Maryland Senate Bill SB65

Maryland 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Cooperative Housing Corporations and Condominium Associations – Evidence of Insurance

Impact

The implementation of SB65 is expected to impact state laws concerning the governance of cooperative housing and condominiums. By formalizing insurance requirements, the bill aims to increase the security and financial responsibility of members, hence potentially reducing risks associated with property damages. This legislative measure will modify the existing statutes under the Corporations and Associations and Real Property Articles, making it a significant update for how cooperative housing and condominium associations manage their obligations and member responsibilities.

Summary

Senate Bill 65, titled 'Cooperative Housing Corporations and Condominium Associations – Evidence of Insurance', seeks to amend existing laws related to the responsibilities of members within cooperative housing corporations and condominium associations in Maryland. The bill allows for the governing documents of these entities to require members to maintain specific insurance policies on their units and necessitates that members provide evidence of such coverage to the governing body upon request. This addition aims to enhance accountability and ensure that members are financially protected in the event of property-related issues.

Contention

While the rationale behind SB65 focuses on safeguarding property interests and promoting member accountability, there may be concerns regarding the additional burden placed on members to obtain and provide proof of insurance. Critics could argue that this requirement complicates participation in such organizations, particularly for lower-income residents. Furthermore, the potential for differing standards of required insurance could lead to disparities among cooperative and condominium members, engendering discussion around equity and inclusivity in housing policies.