EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0101*
HOUSE BILL 101
N1, M5 3lr0404
(PRE–FILED)
By: Delegate Charkoudian
Requested: September 16, 2022
Introduced and read first time: January 11, 2023
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Common Elements – Clean Energy Equipment 2
FOR the purpose of authorizing certain governing bodies of a condominium to grant an 3
interest affecting the common elements of the condominium for the installation and 4
use of leased clean energy equipment; and generally relating to the common 5
elements of a condominium and leased clean energy equipment. 6
BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 11–125 9
Annotated Code of Maryland 10
(2015 Replacement Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Real Property 14
11–125. 15
(a) The existing physical boundaries of any unit or common element constructed 16
or reconstructed in substantial conformity with the condominium plat shall be conclusively 17
presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 18
of any building and regardless of minor variations between the physical boundaries as 19
described in the declaration or shown on the condominium plat and the existing physical 20
boundaries of any such unit or common element. This presumption applies only to 21
encroachments within the condominium. 22
(b) If any portion of any common element encroaches on any unit or if any portion 23
of a unit encroaches on any common element or any other unit, as a result of the duly 24 2 HOUSE BILL 101
authorized construction or repair of a building, a valid easement for the encroachment and 1
for the maintenance of the encroachment exists so long as the building stands. 2
(c) An easement for mutual support shall exist in the units and common 3
elements. 4
(d) The grant or other disposition of a condominium unit shall include and grant, 5
and be subject to, any easement arising under the provisions of this section without specific 6
or particular reference to the easement. 7
(e) (1) The council of unit owners or its authorized designee shall have an 8
irrevocable right and an easement to enter units to investigate damage or make repairs 9
when the investigation or repairs reasonably appear necessary for public safety or to 10
prevent damage to other portions of the condominium. 11
(2) Except in cases involving manifest danger to public safety or property, 12
the council of unit owners shall make a reasonable effort to give notice to the owner of any 13
unit to be entered for the purpose of investigation or repair. 14
(3) If damage is inflicted on the common elements or any unit through 15
which access is taken, the council of unit owners is liable for the prompt repair. 16
(4) An entry by the council of unit owners for the purposes specified in this 17
subsection may not be considered a trespass. 18
(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 19
SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 20
grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 21
affecting the common elements of the condominium if the grant is approved by the 22
affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 23
and with the express written consent of the mortgagees holding an interest in those units 24
as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 25
interest granted by the council of unit owners under this subsection shall state that the 26
grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 27
votes, and by the corresponding mortgagees. 28
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 29
SUBSECTION, THE board of directors may, by majority vote, grant easements, 30
rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 31
utility services or communication systems for the exclusive benefit of units within the 32
condominium regime. These actions by the board of directors are subject to the following 33
requirements: 34
(i) The action shall be taken at a meeting of the board held after at 35
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 36
HOUSE BILL 101 3
(ii) At the meeting, the board may not act until all unit owners and 1
mortgagees shall be afforded a reasonable opportunity to present their views on the 2
proposed easement, right–of–way, license, lease, or similar interest; AND 3
(iii) The easement, right–of–way, license, lease, or similar interest 4
shall contain the following provisions: 5
1. The service or system shall be installed or affixed to the 6
premises at no cost to the individual unit owners or the council of unit owners other than 7
charges normally paid for like services by residents of similar or comparable dwelling units 8
within the same area; 9
2. The unit owners and council of unit owners shall be 10
indemnified for any damage arising out of the installation of the service or system; and 11
3. The board of directors shall be provided the right to 12
approve of the design for installation of the service or system in order to insure that the 13
installation conforms to any conditions which are reasonable to protect the safety, 14
functioning, and appearance of the premises. 15
(3) By majority vote, the board of directors may grant to the State 16
perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 17
affecting the common elements of the condominium for bulkhead construction, dune 18
construction or restoration, beach replenishment, or periodic maintenance and replacement 19
construction, on Maryland’s ocean beaches, including rights in the State to restrict access 20
to dune areas. These actions by the board of directors are subject to the following 21
requirements: 22
(i) The action shall be taken at a meeting of the board held after at 23
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 24
and 25
(ii) At the meeting, the board may not act until all unit owners and 26
mortgagees shall be afforded a reasonable opportunity to present their views on the 27
proposed easement, right–of–way, license, lease, or similar interest. 28
(4) By majority vote, the board of directors may settle an eminent domain 29
proceeding or grant to the State or any county, municipality, or agency or instrumentality 30
thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 31
in excess of 1 year, or similar interests affecting the common elements of the condominium 32
for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 33
purposes. These actions by the board of directors are subject to the following requirements: 34
(i) The action shall be taken at a meeting of the board held after at 35
least 60–days’ notice to all unit owners and all first mortgagees listed with the 36
condominium; 37
4 HOUSE BILL 101
(ii) The notice shall include information provided by the 1
condemnation authority that describes the purpose and the extent of the property being 2
acquired for public use; and 3
(iii) At the meeting, the board may not act until all unit owners and 4
mortgagees in attendance have been afforded a reasonable opportunity to present their 5
views on the proposed easement, right–of–way, license, lease, or similar interest. 6
(5) (I) 1. IN THIS PARAGRAPH “CLEAN ENERGY EQUIPME NT” 7
MEANS EQUIPMENT THAT CONTRIBUTES TO : 8
A. THE PRODUCTION OF ENERGY FROM RENEWABLE OR 9
SUSTAINABLE SOURCES ; OR 10
B. THE IMPROVEMENT OF EFFICI ENCY IN THE USE OF 11
ENERGY. 12
2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 13
VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 14
ENERGY–EFFICIENT EQUIPMENT USED FOR HEATI NG, COOLING, OR LIGHTING. 15
(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 16
THE BOARD OF DIRECTORS , BY A MAJORITY VOTE , OR THE COUNCIL OF UNIT 17
OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 18
THE VOTES IN THE COUNCIL, MAY GRANT EASEMENTS , RIGHTS–OF–WAY, LICENSES, 19
LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 20
ELEMENTS OF THE COND OMINIUM FOR THE INSTALLATION AND USE OF LEASED 21
CLEAN ENERGY EQUIPME NT. 22
(III) THE BOARD OF DIRECTORS MAY GRANT AN INTEREST 23
UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 24
30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 25
(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 26
OVERRULE A VOTE TO GRANT AN INTEREST UNDER THIS PARAGRAPH . 27
[(5)] (6) The action of the board of directors granting any easement, 28
right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 29
subsection shall not be final until the following have occurred: 30
(i) Within 15 days after the vote by the board to grant an easement, 31
right–of–way, license, lease, or similar interest, a petition may be filed with the board of 32
directors signed by the unit owners having at least [15 percent] 15% of the votes calling 33
for a special meeting of unit owners to vote on the question of a disapproval of the action of 34
the board of directors granting such easement, right–of–way, license, lease, or similar 35 HOUSE BILL 101 5
interest. If no such petition is received within 15 days, the decision of the board shall be 1
final; 2
(ii) If a qualifying petition is filed, a special meeting shall be held no 3
less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 4
if a quorum is not present, the decision of the board of directors shall be final; 5
(iii) 1. If a special meeting is held and [50 percent] 50% of the 6
unit owners present and voting disapprove the grant, and the unit owners voting to 7
disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 8
then the grant shall be void; or 9
2. If the vote of the unit owners is not more than [33 percent] 10
33% of the total votes in the condominium, the decision of the board or council to make the 11
grant shall be final; 12
(iv) Mortgagees shall receive notice of and be entitled to attend and 13
speak at such special meeting; and 14
(v) Any easement, right–of–way, license, lease, or similar interest 15
granted by the board of directors under the provisions of this subsection shall state that 16
the grant was approved in accordance with the provisions of this subsection. 17
[(6)] (7) The provisions of this subsection are applicable to all 18
condominiums, regardless of the date they were established. 19
SECTION 2. AND BE IT FURTHER ENA CTED, That this Act shall take effect 20
October 1, 2023. 21