MD
Maryland House Bill HB182

Maryland 2023 Regular Session

Maryland House Bill HB182 Compare Versions

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1- WES MOORE, Governor Ch. 476
21
3-– 1 –
4-Chapter 476
5-(House Bill 182)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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+ *hb0182*
89
9-Real Property – Unlawfully Restrictive Covenants – Modification by Counties or
10-Municipalities
10+HOUSE BILL 182
11+N1, L3 3lr1166
12+ CF SB 335
13+By: Delegates Reznik and Lopez, Addison, Allen, Boyce, Foley, Healey, Holmes,
14+Lehman, Lopez, Love, T. Morgan, Nawrocki, Ruth, Stein, Stewart, Terrasa,
15+and Ziegler
16+Introduced and read first time: January 18, 2023
17+Assigned to: Environment and Transportation
18+Committee Report: Favorable with amendments
19+House action: Adopted
20+Read second time: February 25, 2023
1121
12-FOR the purpose of authorizing a county or municipality to execute and record a restrictive
13-covenant modification to an unlawfully restrictive covenant for a property within the
14-boundaries of the county or municipality subject to a certain notice requirement;
15-providing that persons with an ownership interest in property that is subject to an
16-unlawfully restrictive covenant may decline action by a county or municipality to
17-execute and record a restrictive covenant modification; and generally relating to
18-unlawfully restrictive covenants.
22+CHAPTER ______
1923
20-BY repealing and reenacting, with amendments,
21- Article – Real Property
22-Section 3–112
23- Annotated Code of Maryland
24- (2015 Replacement Volume and 2022 Supplement)
24+AN ACT concerning 1
2525
26- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
27-That the Laws of Maryland read as follows:
26+Real Property – Unlawfully Restrictive Covenants – Modification by Counties or 2
27+Municipalities 3
2828
29-Article – Real Property
29+FOR the purpose of authorizing a county or municipality to execute and record a restrictive 4
30+covenant modification to an unlawfully restrictive covenant for a property within the 5
31+boundaries of the county or municipality subject to a certain notice requirement; 6
32+providing that persons with an ownership interest in property that is subject to an 7
33+unlawfully restrictive covenant may decline action by a county or municipality to 8
34+execute and record a restrictive covenant modification; and generally relating to 9
35+unlawfully restrictive covenants. 10
3036
31-3–112.
37+BY repealing and reenacting, with amendments, 11
38+ Article – Real Property 12
39+Section 3–112 13
40+ Annotated Code of Maryland 14
41+ (2015 Replacement Volume and 2022 Supplement) 15
3242
33- (a) In this section, “unlawfully restrictive covenant” means any recorded covenant
34-or restriction that restricts ownership based on race, religious belief, or national origin.
43+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
44+That the Laws of Maryland read as follows: 17
3545
36- (b) This section does not apply to an unlawfully restrictive covenant that is part
37-of a declaration, uniform general scheme, or plan of development of a homeowners
38-association, as defined in § 11B–101 of this article.
46+Article – Real Property 18
3947
40- (c) (1) A person may execute and record a restrictive covenant modification to
41-an unlawfully restrictive covenant in accordance with this section if the person:
48+3–112. 19 2 HOUSE BILL 182
4249
43- [(1)] (I) Holds an ownership interest in property that the person believes
44-is subject to the unlawfully restrictive covenant; or
4550
46- [(2)] (II) Is a nonprofit entity that is required to enforce within a defined
47-residential neighborhood:
48- Ch. 476 2023 LAWS OF MARYLAND
4951
50-– 2 –
51- [(i)] 1. Covenants that limit architectural alterations,
52-renovations, landscaping elements, or other modifications to residential lots in the
53-neighborhood; and
52+ (a) In this section, “unlawfully restrictive covenant” means any recorded covenant 1
53+or restriction that restricts ownership based on race, religious belief, or national origin. 2
5454
55- [(ii)] 2. The unlawfully restrictive covenant.
55+ (b) This section does not apply to an unlawfully restrictive covenant that is part 3
56+of a declaration, uniform general scheme, or plan of development of a homeowners 4
57+association, as defined in § 11B–101 of this article. 5
5658
57- (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A
58-COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT
59-MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORD ANCE WITH
60-THIS SECTION IF:
59+ (c) (1) A person may execute and record a restrictive covenant modification to 6
60+an unlawfully restrictive covenant in accordance with this section if the person: 7
6161
62- 1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY
63-BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE
64-BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND
62+ [(1)] (I) Holds an ownership interest in property that the person believes 8
63+is subject to the unlawfully restrictive covenant; or 9
6564
66- 2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND
67-RECORDING THE RESTRI CTIVE COVENANT MODIF ICATION, THE COUNTY OR
68-MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH
69-(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO
70-EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL
71-PERSONS WITH AN OWNE RSHIP INTEREST IN THE PROPERTY .
65+ [(2)] (II) Is a nonprofit entity that is required to enforce within a defined 10
66+residential neighborhood: 11
7267
73- (II) A PERSON WITH AN OWNER SHIP INTEREST IN THE
74-PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION
75-EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE
76-COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DA TE OF NOTICE.
68+ [(i)] 1. Covenants that limit architectural alterations, 12
69+renovations, landscaping elements, or other modifications to residential lots in the 13
70+neighborhood; and 14
7771
78- (III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH
79-SHALL:
72+ [(ii)] 2. The unlawfully restrictive covenant. 15
8073
81- 1. BE SENT BY FIRST–CLASS MAIL; AND
74+ (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 16
75+COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT 17
76+MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORD ANCE WITH 18
77+THIS SECTION IF: 19
8278
83- 2. PROVIDE INFORMATION O N HOW A PERSON WITH AN
84-OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE
85-COVENANT MOD IFICATION EXECUTED A ND RECORDED BY THE COUNTY OR
86-MUNICIPALITY.
79+ 1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY 20
80+BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE 21
81+BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND 22
8782
88- (d) (1) A restrictive covenant modification shall:
83+ 2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND 23
84+RECORDING THE RESTRI CTIVE COVENANT MODIF ICATION, THE COUNTY OR 24
85+MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH 25
86+(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO 26
87+EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL 27
88+PERSONS WITH AN OWNE RSHIP INTEREST IN T HE PROPERTY . 28
8989
90- (i) Consist of a complete copy of the original instrument containing
91-the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant
92-stricken; and
93- WES MOORE, Governor Ch. 476
90+ (II) A PERSON WITH AN OWNER SHIP INTEREST IN THE 29
91+PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION 30
92+EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE 31
93+COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DATE OF NOTICE. 32
94+ HOUSE BILL 182 3
9495
95-– 3 –
96- (ii) Be accompanied by a complete restrictive covenant modification
97-intake sheet, on the form that the Administrative Office of the Courts provides.
9896
99- (2) The restrictive covenant modification intake sheet described in
100-paragraph (1)(ii) of this subsection shall:
97+ (III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH 1
98+SHALL: 2
10199
102- (i) 1. Be signed by the record owner of the property; or
100+ 1. BE SENT BY FIRST–CLASS MAIL; AND 3
103101
104- 2. In the case of a nonprofit entity, be accompanied by a
105-statement that a majority of the governing body of the nonprofit entity has agreed to the
106-restrictive covenant modification;
102+ 2. PROVIDE INFORMATION O N HOW A PERSON WITH AN 4
103+OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE 5
104+COVENANT MODIFICATIO N EXECUTED AND RECOR DED BY THE COUNTY OR 6
105+MUNICIPALITY. 7
107106
108- (ii) Reference the book and page number or other place where the
109-original instrument containing the unlawfully restrictive covenant is recorded; and
107+ (d) (1) A restrictive covenant modification shall: 8
110108
111- (iii) Include any other information that the Administrative Office of
112-the Courts considers necessary in carrying out the requirements of this section.
109+ (i) Consist of a complete copy of the original instrument containing 9
110+the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant 10
111+stricken; and 11
113112
114- (e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit
115-court shall submit the restrictive covenant modification together with a copy of the original
116-instrument referenced in the restrictive covenant modification to the county attorney.
113+ (ii) Be accompanied by a complete restrictive covenant modification 12
114+intake sheet, on the form that the Administrative Office of the Courts provides. 13
117115
118- (2) The county attorney shall:
116+ (2) The restrictive covenant modification intake sheet described in 14
117+paragraph (1)(ii) of this subsection shall: 15
119118
120- (i) Review the restrictive covenant modification and the copy of the
121-original instrument to determine:
119+ (i) 1. Be signed by the record owner of the property; or 16
122120
123- 1. Whether the original instrument contains an unlawfully
124-restrictive covenant; and
121+ 2. In the case of a nonprofit entity, be accompanied by a 17
122+statement that a majority of the governing body of the nonprofit entity has agreed to the 18
123+restrictive covenant modification; 19
125124
126- 2. Whether the restrictive covenant modification correctly
127-strikes through only the language of the unlawfully restrictive covenant; and
125+ (ii) Reference the book and page number or other place where the 20
126+original instrument containing the unlawfully restrictive covenant is recorded; and 21
128127
129- (ii) On completion of the review, return the restrictive covenant
130-modification and copy of the original to the clerk of the circuit court together with the
131-county attorney’s determination.
128+ (iii) Include any other information that the Administrative Office of 22
129+the Courts considers necessary in carrying out the requirements of this section. 23
132130
133- (3) The clerk of the circuit court may not record a restrictive covenant
134-modification unless the county attorney determines that the modification is appropriate in
135-accordance with paragraph (2) of this subsection.
131+ (e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit 24
132+court shall submit the restrictive covenant modification together with a copy of the original 25
133+instrument referenced in the restrictive covenant modification to the county attorney. 26
136134
137- (f) A restrictive covenant modification shall be indexed in the same manner as
138-the original instrument.
135+ (2) The county attorney shall: 27
139136
140- (g) (1) Subject to all covenants, conditions, and restrictions that were recorded
141-after the recording of the original instrument, the restrictions contained in the restrictive Ch. 476 2023 LAWS OF MARYLAND
137+ (i) Review the restrictive covenant modification and the copy of the 28
138+original instrument to determine: 29
142139
143-– 4 –
144-covenant modification, once recorded, are the only restrictions based on the original
145-instrument that apply to the property.
140+ 1. Whether the original instrument contains an unlawfully 30
141+restrictive covenant; and 31
142+ 4 HOUSE BILL 182
146143
147- (2) The effective date of the terms and conditions contained in the
148-restrictive covenant modification shall be the same as the effective date of the original
149-instrument.
150144
151- (h) If a person causes to be recorded a restrictive covenant modification that
152-contains modifications not authorized under this section:
145+ 2. Whether the restrictive covenant modification correctly 1
146+strikes through only the language of the unlawfully restrictive covenant; and 2
153147
154- (1) The clerk of the circuit court may not incur any liability for recording
155-the restrictive covenant modification;
148+ (ii) On completion of the review, return the restrictive covenant 3
149+modification and copy of the original to the clerk of the circuit court together with the 4
150+county attorney’s determination. 5
156151
157- (2) The county may not incur any liability as a result of a determination
158-rendered by the county attorney under subsection (e) of this section; and
152+ (3) The clerk of the circuit court may not record a restrictive covenant 6
153+modification unless the county attorney determines that the modification is appropriate in 7
154+accordance with paragraph (2) of this subsection. 8
159155
160- (3) Any liability that results from the unauthorized recordation shall be
161-the sole responsibility of the person that executed the restrictive covenant modification.
156+ (f) A restrictive covenant modification shall be indexed in the same manner as 9
157+the original instrument. 10
162158
163- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
164-October 1, 2023.
159+ (g) (1) Subject to all covenants, conditions, and restrictions that were recorded 11
160+after the recording of the original instrument, the restrictions contained in the restrictive 12
161+covenant modification, once recorded, are the only restrictions based on the original 13
162+instrument that apply to the property. 14
165163
166-Approved by the Governor, May 8, 2023.
164+ (2) The effective date of the terms and conditions contained in the 15
165+restrictive covenant modification shall be the same as the effective date of the original 16
166+instrument. 17
167+
168+ (h) If a person causes to be recorded a restrictive covenant modification that 18
169+contains modifications not authorized under this section: 19
170+
171+ (1) The clerk of the circuit court may not incur any liability for recording 20
172+the restrictive covenant modification; 21
173+
174+ (2) The county may not incur any liability as a result of a determination 22
175+rendered by the county attorney under subsection (e) of this section; and 23
176+
177+ (3) Any liability that results from the unauthorized recordation shall be 24
178+the sole responsibility of the person that executed the restrictive covenant modification. 25
179+
180+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
181+October 1, 2023. 27
182+