Maryland 2023 Regular Session

Maryland House Bill HB101 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0101
9	6
10	7		HOUSE BILL 101
11	8		N1, M5 3lr0404
12		-	(PRE–FILED) ~~CF SB 593~~
	9	+	(PRE–FILED)
13	10		By: Delegate Charkoudian
14	11		Requested: September 16, 2022
15	12		Introduced and read first time: January 11, 2023
16	13		Assigned to: Environment and Transportation
17		-	Committee Report: Favorable with amendments
18		-	House action: Adopted
19		-	Read second time: February 25, 2023
20	14
21		-	~~CHAPTER ______~~
	15	+	A BILL ENTITLED
22	16
23	17		AN ACT concerning 1
24	18
25	19		Condominiums – Common Elements – Clean Energy Equipment 2
26	20
27	21		FOR the purpose of authorizing certain governing bodies of a condominium to grant an 3
28		-	interest ~~certain interests~~ affecting the common elements of the condominium for the 4
29		-	~~installation and~~ use of leased clean energy equipment; and generally relating to the 5
30		-	~~common~~ elements of a condominium and leased clean energy equipment. 6
	22	+	interest affecting the common elements of the condominium for the installation and 4
	23	+	use of leased clean energy equipment; and generally relating to the common 5
	24	+	elements of a condominium and leased clean energy equipment. 6
31	25
32	26		BY repealing and reenacting, with amendments, 7
33	27		Article – Real Property 8
34	28		Section 11–125 9
35	29		Annotated Code of Maryland 10
36	30		(2015 Replacement Volume and 2022 Supplement) 11
37	31
38	32		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
39	33		That the Laws of Maryland read as follows: 13
40	34
41	35		Article – Real Property 14
42	36
43	37		11–125. 15
44	38
45	39		(a) The existing physical boundaries of any unit or common element constructed 16
46	40		or reconstructed in substantial conformity with the condominium plat shall be conclusively 17
47	41		presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 18
48		-	of any building and regardless of minor variations between the physical boundaries as 19 2 HOUSE BILL 101
	42	+	of any building and regardless of minor variations between the physical boundaries as 19
	43	+	described in the declaration or shown on the condominium plat and the existing physical 20
	44	+	boundaries of any such unit or common element. This presumption applies only to 21
	45	+	encroachments within the condominium. 22
	46	+
	47	+	(b) If any portion of any common element encroaches on any unit or if any portion 23
	48	+	of a unit encroaches on any common element or any other unit, as a result of the duly 24 2 HOUSE BILL 101
49	49
50	50
51		-	described in the declaration or shown on the condominium plat and the existing physical 1
52		-	boundaries of any such unit or common element. This presumption applies only to 2
53		-	encroachments within the condominium. 3
	51	+	authorized construction or repair of a building, a valid easement for the encroachment and 1
	52	+	for the maintenance of the encroachment exists so long as the building stands. 2
54	53
55		-	(b) If any portion of any common element encroaches on any unit or if any portion 4
56		-	of a unit encroaches on any common element or any other unit, as a result of the duly 5
57		-	authorized construction or repair of a building, a valid easement for the encroachment and 6
58		-	for the maintenance of the encroachment exists so long as the building stands. 7
	54	+	(c) An easement for mutual support shall exist in the units and common 3
	55	+	elements. 4
59	56
60		-	(c) An easement for mutual support shall exist in the units and common 8
61		-	elements. 9
	57	+	(d) The grant or other disposition of a condominium unit shall include and grant, 5
	58	+	and be subject to, any easement arising under the provisions of this section without specific 6
	59	+	or particular reference to the easement. 7
62	60
63		-	(d) The grant or other disposition of a condominium unit shall include and grant, 10
64		-	and be subject to, any easement arising under the provisions of this section without specific 11
65		-	or particular reference to the easement. 12
	61	+	(e) (1) The council of unit owners or its authorized designee shall have an 8
	62	+	irrevocable right and an easement to enter units to investigate damage or make repairs 9
	63	+	when the investigation or repairs reasonably appear necessary for public safety or to 10
	64	+	prevent damage to other portions of the condominium. 11
66	65
67		-	(e) (1) The council of unit owners or its authorized designee shall have an 13
68		-	irrevocable right and an easement to enter units to investigate damage or make repairs 14
69		-	when the investigation or repairs reasonably appear necessary for public safety or to 15
70		-	prevent damage to other portions of the condominium. 16
	66	+	(2) Except in cases involving manifest danger to public safety or property, 12
	67	+	the council of unit owners shall make a reasonable effort to give notice to the owner of any 13
	68	+	unit to be entered for the purpose of investigation or repair. 14
71	69
72		-	(2) Except in cases involving manifest danger to public safety or property, 17
73		-	the council of unit owners shall make a reasonable effort to give notice to the owner of any 18
74		-	unit to be entered for the purpose of investigation or repair. 19
	70	+	(3) If damage is inflicted on the common elements or any unit through 15
	71	+	which access is taken, the council of unit owners is liable for the prompt repair. 16
75	72
76		-	(3) ~~If damage is inflicted on~~ the ~~common elements or any~~ unit ~~through 20~~
77		-	~~which access is taken,~~ ~~the council of unit owners is liable for the prompt repair~~. 21
	73	+	(4) An entry by the council of unit owners for the purposes specified in this 17
	74	+	subsection may not be considered a trespass. 18
78	75
79		-	(4) An entry by the council of unit owners for the purposes specified in this 22
80		-	subsection may not be considered a trespass. 23
	76	+	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 19
	77	+	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 20
	78	+	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 21
	79	+	affecting the common elements of the condominium if the grant is approved by the 22
	80	+	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 23
	81	+	and with the express written consent of the mortgagees holding an interest in those units 24
	82	+	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 25
	83	+	interest granted by the council of unit owners under this subsection shall state that the 26
	84	+	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 27
	85	+	votes, and by the corresponding mortgagees. 28
81	86
82		-	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 24
83		-	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 25
84		-	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 26
85		-	affecting the common elements of the condominium if the grant is approved by the 27
86		-	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 28
87		-	and with the express written consent of the mortgagees holding an interest in those units 29
88		-	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 30
89		-	interest granted by the council of unit owners under this subsection shall state that the 31
90		-	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 32
91		-	votes, and by the corresponding mortgagees. 33
	87	+	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 29
	88	+	SUBSECTION, THE board of directors may, by majority vote, grant easements, 30
	89	+	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 31
	90	+	utility services or communication systems for the exclusive benefit of units within the 32
	91	+	condominium regime. These actions by the board of directors are subject to the following 33
	92	+	requirements: 34
92	93
93		-	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 34
94		-	SUBSECTION, THE board of directors may, by majority vote, grant e asements, 35
95		-	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 36
96		-	utility services or communication systems for the exclusive benefit of units within the 37 HOUSE BILL 101 3
	94	+	(i) The action shall be taken at a meeting of the board held after at 35
	95	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 36
	96	+	HOUSE BILL 101 3
97	97
98	98
99		-	condominium regime. These actions by the board of directors are subject to the following 1
100		-	requirements: 2
	99	+	(ii) At the meeting, the board may not act until all unit owners and 1
	100	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 2
	101	+	proposed easement, right–of–way, license, lease, or similar interest; AND 3
101	102
102		-	(i) The ~~action shall be taken at a meeting of the board held after at 3~~
103		-	~~least 30–days’ notice to all unit owners and mortgagees of record with~~ the ~~condominium; 4~~
	103	+	(iii) The easement, right–of–way, license, lease, or similar interest 4
	104	+	shall contain the following provisions: 5
104	105
105		-	(ii) At the meeting, the board may not act until all unit owners and 5
106		-	mortgagees shall be afforded a reasonable opportunity to present their views on the 6
107		-	proposed easement, right–of–way, license, lease, or similar interest; AND 7
	106	+	1. The service or system shall be installed or affixed to the 6
	107	+	premises at no cost to the individual unit owners or the council of unit owners other than 7
	108	+	charges normally paid for like services by residents of similar or comparable dwelling units 8
	109	+	within the same area; 9
108	110
109		-	~~(iii)~~ The ~~easement, right–~~of~~–way, license,~~ ~~lease, or similar interest 8~~
110		-	~~shall contain~~ the ~~following provisions:~~ 9
	111	+	2. The unit owners and council of unit owners shall be 10
	112	+	indemnified for any damage arising out of the installation of the service or system; and 11
111	113
112		-	1. The ~~service or system~~ shall be ~~installed or affixed~~ to ~~the 10~~
113		-	~~premises at no cost~~ to ~~the individual unit owners or~~ the ~~council of unit owners other than 11~~
114		-	~~charges normally paid for like services by residents of similar or comparable dwelling units 12~~
115		-	~~within~~ the ~~same area;~~ 13
	114	+	3. The board of directors shall be provided the right to 12
	115	+	approve of the design for installation of the service or system in order to insure that the 13
	116	+	installation conforms to any conditions which are reasonable to protect the safety, 14
	117	+	functioning, and appearance of the premises. 15
116	118
117		-	2. The unit owners and council of unit owners shall be 14
118		-	indemnified for any damage arising out of the installation of the service or system; and 15
	119	+	(3) By majority vote, the board of directors may grant to the State 16
	120	+	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 17
	121	+	affecting the common elements of the condominium for bulkhead construction, dune 18
	122	+	construction or restoration, beach replenishment, or periodic maintenance and replacement 19
	123	+	construction, on Maryland’s ocean beaches, including rights in the State to restrict access 20
	124	+	to dune areas. These actions by the board of directors are subject to the following 21
	125	+	requirements: 22
119	126
120		-	3. The board of directors shall be provided the right to 16
121		-	approve of the design for installation of the service or system in order to insure that the 17
122		-	installation conforms to any conditions which are reasonable to protect the safety, 18
123		-	functioning, and appearance of the premises. 19
	127	+	(i) The action shall be taken at a meeting of the board held after at 23
	128	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 24
	129	+	and 25
124	130
125		-	(3) By majority vote, the board of directors may grant to the State 20
126		-	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 21
127		-	affecting the common elements of the condominium for bulkhead construction, dune 22
128		-	construction or restoration, beach replenishment, or periodic maintenance and replacement 23
129		-	construction, on Maryland’s ocean beaches, including rights in the State to restrict access 24
130		-	to dune areas. These actions by the board of directors are subject to the following 25
131		-	requirements: 26
	131	+	(ii) At the meeting, the board may not act until all unit owners and 26
	132	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 27
	133	+	proposed easement, right–of–way, license, lease, or similar interest. 28
132	134
133		-	(i) The action shall be taken at a meeting of the board held after at 27
134		-	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 28
135		-	and 29
	135	+	(4) By majority vote, the board of directors may settle an eminent domain 29
	136	+	proceeding or grant to the State or any county, municipality, or agency or instrumentality 30
	137	+	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 31
	138	+	in excess of 1 year, or similar interests affecting the common elements of the condominium 32
	139	+	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 33
	140	+	purposes. These actions by the board of directors are subject to the following requirements: 34
136	141
137		-	(ii) At the meeting, the board may not act until all unit owners and 30
138		-	mortgagees shall be afforded a reasonable opportunity to present their views on the 31
139		-	proposed easement, right–of–way, license, lease, or similar interest. 32
140		-
141		-	(4) By majority vote, the board of directors may settle an eminent domain 33
142		-	proceeding or grant to the State or any county, municipality, or agency or instrumentality 34
143		-	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 35
144		-	in excess of 1 year, or similar interests affecting the common elements of the condominium 36 4 HOUSE BILL 101
	142	+	(i) The action shall be taken at a meeting of the board held after at 35
	143	+	least 60–days’ notice to all unit owners and all first mortgagees listed with the 36
	144	+	condominium; 37
	145	+	4 HOUSE BILL 101
145	146
146	147
147		-	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 1
148		-	purposes. These actions by the board of directors are subject to the following requirements: 2
	148	+	(ii) The notice shall include information provided by the 1
	149	+	condemnation authority that describes the purpose and the extent of the property being 2
	150	+	acquired for public use; and 3
149	151
150		-	(i) The ~~action shall be taken at a~~ meeting of the board ~~held after at 3~~
151		-	~~least 60–days’ notice~~ to ~~all unit owners and all first mortgagees listed with the 4~~
152		-	~~condominium; 5~~
	152	+	(iii) At the meeting, the board may not act until all unit owners and 4
	153	+	mortgagees in attendance have been afforded a reasonable opportunity to present their 5
	154	+	views on the proposed easement, right–of–way, license, lease, or similar interest. 6
153	155
154		-	(ii) The notice shall include information provided by the 6
155		-	condemnation authority that describes the purpose and the extent of the property being 7
156		-	acquired for public use; and 8
	156	+	(5) (I) 1. IN THIS PARAGRAPH “CLEAN ENERGY EQUIPME NT” 7
	157	+	MEANS EQUIPMENT THAT CONTRIBUTES TO : 8
157	158
158		-	(iii) At the meeting, the board may not act until all unit owners and 9
159		-	mortgagees in attendance have been afforded a reasonable opportunity to present their 10
160		-	views on the proposed easement, right–of–way, license, lease, or similar interest. 11
	159	+	A. THE PRODUCTION OF ENERGY FROM RENEWABLE OR 9
	160	+	SUSTAINABLE SOURCES ; OR 10
161	161
162		-	~~(5) (I) 1.~~ IN ~~THIS PARAGRAPH “CLEAN~~ ~~ENERGY EQUIPME NT” 12~~
163		-	~~MEANS EQUIPMENT THAT CONTR IBUTES TO: 13~~
	162	+	B. THE IMPROVEMENT OF EFFICI ENCY IN THE USE OF 11
	163	+	ENERGY. 12
164	164
165		-	A. THE PRODUCTION OF ENE RGY FROM RENEWABLE O R 14
166		-	SUSTAINABLE SOURCES ; OR 15
	165	+	2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 13
	166	+	VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 14
	167	+	ENERGY–EFFICIENT EQUIPMENT USED FOR HEATI NG, COOLING, OR LIGHTING. 15
167	168
168		-	B. THE IMPROVEMENT OF EF FICIENCY IN THE USE OF 16
169		-	ENERGY. 17
	169	+	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 16
	170	+	THE BOARD OF DIRECTORS , BY A MAJORITY VOTE , OR THE COUNCIL OF UNIT 17
	171	+	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 18
	172	+	THE VOTES IN THE COUNCIL, MAY GRANT EASEMENTS , RIGHTS–OF–WAY, LICENSES, 19
	173	+	LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 20
	174	+	ELEMENTS OF THE COND OMINIUM FOR THE INSTALLATION AND USE OF LEASED 21
	175	+	CLEAN ENERGY EQUIPME NT. 22
170	176
171		-	2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 18
172		-	VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 19
173		-	ENERGY–EFFICIENT EQUIPMENT USED FOR HEATING , COOLING, OR LIGHTING 20
174		-	ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT, AND 21
175		-	ENERGY STORAGE SYSTE MS. 22
	177	+	(III) THE BOARD OF DIRECTORS MAY GRANT AN INTEREST 23
	178	+	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 24
	179	+	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 25
176	180
177		-	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 23
178		-	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 24
179		-	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 25
180		-	THE VOTES IN THE COU NCIL, MAY GRANT EASEMENTS, RIGHTS–OF–WAY, LICENSES, 26
181		-	LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 27
182		-	ELEMENTS OF THE COND OMINIUM FOR THE INST ALLATION AND USE OF LEASED 28
183		-	CLEAN ENERGY EQUIPME NT. 29
	181	+	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 26
	182	+	OVERRULE A VOTE TO GRANT AN INTEREST UNDER THIS PARAGRAPH . 27
184	183
185		-	(~~III~~) THE BOARD OF ~~DIRECTOR S MAY GRANT AN INTER EST 30~~
186		-	UNDER THIS ~~PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AF TER AT LEAST 31~~
187		-	30~~–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 32~~
	184	+	[(5)] (6) The action of the board of directors granting any easement, 28
	185	+	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 29
	186	+	subsection shall not be final until the following have occurred: 30
188	187
189		-	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 33
190		-	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 34
191		-	HOUSE BILL 101 5
	188	+	(i) Within 15 days after the vote by the board to grant an easement, 31
	189	+	right–of–way, license, lease, or similar interest, a petition may be filed with the board of 32
	190	+	directors signed by the unit owners having at least [15 percent] 15% of the votes calling 33
	191	+	for a special meeting of unit owners to vote on the question of a disapproval of the action of 34
	192	+	the board of directors granting such easement, right–of–way, license, lease, or similar 35 HOUSE BILL 101 5
192	193
193	194
194		-	[(5)] (6) The action of the board of directors granting any easement, 1
195		-	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 2
196		-	subsection shall not be final until the following have occurred: 3
	195	+	interest. If no such petition is received within 15 days, the decision of the board shall be 1
	196	+	final; 2
197	197
198		-	(i) Within 15 days after the vote by the board to grant an easement, 4
199		-	right–of–way, license, lease, or similar interest, a petition may be filed with the board of 5
200		-	directors signed by the unit owners having at least [15 percent] 15% of the votes calling 6
201		-	for a special meeting of unit owners to vote on the question of a disapproval of the action of 7
202		-	the board of directors granting such easement, right–of–way, license, lease, or similar 8
203		-	interest. If no such petition is received within 15 days, the decision of the board shall be 9
204		-	final; 10
	198	+	(ii) If a qualifying petition is filed, a special meeting shall be held no 3
	199	+	less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 4
	200	+	if a quorum is not present, the decision of the board of directors shall be final; 5
205	201
206		-	(ii) If a qualifying petition is filed, a special meeting shall be held no 11
207		-	less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 12
208		-	if a quorum is not present, the decision of the board of directors shall be final; 13
	202	+	(iii) 1. If a special meeting is held and [50 percent] 50% of the 6
	203	+	unit owners present and voting disapprove the grant, and the unit owners voting to 7
	204	+	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 8
	205	+	then the grant shall be void; or 9
209	206
210		-	(iii) 1. If a special meeting is held and [50 percent] 50% of the 14
211		-	unit owners present and voting disapprove the grant, and the unit owners voting to 15
212		-	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 16
213		-	then the grant shall be void; or 17
	207	+	2. If the vote of the unit owners is not more than [33 percent] 10
	208	+	33% of the total votes in the condominium, the decision of the board or council to make the 11
	209	+	grant shall be final; 12
214	210
215		-	2. If the vote of the unit owners is not more than [33 percent] 18
216		-	33% of the total votes in the condominium, the decision of the board or council to make the 19
217		-	grant shall be final; 20
	211	+	(iv) Mortgagees shall receive notice of and be entitled to attend and 13
	212	+	speak at such special meeting; and 14
218	213
219		-	(iv) Mortgagees shall receive notice of and be entitled to attend and 21
220		-	speak at such special meeting; and 22
	214	+	(v) Any easement, right–of–way, license, lease, or similar interest 15
	215	+	granted by the board of directors under the provisions of this subsection shall state that 16
	216	+	the grant was approved in accordance with the provisions of this subsection. 17
221	217
222		-	(v) Any easement, right–of–way, license, lease, or similar interest 23
223		-	granted by the board of directors under the provisions of this subsection shall state that 24
224		-	the grant was approved in accordance with the provisions of this subsection. 25
	218	+	[(6)] (7) The provisions of this subsection are applicable to all 18
	219	+	condominiums, regardless of the date they were established. 19
225	220
226		-	[(6)] (7) The provisions of this subsection are applicable to all 26
227		-	condominiums, regardless of the date they were established. 27
228		-
229		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
230		-	October 1, 2023. 29
231		-
	221	+	SECTION 2. AND BE IT FURTHER ENA CTED, That this Act shall take effect 20
	222	+	October 1, 2023. 21