE. 5 9–5. 6 (a) (1) If, at the trial aforesaid, the judge shall be satisfied the interest of 7 justice will be better served by an adjournment, he may adjourn the trial for a period not 8 exceeding seven days, except by consent of the parties, and if at said trial or due 9 adjournment, as aforesaid, it shall appear to the satisfaction of the judge before whom said 10 complaint has been tried as aforesaid, that the rent or any part of the rent for said premises 11 is actually due and unpaid, then the said judge shall give judgment in favor of said lessor 12 for the amount of rent found due, with costs of suit, and shall order that said tenant and 13 all persons claiming or holding by or under said tenant shall yield and render up possession 14 of said premises unto said lessor, or unto his duly qualified agent or attorney within 4 days 15 thereafter; provided, however, that upon presentation of certificate signed by a practicing 16 physician certifying that surrender of said premises within said period of 4 days would 17 endanger the health or life of any occupant thereof, said judge may, at the trial or 18 subsequent thereto, extend the time for such surrender of the premises upon such terms 19 and for such period or periods as he shall deem necessary and just. If the interval between 20 the filing of the landlord’s complaint and the trial of the cause shall be more than three 21 days, any order or judgment of said court with respect to the payment of rent shall include 22 all rent due and unpaid up to and including the day of trial; and the proceedings amended 23 to set forth the basis of said judgment or order. 24 (2) DURING TRIAL, THE LANDLORD SHALL H AVE THE BURDEN OF 25 PROVING, BY A PREPONDERANCE O F THE EVIDENCE , THAT THE PROPERTY IS IN 26 COMPLIANCE WITH ARTICLE 13, § 5–4 OF THE BALTIMORE CITY CODE. THE LESSOR 27 MAY PRESENT AN ELECT RONIC COPY OF THE LI CENSE AS PROOF OF CO MPLIANCE 28 WITH ARTICLE 13, § 5–4 OF THE BALTIMORE CITY CODE. IF THE LESSOR FAILS T O 29 PROVIDE PROOF THAT T HE PROPERTY IS IN CO MPLIANCE WITH ARTICLE 13, § 5–4 30 OF THE BALTIMORE CITY CODE, A JUDGE MAY NOT ENTE R A JUDGMENT IN FAVO R 31 OF THE LESSOR. 32 (b) (1) In any action of summary ejectment for failure to pay rent where the 33 landlord is awarded a judgment giving him restitution of the leased premises, the tenant 34 has the right to redemption of the leased premises by tendering in cash, certified check or 35 money order to the landlord or his agent all past due rent and late fees, plus all court 36 awarded costs and fees, at any time before actual execution of the eviction order. 37 (2) The right of redemption is not available to a tenant if the landlord 38 alleges and shows that more than three judgments of restitution were issued against the 39 tenant in the 12 months preceding the filing of the landlord’s complaint. 40 HOUSE BILL 174 9 (3) Nothing in this section shall preclude a tenant in any summary 1 ejectment action from raising any defense available under the Public Local Laws of 2 Baltimore City. If a tenant prevails on any of these defenses, the judgment, whether or not 3 it includes a judgment of restitution against the tenant, shall not be considered a judgment 4 of restitution for purposes of paragraph (2) of this subsection. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6 January 1, 2023. 7