EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0029*
HOUSE BILL 29
N1 3lr0427
HB 1060/22 – ENT (PRE–FILED)
By: Delegate Holmes
Requested: September 20, 2022
Introduced and read first time: January 11, 2023
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Residential Owners in Common Ownership Communities Bill of Rights 2
FOR the purpose of establishing a bill of rights for unit owners of a condominium, members 3
of a cooperative housing corporation, and lot owners of a homeowners association; 4
and generally relating to residential owners in common ownership communities. 5
BY adding to 6
Article – Real Property 7
Section 1–105 8
Annotated Code of Maryland 9
(2015 Replacement Volume and 2022 Supplement) 10
Preamble 11
WHEREAS, The General Assembly authorized a Task Force on Common Ownership 12
Communities, or Task Force, under Chapter 469 of the Acts of 2005 and directed that Task 13
Force to study and prepare proposals for improving Maryland laws that relate to 14
communities that are governed as a common ownership community, including a 15
condominium, a cooperative housing corporation, or a homeowners association; and 16
WHEREAS, The Task Force concluded in 2006 that there was a marked increase in 17
interest nationwide in addressing issues between unit owners in a condominium, members 18
in a cooperative housing corporation, and lot owners in a homeowners association 19
(hereinafter, collectively, “residential owners”) and the governing bodies of such 20
communities, and that identifying and establishing a bill of rights for those residential 21
owners is an important objective; and 22
WHEREAS, The Uniform Law Commission recognized the need for a bill of rights 23
for residential owners and first approved a model bill of rights in 2008 for consideration by 24
the states; and 25 2 HOUSE BILL 29
WHEREAS, The Task Force completed its work in 2006, before the Uniform Law 1
Commission approved its first model bill of rights, and therefore the Task Force concluded 2
in its Final Report of December 31, 2006, that it would be prudent to wait on a final proposal 3
for a Maryland Bill of Rights until the model Uniform Law Commission Bill of Rights was 4
made available to the states; and 5
WHEREAS, The Task Force was informally reestablished during 2021 and diligently 6
drafted an updated bill of rights from the Uniform Law Commission, the Montgomery 7
County Commission on Common Ownership Communities, the Maryland Homeowners 8
Association, and other relevant sources; now, therefore, 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Real Property 12
1–105. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “COMMON OWNERSHIP COMM UNITY” MEANS: 16
(I) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 17
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 18
(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE; 19
OR 20
(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 21
THIS ARTICLE. 22
(3) “GOVERNING DOCUMENTS ” MEANS ANY BYLAWS , COVENANTS, 23
DECLARATIONS , OR RULES OF A COMMON OWNERSHIP COMMUNITY . 24
(4) “LOT” HAS THE MEANING INDI CATED IN § 11B–101 OF THIS 25
ARTICLE. 26
(5) “RESIDENTIAL OWNER ” MEANS: 27
(I) A MEMBER AS DEFINED IN § 5–6B–01 OF THE 28
CORPORATIONS AND ASSOCIATIONS ARTICLE; 29
HOUSE BILL 29 3
(II) A UNIT OWNER AS DEFINE D IN § 11–101 OF THIS ARTICLE; 1
OR 2
(III) A LOT OWNER. 3
(B) SUBJECT TO THE PROVIS IONS OF ALL APPLICAB LE LAWS GOVERNING 4
COMMON OWNERSHIP COM MUNITIES ESTABLISHED IN THE STATE, A RESIDENTIAL 5
OWNER IN A COMMON OW NERSHIP COMMUNITY HA S THE FOLLOWING RIGH TS: 6
(1) THE RIGHT: 7
(I) TO BE DESIGNATED AS A ME MBER OF A COMMON 8
OWNERSHIP COMMUNITY WHEN THE COMMUNITY M AKES THAT RESIDENTIA L 9
OWNER SUBJECT TO A L IEN AND TO A MANDATO RY ASSESSMENT ; AND 10
(II) TO PARTICIPATE IN MEETIN GS ON COMMUNITY ISSU ES 11
WITH OTHER MEMBERS ; 12
(2) THE RIGHT TO BE REPRE SENTED BY THE GOVERN ING BODY OF 13
THE COMMON OWNERSHIP COMMUNITY AND TO HAV E THE GOVERNING BODY 14
CONSIDER THE PRIORIT IES OF ALL RESIDENTI AL OWNERS WHEN APPROVING A 15
BUDGET AND MANAGING THE COMMUNITY ’S FACILITIES AND OPE N SPACE; 16
(3) THE RIGHT TO AN ANNUA L BUDGET FOR THE COM MON 17
OWNERSHIP COMMUNITY , TO BE DELIVERED TO T HE RESIDENTIAL OWNER WITH THE 18
RESIDENTIAL OWNER ’S ANNUAL NOTICE OF ASS ESSMENT FEES OWED TO THE 19
COMMON OWNERSHIP COM MUNITY, THAT PRIORITIZES SUP PORT FOR THE 20
FACILITIES AND SERVI CES AVAILABLE TO THE RESIDENTIAL OWNER IN THE 21
COMMON OWNERSHIP COM MUNITY; 22
(4) THE RIGHT TO USE ALL FACILITIES AND SERVI CES OF THE 23
COMMON OWNERSHIP COM MUNITY AT A REASONABLE COST TH AT DOES NOT EXCEED 24
HALF THE COST CHARGE D TO ELIGIBLE USERS WHO ARE NOT RESIDENT IAL OWNERS 25
IN THE COMMON OWNERS HIP COMMUNITY ; 26
(5) THE RIGHT TO BE A MEM BER OF THE CLASS OF SOLE OR PRIMARY 27
USERS OF THE COMMON OWNERSHIP COMMUNITY ’S FACILITIES AND SERVICES I F 28
THERE IS SCARCE AVAI LABLE CAPACITY OF TH ESE FACILITIES AND S ERVICES AND 29
TO BE PROVIDED WITH ADDITIONAL CAPACITY , TO THE EXTENT POSSIB LE, SO THAT 30
THE CLASS IS NOT DEN IED THE OPPORTUNITY TO USE THOSE FACILIT IES AND 31
SERVICES; 32
4 HOUSE BILL 29
(6) THE RIGHT TO FAIR TREATM ENT IN THE REPAYMENT OF ANY 1
DEBT INCURRED BY THE COMMON OWNERSHIP COM MUNITY FOR MAJOR CAP ITAL 2
PROJECTS OR OPERATIN G EXPENSES SO THAT P RESENT AND FUTURE RE SIDENTIAL 3
OWNERS HAVE A RELATI VELY EQUAL SHARE IN THE RESPONSIBILITY T O REPAY 4
SUCH DEBT; 5
(7) THE RIGHT TO VOTE : 6
(I) BY SECRET BALLOT TO E LECT THE MEMBERSHIP OF THE 7
GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY AND TO BE A 8
CANDIDATE IN FAIR EL ECTIONS ADMINISTERED BY NEUTRAL PARTIES , WITH 9
RESULTS THAT CAN BE VERIFIED BY AN AUDI T ON REQUEST; 10
(II) TO RECALL AN INCUMBEN T MEMBER OF THE GOVE RNING 11
BODY; 12
(III) ON CERTAIN FINANCIAL MATTERS, IF PERMITTED IN THE 13
GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP COMMUNITY ; AND 14
(IV) ON NEW CAPITAL PROJEC TS PROPOSED BY THE G OVERNING 15
BODY, IF PERMITTED IN THE GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP 16
COMMUNITY AND BY REF ERENDUM; 17
(8) THE RIGHT, WITH REGARD TO MEETI NGS AND ACTIVITIES O F THE 18
GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY OR A COMMI TTEE OF 19
THE GOVERNING BODY : 20
(I) TO RECEIVE REASONABLE ADVANCE NOTICE OF AN Y OPEN 21
AND CLOSED MEETING , INCLUDING ANY AGENDA FOR A MEETING AND AN Y 22
SUPPORTING INFORMATI ON; 23
(II) TO PARTICIPATE, EITHER IN PERSON OR THROUGH REMOTE 24
ACCESS, IN OPEN MEETINGS THA T ARE EASILY ACCESSI BLE TO THE RESIDENTIAL 25
OWNERS; AND 26
(III) TO A REASONABLE OPPOR TUNITY TO SPEAK DURI NG A 27
TIMELY PERIOD WHEN M ATTERS ARE DISCUSSED OR VOTED ON BY THE G OVERNING 28
BODY OR COMMITTEE ; 29
(9) THE RIGHT TO HAVE A C OMMON OWNERSHIP COMM UNITY 30
GOVERNING BODY AND C OMMUNITY MANAGER THAT : 31
(I) ARE PROPERLY TRAINED AND INDEMNIFIED ; 32 HOUSE BILL 29 5
(II) ARE STEWARDS OF THE C OMMUNITY’S COMMON 1
INTERESTS; 2
(III) ARE PROTECTIVE OF THE RIGHTS OF RESIDENTIA L OWNERS 3
IN THE COMMUNITY ; 4
(IV) PROVIDE RESIDENTIAL O WNERS DUE PROCESS AN D EQUAL 5
PROTECTION ; AND 6
(V) COMPLY AND FUNCTION I N ACCORDANCE WITH STATE LAW 7
AND THE GOVERNING DO CUMENTS; 8
(10) THE RIGHT TO RECEIVE TIMELY ACCESS TO DOC UMENTS OF THE 9
COMMON OWNERSHIP COM MUNITY, INCLUDING THE ABILIT Y TO INSPECT AND COP Y 10
SUCH DOCUMENTS ; 11
(11) THE RIGHT TO RECEIVE PROMPT AND NONDISCRI MINATORY 12
SERVICE FROM THE STA FF AND GOVERNING BOD Y OF THE COMMON OWNE RSHIP 13
COMMUNITY ; 14
(12) THE RIGHT TO INDIVIDU AL PRIVACY BY THE GO VERNANCE AND 15
MANAGEMENT OF THE CO MMON OWNERSHIP COMMU NITY; 16
(13) THE RIGHT TO FAIR TREATMENT IF CHARGED WITH A VIOLA TION 17
OF THE GOVERNING DOC UMENTS, INCLUDING THE OPPORT UNITY: 18
(I) TO BE NOTIFIED IN WRITIN G ABOUT THE NATURE O F THE 19
VIOLATION; 20
(II) TO PRESENT EVIDENCE AND CROSS–EXAMINE WITNESSES 21
AT A PROPER HEARING ; AND 22
(III) TO ABATE THE VIOLATION W ITHIN A REASONABLE A MOUNT 23
OF TIME; 24
(14) THE RIGHT: 25
(I) TO BE INFORMED BY THE GO VERNING BODY OF THE 26
COMMON OWNERSHIP COM MUNITY OF PROPOSED C HANGES TO EXISTING 27
GOVERNING DOCUMENTS OR POLICIES; AND 28
6 HOUSE BILL 29
(II) TO VOTE TO APPR OVE ANY CHANGES OF T HE TYPE 1
IDENTIFIED IN ITEM (I) OF THIS ITEM AND HAVE THOSE CHANG ES PROPERLY 2
ADOPTED AND PUBLISHE D; AND 3
(15) THE RIGHT TO HAVE THE CONSUMER PROTECTION DIVISION OF 4
THE MARYLAND OFFICE OF THE ATTORNEY GENERAL: 5
(I) REVIEW ALLEGED VIO LATIONS OF STATE LAWS THAT 6
GOVERN COMMON OWNERS HIP COMMUNITIES ; AND 7
(II) TAKE DIRECT ENFORCEME NT ACTIONS ON BEHALF OF A 8
RESIDENTIAL OWNER , INCLUDING BY ACTING TO RECEIVE AN ADJUDI CATION OF 9
THE MATTER BEFORE A COURT OR THE IMPOSIT ION OF PENALTIES BY THE 10
MARYLAND OFFICE OF THE ATTORNEY GENERAL. 11
(C) THE LISTING OF RIGHTS IN SUBSECTION (B) OF THIS SECTION MAY NOT 12
BE CONSTRUED TO DENY OR DETRACT FROM OTHE R RIGHTS THAT MAY BE RETAINED 13
BY RESIDENTIAL OWNER S IN A COMMON OWNERS HIP COMMUNITY . 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2023. 16